LinkedIn 2013 Annual Report Download - page 97

operating expenses, under non-cancelable operating leases for office facilities and data centers having
initial terms in excess of one year as of December 31, 2013, are as follows (in thousands):
Operating
Year Ending December 31, Leases(1)
2014 ..................................................... $ 71,126
2015 ..................................................... 95,992
2016 ..................................................... 96,945
2017 ..................................................... 92,853
2018 ..................................................... 83,161
Thereafter ................................................. 525,291
Total minimum lease payments ................................ $965,368
(1) Subsequent to December 31, 2013, the Company 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.
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. Additionally, the Company’s litigation costs are significant. 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. Adverse results of litigation or
regulatory matters could also result in the Company being required to change its business practices, which
could negatively impact its membership and revenue growth.
The Company records 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, it may be exposed 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
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