Commitments and Contingencies

Lease Commitments

The Company has cancelable and non-cancelable operating lease agreements principally for facilities and for office equipment used in the Company’s operations. Total operating lease rental expense included in administrative expenses on the consolidated statements of operations was $2.4 million, $2.3 million, and $1.4 million for the years ended December 31, 2017, 2016, and 2015, respectively.

Note 15—Commitments and Contingencies (continued)

Future minimum rental commitments under non-cancelable operating leases having an original term of more than one year as of December 31, 2017 were as follows (in thousands):



Years ending December 31,
2018	$	4,178
2019	2,034
2020	1,164
2021	627
2022 and thereafter	272
Total	$	8,275

Container Equipment Purchase Commitments

As of December 31, 2017, the Company had commitments to purchase equipment in the amount of $276.0 million payable in 2018.

Contingencies

The Company is party to various pending or threatened legal or regulatory proceedings arising in the ordinary course of its business. Based upon information presently available, the Company does not expect any liabilities arising from these matters to have a material effect on the consolidated financial position, results of operations or cash flows of the Company.

Employment Agreements and Indemnification Agreements

The Company has entered into employment arrangements and indemnification agreements with certain executive officers and with certain employees. The agreements specify various employment-related matters, including annual compensation, performance incentive bonuses, and severance benefits in the event of termination with or without cause.

Retention Bonus Plan

TCIL established a bonus plan in 2011 to award bonuses to certain employees for continued service (the “Retention Bonus Plan”) and in 2015, established an incremental retention bonus plan (the “Plan”) to award bonuses to certain employees for continued service who were not included in the Retention Bonus Plan. In accordance with the terms of the Retention Bonus Plan agreement, specified bonus amounts, plus interest compounded annually, were paid to all participants on the earlier of their termination date or June 2017.

TAL established a bonus plan in 2015 to award bonuses to certain TAL employees for continued service (the “TAL Retention Bonus Plan”). In accordance with the terms of the TAL Retention Bonus Plan agreement, the specified bonus amounts were paid to all participants on the earlier of their termination date or July 2017.

A roll-forward of the retention bonus liability balance is as follows (in thousands):



	Total
Balance at December 31, 2015	$	19,128
Liability Acquired	4,082
Accrual	7,384
Payments	(5,419		)
Balance at December 31, 2016	$	25,175
Accrual	2,853
Payments	(28,028		)
Balance at December 31, 2017	$	—

Note 15—Commitments and Contingencies (continued)

Severance Plan

TCIL and TAL established severance plans in order to provide severance benefits to eligible employees who are involuntarily terminated for reasons other than cause, or who resign for “good reason”. Employees eligible for benefits under the severance plans would receive a severance award and other benefits based upon their tenure with either TCIL or TAL.

The severance balance is as follows (in thousands):



	Total
Balance at December 31, 2015	$	—
Accrual	33,991
Payments	(13,273		)
Balance at December 31, 2016	20,718
Accrual	6,023
Payments	(17,064		)
Balance at December 31, 2017	$	9,677