Commitments and contingencies

12 Months Ended

Dec. 31, 2012

Commitments and contingencies

Commitments and contingencies

12. Commitments and contingencies

• Capital and operating leases

        We lease space in managed and operated locations, primarily airports, under exclusive long-term, non-cancellable contracts to provide Wi-Fi connectivity and cellular phone access to our DAS network. Minimum rent expense is recorded on a straight-line basis over the term of the lease. Rent expense from our leases for the years ended December 31, 2012, 2011 and 2010 was $16,760, $15,511 and $12,499, respectively.

        We lease equipment, primarily data communication equipment and database software under non-cancellable capital leases that expired in October 2011. The leases were collateralized by the equipment under the lease. Interest expense associated with the capital leases for the years ended December 31, 2012, 2011 and 2010 was $11, $8 and $30, respectively. We also lease office space under non-cancellable operating leases. Rent expense for our leases of office facilities for the years ended December 31, 2012, 2011 and 2010 was $1,209, $1,323 and $1,325, respectively. Included in rent expense for the years ended December 31, 2012 and 2011 was sublease income of $52 and $32, respectively.

        Future minimum lease obligations under non-cancellable operating and capital leases at December 31, 2012 are as follows:

Years ended December 31,	Capital Leases		Operating Leases and Airport Guarantees
2013	$	42	$	7,409
2014		42		6,068
2015		42		4,985
2016		52		4,860
2017		—		4,727
Thereafter		—		21,602
Minimum lease payments	$	178	$	49,651
Current portion	$	42
Non-current portion	$	136

• Litigation

        From time to time, we may be subject to claims arising out of the operations in the normal course of business. We are not a party to any such other litigation that we believe would have a material adverse effect on our business, financial position, results of operations or cash flows.

• Indemnification

        Indemnification provisions in our third-party service provider agreements provide that we will indemnify, hold harmless, and reimburse the indemnified parties on a case-by-case basis for losses suffered or incurred by the indemnified parties in connection with any claim by any third party as a result of our website, advertising, marketing, payment processing, collection or customer service activities. The maximum potential amount of future payments we could be required to make under these indemnification provisions is undeterminable. We have never paid a claim, nor have we been sued in connection with these indemnification provisions. At December 31, 2012 and 2011, we have not accrued a liability for these guarantees, because the likelihood of incurring a payment obligation in connection with these guarantees is not probable.

• Employment contracts

        We have entered into employment contracts with two of our officers. These contracts generally provide for severance benefits, including salary continuation, if employment is terminated by us for substantial cause or by the officer for convenience. In addition, in order to assure that they would continue to provide independent leadership consistent with our best interests in the event of an actual or threatened change in control, the contract also generally provides for certain protections in the event of such a change in control. These protections include the payment of certain severance benefits, including salary continuation, upon the termination of employment following a change in control.