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Commitments and Contingencies
 9 Months Ended
Sep. 30, 2013
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

5. Commitments and Contingencies

Contractual Obligations

The Company has entered into obligations under operating leases with initial non-cancelable terms in excess of one year for office space, telephone, and data services. Expenses recorded under these agreements for the three months ended September 30, 2013 and 2012 were approximately $582 and $351, respectively and for the nine months ended September 30, 2013 and 2012 were approximately $1,312 and $987 respectively.

Future minimum lease payments with respect to non-cancelable operating leases at September 30, 2013 are approximately as follows:

 

Remainder of 2013

    $ 1,060   

2014

      3,092   

2015

      2,880   

2016 and thereafter

      37,902   
  

 

 

  

Total

    $ 44,934   
  

 

 

  

The Company’s current office lease expires in January 2014 and the Company entered into a new 16 year lease agreement in August 2013.

Letter of Credit

The Company collateralizes its current office lease through a standby letter of credit of $419 as of September 30, 2013. In August 2013, the Company collateralized its new office lease through an additional standby letter of credit of $1,384 held as an investment in debt securities, which is included in investments on the consolidated balance sheets at September 30, 2013.

Contingencies

The Company is subject to various routine regulatory reviews and inspections by the SEC and may be subject to legal proceedings arising in the ordinary course of business. The Company is not currently party to any litigation or other legal proceedings that are expected to have a material impact on our business, financial position, results of operations, or cash flows.

In December 2011, Research Affiliates LLC filed a patent infringement lawsuit against the Company. In November 2012, Research Affiliates withdrew its lawsuit and entered into a settlement agreement with the Company. The Company’s insurance carrier funded a significant majority of the cost of defending this patent infringement lawsuit. The Company incurred litigation expense of $219 and $700, net of insurance reimbursement, in the three and nine months ended September 30, 2012.