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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies [Abstract]  
Commitments and Contingencies

13. Commitments and Contingencies

Operating Leases

The Company has entered into operating leases for its executive offices and clinic facilities. In connection with these agreements, the Company incurred rent expense of $20.8 million, $19.4 million and $16.8 million for the years ended December 31, 2012, 2011 and 2010, respectively. Several of the leases provide for an annual increase in the rental payment based upon the Consumer Price Index. The majority of the leases provide for renewal periods ranging from one to five years. The agreements to extend the leases specify that rental rates would be adjusted to market rates as of each renewal date.

The future minimum operating lease commitments for each of the next five years and thereafter and in the aggregate as of December 31, 2012 are as follows (in thousands):

 

 

         

2013

   $ 16,254  

2014

     11,900  

2015

     9,105  

2016

     5,526  

2017

     2,915  

Thereafter

     1,920  
   

 

 

  
    $     47,620  
   

 

 

  

Employment Agreements

At December 31, 2012, the Company had outstanding employment agreements with three of its executive officers. These agreements, which presently expire on December 31, 2014, provide for automatic one year renewals if not terminated on at least 12 months notice. All of the agreements contain a provision for annual adjustment of salaries.

In addition, the Company has outstanding employment agreements with most of the managing physical therapist partners of the Company’s physical therapy clinics and with certain other clinic employees which obligate subsidiaries of the Company to pay compensation of $17.4 million in 2013 and $5.9 million in the aggregate from 2014 through 2017. In addition, most of the employment agreements with the managing physical therapists provide for monthly bonus payments calculated as a percentage of each clinic’s net revenues (not in excess of operating profits) or operating profits.