Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Operating Leases Future Minimum Payments

The Company leases offices and equipment under noncancelable operating leases, subject to certain provisions for renewal options and escalation clauses. Future minimum payments (including those allocated to an affiliate) under these leases and commitments, net of payments under sublease agreements, are as follows (in thousands):

	Rent payments		Sublease receipts			Total cash outflows
Year ending December 31:
2014	$	10,801	$	(886	)	$	9,915
2015		10,901		(654	)		10,247
2016		10,048		(616	)		9,432
2017		9,244		(510	)		8,734
2018		8,564		(490	)		8,074
Thereafter		84,662		(122	)		84,540
	$	134,220	$	(3,278	)	$	130,942

Schedule of Estimated Fair Value Liability Established for Costs

During 2008, the Company closed several real estate brokerage offices in the Pacific Northwest and Washington, DC areas of the U.S. Subsequent to 2008, the Company closed four additional real estate brokerage offices in the Pacific Northwest and Washington, DC areas. In connection with these office closures, the Company abandoned office leases with remaining lease terms of 11 months to eight years. The Company recorded a liability, initially measured at its estimated fair value, for costs that will continue to be incurred under these contracts for the remaining lease terms with the related charge recorded to “Selling, operating and administrative expenses” in the accompanying Consolidated Statements of Income and Comprehensive Income. Further, during 2010, the Company agreed with the respective landlords to terminate four leases, which were previously abandoned and to reoccupy a previously abandoned office space after the expiration of an active lease. The liability recorded related to these offices was reversed with the related recovery recorded to “Selling, operating and administrative expenses” in the accompanying consolidated financial statements. At December 31, 2013 and 2012, total future cash payments were estimated to be $631,000 and $1,061,000, respectively. This liability will be increased by accreting charges over the terms of the leases via charges to rent expense, based on discount rates ranging from 2.75% to 18.03%, and will be reduced by the actual lease payments made. The following table presents a rollforward of the estimated fair value liability established for these costs, which are attributable to the Company’s Brokerage and Other operating segment, from January 1, 2012 to December 31, 2013 (in thousands):

Accruals at January 1, 2012	$	1,175
Additional abandoned leases		-
Extinguishments		(301	)
Accretion and adjustments		268
Payments		(722	)
Accruals at December 31, 2012		420
Additional abandoned leases		99
Extinguishments		-
Accretion and adjustments		197
Payments		(505	)
Accruals at December 31, 2013	$	211