1 0.	LEAS ING ACTIVITIES :

Vehicle Leases

as Lessee

The Company leases vehicles

, as lessee, primarily over periods ranging from

one

ten

years under operating lease and capital lease arrangements. Generally, the Company is required to incur all operating costs and pay a minimum rental. The Company usually guarantees the residual value of vehicles under operating lease and capital lease arrangements. At

December 31, 2017,

the Company guaranteed vehicle residual values of

$37.0

million under capital lease arrangements. Historically, the Company purchases these vehicles at the end of the lease term and recognizes a gain on the subsequent sale of the vehicle. Vehicle lease expenses were approximately

$0.9

million for the year ended

December

31,

2017,

$1.3

million for the year ended

December

31,

2016,

and

$2.4

million for the year ended

December 31, 2015.

As discussed below, these vehicles are then subleased by the Company to customers under various agreements. Future minimum sublease rentals to be received by the Company under non-cancelable subleases, as described below,

are

$71.0

million.

Future minimum lease payments under capital and non-cancelable vehicle leases as of

December

31,

2017,

are as follows (in thousands):

	Capital Leases			Operating Leases
2018	$	19,819		$	1,312
2019		20,499			1,263
2020		19,037			949
2021		13,826			502
2022		10,781			452
Thereafter		6,735			143

Total minimum lease payments	$	90,697		$	4,621
Less amount representing interest		(7,556	)
Present value of net minimum capital lease payments		83,141
Less current portion		(17,119	)
Obligations under capital leases less current portion	$	66,022

Customer Vehicle Leases

as Lessor

he Company, through its PacLease and Idealease franchises, leases vehicles that the Company owns or leases to customers primarily over periods of

one

ten

years, under operating lease arrangements that require a minimum rental payment and a contingent rental payment based on mileage. Rental income during the year ended

December 31, 2017,

consisted of minimum rental payments of approximately

$187.4

million and contingent rental payments of

$29.0

million. Rental income during the year ended

December 31, 2016,

consisted of minimum rental payments of approximately

$182.1

million and contingent rental payments of

$27.8

million. Rental income during the year ended

December 31, 2015,

consisted of minimum rental payments of approximately

$175.0

million and contingent rental payments of

$27.4

million. Minimum rental payments to be received for non-cancelable leases and subleases in effect at

December

31,

2017,

are as follows (in thousands):

2018	$	123,641
2019		104,067
2020		80,054
2021		51,334
2022		28,647
Thereafter		14,961

Total	$	402,704

As of

December 31,

201

the Company had

$584.4

million of lease vehicles included in property and equipment, net of accumulated depreciation of

$310.5

million. As of

December 31, 2016,

the Company had

$570.1

million of lease vehicles included in property and equipment, net of accumulated depreciation of

$262.6

million.

Other Leases - Land and Buildings

The Company leases various assets under operating leases with expiration dates ranging

from

January 2018

through

June

2102.

Monthly rental payments range from approximately

$275

per month to

$46,479

per month. Rental expense was

$9.5

million for the year ended

December

31,

2017,

$10.3

million for the year ended

December

31,

2016,

and

$11.8

million for the year ended

December

31,

2015.

Future minimum lease payments under non-cancelable leases at

December

31,

2017,

are as follows (in thousands):

201 8	$	8,207
201 9		5,954
2020		4,445
2021		2,618
2022		1,666
Thereafter		15,113

Total	$	38,003