Commitments And Contingencies	6 Months Ended
Jun. 30, 2011
Commitments And Contingencies
Commitments And Contingencies	9. Commitments and Contingencies Employment Arrangements—As of June 30, 2011, Sotheby's had employment arrangements with certain senior employees, which expire at various points between February 2012 and March 2017. Such arrangements may provide, among other benefits, for minimum salary levels and for incentive compensation under Sotheby's incentive compensation programs which is payable only if specified company and individual goals are attained. Additionally, certain of these arrangements provide annual equity grants, the accelerated vesting of certain equity grants, severance payments, other cash compensation, and continuation of benefits upon termination of employment under certain circumstances. The aggregate remaining commitment for salaries and other cash compensation related to these employment arrangements, excluding any participation in Sotheby's incentive compensation and share-based payment programs, was approximately $23.7 million as of June 30, 2011. Lending Commitments—Sotheby's enters into legally binding arrangements to lend, primarily on a collateralized basis and subject to certain limitations and conditions, to potential consignors and other individuals who have collections of art. Unfunded commitments to extend additional credit were $11.6 million as of June 30, 2011, of which $0.7 million is committed to an employee of Sotheby's who is not an Executive Officer. Legal Actions—Sotheby's becomes involved in various claims and lawsuits incidental to the ordinary course of its business, including the matter described below. While it is not possible to predict the outcome of litigation, management does not believe that the outcome of any of these pending claims or proceedings will have a material adverse effect on Sotheby's consolidated results of operations, financial condition and/or cash flows. Friesland Bank NV (the "Bank") v. Sotheby's Financial Services Ltd. and Sotheby's (the "Sotheby's Parties") was a dispute between the Bank, which is located in the Netherlands, and the Sotheby's Parties regarding the priority of their respective pledges over a U.K. collection of books and manuscripts (the "U.K. Collection") owned by Joost Ritman, a Dutch national. Pursuant to a Loan, Private Treaty Sale and Consignment Agreement dated May 29, 2009 between Mr. Ritman (and Ritman owned entities) and the Sotheby's Parties (the "Sotheby's Agreement"), Mr. Ritman pledged the U.K. Collection to Sotheby's Financial Services Ltd. as collateral for a loan made by Sotheby's Financial Services Ltd. in the sum of €5 million. In November 2010, the Bank notified the Sotheby's Parties that in July 2005 Mr. Ritman had entered into a prior Deed of Pledge with the Bank and that the U.K. Collection formed part of the collateral for the Bank's loan to Mr. Ritman in 2005 in the sum of approximately €20 million. In April 2011, the Bank commenced legal proceedings against the Sotheby's Parties. The issues between the Bank and the Sotheby's Parties were whether (i) the later English possessory pledge to the Sotheby's Parties had priority over an earlier Dutch non-possessory pledge to the Bank and whether (ii) the Sotheby's Parties were on actual or constructive notice of the existence of the earlier Dutch non-possessory pledge to the Bank at the time that they entered into the Sotheby's Agreement in 2009. The litigation commenced by the Bank against the Sotheby's Parties was settled on June 3, 2011 and the legal proceedings have been discontinued. As a result of the settlement, the loan and any related interest have been paid in-full. (See Notes 5, 10 and 13 for information on other contingencies. See Notes 6, 7 and 8 for information on other commitments.)

9. Commitments and Contingencies

Employment Arrangements—As of June 30, 2011, Sotheby's had employment arrangements with certain senior employees, which expire at various points between February 2012 and March 2017. Such arrangements may provide, among other benefits, for minimum salary levels and for incentive compensation under Sotheby's incentive compensation programs which is payable only if specified company and individual goals are attained. Additionally, certain of these arrangements provide annual equity grants, the accelerated vesting of certain equity grants, severance payments, other cash compensation, and continuation of benefits upon termination of employment under certain circumstances. The aggregate remaining commitment for salaries and other cash compensation related to these employment arrangements, excluding any participation in Sotheby's incentive compensation and share-based payment programs, was approximately $23.7 million as of June 30, 2011.

Lending Commitments—Sotheby's enters into legally binding arrangements to lend, primarily on a collateralized basis and subject to certain limitations and conditions, to potential consignors and other individuals who have collections of art. Unfunded commitments to extend additional credit were $11.6 million as of June 30, 2011, of which $0.7 million is committed to an employee of Sotheby's who is not an Executive Officer.

Legal Actions—Sotheby's becomes involved in various claims and lawsuits incidental to the ordinary course of its business, including the matter described below. While it is not possible to predict the outcome of litigation, management does not believe that the outcome of any of these pending claims or proceedings will have a material adverse effect on Sotheby's consolidated results of operations, financial condition and/or cash flows.

Friesland Bank NV (the "Bank") v. Sotheby's Financial Services Ltd. and Sotheby's (the "Sotheby's Parties") was a dispute between the Bank, which is located in the Netherlands, and the Sotheby's Parties regarding the priority of their respective pledges over a U.K. collection of books and manuscripts (the "U.K. Collection") owned by Joost Ritman, a Dutch national. Pursuant to a Loan, Private Treaty Sale and Consignment Agreement dated May 29, 2009 between Mr. Ritman (and Ritman owned entities) and the Sotheby's Parties (the "Sotheby's Agreement"), Mr. Ritman pledged the U.K. Collection to Sotheby's Financial Services Ltd. as collateral for a loan made by Sotheby's Financial Services Ltd. in the sum of €5 million. In November 2010, the Bank notified the Sotheby's Parties that in July 2005 Mr. Ritman had entered into a prior Deed of Pledge with the Bank and that the U.K. Collection formed part of the collateral for the Bank's loan to Mr. Ritman in 2005 in the sum of approximately €20 million. In April 2011, the Bank commenced legal proceedings against the Sotheby's Parties. The issues between the Bank and the Sotheby's Parties were whether (i) the later English possessory pledge to the Sotheby's Parties had priority over an earlier Dutch non-possessory pledge to the Bank and whether (ii) the Sotheby's Parties were on actual or constructive notice of the existence of the earlier Dutch non-possessory pledge to the Bank at the time that they entered into the Sotheby's Agreement in 2009. The litigation commenced by the Bank against the Sotheby's Parties was settled on June 3, 2011 and the legal proceedings have been discontinued. As a result of the settlement, the loan and any related interest have been paid in-full.

(See Notes 5, 10 and 13 for information on other contingencies. See Notes 6, 7 and 8 for information on other commitments.)