Juno 2014 Annual Report Download - page 124

Table of Contents



The Company leases certain office space, data centers, and office equipment under operating leases expiring at various periods through 2022. Certain of
the Company's operating leases include rent holidays, as well as rent escalation provisions. The Company records rent expense on a straight-line basis over
the lease term. Rent expense under operating leases for the years ended December 31, 2014, 2013 and 2012 was $7.5 million, $10.3 million and
$11.7 million, respectively.
In December 2010, the Company's MyPoints subsidiary entered into a sublease agreement with Blackrock, Inc., which was a five percent or more
stockholder for part of the year ended December 31, 2014, and Blackrock Realty Advisors, Inc., whereby MyPoints leased office space in San Francisco,
California through December 2014.

Letters of credit are maintained pursuant to certain of the Company's lease arrangements and contractual obligations. The amounts of letters of credit are
subject to change based on the terms of the related agreements. Certificates of deposit totaling $0.6 million and $0.2 million at December 31, 2014 and 2013,
respectively, were maintained by the Company in connection with certain of these letters of credit and were included in other current assets and other assets
in the consolidated balance sheets. Commitments under letters of credit at December 31, 2014 were scheduled to expire as follows (in thousands):

At December 31, 2014, the Company had $1.9 million of purchase obligations and $8.7 million of other liabilities. At December 31, 2014, the Company
had liabilities for uncertain tax positions totaling $11.3 million, of which $7.8 million, at December 31, 2014, was expected to be due in less than one year
and is included in the $8.7 million of other liabilities discussed above. The Company is not able to reasonably estimate when or if cash payments for long-
term liabilities related to uncertain tax positions will occur.
In connection with the mutual agreements to terminate the employment of certain executive officers, the Company has cash obligations totaling
approximately $0.9 million, which was included in the $8.7 million discussed above and will be paid in full by March 31, 2015.
In the ordinary course of business, the Company may provide indemnification commitments of varying scope and terms to customers, vendors, lessors,
sureties and insurance companies, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the
Company's breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. In
addition, the Company has entered into indemnification agreements with its directors and certain of its officers and employees that will require the Company,
among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. The
Company has also agreed to indemnify certain former officers, directors and employees of acquired companies in connection with
F-42
    
         
Letters of credit $ 627 $ 162 $ — $ — $ — $ — $ 465