COMMITMENTS

12 Months Ended

Dec. 31, 2011

NOTE 10—COMMITMENTS

Operating Leases

The Company leases laboratory, office and manufacturing facilities under non-cancelable operating leases that expire at various times through 2023. Some of these leases contain renewal options ranging from two to five years and escalation clauses. Rent expense related to operating leases for the years ended December 31, 2011, 2010 and 2009 was approximately $11.0 million, $9.7 million and $10.2 million, respectively. In connection with some of these facility leases, the Company has made security deposits totaling $1.8 million, which are included in long-term other assets in the Company’s Consolidated Balance Sheets.

Future minimum lease obligations, net of sublease income, at December 31, 2011 under all non-cancelable operating leases are as follows (in thousands):

For the Year Ending December 31,	Amount
2012	$	8,315
2013		8,344
2014		6,277
2015		6,204
2016		4,418
Thereafter		31,862
Total	$	65,420

Sublease income is expected to be approximately $0.9 million and $0.7 million for the years ended December 31, 2012 and 2013, respectively, and $0 thereafter.

Non-Cancelable Supply Agreements

As of December 31, 2011, the Company had approximately $1.3 million of non-cancelable inventory supply agreements that are in effect through 2012.

Indemnifications

From time to time the Company has entered into indemnification provisions under certain of its agreements with other companies in the ordinary course of business, typically with business partners, customers, and suppliers. Pursuant to these agreements, the Company generally indemnifies, holds harmless, and agrees to reimburse the indemnified parties on a case by case basis for losses suffered or incurred by the indemnified parties in connection with any U.S. patent or other intellectual property infringement claim by any third party with respect to its products. The term of these indemnification provisions is generally perpetual from the time of the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. In addition, the Company has entered into indemnification agreements with its officers and directors. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. As of December 31, 2011, the Company had not accrued a liability for this guarantee, because the likelihood of incurring a payment obligation in connection with this guarantee is remote.

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

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