Avid 2015 Annual Report Download - page 59

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equipment largely consist of computer hardware and software to support R&D activities and information systems and leasehold
improvements.
Cash Flows from Financing Activities
For the year ended December 31, 2015, the net cash flow provided by financing activities reflected $120.4 million net proceeds
from the Notes due 2020, $10.1 million paid for the Capped Call, $8.0 million paid for the shares of common stock we
repurchased, and $1.2 million issuance costs paid for our Credit Agreement with KeyBank. At December 31, 2015, we had $5.0
million in outstanding borrowings under our Credit Agreement with Keybank, which was repaid on February 26, 2016 without
penalties.
CONTRACTUAL AND COMMERCIAL OBLIGATIONS
The following table sets forth future payments that we were obligated to make at December 31, 2015 under existing lease
agreements and commitments to purchase inventory and other goods and services (in thousands):
Total Less than
1 Year 1 – 3 Years 3 – 5 Years After 5 Years
Operating leases $ 68,031 $ 17,825 $ 25,251 $ 18,242 $ 6,713
Unconditional purchase obligations (a) 39,500 39,500 — — —
$ 107,531 $ 57,325 $ 25,251 $ 18,242 $ 6,713
(a) At December 31, 2015, we had entered into purchase commitments for certain inventory and other goods and services used in our
normal operations. The purchase commitments covered by these agreements are generally for a period of less than one year.
Other contractual arrangements or unrecognized tax positions that may result in cash payments consisted of the following at
December 31, 2015 (in thousands):
Total Less than
1 Year 1 – 3 Years 3 – 5 Years After 5 Years
Unrecognized tax positions and related interest $ 3,217 $ 121 $ 3,096 $ — $ —
Stand-by letters of credit 2,566 723 560 1,283 —
$ 5,783 $ 844 $ 3,656 $ 1,283 $ —
We have the Notes of $125.0 million maturing in June 2020 with semi-annual interest payment of $1.3 million. On February 26,
2016, we entered into the Financing Agreement and borrowed the full amount of the Term Loan, or $100 million, as described in
more detail in Item 1. Business - Recent Events.
We have letters of credit that are used as security deposits in connection with our leased Burlington, Massachusetts headquarters
office space and other leases. In the event of default on the underlying leases, the landlords would, at December 31, 2015, be
eligible to draw against the letters of credit to a maximum of $2.2 million in the aggregate. The letters of credit are subject to
aggregate reductions provided that we are not in default of the underlying leases and meet certain financial performance
conditions. In no case will the letters of credit amounts for the Burlington leases be reduced to below $1.2 million in the
aggregate throughout the lease periods, all of which extend to May 2020.
In addition, we have letters of credit totaling $0.4 million that support our ongoing operations. These letters of credit have various
terms and expire during 2016 and beyond, while some of the letters of credit may automatically renew based on the terms of the
underlying agreements.
OFF-BALANCE SHEET ARRANGEMENTS
Other than operating leases, we do not engage in off-balance sheet financing arrangements or have any variable-interest entities.
At December 31, 2015, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.