LinkedIn 2013 Annual Report Download - page 43

Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
As of December 31, 2013, we lease approximately 373,000 square feet of space in our headquarters in
Mountain View, California with the lease term expiring in 2023. In addition, we lease approximately
587,000 additional square feet in Sunnyvale, California, currently under construction 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 offices in Chicago, New York, Omaha, San
Francisco, Santa Monica, Sunnyvale, and Washington D.C. We lease our international headquarters office
in Dublin, Ireland, and lease additional 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. Additionally, our litigation
costs are significant. 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. Adverse results of litigation or regulatory matters could also result in us being required
to change our business practices, which could negatively impact our membership and 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.
41