Zynga 2014 Annual Report Download - page 108

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Table of Contents
12. Commitments and Contingencies
Lease Commitments
We have entered into operating leases for facilities, primarily for data center space. As of December 31, 2014, future minimum lease
payments related to these leases are as follows (in thousands):
Rent expense on operating leases for facilities, excluding data center hosting expense, for the years ended December 31, 2014, 2013 and
2012 totaled $4.5 million, $7.3 million, and $11.2 million, respectively.
Credit Facility
In June 2013, we amended and restated our existing revolving credit agreement (“Credit Agreement”)
which we originally executed in July
2011, reducing our maximum available credit from $1.0 billion to $200 million, and extending the term of our amended agreement to expire in
June of 2018. The interest rate for the credit facility is determined based on a formula using certain market rates, as described in the amended
credit agreement. Additionally, our minimum quarterly commitment fee was reduced from $0.6 million per quarter to $0.1 million per quarter
based on the portion of the credit facility that is not drawn down. The agreement requires us to comply with certain covenants, including
maintaining a minimum capitalization ratio, and maintaining a minimum cash balance. As of December 31, 2014, we have not drawn down any
amounts under the credit facility and are in compliance with these covenants.
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, 2014, are as follows (in thousands):
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 were filed in the Northern District. On
September 26, 2012, the court consolidated various of the class actions as In re Zynga Inc. Securities Litigation, Lead Case No. 12-cv-04007-
JSW. On January 23, 2013, the court entered an order appointing a lead plaintiff and approving lead plaintiff’s selection of lead counsel. On
April 3, 2013, the lead plaintiff and another named plaintiff filed a consolidated complaint. On February 25, 2014, the court granted the
defendants’ motion to dismiss the consolidated complaint and provided plaintiffs leave to file an amended complaint.
105
Year ending December 31:
2015
$
28,058
2016
22,753
2017
13,046
2018
11,785
2019 and thereafter
33,964
$
109,606
Year ending December 31:
2015
$
8,302
2016
4,659
2017
1,145
$
14,106