
NOTE 12.	COMMITMENTS AND CONTINGENCIES

Operating Leases—The Company has operating lease agreements for office space for administration, research and development and sales and marketing activities in the United States that expire at various dates, with the latest expiration date in 2024.

The Company recognizes rent expense on a straight-line basis over the lease term and records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. Rent expense was $3.6 million and $0.7 million for the three months ended June 30, 2014 and 2013, respectively, and $6.8 million and $1.4 million for the six months ended June 30, 2014 and 2013, respectively.

Approximate remaining future minimum lease payments under these non-cancelable operating leases as of June 30, 2014 were as follows (in thousands):



Year ending December 31,	Future Payments
2014 (remaining 6 months)	$	4,085
2015	15,765
2016	19,363
2017	19,495
2018	18,270
Thereafter	65,417
	$	142,395

Please refer to Note 6 for details of the Company's capital lease commitments as of June 30, 2014 and December 31, 2013.

Letters of Credit and Bank Guarantees—As of June 30, 2014 and December 31, 2013, the Company had irrevocable letters of credit outstanding in the amount of $5.4 million and $3.4 million, respectively, for the benefit of a landlord related to non-cancelable facilities leases. The letters of credit have various expiration dates, with the latest being June 2025.

As of June 30, 2014, the Company had $2.2 million in bank guarantees for security deposits for the Company's London, United Kingdom and Paris, France office lease agreements. These amounts are classified as restricted cash on the Company's condensed consolidated balance sheets.

Indemnification Agreements—In the ordinary course of business, the Company enters into agreements providing for indemnification of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements, and thus there are no claims that the Company is aware of that could have a material effect on the Company’s condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive loss, or condensed consolidated statements of cash flows.

Legal Proceedings—The Company is not currently a party to any legal proceedings, litigation, or claims that could materially affect its business, results of operations, cash flows, or financial position. The Company may, from time to time, be party to litigation and subject to claims incident to the ordinary course of business. As its growth continues, the Company may become party to an increasing number of litigation matters and claims. The outcome of litigation and claims cannot be predicted with certainty, and the resolution of any future matters could materially affect the Company's future financial position, results of operations or cash flows.