v3.21.2

Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments The Company leases office space under non-cancellable operating leases for its corporate headquarters in Austin, Texas in two adjacent buildings under separate lease agreements. Pursuant to the first of which the Company leases approximately 129 square feet of office space with an initial term that expires on April 30, 2028, with the option to extend the lease for an additional ten-year term, and pursuant to the second of which the Company leases approximately 129 square feet of office space with lease terms of approximately ten years, with the options to extend the leases on the second building. The Company also leases office space in Lincoln, Nebraska; Des Moines, Iowa; Atlanta, Georgia; Asheville, North Carolina; Charlotte, North Carolina; Cary, North Carolina; Minneapolis, Minnesota; Bangalore, India; London, United Kingdom; and Sydney, Australia. During the three and nine months ended September 30, 2021, through the Company's regular assessment process and vacating of facilities, unoccupied lease charges of $1.2 million and $2.1 million, respectively, were recorded for facilities in Georgia, Texas, North Carolina and Nebraska for the related contractual lease payments and fees, less sublease income. During the three and nine months ended September 30, 2020, the Company vacated facilities in California; south Austin, Texas; and a portion of the facilities in Charlotte, North Carolina and recorded unoccupied lease charges of $1.5 million and $2.1 million, respectively, for the related contractual lease payments and fees, less estimated sublease income. The lease liabilities related to the subleases that are expected to be paid during the succeeding twelve-month period of $1.2 million are recorded in accrued liabilities, and the remaining portion of the associated liability of $2.2 million is recorded in other long-term liabilities on the accompanying condensed consolidated balance sheet at September 30, 2021. The Company believes its current facilities will be adequate for its needs for the current term. Rent expense under operating leases was $2.1 million and $1.7 million for the three months ended September 30, 2021 and 2020, respectively, and $5.4 million and $5.1 million for the nine months ended September 30, 2021 and 2020, respectively. Future minimum payments required under operating leases that have commenced and have initial or remaining non-cancelable lease terms in excess of one year at September 30, 2021 were as follows:
|  | Operating Leases
Year Ended December 31, |  |
2021 (October 1 to December 31) |  | $ | 2,914 |
2022 |  | 12,403 |
2023 |  | 12,129 |
2024 |  | 11,147 |
2025 |  | 10,205 |
Thereafter |  | 26,729 |
Total lease payments |  | $ | 75,527 |
Less: present value discount |  | (3,169) |
Present value of lease liabilities |  | $ | 72,358 |
Contractual Commitments The Company has non-cancelable contractual commitments related to the 2023 Notes, 2025 Notes and the 2026 Notes as well as the related interest. The interest on the 2023 Notes is payable semi-annually on February 15 and August 15 of each year. The interest on the 2025 Notes is payable semi-annually on May 15 and November 15 of each year. The interest on the 2026 Notes is payable semi-annually on June 1 and December 1 of each year. The Company also has non-cancelable contractual commitments for certain third-party products, co-location fees and other product costs. Several of these purchase commitments for third-party products contain both a contractual minimum obligation and a variable obligation based upon usage or other factors which can change on a monthly basis. The estimated amounts for usage and other factors are not included within the table below. In the quarters ended June 30, 2020 and September 30, 2021, in connection with the termination of a strategic partnership, the Company paid termination fees of $5.6 million and $7.6 million, respectively. The Company recorded the $13.2 million charge in partnership termination charges in the condensed consolidated statements of comprehensive loss in the second quarter of 2020. On December 31, 2020, the Company entered into a long-term stadium sponsorship agreement, beginning in 2021 and ending in 2028, which grants the Company exclusive naming rights, sponsorship, signage, advertising and other promotional rights and benefits. The advertising expense for these rights is amortized on a straight-line basis and recorded in sales and marketing expense in the consolidated statements of comprehensive loss. The prepaid commitment balance, net of amortization, is included in prepaid expenses and other current assets in the consolidated balance sheets. Future minimum contractual commitments that have initial or remaining non-cancelable terms in excess of one year were as follows:
|  | Contractual Commitments
Year Ended December 31, |  |
2021 (October 1 to December 31) |  | $ | 6,807 |
2022 |  | 29,358 |
2023 |  | 33,184 |
2024 |  | 7,183 |
2025 |  | 356,309 |
Thereafter |  | 327,937 |
Total commitments |  | $ | 760,778 |
Legal Proceedings From time to time, the Company may become involved in legal proceedings arising in the ordinary course of its business. The Company is not presently a party to any legal proceedings that, if determined adversely to the Company, would have a material adverse effect on the Company. Loss Contingencies In the ordinary course of business, the Company is subject to loss contingencies that cover a range of matters. An estimated loss from a loss contingency, such as a legal proceeding or claim, is accrued if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

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