16. Leases

The Company leases most of its retail stores and certain distribution facilities under noncancellable operating and capital leases, most of which have initial lease terms ranging from 5 to 22 years. The Company also leases certain of its equipment and other assets under noncancellable operating leases with initial terms ranging from 3 to 10 years. In addition to minimum rental payments, certain store leases require additional payments based on sales volume, as well as reimbursements for taxes, maintenance and insurance. Most leases contain renewal options, certain of which involve rent increases. Total rental expense, net of sublease income of $4,509, $4,682 and $4,813, was $626,166, $628,511 and $634,539 in fiscal 2019, 2018 and 2017, respectively. These amounts include contingent rentals of $7,084, $8,339 and $10,229 in fiscal 2019, 2018 and 2017, respectively.

During fiscal 2019, 2018 and 2017, the Company did not enter into any sale-leaseback transactions whereby the Company sold owned operating stores to independent third parties and concurrent with the sale, entered into an agreement to lease the store back from the purchasers.

As a result of the Sale to WBA and the related Amended and Restated Asset Purchase Agreement, the Company has lease guarantee obligations related to 1,656 former stores. The majority of the lease guarantee obligations have a term of less than 10 years; however, 84 former stores have guarantees that exceed 10 years. The Company is only obligated to pay for the lease guarantees in the event that WBA fails to perform under the lease agreements, as WBA is the primary obligor. If WBA fails to perform under the lease agreements, the maximum lease guarantee obligations the Company would be liable for would be approximately $1,800,000 as of March 2, 2019. During fiscal 2019, WBA has performed under the lease agreements. The Company has assessed that it is highly unlikely that WBA will not perform under the leases as of March 2, 2019.

The net book values of assets under capital leases and sale‑leasebacks accounted for under the financing method at March 2, 2019 and March 3, 2018 are summarized as follows:


	2019		2018
Land	$	2,688	$	3,458
Buildings		83,624		86,012
Equipment		19,595		25,225
Accumulated depreciation		(77,892)		(78,637)
	$	28,015	$	36,058

Following is a summary of lease finance obligations at March 2, 2019 and March 3, 2018:


	2019		2018
Obligations under financing leases	$	40,176	$	51,446
Less current obligation		(16,112)		(20,671)
Long-term lease finance obligations	$	24,064	$	30,775

Following are the minimum lease payments for all properties under a lease agreement that will have to be made in each of the years indicated based on non‑cancelable leases in effect as of March 2, 2019:


	Lease
	Financing		Operating
Fiscal year	Obligations		Leases
2020	$	19,300	$	687,412
2021		4,811		610,874
2022		4,588		545,863
2023		4,383		490,864
2024		4,042		431,714
Later years		20,470		1,541,408
Total minimum lease payments		57,594	$	4,308,135
Amount representing interest		(17,418)
Present value of minimum lease payments	$	40,176