Note K — Leases

We lease certain real estate and equipment under numerous lease agreements, most of which contain some renewal options. The total rent expense applicable to operating leases was $17.6 million, $21.0 million and $23.0 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Step rent provisions and escalation clauses, capital improvement funding, rent holidays and other lease concessions are taken into account in computing minimum lease payments. We recognize the minimum lease payments on a straight-line basis over the minimum lease term.

The future minimum rental commitments for all non-cancelable operating leases with terms in excess of one year as of December 31, 2012 are as follows:

In thousands
2013	$	15,689
2014	12,762
2015	7,884
2016	5,510
2017	3,937
After 2017	3,491
	$	49,273

We also lease certain equipment and software under capital leases. Our capital lease obligations at year-end were as follows:

	December 31,
In thousands	2012		2011
Current portion of capital leases	$	369	$	402
Long-term portion of capital leases	302		305
Total capital lease obligations	$	671	$	707

The future minimum lease payments for all capital leases operating as of December 31, 2012 are as follows:

In thousands
2013	$	369
2014	212
2015	73
2016	16
2017	1
After 2017	0
	$	671