Commitments

12 Months Ended

Dec. 31, 2015

Note 7—Commitments

The Company leases certain manufacturing equipment, office equipment, vehicles and office, warehouse and manufacturing facilities under operating leases. Some of the leases provide for escalation of the lease payments as maintenance costs and taxes increase. The leases expire at various times through 2025. Leases for office space and manufacturing facilities generally contain renewal options. Rental expense for 2015, 2014 and 2013 was $13.5 million, $14.6 million and $11.2 million, respectively.

The Company is obligated under a capital lease that expires in 2023. As of December 31, 2015, property, plant and equipment included the following amounts under this capital lease obligation (in thousands):

Buildings and building improvements	$	12,207
Less accumulated depreciation		(6,761)
	$	5,446

Capital lease obligations outstanding consist of the following:
		December 31,
(in thousands)		2015		2014
Capital lease obligations	$	8,845	$	9,521
Less current installments		778		676
Capital lease obligations, less current installments	$	8,067	$	8,845

Future minimum capital lease payments and future minimum lease payments under noncancelable operating leases are as follows (in thousands):

		Capital		Operating
Year ending December 31,		Leases		Leases
2016	$	1,645	$	12,232
2017		1,678		9,461
2018		1,712		7,093
2019		1,746		5,191
2020		1,781		4,019
Thereafter		4,134		7,789
Total minimum lease payments	$	12,696	$	45,785
Less: amount representing interest		3,851
Present value of minimum lease payments		8,845
Less: current installments		778
Capital lease obligations, less current installments	$	8,067

The Company enters into contractual commitments to deliver products and services in the ordinary course of business. The Company believes that all such contractual commitments will be performed or renegotiated such that no material adverse financial impact on the Company’s financial position, results of operations or liquidity will result from these commitments.