13. Leases

We maintain operating lease agreements principally for our corporate office space, our call centers, and our operations support and training offices. We lease approximately 264,000 square feet of office space in Franklin, Tennessee, which contains our corporate headquarters and one of our call centers. This lease commenced in March 2008 and expires in February 2023. We also lease office space for our 11 other call center locations for an aggregate of approximately 285,000 square feet of space with lease terms expiring on various dates from 2012 to 2016. Our operations support and training offices contain approximately 114,000 square feet in aggregate and have lease terms expiring from 2012 to 2020.

Our corporate office lease agreement contains escalation clauses and provides for two renewal options of five years each at then prevailing market rates. The base rent for the initial 15-year term ranges from $4.2 million to $6.3 million per year over the term of the lease. The landlord provided a tenant improvement allowance equal to approximately $10.3 million. We record leasehold improvement incentives as deferred rent and amortize them as reductions to rent expense over the lease term.

Most of our operating leases include escalation clauses, some of which are fixed amounts, and some of which reflect changes in price indices. We recognize rent expense on a straight-line basis over the lease term. Certain operating leases contain renewal options to extend the lease for additional periods. For the years ended December 31, 2011, 2010, and 2009, rent expense under lease agreements was approximately $12.7 million, $14.2 million, and $14.5 million, respectively. Our capital lease obligations, which primarily include computer equipment leases, are included in long-term debt and the current portion of long-term debt.

The following table summarizes our future minimum lease payments, net of total sublease income of $1.4 million, under all capital leases and non-cancelable operating leases for each of the next five years and thereafter:

(In $000s)		Capital		Operating
Year ending December 31,		Leases		Leases
2012	$	1,351		$	14,057
2013		1,330			12,237
2014		951			11,026
2015		41			10,035
2016		-			8,434
2017 and thereafter		-			41,338
Total minimum lease payments		3,673		$	97,127
Less amount representing interest		(368	)
Present value of minimum lease payments		3,305
Less current portion		(1,139	)
	$	2,166