LinkedIn 2012 Annual Report Download - page 41

We do not intend to pay dividends for the foreseeable future.
We have never declared or paid any cash dividends on our common stock and do not intend to pay
any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings
for use in the development of our business and for general corporate purposes. Any determination to pay
dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely
on sales of their Class A common stock after price appreciation, which may never occur, as the only way
to realize any future gains on their investments.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
As of December 31, 2012, we lease approximately 373,000 square feet of space in our headquarters in
Mountain View, California, of which approximately 70,000 square feet is under construction by our
landlord. The lease term is currently estimated to expire in 2023. In addition, we recently entered into a
lease effective as of December 13, 2012 that provides approximately 587,000 additional square feet in
Sunnyvale, California to be constructed by our landlord. The lease term is 12 years from the estimated
date of delivery of the newly constructed buildings, and is currently estimated to expire in 2026. We also
lease additional sales and marketing and customer support offices in Chicago, New York, Omaha, San
Francisco, Santa Monica, and Sunnyvale. We lease our international headquarters office in Dublin, Ireland
and lease additional sales and marketing offices in Australia, Brazil, Canada, France, Germany, Hong
Kong, India, Italy, Japan, the Netherlands, Singapore, Spain, Sweden, the United Arab Emirates and the
United Kingdom. We also operate data centers in the United States pursuant to various lease agreements.
We believe that our current facilities are adequate to meet our current needs. We intend to expand
our facilities or add new facilities as we add employees and enter new geographic markets, and we believe
that suitable additional or alternative space will be available as needed to accommodate ongoing
operations and any such growth. However, we expect to incur additional expenses in connection with such
new or expanded facilities.
Item 3. Legal Proceedings
We are subject to legal proceedings and litigation arising in the ordinary course of business, including,
but not limited to, certain pending patent and privacy matters, including class action lawsuits, as well as
inquiries, investigations, audits and other regulatory proceedings. Although occasional adverse decisions or
settlements may occur, we do not believe that the final disposition of any of these matters will have a
material adverse effect on our business. Certain of these matters include speculative claims for substantial
or indeterminate amounts of damages, and include claims for injunctive relief. Over the last year, we have
experienced an increase in patent litigation involving non-practicing entities, which are expensive to
defend. Additionally, as certain litigation matters mature, costs related to those matters increase. Other
regulatory matters could result in fines and penalties being assessed against us, and we may become
subject to mandatory periodic audits, which would likely increase our regulatory compliance costs, and
may require us to change our business practices, which could negatively impact our revenue growth.
We record a liability when we believe that it is both probable that a loss has been incurred and the
amount can be reasonably estimated. Periodically, we evaluate developments in our legal matters that
could affect the amount of liability that has been previously accrued, if any, and make 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 our judgment may be incorrect. The outcome of
any proceeding is not determinable in advance. Until the final resolution of any such matters that we may
be required to accrue for, we may be exposed to loss in excess of the amount accrued, and such amounts
could be material.
Item 4. Mine Safety Disclosures
Not applicable.
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