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 2033. 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, 2018, 2017 and 2016 amounted to $38.0 million, $31.7 million and $29.4 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)
2019	$	39,576
2020	35,484
2021	31,720
2022	32,432
2023	32,979
Thereafter	116,673

Capital Leases

Future minimum capital lease payments as of December 31, 2018 are as follows:



(In thousands)
2019	$	7,665
2020	5,924
2021	4,429
2022	4,451
2023	4,477
Thereafter	9,697
Total minimum lease payments	36,643
Less amount representing interest (at 9%-10%)	(10,126		)
Present value of net minimum future capital lease payments	26,517
Less principal portion of current installments	(5,090		)
Long-term portion of obligations under capital leases	$	21,427