Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note J — Commitments and Contingencies

Leases

We lease space for substantially all of our Core U.S. and International stores, certain support facilities and the majority of our delivery vehicles under operating leases expiring at various times through 2021. Certain of the store leases contain escalation clauses for increased taxes and operating expenses. Rental expense was $230.3 million, $221.9 million and $219.0 million for the years ended December 31, 2011, 2010 and 2009, respectively. Capital leases include certain transportation equipment. Future minimum rental payments under operating leases with remaining lease terms in excess of one year at December 31, 2011 are as follows:

Year Ending December 31,	Operating Leases
	(In thousands)
2012 …………………………………………………………………………	$	185,394
2013 …………………………………………………………………………		150,744
2014 …………………………………………………………………………		117,040
2015 …………………………………………………………………………		81,439
2016 …………………………………………………………………………		41,020
Thereafter …………………………………………………………………..		6,671
	$	582,308

Our investment in equipment under capital leases are as follows:
		December 31,
		2011		2010
		(In thousands)
	Equipment under capital lease ………………………………	$	2,773	$	4,656
	Less accumulated amortization …………………………….		(2,689)		(3,803)
	Equipment under capital lease, net ………………………….	$	84	$	853

Litigation

From time to time, we, along with our subsidiaries, are party to various legal proceedings arising in the ordinary course of business. We reserve for litigation loss contingencies that are both probable and reasonably estimable. Legal fees and expenses associated with the defense of all of our litigation are expensed as such fees and expenses are incurred. As of December 31, 2011 and 2010, we had no reserve relating to probable losses for our outstanding litigation. We continue to monitor our litigation exposure, and will review the adequacy of our legal reserves on a quarterly basis.

Guarantee

ColorTyme Guarantees. Our subsidiary, ColorTyme Finance, Inc., is a party to an agreement with Citibank, N.A., pursuant to which Citibank provides up to $25.0 million in aggregate financing to qualifying franchisees of ColorTyme. Under the Citibank agreement, upon an event of default by the franchisee under agreements governing this financing and upon the occurrence of certain other events, Citibank can assign the loans and the collateral securing such loans to ColorTyme Finance, with ColorTyme Finance paying or causing to be paid the outstanding debt to Citibank and then succeeding to the rights of Citibank under the debt agreements, including the right to foreclose on the collateral. Rent-A-Center and ColorTyme Finance guarantee the obligations of the franchise borrowers under the Citibank facility. An additional $20.0 million of financing is provided by Texas Capital Bank under an agreement similar to the Citibank financing, which is guaranteed by Rent-A-Center East, Inc., a subsidiary of Rent-A-Center. The maximum guarantee obligations under these agreements, excluding the effects of any amounts that could be recovered under collateralization provisions, is $45.0 million, of which $21.9 million was outstanding as of December 31, 2011.