6. Lease Commitments

Capital Leases

The Company incurs capital lease obligations for student computers under a non-revolving lease line of credit with PNC Equipment Finance, LLC. As of June 30, 2018 and 2017, the outstanding balance of capital leases under the current and former lease lines of credit (as discussed in more detail below) was $26.0 million and $21.9 million, respectively, with lease interest rates ranging from 1.95% to 3.12%. Individual leases under the lease lines of credit include 36‑month payment terms with a $1 purchase option at the end of each lease term. The Company has pledged the assets financed to secure the outstanding leases. The gross carrying value of leased student computers as of June 30, 2018 and 2017 was $42.2 million and $39.1 million, respectively. The accumulated depreciation of leased student computers as of June 30, 2018 and 2017 was $26.0 million and $25.1 million, respectively.

The Company had $14.4 million and $31.9 million of remaining availability under its lease line of credit as of June 30, 2018 and 2017, respectively. Interest on unpaid principal under the lease line of credit accrues at a fluctuating rate of LIBOR plus 1.2%.

The following is a summary as of June 30, 2018 of the present value of the net minimum lease payments on capital leases under the Company’s commitments:


As of June 30,	Capital Leases
	(in thousands)

2019	$	13,891
2020		8,449
2021		4,540
Total minimum payments		26,880
Less amount representing interest (imputed weighted average capital lease interest rate of 2.80%)		(862)
Net minimum payments		26,018
Less current portion		(13,353)
Present value of minimum payments, less current portion	$	12,665

Operating Leases

The Company has fixed non‑cancelable operating leases with terms expiring through 2024 for office space leases. Office leases generally contain renewal options and certain leases provide for scheduled rate increases over the lease terms.

Rent expense was $6.8 million, $6.3 million and $7.8 million for the years ended June 30, 2018, 2017 and 2016, respectively.

Future minimum lease payments, net of sublease income, under non-cancelable operating leases with initial terms of one year or more are as follows:


	Year Ended
($ in thousands)	June 30,
2019	$	8,889
2020		7,626
2021		7,057
2022		5,914
2023		258
Thereafter		8
Total future minimum lease payments	$	29,752