Note 7 – Leases

We lease all of our retail locations and certain equipment under operating leases expiring at various dates through fiscal 2027. Various lease agreements require scheduled rent increases over the initial lease term. Rent expense for such leases is recognized on a straight-line basis over the initial lease term beginning the earlier of the start date of the lease or when we take possession of the property. The difference between rent based upon scheduled monthly payments and rent expense recognized on a straight-line basis is recorded as accrued rent. All incentives received from landlords are recorded as deferred income and amortized over the life of the lease on a straight-line basis as a reduction of rental expense.

Certain leases provide for contingent rents that are not measurable at inception. These contingent rents are primarily based on a percentage of sales that are in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable. Certain leases also contain escalation clauses for increases in operating costs and taxes.

We assigned four store operating leases to separate third parties during fiscal 2015. Based on the terms of the assignments, we are not liable to the landlords for any future obligations that should arise in connection with these locations. Prior to this, the last two assignments of operating leases covering former store locations, which we assigned to third parties in prior years, expired during fiscal 2013.

Rental expense for our operating leases consisted of:

(In thousands)	2015		2014		2013

Rentals for real property	$	64,244	$	62,727	$	58,140
Contingent rent		83		59		189
Equipment rentals		59		66		83
Total	$	64,386	$	62,852	$	58,412

Future minimum lease payments at January 30, 2016 were as follows:

(In thousands)	Operating Leases

2016	$	62,714
2017		64,739
2018		56,133
2019		51,273
2020		43,068
Thereafter to 2027		118,575
Total	$	396,502