Lease Commitments

12 Months Ended

Dec. 31, 2012

Lease Commitments/Commitments and Contingencies [Abstract]

LEASE COMMITMENTS

(6) LEASE COMMITMENTS

PRGX is committed under noncancelable lease arrangements for facilities and equipment. Rent expense, excluding costs associated with the termination of noncancelable lease arrangements, was $6.2 million in 2012, $6.7 million in 2011 and $6.2 million in 2010.

We have subleased approximately 58,000 square feet of our principal executive office space to independent third parties. The sublease rental income we earn is less than the lease payments we make. We also accrue future rental obligations relating to leases for which we no longer are utilizing the office space. At December 31, 2012, our liabilities relating to these lease obligations were $2.0 million, of which we have included $1.1 million in “Accounts payable and accrued expenses” and $0.9 million in “Other long-term liabilities” in our Consolidated Balance Sheet. We adjust the fair value of the remaining lease payments, net of sublease income, based on payments we make and sublease income we receive. We include accretion of this liability related to discounting in rent expense.

We have entered into several operating lease agreements that contain provisions for future rent increases, free rent periods or periods in which rent payments are reduced (abated). We charge the total amount of rental payments due over the lease term to rent expense on the straight-line, undiscounted method over the lease terms.

Future minimum lease payments under noncancelable operating leases (both gross and net of any sublease income) are as follows (in thousands):

Year Ending December 31,	Gross		Sublease Income			Net
2013	$	8,127	$	(847	)	$	7,280
2014		7,375		(863	)		6,512
2015		1,590		—			1,590
2016		971		—			971
2017		476		—			476
Thereafter		—		—			—
Total payments	$	18,539	$	(1,710	)	$	16,829