Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

As of June 30, 2017, the Company’s material contractual obligations were as follows (in thousands):



	Total		Remainder of 2017		2018		2019		2020		2021		Thereafter
Contractual obligations (1)
Imputed financing obligation (2)	$	19,103	$	3,185	$	6,447	$	6,602	$	2,869	$	—	$	—
Leases and other contractual obligations	18,784		4,213		4,569		3,514		2,549		2,646		1,293
Software licenses (3)	18,557		4,849		10,176		3,532		—		—		—
Convertible notes	138,000		—		138,000		—		—		—		—
Interest payments related to convertible notes	2,328		776		1,552		—		—		—		—
Total	$	196,772	$	13,023	$	160,744	$	13,648	$	5,418	$	2,646	$	1,293

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(1)

The above table does not reflect possible payments in connection with uncertain tax benefits of approximately $22.9 million including $20.7 million recorded as a reduction of long-term deferred tax assets and $2.2 million in long-term income taxes payable as of June 30, 2017. As noted below in Note 12, “Income Taxes,” although it is possible that some of the unrecognized tax benefits could be settled within the next 12 months, the Company cannot reasonably estimate the outcome at this time.

(2)

With respect to the imputed financing obligation, the main components of the difference between the amount reflected in the contractual obligations table and the amount reflected on the unaudited condensed consolidated balance sheets are the interest on the imputed financing obligation and the estimated common area expenses over the future periods. The amount includes the amended Ohio lease and the amended Sunnyvale lease.


(3)	The Company has commitments with various software vendors for non-cancellable agreements generally having terms longer than one year.

Building lease expense was approximately $1.1 million and $2.1 million for the three and six months ended June 30, 2017, respectively. Building lease expense was approximately $0.9 million and $1.7 million for the three and six months ended June 30, 2016, respectively. Deferred rent of $0.3 million and $0.5 million as of June 30, 2017 and December 31, 2016, respectively, was included primarily in other current liabilities.

Indemnification

From time to time, the Company indemnifies certain customers as a necessary means of doing business. Indemnification covers customers for losses suffered or incurred by them as a result of any patent, copyright, or other intellectual property infringement or any other claim by any third party arising as result of the applicable agreement with the Company. The Company generally attempts to limit the maximum amount of indemnification or liability that the Company could be exposed to under these agreements, however, this is not always possible. The fair value of the liability as of June 30, 2017 and December 31, 2016 is not material.