Lease Agreements

12 Months Ended

Dec. 31, 2016

The Company has operating and capital leases covering certain warehouse and office facilities, equipment, automobiles and trucks, with the lapse of time as the basis for all rental payments.

The Company has determined that for accounting purposes its lease of its operating facility in Janesville, Wisconsin is a build-to-suit lease. During the construction of this facility, which concluded in the fourth quarter of 2015, the Company assumed certain risks of certain construction cost overages and was, therefore, deemed to be the owner of the facility during the construction period. All costs of construction related to this facility are recognized as property, plant and equipment, with a related build-to-suit liability.

Subsequent to the completion of construction, the Company did not qualify for sale-leaseback accounting because of provisions in the lease which constituted prohibited continuing involvement. As a result, the Company will amortize the build-to-suit liability over the lease term and depreciate the building over the lease term. The Company has reflected $12,305 and $13,237 as build-to-suit liability in the Consolidated Balance Sheets as of December 31, 2016 and 2015, respectively.

Total gross value of property, plant and equipment under capital leases was $524 and $2,109 in 2016 and 2015, respectively.

Future minimum rental payments under leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2016 are as follows:



	Capital Leases		Operating Leases		Built-to-Suit Lease
2017	$	96	$	8,291	$	—
2018	—		8,073		1,180
2019	—		6,295		1,203
2020	—		5,545		1,227
2021	—		5,224		1,252
Later years	—		16,545		12,392
Total future minimum rental payments	$	96	$	49,973	$	17,254

Total rental payments charged to expense were $9,175 in 2016, $11,812 in 2015, and $12,037 in 2014. Lease extrication charges of $6,038, $444 and $186 associated with restructuring activities were charged to expense in 2016, 2015 and 2014, respectively, within restructuring expense (income) in the Consolidated Statements of Operations and Comprehensive Loss.