7. LEASES:

Capital Leases

The Company leases certain equipment used in the manufacturing process. The future minimum payments under the Company’s capital leases are as follows (in thousands):


2015	$	2,283
2016		169
2017		68
2018		—
2019		—
Thereafter		—

Total minimum lease payments		2,520
Amount representing interest		125

Present value of minimum lease payments with average interest rates of 9.66%		2,395
Current portion of capital lease obligation		2,170

Capital lease obligation, less current portion	$	225

We had a total of $2.4 million in capital lease obligations outstanding at December 31, 2014. The weighted average interest rate on all of the Company’s capital leases is 9.66%. The Company’s capital leases are for certain equipment used in the manufacturing process. Interest expense on discontinued operations was $0.1 million in 2014, $0.3 million in 2013 and $0.4 million in 2012, which was related to a capital lease at our former Bossier, Louisiana facility.

Operating Leases

The Company has entered into various equipment and property leases with terms of ten years or less. Total rental expense from continuing operations for 2014, 2013, and 2012 was $3.2 million, $2.8 million, and $2.9 million, respectively. Certain of the Company’s operating lease agreements include renewals and/or purchase options set to expire at various dates. Future minimum payments as of December 31, 2014 for operating leases with initial or remaining terms in excess of one year are (in thousands):


2015	$	2,557
2016		2,451
2017		2,191
2018		1,067
2019		651
Thereafter		2,491

	$	11,408