Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Note 14—Commitments and Contingencies

Purchase Obligations

The Company has $420.8 million of non-cancelable contractual commitments as of December 31, 2023, primarily related to cloud computing in which the commitments are due over the course of approximately three years. For agreements with variable terms, the Company does not estimate what the total obligation may be beyond any minimum quantities and/or pricing. For purchase obligations with cancellation provisions, the amounts included in the following table were limited to the non-cancelable portion of the agreement terms or the minimum cancellation fees.

The Company’s future payments under purchase obligations as of December 31, 2023 were as follows (in thousands):


	Purchase Obligations
Periods ending
2024	$	134,245
2025	191,547
2026	95,000


Thereafter	—
Total purchase obligations	$	420,792

Non-Income Tax Contingencies

The Company had reserves of $26.2 million and $43.2 million at December 31, 2023 and 2022, respectively, for certain non-income tax obligations, representing management’s best estimate of its potential liability. The reserves as of December 31, 2023 and 2022 include $11.5 million and $30.4 million, respectively, due to the acquisitions of subsidiaries, some of which are offset by an indemnification asset of $3.0 million as of December 31, 2022. These amounts were primarily recorded as part of purchase accounting. The Company could also be subject to examination in various jurisdictions related to income tax and non-income tax matters. The resolution of these types of matters, if in excess of the recorded reserve, could have an adverse impact on the Company’s consolidated financial statements.

Legal Proceedings

From time to time in the normal course of business, various claims and litigation have been asserted or commenced against the Company. Due to uncertainties inherent in litigation and other claims, the Company can give no assurance that it will prevail in any such matters, which could subject the Company to significant liability for damages. Any claims or litigation could have an adverse effect on the Company’s results of operations, cash flows, or business and financial condition in the period the claims or litigation are resolved. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these matters will not have a material adverse effect on its business.