13. Commitments and Contingencies

As of December 31, 2025, the Company’s material contractual obligations were as follows:

 

(In thousands)

 

Total

 

 

2026

 

 

2027

 

 

2028

 

Contractual obligations (1) (2)

 

 

 

 

 

 

 

 

 

 

 

 

Software licenses (3)

 

$

40,090

 

 

$

17,088

 

 

$

16,230

 

 

$

6,772

 

Other contractual obligations

 

 

138

 

 

 

138

 

 

 

 

 

 

 

Total

 

$

40,228

 

 

$

17,226

 

 

$

16,230

 

 

$

6,772

 

 

(1)
The above table does not reflect possible payments in connection with unrecognized tax benefits of approximately $25.7 million, including $24.3 million recorded as a reduction of long-term deferred tax assets and $1.4 million in long-term income taxes payable as of December 31, 2025.
(2)
For the Company’s lease commitments as of December 31, 2025, refer to Note 10, “Leases.”
(3)
The Company has commitments with various software vendors for agreements generally having terms longer than one year.

Indemnifications

From time to time, the Company indemnifies certain customers as a necessary means of doing business. Indemnification covers customers for losses suffered or incurred by them as a result of any patent, copyright or other IP infringement or any other claim by any third party arising as a result of the applicable agreement with the Company. The Company generally attempts to limit the maximum amount of indemnification that the Company could be required to make under these agreements to the amount of fees received by the Company, however, this may not always be possible. The fair value of the liability as of December 31, 2025 and 2024, respectively, was not material.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 24, 2025
2023Feb 23, 2024
2022Feb 24, 2023
2021Feb 28, 2022
2020Feb 26, 2021
2019Feb 26, 2020
2018Feb 22, 2019
2017Feb 23, 2018
2016Feb 17, 2017
2015Feb 19, 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.