11. Commitments and Contingencies

Capital Leases

During various dates in the fourth quarter of 2016, the Company entered into four capital leases for the acquisition of $1,141 of computer hardware for its data center in Ashburn, Virginia. The term of each lease is three years and the aggregate remaining principal balance as of December 31, 2016 was $1,122.

As of December 31, 2016, future minimum payment commitments required under the Company’s capital leases, are as follows:

	Principal		Interest		Total
2017	$	362	$	115	$	477
2018	384		69		453
2019	376		21		397

Total capital lease commitments	$	1,122	$	205	$	1,327

Operating Commitments

The Company leases office space under non-cancellable operating lease agreements that expire at various dates. In addition, the Company utilizes co-location services for its servers and other computer hardware. These services are multi-year, non-cancellable agreements that are similar in form to a lease on office space. The Company also contracted for other marketing services under various non-cancellable agreements that expire at various dates through 2026.

As of December 31, 2016, future minimum payment commitments required under the Company’s non-cancellable office space leases, including the lease for its headquarters and for its former headquarters (which the Company subleases), co-location agreements and third-party licenses, net of aggregate future sublease income, for the next five years and thereafter are as follows:

2017	$	21,948
2018	5,028
2019	4,835
2020	5,066
2021	4,133
2022 and thereafter	10,642

Total minimum operating commitments	51,652
Less: non-cancelable sublease income	(7,578		)

Total operating commitments	$	44,074

Total rent expense recorded within operating income in the consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 were $3,493, $3,295, and $1,733, respectively. In addition, the Company recorded expense of $1,292 and $353 and income of $1,686 and $578 for the years ended December 2016 and 2015, respectively, within other income, net in the consolidated statements of operations.

Letters of Credit

At December 31, 2016 and 2015, the Company had an outstanding letter of credit of $450 and $600, respectively, related to its former headquarters in New York, New York. Refer to note 10 for further discussion on the Company’s standby letter of credit relating to its New Lease.

At December 31, 2016, the Company had an outstanding letter of credit of $320 related to new office space in Mountain View, California.

Legal Contingencies

The Company is occasionally involved with various claims and litigation during the normal course of business. Reserves are established in connection with such matters when a loss is probable and the amount of such loss can be reasonably estimated. As of December 31, 2016 and 2015, no reserves were recorded. The determination of probability and the estimation of the actual amount of any such loss are inherently unpredictable, and it is therefore possible that the eventual outcome of such claims and litigation could exceed the estimated reserves, if any. Based upon the Company’s experience, current information and applicable law, it generally does not believe it is reasonably probable that any proceedings or possible related claims will have a material effect on its financial statements. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

In November 2013, a putative class action lawsuit was filed in the United States District Court for the Southern District of New York (the “District Court”) against the Company, its directors and certain of its executive officers, alleging certain misrepresentations by the Company in connection with its initial public offering concerning its business and prospects. On March 5, 2015, the District Court granted the Company’s motion to dismiss the lawsuit and entered judgment in the Company’s favor and on February 8, 2016, the United States Court of Appeals for the Second Circuit confirmed the judgment of the District Court.