NetFlix 2011 Annual Report Download - page 66

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knowledge, management does not believe that the amount of such possible loss or a range of potential loss is
reasonably estimable.
The Company is involved in other litigation matters not listed above but does not consider the matters to be
material either individually or in the aggregate at this time. The Company’s view of the matters not listed may
change in the future as the litigation and events related thereto unfold.
6. Guarantees—Indemnification Obligations
In the ordinary course of business, the Company has entered into contractual arrangements under which it
has agreed 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.
The Company’s obligations under these agreements may be limited in terms of time or amount, and in some
instances, the Company may have recourse against third-parties for certain payments. In addition, the Company
has entered into indemnification agreements with its directors and certain of its officers that will require it,
among other things, to indemnify them against certain liabilities that may arise by reason of their status or service
as directors or officers. The terms of such obligations vary.
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