TripAdvisor 2013 Annual Report Download - page 113

(6) Excludes spending on anticipated leasehold improvements on our Needham, Massachusetts lease, including
design, development, construction costs, and the purchase and installation of equipment, net of related
Landlord incentives, which we estimate will begin in the fourth quarter of 2014 thru the second quarter of
2015 and currently estimate will cost in the range of $35-$40 million.
Letters of Credit
As of December 31, 2013, we have issued unused letters of credit totaling $1 million, related to our property
leases.
Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K of
the SEC, 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 at December 31, 2013.
Legal Proceedings
In the ordinary course of business, we and our subsidiaries are parties to legal proceedings and claims
involving alleged infringement of third-party intellectual property rights, defamation, and other claims. Rules of
the SEC require the description of material pending legal proceedings, other than ordinary, routine litigation
incident to the registrant’s business, and advise that proceedings ordinarily need not be described if they
primarily involve damages claims for amounts (exclusive of interest and costs) not individually exceeding 10%
of the current assets of the registrant and its subsidiaries on a consolidated basis. In the judgment of management,
none of the pending litigation matters that the Company and its subsidiaries are defending involves or is likely to
involve amounts of that magnitude. There may be claims or actions pending or threatened against us of which we
are currently not aware and the ultimate disposition of which could have a material adverse effect on us.
NOTE 13: EMPLOYEE BENEFIT PLANS
Expedia 401(k) Plan
Our U.S. employees were generally eligible to participate in Expedia’s retirement and savings plan (the
“Expedia 401(k) Plan”) that qualified under Section 401(k) of the Internal Revenue Code until October 31, 2011.
Our employees ceased to participate in the Expedia 401(k) Plan after our retirement savings plan was established
on November 1, 2011 as described below. Within the Expedia 401(k) Plan, participating employees could
contribute up to 50% of their pretax salary, but not more than statutory limits. We matched 50% of the first 6%
of employee contributions to the plan for a maximum employer contribution of 3% of a participant’s eligible
earnings. Our employer matching contributions vested after two years of continuous service. Participating
employees had the option to invest in Expedia’s common stock, but there was no requirement for participating
employees to invest their contribution or our matching contribution in Expedia’s common stock. Expedia also
had various defined contribution plans for our international employees. Contributions to these benefit plans for
our employees were $2 million for the year ended December 31, 2011, respectively.
TripAdvisor Retirement Savings Plan
Effective November 1, 2011, most of our U.S. employees were eligible to participate in a new retirement
and savings plan, the TripAdvisor Retirement Savings Plan (the “401(k) Plan”), that qualifies under
Section 401(k) of the Internal Revenue Code. The 401(k) Plan is similar to and replaced the Expedia 401(k) Plan,
allowing participating employees to make contributions of a specified percentage of their eligible compensation.
Participating employees may contribute up to 50% of their eligible salary on a pre-tax basis, but not more than
statutory limits. Employee-participants age 50 and over may also contribute an additional amount of their salary
on a pre-tax tax basis up to the IRS Catch-Up Provision Limit. Employees may also contribute into the 401(k)
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