LEASES AND COMMITMENTS

As of September 30, 2018, the future minimum payments, including interest, under capitalized leases with initial terms of one year or more and future rentals under operating leases for certain facilities, office equipment and revenue equipment with initial terms of one year or more were as follows for the years indicated (in thousands):



	2018		2019		2020		2021		2022		Thereafter
Capital leases, including interest component	$	2,634	$	15,457	$	19,266	$	3,542	$	4,416	$	9,199
Operating leases	2,855		8,277		4,817		753		349		459

CAPITAL LEASES

The Company leases certain equipment under capital leases with terms ranging from 15 months to 60 months. Balances related to these capitalized leases are included in the "Property and Equipment" line item in the accompanying condensed consolidated balance sheets and are set forth in the table below for the periods indicated (in thousands):



	Capitalized Costs		Accumulated Amortization		Net Book Value
September 30, 2018	$	64,551	$	14,691	$	49,860
December 31, 2017	66,785		23,254		43,531

The Company has capitalized lease obligations relating to revenue equipment as of September 30, 2018 of $50.3 million, of which $10.3 million represents the current portion. Such leases have various termination dates extending through November 2024 and contain renewal or fixed price purchase options. The effective interest rates on the leases range from nil to 2.18% as of September 30, 2018. The lease agreements require payment of property taxes, maintenance and operating and non-operating expenses. Amortization of capital leases was $1.4 million and $4.2 million for the three and nine months ended September 30, 2018, respectively, and $1.6 million and $5.2 million for the three and nine months ended September 30, 2017, respectively. As of the nine months ended September 30, 2018, the Company has entered into $19.7 million dollars of non-cash capitalized lease obligations as compared to $2.8 million at September 30, 2017.

OPERATING LEASES

Rent expense associated with operating leases was $3.3 million and $8.9 million for the three and nine months ended September 30, 2018, respectively, and $3.2 million and $8.7 million for the three and nine months ended September 30, 2017, respectively. Rent expense relating to tractors, trailers and other operating equipment is included in the Equipment rent,” line item while rent expense relating to office equipment is included in the “Operations and maintenance” line item in the accompanying condensed consolidated statements of operations and comprehensive income (loss).

During the second quarter of 2018, the Company completed a sale-leaseback transaction under which it sold certain owned trailers to an unrelated party for proceeds of $5.3 million and entered into an operating lease with the buyer for a term of six months. The $5.3 million of proceeds due to the Company was recorded in the “Other receivables” line item in the accompanying condensed consolidated balance sheet, and was received from the purchaser in early July 2018. The Company recorded a liability of approximately $1.3 million representing the gain on the sale and will amortize such amount to earnings ratably over the lease term. This deferred gain is included in the “Deferred gain” line item in the accompanying condensed consolidated balance sheet.

OTHER COMMITMENTS

As of September 30, 2018, the Company had $24.4 million in noncancellable commitments for purchases of both revenue and non-revenue equipment. We anticipate funding these commitments with operating and financing cash flows.