Annual report pursuant to Section 13 and 15(d)

Leases

v2.4.0.6
Leases
12 Months Ended
Dec. 31, 2012
Leases, Operating [Abstract]  
Leases
Note 4. Leases

We lease certain information systems under capital leases. We also lease other assets under operating leases, which primarily consist of real estate leases for 68 of our 218 service center locations at December 31, 2012.

Certain operating leases provide for renewal options. Renewal options and length of renewals vary by lease and are typically offered at their fair rental value. We have not made any residual value guarantees related to our operating leases; therefore, we have no corresponding liability recorded on our Balance Sheets.

Assets under capital leases are included in property and equipment as follows:
 
 
December 31,
(In thousands)
 
2012
 
2011
Information systems
 
$
9,910

 
$
12,232

Less: Accumulated amortization
 
(2,270
)
 
(3,065
)
 
 
$
7,640

 
$
9,167



Future minimum annual lease payments as of December 31, 2012 are as follows:
 
(In thousands)
 
Capital
Leases
 
Operating
Leases
 
Total
2013
 
$
3,308

 
$
15,823

 
$
19,131

2014
 

 
11,977

 
11,977

2015
 

 
7,566

 
7,566

2016
 

 
5,707

 
5,707

2017
 

 
4,801

 
4,801

Thereafter
 

 
19,136

 
19,136

Total minimum lease payments
 
3,308

 
$
65,010

 
$
68,318

Less: Amount representing interest
 
(44
)
 
 
 
 
Present value of capitalized lease obligations
 
$
3,264

 
 
 
 


Aggregate expense under operating leases was $19.1 million, $19.5 million and $21.0 million for 2012, 2011 and 2010, respectively. Certain operating leases include rent escalation provisions, which we recognize as expense on a straight-line basis.