Commitments

12 Months Ended

Dec. 31, 2017

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 2028. Leases for office space and manufacturing facilities generally contain renewal options. Rental expense for 2017, 2016 and 2015 was $15.8 million, $14.4 million and $13.5 million, respectively.

The Company is obligated under a capital lease that expires in 2023. As of December 31, 2017, property, plant and equipment included the following amounts under this capital lease obligation (in thousands):

Buildings and building improvements	$	12,207
Less accumulated depreciation		(8,263)
	$	3,944

Capital lease obligations outstanding consist of the following:
			December 31,
(in thousands)			2017		2016
	Capital lease obligations	$	7,172	$	8,068
	Less current installments		1,025		896
	Capital lease obligations, less current installments	$	6,147	$	7,172

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
	2018	$	1,712	$	13,750
	2019		1,746		12,342
	2020		1,781		10,086
	2021		1,816		7,980
	2022		1,853		5,743
	Thereafter		465		19,226
	Total minimum lease payments	$	9,373	$	69,127
	Less: amount representing interest		2,201
	Present value of minimum lease payments		7,172
	Less: current installments		1,025
	Capital lease obligations, less current installments	$	6,147

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.