Zynga 2012 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2012 Zynga annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

The following weighted-average employee equity awards were excluded from the calculation of diluted net
income (loss) per share because their effect would have been anti-dilutive for the periods presented (in
thousands):
Twelve Months Ended December 31,
2012 2011 2010
Stock options .................................... 86,054 103,565 5,235
Warrants ....................................... 695 17,215 —
Restricted shares ................................. 14,185 — —
ZSUs .......................................... 71,290 47,392 —
Total .......................................... 172,224 168,172 5,235
13. Commitments and Contingencies
Lease Commitments
We have entered into operating leases for facilities, primarily for data center space. As of December 31,
2012, future minimum lease payments related to these leases are as follows (in thousands):
Year ending December 31:
2013 ........................................ $ 33,166
2014 ........................................ 33,138
2015 ........................................ 30,415
2016 ........................................ 24,807
2017 ........................................ 15,213
2018 and thereafter ............................. 45,982
$182,721
Rent expense on operating leases for facilities for the years ended December 31, 2012, 2011 and 2010
totaled $11.2 million, $14.4 million and $7.0 million, respectively.
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, 2012,
are as follows (in thousands):
Year ending December 31:
2013 .......................................... $2,489
2014 .......................................... 1,699
2015 .......................................... 471
$4,658
Legal Matters
On July 30, 2012, a purported securities class action captioned DeStefano v. Zynga Inc. et al., Case
No. 3:12-cv-04007-JSW, was filed in the United States District Court for the Northern District of California
against the Company, and certain of our current and former directors, officers, and executives. Additional
purported securities class actions containing similar allegations have since been filed in the Northern District. On
September 26, 2012, the court consolidated various of the class actions as In re Zynga Inc. Securities Litigation,
98