Zynga 2015 Annual Report Download - page 44

Table of Contents
Therequirementsofbeingapubliccompanymaystrainourresources,divertmanagement’sattentionandaffectourabilitytoattractandretainqualified
boardmembers.*
We are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of the NASDAQ
Global Select Market and other applicable securities rules and regulations. Compliance with these rules and regulations has increased and will continue to increase
our legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources. The
Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business and operating results.
As a result of disclosure of information in this Annual Report on Form 10-K and in our other public filings with the SEC as required of a public company,
our business and financial condition have become more visible, which we believe may result in threatened or actual litigation, including by competitors and other
third parties. If such claims are successful, our business and operating results could be harmed, and even if the claims do not result in litigation or are resolved in
our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and harm our business and operating
results.
Wehavenoplanstopaydividendsfortheforeseeablefuture.*
We have never declared or paid any cash dividends on our common stock and do not have any plans to pay cash dividends in the foreseeable future. Any
determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their Class A common
stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We own our San Francisco, California corporate headquarters, an office building of approximately 660,000 square feet. We use approximately 360,000
square feet for our operations and lease most of the remainder to third-party tenants under leases that range in terms from month-to-month to terms through 2021.
The San Francisco facility currently accommodates our principal executive, development, engineering, marketing, business development, human resources,
finance, legal, information technology and administrative activities.
We lease additional domestic office space in San Francisco, California; Carlsbad, California; Eugene, Oregon; Portland, Oregon; Austin, Texas; Chicago,
Illinois; and New York, New York. We lease offices for our foreign operations in: Toronto, Canada; Victoria, Canada; Bangalore, India; Dublin, Ireland; Oxford,
England; Brighton, England; and London, England. These additional domestic and international facilities total approximately 160,000 square feet, excluding
restructured properties.
We believe that our existing facilities are sufficient for our current needs. We believe that suitable additional or substitute space will be available as needed
to accommodate changes in our operations.
ITEM 3. LEGAL PROCEEDINGS
For a description of our material legal proceedings, see the section titled “Legal Matters’ included in Note 12—“Commitments and Contingencies” in the
notes to the consolidated financial statements, which is incorporated by reference herein.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
41