Leases

We lease substantially all our office space under operating leases and equipment under operating and capital leases. Office leases may include renewal options. In circumstances where the exercise of a renewal option is reasonably assured at the inception of the lease, the renewal period is included in the determination of the lease term. Office leases may also include scheduled rent increases and concessions, such as rent abatements and landlord incentives and tenant improvement allowances. Scheduled rent increases are recognized on a straight-line basis over the lease term and concessions are recorded as deferred rent and are amortized in rent expense on a straight-line basis over the lease term. Certain office leases require payment of real estate taxes and other occupancy costs and these costs are not included in rent expense. Leasehold improvements made at inception or during the lease term are amortized over the shorter of the asset life or the lease term, which may include renewal periods where the renewal is reasonably assured.

Rent expense for the three years ended December 31, 2016 was (in millions):



	2016			2015			2014
Office base rent	$	339.7		$	342.5		$	373.1
Third party sublease rent	(5.6		)	(11.0		)	(11.2		)
Net office rent	334.1			331.5			361.9
Equipment rent	21.0			22.6			27.9
	$	355.1		$	354.1		$	389.8

Future minimum payments under non-cancelable operating leases, reduced by third party sublease rent receivable from existing non-cancelable subleases, and capital leases are (in millions):



	Operating Leases			Capital Leases
2017	$	299.5		$	26.2
2018	232.1			19.3
2019	197.4			14.8
2020	157.5			11.1
2021	131.0			5.7
Thereafter	550.9			1.3
Minimum lease payments	1,568.4			78.4
Sublease rent	(7.8		)
Net rent	$	1,560.6
Interest component				(4.4		)
Present value of minimum lease payments				$	74.0

Property under capital lease and capital lease obligations at December 31, 2016 and 2015 were (in millions):



	2016			2015
Property under capital lease:
Cost	$	184.8		$	154.6
Accumulated depreciation	(110.2		)	(100.4		)
	$	74.6		$	54.2
Capital lease obligations:
Current	$	24.2		$	22.8
Long-term	49.8			35.2
	$	74.0		$	58.0

Depreciation expense for property under capital lease in 2016, 2015 and 2014 was $27.2 million, $26.5 million and $26.1 million, respectively.