Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The Company is obligated under capital leases covering fleet vehicles and certain equipment, as well as one facility. The fleet vehicles and equipment leases generally have terms ranging from three to six years and the facility lease has a remaining term of eight years. The carrying value of property and equipment under capital leases was $26.3 million and $11.7 million at December 31, 2015 and 2014, respectively, net of accumulated depreciation of $21.5 million and $17.6 million, respectively. Amortization of assets held under capital leases is included within depreciation expense or cost of goods sold on the consolidated statements of operations.

The Company also has noncancellable operating leases, primarily for buildings, improvements, and equipment. These leases generally contain renewal options for periods ranging from one to five years and require the Company to pay all executory costs such as property taxes, maintenance and insurance.

Future minimum lease payments under noncancellable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2015 are as follows.



(in thousands)	Capital Leases			Operating Leases
2016	$	8,270		$	27,483
2017	6,772			22,771
2018	3,936			19,131
2019	2,636			16,397
2020	1,892			11,062
Thereafter	2,929			40,952
	26,436			$	137,796	(a)
Less: Amounts representing interest	(2,589		)
Total obligation under capital leases	23,847
Less: Current portion of capital lease obligation	(7,352		)
Long term capital lease obligation	$	16,495

(a) Minimum operating lease payments have not been reduced by minimum sublease rentals of $0.5 million due in the future under noncancelable subleases.

Total rent expense under operating leases, excluding short-term rentals, for the years ended December 31, 2015, 2014 and 2013 was $8.1 million, $4.2 million and $3.2 million, respectively, which are included in either cost of sales or selling, general and administrative expenses on the consolidated statements of operations, depending on the type of operations undertaken by the related facility or asset. Future payments for certain leases will be adjusted based on increases in the consumer price index.

As of December 31, 2015, the Company had purchase commitments $7.8 million related primarily to vehicles and certain IT equipment, which are enforceable and legally binding on us.

From time to time, various claims, legal proceedings and litigation are asserted or commenced against the Company principally arising from alleged product liability, warranty, casualty, construction defect, contract, tort, employment and other disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated. It is not certain that the Company will prevail in these matters. However, the Company does not believe that the ultimate outcome of any pending matters will have a material adverse effect on its consolidated financial position, results of operations or cash flows.