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Lease Obligations
12 Months Ended
Dec. 31, 2015
Lease Obligations  
Lease Obligations

12.   Lease Obligations

        Net rental expense amounted to approximately $169 million, $218 million and $206 million in the years ended December 31, 2015, 2014 and 2013, respectively. The company's lease obligations relate primarily to office facilities, equipment used in connection with long-term construction contracts and other personal property. Net rental expense in 2015 was lower compared to 2014, primarily due to a decrease in rental equipment and facilities required to support project execution activities in the mining and metals business line of the Industrial & Infrastructure segment as well as the Oil & Gas and Government segments. Net rental expense in 2014 was higher compared to 2013, primarily due to an increase in rental equipment required to support project execution activities in the Oil & Gas segment.

        The company's obligations for minimum rentals under non-cancelable operating leases are as follows:

                                                                                                                                                                                    

Year Ended December 31,

 

(in thousands)

 

 

 

2016

 

$

64,300 

 

2017

 

 

51,100 

 

2018

 

 

35,700 

 

2019

 

 

28,900 

 

2020

 

 

24,600 

 

Thereafter

 

 

75,600 

 

        In November 2015, the company sold two office buildings located in California and subsequently entered into a twelve year lease with the purchaser. The resulting gain on the sale of the property was approximately $58 million, of which $7 million was recognized during the fourth quarter of 2015 and included in corporate general and administrative expense in the Consolidated Statement of Earnings. The remaining gain of approximately $51 million was deferred and will be amortized over the life of the lease on a straight-line basis.