TripAdvisor 2012 Annual Report Download - page 107

expire at various dates with the latest maturity in June 2023. For the years ended December 31, 2012, 2011 and
2010, we recorded rental expense of $7.8 million, $6.0 million and $6.0 million, respectively.
We lease approximately 119,000 square feet for our corporate headquarters in Newton, Massachusetts,
pursuant to a lease with an expiration date of April 2015. We also lease an aggregate of approximately 144,000
square feet at 21 other locations across North America, Europe and Asia Pacific, primarily for our international
management teams, sales offices, and subsidiary headquarters, pursuant to leases with expiration dates through
June 2023.
The following table presents our estimated future minimum rental payments under operating leases with
non-cancelable lease terms that expire after December 31, 2012, in thousands:
2013 ............................................. $ 6,730
2014 ............................................. 5,312
2015 ............................................. 3,124
2016 ............................................. 1,279
2017 and thereafter .................................. 7,337
Total ......................................... $23,782
Purchase Obligations
As of December 31, 2012, we had minimum non-cancelable purchase obligations with certain of our
vendors, which we expect to utilize in the ordinary course of business.
The following table summarizes our material commitments and obligations as of December 31, 2012 and
excludes amounts already recorded on the consolidated balance sheet:
By Period
Total
Less than
1 year 1 to 3 years 3 to 5 years
More than
5 years
(In thousands)
Operating leases ................................ $23,782 $ 6,730 $ 8,436 $2,558 $6,058
Purchase obligations ............................ 1,441 586 747 108 —
Expected interest payments on Term Loan (1) ........ 25,029 7,519 12,566 4,944 —
Total (2) ...................................... $50,252 $14,835 $21,749 $7,610 $6,058
(1) The amounts included as expected interest payments on the Term Loan in this table are based on the current
effective interest rate and payment terms as of December 31, 2012, but, could change significantly in the
future. Amounts assume that our existing debt is repaid at maturity and do not assume additional borrowings
or refinancings of existing debt.
(2) In connection with the Spin-Off, we assumed Expedia’s obligation to fund a charitable foundation. The
Board of Directors of the charitable foundation is currently comprised of Stephen Kaufer- President and
Chief Executive Officer, Julie M.B. Bradley-Chief Financial Officer and Seth J. Kalvert- Senior Vice
President, General Counsel and Secretary. Our obligation was calculated at 2.0% of OIBA in 2012 and is
expected to be calculated at 2.0% of Adjusted EBITDA for subsequent years. For a discussion regarding
OIBA and Adjusted EBITDA see “Note 17—Segment Information” below. This future commitment has
been excluded from the table above.
Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or
future effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.
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