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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
On December 15, 2009, the Company entered into a lease agreement for approximately 125,000 square feet of office space located at 1050 Enterprise Way in Sunnyvale, California, which commenced on July 1, 2010 and expired on June 30, 2020. The office space was used for the Company’s corporate headquarters, as well as engineering, sales, marketing and administrative operations and activities. Refer to Note 10, “Leases,” for information regarding the Company’s lease agreement for a new corporate headquarters in San Jose, California.
On November 17, 2017, the Company entered into an Indenture with U.S. Bank National Association, as trustee, relating to the issuance by the Company of $172.5 million aggregate principal amount of the 2023 Notes. Refer to Note 12, “Convertible Notes,” for additional details.
As of December 31, 2020, the Company’s material contractual obligations were as follows (in thousands):
Total20212022202320242025
Contractual obligations (1) (2) (3)
Software licenses (4)
$18,970 $12,541 $6,429 $— $— $— 
Acquisition retention bonuses (5)
6,370 3,370 3,000 — — — 
Convertible notes172,500 — — 172,500 — — 
Interest payments related to convertible notes
5,936 2,372 2,372 1,192 — — 
Total
$203,776 $18,283 $11,801 $173,692 $— $— 
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(1)    The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $25.5 million including $23.6 million recorded as a reduction of long-term deferred tax assets and $1.9 million in long-term income taxes payable, as of December 31, 2020. As noted below in Note 19, “Income Taxes,” although it is possible that some of the unrecognized tax benefits could be settled within the next 12 months, the Company cannot reasonably estimate the outcome at this time.
(2)    For the Company’s lease commitments as of December 31, 2020, refer to Note 10, “Leases.”
(3)    The Company’s other contractual obligations as of December 31, 2020 were not material.
(4)    The Company has commitments with various software vendors for agreements generally having terms longer than one year.
(5)    In connection with the acquisitions of Northwest Logic in August 2019 and the Secure Silicon IP and Protocols business in December 2019, the Company is obligated to pay retention bonuses to certain employees subject to certain eligibility and acceleration provisions including the condition of employment.
Indemnifications
From time to time, the Company indemnifies certain customers as a necessary means of doing business. Indemnification covers customers for losses suffered or incurred by them as a result of any patent, copyright, or other IP infringement or any other claim by any third party arising as result of the applicable agreement with the Company. The Company generally attempts to limit the maximum amount of indemnification that the Company could be required to make under these agreements to the amount of fees received by the Company, however, this is not always possible. The fair value of the liability as of December 31, 2020 and 2019 was not material.