Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company leases branch field offices under a number of operating leases which expire in various years through 2018. These leases generally contain renewal options and require the Company to pay all executory costs (such as property taxes, maintenance and insurance). The Company also leases copiers and other miscellaneous equipment. These leases expire in various years through 2016. The Company is also obligated under capital leases covering certain equipment that expire at various dates through 2016.  At December 31, 2011 and 2010, the net amount of equipment recorded under capital leases was $0.4 million and $0.3 million, respectively.

Following is a schedule of future minimum lease payments for operating leases (with initial or remaining terms in excess of one year) and future minimum capital lease obligations as of December 31, 2011:

Year ending December 31,	Operating Leases		Capital Leases
2012	$	4,342	$	276
2013	3,282		74
2014	2,257		5
2015	1,682		5
2016	1,472		4
Thereafter	2,354		—
Total minimum lease payments	$	15,389	$	364
Less amount representing interest (4.4%)			12
Present value of minimum capital lease payments			352
Less current installments of obligations under capital leases			267
Obligations under capital leases, excluding current installments			$	85

Rental expense under operating leases totaled $4.8 million, $4.8 million and $5.7 million in 2011, 2010 and 2009, respectively.

The Company has employment retention or change in control agreements with the executive officers of the Company for a one year period from the date a change in control occurs as further defined in the agreements.

Included in the results from continuing operations for the year ended December 31, 2011, in cost of operations, is a reduction of cost of $0.5 million relating to a refund from a supplier pertaining to improperly charged sales tax on purchased materials.

On July 11, 2003, the Company received a determination from the Internal Revenue Service that one individual the Company contracted with as an independent contractor, should have been classified as an employee in 2002. This ruling also applies to any other individuals engaged by the Company under similar circumstances. The ruling stated that the Company may not be subject to adverse consequences as the Company may be entitled to relief under applicable tax laws (Section 530 of the Revenue Act of 1978). Management believes that the Company qualifies for relief under Section 530. To date, the Company has not received any further communication from the Internal Revenue Service.

In the past, some state agencies have claimed that the Company improperly classified its health professionals as independent contractors for purposes of state unemployment and/or worker's compensation tax laws and that the Company was therefore liable for taxes in arrears, or for penalties for failure to comply with their interpretation of the laws.  There are no assurances that the Company will not be subject to similar claims in other states in the future.