Facebook 2013 Annual Report Download - page 57

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Contractual Obligations
Our principal commitments consist of obligations under capital and operating leases for equipment and office and data center
facilities. The following table summarizes our commitments to settle contractual obligations in cash as of December 31, 2013.
Payment Due by Period
Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years
Operating lease obligations $ 978 $ 142 $ 281 $ 243 $ 312
Capital lease obligations 561 255 148 31 127
Other contractual commitments(1) 258 116 40 16 86
Total contractual obligations $ 1,797 $ 513 $ 469 $ 290 $ 525
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(1) Other contractual commitments primarily relate to network infrastructure for our data center operations and, to a lesser extent, construction commitments related to
our data center sites.
In addition, our other liabilities include $886 million related to uncertain tax positions as of December 31, 2013. Due to uncertainties
in the timing of the completion of tax audits, the timing of the resolution of these positions is uncertain and we are unable to make a
reasonably reliable estimate of the timing of payments in individual years beyond 12 months. As a result, this amount is not included in
the above contractual obligations table.
Contingencies
We are involved in claims, lawsuits, government investigations, and proceedings. We record a provision for a liability when we
believe that it is both probable that a liability has been incurred, and the amount can be reasonably estimated. Significant judgment is
required to determine both probability and the estimated amount. Such legal proceedings are inherently unpredictable and subject to
significant uncertainties, some of which are beyond our control. Should any of these estimates and assumptions change or prove to be
incorrect, it could have a material impact on our results of operations, financial position, and cash flows.
See Note 10 in the accompanying notes to our consolidated financial statements included in Part II, Item 8, "Financial Statements
and Supplementary Data" and Part I, Item 3, "Legal Proceedings" of this Annual Report on Form 10-K for additional information regarding
contingencies.
Recently Issued and Adopted Accounting Pronouncement
Comprehensive Income
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified
Out of Accumulated Other Comprehensive Income (ASU 2013-02) which is effective prospectively for public companies for reporting
periods beginning after December 15, 2012. This new accounting standard improves the reporting of reclassifications out of accumulated
other comprehensive income (AOCI) by requiring an entity to report the effect of significant reclassifications out of AOCI on the respective
line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other
amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is
required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. We adopted this
new guidance on January 1, 2013 and the adoption did not have a material effect on our consolidated financial statements.