LinkedIn 2011 Annual Report Download - page 87

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11. Commitments and Contingencies
Aggregate Future Lease Commitments
The Company leases its office facilities under operating lease agreements, the longest of which is expected
to expire in 2023. The Company’s future minimum payments under non-cancelable operating leases for office
facilities having initial terms in excess of one year as of December 31, 2011, are as follows (in thousands):
Year Ending December 31,
Operating
Leases (1)
2012 ............................................ $ 13,767
2013 ............................................ 16,271
2014 ............................................ 16,658
2015 ............................................ 16,828
2016 ............................................ 16,825
Thereafter ........................................ 105,970
Total minimum lease payments ................... $186,319
(1) Subsequent to December 31, 2011, the Company leased additional facilities in various locations. The
longest lease expires in 2022 and aggregate future minimum lease payments are approximately $26.5
million.
Legal Proceedings
The Company is subject to legal proceedings and litigation arising in the ordinary course of business,
including, but not limited to, certain pending patent and privacy litigation matters, including class action
lawsuits. Although occasional adverse decisions or settlements may occur, the Company does not believe that the
final disposition of any of these matters will have a material effect on the business. Certain of these matters
include speculative claims for substantial or indeterminate amounts of damages, and could include claims for
injunctive relief. The Company will record a liability when it believes that it is both probable that a loss has been
incurred and the amount can be reasonably estimated. The Company periodically evaluates developments in its
legal matters that could affect the amount of liability that it has previously accrued, if any, and makes
adjustments as appropriate. Significant judgment is required to determine both likelihood of there being, and the
estimated amount of, a loss related to such matters, and the Company’s judgment may be incorrect. The outcome
of any proceeding is not determinable in advance. Until the final resolution of any such matters that the Company
may be required to accrue for, there may be an exposure to loss in excess of the amount accrued, and such
amounts could be material.
Indemnifications
In the ordinary course of business, the Company enters into contractual arrangements under which it agrees
to provide indemnification of varying scope and terms to business partners and other parties with respect to
certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and
out of intellectual property infringement claims made by third parties. In these circumstances, payment may be
conditional on the other party making a claim pursuant to the procedures specified in the particular contract.
Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and
in some instances, it may have recourse against third parties for certain payments. In addition, the Company has
indemnification agreements with certain of its directors and executive officers that require it, among other things,
to indemnify them against certain liabilities that may arise by reason of their status or service as directors or
officers with the Company. The terms of such obligations may vary.
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