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Commitments
12 Months Ended
Dec. 31, 2011
Commitments [Abstract]  
Commitments

(4) Commitments

The Company has commitments for future payments related to office facilities leases and other contractual obligations. The Company leases its office facilities under operating lease agreements expiring through 2018. Certain of these lease agreements have free or escalating rent payment provisions or fund certain leasehold improvements which the Company accounts as a lease incentive. The Company recognizes rent expense under such agreements on a straight-line basis over the lease term with any lease incentive amortized as a reduction of rent expense over the lease term. The Company also has other contractual obligations expiring over varying time periods through 2016. Other contractual obligations primarily relate to minimum contractual payments due to distribution partners and other outside service providers.

Future minimum payments are approximately as follows (in thousands):

 

     Facilities
operating
leases
     Other
contractual
obligations
     Total  

2012

   $ 2,124       $ 3,401       $ 5,525   

2013

     2,235         1,517         3,752   

2014

     2,287         1,127         3,414   

2015

     2,226         639         2,865   

2016

     2,267         447         2,714   

2017 and after

     2,910         —           2,910   
  

 

 

    

 

 

    

 

 

 

Total minimum payments

   $ 14,049       $ 7,131       $ 21,180   
  

 

 

    

 

 

    

 

 

 

In June 2009, the Company entered into a lease agreement for office facilities in Seattle, Washington which commenced in the fourth quarter of 2009 and expires on March 2018. In December 2010, the Company entered into an amendment to the lease agreement from June 2009 for additional office space in Seattle, Washington, which commenced in December 2010 and expires in March 2018. During 2010 and 2011, the lessor paid approximately $779,000 and $204,000, respectively, towards certain leasehold improvements which the Company accounted for as a lease incentive and is amortizing as a reduction of rent expense over the lease term.

In May 2010, the Company entered into a lease agreement for office facilities in New York, New York which commenced in the second quarter of 2010 and expires in March 2018.

Rent expense incurred by the Company was approximately $1.7 million, $1.7 million and $2.1 million for the years ended December 31, 2009, 2010 and 2011, respectively.