Leases

Operating Leases

Certain subsidiaries of the Company lease office space and equipment under long-term non-cancelable operating lease agreements which expire at various dates through 2027. The leases generally provide for fixed annual rentals plus certain other costs or credits. Costs associated with such operating leases are recognized on a straight-line basis over the initial lease term. The difference between rent expense and rent paid is recorded as deferred rent. Rent expense for the years ended December 31, 2017, 2016 and 2015 amounted to $31.7 million, $29.4 million and $25.8 million, respectively.

The future minimum annual payments for the Company's operating leases (with initial or remaining terms in excess of one year) during the next five years and thereafter, at rates now in force are as follows:



(In thousands)
2018	$	28,895
2019	27,167
2020	25,539
2021	23,135
2022	24,852
Thereafter	105,153

Capital Leases

Future minimum capital lease payments as of December 31, 2017 are as follows:



(In thousands)
2018	$	7,901
2019	7,033
2020	5,983
2021	4,511
2022	4,539
Thereafter	14,447
Total minimum lease payments	44,414
Less amount representing interest (at 8.2%-12%)	(13,290		)
Present value of net minimum future capital lease payments	31,124
Less principal portion of current installments	(4,847		)
Long-term portion of obligations under capital leases	$	26,277