Note 11: Commitments and Contingencies
We lease certain facilities under various operating leases. Most of the lease agreements provide us with the option of renewing our leases at the end of the initial lease term, at fair market rates, for periods of up to five years. In most cases, we expect that in the normal course of business facility leases will be renewed or replaced by other leases.
Minimum payments over the next five years under these leases as of May 31, 2013, exclusive of property taxes and insurance, were as follows:
|
2014 |
$ | 719 | ||
|
2015 |
449 | |||
|
2016 |
182 | |||
|
2017 |
100 | |||
|
2018 |
59 | |||
|
|
|
|||
| $ | 1,509 | |||
|
|
|
Rent expense was $1,125, $1,007 and $1,057 for fiscal 2013, 2012 and 2011, respectively.
We are subject to legal proceedings and business disputes involving ordinary routine legal matters and claims incidental to our business. The ultimate legal and financial liability with respect to such matters generally cannot be estimated with certainty and requires the use of estimates in recording liabilities for potential litigation settlements or awards against us. Estimates for losses from litigation are made after consultation with outside counsel. If estimates of potential losses increase or the related facts and circumstances change in the future, we may be required to record either more or less litigation expense. We are not involved in any pending or threatened legal proceedings that we believe could reasonably be expected to have a material adverse effect on our financial condition, results of operations or cash flows.