8. 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.

Rent expense, exclusive of related taxes, insurance, and maintenance costs, for continuing operations totaled approximately $48.5 million, $55.0 million and $58.5 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is reflected in educational services and facilities expense in our consolidated statements of loss and comprehensive loss. Rent expense for discontinued operations, which is included in loss from discontinued operations, was approximately $34.5 million, $54.4 million and $51.8 million for the years ended December 31, 2014, 2013 and 2012, 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 and comprehensive loss. 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 exited space related to our continuing operations for the years ended December 31, 2014, 2013 and 2012 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, 2014	$	4,588	$	4,043	$	(3,783	)	$	(7	)	$	4,841

For the year ended December 31, 2013	$	6,147	$	1,905	$	(6,746	)	$	3,282		$	4,588

For the year ended December 31, 2012	$	4,915	$	2,931	$	(1,699	)	$	—		$	6,147

(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, 2014, 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
2015	$	47,467	$	40,473	$	87,940
2016		41,093		36,273		77,366
2017		36,754		29,403		66,157
2018		35,738		22,077		57,815
2019		27,850		13,116		40,966
2020 and thereafter		35,917		11,009		46,926

Total	$	224,819	$	152,351	$	377,170

Of the remaining $224.8 million of lease payments for continuing operations, $40.3 million relates to our Transitional Group leases and of the remaining $152.4 million lease obligations for discontinued operations, $98.8 million relate to our assets held for sale. See Note 4 “Discontinued Operations” and Note 10 “Restructuring Charges” for further discussion.

As of December 31, 2014, future minimum sublease rental income under operating leases, which will decrease our future minimum lease payments presented above, for continuing and discontinued operations is as follows (dollars in thousands):


	Operating Subleases
	Continuing Operations		Discontinued Operations		Total
2015	$	2,376	$	6,202	$	8,578
2016		981		6,216		7,197
2017		796		6,206		7,002
2018		656		1,955		2,611
2019		674		1,147		1,821
2020 and thereafter		691		376		1,067

Total	$	6,174	$	22,102	$	28,276