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SUPPORTSOFT, INC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 3. Intangible assets (Continued)
The following table summarized the components of intangible assets (in thousands).
Years as of December 31,
2007
2006
Amortizable intangible assets $ 90 $ 5,519
Accumulated amortization — (2,614)
Indefinite-life intangible assets 250 250
Total intangible assets, net $ 340 $ 3,155
Note 4. Commitments and Contingencies
Headquarters office lease. In November 2006, the Company entered into a noncancelable lease agreement for its new headquarters office facility located
in Redwood City, California. The lease commenced on January 1, 2007 and ends on July 31, 2012. The annual fixed rents are $760,000, $783,000, $783,000,
$805,000 and $483,000 for the years ended 2008, 2009, 2010, 2011 and 2012, respectively, as long as the Company is not in default under the term of the lease.
In addition to base rent, commencing on the first anniversary of the lease and for each year thereafter, the Company will pay as additional rent, with an amount
equal to its proportionate share, or 27% initially, of the amount exceeding the landlord's operating expenses incurred in calendar 2007. The Company issued an
unsecured irrevocable standby letter of credit of $400,000 to the landlord as a security deposit under the lease. If the Company is not then in default under the
lease, the deposit amount may be reduced to $300,000 on February 1, 2009, $200,000 on February 1, 2010, and $100,000 on February 1, 2011.
Other facility leases. The Company leases its facilities under noncancelable operating lease agreements, which expire at various dates through 2012.
Facility rent expense pursuant to all operating lease agreements was approximately $2.1 million, $1.5 million, and $1.8 million for the years ended December 31,
2007, 2006, and 2005, respectively.
As of December 31, 2007, minimum payments due under all noncancelable lease agreements including our new headquarters lease were as follows (in
thousands):
Years ending December 31,
Operating Leases
2008 $ 1,791
2009 1,607
2010 1,544
2011 976
2012 483
Total minimum lease and principal payments $ 6,401
Tax contingencies
We are required to make periodic filings in the jurisdictions where we are deemed to have a presence for tax purposes. We have undergone audits in the past
and have paid assessments arising from these audits. To date, such amounts have not been material. We evaluate estimated losses that
68
Source: SUPPORTSOFT INC, 10-K, March 13, 2008