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Commitments And Contingencies
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6 Months Ended |
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Jun. 30, 2014
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| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments And Contingencies |
Commitments and Contingencies
Leases
On June 20, 2013, TripAdvisor entered into an additional lease to move its headquarters to Needham, Massachusetts in 2015. TripAdvisor is the deemed owner (for accounting purposes only) of the new building during the construction period under build to suit lease accounting. As building construction began in the fourth quarter of 2013, TripAdvisor recorded estimated project construction costs incurred by the landlord as an asset and a corresponding long term liability in ‘‘Property and equipment, at cost’’ and ‘‘Other liabilities,’’ respectively, in the condensed combined balance sheets. The asset and corresponding long term liability will increase as additional building costs are incurred by the landlord during the construction period. At the completion of construction of the new building (estimated to be May 2015), the lease will be evaluated in order to determine whether or not it meets the criteria for ‘‘sale-leaseback’’ treatment. From the beginning of construction through June 30, 2014 approximately $40 million has been capitalized.
Litigation
Liberty has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible Liberty may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.
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