9. Commitments and Contingencies Leases We lease our principal office facility in Portsmouth, NH under a non-cancelable operating lease expiring in 2022. In addition, we have two five year options to further extend the term of this lease. Rent expense is fixed for the base term of the lease, subject to increases each year of 2.4% or five times the consumer price index, whichever is less. We are also required to pay certain incremental operating costs above the base rent. We lease office space in certain other cities, worldwide, under operating leases that expire at various dates. In addition to the base rent, we are typically also responsible for a portion of the operating expenses associated with these facilities. Where operating leases contain rent escalation clauses or certain types of landlord concessions, the effect of these transactions are applied in the determination of the straight-line expense over the lease term. Rent expense, net of sublease income, for the fiscal years ended June 30, 2011, 2010 and 2009 was $3.6 million, $3.6 million, and $3.8 million, respectively. We sublease space in several of our offices. Sublease income for each of the fiscal years ended June 30, 2011, 2010 and 2009 was approximately $0.2 million. Future minimum annual rental commitments under our facilities, equipment, and vehicle leases at June 30, 2011 are as follows: (in thousands) 2012 $ 3,922 2013 3,361 2014 3,021 2015 1,505 2016 1,143 2017 and thereafter 5,929 $ 18,881 Included as a component of the minimum lease commitments above is approximately $0.3 million related to capital lease obligations. Depreciation expense on assets recorded under capital lease arrangements is included as a component of our consolidated depreciation expense. Long Term Service Arrangements We have entered into service agreements, with minimum commitments ranging between two and three years that expire between fiscal years 2012 and 2013, primarily for disaster recovery and hosting services. In addition to the base terms, we have options to exte