The Company leases hangar and office space and certain equipment under noncancelable operating leases and leases certain aircraft and informations systems hardware under noncancelable capital and operating leases. The majority of aircraft leases contain purchase options, either at the end of the lease term or at a stipulated early buyout date. The Company measures capital lease assets and the related obligations initially at an amount equal to the present value at the beginning of the lease term of minimum lease payments during the lease term, excluding executory costs. The Company has made an accounting policy election to exclude the maximum consideration it could be required to pay the lessor in the event of default from the calculation of the present value of the minimum lease payments in measuring the capital lease asset and related obligation, since there is no likely scenario whereby an aircraft lessor would require the Company to pay the full stipulated loss value in the event of a non-performance-related default, and, therefore, this maximum consideration has a remote probability of payment.

As of December 31, 2013, future minimum lease payments under capital and operating leases are as follows (amounts in thousands):

	Capital			Operating
	leases			leases
Year ending December 31:
2014	$	34,684			8,038
2015		32,339			5,839
2016		29,214			3,868
2017		24,688			2,520
2018		18,540			1,589
Thereafter		39,850			23,727

Total minimum lease payments		179,315		$	45,581
Less amounts representing interest		(18,950	)
Present value of minimum capital lease payments		160,365
Less current installments		(29,116	)
	$	131,249

Rent expense relating to operating leases totaled $14,385,000, $13,732,000, and $9,177,000, for the years ended December 31, 2013, 2012, and 2011, respectively.

The Company receives certain allowances for the completion of medical interiors for its leased aircraft. Gains associated with these completion allowances are deferred and amortized over the terms of the leases and are included in other liabilities in the consolidated balance sheets. As of December 31, 2013 and 2012, unamortized completion allowances included in other liabilities totaled $11,140,000 and $19,110,000, respectively.

At December 31, 2013 and 2012, leased property held under capital leases included in equipment, net of accumulated depreciation, totaled approximately $145,620,000 and $217,213,000, respectively. Amortization of leased property held under capital leases is included in depreciation expense.

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References+ Details