Enom 2015 Annual Report Download - page 59

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57
Contractual Obligations
The following table summarizes our outstanding contractual obligations as of December 31, 2015 (in thousands):
Less than
1-3
3-5
More than
1 year
years
years
5 years
Total
Operating lease obligations..................................
$
2,033
$
5,582
$
1,509
$
—
$
9,124
Total contractual obligations ................................
$
2,033
$
5,582
$
1,509
$
—
$
9,124
Included in operating lease obligations are agreements to lease our primary office space in Santa Monica,
California and other locations under various operating leases that have non-cancelable periods ending between February
2018 and February 2020.
At December 31, 2015, we had a cash collateralized standby letter of credit for approximately $1.2 million
associated with one of our leases.
Indemnifications
In the normal course of business, we have provided certain indemnities, commitments and guarantees under which
we may be required to make payments in relation to certain transactions. These indemnities include intellectual property
indemnities to our customers, indemnities to our directors and officers to the maximum extent permitted under the laws
of Delaware, indemnifications related to our lease agreements and indemnifications to sellers or buyers in connection
with acquisitions and dispositions, respectively. In addition, our advertiser, content creation and distribution partner
agreements contain certain indemnification provisions, which are generally consistent with those prevalent in our
industry. We have not incurred significant obligations under indemnification provisions historically, and do not expect to
incur significant obligations in the future. Accordingly, we have not recorded any liability for these indemnities.
Recent Accounting Pronouncements
See Note 2 of our Notes to Consolidated Financial Statements included in Part III, Item 15, “Exhibits, Financial
Statement Schedules” of this Annual Report on Form 10-K.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks in the ordinary course of our business. These risks primarily include interest rate,
foreign exchange, inflation, and concentration of credit risk. To reduce and manage these risks, we assess the financial
condition of our large advertising network providers, large direct advertisers and their agencies and other large
customers when we enter into or amend agreements with them and limit credit risk by collecting in advance when
possible and setting and adjusting credit limits where we deem appropriate. In addition, our recent investment strategy
has been to invest in high credit quality financial instruments, which are highly liquid, are readily convertible into cash
and that mature within three months from the date of purchase.
Foreign Currency Exchange Risk
While relatively small, we have operations and generate revenue from sources outside the United States. We have
foreign currency risks related to our revenue being denominated in currencies other than the U.S. dollar, principally in
the Euro and British Pound Sterling and a relatively smaller percentage of our expenses being denominated in such
currencies. We do not believe movements in the foreign currencies in which we transact will significantly affect future
net earnings or losses. Foreign currency risk can be quantified by estimating the change in cash flows resulting from a
hypothetical 10% adverse change in foreign exchange rates. We believe such a change would not currently have a
material impact on our results of operations. However, if our international operations grow, our risks associated with
fluctuation in currency rates would become greater, and we intend to continue to assess our approach to managing this
risk.