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Commitments and Contingencies
 9 Months Ended
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
As of September 30, 2014, the Company’s material contractual obligations were as follows (in thousands):
 
Total
 
Remainder of 2014
 
2015
 
2016
 
2017
 
2018
 
Thereafter
Contractual obligations (1)
 

 
 

 
 

 
 

 
 

 
 

 
 

Imputed financing obligation (2)
$
35,873

 
$
1,486

 
$
6,011

 
$
6,156

 
$
6,302

 
$
6,447

 
$
9,471

Leases and other contractual obligations
10,809

 
3,659

 
3,740

 
1,727

 
1,343

 
340

 
—

Software licenses (3)
10,209

 
2,845

 
5,616

 
1,748

 
—

 
—

 
—

Acquisition retention bonuses (4)
70

 
—

 
70

 
—

 
—

 
—

 
—

Convertible notes
138,000

 
—

 
—

 
—

 
—

 
138,000

 
—

Interest payments related to convertible notes
6,211

 
—

 
1,553

 
1,553

 
1,553

 
1,552

 
—

Total
$
201,172

 
$
7,990

 
$
16,990

 
$
11,184

 
$
9,198

 
$
146,339

 
$
9,471

_________________________________________
(1)
The above table does not reflect possible payments in connection with uncertain tax benefits of approximately $19.7 million including $17.9 million recorded as a reduction of long-term deferred tax assets and $1.8 million in long-term income taxes payable as of September 30, 2014. As noted below in Note 13, “Income Taxes,” although it is possible that some of the unrecognized tax benefits could be settled within the next 12 months, the Company cannot reasonably estimate the outcome at this time.
(2)
With respect to the imputed financing obligation, the main components of the difference between the amount reflected in the contractual obligations table and the amount reflected on the condensed consolidated balance sheets are the interest on the imputed financing obligation and the estimated common area expenses over the future periods. The amount includes the amended Ohio lease and the amended Sunnyvale lease.
(3)
The Company has commitments with various software vendors for non-cancellable agreements generally having terms longer than one year.
(4)
In connection with acquisitions, the Company is obligated to pay retention bonuses to certain employees and contractors, subject to certain eligibility and acceleration provisions including the condition of employment. For the retention bonuses related to CRI, the last payment of $1.5 million was paid in cash during the third quarter of 2014 to a designated charitable organization as a result of forfeitures by employees.
Building lease expense was approximately $0.6 million and $1.9 million for the three and nine months ended September 30, 2014, respectively. Building lease expense was approximately $0.6 million and $2.4 million for the three and nine months ended September 30, 2013, respectively. Deferred rent of $1.2 million and $1.4 million as of September 30, 2014 and December 31, 2013, respectively, was included primarily in other long-term liabilities.
Indemnification
The Company enters into standard license agreements in the ordinary course of business. Although the Company does not indemnify most of its customers, there are times when an indemnification is a necessary means of doing business. Indemnification covers customers for losses suffered or incurred by them as a result of any patent, copyright, or other intellectual property infringement or any other claim by any third party arising as result of the applicable agreement with the Company. The Company generally attempts to limit the maximum amount of indemnification that the Company could be required to make under these agreements to the amount of fees received by the Company.