11. LEASES

The Company leases various property and equipment under operating lease arrangements. Lease terms generally range from 3 to 15 years with renewal options for extended terms. Certain leases contain rent escalation clauses that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight‑line basis over the minimum lease term. Any lease concessions received by the Company are deferred and recognized as an adjustment to rent expense ratably over the minimum lease term. The Company is required to make additional payments under certain property leases for taxes, insurance and other operating expenses incurred during the operating lease period. Rental expense for the years ended December 31, 2016 and 2015 was $2,996 and $2,875, respectively.

In addition, the Company has entered into capital lease arrangements to finance property and equipment and assumed capital lease obligations in connection with certain acquisitions. The cost basis and accumulated depreciation of assets recorded under capital leases, which are included in property and equipment, are as follows as of December 31, 2016 and 2015:


	December 31,
	2016		2015
Cost	$	1,616	$	1,784
Accumulated depreciation		(129)		(503)
Net book value	$	1,487	$	1,281

Depreciation expense recorded in connection with assets recorded under capital leases was $273 and $263 for the years ended December 31, 2016 and 2015, respectively.

As of December 31, 2016, future minimum lease payments under capital leases and operating leases were as follows:


	Capital		Operating
	Leases		Leases		Total
2017	$	523	$	2,954	$	3,477
2018		523		2,845		3,368
2019		523		2,877		3,400
2020		43		2,202		2,245
2021		—		2,236		2,236
2022 and thereafter		—		10,730		10,730
Total	$	1,612	$	23,844	$	25,456
Less—portion representing interest at a weighted average annual rate of 5.0%		(109)
Principal		1,503
Less—current portion		(465)
Capital lease obligations, noncurrent portion	$	1,038