29. Commitments

Commitments for expenditures

As at December 31, 2017, the Company had committed to, but not yet incurred, $1,612,000 in capital expenditures for property, plant and equipment and intangible assets (December 31, 2016: $3,197,000).

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 computer equipment, 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:



2018	$	14,763
2019		12,309
2020		9,604
2021		7,422
2022		5,838
Thereafter		47,818
	$	97,754

As at December 31, 2017, the total future minimum sublease payments expected to be received under non-cancellable subleases is $1,936,000 (2016: $577,000; 2015 $1,077,000). The lease expenditure charged to earnings during the year ended December 31, 2017 was $21,956,000 (2016: $20,075,000; 2015: $17,367,000).

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 four 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 or a stated residual value at the end of the lease term.

29. Commitments (continued)

Capital lease commitments – the Company as lessee (continued)

As at December 31, 2017, the net carrying amount of computer and yard equipment under capital leases is $10,692,000 (December 31, 2016: $3,968,000), 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:



2018	$	3,463
2019		3,371
2020		2,407
2021		1,469
2022		595
Thereafter		-
	$	11,305

Assets recorded under capital leases are as follows:



As at December 31, 2017		Cost		Accumulated depreciation		Net book value
Computer equipment	$	8,699	$	(3,604)	$	5,095
Yard and auto equipment		6,493		(896)		5,597
	$	15,192	$	(4,500)	$	10,692



As at December 31, 2016		Cost		Accumulated depreciation		Net book value
Computer equipment	$	8,511	$	(4,990)	$	3,521
Yard and auto equipment		589		(142)		447
	$	9,100	$	(5,132)	$	3,968