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LEASES

12 Months Ended

Dec. 31, 2012

8. LEASES

Operating and Capital Leases:

As of December 31, 2012, the Company leases office space for corporate offices, a distribution facility in Texas, a raw materials warehouse in Maryland, as well as eighty-seven corporate-operated Medifast Weight Control Centers under lease terms ranging from five to ten years. Monthly payments under the Medifast Weight Control Centers leases range in price from $1,500 to $5,000. The Company is additionally required to pay property taxes, utilities, insurance and other costs relating to the leased facilities.

The Company leases large commercial printers for our printing operation that supports our sales channels and network equipment for information technology that are accounted for as capital leases. The leases extend through December 2016.

The following table summarizes our future minimum rental and lease payments required under non-cancelable lease terms in excess of one year as of December 31, 2012:

Current portion	Operating Leases		Capital Leases
2013	$	4,570,000	$	338,000
2014		4,508,000		248,000
2015		4,265,000		248,000
2016		3,409,000		248,000
2017		1,650,000		-
Thereafter		530,000		-
Total minimum lease payments	$	18,932,000	$	1,082,000
Less amount representing interest				83,000
Present value of minimum lease payments			$	999,000
Current portion				303,000
Long-term portion			$	696,000

Rent expense for the years ended December 31, 2012, 2011, and 2010 was $5,371,000, $3,753,000, and $1,700,000, respectively. Equipment lease expense for the years ended December 31, 2012, 2011, and 2010 was $1,926,000, $1,929,000, and $1,813,000, respectively.