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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has entered into various non-cancelable operating lease agreements for certain offices and datacenters with contractual lease periods expiring at various dates through 2033. The facility lease agreements generally provide for escalating rental payments and for options to renew, which could increase future minimum lease payments if exercised. The Company recognizes rent expense on a straight-line basis over the lease period and accounts for the difference between straight-line rent and actual lease payments as deferred rent. Gross rent expense was $85.9 million, $71.0 million, $67.9 million for the years ended December 31, 2018, 2017, and 2016, respectively. Sublease income, which is recorded as a reduction of rental expense, was $11.8 million, $10.6 million, and $4.5 million for the years ended December 31, 2018, 2017, and 2016, respectively. Sublease income in excess of the Company’s original lease obligation is split with the original lessor per the terms of the sublease agreement, with the Company’s portion recorded to other income, net. In 2018, the Company amended its lease agreement for its current corporate headquarters, modifying the original lease termination date from 2027 to 2019. As a result of the amendment, the Company expects to vacate its current corporate headquarters in August 2019, but is obligated to pay rent through February 2020. Accordingly, the Company's future operating lease commitments were reduced by $192.4 million. As described in Note 1, "Description of the Business and Summary of Significant Accounting Policies”, the Company was considered the deemed owner of a floor in its previous corporate headquarters, for accounting purposes, as part of a build-to-suit lease agreement and initially recorded a building asset and an imputed financing obligation for its obligation to the legal owner in the amount of $36.6 million. As of December 31, 2017, the imputed financing obligation totaled $27.4 million, of which $2.6 million was classified within accrued and other current liabilities, and $24.8 million was classified within other non-current liabilities. In 2018, the Company terminated its master lease for its previous corporate headquarters. As the master lease was nearing expiration, the early termination did not have a material impact on the Company's future operating lease commitments. In 2017, the Company entered into a new lease agreement for office space in San Francisco, California, to serve as its new corporate headquarters. The Company took initial possession of the first phase of its new corporate headquarters in June 2018 and began to recognize rent expense. The Company expects to start making recurring rental payments under the lease in the third quarter of 2019. Included in the operating lease commitments below are total expected minimum obligations under the lease agreement of $831.6 million, which exclude expected tenant improvement reimbursements from the landlord of approximately $75.0 million and variable operating expenses. The Company’s obligations under the lease are supported by a $34.2 million letter of credit, which reduced the borrowing capacity under the revolving credit facility. Other Commitments Other commitments include payments to third-party vendors for services related to the Company’s infrastructure, infrastructure warranty contracts, and asset retirement obligations for office modifications. Future minimum payments under the Company’s non-cancelable leases, financing obligations, and other commitments as of December 31, 2018, are as follows, and exclude non-cancelable rent payments from the Company’s sub-tenants:
|  | Capital lease commitments |  | Operating lease commitments(1) |  | Other commitments
Year ended December 31: |  |  |  |  |  |
2019 |  | $ | 82.4 |  |  | $ | 96.4 |  |  | $ | 57.0 |
2020 |  | 45.3 |  |  | 106.2 |  |  | 37.2 |
2021 |  | 30.3 |  |  | 99.0 |  |  | 2.2 |
2022 |  | 17.4 |  |  | 92.9 |  |  | — |
2023 |  | 0.6 |  |  | 76.1 |  |  | 0.3 |
Thereafter |  | — |  |  | 651.6 |  |  | — |
Future minimum payments |  | 176.0 |  |  | $ | 1,122.2 |  |  | $ | 96.7 |
Less interest and taxes |  | (12.3 | ) |  |  |  |
Less current portion of the present value of minimum lease payments |  | (73.8 | ) |  |  |  |
Capital lease obligations, net of current portion |  | $ | 89.9 |  |  |  |  |
(1) | Consists of future non-cancelable minimum rental payments under operating leases for the Company’s offices and datacenters, excluding rent payments from the Company’s sub-tenants and variable operating expenses. As of December 31, 2018, the Company is entitled to non-cancelable rent payments from its sub-tenants of $43.5 million, which will be collected over the next five years.
Legal matters From time to time, the Company is a party to a variety of claims, lawsuits, and proceedings which arise in the ordinary course of business, including claims of alleged infringement of intellectual property rights. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. The Company discloses losses that are reasonably possible and when the amount of loss or range of loss can be reasonably estimated. In its opinion, resolution of pending matters is not likely to have a material adverse impact on its consolidated results of operations, cash flows, or its financial position. Given the unpredictable nature of legal proceedings, the Company bases its estimate on the information available at the time of the assessment. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. Indemnification The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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