Interest expense was $10,120, net of amounts capitalized of $100 in 2000. Interest expense was $8,065, net of amounts capitalized of $163 in 1999. Interest expense was $4,835, net of amounts capitalized of $1,554, in 1998.  The Company leases certain hardware and software related to a new company-wide enterprise resource planning system and other equip- ment. The future minimum lease payments under these capital leases and the present value of the minimum lease payments as of December 31, 2000, are as follows: The Company has entered into various equipment leases with terms of eight years or less. Total rental expense for 2000, 1999 and 1998 was $1,886, $868 and $967, respectively. Future minimum payments for operating leases with initial or remaining terms in excess of one year are: On September 26, 2000, the Company completed a sale-leaseback of certain manufacturing equipment for $14.4 million. The length of the lease is eighty-four months and includes options beginning after the third year to terminate, purchase or continue to rent through the term length. The Company has a defined contribution retirement plan that covers substantially all of its employees and provides for Company matches of up to 50% of employee contributions to the plan, subject to certain limitations. The Company also has two noncontributory defined ben- efit plans, which cover substantially all employees at its Denver, Colorado facility. Benefits under the union pension plan are based upon a flat benefit formula, while benefits under the salaried benefit plan are based upon a final pay formula. The funding policy for each noncon- tributory defined benefit plan is based on current plan costs plus amortization of the unfunded plan liability. The two noncontributory defined benefit plans are frozen and in the process of being terminated. All current employees covered by these plans are now covered by the defined contribution retirement plan. Total expense for all retirement plans in 2000, 1999 and 1998 was $554, $513 and $533, respectively.  The Company has an Employee Stock Purchase Plan (the “ESPP”), which allows employees of the Company to purchase shares of the Com- pany’s common stock through accumulated payroll deductions. Participating employees may elect to contribute up to 10% of their eligible compensation, subject to certain limitations, during each pay period to the ESPP. The ESPP provides for two semi-annual offering peri- ods beginning May 1 and November 1 of each year. Participant funds are accumulated during the offering period and used to automatically purchase shares of the Company’s common stock at 85% of the lower of the fair market value of such stock at the beginning of the offer- Northwest Pipe Company | 21 11. Stock-Based Compensation Plans: Employee Stock Purchase Plan 10. Retirement Plans: Operating Leases 9. Leases: Capital Leases 2001 $ 1,103 2002 1,082 2003 1,082 2004 936 2005 195 Total minimum lease payments 4,398 Less – Amount representing interest 700 Present value of minimum lease payments with interest rates of 7.9% – 10.75% 3,698 Current portion of capital lease 820 Capital lease obligation, less current portion $ 2,878 2001 $ 2,991 2002 2,918 2003 2,794 2004 2,740 2005 2,606 Thereafter 5,731 $ 19,780