OTHER LONG-TERM LIABILITIES
Our other long-term liabilities are summarized as follows (in millions):
|
| | | | | | | | |
| | December 31, |
| | 2013 | | 2012 |
Long-term capital lease obligations | | $ | 1,435 |
| | $ | 737 |
|
Long-term financing lease obligations | | 555 |
| | 9 |
|
Construction liabilities | | 385 |
| | 87 |
|
Tax contingencies | | 457 |
| | 336 |
|
Long-term deferred tax liabilities | | 571 |
| | 476 |
|
Other | | 839 |
| | 632 |
|
| | $ | 4,242 |
| | $ | 2,277 |
|
Capital Leases
Certain of our equipment, primarily related to technology infrastructure, and buildings have been acquired under capital leases. Long-term capital lease obligations are as follows (in millions):
|
| | | |
| December 31, 2013 |
Gross capital lease obligations | $ | 2,437 |
|
Less imputed interest | (47 | ) |
Present value of net minimum lease payments | 2,390 |
|
Less current portion of capital lease obligations | (955 | ) |
Total long-term capital lease obligations | $ | 1,435 |
|
Financing Leases
We continue to be the deemed owner after occupancy of certain facilities that were constructed as build-to-suit lease arrangements and previously reflected as “Construction liabilities.” As such, these arrangements are accounted for as financing leases. Long-term finance lease obligations are as follows (in millions):
|
| | | |
| December 31, 2013 |
Gross financing lease obligations | $ | 783 |
|
Less imputed interest | (200 | ) |
Present value of net minimum lease payments | 583 |
|
Less current portion of financing lease obligations | (28 | ) |
Total long-term financing lease obligations | $ | 555 |
|
Construction Liabilities
We capitalize construction in progress and record a corresponding long-term liability for build-to-suit lease agreements where we are considered the owner during the construction period for accounting purposes.
Tax Contingencies
We have recorded tax reserves for tax contingencies, inclusive of accrued interest and penalties, of approximately $457 million as of December 31, 2013, and $336 million as of December 31, 2012, for U.S. and foreign income taxes. These contingencies primarily relate to transfer pricing, state income taxes, and research and development credits. See “Note 11—Income Taxes” for discussion of tax contingencies.
