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Commitments and Contingencies
12 Months Ended
Dec. 31, 2011
Commitments and Contingencies

Note 9. Commitments and Contingencies

Operating leases

We rent our facilities and certain equipment and automobiles under non-cancelable operating lease arrangements.   Facility leases expire at various dates through 2017 and thereafter and provide for pre-negotiated fixed rental rates during the terms of the lease.

We have a facility in San Jose, Costa Rica used for the digital planning of our clear aligners and interpretation for our iTero scanners.   The facility comprises approximately 63,000 square feet of manufacturing and office space.   The monthly rent in 2011 for the Costa Rica facility is approximately $87,000.   We renewed the lease in March 2008 for an additional five year term, which commenced in October 2008 and expires in September 2013.

We also have a facility in Juarez, Mexico used to manufacture clear aligners and components of our intra-oral scanners.  This facility comprises of approximately 68,000 square feet of manufacturing and office space with a monthly rent in 2011 of approximately $32,000.   We assumed the lease from International Manufacturing Solutions in December 2008 and will expire in July 2013.

Our European headquarters are located in Amsterdam, the Netherlands. In 2011, the original lease agreement was amended to expand our Amsterdam facility to approximately 26,000 square feet of office space.   This lease will expire in May 2017 and, the monthly rent in 2011 for the Amsterdam facility is approximately $45,000.

Our U.S. headquarters are located in San Jose, California.  The facility comprises of approximately 129,000 square feet used for research and development and administration.   The lease agreement commenced in June 2010 and expires in August 2017.  The monthly rent in 2011 for our corporate headquarters is approximately $150,000.

We recognize rent expense on a straight-line basis over the lease period, and accrued for rent expense incurred but not paid.  Total rent expense was $6.1 million, $4.7 million, and $3.8 million, for the years ended December 31, 2011, 2010 and 2009, respectively.

 

Minimum future lease payments for non-cancelable leases as of December 31, 2011, are as follows (in thousands):

 

Fiscal Year

   Operating leases  

2012

     7,177   

2013

     5,394   

2014

     4,190   

2015

     4,087   

2016

     4,133   

Thereafter

     2,919   
  

 

 

 

Total minimum lease payments

   $ 27,900