Commitments and Contingencies

The Company leases certain facilities and equipment under operating leases. Most leases contain renewal options for varying periods. Future minimum rental payments on such operating leases at December 31, 2017 are as follows:



(Dollar amounts in thousands)	Unrelated parties		Related party		Minimum future rentals to related parties
2018	$	478	$	7,004	$	7,482
2019	139		7,228		7,367
2020	21		2,397		2,418
2021	—		605		605
2022 and thereafter	—		—		—
	$	638	$	17,234	$	17,872

Certain lease agreements contain provisions for future rent increases. The total amount of rental payments due over the lease term is being charged to rent expense on the straight-line method over the term of the lease. The difference between rent expense recorded and the amount paid is recorded as a deferred rent obligation.

Rent expense of office facilities and real estate for the years ended December 31, 2017, 2016 and 2015 amounted to $8.3 million, $8.2 million and $8.1 million, respectively. Also, rent expense for telecommunications and other equipment for the years ended December 31, 2017, 2016 and 2015 amounted to $6.0 million, $6.2 million and $5.4 million, respectively.

EVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations or financial condition of the Company. The Company has identified certain claims in which a loss may be incurred, but in the aggregate the loss would be minimal. For other claims, where the proceedings are in an initial phase, the Company is unable to estimate the range of possible loss for such legal proceedings. However, the Company at this time believes that any loss related to these latter claims will not be material.