Chegg 2013 Annual Report Download - page 133

CHEGG, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 8. Balance Sheet Details
Accrued liabilities consist of the following (in thousands):
December 31,
2013 2012
Accrued book purchases ............................ $ 1,905 $ 3,734
Accrued shipping for cycle returns .................... 2,929 68
Chegg credit ..................................... 3,124 2,763
Other ........................................... 13,312 13,665
Accrued liabilities ................................. $21,270 $20,230
Other liabilities consist of the following (in thousands):
December 31,
2013 2012
Put option liability ................................... $1,521 $1,062
Deferred rent, noncurrent ............................. 1,803 1,605
Long-term tax liability ............................... 1,281 1,040
Other ............................................. 374 575
Other liabilities ..................................... $4,979 $4,282
Note 9. Debt Obligations
In March 2011, we obtained a revolving credit facility totaling $55.0 million. The revolving credit facility
carried an interest rate of LIBOR plus 5% or ABR plus 4% per annum, as elected by us, and expired in
July 2013. No amounts were borrowed under this facility when it expired. We drew down $33.3 million in
proceeds and made $12.8 million in payments against the revolving credit facility during 2011. In April 2012, we
paid off the balance of the revolving credit facility.
In May 2012, we entered into a term loan facility with the aggregate principal of $20.0 million, or the Term
Loan, with interest payable on a monthly basis at the rate of 11.5%. In connection with the Term Loan, we issued
preferred stock warrants to the lender. We were to pay an end-of-term fee of $850,000 and repay the outstanding
balance in November 2013, or prepay the outstanding balance if certain ratios were not maintained. As of
December 2012, we had an outstanding balance of $20.0 million under this agreement. The end-of-term fee was
being accrued over the term of the loan to interest expense and was included in other liabilities on our
consolidated balance sheet.
On August 12, 2013, we entered into a new $50.0 million revolving credit facility with an accordion feature
subject to certain financial criteria that would allow us to draw down to $75.0 million in total, with a different
financial institution. The new revolving credit facility carries, at our election, a base interest rate of the greater of
the Federal Funds Rate plus 0.5% or one-month LIBOR plus 1%, or Prime, or a LIBOR based interest rate plus
additional interest of up to 4.5% depending on our leverage ratio. The revolving credit facility will expire on
August 12, 2016. The revolving credit facility requires us to repay the outstanding balance at expiration, or to
prepay the outstanding balance, if certain reporting and financial covenants are not maintained. These financial
covenants are as follows: (1) maintain specified quarterly levels of consolidated EBITDA, which is defined as net
income (loss) before tax plus interest expense, provision for income taxes, depreciation and amortization
expense, non-cash stock-based compensation expense and costs and expenses not to exceed $2.0 million in
closing fees related to the revolving credit facility; and (2) maintain a leverage ratio greater than 1.5 to 1.0 as of
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