NOTE 11—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, 2012, 2011 and 2010 was approximately $11.3 million, $11.0 million and $9.7 million, respectively. In connection with some of these facility leases, the Company has made security deposits totaling $3.6 million, which are included in other long-term assets in the accompanying Consolidated Balance Sheets.

Future minimum lease obligations, net of sublease income, at December 31, 2012 under all non-cancelable operating leases are as follows (in thousands):

For the Year Ending December 31,	Amount
2013	$	10,465
2014		8,429
2015		7,825
2016		5,128
2017		5,120
Thereafter		27,471
Total	$	64,438

Sublease income is expected to be approximately $0.5 million for the year ended December 31, 2013 and none thereafter.

Non-Cancelable Supply Agreements

As of December 31, 2012, the Company had approximately $0.9 million of non-cancelable inventory supply agreements that are in effect through 2013.

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, 2012, 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.