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Commitments and contingencies
 12 Months Ended
Dec. 31, 2014
Commitments and contingencies  
Commitments and contingencies

 

28.  Commitments and contingencies

 

Operating lease commitments

 

The Group leases office, fulfillment centers and bandwidth under non-cancelable operating lease agreements. The rental and bandwidth leasing expenses were RMB419,235, RMB621,629 and RMB1,084,264 for the years ended December 31, 2012, 2013 and 2014, respectively, and were charged to Consolidated Statements of Operations and Comprehensive Loss when incurred.

 

Future minimum lease payments under non-cancelable operating lease agreements with initial terms of one year or more consist of the following:

 

 

 

Office and fulfillment
centers rental

 

Bandwidth
leasing

 

Total

 

 

 

RMB

 

RMB

 

RMB

 

 

 

 

 

 

 

 

 

2015

 
655,815 

 
210,815 

 
866,630 

 

2016

 
320,434 

 
77,640 

 
398,074 

 

2017

 
191,118 

 
71,472 

 
262,590 

 

2018

 
135,168 

 
71,472 

 
206,640 

 

2019

 
109,672 

 
71,472 

 
181,144 

 

2020 and thereafter

 
176,299 

 
44,063 

 
220,362 

 

 

 
1,588,506 

 
546,934 

 
2,135,440 

 

 

Capital commitments

 

The Group’s capital commitments primarily relate to commitments on construction of office building and warehouses. Total capital commitments contracted but not yet reflected in the consolidated financial statements amounted to RMB669,298 as of December 31, 2014. All of these capital commitments will be fulfilled in the following years according to the construction progress.

 

Legal proceedings

 

From time to time, the Group is subject to legal proceedings and claims in the ordinary course of business. Third parties assert patent infringement claims against the Group from time to time in the form of letters, lawsuits and other forms of communication. In addition, from time to time, the Group receives notification from customers claiming that they are entitled to indemnification or other obligations from the Group related to infringement claims made against them by third parties. Litigation, even if the Group is ultimately successful, can be costly and divert management’s attention away from the day-to-day operations of the Group.

 

The Group records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Group reviews the need for any such liability on a regular basis. The Group has not recorded any material liabilities as of December 31, 2012, 2013 and 2014.