LEASES

We lease various facilities and certain equipment under capital and operating leases. We also sublease some of the above facilities. Future minimum rentals due under non-cancelable leases and annual future minimum rentals expected under subleases are as follows:



	September 30, 2014
	Operating Lease Payments		Capital Lease Payments		Sublease Revenue
	(in thousands)
2015	$	58,421	$	443	$	156
2016	49,553		—		58
2017	37,453		—		—
2018	26,222		—		—
2019	17,681		—		—
Thereafter	48,388		—		—
	$	237,718	$	443	$	214

Future minimum capital lease payments total $0.4 million which includes a nominal amount of interest. The present value of net minimum capital lease payments as of September 30, 2014 was $0.4 million.

After an initial lease term of generally three to 10 years, our lease agreements typically allow renewals in three to five-year increments. Our lease agreements generally include rent escalations throughout the initial lease term. Rent escalations are included in the above numbers. For financial reporting purposes, the aggregate rentals over the lease term, including lease renewal options that are reasonably assured, are expensed on a straight-line basis.



	Fiscal Year Ended September 30,
	2014			2013			2012
	(in thousands)
Gross rent expense from continuing operations	$	68,132		$	62,673		$	53,442
Sublease rent revenue from continuing operations	(263		)	(217		)	(181		)
Net rent expense from continuing operations	$	67,869		$	62,456		$	53,261

Prior to fiscal 2008, we completed several sale-leaseback transactions of previously owned facilities. Losses on sales were recognized immediately, and gains were deferred and are being amortized as a reduction of lease expense over the terms of the related leases. The remaining unamortized long-term portion of these deferred gains, amounting to $1.0 million and $1.4 million at September 30, 2014 and 2013, respectively, is included in “Deferred gains and other long-term liabilities” in our consolidated balance sheets. The short-term portion, included in “Accounts payable and other accrued expenses” in our consolidated balance sheets, was $0.4 million at September 30, 2014 and 2013. Future rentals on these sale-leasebacks are included in the above schedule of future minimum rentals. Terms of these leases are consistent with the terms on our other lease agreements.