Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 20—Commitments and Contingencies

The Company leases certain facilities and equipment under operating leases. Most leases contain renewal options for varying periods. Future minimum rental payments on such operating leases at December 31, 2013 are as follows:

(Dollar amounts in thousands)	Unrelated parties		Related party		Minimum future rentals
2014	$	753	$	3,973	$	4,726
2015		548		1,001		1,549
2016		356		—		356
2017		118		—		118
2018 and thereafter		—		—		—
	$	1,775	$	4,974	$	6,749

Certain lease agreements contain provisions for future rent increases. The total amount of rental payments due over the lease term is being charged to rent expense on the straight-line method over the term of the lease. The difference between rent expense recorded and the amount paid is recorded as a deferred rent obligation. Total deferred rent obligation as of both December 31, 2013 and 2012 amounted to $0.3 million, and is included within the accounts receivable, net caption in the accompanying consolidated balance sheets.

Rent expense of office facilities and real estate for the years ended December 31, 2013 and 2012 amounted to $7.7 million and $7.8 million, respectively. Also, rent expense for telecommunications and other equipment for the years ended December 31, 2013 and 2012 amounted to $7.0 million and $7.1 million, respectively.

In the ordinary course of business, the Company may enter in commercial commitments. As of December 31, 2013, EVERTEC has an outstanding letter of credit of $1.3 million with a maturity of less than three months.

EVERTEC is a defendant in a number of legal proceedings arising in the ordinary course of business. Based on the opinion of legal counsel, management believes that the final disposition of these matters will not have a material adverse effect on the business, results of operations or financial condition of the Company. The Company has identified certain claims in which a loss may be incurred, but in the aggregate the loss would be minimal. For other claims, where the proceedings are in an initial phase, the Company is unable to estimate the range of possible loss for such legal proceedings. However, the Company at this time believes that any loss related to these latter claims will not be material.