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Leases | 12 Months Ended
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Dec. 31, 2017
Leases [Abstract] |
LEASES | LEASES Leases as Lessor We lease revenue earning equipment to customers for periods ranging from three to seven years for trucks and tractors and up to ten years for trailers. From time to time, we may also lease facilities to third parties. The majority of our leases are classified as operating leases. However, some of our revenue earning equipment leases are classified as direct financing leases and, to a lesser extent, sales-type leases. The net investment in direct financing and sales-type leases consisted of:
|  | December 31,
|  | 2017 |  | 2016
|  | (In thousands)
Total minimum lease payments receivable |  | $ | 713,857 |  |  | 647,111 |
Less: Executory costs |  | (216,754 | ) |  | (196,469 | )
Minimum lease payments receivable |  | 497,103 |  |  | 450,642 |
Less: Allowance for uncollectibles |  | (327 | ) |  | (248 | )
Net minimum lease payments receivable |  | 496,776 |  |  | 450,394 |
Unguaranteed residuals |  | 41,937 |  |  | 45,748 |
Less: Unearned income |  | (91,870 | ) |  | (86,668 | )
Net investment in direct financing and sales-type leases |  | 446,843 |  |  | 409,474 |
Current portion |  | (81,996 | ) |  | (76,322 | )
Non-current portion |  | $ | 364,847 |  |  | 333,152 |
Our direct financing lease customers operate in a wide variety of industries, and we have no significant customer concentrations in any one industry. We assess credit risk for all of our customers including those who lease equipment under direct financing leases. Credit risk is assessed using an internally developed model, which incorporates credit scores from third party providers and our own custom risk ratings and is updated on a monthly basis. The external credit scores are developed based on the customer’s historical payment patterns and an overall assessment of the likelihood of delinquent payments. Our internal ratings are weighted based on the industry that the customer operates in, company size, years in business and other credit-related indicators (i.e., profitability, cash flow, liquidity, tangible net worth, etc.). Any one of the following factors may result in a customer being classified as high risk: i) history of late payments; ii) open lawsuits, liens or judgments; iii) in business less than three years; and iv) operates in an industry with low barriers to entry. For those customers who are designated as high risk, we typically require deposits to be paid in advance in order to mitigate our credit risk. Additionally, our receivables are collateralized by the vehicle’s fair value, which further mitigates our credit risk. The following table presents the credit risk profile by creditworthiness category of our direct financing lease receivables at December 31, 2017 and 2016:
| December 31,
| 2017 |  | 2016
| (In thousands)
Very low risk to low risk | $ | 201,434 |  |  | 192,853 |
Moderate | 198,464 |  |  | 194,234 |
Moderately high to high risk | 97,205 |  |  | 63,555 |
| $ | 497,103 |  |  | 450,642 |
As of December 31, 2017 and 2016, the amount of direct financing lease receivables that were past due was not significant and there were no impaired receivables. Accordingly, there was no material risk of default with respect to these receivables. Leases as Lessee We lease facilities and office equipment. None of our leasing arrangements contain restrictive financial covenants. During 2017, 2016 and 2015, rent expense (including rent of facilities and contingent rentals) was $130 million, $127 million and $132 million, respectively. Lease Payments Future minimum payments for leases in effect at December 31, 2017 were as follows:
|  | As Lessor (1) |  | As Lessee
|  | Operating Leases |  | Direct Financing and Sales-Type Leases |  | Operating Leases
|  | (In thousands)
2018 |  | $ | 1,139,552 |  |  | 110,692 |  |  | 84,824 |
2019 |  | 892,754 |  |  | 95,759 |  |  | 63,435 |
2020 |  | 649,096 |  |  | 99,470 |  |  | 41,034 |
2021 |  | 433,319 |  |  | 68,349 |  |  | 24,948 |
2022 |  | 258,381 |  |  | 54,603 |  |  | 18,495 |
Thereafter |  | 210,213 |  |  | 68,230 |  |  | 38,288 |
Total |  | $ | 3,583,315 |  |  | 497,103 |  |  | 271,024 |
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(1) | Amounts do not include contingent rentals, which may be received under certain leases on the basis of miles or changes in the Consumer Price Index. Contingent rentals from operating leases included in revenue were $357 million in 2017 and $342 million in both 2016 and 2015. Contingent rentals from direct financing leases included in revenue were $15 million in 2017, $12 million in 2016 and $12 million in 2015 .
The amounts in the previous table related to the lease of revenue earning equipment are based upon the general assumption that revenue earning equipment will remain on lease for the length of time specified by the respective lease agreements. The future minimum payments presented above related to the lease of revenue earning equipment are not a projection of future lease revenue or expense, and no effect has been given to renewals, new business, cancellations, contingent rentals or future rate changes.

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- Definition Description and amounts of lessor entity's leasing arrangements for operating, capital and leveraged leases. It also includes disclosure of lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. This element can be used to disclose the entity's entire lease disclosure as a single block of text. + References No definition available. + Details
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