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Commitments and Contingencies
12 Months Ended
Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 16—Commitments and Contingencies

Our contractual cash obligations for our operations including future minimum lease payments for the non-cancelable term of all operating leases and committed purchase obligations, excluding future sublease income, as of December 31, 2018, are as follows (in millions):

 

December 31,

 

Operating Leases

 

 

Purchase Obligations

 

 

Total

 

2019

 

$

83.8

 

 

$

101.8

 

 

$

185.6

 

2020

 

 

76.5

 

 

 

46.7

 

 

 

123.2

 

2021

 

 

71.2

 

 

 

36.8

 

 

 

108.0

 

2022

 

 

61.6

 

 

 

12.7

 

 

 

74.3

 

2023 and thereafter

 

 

257.8

 

 

 

 

 

 

257.8

 

Total

 

$

550.9

 

 

$

198.0

 

 

$

748.9

 

Total rental expense was $72.0 million, $47.4 million and $33.3 million for the years ended December 31, 2018, 2017 and 2016, respectively.  We sublease office space to other parties under noncancelable leases and we received rental income under these leases of $5.4 million, $5.4 million and $1.3 million for the years ended December 31, 2018, 2017 and 2016, respectively.  Future minimum lease receipts under these leases as of December 31, 2018 are as follows (in millions):

 

2019

 

$

5.2

 

2020

 

 

6.0

 

2021

 

 

4.4

 

2022

 

 

2.7

 

2023 and thereafter

 

 

2.6

 

Total

 

$

20.9

 

Legal Proceedings

From time to time, we are subject to legal proceedings and claims. In our opinion, we are not involved in any litigation or proceedings that would have a material adverse effect on us or our business.

A putative class action suit was filed against DST, the Compensation Committee of DST’s Board of Directors, the Advisory Committee of DST Systems, Inc. 401(k) Profit Sharing Plan (the “Plan”) and certain of DST’s present and/or former officers and directors, alleging breach of fiduciary duties and other violations of the Employee Retirement Income Security Act.  On September 1, 2017, a complaint was filed purportedly on behalf of the Plan in the Southern District of New York, captioned Ferguson, et al v. Ruane Cunniff & Goldfarb Inc., et al., naming as defendants the DST, the Compensation Committee of DST’s Board of Directors, the Advisory Committee of the Plan and certain of DST’s present and/or former officers and directors.  We intend to defend this case vigorously, and, because it is still in its preliminary stages, has not yet determined what effect this lawsuit will have, if any, on its financial position or results of operations.

In connection with an investigation of the Plan and the activities of its fiduciaries, the U.S. Department of Labor through its Employee Benefits Security Administration issued a letter dated February 23, 2018 stating that, based on facts gathered, it appeared that certain fiduciaries of the Plan may have breached their fiduciary obligations and violated certain provisions of the Employee Retirement Income Security Act in connection with the administration of the Plan.  The letter stated that if the fiduciaries fail to take corrective action, the matter may be referred to the Office of the Solicitor of Labor for possible legal action.  The letter further stated that if the fiduciaries take proper corrective action based on a settlement agreement with the Department of Labor, it will not bring a lawsuit with regard to these issues, and close its investigation without further action.  We have not yet determined what effect this letter will have, if any, on its financial position or results of operations.

On September 28, 2018, a complaint was filed in the United States District Court for the Southern District of New York captioned Robert Canfield, et al. v. SS&C Technologies Holdings, Inc., et al., Case No. l 8-cv-8913, on behalf of five individual plaintiffs. The Complaint names as defendants SS&C Technologies Holdings, Inc., DST Systems, Inc., The Advisory Committee of the DST Systems, Inc. 401(k) Profit Sharing Plan, The Compensation Committee of the Board of Directors of DST Systems, Inc., and Ruane, Cuniff & Goldfarb, Inc. The underlying claim is the same as in the above-described Ferguson matter, with the exception that it is an individual action and not a putative class action. 

On November 5, 2018, a complaint was filed in the United States District Court for the Southern District of New York captioned Mark Mendon and Jill Pehlman v. SS&C Technologies Holdings, Inc., et al. individually and on behalf of the DST Systems, Inc. 401(k) Profit Sharing Plan. The Complaint names as defendants SS&C Technologies Holdings, Inc., DST Systems, Inc., The Advisory Committee of the DST Systems, Inc. 401 (k) Profit Sharing Plan, The Compensation Committee of the Board of Directors of DST Systems, Inc., and Ruane, Cuniff & Goldfarb, Inc. The underlying claim is the same as in the above-described Ferguson matter, with the exception that it is an individual action and not a putative class action.    

DST Systems, Inc., the Advisory Committee of the Plan, and the Compensation Committee of DST’s Board of Directors have been named in approximately 278 substantially similar individual demands for arbitration through February 22, 2019, by former and current DST employees demanding arbitration under the DST Employee Arbitration Program and Agreement. The underlying claim in each is the same as in the above-described Ferguson matter, with the exception that each is an individual claim and not a putative class action.  As of February 22, 2019, the parties have jointly submitted 21 of the demands for arbitration to the American Arbitration Association. The remaining demands for arbitration have not yet been submitted.