7. LEASES

Operating and Capital Leases:

As of December 31, 2014, the Company leases office space for corporate offices, a distribution facility in Texas, a raw materials warehouse in Maryland, as well as 77 leases for previously corporate-operated Medifast Weight Control Centers under lease terms ranging from five to ten years. The 77 leases include 3 Centers closed in December 2013, 34 Centers that were closed in December 2014, and 40 leases for Centers that were sold to franchise partners during 2014 and entered into sublease agreements with the franchisees. The Company accrued for the remaining lease obligations net of any sublease income, see Note 13 for exit activity and clinic obligations. Monthly payments under the Medifast Weight Control Centers leases range in price from $1,500 to $5,000. The Company is additionally required to pay property taxes, utilities, insurance and other costs relating to the leased facilities.

The Company leases large commercial printers for our printing operation that supports our sales channels and network equipment for information technology that are accounted for as capital leases. The leases extend through December 2016.

The following table summarizes our future minimum rental and lease payments required under non-cancelable lease terms in excess of one year as of December 31, 2014:

	Operating Leases		Capital Leases
2015	$	4,471,000	$	248,000
2016		3,633,000		248,000
2017		1,967,000		-
2018		488,000		-
2019		71,000		-
Total minimum lease payments	$	10,630,000	$	496,000
Less amount representing interest				22,000
Present value of minimum lease payments			$	474,000
Current portion				232,000
Long-term portion			$	242,000

Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $3.8 million due under future non-cancelable subleases.

The following is a summary of the Company’s rent expense for the years ended December 31, 2014, 2013 and 2012:

	2014		2013		2012

Continuing Operations	$	1,460,000	$	1,400,000	$	1,415,000
Discontinued Operations		7,189,000		5,233,000		3,956,000
	$	8,649,000	$	6,633,000	$	5,371,000

Included in the discontinued operations rent expense is an accrual of $4.4 million and $1.1 million for the periods ended December 31, 2014 and 2013, respectively for continuing obligations for operating leases related to centers closed during the periods.

Equipment lease expense for continuing operations the years ended December 31, 2014, 2013, and 2012 was $1.2 million, $1.4 million, and $1.8 million, respectively.