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.

Under certain capital-lease agreements, Con-way guarantees the residual value of 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.

In connection with its capital leases, Con-way reported $68.9 million and $77.9 million of revenue equipment and $39.0 million and $33.3 million of accumulated depreciation in the consolidated balance sheets at December 31, 2013 and 2012, respectively.

Future minimum lease payments with initial or remaining non-cancelable lease terms in excess of one year, at December 31, 2013, were as follows:



(Dollars in thousands)
	Capital Leases			Operating Leases
Year ending December 31:
2014	$	21,063		$	94,438
2015	12,934			67,015
2016	1,252			46,839
2017	1,252			30,905
2018	1,252			18,211
Thereafter (through 2026)	312			41,703
Total minimum lease payments	$	38,065		$	299,111
Amount representing interest	(2,195		)
Present value of minimum lease payments	35,870
Current maturities of obligations under capital leases	(19,685		)
Long-term obligations under capital leases	$	16,185

The remaining unamortized gain resulting from past sale-leaseback transactions, $9.3 million at December 31, 2013, is reported in other liabilities and deferred credits in the consolidated balance sheets and will be amortized as a reduction to lease expense through 2024 when the corresponding lease terms expire.

Rental expense for operating leases comprised the following:



(Dollars in thousands)	Years ended December 31,
	2013			2012			2011
Minimum rentals	$	129,902		$	118,797		$	118,810
Sublease rentals	(577		)	(2,843		)	(2,395		)
Rental expense	$	129,325		$	115,954		$	116,415