Zynga 2011 Annual Report Download - page 88

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Table of Contents
The following weighted-
average employee equity awards were excluded from the calculation of diluted net income (loss) per share and pro
forma diluted net income per share attributable to common stockholders because their effect would have been anti-dilutive for the periods
presented (in thousands):
11. Commitments and Contingencies
Lease Commitments
We have entered into operating leases for facilities space. In 2010, we executed an operating lease agreement for 267,000 square feet of
office space for our headquarters in San Francisco, California. The lease term is seven years from the defined commencement date, with options
to renew for two five-year terms. Under the terms of the lease we were provided $13.6 million in leasehold incentives and $9.8 million in rent
abatements. In 2011 this agreement was amended three times to add an aggregate of approximately 140,000 square feet of additional office
space. Under the terms of the amendments we were provided an aggregate of $4.9 million in leasehold incentives and $5.2 million in rent
abatements. Currently we intend to maintain our headquarters in San Francisco through the initial lease term, and therefore, amortize associated
incentives and recognize rent associated with the lease on a straight line basis over the initial lease term. The minimum lease commitments for
this lease agreement are included in the table below. Future minimum lease payments that have initial or remaining non-cancelable lease terms
as of December 31, 2011, are as follows (in millions):
Rent expense on operating leases for facilities for the years ended December 31, 2011, 2010 and 2009 totaled $14.4 million, $7.0 million
and $2.2 million, respectively. Future lease obligations increased in 2011 for costs related to additional leases and amendments.
Other Purchase Commitments
We have entered into several service contracts for hosting of data systems and payment processing. Future minimum purchase
commitments that have initial or remaining non-cancelable terms as of December 31, 2011, are as follows (in millions):
Future minimum purchase commitments increased in 2011 for costs associated with hosting of data systems.
84
Year Ended December 31,
2011
2010
2009
Stock options
103,565
5,235
12,768
Warrants
17,215
—
18,507
Unvested ZSUs
47,392
—
—
Total
168,172
5,235
31,275
Year ending December 31:
2012
31.1
2013
37.3
2014
40.1
2015
38.8
2016 and thereafter
110.0
257.3
Year ending December 31:
2012
$
9.3
2013
1.7
2014
0.2
$
11.2