Commitments And Contingencies
|9 Months Ended|
Sep. 30, 2014
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments And Contingencies||
(9) Commitments and Contingencies
The Company continues to guarantee Starz, LLC's obligations, in the event Starz, LLC is unable to meet its financial obligations, under one of its studio output agreements. At September 30, 2014, the Company's guarantee for obligations for films released by such date aggregated $91 million. The outstanding guarantee (the "Guarantee") associated with this studio output agreement is expected to lapse in November of 2014. While the guarantee amount for films not yet released is not determinable, as box office amounts are unknown prior to release of films which determines the applicable rate to be paid by Starz, LLC, such amounts are expected to be significant, although as the date of the guarantee release draws closer, the amounts are expected to decrease, as films under the guarantee will be less. The Company considered whether a liability associated with the Guarantee was considered necessary and determined that based on a number of scenarios associated with this Guarantee due to the financial well-being of Starz, the anticipated financial performance of Starz over the next year and Starz's availability under its outstanding credit facility, that no liability was considered necessary.
In connection with agreements for the sale of assets by the Company or its subsidiaries, the Company may retain liabilities that relate to events occurring prior to its sale, such as tax, environmental, litigation and employment matters. The Company generally indemnifies the purchaser in the event that a third party asserts a claim against the purchaser that relates to a liability retained by the Company. These types of indemnification obligations may extend for a number of years. The Company is unable to estimate the maximum potential liability for these types of indemnification obligations as the sale agreements may not specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying condensed consolidated financial statements with respect to these indemnification guarantees.
The Atlanta Braves and certain of their players and coaches have entered into long-term employment contracts whereby such individuals' compensation is guaranteed. Amounts due under guaranteed contracts as of September 30, 2014 aggregated $369 million, which is payable as follows: $2 million in 2014, $86 million in 2015, $59 million in 2016, $76 million in 2017 and $146 million thereafter. In addition to the foregoing amounts, certain players and coaches may earn incentive compensation under the terms of their employment contracts.
The Company and its subsidiaries lease business offices, have entered into satellite transponder lease agreements and use certain equipment under lease arrangements.
The Company has contingent liabilities related to legal and tax proceedings and other matters arising in the ordinary course of business. Although it is reasonably possible the Company may incur losses upon conclusion of such matters, an estimate of any loss or range of loss cannot be made. In the opinion of management, it is expected that amounts, if any, which may be required to satisfy such contingencies will not be material in relation to the accompanying condensed consolidated financial statements.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef