Lease Obligations

12 Months Ended

Dec. 31, 2015

Note 12 Lease Obligations

The Company leases certain of its facilities and equipment under capitalized leases and other facilities and equipment under non-cancelable operating leases. The leases are generally on a net-rent basis, under which the Company pays taxes, maintenance and insurance. Leases that expire at various dates through 2031 are expected to be renewed or replaced by leases on other properties. Rent expense for the years ended December 31, 2015, 2014 and 2013 aggregated $13,960, $10,427 and $6,891, respectively.

The Company’s future minimum lease payments as of December 31, 2015 under capitalized leases and non-cancelable operating leases, with initial or remaining lease terms in excess of one year, were as follows:


(in thousands)	Capitalized Leases		Operating Leases
Years ending December 31:
2016	$	1,056	$	10,817
2017		1,083		9,131
2018		1,079		7,458
2019		1,075		6,407
2020		1,013		3,898
Later years		8,229		11,432
Total minimum lease payments		13,535	$	49,143
Less: amounts representing imputed interest		(4,819)
Present value of minimum lease payments		8,716
Less: current portion of capitalized lease obligations		(529)
Capitalized lease obligations, excluding current portion	$	8,187

Rock Hill Facility

The Company leases its headquarters and research and development facility pursuant to a lease agreement with Lex Rock Hill, LP. After its initial term ending August 31, 2021, the lease provides the Company with the option to renew the lease for two additional five-year terms. The lease also grants the Company the right to cause Lex Rock Hill, subject to certain terms and conditions, to expand the leased premises during the term of the lease, in which case the term of the lease would be extended. The lease is a triple net lease and provides for the payment of base rent of $669 in 2015, $683 in 2016, $709 in 2017 through 2020 and $723 in 2021. Under the terms of the lease, the Company is obligated to pay all taxes, insurance, utilities and other operating costs with respect to the leased premises. This lease is recorded as a capitalized lease obligation under ASC 840, “Leases.” The implicit interest rate was 6.93% as of December 31, 2015 and 2014.

Other Capital Lease Obligations

The Company leases other equipment with lease terms through August 2018. In accordance with ASC 840, the Company has recorded these leases as capitalized leases. The implicit interest rate ranged from 1.75% to 8.06% at December 31, 2015 and 2014.