Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v2.3.0.15
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2011
COMMITMENTS AND CONTINGENCIES [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
7.
COMMITMENTS AND CONTINGENCIES
As of September 30, 2011, contractual obligations with terms exceeding one year and estimated minimum future rental payments required by non-cancelable leases with initial or remaining lease terms exceeding one year are as follows:

 
 
 
Less than
 
1 to 3
 
3 to 5
 
After
 
Total
 
1 Year
 
Years
 
Years
 
 5 Years
Contractual obligations (1)
$
272

 
$
209

 
$
38

 
$
15

 
$
10

Operating lease obligations:
 
 
 
 
 
 
 
 
 
  Minimum lease payments
20,280

 
4,301

 
8,944

 
6,437

 
598

  Less minimum sublease rentals (2)
(9,482
)
 
(1,481
)
 
(4,188
)
 
(3,702
)
 
(111
)
       Net minimum lease payments
10,798

 
2,820

 
4,756

 
2,735

 
487

               Total
$
11,070

 
$
3,029

 
$
4,794

 
$
2,750

 
$
497


(1) Amounts represent contractual obligations related to software license contracts, data center hosting, and outsourcing contracts for software system support.
(2) In September 2011, the Company signed an agreement to sublease the remaining space of its former corporate headquarters in Saddle River, New Jersey through the remaining term of the underlying lease. The agreement provides for approximately $2.2 million in lease payments over the remainder of the lease. This sublease, in combination with our previously existing subleases, will provide for aggregated lease payments of approximately $6.3 million over the remaining lease terms. The Company has also sublet substantially all of the space at the Dresher, Pennsylvania facility under various subleases which will provide for aggregated lease payments of approximately $3.2 million over the remaining lease periods.
Letters of Credit
As of September 30, 2011, the Company had outstanding letters of credit of $5.0 million as required by its existing insurance policies and facility leases.  These letters of credit are supported by investments in held-to-maturity securities.  See Note 3, Investments in Marketable Securities, for additional detail regarding investments in marketable securities.
Litigation
Due to the nature of the businesses in which the Company is engaged, such as product detailing and the distribution of products, it could be exposed to certain risks. Such risks include, among others, risk of liability for personal injury or death to persons using products the Company promotes or distributes. There can be no assurance that substantial claims or liabilities will not arise in the future due to the nature of the Company's business activities and recent increases in litigation related to healthcare products, including pharmaceuticals. The Company seeks to reduce its potential liability under its service agreements through measures such as contractual indemnification provisions with customers (the scope of which may vary from customer to customer, and the performance of which is not secured) and insurance. The Company could, however, also be held liable for errors and omissions of its employees in connection with the services it performs that are outside the scope of any indemnity or insurance policy. The Company could be materially adversely affected if it were required to pay damages or incur defense costs in connection with a claim that is outside the scope of an indemnification agreement; if the indemnity, although applicable, is not performed in accordance with its terms; or if the Company's liability exceeds the amount of applicable insurance or indemnity.