Etsy 2015 Annual Report Download - page 104
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Etsy, Inc.
Notes to Consolidated Financial Statements
equipment. As of December 31, 2015, the Company has leased approximately $17.2 million of computer equipment using the ePlus Line.
The Company had a credit agreement with TriplePoint Capital, LLC (“TriplePoint”), which provided the Company with a credit line of up to $20.0 million
for computer equipment leases (the “TriplePoint Line”). The TriplePoint Line allowed the Company to order equipment from any vendor. TriplePoint
purchased the equipment on behalf of the Company and leased it back to the Company. The leases have a 36-month term, interest rate of 8.25%, and are
payable in equal monthly installments. The Company stopped buying equipment under the TriplePoint Line in June 2012 and paid off the remaining lease
obligations during 2015 in accordance with the terms of the credit agreement. At December 31, 2015, the Company no longer had any leased computer
equipment under the TriplePoint Line.
For the years ended December 31, 2013, 2014 and 2015, the accompanying consolidated statement of operations includes charges of approximately $0.2
million, $0.4 million and $1.2 million for interest expense, respectively, related to the equipment leased using the TriplePoint Line and ePlus Lines.
In 2014, the Company entered into a new lease for office space in Dublin, Ireland expiring in 2024. In 2015, the Company entered into a new lease for office
space in London, UK expiring in 2025, and entered into lease extensions for existing office space in San Francisco, California and Hudson, New York
expiring in 2020 and 2021, respectively. Rent expense for these operating leases is recognized over the term of each respective lease on a straight-line basis.
In addition, the Company leases other office facilities under shorter terms and cancellable leases.
Total rent expense for the years ended December 31, 2013, 2014 and 2015 was $2.4 million, $3.6 million and $5.1 million respectively.
In May 2014, the Company entered into a 10-year lease agreement for approximately 199,000 rentable square feet of office space in Brooklyn, New York for
the Company’s new headquarters, which commenced in 2015. Of the total new office space, approximately 172,000 rentable square feet is being accounted
for as a build-to-suit lease and approximately 27,000 rentable square feet located in an adjacent building is being accounted for as an operating lease. In
connection with the lease agreement, the Company established a $5.3 million collateral account, reflected in the restricted cash balance on the consolidated
balance sheet.
The following table represents the Company’s commitments under its current capital, operating, and build-to-suit lease agreements as of December 31, 2015
(in thousands):
Periods ending
2016 $ 7,011
$ 3,716
$ —
2017 5,946
2,912
5,883
2018 2,413
3,901
9,381
2019 —
3,951
9,451
2020 —
3,604
9,522
Thereafter —
13,801
59,188
Total minimum payments required $ 15,370
$ 31,885
$ 93,425
Amounts representing interest 2,189
Present value of net minimum payments 13,181
Current maturities 5,610
Long-term payment obligations $ 7,571
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