Leases, User Charges and Commitments

12 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

NOTE 11. Leases, User Charges and Commitments

Minimum annual capital and operating lease payments, as of December 31, 2015, under non-cancelable leases, principally for containers, chassis, other equipment and real estate, as well as other commitments are payable as follows (in thousands):

Future Payments Due:

				Operating
				Leases and
	Capital			Other
	Lease			Commitments		Total
2016	$	3,182		$	8,883	$	12,065
2017		3,173			4,992		8,165
2018		3,173			2,841		6,014
2019		3,173			1,455		4,628
2020		3,182			1,405		4,587
2021 and thereafter		1,845			5,003		6,848
	$	17,728		$	24,579	$	42,307
Less: Imputed interest		(1,821	)
Net capital lease liability	$	15,907

Total rental expense included in general and administrative expense, which relates primarily to real estate, was approximately $8.0 million in 2015, $8.1 million in 2014 and $10.1 million in 2013. 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 $11.9 million, $13.1 million, and $10.2 million for 2015, 2014 and 2013, 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 $74.3 million, $67.8 million and $69.1 million for 2015, 2014 and 2013, respectively. As of December 31, 2013, 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.

In addition to the commitments above, in December 2015, we committed to acquire 1,000 53’ containers. We expect the total purchase price of these containers to be approximately $9 million. We expect to take delivery of the equipment between February and April 2016. We are still deciding whether we will lease the containers or finance the purchase with secured fixed rate debt.