Zynga 2013 Annual Report Download - page 96

Table of Contents
terms of certain of our acquisition agreements. Other liabilities include various expenses that we accrue for transaction taxes, compensation
liabilities, restructuring charges and accrued accounts payable.
10. Restructuring
2013 Restructuring Plans
During 2013, we reduced our work force by approximately 550 employees and closed or exited certain office and data-center facilities as
part of an overall plan to better align our cost structure against market opportunities. As a result, we recorded restructuring charges of $42.9
million in the year ended December 31, 2013 which is included in operating expenses in our consolidated statement of operations. This
restructuring charge was composed of $25.6 million of employee severance, $15.7 million related to non-cancelable contracts and $1.6 million
related to other non-cash charges, and does not include the impact of $16.6 million of net stock-based expense reversals associated with the net
effect of forfeitures from employee terminations and the acceleration of unvested stock awards which were recorded in stock-based expense.
The remaining liability related to our 2013 restructuring plans as of December 31, 2013 was $13.5 million. This remaining liability
substantially relates to cancelled contracts and exited facilities that have lease terms which expire over the next four years.
2012 Restructuring Plan
During the fourth quarter of 2012, we implemented certain cost reduction initiatives, including a workforce reduction of 155 employees
and the consolidation of certain real estate facilities which resulted in our exit from certain facilities for which we had non-cancellable operating
leases.
For the year ended December 31, 2012, we recorded $7.9 million in restructuring charges in operating expenses within our consolidated
statement of operations, which includes employee severance costs of $7.0 million and other expenses of $0.9 million. This restructuring charge
did not include the impact of $6.9 million of 2012 stock-based expense reversals associated with employee terminations as a result of our
restructuring, which were recognized in operating expenses within our consolidated statements of operations.
For the year ended December 31, 2013, we recorded $1.7 million in restructuring charges related to our 2012 restructuring plan. This
restructuring charge did not include the impact of $0.2 million of 2012 stock-
based expense reversals associated with employee terminations as a
result of our restructuring, which were recognized in operating expenses within our consolidated statement of operations. As of December 31,
2013, there were no future payments remaining related to the 2012 restructuring plan.
11. Stockholders’ Equity
Common Stock
Our three classes of common stock are Class A common stock, Class B common stock and Class C common stock. The following are the
rights and privileges of our classes of common stock:
Dividends . The holders of outstanding shares of our Class A, Class B and Class C common stock are entitled to receive dividends out of
funds legally available at the times and in the amounts that our Board of Directors (the “Board”) may determine.
Voting Rights . Holders of our Class A common stock are entitled to one vote per share, holders of our Class B common stock are entitled
to seven votes per share and holders of our Class C common stock are entitled to 70 votes per share. In general, holders of our Class A common
stock, Class B common stock and Class C common stock will vote together as a single class on all matters submitted to a vote of stockholders,
unless
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