We have financial commitments and obligations that arise in the ordinary course of our business. These include long-term debt (discussed in Note 10, Debt), capital commitments, lease obligations, purchase commitments for goods and services, and legal proceedings (discussed below).

The Company had capital commitments of approximately $112.8 million and $281.3 million as of December 31, 2018 and 2017, respectively, in connection with the expansion and replacement of existing facilities and equipment.

PCA leases space for certain facilities, cutting rights to approximately 75,000 acres of timberland, land for a fiber farm, and equipment, primarily vehicles and rolling stock. Remaining lease terms average four years and may contain renewal options or escalation clauses. Substantially all lease agreements have fixed payment terms based on the passage of time. Some lease agreements provide us with the option to purchase the leased property. Additionally, some agreements contain renewal options averaging approximately six years. Some leases may require the Company to pay executory costs, which may include property taxes, maintenance and insurance. The minimum lease payments under non-cancelable operating leases with lease terms in excess of one year were as follows (dollars in millions):

2019	$	70.1
2020		58.7
2021		47.4
2022		29.9
2023		17.8
Thereafter		46.4
Total	$	270.3

Total lease expense, including base rent on all leases and executory costs, such as insurance, taxes, and maintenance, for the years ended December 31, 2018, 2017, and 2016, was $115.1 million, $100.6 million and $88.3 million, respectively. These costs are included in “Cost of sales” and “Selling, general, and administrative expenses” in our Consolidated Statements of Income. We had no sublease rental income for the years ended December 31, 2018 and 2017 and an insignificant amount of sublease rental income in the year ended December 31, 2016.

PCA was obligated under capital leases covering buildings and machinery and equipment in the amount of $19.0 million and $20.3 million at December 31, 2018 and 2017, respectively. Assets held under capital lease obligations were included in property, plant, and equipment as follows (dollars in millions):

	Year Ended December 31,
	2018			2017
Buildings	$	0.3		$	0.3
Machinery and equipment		28.5			28.5
Total		28.8			28.8
Less accumulated amortization		(16.7	)		(15.2	)
Total	$	12.1		$	13.6

Amortization of assets under capital lease obligations is included in depreciation expense.

The future minimum payments under capitalized leases at December 31, 2018 were as follows (dollars in millions):

2019	$	2.7
2020		2.7
2021		2.7
2022		2.7
2023		2.7
Thereafter		12.4
Total minimum capital lease payments		25.9
Less amounts representing interest		(6.9	)
Present value of net minimum capital lease payments		19.0
Less current maturities of capital lease obligations		(1.4	)
Total long-term capital lease obligations	$	17.6

Interest expense related to capital lease obligations for the years ended December 31, 2018, 2017, and 2016 was $1.3 million, $1.4 million, and $1.5 million, respectively.

In the table below, we set forth our enforceable and legally binding purchase obligations as of December 31, 2018. Some of the amounts are based on management's estimates and assumptions about these obligations, including their duration, the possibility of renewal, anticipated actions by third parties, and other factors. Because these estimates and assumptions are necessarily subjective, our actual payments may vary from those reflected in the table. Purchase orders made in the ordinary course of business are excluded below. Any amounts for which we are liable under purchase orders are reflected on the Consolidated Balance Sheets as accounts payable and accrued liabilities. These obligations relate to various purchase agreements for items such as minimum amounts of energy and fiber purchases over periods ranging from one year to 22 years. Total purchase commitments were as follows (dollars in millions):

2019	$	75.3
2020		48.6
2021		43.1
2022		42.6
2023		43.7
Thereafter		117.5
Total	$	370.8

The Company purchased a total of $341.9 million, $339.1 million, and $362.0 million during the years ended December 31, 2018, 2017, and 2016, respectively, under these purchase agreements.

The potential costs for various environmental matters are uncertain due to such factors as the unknown magnitude of possible cleanup costs, the complexity and evolving nature of governmental laws and regulations and their interpretations, and the timing, varying costs and effectiveness of alternative cleanup technologies. From 2006 through 2018, there were no significant environmental remediation costs at PCA's mills and corrugated plants. At December 31, 2018, the Company had $27.3 million of environmental-related reserves recorded on its Consolidated Balance Sheet. Of the $27.3 million, approximately $18.3 million related to environmental-related asset retirement obligations discussed in Note 12, Asset Retirement Obligations, and $9.0 million related to our estimate of other environmental contingencies. The Company recorded $5.0 million in “Accrued liabilities” and $22.3 million in “Other long-term liabilities” on the Consolidated Balance Sheet. Liabilities recorded for environmental contingencies are estimates of the probable costs based upon available information and assumptions. Because of these uncertainties, PCA’s estimates may change. The Company believes that it is not reasonably possible that future environmental expenditures for remediation costs and asset retirement obligations above the $27.3 million accrued as of December 31, 2018, will have a material impact on its financial condition, results of operations, or cash flows.

We provide guarantees, indemnifications, and other assurances to third parties in the normal course of our business. These include tort indemnifications, environmental assurances, and representations and warranties in commercial agreements. At December 31, 2018, we are not aware of any material liabilities arising from any guarantee, indemnification, or financial assurance we have provided. If we determined such a liability was probable and subject to reasonable determination, we would accrue for it at that time.

On February 8, 2017, a tank located in the pulp mill at the Company's DeRidder, Louisiana facility exploded, resulting in three contractor fatalities and other injuries. The Company has been served with multiple lawsuits involving the decedents and other allegedly injured parties, alleging negligence on the part of the Company and claiming compensatory and punitive damages. The Company is vigorously defending these lawsuits. The Company believes that these suits are covered by its liability insurance policies, subject to an aggregate $1.0 million deductible. The incident remains under investigation and all lawsuits are in the early stages. Accordingly, the Company is unable to estimate a range of reasonable possible losses at this time.

The Company has also incurred property damage and business interruption losses and has claimed these losses, subject to a $5.0 million deductible, under its property damage and business interruption insurance policy. As of December 31, 2017, the Company finalized the claim with the insurance carrier and received $17.0 million in insurance proceeds during the first quarter of 2018. The insurance proceeds are included in net cash provided by operating activities ($14.5 million) and in net cash used for investing activities ($2.5 million) based on the nature of the reimbursement.

The Company has cooperated with investigations from the U.S. Occupational Health and Safety Administration (OSHA), the U.S. Chemical Safety Board (CSB) and the U.S. Environmental Protection Agency (EPA). The U.S. Chemical Safety Board completed its investigation and issued its report during the second quarter of 2018. The Company settled with OSHA during the second quarter of 2018 and paid approximately $40,000 in penalties for citations. The EPA investigation is ongoing.

We are also a party to various legal actions arising in the ordinary course of our business. These legal actions include commercial liability claims, premises liability claims, and employment-related claims, among others. As of the date of this filing, we believe it is not reasonably possible that any of the legal actions against us will, either individually or in the aggregate, have a material adverse effect on our financial condition, results of operations, or cash flows.