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Commitments and Contingencies
3 Months Ended
Mar. 31, 2013
Commitments and Contingencies  
Commitments and Contingencies

 

 

12.       Commitments and Contingencies

 

During the normal course of business, the Company becomes involved in various routine legal proceedings including issues pertaining to patent infringement, customer disputes, employee matters and acquisition-related post-closing disputes.  The Company does not believe that the outcome of these matters will have a material adverse effect on its financial condition. 

 

The Company has entered into non-cancellable operating leases for the rental of office space in various locations that expire between 2013 and 2019.  Some of the leases provide for lower payments in the beginning of the term which gradually escalate during the term of the lease. The Company recognizes rent expense on a straight-line basis over the lease term, which gives rise to a deferred rent liability on the balance sheet.  The Company also has entered into agreements with third-party hosting facilities, which expire between 2013 and 2016.

 

The Company is also obligated under several leases covering computer equipment and software, which the Company has classified as capital leases.  Additionally, the Company has entered into several operating leases for various office equipment items, which expire between March 2013 and July 2015.

 

Rent expense, included in general and administrative expense, was approximately $1.1 million and $1.4 million for the three months ended March 31, 2012 and 2013, respectively.