Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

v2.4.0.8
Commitments and Contingencies
12 Months Ended
Dec. 31, 2013
Commitments and Contingencies  
Commitments and Contingencies

15.                        Commitments and Contingencies

 

Leases

 

The Company rents office space under leases that expire at various dates through 2026.  In the third quarter of 2013, the Company exercised its right to early terminate the Denver and Raleigh office leases in accordance with the provisions of the leases. The total termination fees were $1,142, of which approximately $551 was paid during the third quarter. The remainder of the fee is due in July 2014. The impact of this early termination has been reflected in the lease commitment table below. During the year ended December 31, 2013, the Company recorded $474 (see Note 9) of restructuring charges, net of deferred rent adjustment, in the consolidated statement of operations related to these lease termination fees.

 

Future annual minimum lease commitments under operating leases were as follows:

 

Years ending December 31:

 

 

 

 

 

2014

 

 

 

$

5,987

 

2015

 

 

 

5,592

 

2016

 

 

 

6,540

 

2017

 

 

 

6,125

 

2018

 

 

 

6,166

 

Thereafter

 

 

 

28,323

 

Total

 

 

 

$

58,733

 

 

Rent expense for all operating leases totaled:

 

 

 

Year ended December 31,

 

 

 

2013

 

2012

 

2011

 

 

 

 

 

 

 

 

 

Rent expense

 

$

5,103

 

$

4,008

 

$

2,930

 

 

Purchase Obligations and Indemnifications

 

The Company includes various types of indemnification and guarantee clauses in certain arrangements. These indemnifications and guarantees may include, but are not limited to, infringement claims related to intellectual property, direct or consequential damages and guarantees to certain service providers and service level requirements with certain customers. The type and amount of any potential indemnification or guarantee varies substantially based on the nature of each arrangement. The Company has experienced no previous claims and cannot determine the maximum amount of potential future payments, if any, related to such indemnification and guarantee provisions. The Company believes that it is unlikely it will have to make material payments under these arrangements and therefore has not recorded a contingent liability in the consolidated balance sheets.

 

The Company enters into unconditional purchase obligations arrangements for certain of its services that it receives in the normal course of business. As of December 31, 2013, the Company estimated future minimum unconditional purchase obligations to be incurred in 2014 to be $1,403.

 

Litigation

 

The Company is involved in other litigation arising in the ordinary course of its business. The Company does not believe that the outcome of any of these proceedings, individually or in the aggregate, would, if determined adversely to it, have a material adverse effect on its results of operations, financial condition, cash flows or business.