Commitments

12 Months Ended

Dec. 31, 2016

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 2027. Leases for office space and manufacturing facilities generally contain renewal options. Rental expense for 2016, 2015 and 2014 was $14.4 million, $13.5 million and $14.6 million, respectively.

The Company is obligated under a capital lease that expires in 2023. As of December 31, 2016, property, plant and equipment included the following amounts under this capital lease obligation (in thousands):

Buildings and building improvements	$	12,207
Less accumulated depreciation		(7,512)
	$	4,695

Capital lease obligations outstanding consist of the following:
			December 31,
(in thousands)			2016		2015
	Capital lease obligations	$	8,068	$	8,845
	Less current installments		896		778
	Capital lease obligations, less current installments	$	7,172	$	8,067

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
	2017	$	2,633	$	12,013
	2018		2,793		10,614
	2019		2,972		9,497
	2020		3,167		6,967
	2021		3,382		4,736
	Thereafter		4,513		17,096
	Total minimum lease payments	$	19,460	$	60,923
	Less: amount representing interest		11,392
	Present value of minimum lease payments		8,068
	Less: current installments		896
	Capital lease obligations, less current installments	$	7,172

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.