Vonage 2008 Annual Report Download - page 84

V
O
NA
G
EH
O
LDIN
GS CO
RP
.
N
O
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
—
(C
ontinued
)
(
In thousands, except per share amounts
)
T
he weighted average grant date fair value of
r
estr
i
cte
d
stoc
k
an
d
restr
i
cte
d
stoc
k
un
i
ts
g
rante
d
was
$
1.91,
$
2.40 and
$
6.50 durin
g
the year ende
d
D
ecember 31, 2008 and 2007 and 2006, respectively.
R
et
i
rement
Pl
a
n
In March 2001, we established a 401
(
k
)
Retiremen
t
P
lan (the “Retirement Plan”) available to emplo
y
ees wh
o
meet t
h
ep
l
an
’
se
li
g
ibili
ty requ
i
rements.
P
art
i
c
i
pants ma
y
elect to contribute a percenta
g
e of their compensation t
o
t
he Retirement Plan up to a statutor
y
limit. We ma
y
make
a contribution to the Retirement Plan in the form of a
matc
hi
n
g
contr
ib
ut
i
on.
Th
e emp
l
oyer matc
hi
n
g
con
-
t
ribution is 50
%
o
f
each emplo
y
ee’s contributions not to
exceed
$
6 in 2006, 2007 and 2008. Our ex
p
ense related
t
o the Retirement Plan was $1,307 $1,695 and $1,549 in
2
008, 2007 and 2006, respectivel
y.
N
o
te 10. Commitments an
d
C
ontingencies
C
apital Leases
Assets financed under capital lease agreements are
i
nc
l
u
d
e
di
n propert
y
an
d
equ
i
pment
i
nt
h
e conso
lid
ate
d
b
alance sheet and related de
p
reciation and amortizatio
n
ex
p
ense is included in the consolidated statements o
f
operations
.
O
n March 24, 2005, we entered into a lease for our
h
eadquarters in Holmdel, New Jerse
y
. We took pos-
s
ession o
f
a
p
ortion o
f
the o
ff
ice s
p
ace at the ince
p
tion o
f
th
e
l
ease, anot
h
er port
i
on on
A
u
g
ust 1, 2005 an
d
too
k
over the remainder o
f
the o
ff
ice space in earl
y
2006. The
overall lease term is twelve years and
f
ive months. I
n
connection with the lease, we issued a letter of credit
which requires $7,000 of cash as collateral, which is
classi
f
ied as restricted cash. The gross amount o
f
the
b
uildin
g
recorded under capital leases totaled $25,709 as
o
f
December 31, 2008 and accumulated depreciation wa
s
approximately
$
6,654 as of December 31, 2008
.
O
perating Lease
s
W
e
h
ave entere
di
nto var
i
ous non-cance
l
a
bl
e operat
-
i
ng lease agreements
f
or certain o
f
our existing o
ff
ice an
d
t
elecommunications co-location s
p
ace in the U.
S
. and for
i
nternat
i
ona
l
su
b
s
idi
ar
i
es w
i
t
h
or
igi
na
ll
ease per
i
o
d
s exp
i
r-
i
ng between 2009 and 2010. We are committed to pay
a
p
ortion of the buildings’ operating expenses a
s
d
eterm
i
ne
d
un
d
er t
h
ea
g
reements.
At December 31, 2008, future payments under capital leases and minimum payments under non-cancelable operatin
g
leases are as
f
ollows over each o
f
the next
f
ive
y
ears and therea
f
ter
:
D
ecem
b
er
3
1
, 2008
C
a
p
ital
Leases
Operating
Leases
2009
$
3
,
960
$
3
,
77
4
2010
4,038 620
2011
4,118 –
2012
4,200 –
2013
4,284 –
T
hereafter
16,442 –
T
ota
l
m
i
n
i
mum pa
y
ments requ
i
re
d
$
37
,
042
$
4
,
39
4
Less amounts representin
g
interest
(
14,843
)
M
inimum
f
uture payments o
f
principal 22,19
9
C
urrent
p
ortio
n
1,252
L
on
g
-term portio
n
$
20,947
R
ent expense was $7,507 for 2008, $5,795 for 2007
and
$
801 for 2006.
S
tand-by Letters of
C
redi
t
We have stand-by letters of credit totaling
$
17,56
2
and $17,254, as of December 31, 2008 and 2007,
r
espect
i
ve
l
y
.
End-User
C
ommitments
W
e are o
blig
ate
d
to prov
id
ete
l
ep
h
one serv
i
ces to our
r
eg
i
stere
d
en
d
-users.
Th
e costs re
l
ate
d
to t
h
e potent
i
a
l
u
tilization of minutes sold are expensed as incurred. Our
o
blig
at
i
on to prov
id
et
hi
s serv
i
ce
i
s
d
epen
d
ent on t
h
e
p
roper functioning of systems controlled by third-party
s
ervice providers. We do not have a contractual servic
e
r
elationship with some of these providers.
F
-
24
V
O
NA
G
E ANN
U
AL REP
O
RT 200
8