Avid 2011 Annual Report Download - page 77

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L. LONG-TERM LIABILITIES
Long-term liabilities consisted of the following at December 31, 2011 and 2010 (in thousands):
Long-term deferred tax liabilities, net
Long-term deferred revenue
Long-term deferred rent
Long-term accrued restructuring
Long-term deferred compensation
2011
$ 1,754
9,378
10,666
3,185
2,902
$ 27,885
2010
$ 2,154
5,874
11,094
3,138
2,415
$ 24,675
M. COMMITMENTS AND CONTINGENCIES
Operating Lease Commitments
The Company leases its office space and certain equipment under non-cancelable operating leases. The future minimum lease
commitments under these non-cancelable leases at December 31, 2011 were as follows (in thousands):
Year
2012
2013
2014
2015
2016
Thereafter
Total
$ 22,312
19,749
17,005
12,096
12,143
35,866
$ 119,171
Included in the operating lease commitments above are obligations under leases for which the Company has vacated the
underlying facilities as part of various restructuring plans. These leases expire at various dates through 2017 and represent an
aggregate obligation of $9.9 million through 2017. The Company does not currently have sublease income related to the
restructured space. The Company has restructuring accruals of $6.9 million at December 31, 2011, which represents the difference
between this aggregate future obligation and expected future sublease income under actual or estimated potential sublease
agreements, on a net present value basis, as well as other facilities-related obligations (see Note Q).
The Company's leases for corporate office space in Burlington, Massachusetts, which expire in May 2020, contain renewal
options to extend the respective terms of each lease for up to two additional five-year periods. The Company has some leases for
office space that have early termination options, which, if exercised by the Company, would result in penalties of approximately
$0.9 million in the aggregate. The future minimum lease commitments above include the Company's obligations through the
original lease terms and do not include these penalties.
The accompanying consolidated results of operations reflect rent expense on a straight-line basis over the term of the leases. Total
expense under operating leases, net of operating subleases, was approximately $20.0 million, $20.2 million and $20.5 million for
the years ended December 31, 2011, 2010 and 2009, respectively. Total rent received from the Company's operating subleases
was approximately $1.1 million and $1.8 million for the years ended December 31, 2010 and 2009, respectively. The Company
did not receive any sublease income during the year ended December 31, 2011.
The Company has letters of credit at a bank that are used as security deposits in connection with the Company's Burlington,
Massachusetts office space. In the event of default on the underlying leases, the landlords would, at December 31, 2011, be
eligible to draw against the letters of credit to a maximum of $2.6 million in the aggregate. The letters of credit are subject to
aggregate reductions of approximately $0.4 million at the end of each of the second, third and fifth years, provided the Company
is not in default of the underlying leases and meets certain financial performance conditions. In no case will the letters of credit
amounts be reduced to below $1.3 million in the aggregate throughout the lease periods, all of which extend to May 2020. At
December 31, 2011, the Company was not in default of any of the underlying leases.