LinkedIn 2013 Annual Report Download - page 71

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equipment of $125.4 million, and made payments for intangible assets and acquisitions, net of cash
acquired, of $57.0 million. In 2011, we had net purchases of investments of $239.4 million, purchases of
property and equipment of $89.0 million, and made payments for intangible assets and acquisitions, net of
cash acquired, of $7.4 million.
Financing Activities
Our financing activities in 2013 consisted primarily of $1,348.1 million in proceeds from our follow-on
offering, net of underwriting discounts and commissions and other costs associated with this offering. With
the exception of the offering, the remainder of our financing activities consisted primarily of the excess tax
benefit from stock-based compensation, and the net proceeds from the issuance of common stock from
employee stock option exercises.
Our financing activities in 2012 consisted primarily of net proceeds from the issuance of common
stock from employee option exercises and stock purchase plan, as well as the excess tax benefit from the
exercise of stock options.
Our financing activities in 2011 consisted primarily of $426.5 million in proceeds from our IPO and
follow-on offering, net of offering costs. Our financing activities in 2011 also included net proceeds from
the issuance of common stock from employee option exercises.
Off Balance Sheet Arrangements
We did not have any off balance sheet arrangements in 2013, 2012 or 2011.
Contractual Obligations
We lease office space for our headquarters in Mountain View, California under operating leases that
we expect to expire in 2023. We lease other facilities around the world, including office space in
Sunnyvale, California, to be constructed by our landlord, the longest of which expires in 2026. We have
several material long-term purchase obligations outstanding with third parties. We do not have any debt or
material capital lease obligations. As of December 31, 2013, the following table summarizes our
contractual obligations and the effect such obligations are expected to have on our liquidity and cash flow
in future periods:
Payments Due by Period
Less Than 1 - 3 3 - 5 More Than
Total 1 Year Years Years 5 Years
(in thousands)
Operating lease obligations(1) .............. $965,368 $71,126 $192,937 $176,014 $525,291
Purchase obligations ..................... $ 76,347 $46,270 $ 25,434 $ 4,643 $ —
(1) Subsequent to December 31, 2013, we leased additional space in New York, New York. The lease
expires in 2026 and aggregate future minimum lease payments for this facility are approximately
$25.6 million.
The contractual commitment amounts in the table above are associated with agreements that are
enforceable and legally binding. Obligations under contracts that we can cancel without a significant
penalty are not included in the table above.
Contingent obligations arising from unrecognized tax benefits are not included in the contractual
obligations because it is expected that the unrecognized benefits would only result in an insignificant
amount of cash payments.
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