COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases, among other things, retail space, office space, warehouse facilities, storage space, vehicles and equipment. Generally, the base lease terms are between 5 and 10 years. Certain lease agreements contain scheduled rent escalation clauses in their future minimum lease payments. Future minimum lease payments are recognized on a straight-line basis over the minimum lease term and the pro rata portion of scheduled rent escalations is included in other long-term liabilities. Certain retail space lease agreements provide for additional rents based on a percentage of annual sales in excess of stipulated minimums (percentage rent). Certain lease agreements require the Company to pay real estate taxes, insurance, common area maintenance (CAM), and other costs, collectively referred to as operating costs, in addition to base rent. Percentage rent and operating costs are recognized as incurred in SG&amp;A expense in the Consolidated Statements of Operations. Certain lease agreements also contain lease incentives, such as tenant improvement allowances and rent holidays. The Company recognizes the benefits related to the lease incentives on a straight-line basis over the applicable lease term. Rent expense, including percentage rent but excluding operating costs for which the Company is obligated, consisted of the following (in thousands): Year Ended December 31, 2015 2014 2013 Rent expense included in SG&amp;A expense $ 67,881 $ 62,704 $ 53,972 Rent expense included in cost of sales 1,689 1,631 1,592 $ 69,570 $ 64,335 $ 55,564 Approximate future minimum payments, including rent escalation clauses and stores that are not yet open, on all lease obligations at December 31, 2015 , are as follows (in thousands). Operating lease obligations listed below do not include percentage rent, real estate taxes, insurance, CAM, and other costs for which the Company is obligated. These operating lease commitments are not reflected on the Consolidated Balance Sheets. 2016 $