Lease Obligations

12 Months Ended

Dec. 31, 2017

LEASE OBLIGATIONS

Assets recorded under capital lease obligations of $3.0 million and $2.8 million at December 31, 2017 and 2016, respectively, are included in property and equipment. Accumulated depreciation related to such assets was $2.1 million and $1.8 million at December 31, 2017 and 2016, 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 each of the years ended December 31, 2017 and 2016 was approximately $1.1 million. Rental expense for the year ended December 31, 2015 was approximately $1.3 million.

Future minimum lease payments for the five years subsequent to December 31, 2017, thereafter and in the aggregate are as follows (in thousands):



	Capital Leases			Operating Leases
2018	$	361		$	622
2019	361			573
2020	361			265
2021	360			202
2022	120			185
Thereafter	—			—
Total minimum lease payments	1,563			$	1,847
Less amount representing interest	(200		)
Present value of net minimum lease payments	$	1,363

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 $452,340 (Canadian dollars) until April 2022.