Operating Leases

12 Months Ended

Dec. 31, 2014

Leases, Operating [Abstract]

Operating Leases

Note 9. Operating Leases

We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain store locations with initial terms of one to 84 months. Most store locations have initial lease terms of 36 to 48 months. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Any such terms are recognized as rent expense over the term of the lease. Further, the leases do not contain contingent rent provisions. Leasehold improvements, with a net book value of $1,732 at December 31, 2014, on operating leases are amortized over a 36-month period. We lease certain semi-tractors and pick-ups under operating leases. The semi-tractor leases typically have a lease term of 48 to 60 months. The pick-up leases typically have a non-cancelable lease term of approximately one year, with renewal options for up to 72-months. Our average lease term for pick-ups is typically for 28 to 36 months. Future minimum annual rentals for the leased facilities and equipment, and the leased vehicles are as follows:

	Leased Facilities and Equipment		Leased Vehicles	Total
2015	$	92,333	23,991	116,324
2016	66,083		15,336	81,419
2017	40,357		6,682	47,039
2018	21,936		1,177	23,113
2019	8,569		—	8,569
2020 and thereafter	1,922		—	1,922
	$	231,200	47,186	278,386

Rent expense under all operating leases was as follows:

	Leased Facilities and Equipment		Leased Vehicles	Total
2014	$	103,294	35,731	139,025
2013	$	99,483	32,907	132,390
2012	$	96,540	29,039	125,579

Certain operating leases for vehicles contain residual value guarantee provisions which would generally become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. The aggregate residual value guarantee related to these leases is approximately $50,130. We believe the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote other than where we have established an accrual for estimated losses, which is immaterial at December 31, 2014. To the extent our fleet contains vehicles we estimate will settle at a gain, such gains on these vehicles will be recognized when we sell the vehicle.