10.	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, 2018,

the Company guaranteed vehicle residual values of approximately

$38.0

million under operating lease and 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

$2.5

million for the year ended

December

31,

2018,

$0.9

million for the year ended

December

31,

2017

and

$1.3

million for the year ended

December 31, 2016.

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

$72.8

million.

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

December

31,

2018,

are as follows (in thousands):

	Capital Leases			Operating Leases
2019	$	22,033		$	3,580
2020		19,113			3,264
2021		14,894			2,764
2022		11,062			2,479
2023		5,095			1,957
Thereafter		2,963			1,246

Total minimum lease payments	$	75,160		$	15,290
Less amount representing interest		(6,046	)
Present value of net minimum capital lease payments		69,114
Less current portion		(19,631	)
Obligations under capital leases less current portion	$	49,483

Customer Vehicle Leases

as Lessor

The 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 usage. Rental income during the year ended

December 31, 2018

consisted of minimum rental payments of approximately

$209.3

million and contingent rental payments of

$30.0

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

December

31,

2018,

are as follows (in thousands):

2019	$	97,906
2020		79,784
2021		57,486
2022		37,212
2023		21,813
Thereafter		12,980

Total	$	307,181

As of

December 31, 2018,

the Company had

$576.0

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

$338.7

million. As of

December 31, 2017,

the Company had

$584.4

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

$310.5

million.

Other Leases - Land and Buildings

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

February 2019

through

June

2102.

Monthly rental payments range from approximately

$275

per month to

$38,091

per month. Rental expense was

$10.7

million for the year ended

December

31,

2018,

$9.5

million for the year ended

December

31,

2017,

and

$10.3

million for the year ended

December

31,

2016.

Future minimum lease payments under non-cancelable leases at

December

31,

2018,

are as follows (in thousands):

2019	$	8,715
2020		7,202
2021		5,426
2022		4,599
2023		3,239
Thereafter		21,217

Total	$	50,398