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Commitments and Contingencies
 12 Months Ended
Dec. 31, 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 years ended December 31, 2013, 2012, and 2011 were approximately $2,323, $1,338 and $1,046, respectively.

Future minimum lease payments with respect to non-cancelable operating leases at December 31, 2013 are approximately as follows:

 

2014

    $ 3,121   

2015

      2,905   

2016

      2,776   

2017 and thereafter

      35,126   
  

 

 

  

Total

    $ 43,928   
  

 

 

  

The Company’s office lease expires in January 2014 and the Company entered into a new 16 year lease agreement in August 2013. Pursuant to the new lease agreement, the Company received lease incentives which include a deferred rent period and a leasehold improvement allowance equal to $3,223. The Company recorded a receivable of $3,223 due from the lessor of its new office space related to its leasehold improvement allowance, which is included in accounts receivable on the consolidated balance sheet at December 31, 2013.

Letter of Credit

The Company collateralized its office lease at 380 Madison Avenue, New York, NY through a standby letter of credit of $419 as of December 31, 2013. This lease will terminate in January 2014 and this letter of credit will expire at termination. In August 2013, the Company collateralized its office lease for new space at 245 Park Avenue, New York, NY 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 December 31, 2013.

Contingencies

The Company is subject to various routine regulatory reviews and inspections by the SEC as well as 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 or results of operations.

 

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. In 2012, the Company incurred $3.4 million of legal defense and other associated costs and its insurance carrier agreed to reimburse $2.5 million. In addition the Company received $0.7 million settlement payment from Research Affiliates leading to an amount of $0.2 million in net costs the Company incurred for the year ended December 31, 2012. In 2011 the Company incurred $0.2 million in litigation expenses.