Operating Leases

12 Months Ended

Dec. 31, 2015

Note 8. Operating Leases

We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain store locations. 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. The net book value of leasehold improvements at December 31, 2015 was $2,858. We lease certain semi-tractors and pick-ups under operating leases. Future minimum annual rentals for the leased facilities and equipment, and the leased vehicles, are as follows:



	Leased Facilities and Equipment		Leased Vehicles	Total
2016	$	95,789	27,599	123,388
2017	68,833		17,713	86,546
2018	44,949		7,827	52,776
2019	24,486		1,442	25,928
2020	11,492		—	11,492
2021 and thereafter	1,579		—	1,579
	$	247,128	54,581	301,709

Rent expense under all operating leases was as follows:



	Leased Facilities and Equipment		Leased Vehicles	Total
2015	$	105,961	38,178	144,139
2014	$	103,294	35,731	139,025
2013	$	99,483	32,907	132,390

Certain operating leases for pick-up trucks 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 was approximately $61,304. 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 was immaterial at December 31, 2015. 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.