Shutterfly 2009 Annual Report Download - page 91

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SHUTTERFLY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 7 — Commitments and Contingencies
Leases
The Company leases office and production space under various non-
cancelable operating leases that expire no later than November 2014.
Rent expense was $2,786,000, $1,925,000 and $1,295,000, for the years ended December 31, 2008, 2007 and 2006, respectively.
Rent expense is recorded on a straight-
line basis over the lease term. When a lease provides for fixed escalations of the minimum rental
payments, the difference between the straight-
line rent charged to expense, and the amount payable under the lease is recognized as deferred
rent.
The Company leases certain equipment, software and colocation services under non-cancelable capital leases, operating leases or long-
term
agreements that expire at various dates through th e year 2010.
The leased equipment is subject to a security interest. The total outstanding
obligation under capital leases at December 31, 2008 and 2007 was $107,000 and $915,000, respectively.
At December 31, 2008, the total future minimum payments under non-cancelable operating and capital leases are as follows:
Purchase obligations consist of non-cancelable marketing agreements, co-
location services and printing equipment rental. As of
December 31, 2008, the Company’s purchase obligations totaled $7,529,000.
Operating
Leases
Capital
Leases
Year Ending:
In thousands
2009
$
3,823
$
93
2010
3,676
12
2011
2,302
6
2012
2,371
—
2013
2,441
—
Thereafter
4,592
—
Total minimum lease payments
$
19,205
$
111
Less: amount representing interest
(4
)
Present value of future minimum lease payments
107
Less: current portion
(90
)
Non
-
current portion of capital lease obligations
$
17
89