COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

fication Obligations — In the normal course of business, the Company is a party to a variety of agreements under which it may be obligated to indemnify the other party for certain matters. These obligations typically arise in contracts where the Company customarily agrees to hold the other party harmless against losses arising from a breach of representations or covenants for certain matters, infringement of third party intellectual property rights, data privacy violations, and certain tortious conduct in the course of providing services. The duration of these indemnifications varies, and in certain cases, is indefinite.

The Company is unable to reasonably estimate the maximum potential amount of future payments under these or similar agreements due to the unique facts and circumstances of each agreement and the fact that certain indemnifications provide for no limitation to the maximum potential future payments under the indemnification. Management is not aware of any such matters that would have a material effect on the condensed consolidated financial statements of the Company.

Litigation — From time to time, the Company is involved in litigation, claims or other contingencies arising in the ordinary course of business. The Company accrues a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. In the opinion of management, the outcome of any existing claims and legal or regulatory proceedings, if decided adversely, is not expected to have a material effect on the Company’s business, financial condition, results of operations or cash flows.

Building Acquisition Commitments — During the third quarter of 2019, the Company entered into agreements to purchase office space in Ukraine and Belarus intended to support the delivery centers in those countries. The Belarus agreement is subject to ordinary closing conditions and requires the Company to pay $22,680 in cash including VAT to the sellers, $1,000 of which has been paid as of September 30, 2019 and is classified as Other noncurrent assets in the condensed consolidated balance sheets. The Company completed the acquisition of the Belarus office space on November 1, 2019. The Ukraine agreement is subject to completion of construction and other ordinary closing conditions and requires the Company to pay approximately $48,900 in cash including VAT to the sellers, $12,000 of which has been paid as of September 30, 2019 and is classified as Other noncurrent assets in the condensed consolidated balance sheets.