COMMITMENTS AND CONTINGENCIES

We lease certain equipment, manufacturing, warehouse and office space under non-cancellable operating leases expiring through 2022 under which we are responsible for related maintenance, taxes, and insurance. Future minimum non-cancellable lease commitments are as follows (in thousands):



For the year ending December 31,	Minimum Lease Commitments		Sublease Payments (1)		Net Lease Commitments
2018	$	1,259	$	428	$	831
2019	1,127		399		728
2020	960		267		693
2021	789		134		655
2022 & thereafter	309		—		309
Total contractual obligations	$	4,444	$	1,228	$	3,216

(1) Represents the amount of income expected from sublease agreements executed in 2017 for our former New York, New York and Arlington, Virginia offices.

Certain leases included above contain escalation clauses and, as such, rent expense was recorded on a straight-line basis over the term of the lease. Net rent expense from continuing operations was $1.2 million, $1.2 million, and $0.8 million for the years ended December 31, 2017, 2016, and 2015, respectively.

On December 22, 2014, a former employee filed a lawsuit against us in the Superior Court of the State of California, County of San Diego, known as Merl Toyer v. Energy Focus, Inc., et al., alleging wrongful termination and other claims related to his employment with us. We subsequently removed the case to the United States District Court for the Southern District of California. On May 1, 2015, we entered into a settlement agreement with the plaintiff, which assigned no culpability to any party and provided for a payment by us in exchange for full settlement and release of his claims. As of June 30, 2015, the total settlement amount of $0.3 million had been paid to the plaintiff. In September 2015, we received $0.2 million as reimbursement from our insurance company for the settlement claim. For the year ended December 31, 2015, we had income of $0.2 million from the insurance reimbursement and expense of $0.2 million, net of the insurance settlement, respectively, included in the Consolidated Statements of Operations under the caption, “Selling, general, and administrative.”