7.OPERATING LEASES

Lease Expense

In the normal course of business, we lease office space and warehouse and distribution facilities under non-cancelable operating lease agreements. We rent office space, primarily for international and domestic regional sales administration offices, in commercial office complexes that are conducive to sales and administrative operations. We also rent warehousing and distribution facilities that are designed to provide secure storage and efficient distribution of our training products, books, and accessories. These operating lease agreements often contain renewal options that may be exercised at our discretion after the completion of the base rental term. In addition, many of the rental agreements provide for regular increases to the base rental rate at specified intervals, which usually occur on an annual basis. At August 31, 2015, we had operating leases with remaining terms ranging from less than one year to approximately six years. Following the sale of our consumer solutions business unit assets, FC Organizational Products, LLC (FCOP) is contractually obligated to pay to us a portion of the minimum rental payments on certain warehouse and distribution facilities that they are using, although we are still responsible for the gross required minimum lease payments. The following table summarizes our future minimum lease payments under operating lease agreements and the lease amounts receivable from FCOP at August 31, 2015 (in thousands):



		Required		Receivable		Net Required
		Minimum		from FC		Minimum
YEAR ENDING		Lease		Organizational		Lease
AUGUST 31,		Payments		Products		Payments
2016	$	1,590	$	(535)	$	1,055
2017		581		-		581
2018		240		-		240
2019		218		-		218
2020		167		-		167
Thereafter		199		-		199
	$	2,995	$	(535)	$	2,460

We recognize lease expense on a straight-line basis over the life of the lease agreement. Contingent rent expense is recognized as it is incurred and was insignificant for the periods presented. Total rent expense recorded in selling, general, and administrative expense from operating lease agreements was $2.3 million during fiscal 2015 and $2.2 million for each of the fiscal years ended August 31, 2014 and 2013.

Lease Income

We have subleased the majority of our corporate headquarters campus located in Salt Lake City, Utah to multiple, unrelated tenants as well as to FCOP. We recognize sublease income on a straight-line basis over the life of the sublease agreement. The cost basis of the office space available for lease was $36.2 million, which had a carrying value of $10.3 million at August 31, 2015. The following future minimum lease payments due to us from our sublease agreements at August 31, 2015 include lease income of approximately $1.3 million per year from FCOP. The majority of lease income due to us after fiscal 2019 is from FCOP (in thousands):



YEAR ENDING
AUGUST 31,
2016	$	4,167
2017		3,361
2018		3,396
2019		3,097
2020		3,175
Thereafter		4,551
	$	21,747

Sublease revenue totaled $4.4 million, $3.9 million, and $4.2 million during the fiscal years ended August 31, 2015, 2014, and 2013.