Commitments

12 Months Ended

Dec. 31, 2018

Note 8—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 2018, 2017 and 2016 was $16.8 million, $15.8 million and $14.4 million, respectively.

The Company is obligated under a capital lease that expires in 2023. As of December 31, 2018, property, plant and equipment included the following amounts under this capital lease obligation (in thousands):

Buildings and building improvements	$	12,207
Less accumulated depreciation		(9,015)
	$	3,192

Capital lease obligations outstanding consist of the following:
			December 31,
(in thousands)			2018		2017
	Capital lease obligations	$	6,147	$	7,172
	Less current installments		1,168		1,025
	Capital lease obligations, less current installments	$	4,979	$	6,147

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
	2019	$	1,746	$	15,272
	2020		1,781		14,518
	2021		1,816		12,203
	2022		1,853		10,466
	2023		465		9,890
	Thereafter		—		47,868
	Total minimum lease payments	$	7,661	$	110,217
	Less: amount representing interest		1,514
	Present value of minimum lease payments		6,147
	Less: current installments		1,168
	Capital lease obligations, less current installments	$	4,979

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.