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Long-term obligations (Details) - USD ($)
$ in Thousands
Dec. 31, 2016
Dec. 31, 2015
Vendor obligations    
Capital lease obligations [1] $ 224 $ 423
Deferred lease payments [2] 705 707
Microsoft licenses [3] 0 360
Acquisition related liability [4] 1,492 993
Pension obligations    
Accrued pension liability 2,616 2,535
Long-term Debt 5,037 5,018
Less: Current portion of long-term obligations 1,120 1,582
Totals $ 3,917 $ 3,436
[1] In March 2014, the Company entered into an equipment sale leaseback agreement with a financing company. The cash proceeds from the transaction were $0.9 million. The Company leased the equipment for a period of 36 months at an effective interest rate of approximately 6% and has the option to purchase the equipment at a nominal amount at the end of the lease term. The Company has accounted for this transaction as a financing arrangement, wherein the equipment remains on the Company’s books and will continue to be depreciated.
[2] Deferred lease payments represents the effect of straight-lining non-financing type lease payments over the respective lease terms.
[3] In March 2014, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2017. Pursuant to this agreement, the Company is obligated to pay approximately $0.4 million annually over the term of the agreement. As of December 31, 2016, the Company has paid its obligation in full.
[4] On September 30, 2016, the Company and the other parties involved in the acquisition of MediaMiser amended the terms on which a subsidiary of the Company is required to make a supplemental purchase price payment for MediaMiser. Prior to the amendment, the amount of the supplemental purchase price payment was to be determined by the achievement of certain financial thresholds and was in no event to exceed $3.8 million (C$5 million). The amendment fixed the amount of the supplemental purchase price payment at $1.5 million (C$2 million) payable in two equal installments on March 31, 2017 and 2018 to designated recipients, except that no payments will be made to designated recipients who fail to satisfy specified conditions. The Company has the option to pay up to 70% of the supplemental amount in shares of Innodata Inc. stock.