Leases:

The Company leases the majority of its retail store locations, two distribution sites, its Merchandise Innovation Center, transportation equipment and other equipment under various non-cancellable operating leases. The leases have varying terms and expire at various dates through 2033. Store leases typically have initial terms of between 10 and 15 years, with two to four optional renewal periods of five years each. Some leases require the payment of contingent rent that is based upon store sales above agreed-upon sales levels for the year. The sales levels vary for each store and are established in the lease agreements. Generally, most of the leases also require that the Company pays associated taxes, insurance and maintenance costs.

Total rent expense for fiscal 2016, 2015 and 2014 was approximately $293.0 million, $262.1 million and $239.3 million, respectively. Total contingent rent expense for fiscal 2016, 2015 and 2014 was insignificant.

Future minimum payments, by year and in the aggregate, under leases with initial or remaining terms of one year or more consist of the following (in thousands):



	Capital Leases			Operating Leases
2017	$	2,936		$	299,463
2018	2,936			293,081
2019	2,936			280,731
2020	2,936			262,418
2021	2,936			238,193
Thereafter	25,218			1,159,368
Total minimum lease payments	39,898			$	2,533,254
Amount representing interest	(12,685		)
Present value of minimum lease payments	27,213
Less: current portion	(1,294		)
Long-term capital lease obligations	$	25,919

Assets under capital leases were as follows (in thousands):



	2016			2015
Building and improvements, gross	$	29,324		$	18,831
Less: accumulated depreciation and amortization	(3,381		)	(1,656		)
Building and improvements, net	$	25,943		$	17,175