Operating Leases

12 Months Ended

Mar. 31, 2018

NOTE 11 – OPERATING LEASES

We lease various facilities under non-cancellable lease agreements which expire at various dates through fiscal 2041. In addition to stated minimum payments, certain real estate leases have provisions for contingent rentals when retail sales exceed specified levels. Generally, the leases provide for renewal for various periods at stipulated rates. Most of the facilities’ leases require payment of property taxes, insurance and maintenance costs in addition to rental payments, and several provide an option to purchase the property at the end of the lease term.

In recent years, we have entered into agreements for the sale-leaseback of certain stores. Realized gains are deferred and are credited to income as rent expense adjustments over the lease terms. We have lease renewal options under the real estate agreements at projected future fair market values.

Future minimum payments required under non-cancellable leases (including closed stores) are as follows:



			Less -
			Sublease
Year Ending Fiscal March	Leases		Income		Net
	(Dollars in thousands)
2019	$	34,363	$	(78)	$	34,285
2020		30,150		(86)		30,064
2021		25,258		(87)		25,171
2022		20,113		(77)		20,036
2023		14,562		(65)		14,497
Thereafter		35,046		(7)		35,039
Total	$	159,492	$	(400)	$	159,092

Rent expense under operating leases, net of sublease income, totaled $38.9 million, $38.6 million and $36.7 million in fiscal 2018, 2017 and 2016, respectively, including contingent rentals. Sublease income totaled $.1 million in each of fiscal 2018, 2017 and 2016.