12. Commitments and Contingencies

Contractual Obligations

The Company leases its office facilities under non-cancelable operating leases that expire at various dates through February 2035. Certain leases contain optional termination dates. The table below only includes payments up to the optional termination date. If the Company were to extend leases beyond the optional termination date, the future commitments would increase by approximately $91.8 million.

Future minimum payments under all operating lease agreements as of December 31, 2025, are as follows:
 

 

 

(in thousands)

 

2026

 

$

56,535

 

2027

 

 

50,257

 

2028

 

 

37,455

 

2029

 

 

37,188

 

2030

 

 

36,117

 

Thereafter

 

 

95,832

 

Total

 

$

313,384

 

The Company has entered into certain non-cancelable vendor commitments, which require the future purchase of goods or services. Future minimum payments under all vendor commitments as of December 31, 2025 are as follows:
 

 

 

(in thousands)

 

2026

 

$

286,458

 

2027

 

 

202,784

 

2028

 

 

4,463

 

2029

 

 

1,025

 

2030

 

 

 

Thereafter

 

 

 

Total

 

$

494,730

 

Legal Contingencies

From time to time the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of its business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on its business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 12, 2025
2023Feb 14, 2024
2022Feb 16, 2023
2021Feb 14, 2022
2020Feb 16, 2021
2019Feb 12, 2020
2018Feb 12, 2019
2017Feb 13, 2018
2016Feb 16, 2017
2015Feb 24, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.