Lease Obligations

12 Months Ended

Dec. 31, 2016

LEASE OBLIGATIONS

Assets recorded under capital lease obligations of $2.8 million and $2.7 million at December 31, 2016 and 2015, respectively, are included in property and equipment. Accumulated depreciation related to such assets was $1.8 million and $1.6 million at December 31, 2016 and 2015, respectively. Depreciation on the assets recorded under capital leases is included in depreciation expense.

The Company leases office space under operating leases, some of which include renewal options. Rental expense for the year ended December 31, 2016 was approximately $1.1 million. Rental expense for each of the years ended December 31, 2015 and 2014 was approximately $1.3 million.

Future minimum lease payments for the five years subsequent to December 31, 2016, thereafter and in the aggregate are as follows (in thousands):



	Capital Leases			Operating Leases
2017	$	326		$	634
2018	337			560
2019	337			560
2020	337			252
2021	337			189
Thereafter	112			173
Total minimum lease payments	1,786			$	2,368
Less amount representing interest	(276		)
Present value of net minimum lease payments	$	1,510

Capital leases are comprised of a sale leaseback agreement entered into by Seitel Canada in 2002 on a building and land located in Calgary, Alberta, Canada. The term of the lease is 20 years with remaining annual lease payments of: $409,500 (Canadian dollars) until April 2017 and $452,340 (Canadian dollars) from May 2017 until April 2022.