Note 11—Capital Leases

The Company leases vehicles and certain equipment under capital leases. The economic substance of the leases is that the Company is financing the acquisition of vehicles and equipment through leases and accordingly, they are recorded in the Company’s assets and liabilities. Included in depreciation expense is amortization of vehicles and equipment held under capital leases, amortized over their useful lives on a straight-line basis. As part of the November 12, 2010 Rockford acquisition, vehicles and equipment with a fair value of $12,501 were acquired and the related capital lease obligations were assumed.

At December 31, 2012 and 2011, the net book value of assets under capital leases was $10,382 and $12,304, respectively. The following is a schedule by year of the future minimum lease payments required under capital leases together with their present value as of December 31:

2013	$	3,921
2014	2,736
2015	1,141
2016	105
Total minimum lease payments	$	7,903
Amounts representing interest	(339		)
Net present value of minimum lease payments	7,564
Less: current portion of capital lease obligations	(3,733		)
Long-term capital lease obligations	$	3,831