11. Commitments and Contingencies Lease Commitments The Company leases office space and equipment under non-cancelable lease agreements expiring at various dates through 2022. Office space leases are subject to escalation based on certain costs incurred by the landlord. Minimum rental commitments as of June 30, 2013 under such operating and capital leases were as follows: Operating Leases Capital Leases (In thousands) Remainder of 2013 $ 920 $ 154 2014 1,828 42 2015 2,088   2016 2,019   2017 2,874   2018 and thereafter 7,255   Minimum lease payments 16,984 196 Less amount representing interest   5 $ 16,984 $ 191 Rental expense was $2.0 million and $1.3 million for the six months ended June 30, 2013 and 2012, respectively, and is included in occupancy expense in the Consolidated Statements of Operations. Rental expense has been recorded based on the total minimum lease payments after giving effect to rent abatement and concessions, which are being amortized on a straight-line basis over the life of the lease. The Company is contingently obligated for standby letters of credit amounting to $1.4 million that were issued to landlords for office space. In 2008, the Company assigned the lease agreement on a leased property to a third party. The Company is contingently liable should the assignee default on future lease obligations through the November 2015 lease termination date. The aggregate amount of future lease obligations under this arrangement was $0.8 million as of June 30, 2013. Employee Matter The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings, if any, utilizing the latest information available. For matters where it is probable that the Company will incur a material loss and the amount can be reasonably estimated, the Company would establish an accrual for the loss. Once established, the accrual would be adjusted to reflect any relevant developments. When a loss contingency is not both probable and estimable, the Company does not establish an accrual. On Jan