Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies

14. Commitments and Contingencies

Leases

The Company leases office space under noncancelable operating leases with lease terms ranging from one to five years. Additionally, the Company leases certain equipment under noncancelable operating leases at its facilities and its leased data center operations.

Aggregate Future Contractual Obligations and Lease Commitments

As of June 30, 2014, the Company’s minimum payments under its noncancelable operating and capital leases are as follows (in thousands):

	Operating Leases		Capital Leases
2014, remaining six months	$	1,557	$	34
2015		3,207		68
2016		3,047		52
2017		172		22
2018		126		18
2019 and thereafter		109		1
Total minimum payments	$	8,218	$	195
Less: Amount representing interest				16
Present value of capital lease obligations				179
Less: Current portion				60
Capital lease obligation, net of current portion			$	119

Other Future Commitments

The Company has long-term commitments related to technology development and support for the years 2014 to 2016 in the amount of $6,083,000.

The Company also has other long-term commitments for the years 2014 to 2034 in the amount of $7,520,000 for marketing arrangements.

The Company entered into service agreements under which the Company is obligated to prepay non-refundable payments up to $19,250,000 over three years or earlier upon achievement of certain milestones. As of June 30, 2014, the Company made payments of $3,250,000.

Litigation

In the ordinary course of business, the Company may be involved in lawsuits, claims, investigations, and proceedings consisting of intellectual property, commercial, employment, and other matters. The Company will record a provision for these claims when it is both probable that a liability has been incurred and the amount of the loss, or a range of the potential loss, can be reasonably estimated. These provisions are reviewed regularly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information or events pertaining to a particular case. In the event that one or more of these matters were to result in a claim against the Company, an adverse outcome, including a judgment or settlement, may cause a material adverse effect on the Company’s future business, operating results, or financial condition.

The Company believes that liabilities associated with any claims are not probable and any reasonably possible range of losses cannot be estimated at this time, therefore the Company has not recorded any accrual for claims as of June 30, 2014 and December 31, 2013.