ServiceMagic 2009 Annual Report Download - page 115

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Table of Contents
IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 16—COMMITMENTS (Continued)
Future minimum payments under operating lease agreements are as follows (in thousands):
Expenses charged to operations under these agreements were $28.5 million, $26.3 million and $22.8 million for the years ended
December 31, 2009, 2008 and 2007, respectively.
The Company's most significant operating lease is a 77 year ground lease for IAC's headquarters building in New York City and
approximates 60% of the future minimum payments due under all operating lease agreements in the table above.
The Company also has funding commitments that could potentially require its performance in the event of demands by third parties or
contingent events, such as under letters of credit extended as follows (in thousands):
The total commercial commitments above primarily consist of a $15.0 million guarantee and a $6.9 million letter of credit. The guarantee
supports a former subsidiary's operation of a camping reservation system and the letter of credit supports the Company's casualty insurance
program. The guarantee is set to expire July 2010 and is for the remote chance our former subsidiary defaults on a contract. The purchase
obligations primarily relate to minimum payments due under telecommunication contracts related to data transmission lines.
NOTE 17—CONTINGENCIES
In the ordinary course of business, the Company is a party to various lawsuits. The Company establishes reserves for specific legal matters
when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also
identified certain other legal matters where we believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although
management currently believes that resolving claims against us, including claims where an unfavorable outcome is reasonably possible, will not
have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent
uncertainties and management's view of these matters may change in the future. It is possible that an unfavorable outcome of one or more of
these lawsuits could have a material impact on the liquidity, results of operations, or financial condition of the Company. The Company also
evaluates other contingent matters, including tax contingencies, to assess the probability and estimated extent of potential loss. See Note 4 for
additional information related to income tax contingencies.
104
Years Ending December 31,
2010
19,554
2011
20,096
2012
19,322
2013
16,424
2014
13,509
Thereafter
218,698
Total
307,603
Amount of Commitment Expiration Per Period
Total
Amounts
Committed Less Than
1 Year 1–3 Years 3–5 Years More Than
5 Years
Guarantee and letters of credit
22,918
22,692
226
—
—
Purchase obligations
1,288
281
561
446
—
Total commercial commitments
24,206
22,973
787
446
—