NOTE 8 – LEASES

The Company leases office, distribution, retail and manufacturing facilities, and office equipment under operating leases, which expire at various dates through February 2027. Certain leases include renewal options and the payment of real estate taxes and other occupancy costs. Some leases also contain rent escalation clauses (step rents) that require additional rent amounts in the later years of the term. Rent expense for leases with step rents is recognized on a straight-line basis over the minimum lease term. Likewise, capital funding and other lease concessions that are occasionally provided to the Company are recorded as deferred rent and amortized on a straight-line basis over the minimum lease term as adjustments to rent expense. Rent expense for equipment and distribution, factory and office facilities under operating leases was approximately $14.2 million, $13.5 million and $13.5 million in fiscal 2017, 2016 and 2015, respectively.

Minimum annual rentals under noncancelable operating leases as of January 31, 2017, excluding real estate taxes and operating costs, are as follows (in thousands):

Fiscal Year Ending January 31,
2018	$	13,097
2019		9,013
2020		5,301
2021		3,558
2022		3,282
Thereafter		13,288
	$	47,539