8x8 2016 Annual Report Download - page 72

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At March 31, 2016, future minimum annual lease payments under non-cancelable operating leases were as follows (in thousands):
Year ending March 31:
2017 $ 3,663
2018 3,552
2019 3,645
2020 2,862
2021 and Thereafter 283
Total $ 14,005
Rent expense for the years ended March 31, 2016, 2015 and 2014 was $2.1 million, $1.8 million and $1.5 million, respectively.
CapitalLeases
The Company has non-cancelable capital lease agreements for office and computer equipment bearing interest at various rates. At March 31, 2016, future
minimum annual lease payments under non-cancelable capital leases were as follows (in thousands):
Year ending March 31:
2017 $ 608
2018 540
2019 349
Total minimum payments 1,497
Less: Amount representing interest (93)
1,404
Less: Short-term portion of capital lease obligations (588)
Long-term portion of capital lease obligations $ 816
Capital leases included in computer and office equipment were approximately $1.6 million and $0.5 million at March 31, 2016 and 2015, respectively. Total
accumulated amortization was approximately $0.1 million and $0.3 million at March 31, 2016 and 2015, respectively. Amortization expense for assets recorded
under capital leases is included in depreciation expense.
MinimumThirdPartyCustomerSupportCommitments
In the third quarter of 2010, the Company amended its contract with one of its third party customer support vendors containing a minimum monthly commitment of
approximately $0.4 million effective April 1, 2010. As the agreement requires a 150-day notice to terminate, the total remaining obligation under the contract was
$2.2 million at March 31, 2016.
MinimumThirdPartyNetworkServiceProviderCommitments
The Company entered into contracts with multiple vendors for third party network service which expire on various dates in fiscal 2017 through 2018. At March 31,
2016, future minimum annual payments under these third party network service contracts were as follows (in thousands):
Year ending March 31:
2017 $ 2,572
2018 891
Total minimum payments $ 3,463
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