Note 4. Leases

We lease certain information systems under capital leases. We also lease other assets under operating leases, which primarily consist of real estate leases for 68 of our 218 service center locations at December 31, 2012.

Certain operating leases provide for renewal options. Renewal options and length of renewals vary by lease and are typically offered at their fair rental value. We have not made any residual value guarantees related to our operating leases; therefore, we have no corresponding liability recorded on our Balance Sheets.

Assets under capital leases are included in property and equipment as follows:



	December 31,
(In thousands)	2012			2011
Information systems	$	9,910		$	12,232
Less: Accumulated amortization	(2,270		)	(3,065		)
	$	7,640		$	9,167

Future minimum annual lease payments as of December 31, 2012 are as follows:



(In thousands)	Capital Leases			Operating Leases		Total
2013	$	3,308		$	15,823	$	19,131
2014	—			11,977		11,977
2015	—			7,566		7,566
2016	—			5,707		5,707
2017	—			4,801		4,801
Thereafter	—			19,136		19,136
Total minimum lease payments	3,308			$	65,010	$	68,318
Less: Amount representing interest	(44		)
Present value of capitalized lease obligations	$	3,264

Aggregate expense under operating leases was $19.1 million, $19.5 million and $21.0 million for 2012, 2011 and 2010, respectively. Certain operating leases include rent escalation provisions, which we recognize as expense on a straight-line basis.