Leasing Arrangements

12 Months Ended

Dec. 31, 2017

The Company leases warehouse and manufacturing real estate, and manufacturing and computer equipment under operating leases with terms ranging up to 25 years. Operating lease expense amounted to $9.3 million, $8.6 million, and $8.3 million during 2017, 2016, and 2015, respectively. The future estimated minimum payments under capital leases and non-cancelable operating leases with initial lease terms in excess of one year at December 31, 2017, are as follows:



	Capital		Operating
(Thousands)	Leases		Leases
2018	$	2,172	$	8,096
2019	2,172		6,297
2020	2,172		5,471
2021	2,172		4,605
2022	2,172		5,636
2023 and thereafter	22,609		3,281
Total minimum lease payments	33,469		$	33,386
Amounts representing interest	20,661
Present value of net minimum lease payments	$	12,808

During 2017, in connection with the HTB acquisition, the Company entered into an agreement to relocate the German operations from Hanau, Germany to a new, leased facility in Alzenau, Germany. In order for this manufacturing facility to meet the Company's operating specifications, both the landlord and the Company are making structural improvements to the facility, and as a result, the Company has concluded that it is the deemed owner of the building for accounting purposes only during the construction period. Accordingly, as of December 31, 2017, the Company recorded an asset of $12 million in Property, Plant, and Equipment as construction in progress, representing its estimate of construction costs incurred to date, and a corresponding liability, recorded as a component of Other long-term liabilities. The future estimated minimum payments related to this lease are included in the above table under the caption of Capital Leases.