26. Commitments

Commitments for expenditures

As at December 31, 2015, the Company had committed to, but not yet incurred, $1,820,000 in capital expenditures for property, plant and equipment and intangible assets (December 31, 2014: $884,000).

Operating lease commitments – the Company as lessee

The Company has entered into commercial leases for various auction sites and offices located in North America, Central America, Europe, the Middle East and Asia. The majority of these leases are non-cancellable. The Company also has further operating leases for certain motor vehicles and small office equipment where it is not in the best interest of the Company to purchase these assets.

The majority of the Company‘s operating leases have a fixed term with a remaining life between one month and 20 years with renewal options included in the contracts. The leases have varying contract terms, escalation clauses and renewal rights. There are no restrictions placed upon the lessee by entering into these leases, other than restrictions on use of property, sub-letting and alterations. In certain leases there are options to purchase; if the intention to take this option changes subsequent to the commencement of the lease, the Company re-assesses the classification of the lease as operating.

The future aggregate minimum lease payments under non-cancellable operating leases, excluding reimbursed costs to the lessor, are as follows:



2016	$	10,685
2017		9,857
2018		8,823
2019		6,961
2020		5,776
Thereafter		65,005
	$	107,107

As at December 31, 2015, the total future minimum sublease payments expected to be received under non-cancellable subleases is $1,077,000 (December 31, 2014: $1,802,000). The lease expenditure charged to earnings during the year ended December 31, 2015 was $17,367,000 (2014: $18,139,000; 2013: $17,077,000).

26. Commitments (continued)

Capital lease commitments – the Company as lessee

The Company has entered into capital lease arrangements for computer and yard equipment. The majority of the leases have a fixed term with a remaining life of one month to three years with renewal options included in the contracts. In certain of these leases, the Company has the option to purchase the leased asset at fair market value at the end of the lease term.

As at December 31, 2015, the net carrying amount of computer and yard equipment under capital leases is $2,192,000 (December 31, 2014: $3,331,000), and is included in the total property, plant and equipment as disclosed on the consolidated balance sheets.

The future aggregate minimum lease payments under non-cancellable finance leases are as follows:



2016	$	1,312
2017		500
2018		254
2019		207
2020		-
Thereafter		-
	$	2,273

Assets recorded under capital leases are as follows:



As at December 31, 2015		Cost		Accumulated depreciation		Net book value
Computer equipment	$	6,080	$	(4,132)	$	1,948
Yard and auto equipment		315		(71)		244
	$	6,395	$	(4,203)	$	2,192



As at December 31, 2014		Cost		Accumulated depreciation		Net book value
Computer equipment	$	6,081	$	(2,982)	$	3,099
Yard and auto equipment		264		(32)		232
	$	6,345	$	(3,014)	$	3,331