Leases

Con-way and its subsidiaries are obligated under non-cancelable leases for certain facilities, equipment and vehicles. Certain leases also contain provisions that allow Con-way to extend the leases for various renewal periods.

Con-way has acquired tractors for Con-way Freight and Con-way Truckload under various capital-lease agreements with lease terms ranging from three to five years and extending into 2015. Under the agreements, Con-way guarantees the residual value of the tractors at the end of the lease term. The stated amounts of the residual-value guarantees have been included in the minimum lease payments below.

A portion of the capital-lease agreements relates to tractors that were previously owned by Con-way Truckload. Under sale-leaseback arrangements involving these tractors, Con-way received sale proceeds of $20.4 million in 2010.

In connection with the capital leases, Con-way reported $77.9 million and $105.3 million of revenue equipment and $33.3 million and $31.9 million of accumulated depreciation in the consolidated balance sheets at December 31, 2012 and 2011, respectively.

Future minimum lease payments with initial or remaining non-cancelable lease terms in excess of one year, at December 31, 2012, were as follows:



(Dollars in thousands)
	Capital Leases			Operating Leases
Year ending December 31:
2013	$	17,441		$	80,022
2014	19,812			57,100
2015	11,683			41,679
2016	—			34,554
2017	—			24,368
Thereafter (through 2027)	—			39,165
Total minimum lease payments	48,936			$	276,888
Amount representing interest	(2,573		)
Present value of minimum lease payments	46,363
Current maturities of obligations under capital leases	(16,008		)
Long-term obligations under capital leases	$	30,355

Future minimum lease payments in the table above are net of $7.1 million of sublease income expected to be received under non-cancelable subleases.

The remaining unamortized gain resulting from past sale-leaseback transactions, $11.7 million at December 31, 2012, is reported in other liabilities and deferred credits in the consolidated balance sheets and will be amortized as a reduction to lease expense through 2018 when the corresponding lease terms expire.

Rental expense for operating leases comprised the following:



(Dollars in thousands)	Years ended December 31,
	2012			2011			2010
Minimum rentals	$	118,797		$	118,810		$	118,838
Sublease rentals	(2,843		)	(2,395		)	(1,526		)
	$	115,954		$	116,415		$	117,312