Support.com 2011 Annual Report Download - page 57

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The estimated future amortization expense of purchased technology as of December 31, 2011 is as follows (in thousands):
Fiscal Year Amount
2012 $ 83
2013 60
Total $ 143
Remaining useful life 1.8 years

 In November 2006, we entered into a non-cancelable lease agreement for our 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 $483,000 for the year
ending December 31, 2012, as long as we are not in default under the terms of the lease. We issued an unsecured irrevocable standby letter of credit of
$100,000 to the landlord as a security deposit under the lease on November 1, 2011.
 We lease our facilities under non-cancelable operating lease agreements, which expire at various dates through 2014.
Total facility rent expense pursuant to all operating lease agreements was approximately $621,000, $599,000, and $947,000 for the years ended
December 31, 2011, 2010, and 2009, respectively.
As of December 31, 2011, minimum payments due under all non-cancelable lease agreements (including for offices that have been impaired)
were as follows (in thousands):
   
2012 $ 612
2013 35
2014 13
Total minimum lease and principal payments $ 660
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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. Our India entity was issued notices of income tax assessment pertaining to the
2004-2005, 2005-2006, 2006-2007 and 2007-2008 fiscal years. The notices claimed that the transfer price used in our inter-company agreements
with our India entity was too low, and that the price should be increased. We believe our current transfer pricing position is more likely than not to be
sustained. We believe that this will be resolved through the normal judicial appeal process used in India, and have submitted our case to the court. If
we do not win our case we may incur additional payments, potentially up to $327,000.
We may be subject to other income tax assessments in the future. We evaluate estimated expenses that could arise from those assessments in
accordance with ASC 740. We consider such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable
estimate on the amount of expenses. We record the estimated liability amount of those assessments that meet the definition of an uncertain tax position
under ASC 740.
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In November 2001, a class action lawsuit was filed against us, two of our former officers and certain underwriters in the United States District
Court for the Southern District of New York. Similar complaints have been filed against 55 underwriters and more than 300 other companies and
other individual officers and directors of those companies; the consolidated case is , No. 21 MC 92
(SAS) (S.D.N.Y.). The lawsuit, which sought unspecified damages, fees and costs, alleged that our registration statement and prospectus dated
July 18, 2000 for the issuance and initial public offering of 4,250,000 shares of our common stock contained material misrepresentations and/or
omissions related to alleged inflated commissions received by the underwriters of the offering. On April 1, 2009, all parties entered into a Stipulation
and Agreement of Settlement that would resolve all claims and dismiss the case against us and our former officers, without any payment by us or our
former officers. On October 5, 2009, the court issued an order approving the settlement. Certain other parties appealed the settlement, and the appeal
was subsequently dismissed by stipulation of the other parties on January 9, 2012. This concludes the litigation.
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