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):

2016	$	381
2017		280
2018		209
2019		188
2020		92
Thereafter		-
Total minimum lease payments		1,150
Amount representing interest		(92	)
Present value of minimum lease payments with average interest rates of 4.87%		1,058
Current portion of capital lease obligation		340
Capital lease obligation, less current portion	$	718

We had a total of $1.1 million in capital lease obligations outstanding at December 31, 2015. The weighted average interest rate on all of the Company’s capital leases is 4.87%. The Company’s capital leases are for certain equipment used in the manufacturing process. Interest expense on discontinued operations was zero in 2015, $0.1 million in 2014, and $0.3 million in 2013, 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 2015, 2014, and 2013 was $3.2 million, $3.2 million, and $2.8 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, 2015 for operating leases with initial or remaining terms in excess of one year are (in thousands):

2016	$	2,664
2017		2,425
2018		1,309
2019		893
2020		790
Thereafter		1,832
	$	9,913