CAPITAL LEASE OBLIGATIONS
|6 Months Ended|
Jun. 30, 2011
|CAPITAL LEASE OBLIGATIONS||
9. CAPITAL LEASE OBLIGATIONS
We record capital lease obligations and leased property and equipment at the time of entering into the respective lease at the lesser of the present value of future lease payments based upon the terms of the related lease agreement or the fair value of the assets held under capital leases. As of June 30, 2011, our capital leases had expiration dates ranging from 2013 to 2023.
During the six months ended June 30, 2011, we entered into a lease for new company-controlled data center space in Dallas, Texas. As a result, property and equipment and corresponding capital lease obligations increased by $9.3 million.
Future minimum capital lease payments and the present value of the minimum lease payments for all capital leases as of June 30, 2011, are as follows (in thousands):
Also during the six months ended June 30, 2011, we entered into a lease for new company-controlled data center space in Los Angeles, California. However, we did not take possession of the space until July 2011 when the space was available according to terms of the lease, and as a result, we recorded related property and equipment and corresponding capital lease obligations of $8.0 million subsequent to June 30, 2011.
The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.
Reference 1: http://www.xbrl.org/2003/role/presentationRef