TripAdvisor 2012 Annual Report Download - page 106

As of December 31, 2012, we had $24.0 million of unrecognized tax benefits, which is classified as long-
term and included in other long-term liabilities. Included in this balance at December 31, 2012 was $10.2 million
of liabilities for uncertain tax positions that, if recognized, would decrease our provision for income taxes. We
recognize interest and penalties related to our liabilities for uncertain tax positions in the provision for income
taxes. During the years ended December 31, 2012, 2011, and 2010, we recognized $1.0 million of interest
expense, net of federal benefit and penalties, related to our liabilities for uncertain tax positions. We estimate that
none of these amounts will be paid within the next year.
NOTE 10: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consisted of the following:
December 31,
2012 2011
(In thousands)
Accrued salary, bonus, and related benefits ............. $29,438 $21,744
Accrued marketing costs (1) ......................... 11,941 6,194
Accrued charitable foundation payments (2) ............ 6,757 109
Other ........................................... 15,100 9,222
Total accrued expenses and other current liabilities ....... $63,236 $37,269
(1) Reclassified amount for the year ended December 31, 2011 from accounts payable on the consolidated
balance sheet to conform to current year presentation.
(2) See “Note 12—Commitments and Contingencies” below for information regarding our charitable
foundation.
NOTE 11: OTHER LONG-TERM LIABILITIES
Other long-term liabilities consisted of the following:
December 31,
2012 2011
(In thousands)
Unrecognized tax benefits (1) ........................ $23,138 $13,455
Other ........................................... 2,425 2,497
Total other long-term liabilities ...................... $25,563 $15,952
(1) See “Note 9—Income Taxes” above for additional information on our unrecognized tax benefits. Amount
includes accrued interest and penalties related to this liability.
NOTE 12: COMMITMENTS AND CONTINGENCIES
We have commitments and obligations that include operating leases, purchase obligations and expected
interest on long-term debt, which are not accrued on the consolidated balance sheet at December 31, 2012 but we
expect to require future cash outflows and in some cases may be accelerated upon demand of a third party upon
certain contingent events.
Office Lease Commitments
We have contractual obligations in the form of operating leases for office space for which we record the
related expense on a monthly basis. Certain leases contain periodic rent escalation adjustments and renewal
options. Rent expense related to such leases is recorded on a straight-line basis. Operating lease obligations
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