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F-28 VONAGE ANNUAL REPORT 2013
Information regarding the options outstanding as of December 31, 2013 is summarized below:
Stock Options Outstanding Stock Options Exercisable
Range of
Exercise Prices
Stock
Options
Outstanding
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
Stock
Options
Vested and
Exercisable
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Aggregate
Intrinsic
Value
(in thousands) (in years) (in thousands) (in thousands) (in years) (in thousands)
$0.33 to $1.43 9,187 1.34 7,917 1.34
$1.44 to $1.99 2,381 1.75 2,231 1.76
$2.00 to $4.00 16,742 2.61 2,502 2.37
$4.01 to $7.34 3,340 4.73 1,952 4.80
$7.35 to $35.00 1,187 11.45 1,187 11.45
32,837 6.8 2.73 $ 33,994 15,789 4.8 2.74 $ 22,527
The aggregate intrinsic value of restricted stock units
outstanding was $9,552 as of December 31, 2013.
Retirement Plan
In March 2001, we established a 401(k) Retirement Plan (the
“Retirement Plan”) available to employees who meet the plan’s eligibility
requirements. Participants may elect to contribute a percentage of their
compensation to the Retirement Plan up to a statutory limit. We may
make a contribution to the Retirement Plan in the form of a matching
contribution. The employer matching contribution is 50% of each
employee’s contributions not to exceed $6 in 2011, 2012, and 2013. Our
expense related to the Retirement Plan was $2,554, $2,160, and $2,114
in 2013, 2012, and 2011, respectively.
Note 10. Commitments and Contingencies
Capital Leases
Assets financed under capital lease agreements are included
in property and equipment in the consolidated balance sheet and related
depreciation and amortization expense is included in the consolidated
statements of operations.
On March 24, 2005, we entered into a lease for our
headquarters in Holmdel, New Jersey. We took possession of a portion
of the office space at the inception of the lease, another portion on
August 1, 2005 and took over the remainder of the office space in early
2006. The overall lease term is twelve years and five months. In
connection with the lease, we issued a letter of credit which requires
$7,350 of cash as collateral, which is classified as restricted cash. Part
of the cash was released, leaving a balance of $4,306 at December 31,
2013. The gross amount of the building recorded under capital leases
totaled $25,709 as of December 31, 2013 and accumulated depreciation
was approximately $17,647 as of December 31, 2013.
Operating Leases
We have entered into various non-cancelable operating lease
agreements for certain of our existing office and telecommunications
co-location space in the United States and for international subsidiaries
with original lease periods expiring between 2014 and 2015. We are
committed to pay a portion of the buildings’ operating expenses as
determined under the agreements.
At December 31, 2013, future payments under capital leases and minimum payments under non-cancelable operating leases are as
follows over each of the next five years and thereafter:
December 31, 2013
Capital
Leases
Operating
Leases
2014 $ 4,369 $5,854
2015 4,457 1,694
2016 4,545 —
2017 3,071 —
2018 ——
Total minimum payments required 16,442 $7,548
Less amounts representing interest (3,352)
Minimum future payments of principal 13,090
Current portion 2,889
Long-term portion $ 10,201
Table of Contents
VONAGE HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)