Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

11.    Commitments and Contingencies

Leases

The Company conducts all of its operations in leased facilities and leases certain equipment which have minimum lease obligations under noncancelable operating leases. Certain of these leases contain rent escalations based on specified percentages. Most of the leases contain renewal options and require payments for taxes, insurance and maintenance. Rent expense is charged to operations as incurred except for escalating rents, which are charged to operations on a straight-line basis over the life of the lease.

A summary of rental expense for the three years ended December 31, 2012, 2011, and 2010, is presented below, as well as the future minimum lease commitments under noncancelable operating leases having an initial term of more than one year (in thousands):

Summary of rental expense	2012			2011			2010
Minimum rentals	$	8,160		$	8,914		$	9,088
Less: Sublease rentals		(1,100	)		(868	)		(938	)
Rental expense	$	7,060		$	8,046		$	8,150

Summary of future lease commitments
2013		7,179
2014		6,469
2015		5,275
2016		5,003
2017		4,831
Thereafter		8,491
Minimum payments required (a)	$	37,248

(a) Minimum payments have not been reduced by sublease rentals of $1,919 due in the future under noncancelable subleases.

Legal Matters

The Company is involved, from time to time, in litigation and proceedings arising out of the ordinary course of business. Legal costs for services rendered in the course of these proceedings are charged to expense as they are incurred. The Company is involved in a number of governmental interactions primarily related to the commercialization of our PPM service. There was no liability for contingencies recorded on the balance sheet as of December 31, 2012. A contingent loss liability in the amount of $0.4 million for a claim was recorded in accrued expenses and other current liabilities on the Company’s consolidated balance sheet as of December 31, 2011. A $0.4 million settlement was paid by the Company during the first quarter ended March 31, 2012 related to this claim.