(11) COMMITMENTS AND CONTINGENCIES (a) Leases The Company leases facilities under operating lease agreements expiring through November 2031. The Company pays taxes, maintenance and insurance in addition to the lease obligations. The Company also leases certain equipment and automobiles under operating lease agreements expiring at various dates through September 2016. Rent expense for the years ended December 31, 2012, 2011 and 2010 approximated $88.7 million, $85.0 million and $74.5 million, respectively. The Company also leases certain property, plant and equipment under capital lease agreements requiring monthly installment payments through June 2013. Minimum lease payments, which takes into account escalation clauses, are recognized on a straight-line basis over the minimum lease term. Subsequent adjustments to our lease payments due to changes in an existing index, usually the consumer price index, are typically included in our calculation of the minimum lease payments when the adjustment is known. Reimbursements for leasehold improvements are recorded as liabilities and are amortized over the lease term. Lease concessions, in our case, usually a free rent period, are considered in the calculation of our minimum lease payments for the minimum lease term. Future minimum lease payments under noncancellable leases at December 31, 2012 are as follows (in thousands): CAPITAL LEASES OPERATING LEASES Year ending December 31: 2013 $ 10 $ 109,608 2014 0 100,654 2015 0 93,697 2016 0 83,613 2017 0 68,432 Thereafter 0 345,039 $ 10 $ 801,043 (b) Litigation The Company recognizes legal expense in connection with loss contingencies as incurred. The Company s claims and advertising for its toning products including for its Shape-ups are subject to the requirements of, and routinely come under review by regulators including pending inquiries from the U.S. Federal Trade Commission ( FTC ), states  Attorneys General and government and quasi-government regulators in foreign countries. The Company is currently responding to reque