9. Commitments and Contingencies a. Lease Agreements The Company leases certain facilities under non-cancelable operating leases. Lease agreements may contain lease escalation clauses and purchase or renewal options. The Company recognizes scheduled lease escalation clauses over the course of the applicable lease term on a straight-line basis in the Consolidated Statements of Operations. The future minimum lease payments under non-cancelable operating leases at August 31, 2012 are as follows (in thousands): Fiscal Year Ending August 31, Amount 2013 $ 60,432 2014 42,301 2015 32,166 2016 24,854 2017 20,680 Thereafter 56,569 Total minimum lease payments $ 237,002 Total operating lease expense was approximately $65.3 million, $61.7 million and $50.7 million for fiscal years 2012, 2011 and 2010, respectively. b. Warranty Provision The Company maintains a provision for limited warranty repair of shipped products, which is established under the terms of specific manufacturing contract agreements. The warranty liability is included in accrued expenses on the Consolidated Balance Sheets. The warranty period varies by product and customer industry sector. The provision represents management s estimate of probable liabilities, calculated as a function of sales volume and historical repair experience, for each product under warranty. The estimate is re-evaluated periodically for accuracy. A rollforward of the warranty liability is as follows (in thousands): Amount Balance at August 31, 2009 $ 14,280 Accruals for warranties during the year 3,112 Settlements made during the year (6,564 ) Balance at August 31, 2010 $ 10,828 Accruals for warranties during the year 6,909 Warranty liabilities acquired 3,986 Settlements made during the year (8,209 ) Balance at August 31, 2011 $ 13,514 Accruals for warranties during the year 3,285 Warranty liabilities acquired   Settlements made during the year (5,411 ) Balance at August 31, 2012 $ 11,388 c. Legal Proceedings The Company is party to certain lawsuits in the ordinary course of busines