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COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

Operating Leases

        At December 31, 2013, the Company maintains leases for certain facilities and equipment. The Company has entered into facility agreements, some of which contain provisions for future rent increases. The total amount of rental payments due over the lease term is being charged to rent expense on the straight-line method over the term of the lease. The difference between rent expense recorded and the amount paid is credited or charged to "Deferred rent obligation," which is included in "Accrued liabilities" in the accompanying consolidated balance sheets.

        Minimum future rental commitments under all non-cancelable operating leases are as follows (in thousands):

Year ending December 31,
  Total  

2014

   $ 1,727  

2015

     1,349  

2016

     1,304  

2017

     993  

2018

     715  

Thereafter

     3,027  
       
​ ​ ​ ​ ​

 

   $ 9,115  
       
​ ​ ​ ​ ​
​ ​ ​ ​ ​
       

        Rental expense was $1,248 and $1,144 in 2013 and 2012, respectively.

Severance Benefit Agreements

        The Company has entered into annually renewable severance benefit agreements with key employees which, among other things, provide inducement to the employees to continue to work for the Company during and after any period of a potential change in control of the Company. The agreements provide the employees with specified benefits upon the subsequent severance of employment in the event of change in control of the Company and are effective for 24 months thereafter. The amount of severance payments that could be required to be paid under these contracts, if such events occur, totaled approximately $5,396 and $5,028, respectively as of December 31, 2013 and 2012. In addition, severance benefits include, for some employees, a gross-up payment for excise taxes, if any.

Litigation

        The Company is involved in certain actions that have arisen out of the ordinary course of business. Management believes that resolution of the actions will not have a significant adverse effect on the Company's consolidated financial position or results of operations.