Operating lease not yet commenced

[Table of Contents](#i3b067f3fb23d442cae02253229e3471d_7)Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Real Estate Arrangements |  | Co-location Arrangements |
| 2022 | $ | 80,070  |  |  | $ | 97,494  |  |
| 2023 | 79,583  |  |  | 53,838  |  |
| 2024 | 73,506  |  |  | 35,532  |  |
| 2025 | 69,486  |  |  | 23,130  |  |
| 2026 | 65,314  |  |  | 14,834  |  |
| Thereafter | 416,280  |  |  | 20,640  |  |
| Total lease payments | 784,239  |  |  | 245,468  |  |
| Less: imputed interest | 139,550  |  |  | 7,387  |  |
| Total lease liabilities | $ | 644,689  |  |  | $ | 238,081  |  |

  
As of December 31, 2021, the Company had additional operating leases, primarily for co-location arrangements, that had not yet commenced of $67.2 million, which will commence in 2022, with lease terms of one year to seven years. The table above excludes approximately $196.4 million of future sublease income that is expected to be recognized through 2034.  
As of December 31, 2021, the Company had outstanding letters of credit in the amount of $5.7 million, primarily related to operating leases. The letters of credit remain in effect until the Company fulfills its obligations under these leases or as such obligations expire under the terms of the letters of credit.  
13. Commitments and Contingencies  
As of December 31, 2021, the Company had long-term commitments for bandwidth usage with various networks and ISPs. Additionally, as of December 31, 2021, the Company had entered into purchase orders with various vendors. The minimum future commitments as of December 31, 2021 were as follows (in thousands):  


|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Bandwidth Commitments |  | Purchase Order Commitments |
| 2022 | $ | 102,144  |  |  | $ | 226,926  |  |
| 2023 | 21,979  |  |  | 58,972  |  |
| 2024 | 2,100  |  |  | 29,190  |  |
| 2025 | —  |  |  | 230  |  |
| 2026 | —  |  |  | 61  |  |
|  |  |  |  |
| Total | $ | 126,223  |  |  | $ | 315,379  |  |

  
Legal Matters  
The Company is party to various litigation matters that management considers routine and incidental to its business. Management does not expect the results of any of these routine actions to have a material effect on the Company’s business, results of operations, financial condition or cash flows.  
In July 2016, as part of the resolution of a patent infringement lawsuit filed by the Company against Limelight Networks, Inc. (“Limelight”) in 2006, the Company entered into an agreement that requires Limelight to pay the Company $54.0 million in 12 equal installments over three years, beginning in August 2016. During the year ended December 31, 2019, the Company received $9.0 million under this agreement. Substantially all of the amounts received were recorded as a gain contingency in the year the cash was received, which reduced general and administrative expenses in the consolidated statements of income, with the remaining as interest income.  
  
  
  
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