Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies

Commitments and Contingencies

10. Commitments and Contingencies

Commitments

We lease office and warehouse space and equipment under various non-cancelable operating leases which provide for minimum annual rentals and escalations based on increases in real estate taxes and other operating expenses. We also have minimum commitments under non-cancelable contracts for services relating to telecommunications, IT maintenance, financial services and employment contracts with certain employees (which consist of severance arrangements that, if exercised, would become payable in less than one year). In addition, we have obligations under capital leases for computers and related equipment, telecommunications equipment and software.

As of December 31, 2014, minimum payments over the terms of applicable contracts were payable as follows (in thousands):

	2015		2016		2017		2018		2019		Thereafter		Total
Operating lease obligations	$	6,278	$	4,995	$	2,715	$	2,367	$	1,767	$	4,162	$	22,284
Capital lease obligations	2,310		1,817		676		40		17		—		4,860
Other commitments (a)(b)	18,693		1,269		95		—		—		—		20,057
Total minimum payments	$	27,281	$	8,081	$	3,486	$	2,407	$	1,784	$	4,162	$	47,201

(a) Other commitments consist of minimum commitments under non-cancelable contracts for services relating to telecommunications, IT maintenance, financial services and employment contracts with certain employees (which consist of severance arrangements that, if exercised, would become payable in less than one year).

(b) We had $10.0 million of standby letters of credits (LOCs) under which there were no minimum payment requirements at December 31, 2014. LOCs are commitments issued to third party beneficiaries, underwritten by a third party bank, representing funding responsibility in the event of third party demands or contingent events. The outstanding balance of our standby LOCs reduces the amount available to us from our revolving credit facility. There were no claims made against any standby LOCs during the year ended December 31, 2014.

For the years ended December 31, 2014, 2013 and 2012, total rent expense, net of sublease income, totaled $4.6 million, $4.9 million and $4.8 million, respectively. Some of the leases contain renewal options and escalation clauses, and require us to pay taxes, insurance and maintenance costs.

Legal Proceedings

We are not currently a party to any legal proceedings with loss contingencies, which are expected to be material. From time to time, we receive claims of and become subject to consumer protection, employment, intellectual property and other litigation related to the conduct of our business. Any such litigation could result in a material amount of legal or related expenses and be time consuming and could divert our management and key personnel from our business operations. In connection with any such litigation, we may be subject to significant damages or equitable remedies relating to the operation of our business. Any such litigation may materially harm our business, results of operations and financial condition.