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Table of Contents
52
Net cash provided by financing activities during the year ended December 31, 2013 was $145.2 million and was related
to net proceeds received from our IPO and the exercise of stock options, partially offset by the pay-off of our revolving credit
facility.
Contractual Obligations and Other Commitments
The following is a summary of the contractual commitments associated with our debt and lease obligations (which
include the related interest) as of December 31, 2015 (in thousands):
Less than More than
Total 1 Year 1-3 Years 3-5 Years 5 Years
Commitment fee on unused portion of revolving credit
facility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 104 $ 104 $ — $ — $ —
Operating lease obligations (1) . . . . . . . . . . . . . . . . . . . . . . . 8,683 4,047 3,143 1,406 87
Total contractual obligations . . . . . . . . . . . . . . . . . . . . . . . . $ 8,787 $ 4,151 $ 3,143 $ 1,406 $ 87
_____________________________________________________
(1) Our office and warehouse facilities are leased under operating leases, which expire at various dates through 2021.
As a result of our expanded partnership with Ingram and the exit of our Kentucky warehouse during the year ended
December 31, 2015, we signed an agreement on April 10, 2015 to sublease effectively one half of our warehouse in Kentucky.
We expect this sublease agreement to generate $0.1 million of sublease income per month through the end of November 2016.
In addition, our other liabilities include $2.1 million related to uncertain tax positions as of December 31, 2015. The
timing of the resolution of these positions is uncertain and we are unable to make a reasonably reliable estimate of the timing of
payments in individual years beyond one year. As a result, this amount is not included in the above table.
Off-Balance Sheet Arrangements
Through December 31, 2015, we did not have any relationships with unconsolidated organizations or financial
partnerships, such as structured finance or special purpose entities that would have been established for the purpose of
facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.
Critical Accounting Policies, Significant Judgments and Estimates
Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the
United States (U.S. GAAP). The preparation of these consolidated financial statements requires us to make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures. These
estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily
apparent from other sources. We base our estimates and judgments on historical experience and on various other assumptions
that we believe are reasonable under the circumstances. On an ongoing basis, we evaluate our estimates and assumptions. Our
actual results may differ from these estimates under different assumptions or conditions.
An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions
about matters that are highly uncertain at the time the estimate is made, if different estimates reasonably could have been used,
or if changes in the estimate that are reasonably possible could materially impact the financial statements. We believe that
assumptions and estimates of the following accounting policies involve a greater degree of judgment and complexity.
Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our financial
condition and results of operations. For further information on all of our significant accounting policies, see Note 2 of our
accompanying Notes to Consolidated Financial Statements included in Part II, Item 8, "Consolidated Financial Statements and
Supplementary Data" of this Annual Report on Form 10-K.
Revenue Recognition and Deferred Revenue
We evaluate whether we are acting as a principal or an agent, and therefore whether we would record the gross sales
amount and related costs as revenues or the net amount earned as commissions from the sale of third-party products. Our
determination is based on our evaluation of certain indicators including whether we are the principal in the transaction, are