Annual report pursuant to Section 13 and 15(d)

Leases

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Leases
12 Months Ended
Dec. 31, 2018
Leases Operating [Abstract]  
Leases

Note 3. Leases

We lease certain assets under operating leases, which primarily consist of real estate leases for 32 of our 235 service center locations and automotive leases for our company cars at December 31, 2018. Certain operating leases provide for renewal options, which can 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.

Future minimum annual lease payments for assets under operating leases as of December 31, 2018 are as follows:

 

(In thousands)

 

Total

 

2019

 

$

12,502

 

2020

 

 

12,162

 

2021

 

 

11,398

 

2022

 

 

9,251

 

2023

 

 

6,775

 

Thereafter

 

 

56,621

 

 

 

$

108,709

 

 

Aggregate expense under operating leases was $12.6 million, $14.1 million and $13.8 million for 2018, 2017 and 2016, respectively. Certain operating leases include rent escalation provisions, which we recognize as expense on a straight-line basis. We did not have any assets under capital leases at each of December 31, 2018 and 2017.