10. Leases

We lease office and field equipment, vehicles and buildings under various operating leases. In fiscal 2014, 2013 and 2012, we recognized $70.0 million, $80.8 million and $76.6 million of expense associated with operating leases, respectively. Amounts payable under non-cancelable operating and capital lease commitments are as follows during the following fiscal years:

	Operating		Capital
	(in thousands)
2015	$	65,412	$	781
2016		50,275		552
2017		33,908		70
2018		23,238		55
2019		15,905		13
Beyond		22,377		–

Total	$	211,115		1,471


Less: Amounts representing interest				81

Net present value			$	1,390

We vacated certain facilities under long-term non-cancelable leases and recorded contract termination costs of $2.2 million in fiscal 2014, $4.5 million in fiscal 2013 and $1.3 million in fiscal 2012. These amounts were initially measured at the fair value of the portion of the lease payments associated with the vacated facilities, reduced by estimated sublease rentals, less the write off of a prorated portion of existing deferred items previously recognized on these leases. We expect the remaining lease payments to be paid through the various lease expiration dates that continue until 2024.

We initially measured the lease contract termination liability at the fair value of the prorated portion of the lease payments associated with the vacated facilities, reduced by estimated sublease rentals and other costs. If the actual timing and potential termination costs or realization of sublease income differ from our estimates, the resulting liabilities could vary from recorded amounts. These liabilities are reviewed periodically and adjusted when necessary. The following is a reconciliation of the beginning and ending balances of these liabilities related to lease contract termination costs:

	RCM		ECS			TSS			Total
	(in thousands)
Balance at September 30, 2012	$	–	$	–		$	2,940		$	2,940
Costs incurred and charged to expense		–		3,744			1,055			4,799
Adjustments (1)		–		(34	)		(1,432	)		(1,466	)

Balance at September 29, 2013	$	–	$	3,710		$	2,563		$	6,273

Cost incurred and charged to expense		1,391		443			624			2,458
Adjustments (1)		–		(1,373	)		(989	)		(2,362	)

Balance as September 28, 2014	$	1,391	$	2,780		$	2,198		$	6,369



(1) Adjustments of the actual timing and potential termination costs or realization of sublease income.