Commitments and contingencies

12 Months Ended

Dec. 31, 2012

Commitments and contingencies

Note 11 — Commitments and contingencies

The Company leases its corporate offices in Farmington Hills, Michigan. The lease agreement, amended December 30, 2011, expires on December 31, 2019. The Company records rent expense on a straight-line basis equal to the average rent payment during the term of the lease. The lease agreement includes two planned space expansions, the first occurred in the first quarter of 2012 and the second will occur during the second quarter of 2013.

The Company leases a materials research facility in Azusa, California for use in the advanced TED material program. During 2012, Gentherm exercised an option to extend the Azusa building lease by an additional thirty six month period commencing on the expiration of the original lease term, September 30, 2012.

The Company leases a technical research facility in Irwindale, California. The Irwindale lease agreement expires on September 30, 2013.

The Company entered into a new lease agreement for a technical research facility in Azusa, California commencing July 1, 2012 and is scheduled to end July 31, 2017. The purpose for leasing this facility, which is less than half the size of the existing Irwindale facility, is to consolidate research and development activities expected remain in California into a smaller, more efficient space.

W.E.T. maintains a global operational structure with manufacturing sites close to its key customers. W.E.T. leases four facilities in North America, a customer service and research center located in Windsor, Canada that expires on February 14, 2020, a warehouse facility located in Del Rio, Texas that expires on June 15, 2015, and two production sites located in Acuña, Mexico that expire on June 30, 2015 and December 30, 2022. In Asia, W.E.T. leases a warehouse in Ulsan, South Korea that expires on October 31, 2013, a customer service center in Shanghai, China that expires on October 31, 2015 and a newly leased manufacturing facility in Shen Zhen, China that expires on July 19, 2017. W.E.T. also leases a small office in Ta’Xbiex, Malta that expires on March 31 2013 for corporate shared service activities.

The Company also leases certain equipment, such as copy machines, and automobiles under operating leases which expire at various times over the next five years.

Rent expense under all of the Company’s operating leases was $5,996, $3,243 and $1,300 for 2012, 2011 and 2010, respectively.

The schedule of future minimum lease payments under all operating leases is as follows:

Year
2013	$	6,309
2014		3,970
2015		3,282
2016		2,840
2017		1,673
2018 or later		2,234
Total	$	20,308

As discussed in Note 2, W.E.T. purchased the rights and ownership of certain intellectual property from Johnson Controls for $7,000. W.E.T. is required to make nine quarterly installment payments to Johnson Controls beginning September 30, 2012. W.E.T. expects to make the following payments to Johnson Controls over the next two years:

Year
2013	$	1,627
2014		1,298
Total	$	2,925

As of December 31, 2012, installment payments expected to be made next year are included in accrued liabilities and payments expected to be made in 2014 are included in other liabilities.

We are subject to litigation from time to time in the ordinary course of our business, however there is no current material pending litigation to which we are a party and no material legal proceeding was terminated, settled or otherwise resolved during the fiscal year ended December 31, 2012, other than the litigation related to the Domination and Profit and Loss Transfer described in Note 3.