Note 13 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 2028 are expected to be renewed or replaced by leases on other properties.

Rent expense for the years ended December 31, 2018, 2017 and 2016 was $15,809, $14,899 and $13,232, respectively.

The Company’s future minimum lease payments as of December 31, 2018 under capitalized leases and non-cancelable operating leases, with initial or remaining lease terms in excess of one year, were as follows:

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(in thousands)	Capitalized Leases			Operating Leases
Years ending December 31:
2019	$	1,099		$	15,123
2020	1,011			9,153
2021	736			6,997
2022	752			5,847
2023	752			5,095
Later years	5,990			7,707
Total minimum lease payments	10,340			$	49,922
Less: amounts representing imputed interest	(3,294		)
Present value of minimum lease payments	7,046
Less: current portion of capitalized lease obligations	(654		)
Capitalized lease obligations, excluding current portion	$	6,392

Capital Lease Obligations

The Company leases its headquarters and research and development facility located in Rock Hill, SC, pursuant to a lease agreement with 3D Fields, LLC. After its initial term ending January 31, 2021, the lease provides the Company with the option to renew the lease for two additional 5-year terms. The lease also grants the Company the right to cause 3D Fields, LLC, 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 $710 in 2019 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, 2018 and 2017.

The Company leases certain equipment with lease terms through February, 2021. 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, 2018 and 2017.