LEASE COMMITMENTS

The Company leases office facilities, computer equipment and office furniture under various operating leases expiring at various dates through May 2022.

Following is a summary of future minimum payments under operating leases that have initial or remaining non-cancellable lease terms at December 30, 2017 (amounts in thousands):



Fiscal Year	Operating Leases
2018	$	1,879
2019	1,579
2020	1,437
2021	740
2022	17
Thereafter	—
Total minimum lease payments	5,652
Future minimum rentals to be received under non-cancellable subleases	(1,669		)
Minimum lease payments net of amounts to be received under subleases	$	3,983

Total rental expense, net of subtenant rents received, was approximately $1,922,000 and $1,872,000 for fiscal years 2017 and 2016, respectively. For fiscal years 2017 and 2016, $138,000 and $61,000 was recorded in cost of services, respectively, and $1,784,000 and $1,811,000 was recorded in selling, general and administrative expenses, respectively. The Company recorded $328,000 in rental income from subtenants during fiscal year 2017. There was no rental income from subtenants recognized in fiscal 2016. Rents received from subtenants were recorded as an offset to rental expense.

In 2015, the Company took steps to discontinue use of its leased facilities in McLean, Virginia. The space is leased under an operating lease with a term expiring in July 2019 and is comprised of 4,823 square feet. Although the Company has clients in this geographic market, projects are performed from either client sites or other Company locations, and thus the space is not required or used by Company employees, and specifically not used for revenue-generating activities. In March 2017, the Company entered into a sublease for this facility. The sublease does not relieve the Company of its primary obligations under the original lease. We accounted for the discontinuation of use of this property in accordance with FASB ASC 420, “Exit or Disposal Cost Obligations” and as such recorded a liability during fiscal 2015. As of December 30, 2017, a liability of $158,000 is recorded of which $128,000 is recorded in Other accrued liabilities and $30,000 is recorded in Other noncurrent liabilities in the Consolidated Balance Sheets. As of December 31, 2016, a liability of $185,000 is recorded of which $103,000 is recorded in Other accrued liabilities and $82,000 is recorded in Other noncurrent liabilities in the Consolidated Balance Sheets. The expense related to this liability is recorded in Selling, general and administrative expense on the Consolidated Statements of Operations and Comprehensive Loss. The amounts recorded as of December 31, 2016, were calculated using probability-weighted cash flow analysis and represented the present value, calculated using a credit-adjusted risk-free rate, of our remaining costs under the remaining term of the lease, net of estimated subleases we expected to obtain.