5. LEASES

Capital Leases. Innotrac has entered into various capital leases for warehouse and computer equipment. The amortization of these assets is included in depreciation and amortization expense. Aggregate future minimum lease payments under these noncancellable capital leases as of December 31, 2011 are as follows (in 000's):

	Capital Leases
2012	$323
2013	170
2014	113
	606
Less amounts representing interest and taxes	(74)
Present value of future minimum lease payments	532
Less current portion	(281)
Capital lease obligations, net of current portion	$ 251

Operating Leases. Innotrac leases office and warehouse space and equipment under various operating leases. The primary office and warehouse operating leases provide for escalating payments over the lease term. Innotrac recognizes rent expense on a straight-line basis over the lease term.

Aggregate future minimum lease payments under noncancellable operating leases with original periods in excess of one year as of December 31, 2011 are as follows (in 000's):

	Operating Leases
2012	9,134
2013	8,534
2014	6,595
2015	3,676
2016…………………………………………………	3,428
Thereafter	2,907
Total minimum lease payments	$34,274

Rent expense under all operating leases totaled approximately $9.5 million and $9.4 million during the years ended December 31, 2011 and 2010, respectively.