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 $73.3 million and $68.9 million of revenue equipment and $50.1 million and $39.0 million of accumulated depreciation in the consolidated balance sheets at December 31, 2014 and 2013, respectively. Additionally, Con-way reported $10.0 million of other equipment and $1.5 million of accumulated depreciation in the consolidated balance sheets at December 31, 2014.

Future minimum lease payments with initial or remaining non-cancelable lease terms in excess of one year, at December 31, 2014, were as follows:



(Dollars in thousands)	Capital Leases			Operating Leases
Year ending December 31:
2015	$	15,223		$	93,412
2016	3,597			70,491
2017	3,597			49,112
2018	3,597			34,148
2019	312			24,518
Thereafter (through 2026)	—			64,743
Total minimum lease payments	$	26,326		$	336,424
Amount representing interest	(1,076		)
Present value of minimum lease payments	25,250
Current maturities of obligations under capital leases	14,663
Long-term obligations under capital leases	$	10,587

The remaining unamortized gain resulting from past sale-leaseback transactions, $7.7 million at December 31, 2014, 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:



	Years ended December 31,
(Dollars in thousands)	2014			2013			2012
Minimum rentals	$	139,491		$	129,902		$	118,797
Sublease rentals	(63		)	(577		)	(2,843		)
Rental expense	$	139,428		$	129,325		$	115,954