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Leases (Notes)
3 Months Ended
Mar. 31, 2016
Leases [Abstract]  
Leases of Lessee Disclosure [Text Block]
. Leases
In March 2015, we entered into an agreement to lease approximately 23,000 square feet of office space in a commercial building in Chicago, Illinois. The lease term commenced in July 2015 and will expire in September 2027. We established a $0.4 million letter of credit as security for the lease, which is recorded on the consolidated balance sheet as of March 31, 2016 as restricted cash.
Under the terms of the lease, we were required to establish an escrow account in the amount of $1.9 million, which was used to fund a portion of the leasehold improvements that we placed into service. We own the leasehold improvement assets until the expiration of the lease period and, as a result, capitalized the leasehold improvement assets on the balance sheet as they were constructed. We are amortizing them using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements. As of December 31, 2015, we had disbursed the entirety of the escrow account.
In March 2016, we exercised the expansion option under the original lease agreement to occupy additional space within the same commercial building in Chicago, Illinois. The expansion space is the same size as our original leased facility, and we anticipate the premises to be ready for occupancy by Q3 2016. As the lease expansion commencement date has not yet occurred, there were no accounting implications as of March 31, 2016.
We recognize rent expense for the minimum lease payments on a straight-line basis over the term of the lease. The amount of rent expense in excess of cash payments is classified as deferred rent. Any lease incentives such as rent abatements received are deferred and amortized over the term of the lease. Future minimum lease payments for all of our operating leases are disclosed in Note 4 to the condensed consolidated financial statements.