Lease Obligations

12 Months Ended

Dec. 31, 2018

12. Lease Obligations

From time to time, the Company enters into leasing arrangements for real estate, vehicles and construction equipment. In 2017, the Company entered into master leasing arrangements for vehicles and construction equipment. Some of the leases entered into under these agreements met the requirements for capitalization and were recorded as capital leases, while others were treated as operating leases. As of December 31, 2018, 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 portion of capital lease obligations or capital lease obligations, net of current maturities, as appropriate. The capital lease assets are amortized on a straight-line basis over the life of the lease or, if shorter, the life of the leased asset, 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

December 31, 2018

, the Company had approximately $

2.7

million of capital lease obligations outstanding, $

1.1 million of which was classified as a current liability.

As of

December 31, 2018

and

2017

, $

2.6

million and $

3.7 million, respectively, of leased assets were capitalized in construction equipment, net of accumulated depreciation. Additional information related to property and equipment is provided in Note 6 — Property and Equipment to the Financial Statements.

Operating Leases

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

Rent expense includes lease payments as well as rent on items that are rented under cancellable rental agreements. Total rent expense for the years ended December 31, 2018, 2017 and 2016, was $60.5 million, $44.6 million and $44.9 million, respectively.

The future minimum lease payments required under capital leases, less interest, and future minimum lease payments required under operating leases as of December 31, 2018 were as follows:

(In thousands)	Capital Lease Obligations			Operating Lease Obligations
2019	$	1,185		$	4,829
2020		1,185			3,754
2021		365			2,971
2022		—			2,379
2023		—			1,335
Thereafter		—			2,127
Total minimum lease payments	$	2,735		$	17,395
Interest		(102	)
Net present of minimum lease payments		2,633
Less: Current portion of capital lease obligations		1,119
Long-term capital lease obligations	$	1,514

Certain subsidiaries of the Company have operating leases for facilities from third party companies that are owned, in whole or part, by employees of the subsidiaries. The terms and rental rates of these leases are at market rental rates. As of December 31, 2018, the minimum lease payments required under these leases totaled approximately $2.8 million, which is to be paid over the next 4.5 years.