Zynga 2011 Annual Report Download - page 89

Table of Contents
Legal Matters
From time to time, we may become subject to legal proceedings, claims, and litigation arising in the ordinary course of business. In
addition, we may receive notification alleging infringement of patent or other intellectual property rights. Adverse results in litigation, legal
proceedings or claims may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from
offering certain games, features, or services, and may also result in changes in our business practices, which could result in additional costs or a
loss of revenues for us and otherwise harm our business. Although the results of litigation cannot be predicted with certainty, we believe that the
amount or range of reasonably possible loss related to any pending or threatened litigation will not have a material adverse effect on our
business, operating results, cash flows, or financial condition should such litigation be resolved unfavorably. We recognize legal expenses as
incurred.
Included in general and administrative expense within the consolidated statements of operations for the year ended December 31, 2010 is a
net gain of $39.3 million related to legal settlements.
Indemnification Agreements
In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business
partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services
to be provided by us, or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification
agreements with our directors and certain of our officers that will require us, among other things, to indemnify them against certain liabilities
that may arise by reason of their status or service as directors or officers. To date, we have not incurred any material costs as a result of such
indemnifications and have not accrued any liabilities related to such obligations in our consolidated financial statements.
12. 401(k) Plan
We have a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code. U.S. full-time employees qualify for
participation in the plan. To date, we have not made any matching contributions to this plan.
13. Geographical Information
The following represents our geographic revenue based on the location of our players:
14. Credit Facility
In July 2011, we executed a revolving credit agreement with certain lenders to borrow up to $1.0 billion in revolving loans. Per the terms
of the credit agreement, we paid upfront fees of $2.5 million, which were capitalized and are to be amortized over the term of the credit
agreement, and we are required to pay ongoing
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Revenue (in thousands)
Year Ended December 31,
2011
2010
2009
United States
$
734,469
$
402,010
$
88,440
All other countries(1)
405,631
195,449
33,027
Total revenue
$
1,140,100
$
597,459
$
121,467
(1)
No country exceeded 10% of our total revenue for any periods presented.
Property and equipment, net (in thousands)
Year Ended December 31,
2011
2010
2009
United States
$
242,552
$
73,649
$
34,827
All other countries
4,188
1,310
—
Total property and equipment, net
$
246,740
$
74,959
$
34,827