Zynga 2014 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2014 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 125

  • 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

Table of Contents
Off-Balance Sheet Arrangements
We did not have any off-balance sheet arrangements in 2014, 2013 and 2012.
Lease Obligations
We have entered into operating leases for facilities, including data center space. As of December 31, 2014, 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 associated with our online games and the sale of advertising.
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 pay for our virtual currency using Facebook local currency payments
when playing our games through the Facebook platform. On platforms other than Facebook, players purchase our virtual currency and/or virtual
goods through
66
Year ending December 31:
2015
$
28,058
2016
22,753
2017
13,046
2018
11,785
2019 and thereafter
33,964
$
109,606
•
Revenue recognition
•
Income taxes
•
Business combinations
•
Stock
-
based expense
•
Goodwill and indefinite
-
lived intangible assets
•
Impairment of long
-
lived assets