Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Operating Leases

We have entered into various noncancelable operating lease agreements primarily for our offices. We recognize operating lease costs on a straight-line basis over the term of each agreement, considering provisions such as free or escalating base monthly rental payments or deferred payment terms. We record rent expense associated with operating lease obligations in operating expenses in the consolidated statements of operations.

As of December 31, 2019, our net minimum payments under the noncancelable operating leases are as follows:



	Minimum Lease Payments		Sublease Income		Net Minimum Lease Payments
	(in thousands)
2020	$	3,945	$	37	$	3,908
2021	5,093		38		5,055
2022	5,272		39		5,233
2023	5,181		40		5,141
2024	1,797		41		1,756
Thereafter	3,068		—		3,068
Total future minimum payments	$	24,356	$	195	$	24,161

As of December 31, 2018, our net minimum payments under the noncancelable operating leases are as follows:



Year Ending December 31,	Minimum Lease Payments		Sublease Income		Net Minimum Lease Payments
	(in thousands)
2019	$	2,027	$	22	$	2,005
2020	824		23		801
2021	729		24		705
2022	748		24		724
2023	606		25		581
Thereafter	296		25		271
Total future minimum payments	$	5,230	$	143	$	5,087

Total rent expense paid to third parties was $2.8 million, $1.7 million and $0.7 million during the years ended December 31, 2019, 2018 and 2017, respectively.

In 2017 and 2019, we entered into sublease arrangements, as a sublessor, with a stockholder for space for our Chicago, Illinois office. See further discussion in Note 15. Rent expense incurred for sublease arrangements for the years ended December 31, 2019, 2018 and 2017 was not material.

In June 2019, we entered into an amendment to the lease agreement for our Mountain View office. The amendment makes changes to the original lease including (i) the addition of approximately 16,100 square feet of office space and (ii) an extension of our current lease term. The total future lease obligation is $12.7 million over the new lease term from July 2019 through January 2024.

In August 2019, we executed a lease amendment for office space from which our Chicago office operates. The total future lease obligation is approximately $8.4 million. The associated lease term ends in December 2026.

In November 2019, we executed a lease agreement for our office space in Denver, Colorado. The total future lease obligation is approximately $1.6 million. The associated lease term ends in January 2026.

Purchase Commitments

We purchase certain non-cancelable cloud-based subscription based software that has terms more than twelve months. As of December 31, 2019, the remaining purchase commitment was $3.1 million.

Legal Matters

From time to time, we become involved in claims and other legal matters arising in the ordinary course of business. We investigate these claims as they arise. Although claims are inherently unpredictable, we are currently not aware of any matters that, if determined adversely to us, would individually or taken together have a material adverse effect on our business, results of operations, financial position or cash flows.

We record liabilities for legal and other contingencies when losses are probable and estimable.

Although the results of litigation and claims are inherently unpredictable, we have not recorded an accrual for such contingencies as we believe that there was not at least a reasonable possibility that we had incurred a material loss with respect to such loss contingencies as of December 31, 2019 and 2018.

Indemnification

We enter into indemnification provisions under our agreements with other companies in the ordinary course of business, including, but not limited to, clients, business partners, landlords, contractors and parties performing our research and development. Pursuant to these arrangements, we agree to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party as a result of our activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments we could be required to make under these agreements is not determinable. We have never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the fair value of these agreements is not material. We maintain commercial general liability insurance and product liability insurance to offset certain of our potential liabilities under these indemnification provisions.

In addition, we indemnify our officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, there have been no claims under these indemnification provisions.