2012 Annual Report  Note 20 LEASES $^{ }$Note 21 LEGAL PROCEEDINGS AND CONTINGENCIES  INTELLECTUAL PROPERTY  Plavix  – Australia  As previously disclosed, Sanofi was notified that, in August 2007, GenRx Proprietary Limited (GenRx) obtained regulatory approval  of an application for clopidogrel bisulfate 75mg tablets in Australia. GenRx, formerly a subsidiary of Apotex Inc. (Apotex), has since  changed its name to Apotex. In August 2007, Apotex filed an application in the Federal Court of Australia (the Federal Court) seeking  revocation of Sanofi’s Australian Patent No. 597784 (Case No. NSD 1639 of 2007). Sanofi filed counterclaims of infringement and  sought an injunction. On September 21, 2007, the Federal Court granted Sanofi’s injunction. A subsidiary of the Company was  subsequently added as a party to the proceedings. In February 2008, a second company, Spirit Pharmaceuticals Pty. Ltd., also filed a  revocation suit against the same patent. This case was consolidated with the Apotex case and a trial occurred in April 2008. On  August 12, 2008, the Federal Court of Australia held that claims of Patent No. 597784 covering clopidogrel bisulfate, hydrochloride,  hydrobromide, and taurocholate salts were valid. The Federal Court also held that the process claims, pharmaceutical composition  claims, and claim directed to clopidogrel and its pharmaceutically acceptable salts were invalid. The Company and Sanofi filed notices  of appeal in the Full Court of the Federal Court of Australia (Full Court) appealing the holding of invalidity of the claim covering  clopidogrel and its pharmaceutically acceptable salts, process claims, and pharmaceutical composition claims which have stayed the  Federal Court’s ruling. Apotex filed a notice of appeal appealing the holding of validity of the clopidogrel bisulfate, hydrochloride,  hydrobromide, and taurocholate claims. A hearing on the appeals occurred in February 2009. On September 29, 2009, the Full Court  held all of the claims of Patent No. 597784 invalid. In November 2009, the Company and Sanofi applied to the High Court of  Australia (High Court) for special leave to appeal the judgment of the Full Court. In March 2010, the High Court denied the Company  and Sanofi’s request to hear the appeal of the Full Court decision. The case has been remanded to the Federal Court for further  proceedings related to damages. It is expected the amount of damages will not be material to the Company.  65  Although the Company believes it has substantial defenses in these matters, there can be no assurance that there will not be an  increase in the scope of pending matters or that any future lawsuits, claims, government investigations or other legal proceedings will  not be material. Unless otherwise noted, the Company is unable to assess the outcome of the respective litigation nor is it able to  provide an estimated range of potential loss. Furthermore, failure to enforce our patent rights would likely result in substantial  decreases in the respective product sales from generic competition.  The Company and certain of its subsidiaries are involved in various lawsuits, claims, government investigations and other legal  proceedings that arise in the ordinary course of business. The Company recognizes accruals for such contingencies when it is probable  that a liability will be incurred and the amount of loss can be reasonably estimated. These matters involve patent infringement,  antitrust, securities, pricing, sales and marketing practices, environmental, commercial, health and safety matters, consumer fraud,  employment matters, product liability and insurance coverage. Legal proceedings that are material or that the Company believes  could become material are described below.  Minimum rental commitments for non-cancelable operating leases (primarily real estate and motor vehicles) in effect at December 31,  2012, were as follows:  Operating lease expense was $142 million in 2012, $136 million in 2011 and $145 million in 2010. Sublease income was not material  for all periods presented.  Years Ending December 31,  Dollars in Millions 2013  $  167 2014   152 2015   130 2016   123 2017   76 Later years   108 Total minimum rental commitments  $  756