Enom 2010 Annual Report Download - page 122

Table of Contents
Demand Media, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
(In thousands, except per share amounts)
8. Commitments and Contingencies
Accrued expenses and other liabilities consisted of the following:
December 31,
2009 December 31, 2010
Accrued payroll and related items $ 5,795 $ 9,729
Domain owners' royalties payable 1,078 1,366
Commissions payable 2,597 2,813
Customer deposits 5,014 5,458
Other 6,369 10,204
Accrued expenses and other liabilities $ 20,853 $ 29,570
Leases
The Company conducts its operations utilizing leased office facilities in various locations and leases certain equipment under non-cancellable operating
and capital leases. The Company's leases expire between February 2011 and April 2016.
The following is a schedule of future minimum lease payments under operating and capital leases as of December 31, 2010:
Operating
Leases Capital Leases
Year ending December 31,
2011 $ 4,067 $ 532
2012 3,315 —
2013 2,125 —
2014 930 —
2015 937 —
Thereafter 254 —
Total minimum lease payments $ 11,628 532
Less interest expense (6)
Capital lease obligation $ 526
Rent expense incurred by the Company was $3,601, $3,776 and $4,141, respectively, for years ended December 31, 2008, 2009 and 2010. As of
December 31, 2009 and 2010, accrued expenses and other current liabilities include a deferred rent liability of $634 and $541, respectively.
Letters of Credit
At December 31, 2010, the Company had outstanding letters of credit with the Company's primary commercial bank of approximately $6,500. In May
2008 and in October 2008, under the Company's $100,000 revolving credit agreement (see Note 9—Notes Payable and Revolving Line of Credit), the
Company entered into three new standby letter of credit arrangements totaling $5,400, associated with certain payment arrangements with domain name
registries and a $1,700 standby letter of credit, which
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