Commitments

TJX is committed under long-term leases related to its continuing operations for the rental of real estate and fixtures and equipment. Most of TJX’s leases are store operating leases with initial ten year terms and options to extend for one or more five year periods in the U.S. and Canada; initial ten to fifteen year terms in Europe and initial seven to ten year terms in Australia, some of which have options to extend. Many of the Company’s leases contain escalation clauses and we have the right to terminate some of the leases before the expiration date under specified circumstances and some with specified payments. In addition, TJX is generally required to pay insurance, real estate taxes and other operating expenses including, in some cases, rentals based on a percentage of sales. These expenses in the aggregate were approximately one-third of the total minimum rent in fiscal 2019, fiscal 2018 and fiscal 2017 and are not included in the table below.

The following is a schedule of future minimum lease payments for continuing operations as of February 2, 2019:



In thousands	Operating Leases
Fiscal Year 2020	$	1,676,700
2021	1,603,378
2022	1,441,444
2023	1,253,420
2024	1,042,184
Later years	2,774,845
Total future minimum lease payments	$	9,791,971

Rental expense under operating leases for continuing operations amounted to $1.7 billion for fiscal 2019, $1.6 billion for fiscal 2018 and $1.4 billion for fiscal 2017. Rental expense includes contingent rent and is reported net of sublease income. Contingent rent paid was $22.8 million in fiscal 2019, $18.4 million in fiscal 2018 and $14.7 million in fiscal 2017. Sublease income was $1.2 million in fiscal 2019, $1.3 million in fiscal 2018 and $1.2 million in fiscal 2017.

As of February 2, 2019 we have a number of lease agreements for facilities and stores that resulted in TJX being considered the owner of the property for accounting purposes. The build-to-suit lease assets related to these properties are included in “land and buildings” and the related liabilities of $243.3 million are included as build-to-suit lease obligations in “other long-term liabilities.”

TJX had outstanding letters of credit totaling $41.9 million as of February 2, 2019 and $40.2 million as of February 3, 2018. Letters of credit are issued by TJX primarily for the purchase of inventory.