LinkedIn 2012 Annual Report Download - page 91

The following weighted-average employee equity awards were excluded from the calculation of
diluted net income per share because their effect would have been anti-dilutive for the periods presented
(in thousands):
Year Ended
December 31,
2012 2011 2010
Employee stock options ................................. 28 418 3
Restricted stock units ................................... 36 88 —
Total ............................................. 64 506 3
10. 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, 2012, are as follows
(in thousands):
Operating
Year Ending December 31, Leases(1)
2013 ..................................................... $ 37,675
2014 ..................................................... 43,124
2015 ..................................................... 59,318
2016 ..................................................... 59,597
2017 ..................................................... 59,353
Thereafter ................................................. 359,791
Total minimum lease payments ................................ $618,858
(1) Subsequent to December 31, 2012, the Company entered into a lease with a provider of
data center space. The lease expires in 2023 with aggregate future minimum lease payments
of approximately $109.1 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 matters, including class action lawsuits, as
well as inquiries, investigations, audits and other regulatory proceedings. 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 adverse effect on the 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, the Company has experienced an increase in patent litigation involving
non-practicing entities, which have been 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 the Company, and it may become subject to mandatory periodic audits,
which would likely increase its regulatory compliance costs, and may require the Company to change its
business practices, which could negatively impact its revenue growth.
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
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