Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

As of March 31, 2016, the Company’s material contractual obligations were as follows (in thousands):



	Total		Remainder of 2016		2017		2018		2019		2020		Thereafter
Contractual obligations (1)
Imputed financing obligation (2)	$	26,856	$	4,636	$	6,302	$	6,447	$	6,602	$	2,869	$	—
Leases and other contractual obligations	10,425		3,847		2,823		1,798		1,040		456		461
Software licenses (3)	3,562		1,497		1,300		765		—		—		—
Convertible notes	138,000		—		—		138,000		—		—		—
Interest payments related to convertible notes	3,881		776		1,553		1,552		—		—		—
Total	$	182,724	$	10,756	$	11,978	$	148,562	$	7,642	$	3,325	$	461

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(1)

The above table does not reflect possible payments in connection with uncertain tax benefits of approximately $22.1 million including $19.6 million recorded as a reduction of long-term deferred tax assets and $2.5 million in long-term income taxes payable as of March 31, 2016. As noted below in Note 12, “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 unaudited 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.

Building lease expense was approximately $0.8 million and $0.7 million for the three months ended March 31, 2016 and 2015, respectively. Deferred rent of $0.7 million and $0.8 million as of March 31, 2016 and December 31, 2015, respectively, was included primarily in other long-term liabilities.

Indemnification

From time to time, the Company indemnifies certain customers as 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, however, this is not always possible. The fair value of the liability as of March 31, 2016 and December 31, 2015 is not material.