Commitments and Contingencies

As of June 30, 2018, the Company’s material contractual obligations were as follows (in thousands):



	Total		Remainder of 2018		2019		2020		2021		2022		Thereafter
Contractual obligations (1)
Imputed financing obligation (2)	$	12,732	$	3,261	$	6,602	$	2,869	$	—	$	—	$	—
Leases and other contractual obligations	24,301		5,221		5,569		4,603		4,731		3,318		859
Software licenses (3)	8,773		5,241		3,532		—		—		—		—
Convertible notes	253,707		81,207		—		—		—		—		172,500
Interest payments related to convertible notes	12,635		1,955		2,372		2,372		2,372		2,372		1,192
Total	$	312,148	$	96,885	$	18,075	$	9,844	$	7,103	$	5,690	$	174,551

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(1)

The above table does not reflect possible payments in connection with uncertain tax benefits of approximately $23.8 million including $21.6 million recorded as a reduction of long-term deferred tax assets and $2.2 million in long-term income taxes payable as of June 30, 2018. 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 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 agreements generally having terms longer than one year.

Building lease expense was approximately $1.2 million and $2.5 million for the three and six months ended June 30, 2018, respectively. Building lease expense was approximately $1.1 million and $2.1 million for the three and six months ended June 30, 2017, respectively. Deferred rent of $1.3 million and $0.5 million as of June 30, 2018 and December 31, 2017, respectively, was included in other 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 or liability that the Company could be exposed to under these agreements, however, this is not always possible. The fair value of the liability as of June 30, 2018 and December 31, 2017 is not material.