LEASES

The Company leases many service center and distribution center facilities, vehicles and equipment under non-cancelable lease agreements accounted for as operating leases. The minimum annual rental commitments under non-cancelable operating leases as of June 30, 2019 are as follows:



During Fiscal Years
2020	$	33,707
2021	23,407
2022	16,420
2023	10,653
2024	7,838
Thereafter	12,135
Total minimum lease payments	$	104,160

Rental expense incurred for operating leases, principally from leases for real property, vehicles and computer equipment was $45,000 in 2019, $41,000 in 2018 and $35,900 in 2017, and was classified within selling, distribution and administrative expense in the statements of consolidated income.

The Company maintains lease agreements for many of the operating facilities of businesses it acquires from previous owners. In many cases, the previous owners of the business acquired become employees of Applied and occupy management positions within those businesses. The payments under lease agreements of this nature totaled $2,400 in each of 2019, 2018, and 2017.