Lease Obligations

9 Months Ended

Sep. 30, 2016

Leases of Lessee Disclosure [Text Block]

5. Lease Obligations

From time to time, the Company enters into leasing arrangements for real estate, vehicles and construction equipment. In 2016 the Company entered into master leasing arrangements for vehicles and construction equipment. Some of the leases entered into under these agreements were recorded as capital leases while others were treated as operating leases. As of September 30, 2016, the Company had no outstanding commitments to enter into future leases under its master lease agreements.

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 included in the balance sheets in property and equipment, net of accumulated depreciation, with a corresponding amount recorded in current and long term debt. The capital lease assets are amortized over the life of the lease or, if shorter, the life of the leased asset, on a straight line basis and included in depreciation expense in the statements of operations. The interest associated with capital leases is included in interest expense in the statements of operations.

As of September 30, 2016, $5.2 million of leased assets were capitalized in property and equipment, net of accumulated depreciation.

Operating Leases

The Company leases real estate, construction equipment and office equipment under operating leases with remaining terms ranging from one to five years.

The future minimum lease payments required under capital leases and operating leases, together with the present value of capital leases, as of September 30, 2016 were as follows:

	Capital		Operating
(In thousands)	Lease Obligations		Lease Obligations

Remainder of 2016	$	301	$	653
2017		1,203		2,104
2018		1,203		1,776
2019		1,203		1,501
2020		1,203		942
2021		401		583
Total minimum lease payments	$	5,514	$	7,559
Interest		(376)
Net present value of minimum lease payments		5,138
Less: Current portion of capital lease obligations		(1,062)
Long-term capital lease obligations	$	4,076