Annual report pursuant to Section 13 and 15(d)

Leases

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Leases
12 Months Ended
Dec. 31, 2011
Leases [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 77 of our 216 service center locations at December 31, 2011.

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)

   2011     2010  

Information systems

   $ 12,232     $ 3,587  

Less: Accumulated amortization

     (3,065     (2,360
  

 

 

   

 

 

 
   $ 9,167     $ 1,227  
  

 

 

   

 

 

 

Future minimum annual lease payments as of December 31, 2011 are as follows:

 

(In thousands)

   Capital
Leases
    Operating
Leases
     Total  

2012

   $ 3,728     $ 16,256       $ 19,984   

2013

     2,730       12,682         15,412   

2014

     —          9,439         9,439   

2015

     —          6,193         6,193   

2016

     —          5,126         5,126   

Thereafter

     —          23,616         23,616   
  

 

 

   

 

 

    

 

 

 

Total minimum lease payments

     6,458     $ 73,312       $ 79,770   
    

 

 

    

 

 

 

Less: Amount representing interest

     (130     
  

 

 

      

Present value of capitalized lease obligations

   $ 6,328       
  

 

 

      

Aggregate expense under operating leases was $19.5 million, $21.0 million and $20.5 million for 2011, 2010 and 2009, respectively. Certain operating leases include rent escalation provisions, which we recognize as expense on a straight-line basis.