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Table of Contents
AOL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
A summary of AOL's restructuring activity for the years ended December 31, 2011, 2010 and 2009 is as follows (in millions):
Employee
Terminations
Other Exit
Costs Total
Liability at December 31, 2008 $ 10.4 $ 20.5 $ 30.9
2009 restructuring expense 161.5 27.7 189.2
Foreign currency translation and other adjustments (10.8) 0.7 (10.1)
Cash paid (53.0) (20.6) (73.6)
Liability at December 31, 2009 108.1 28.3 136.4
2010 restructuring expense 18.8 15.0 33.8
Foreign currency translation and other adjustments (6.1) 1.2 (4.9)
Cash paid (102.8) (26.3) (129.1)
Liability at December 31, 2010 $ 18.0 $ 18.2 $ 36.2
2011 Restructuring expense 37.2 1.1 38.3
Foreign currency translation and other adjustments (1.1) (0.5) (1.6)
Cash paid (48.5) (11.7) (60.2)
Liability at December 31, 2011 $ 5.6 $ 7.1 $ 12.7
At December 31, 2011, of the remaining liability of $12.7 million, $11.6 million was classified as a current liability within accrued expenses and other
current liabilities, with the remaining $1.1 million classified as a long-term liability in the consolidated balance sheet. Amounts classified as long-term are
expected to be paid through 2014.
NOTE 10—COMMITMENTS AND CONTINGENCIES
Commitments
AOL's total rent expense from continuing operations amounted to $39.6 million, $34.8 million and $49.8 million for the years ended December 31,
2011, 2010 and 2009, respectively. The Company has long-term non-cancelable lease commitments for office space and operating equipment in various
locations around the world, a number of which have renewal options at market rates to be determined prior to the renewal option being exercised. In addition,
certain leases have rent escalation clauses with either fixed scheduled rent increases or rent increases based on the Consumer Price Index. The minimum rental
commitments under non-cancelable long-term operating leases during the next five years are as follows (in millions):
Gross operating
lease
commitments
Sublease
income
Net operating
lease
commitments
2012 $ 52.7 $ 6.8 $ 45.9
2013 47.0 6.6 40.4
2014 44.1 4.1 40.0
2015 39.3 4.1 35.2
2016 32.3 4.2 28.1
Thereafter 123.1 2.1 121.0
Total (a) $ 338.5 $ 27.9 $ 310.6
(a) Included in the above table are approximately $196.8 million of payments associated with the lease of the Company's corporate headquarters in New
York. AOL has leased its corporate headquarters for a non-cancelable initial lease term that ends in February 2023, with the option to extend the lease
for an
94