Chegg 2015 Annual Report Download - page 118

Table of Contents
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Note 8. Balance Sheet Details
Other Current Assets
Other current assets consist of the following (in thousands):
December 31,
2015 2014
Reimbursement from Ingram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,875 $ 751
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,857 3,113
$ 31,732 $ 3,864
Accrued Liabilities
Accrued liabilities consist of the following (in thousands):
December 31,
2015 2014
Accrued shipping for cycle returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,355 $ 539
Refund reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,538 6,174
Taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,913 4,851
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,474 19,619
$ 35,280 $ 31,183
Note 9. Debt Obligations
In August 2013, we entered into a revolving credit facility with an aggregate principal amount of $50.0 million (the
Revolving Credit Facility). In June 2014, we amended the Revolving Credit Facility to reduce the aggregate principal amount
to $40.0 million with an accordion feature that, subject to certain financial criteria, allows us to borrow up to a total of $75.0
million. In August 2015, we amended the Revolving Credit Facility to reduce the financial covenant consolidated EBITDA
requirements beginning the quarter ended June 30, 2015 and to reduce the aggregate principal amount to $30.0 million with an
accordion feature that, subject to certain financial criteria, allows us to borrow up to a total of $65.0 million beginning the
quarter ended December 31, 2015. The 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 a LIBOR based interest rate plus additional interest of up to
4.5% depending on our leverage ratio. The Revolving Credit Facility will expire in August 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 (benefit from)
income taxes, depreciation and amortization expense, non-cash share-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 the end of each quarter, based on the ratio of the consolidated outstanding debt balance to consolidated EBITDA for
the period of the four fiscal quarters most recently ended. As of December 31, 2015, we were in compliance with these
financial covenants.
Note 10. Stock Warrants
In connection with our IPO in November 2013, our previously outstanding convertible preferred stock warrants were
converted into 1,118,282 common stock warrants at a weighted average exercise price of $5.16 per
At the time of conversion, the common stock warrants were valued using the Black-Scholes Merton option-pricing
valuation model using the following weighted average key