7. COMMITMENTS AND CONTINGENCIES Office Facility Lease  The Company leases its office facilities under operating lease agreements that expire from 2012-2021. The terms of the lease agreements provides for rental payments on a graduated basis. The Company recognizes rent expense on a straight-line basis over the lease period. In March 2012, the Company entered into a non-cancelable operating lease agreement to lease office space located in London, England. In April, 2012, the Company entered into a non-cancelable operating lease agreement to lease office space located in San Francisco. In May 2012, the Company expanded its space leased in New York and extended the term of that lease. The future minimum lease payments under these leases totaled approximately $59.0 million as of June 30, 2012. Rental expense was $1.1 million and $0.6 million for the three months ended June 30, 2012 and 2011, respectively, and $1.9 million and $1.1 million for the six months ended June 30, 2012 and 2011, respectively. Legal Proceedings  The Company is subject to legal proceedings arising in the ordinary course of business. Although occasional adverse decisions or settlements may occur, management believes that the final disposition of such matters will not have a material adverse effect on the Company's business, financial position, results of operations or cash flows. In February and March 2010, the Company was sued in two putative class actions on behalf of local businesses asserting various causes of action based on claims that the Company manipulated the ratings and reviews on its platform to coerce local businesses to buy its advertising products. These cases were subsequently consolidated in an action asserting claims for violation of the California Business &amp; Professions Code, extortion and attempted extortion based on the conduct they allege and seeking monetary relief in an unspecified amount and injunctive relief. In October 2011, the court dismissed this action with prejudice. The plaintiffs have appealed to the U.S. C