Note 10 - Leasing Activities

12 Months Ended

Dec. 31, 2015

Leases of Lessee Disclosure [Text Block]

10.	LEASING ACTIVITIES :

Vehicle Leases as Lessee

The Company leases vehicles, as lessee, primarily over periods ranging from one to ten years under operating lease and capital lease arrangements. Generally, the Company is required to incur all operating costs and pay a minimum rental. The Company guarantees the residual value of vehicles under operating lease and capital lease arrangements. At December 31, 2015, the Company guaranteed vehicle residual values of $1.8 million under operating lease arrangements and $32.2 million under capital lease arrangements. Historically, the Company purchases these vehicles at the end of the lease term and recognizes a gain on the subsequent sale of the vehicle. The residual values are not reflected in the future minimum lease payments for operating leases. Vehicle lease expenses were approximately $2.4 million for the year ended December 31, 2015, $4.1 million for the year ended December 31, 2014, and $2.3 million for the year ended December 31, 2013.

As discussed below, these vehicles are then subleased by the Company to customers under various agreements. Future minimum sublease rentals to be received by the Company under non-cancelable subleases, as described below, are $75.9 million.

Future minimum lease payments under capital and non-cancelable vehicle leases as of December 31, 2015, are as follows (in thousands):

	Capital Leases			Operating Leases
2016	$	17,181		$	761
2017		18,522			276
2018		15,085			119
2019		13,528			29
2020		13,830			—
Thereafter		13,770			—

Total minimum lease payments	$	91,916		$	1,185
Less amount representing interest		(8,151	)
Present value of net minimum capital lease payments		83,765
Less current portion		(14,691	)
Obligations under capital leases less current portion	$	69,074

Customer Vehicle Leases as Lessor

The Company leases both owned and leased vehicles to customers, through its PacLease and Idealease franchises, primarily over periods of one to ten years under operating lease arrangements, which require a minimum rental payment and a contingent rental payment based on mileage. Rental income during the year ended December 31, 2015, consisted of minimum rental payments of approximately $175.0 million and contingent rental payments of $27.4 million. Rental income during the year ended December 31, 2014, consisted of minimum rental payments of approximately $154.8 million and contingent rental payments of $24.5 million. Rental income during the year ended December 31, 2013, consisted of minimum rental payments of approximately $112.0 million and contingent rental payments of $18.1 million. Minimum rental payments to be received for non-cancelable leases and subleases in effect at December 31, 2015, are as follows (in thousands):

2016	$	118,853
2017		102,943
2018		81,462
2019		59,800
2020		38,659
Thereafter		22,042

Total	$	423,759

As of December 31, 2015, the Company had $592.0 million of lease vehicles included in property and equipment, net of accumulated depreciation of $233.8 million. As of December 31, 2014, the Company had $512.1 million of lease vehicles included in property and equipment, net of accumulated depreciation of $185.0 million.

Other Leases - Land and Buildings

The Company leases various assets under operating leases with expiration dates ranging from January 2016 through May 2045. Monthly rental payments range from approximately $275 per month to $48,466 per month. Rental expense was $11.8 million for the year ended December 31, 2015, $12.8 million for the year ended December 31, 2014, and $9.1 million for the year ended December 31, 2013. Future minimum lease payments under non-cancelable leases at December 31, 2015, are as follows (in thousands):

2016	$	9,198
2017		6,540
2018		4,934
2019		3,697
2020		2,611
Thereafter		16,489

Total	$	43,469