10. Capital Leases

The Company leases vehicles and certain equipment under capital leases. The economic substance of the leases is a financing transaction for acquisition of the vehicles and equipment, and accordingly, the leases are recorded as 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.

In March, 2016 the Company entered into master leasing arrangements for vehicles and construction equipment. Some of the leases entered into under these agreements met the accounting requirements to be recorded as capital leases. As a result, $0.7 million was included in property and equipment, net of accumulated depreciation and $0.1 million and $0.6 million were recorded in current maturities of long-term debt and long-term debt, net of current maturities, respectively. As of March 31, 2016 the Company had approximately $6.8 million of outstanding commitments under its master lease agreements.

The following is a schedule by year of the future minimum lease payments required under capital leases together with their present value as of March 31, 2016:

	Capital
(In thousands)	Lease Obligations

Remainder of 2016	$	120
2017		160
2018		160
2019		160
2020		160
2021		40
Total minimum lease payments	$	800
Interest		(55)
Net present of minimum lease payments		745
Less: Current portion of capital lease obligations		(129)
Long-term capital lease obligations	$	616