Enom 2012 Annual Report Download - page 105

F-22
The following is a schedule of future minimum lease payments under operating and capital leases as of December 31,
2012:
Operating
Leases Capital Leases
Year ending December 31,
2013 $ 4,044 $ 735
2014 4,525 732
2015 4,515 61
2016 3,857 —
2017 3,138 —
Thereafter 6,865 —
Total minimum lease payments $ 26,944 1,528
Less interest expense (63)
Capital lease obligation $ 1,465
Rent expense incurred by the Company was $4,141, $4,914 and $4,957, respectively, for years ended December 31,
2010, 2011 and 2012. As of December 31, 2011 and 2012, accrued expenses and other current liabilities include a deferred rent
liability of $1,208 and $913, respectively and $876 and $605 was included in other long-term liabilities as at December 31,
2011 and 2012, respectively.
Letters of Credit
At December 31, 2012, the Company had outstanding standby letters of credit issued via the administrative agent
under the Company's revolving credit facility of approximately $9,561 primarily associated with certain payment arrangements
with domain name registries as well as security agreements related to real estate leases.
Revolving Line of Credit Agreements
The Company entered into a credit agreement (the “Credit Agreement”) with a syndicate of commercial banks. The
Credit Agreement provides for a $105,000, five year revolving credit facility, with the right (subject to certain conditions) to
increase such facility by up to $75,000 in the aggregate. The syndicate of commercial banks under the Credit Agreement have
no obligation to fund any increase in the size of the facility.
The collateral for the Credit Agreement consists of substantially all tangible and intangible assets of the Company,
under perfected security interests, including pledges of the common stock of all domestic subsidiaries and a portion of the
equity of the foreign subsidiaries of the Company. The Credit Agreement contains customary events of default and affirmative
and negative covenants and restrictions, including certain financial covenants such as a minimum fixed charge ratio and a
maximum total net leverage ratio. As of December 31, 2011 and 2012, the Company was in compliance with these covenants,
and those under the previous credit facility.
In addition, the Credit Agreement contains covenants restricting the Company's ability to, among other things, incur
additional debt or incur or permit to exist certain liens; pay dividends or make other distributions or payments on capital stock;
make certain investments and acquisitions; enter into transactions with affiliates; transfer or sell substantially all of the
Company's assets.
At December 31, 2011 and 2012, the aggregate borrowings available under the Credit Agreement in place at that date
was approximately $98,000 and $95,400. At December 31, 2011 and 2012, no amounts were outstanding under the Credit
Agreements.
Total debt issuance costs associated with the Credit Agreement were $1,035, which are being amortized as interest
expense on a straight-line basis over the five year term of the Credit Agreement. For the years ended December 31, 2010, 2011
and 2012, $386, $568 and $207 respectively, of debt issuance costs were amortized and included in interest expense. Interest
expense for the year ended December 31, 2011 includes $240 relating to the acceleration of unamortized debt issuance costs
from the credit agreement replaced during that year. At December 31, 2011 and 2012, net debt issuance costs of $951 and $744
are included in other current assets and other assets, non-current, respectively.