9. LEASES

We lease most of our administrative and educational facilities and certain equipment under non-cancelable operating leases expiring at various dates through 2023. Lease terms generally range from five to ten years with one to two renewal options for extended terms. In most cases, we are required to make additional payments under facility operating leases for taxes, insurance and other operating expenses incurred during the operating lease period.

Certain of our leases contain rent escalation clauses or lease incentives, including rent abatements and tenant improvement allowances. Rent escalation clauses and lease incentives are taken into account in determining total rent expense to be recognized during the term of the lease, which begins on the date we take control of the leased space. Renewal options are considered when determining the overall lease term. In accordance with FASB ASC Topic 840—Leases, differences between periodic rent expense and periodic cash rental payments, caused primarily by the recognition of rent expense on a straight-line basis and tenant improvement allowances due or received from lessors, are recorded as deferred rent obligations on our consolidated balance sheets.

In addition, we have financed the acquisition of certain equipment through capital lease arrangements. The cost basis of the assets recorded under capital leases from continuing operating activities, which are included in property and equipment, approximated $4.5 million, and were fully depreciated as of December 31, 2013. There was no depreciation expense for continuing operations recorded in connection with the assets recorded under capital leases for the year ended December 31, 2013, less than $0.1 million for December 31, 2012, and approximately $0.6 million was recorded for the year ended December 31, 2011.

Rent expense, exclusive of related taxes, insurance, and maintenance costs, for continuing operations totaled approximately $87.5 million, $89.0 million and $92.9 million for the years ended December 31, 2013, 2012 and 2011, respectively, and is reflected in educational services and facilities expense in our consolidated statements of (loss) income and comprehensive (loss) income. Rent expense for discontinued operations, which is included in income from discontinued operations, was approximately $21.9 million, $21.3 million and $27.0 million for the years ended December 31, 2013, 2012 and 2011, respectively.

Remaining Lease Obligations

We have recorded lease exit costs associated with the exit of real estate space for certain campuses related to our continuing operations. These costs are recorded within educational services and facilities expense on our consolidated statements of (loss) income and comprehensive (loss) income. The current portion of the liability for these charges is reflected within other accrued expenses under current liabilities and the long-term portion of these charges are included in other liabilities under the non-current liabilities section of our consolidated balance sheets. Changes in our future minimum lease obligations for the years ended December 31, 2013, 2012 and 2011 were as follows (dollars in thousands):


	Balance, Beginning of Period		Charges Incurred⁽¹⁾		Net Cash Payments			Other⁽²⁾		Balance, End of Period
For the year ended December 31, 2013	$	13,262	$	5,209	$	(9,202	)	$	3,292	$	12,561

For the year ended December 31, 2012	$	12,831	$	4,249	$	(3,818	)	$	—	$	13,262

For the year ended December 31, 2011	$	17,770	$	1,313	$	(6,544	)	$	292	$	12,831

(1)	Includes charges for newly vacated spaces and subsequent adjustments for accretion, revised estimates and variances between estimated and actual charges, net of any reversals for terminated lease obligations.

(2)	Includes existing prepaid rent and deferred rent liability balances for newly vacated spaces that offset the losses incurred in the period recorded.

As of December 31, 2013, future minimum lease payments under operating leases for continuing and discontinued operations are as follows (dollars in thousands):


	Operating Leases
	Continuing Operations		Discontinued Operations		Total
2014	$	86,297	$	14,519	$	100,816
2015		79,602		13,660		93,262
2016		67,870		11,153		79,023
2017		56,878		10,326		67,204
2018		54,978		3,887		58,865
2019 and thereafter		85,206		782		85,988

Total	$	430,831	$	54,327	$	485,158

Of the remaining $430.8 million lease obligations for continuing operations, $79.0 million relates to our Transitional school leases. See Note 11 “Restructuring Charges” for further discussion.

As of December 31, 2013, future minimum sublease rental income under operating leases for continuing and discontinued operations is as follows (dollars in thousands):


	Operating Subleases
	Continuing Operations		Discontinued Operations		Total
2014	$	2,324	$	2,621		4,945
2015		2,939		3,175		6,114
2016		1,649		3,217		4,866
2017		1,577		3,119		4,696
2018		1,356		—		1,356
2019 and thereafter		1,513		—		1,513

Total	$	11,358	$	12,132	$	23,490