Classmates.com 2007 Annual Report Download - page 69

Contractual Obligations
Contractual obligations at December 31, 2007 were as follows (in thousands):
(1)
Total
Less than
1 Year
1 Year to
Less than
3 Years
3 Years to
Less than
5 Years
More than
5 Years
Capital leases(1)
$
14
$
14
$
—
$
—
$
—
Operating leases(2)
47,832
12,087
18,559
9,428
7,758
Telecommunications purchases
8,835
6,824
2,011
—
—
Media purchases
3,463
3,296
167
—
—
Member redemption liability, long
-
term
5,061
—
5,061
—
—
Total
$
65,205
$
22,221
$
25,798
$
9,428
$
7,758
Includes $1,000 of imputed interest.
(2)
The operating lease obligations shown in the table have not been reduced by minimum non
-
cancelable sublease rentals aggregating
$2.6 million. We remain secondarily liable under these leases in the event that any sublessee defaults under the sublease terms. We do not
believe that material payments will be required as a result of our secondary responsibilities.
At December 31, 2007, we had gross unrealized tax benefits of approximately $10.3 million, all of which, if recognized, would have an
impact on our effective tax rate.
Commitments under standby letters of credit at December 31, 2007 are scheduled to expire as follows (in thousands):
Standby letters of credit are maintained pursuant to certain of our lease arrangements. The standby letters of credit remain in effect at
declining levels through the terms of the related leases.
Other Commitments
In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business
partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements,
services to be provided by us, or from intellectual property infringement claims made by third-parties. In addition, we have entered into
indemnification agreements with our directors and certain of our officers and employees that will require us, among other things, to indemnify
them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. We have also agreed to
indemnify certain former officers, directors and employees of acquired companies in connection with the acquisition of such companies. We
maintain director and officer insurance, which may cover certain liabilities arising from our obligation to indemnify our directors and certain of
our officers and employees, and former officers, directors and employees of acquired companies, in certain circumstances.
It is not possible to determine the maximum potential amount of exposure under these indemnification agreements due to the limited history
of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Such indemnification agreements
may not be subject to maximum loss clauses.
66
Total
Less than
1 Year
1 Year to
Less than
3 Years
3 Years to
Less than
5 Years
More than
5 Years
Standby letters of credit
$
2,098
$
331
$
1,387
$
300
$
80