Notes to Consolidated Financial Statements The assumptions used as of December 31, 2000, 1999 and 1998 in determining pension cost and liability shown above were as follows: Capital Operating Sublease Lease Lease Income 2001 $ 366 $ 23,807 $ 358 2002 117 19,783 366 2003 81 15,095 355 2004 19 10,973 253 2005 – 7,301 54 Thereafter – 12,053 – Total minimum  lease  payments 583 $ 89,012 $ 1,386 Amounts  representing interest (10) Present value  of net  minimum lease  payments $ 573 2000 1999 1998 Discount rate 6.0% 6.0% 6.0% Annual rate of salary provision 4.0% 4.0% 6.5% Annual rate of return on plan assets 7.0% 7.5% 10.0% 2000 1999 1998 Service cost $ 6,028 $ 6,285 $ 4,994 Interest cost  5,553 5,243 5,554 Expected  return on  plan assets 1,359 (17,810) (9,666) Net amortiza- tion of prior service cost and actuarial (gain)/loss (8,549) 11,690 2,436 Net periodic pension  benefit cost $ 4,391 $ 5,408 $ 3,318 2000 1999 1998 Cash paid  during the  year for: Interest $ 8,290 $ 9,018 $ 10,849 Income taxes $ 4,039 $ 5,418 $ 1,480 EMCOR, 2000 Annual Report 36 Future minimum payments, by year and in the aggregate, under capital leases, non-cancelable operating leases and related sub-leases with initial or remaining terms of one or more years at December 31, 2000 were as follows (in thousands): The following presents information about cash paid for interest and income taxes for the years ended December 31, 2000, 1999 and 1998 (in thousands): EMCOR and its subsidiaries lease land, buildings and equipment under various leases. The leases frequently include renewal  options and require EMCOR to pay for utilities, taxes, insurance and maintenance expenses. EMCOR is subject to regulation with respect to the handling of certain materials used in construction which are classified as hazardous or toxic by Federal, State and local agencies. EMCOR’s practice is to avoid participation in projects principally involving the remediation or removal of such materials. However, where remediation is a required part of contract performance, EMCOR believes it complies with all applicable regulations governing the discharge of material into the environment or otherwise relating to the protection of the environment. EMCOR has a defined contribution retirement plan that  covers its U.S. non-union eligible employees. Contributions to this plan are based on a percentage of the employee’s base compensation. The expense recognized for the years ended December 31, 2000, 1999 and 1998, for the defined contribution plan was $2.9 million, $2.2 million and $1.9 million, respectively. EMCOR contributes to various union pension funds based upon wages paid to union employees of EMCOR. Such contributions approximated $88.9 million, $71.1 million and $57.4 million for the years ended December 31, 2000, 1999 and 1998, respectively. Note L –  Additional Cash Flow Information Note K – Commitments and Contingencies EMCOR is contingently liable to sureties in respect of performance and payment bonds issued by the sureties in  connection with certain contracts entered into by EMCOR’s  subsidiaries in the normal course of their business. EMCOR has agreed to indemnify the sureties for any payments made by  them in respect of such bonds. EMCOR has employment agreements with certain of its executive officers and management personnel. These agreements generally continue until terminated by the executive or EMCOR and provide for severance benefits if terminated. Certain of the agreements provide the employees with certain additional rights if a change of control (as defined) of EMCOR occurs. Rent expense for the years ended December 31, 2000, 1999 and 1998 was $25.4 million, $15.1 million and $12.1 million, respectively. Rent expense for the years ended December 31, 2000, 1999 and 1998 included sublease rental income of $0.6 million, $0.7 million and $0.1 million, respectively. The components of net periodic pension benefit cost for the years ended December 31, 2000, 1999 and 1998 were as follows (in thousands): For measurement purposes, a 2.5% annual rate of increase in the per capita cost of covered pension benefits was assumed for 2000 and 1999.