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Leases, User Charges and Commitments
 12 Months Ended
Dec. 31, 2012
Leases, User Charges and Commitments

NOTE 12. Leases, User Charges and Commitments

Minimum annual lease payments, as of December 31, 2012, under non-cancelable leases, principally for containers, chassis, equipment and real estate as well as other commitments are payable as follows (in thousands):

Future Payments Due:

 

          

Operating

Leases and

         
     Capital
Lease		     Other
Commitments		      Total  

2013

    $ 3,187      $ 30,716       $ 33,903   

2014

      3,187        10,636         13,823   

2015

      3,187        8,314         11,501   

2016

      3,195        6,611         9,806   

2017

      3,187        5,375         8,562   

2018 and thereafter

      11,689        11,074         22,763   
  

 

 

    

 

 

     

 

 

  
   $ 27,632      $ 72,726       $ 100,358   
    

 

 

     

 

 

  

Less: Imputed interest

      (4,218 )      
  

 

 

       

Net capital lease liability

    $ 23,414        
  

 

 

       

Total rental expense included in general and administrative expense, which relates primarily to real estate, was approximately $8.8 million in 2012, $9.9 million in 2011 and $8.0 million in 2010. Many of the real estate leases contain renewal options and escalation clauses which require payments of additional rent to the extent of increases in the related operating costs. We straight-line rental expense in accordance with the FASB guidance in the Leases Topic of the Codification.

We incur rental expense for our leased containers, tractors and trailers that are included in transportation costs and totaled $9.3 million, $9.4 million, and $9.3 million for 2012, 2011 and 2010, respectively.

We incur user charges for use of a fleet of rail owned chassis, chassis under capital lease and dedicated rail owned containers on the Union Pacific and Norfolk Southern railroads which are included in transportation costs. Such charges were $67.0 million, $64.0 million and $54.0 million for 2012, 2011 and 2010, respectively. As of December 31, 2012, we have the ability to return the majority of the containers and pay for the rail owned chassis only when we are using them under these agreements. As a result, no minimum commitments related to these rail owned chassis and containers have been included in the table above.

On December 12, 2012, we exercised our purchase option on 4,097 containers that are currently leased. The purchases, totaling $14.9 million, will occur as the leases expire throughout 2013 and are included in the table above.