ServiceMagic 2014 Annual Report Download - page 107

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IAC/INTERACTIVECORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Future minimum payments under operating lease agreements are as follows:
Expenses charged to operations under these agreements are $41.2 million , $36.7 million and $30.6 million for the years ended December 31,
2014 , 2013 and 2012 , respectively.
The Company's most significant operating lease is a seventy-seven year land lease for IAC's headquarters building in New York City and
approximates 55% 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 as follows:
The purchase obligations primarily include advertising commitments, which commitments are reducible or terminable such that these
commitments can never exceed associated revenue by a meaningful amount. The letters of credit support the Company's casualty insurance
program.
NOTE 15—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. The Company also evaluates other contingent matters, including
income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible
that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of
operations, or financial condition of the Company. See Note 3 for additional information related to income tax contingencies.
82
Years Ending December 31,
(In thousands)
2015
$
32,255
2016
31,105
2017
26,723
2018
23,338
2019
17,775
Thereafter
191,108
Total
$
322,304
Amount of Commitment Expiration Per Period
Less Than
1 Year
1-3
Years
3-5
Years
More Than
5 Years
Total
Amounts
Committed
(In thousands)
Purchase obligations
$
10,710
$
521
$
—
$
—
$
11,231
Letters of credit and surety bonds
1,276
—
73
1,437
2,786
Total commercial commitments
$
11,986
$
521
$
73
$
1,437
$
14,017