Commitments and Contingencies

Contractual Obligations — We incurred significant commitments and contractual obligations as of December 31, 2014 as outlined below.

In April 2008, we amended an existing contract with a vendor for invoice processing services over a three-year contract term. This contract automatically renewed annually, thereafter. We have a remaining contractual obligation of $0.1 million, including both fixed and variable components based on units in service.

In November 2009, we entered into an agreement with a vendor for our headquarters office space in Springfield, Virginia. The office lease commenced in April 2010. The total rent expense is estimated to be approximately $1.4 million, which includes $0.4 million for lease incentives for a five-year lease term. In April 2014, we extended the original lease term for an additional 3 years with the new lease term expiring on March 31, 2018. In addition, we retained an adjacent office space for a lease period of 4 years also expiring on March 31, 2018. The additional rent expense, net of rent abatement, associated with the amendment is estimated to be approximately $1.2 million over the amended lease term. We have a remaining commitment of $1.2 million as of December 31, 2014.

In October 2010, we entered into an agreement with a vendor for certain satellite services over a three-year contract term. In March 2012, we signed an amendment to cover additional satellite services. In December 2012, we further amended the agreement with additional services, term and conditions. We have a remaining commitment of $0.3 million, as of December 31, 2014.

In June 2011, we amended an existing contract with a vendor for office space in Plano, Texas. The amendment commenced in October 2011. The total rent expense is estimated to be approximately $2.5 million, which includes $0.2 million for rent abatements for a five-year lease term. In October 2014, we amended an existing agreement with a vendor for our office space in Plano, Texas. We extended the original lease term for an additional 2 years with the new lease term expiring on September 30, 2018. The additional rent expense, net of rent abatement, associated with the amendment is estimated to be approximately $1.1 million over the amended lease terms. We have a remaining commitment of $2.2 million as of December 31, 2014.

In December 2011 and effective for February 2012, we contracted with a provider for network maintenance services over a three-year contract term. The contract includes a fixed per site cost based on the number of transmitters, which can be adjusted with a 90 day notice. We have a minimum commitment with this vendor of $0.1 million.

In May 2012, we contracted with a managed service-hosting provider for certain computer support services over a three-year contract term. We have a remaining contractually obligation of $0.1 million as of December 31, 2014.

In September 2012, we signed a contract with a vendor for telecommunication services with a two-year term. In September 2014, we extended the original lease term for an additional 2 years. We have a remaining contractual obligation of $0.2 million as of December 31, 2014.

We have agreements and commitments with vendors for office space in Minnesota, New Hampshire, Florida and Australia. The remaining commitments for the office leases are as follows: Minnesota of $1.3 million through February 2019; New Hampshire of $0.6 million through June 2017; Florida of $0.1 million through June 2016; and Australia of $0.2 million through July 2016.

In May 2013, we contracted with a vendor for Internet and telephone services. In December 2014, we amended the contract and extended the contract expiration date from February 2015 to February 2017. As of December 31, 2014, we have a remaining commitment of $0.6 million.

On August 27, 2013, we entered into an agreement with a vendor for new office space in New York, New York for a ten-year lease term. The office rent started in the first quarter of 2014 upon commencement of the tenant's build out. The total rent expense is estimated to be approximately $3.6 million, which includes $0.4 million for lease incentives. As of December 31, 2014, our remaining commitment for the office space in New York is $3.5 million.

In March 2014, we entered into an exclusive agreement with a vendor to purchase a minimum number of paging devices over a three-year period. We have a purchase commitment of $8.3 million over this three year contractual term.

In April 2014, we entered into an agreement with a vendor for certain information technology services over a three-year contract term. The total contractual obligation is $1.6 million. We have a remaining contractual obligation of $1.3 million as of December 31, 2014.

In July, 2014, we entered into an agreement with a vendor for certain information technology services over a 33 month contract term. The total contractual obligation is $0.1 million. We have a remaining contractual obligation of $0.1 million as of December 31, 2014.

In December, 2014, we entered into an agreement with a vendor for telecommunication services over a three-year contract term. The total contractual obligation is $0.2 million.

Other Commitments — We also have various LOCs outstanding with multiple state agencies. The LOCs typically have one to three-year contract requirements and contain automatic renewal terms. The deposits of $0.1 million related to the LOCs are included within other assets on the consolidated balance sheets.

During the third quarter of 2012, we established a $0.2 million LOC for an international sale. During the third quarter of 2013, we established a $0.1 million LOC associated with a new facility lease.

Legal Contingencies — We are involved, from time to time, in lawsuits arising in the normal course of business. We believe these pending lawsuits will not have a material adverse impact on our financial position or statement of income.

Operating Leases — We have operating leases for office and transmitter locations. Substantially all of these leases have lease terms ranging from one month to five years. We continue to review our office and transmitter locations, and intend to replace, reduce or consolidate leases, where possible.

Future minimum lease payments under non-cancelable operating leases at December 31, 2014 were as follows:



For the Year Ended December 31,	(Dollars in thousands)
2015	$	7,207
2016	5,291
2017	3,918
2018	2,528
2019	1,081
Thereafter	2,489
Total	$	22,514

These leases typically include renewal options and escalation clauses. Where material, we recognize rent expense on a straight-line basis over the lease period. The difference between rent paid and rent expense is recorded as accrued other and other long-term liabilities on the consolidated balance sheets.

Total rent expense under operating leases for the years ended December 31, 2014, 2013 and 2012, was approximately $18.6 million, $19.1 million and $20.4 million, respectively.

Indemnification — We and certain of our subsidiaries, as permitted under Delaware law, have entered into indemnification agreements with several persons, including each of our present directors and certain members of management, for defined events or occurrences while the director or member of management is, or was serving, at our request in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have a director and officer insurance policy that limits our exposure and enables us to recover a portion of any future amounts paid under the terms of the policy. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is immaterial. Therefore, we have not recorded a liability for these agreements as of December 31, 2014 and 2013, respectively.

Our services and product sales agreements typically include certain provisions that indemnify customers from claims of intellectual property infringement made by third parties arising from the use of our products. To date, we have not incurred and have not accrued for any costs related to such indemnification provisions.