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Commitments and Contingencies
3 Months Ended
Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

9. Commitments and Contingencies

Contractual Obligations

The Company leases its office facilities under non-cancelable operating leases that expire at various dates through May 2031. Lease expense for non-cancelable operating leases with free rental periods or scheduled rent increases is recognized on a straight-line basis over the terms of the leases. Improvement reimbursements from landlords of $17.6 million are being amortized on a straight-line basis into lease expense over the terms of the leases.  Certain leases contain optional termination dates. The table below only includes payments up to the optional termination date. If the Company were to extend leases beyond the optional termination date, the future commitments would increase by approximately $81.4 million. 

Included in the table below are operating lease commitments for leases that have not yet commenced of approximately $66.6 million for facilities with maximum lease terms of approximately 9 years in the United States and 10 years in Germany.

Future minimum payments under all operating and finance lease agreements as of March 31, 2020 are as follows:

 

 

Operating

 

 

 

(in thousands)

 

2020

 

$

32,664

 

2021

 

 

48,993

 

2022

 

 

48,433

 

2023

 

 

48,101

 

2024

 

 

46,892

 

Thereafter

 

 

177,527

 

Total

 

$

402,610

 

The Company leases its office facilities under non-cancelable operating leases. Unused spaces are subleased to third parties. Operating sublease income generated under all operating lease agreements for the three months ended March 31, 2020 and 2019 are as follows:

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Operating sublease income

 

$

1,354

 

 

$

566

 

 

As of March 31, 2020, there were no material changes in our vendor commitments under non-cancelable arrangements, as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2019 and related notes thereto contained in the Company’s Annual Report on Form 10-K.

 

Subsequent to March 31, 2020, the Company extended a vendor commitment with an incremental three year contractual obligation of approximately $24 million, payable over the remaining three year term of the amended agreement.

 

Legal Contingencies

From time to time, the Company may become a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, and threatened claims, breach of contract claims, tax, and other matters. The Company currently has no material pending litigation.