Facebook 2013 Annual Report Download - page 79

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The components of other liabilities are as follows (in millions):
December 31,
2013 2012
Income tax payable $ 886 $ 100
Other liabilities 202 205
Other liabilities $ 1,088 $ 305
Note 9. Long-term Debt
In October 2012, we amended and restated our bridge credit facility, and converted it into a three-year unsecured term loan
facility. The unsecured term loan allowed us to borrow up to $1.5 billion with interest payable on borrowed amount set at LIBOR plus
1.0%, as well as an annual commitment fee of 0.10% on the daily undrawn balance of the facility. We fully drew down on this facility
in October 2012 and fully repaid the $1.5 billion outstanding principal balance in August 2013.
In connection with our termination of the unsecured term loan facility, we also terminated our $1.5 billion interest rate swap
agreement which converted the one-month LIBOR rate on the corresponding notional amount of debt to a fixed interest rate to hedge
our exposure to interest rate fluctuation. We have reclassified all amounts related to the interest rate swap in AOCI to interest expense.
For the year ended December 31, 2013, the amount in AOCI reclassified to interest expense was not material. The realized gain as a result
of the termination of our interest rate swap was also not material.
Concurrently, we also terminated our unsecured five-year revolving credit facility that allowed us to borrow up to $5 billion. We
had not drawn down on this facility.
In August 2013, in connection with the termination of these facilities, we entered into a five-year senior unsecured revolving credit
facility (2013 Revolving Credit Facility) that allows us to borrow up to $6.5 billion to fund working capital and general corporate purposes
with interest payable on the borrowed amounts set at LIBOR plus 1.0%, as well as an annual commitment fee of 0.10% on the daily
undrawn balance of the facility. We paid origination fees at closing of the 2013 Revolving Credit Facility, which fees are being amortized
over the term of the facility. Any amounts outstanding under this facility will be due and payable on August 15, 2018. As of December 31,
2013, no amounts had been drawn down, and we were in compliance with the covenants under this facility.
Note 10. Commitments and Contingencies
Commitments
Leases
We entered into various capital lease arrangements to obtain property and equipment for our operations. Additionally, on occasion
we have purchased property and equipment for which we have subsequently obtained capital financing under sale-leaseback transactions.
These agreements are typically for three years, except for building leases which are for 15 years, with interest rates ranging from 1% to
13%. The leases are secured by the underlying leased buildings, leasehold improvements, and equipment. We have also entered into
various non-cancelable operating lease agreements for certain of our offices, equipment, land and data centers with original lease periods
expiring between 2014 and 2029. We are committed to pay a portion of the related actual operating expenses under certain of these lease
agreements. Certain of these arrangements have free rent periods or escalating rent payment provisions, and we recognize rent expense
under such arrangements on a straight-line basis.