Commitments and Contingencies

Aggregate Future Lease Commitments

On November 13, 2014, the Company entered into a lease (the “Lease”), pursuant to which the Company leases approximately 137,615 square feet of office space in Austin, Texas. This serves as the headquarters of the Company and is used for general office purposes. The term of the Lease commenced on December 14, 2015 (the “Commencement Date”) and terminates approximately ten years and six months after the Commencement Date. The Company has the option to extend the term of the Lease for up to two successive periods of five years each and the Company was required to obtain a stand by letter of credit of $8.0 million as a security deposit for the Lease.

In addition to its headquarters, the Company has non-cancelable operating leases for office premises at various other national and international locations. The Company recognizes expense on a straight-line basis and records the difference between recognized rental expense and amounts payable under the lease as deferred rent. Rent expense for the years ended April 30, 2017, 2016 and 2015, was $4.9 million, $5.0 million and $4.1 million, respectively. Effective May 2016, the Company entered into a sublease agreement for a portion of its headquarters, which expires in April 2019. In addition, in October 2016 the Company entered into an agreement to sublet its San Francisco office for the remainder of the lease term, which expires in April 2019.

Future minimum rental commitments under non-cancelable operating leases, by year and in the aggregate, are as follows at April 30, 2017 (in thousands):



Fiscal year ending April 30:	Minimum Lease Commitments
2018	$	6,859
2019	6,917
2020	6,663
2021	5,842
2022	5,911
Thereafter	17,799
Total	$	49,991

As of April 30, 2017 future minimum sublease rentals under noncancelable subleases totaled $2.7 million.

Amended and Restated Credit Facility

On November 21, 2014, the Company entered into an Amended and Restated Credit Facility (the “Credit Facility”) with Comerica Bank which provides for a secured, revolving line of credit of up to $70.0 million, with a sublimit of $3.0 million for the incurrence of swingline loans and a sublimit of $15.0 million for the issuance of letters of credit. The revolving line of credit bears interest at the adjusted LIBOR rate plus 3.5%. In addition, the Company is required to pay an ongoing commitment fee of 0.5% on the full amount available under the Credit Facility, whether used or unused. On November 21, 2014, the Company drew down $57.0 million of the unused balance of the Credit Facility. The Company's current outstanding balance on its Credit Facility is $32.0 million. The Credit Facility expires on November 21, 2017 with all advances immediately due and payable (See Note 10).

Legal proceedings and other contingencies

In the ordinary course of business, the Company may be subject to various legal proceedings and claims including alleged infringement of third-party patents and other intellectual property rights. The Company reviews the status of each matter and records a provision for a liability when it is considered both probable that a liability has been incurred and that the amount of the loss can be reasonably estimated. Legal fees incurred in connection with loss contingencies are recognized as incurred when the legal services are provided, and therefore are not recognized as a part of a loss contingency accrual. These provisions are reviewed quarterly and adjusted as additional information becomes available. The Company is not presently a party to any legal proceedings that in the opinion of the Company's management would have a material adverse effect on its business, financial condition, operating results or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

The Company is subject to audit in various jurisdictions, and such jurisdictions may assess additional income and sales tax liabilities against us. Although we believe our tax estimates are reasonable, the final outcome of tax audits and any related litigation could be materially different from our historical income and sales tax provisions and accruals. Developments in an audit or litigation could have a material effect on our operating results or cash flows in the period or periods for which that development occurs, as well as for prior and subsequent periods.

During the fourth quarter of fiscal 2017, in conjunction with a Texas state sales tax audit, the Company received a $3.3 million sales tax refund from the State of Texas related to purchases integral to our product offering that are not subject to Texas state sales tax. This refund is included in the "Sales tax refund" line item in the Company's statement of operations and relates to fiscal years 2013 through 2016.

During the fiscal year ended April 30, 2017, the Company determined that for certain forms of employee compensation, primarily equity grants, 401(k) deferrals were not being withheld as required by the Company's 401(k) plan. As a result, the Company recorded a $0.5 million accrual representing the Company's best estimate of employer contributions the Company expects to make on behalf of its employees.