7. LEASES

Operating Leases:

As of December 31, 2016, the Company leases office space for corporate offices, a distribution facility in Texas, a raw materials warehouse in Maryland, as well as 20 previously corporate-operated Medifast Weight Control Centers under lease terms ranging from five to ten years. The 20 leases include 3 closed Centers and 17 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 in 2014, see Note 11 for exit activity and clinic obligations. Monthly payments under the Medifast Weight Control Centers leases range in price from $1,800 to $4,200. The Company is additionally required to pay property taxes, utilities, insurance and other costs relating to the leased facilities.

The following table summarizes our future minimum rental and lease payments required under non-cancelable original lease terms in excess of one year as of December 31, 2016:


	Operating Leases
2017	$	1,773
2018		296
2019		21
Total minimum lease payments	$	2,090

Total minimum lease payments have not been reduced by minimum sublease rent income of approximately $0.8 million due under future non-cancelable subleases.

The following is a summary of the Company’s rent expense for the years ended December 31, 2016, 2015 and 2014:


	2016		2015		2014

Continuing operations	$	1,276	$	1,506	$	1,460
Discontinued operations		-		(1,002)		7,189
	$	1,276	$	504	$	8,649

For the year ended December 31, 2015, the positive impact to rent expense was due to lease termination agreements that resulted in the reversal of rent obligations estimates that were expensed in 2014. For the year ended December 31, 2014 the discontinued operations rent expense includes an accrual of $4.4 million for continuing obligations for operating leases related to centers closed during the periods.

Equipment lease expense for continuing operations for the years ended December 31, 2016, 2015, and 2014 was $0.7 million, $1.0 million, and $1.2 million, respectively.