Lease Commitments

12 Months Ended

Dec. 31, 2018

The Company leases certain facilities and equipment under various operating lease agreements with expiration dates through 2027 and typically contain renewal options of 5 to 10 years. These agreements generally require the Company to pay rental amounts and operating expenses, and contain tenant improvement allowances, rent holidays, rent escalation clauses and/or contingent rent provisions.

Leasehold improvement assets, which generally represent non-structural improvements for which the Company receives reimbursement from the landlord, are depreciated over the lesser of 10 years or the initial life of the lease, prior to any lease extensions. For tenant allowances, the Company records a corresponding deferred rent liability in other liabilities on the balance sheet and amortizes the deferred rent over the initial term of the lease as a reduction to rent expense.

The Company’s leases may contain rent holidays and/or escalating rent payments; however, the Company accounts for the rent expense on a straight-line basis over the lease term. The straight-line rent expense is calculated at the inception of the lease, which entails recording a monthly liability for the difference between rent paid to the landlord and straight-line rent expense as calculated at the beginning of the lease.

Rent expense was $33.4 million and $28.5 million for the years ended December 31, 2018 and 2017, respectively.

Minimum annual lease commitments under non-cancelable operating leases are summarized as follows (in thousands):



Years Ending December 31,	Total
2019	$	29,289
2020	26,202
2021	23,796
2022	18,120
2023	12,647
Thereafter	19,856
	$	129,910

Following is a summary of non-cancelable capital lease commitments (in thousands):



Years Ending December 31,	Total
2019	$	2,675
2020	2,573
2021	2,216
2022	1,380
2023	987
Thereafter	—
	$	9,831