NOTE 8. COMMITMENT AND CONTINGENCIES

Future minimum annual rental commitments as of December 31, 2015 under various non-cancellable operating leases for our office facilities, which expire at various dates through 2030, are as follows:

Rental Commitments for Years Ended December 31,
amounts in thousands
2016	$	12,769
2017		12,213
2018		10,327
2019		8,482
2020		8,313
2021-2030		42,173
Total minimum operating lease payments	$	94,277

We are also liable for additional payments to the landlords for certain annual cost increases. Rent expense for the years ended December 31, 2015, 2014 and 2013 was $12.9 million, $13.2 million and $11.5 million, respectively.

In 2013, the State of Connecticut (“the State”) awarded our Company up to $11.5 million ($8.0 million in loans and $3.5 million in grants) to move our corporate headquarters to Stamford, Connecticut. The loan is non-interest bearing, has a term of 10 years and is subject to forgiveness based on our compliance with certain conditions set forth in the agreement with the State. The amount of the loan to be received is dependent on our Company reaching certain milestones for creation of new jobs over a five-year period, and the funds are to be used to offset certain equipment purchases, facility costs, training of employees and other eligible project-related costs. Our Company completed the move to Stamford in September 2013 and received $7.5 million of the award, which is comprised of $6.0 million of the loan and $1.5 million of the grant for reaching the first job milestone. Under the terms of the agreement with the State, if our Company maintains an average of 100 full-time employees in Connecticut over a 12-month period, the State will forgive the initial $6.0 million of the loan. In addition, as soon as our Company achieves a total of 150 full-time employees in Connecticut, we are eligible to receive an additional $1.0 million of the loan and $0.5 million of the grant. On October 20, 2015, our Company received a letter from the State determining that we had achieved both of these milestones for the period starting September 30, 2013 through July 31, 2015. As a result, our Company earned a loan forgiveness credit of $6.0 million with the State and received the additional $1.0 million of the loan and $0.5 million of the grant. Earning of the remaining portions of the grant and forgiveness of any outstanding amounts of the loan is subject to certain conditions, including maintaining the required jobs for an extended period of time. The length of time commitment for forgiveness of the additional $1.0 million of the October 20, 2015 loan has not been met. However, our Company expects to meet all the conditions for the State to forgive the loan. Accordingly, our Company is recognizing the amount of loan and grants received over the period in which offsetting expenses are recognized. Our Company recognized $1.4 million, $1.1 million and $0.3 million for the years ended December 31, 2015, 2014 and 2013. As of December 31, 2015 and December 31, 2014, our Company has deferred revenue of $6.3 million and $6.1 million, respectively, which is included in other liabilities and accounts payable on the Consolidated Balance Sheets.

In the ordinary course of conducting business, our Parent Company’s subsidiaries are involved in various legal proceedings. Most of these proceedings consist of claims litigation involving our Parent Company’s subsidiaries as either: (a) liability insurers defending or providing indemnity for third party claims brought against insureds or (b) insurers defending first party coverage claims brought against them. In general, our Company believes we have valid defenses to these cases. Our Company’s management believes that the ultimate liability, if any, with respect to these legal proceedings, after consideration of provisions made for potential losses and cost of defense, will not be material to our Company’s Consolidated Balance Sheets, Statements of Income and Statements of Cash Flows.