LinkedIn 2014 Annual Report Download - page 47

insolvency proceedings, we will become an unsecured creditor in those proceedings with a claim equal
to our exposure at the time under those transactions. Our exposure will depend on many factors but,
generally, the increase in our exposure will be correlated to the increase in the market price of our
common stock and in the volatility of the market price of our common stock. In addition, upon a default
by one of the option counterparties, we may suffer adverse tax consequences and dilution with respect
to our common stock. We can provide no assurances as to the financial stability or viability of any of
the option counterparties.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Our headquarters is located in Mountain View, California, where we lease approximately 373,000
square feet of office space under a lease that expires in 2023. We also lease office space of
approximately 1,876,000 square feet in locations throughout the United States and approximately
634,000 square feet internationally, some of which is currently under construction. We own land in
Mountain View, CA, and Dublin, Ireland, where we are building or are planning to build additional office
space. In addition, we have data centers in the United States and Singapore 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.
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.
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