5. Leases

The Company leases uplink and transponder capacity and copiers under long‑term lease agreements that are accounted for as capital leases. The capital lease liabilities are included as components of both accounts payable and accrued liabilities and non‑current accrued liabilities in the accompanying consolidated balance sheets. In addition, the Company leases uplink services and office facilities under operating leases that are generally non‑cancelable. These leases expire at various dates through 2026, and some contain escalation clauses and renewal options. Future minimum lease payments under the agreements as of December 31, 2015, are as follows:


Years Ending December 31,	Capital		Operating
(in thousands)	Leases(1)		Leases(2)
2016	$	2,163	$	4,205
2017		2,160		4,972
2018		2,160		5,135
2019		2,070		5,122
2020		—		3,592
Thereafter		—		11,354
Total minimum lease payments		8,553	$	34,380
Less amount representing interest (at implicit rates of 9.38% and 3.31%)		(1,430)
Present value of net minimum lease payments		7,123
Less current maturities		(1,561)
Long-term obligation	$	5,562

(1)

The Company has three capital lease obligations.

(2)

Includes cancellable amounts related to parking spaces for the Studio City, California, office in the amounts of $130,000 for 2016 through 2019, and $97,000 for 2020.

Rent expense under the operating leases was $3.7 million, $4.4 million and $4.3 million for the years ended December 31, 2013, 2014 and 2015, respectively. Amortization of the uplink and transponder asset held under a capital lease is recorded as amortization of capital lease in the accompanying consolidated statements of operations and comprehensive income (loss).

The Company accrues and recognizes rent expense for operating leases on a straight line basis over the term of the lease, including free rent holiday periods, if any.

Revenue associated with the Company’s sale of excess digital network capacity on a transponder is included in other revenue. Such amounts were $262,000 in 2013, 2014 and 2015.