Zynga 2013 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2013 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 129

  • 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
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129

Table of Contents
Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements in 2013, 2012 and 2011.
Lease Obligations
We have entered into operating leases for facilities, including data center space. As of December 31, 2013, future minimum lease payments
related to these leases are as follows (in thousands):
We do not have any material capital lease obligations, and all of our property, equipment and software has been purchased with cash.
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect
the reported amounts in our consolidated financial statements and related notes. Our significant accounting policies are described in Note 1 to
our consolidated financial statements included in this Annual Report. We have identified below our critical accounting policies and estimates
that we believe require the greatest amount of judgment. These estimates and judgments have a significant impact on our consolidated financial
statements. Actual results could differ materially from those estimates. The accounting policies that reflect our more significant estimates and
judgments and that we believe are the most critical to fully understand and evaluate our reported financial results include the following:
Revenue Recognition
We derive revenue from the sale of virtual goods and from the sale of advertising within our games.
Online Game
We operate our games as live services that allow players to play for free. Within these games, players can purchase virtual currency to
obtain virtual goods to enhance their game-playing experience. Players can primarily pay for our virtual currency using Facebook Credits when
playing our games through the Facebook platform, and can use other payment methods such as credit cards or PayPal on other platforms. We
also sell game cards that
60
Year ending December 31:
2014
$
31,215
2015
28,359
2016
22,428
2017
13,286
2018 and thereafter
45,814
$
141,102
•
Revenue recognition
•
Income taxes
•
Business combinations
•
Stock
-
based expense
•
Goodwill and indefinite
-
lived intangible assets
•
Impairment of long
-
lived assets