PDFS » Topics » Contractual Obligations

This excerpt taken from the PDFS 10-K filed Mar 16, 2009.

Contractual Obligations

        The following table summarizes our known contractual obligations (in thousands):

 
  Payments Due by Period  
Contractual Obligations
  2009   2010-2011   2012-2013   Other   Total  

Debt principal(1)

  $ 334   $ 501   $   $   $ 835  

Debt interest

    20     17             37  

Capital lease obligations (including interest)

    38     12             50  

Operating lease obligations

    2,939     5,179     3,984         12,102  

Unrecognized tax benefits(2)

                3,356     3,356  
                       

Total

  $ 3,331   $ 5,709   $ 3,984   $ 3,356   $ 16,380  
                       

(1)
Amount represents the repayment of an interest free loan of €550,000 and a €400,000 euros loan with a variable interest rate based on the EURIBOR plus 160 basis points.

(2)
Due to the inherent uncertainty of the tax positions, it is not practicable to assign this liability to any particular years in the table.

        Operating lease amounts include minimum rental payments under our operating leases for our office facilities, as well as limited computer, office equipment, and vehicles that we utilize under lease agreements. These agreements expire at various dates through 2013. Capital lease amounts include $3,000 of imputed interest. Capital leases were contracted to purchase computer, software, office equipment, and vehicles in our French subsidiary.

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Table of Contents


Item 7A.    Quantitative and Qualitative Disclosures About Market Risk

        The following discusses our exposure to market risk related to changes in interest rates and foreign currency exchange rates. We do not currently own any equity investments, nor do we expect to own any in the foreseeable future. This discussion contains forward-looking statements that are subject to risks and uncertainties. Actual results could vary materially as a result of a number of factors.

        Interest Rate Risk.    As of December 31, 2008, we had cash, cash equivalents, and short term investments of $40.7 million. Cash and cash equivalents consisted of cash, highly liquid money market instruments and commercial paper with maturities of 90 days or less. Short-term investments consisted of debt securities with maturities of more than three months but less than twelve months. Because of the short maturities of those instruments, a sudden change in market interest rates would not have a material impact on the fair value of the portfolio. We would not expect our operating results or cash flows to be affected to any significant degree by the effect of a sudden change in market interest on our portfolio. A hypothetical increase in market interest rates of 100 basis points from the market rates in effect at December 31, 2008 would cause the fair value of these investments to decrease by an immaterial amount which would not have significantly impacted our financial position or results of operations. Declines in interest rates over time will result in lower interest income and interest expense.

        As of December 31, 2008, we held auction-rate securities with a par value of $1.0 million. Auction-rate securities are variable rate debt instruments whose interest rates are reset through a "dutch" auction process at regular intervals, typically every 28 days. A portion of these securities are insured by third party bond insurers and are collateralized by student loans guaranteed by governmental agencies and private entities. The liquidity of the securities has been negatively impacted by the uncertainty in the credit markets and the exposure of these securities to the financial condition of bond insurance companies. All auction-rate securities we hold have been failing to sell at auction since February 2008 due to an insufficient number of bidders. We reviewed the value of these securities for impairment as of December 31, 2008, and concluded that these securities were temporarily impaired, and recorded an unrealized loss of $282,000. In future periods, the estimated fair value of our auction-rate securities could decline further based on market conditions, which could result in additional impairment.

        Foreign Currency and Exchange Risk.    Certain of our sales contracts are denominated in a currency other than the functional currency of the selling entity. Therefore, a portion of our revenue is subject to foreign currency risks. The effect of an immediate 10% adverse change in exchange rates on foreign denominated receivables as of December 31, 2008 would result in a loss of an immaterial amount. As of December 31, 2008, we did not have outstanding hedging contracts, although we may enter into such contracts in the future. We intend to monitor our foreign currency exposure. Future exchange rate fluctuations may have a material negative impact on our business.

Item 8.    Financial Statements and Supplementary Data

        The consolidated financial statements and supplementary data required by this Item 8 are listed in Item 15(a)(1) of this Form 10-K.

Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

        None.

Item 9A.    Controls and Procedures

This excerpt taken from the PDFS 10-K filed Mar 16, 2007.
Contractual Obligations
 
The following table summarizes our known contractual obligations (in thousands):
 
                                         
    Payments Due by Period  
Contractual Obligations
  2007     2008-2009     2010-2011     Thereafter     Total  
 
Debt principal(1)
  $ 185     $ 594     $ 475     $     $ 1,254  
Debt interest
    26       35       13               74  
Capital lease obligations (including interest)
    134       128       10             272  
Operating lease obligations
    2,736       907       306             3,949  
                                         
Total
  $ 3,081     $ 1,664     $ 804     $     $ 5,549  
                                         
 
 
(1) Amount represents the repayment of an interest free loan of €550,000 and a €400,000 euros loan with a variable interest rate based on the EURIBOR plus 160 basis points.
 
Operating lease amounts include minimum rental payments under our operating leases for our office facilities, as well as limited computer, office equipment, and vehicles that we utilize under lease agreements. These agreements expire at various dates through 2011. Capital lease amounts include $26,000 of imputed interest. Capital leases were contracted to purchase computer, software, office equipment, and vehicles in our French subsidiary.
 

EXCERPTS ON THIS PAGE:

10-K
Mar 16, 2009
10-K
Mar 16, 2007
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