Facebook 2012 Annual Report Download - page 96

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The following is a schedule, by years, of the future minimum lease payments required under non-cancelable
capital and operating leases as of December 31, 2012 (in millions):
Capital
Leases
Operating
Leases
2013 ..................................................................... $398 $142
2014 ..................................................................... 278 128
2015 ..................................................................... 125 117
2016 ..................................................................... 20 110
2017 ..................................................................... 15 102
Thereafter ................................................................ 143 252
Total minimum lease payments ............................................... $979 $851
Less: amount representing interest and taxes ..................................... (123)
Less: current portion of the present value of minimum lease payments ................. (365)
Capital lease obligations, net of current portion ................................... $491
Operating lease expenses totaled $196 million, $219 million, and $178 million for the years ended
December 31, 2012, 2011 and 2010, respectively.
Other contractual commitments
We also have $749 million of non-cancelable contractual commitments as of December 31, 2012, primarily
related to equipment and supplies for our data center operations, and, to a lesser extent, construction of our data
center sites. The majority of these commitments are due in 2013.
Contingencies
Legal Matters
Beginning on May 22, 2012, multiple putative class actions, derivative actions, and individual actions were
filed in state and federal courts in the United States and in other jurisdictions against us, our directors, and/or
certain of our officers alleging violation of securities laws or breach of fiduciary duties in connection with our
IPO and seeking unspecified damages. We believe these lawsuits are without merit, and we intend to continue to
vigorously defend them. On October 4, 2012, on our motion, the vast majority of the cases in the United States,
along with multiple cases filed against The NASDAQ OMX Group, Inc. and The Nasdaq Stock Market LLC
(collectively referred to herein as NASDAQ) alleging technical and other trading-related errors by NASDAQ in
connection with our IPO, were ordered centralized for coordinated or consolidated pre-trial proceedings in the
United States District Court for the Southern District of New York. In addition, the events surrounding our IPO
have become the subject of various government inquiries, and we are cooperating with those inquiries.
In the opinion of management, there was not at least a reasonable possibility we may have incurred a
material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies relating to the
matters set forth above. However, the outcome of litigation is inherently uncertain. Therefore, although
management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were
resolved against us in the same reporting period for amounts in excess of management’s expectations, our
consolidated financial statements of a particular reporting period could be materially adversely affected.
We are also party to various legal proceedings and claims which arise in the ordinary course of business.
Among these pending legal matters, two cases are currently scheduled for trial in the near future: Summit 6 LLC
v. Research in Motion Corporation et al., Case No. 3:11cv00367, is scheduled to begin trial as early as
February 19, 2013, in the U.S. District Court for the Northern District of Texas, and Timelines, Inc. v. Facebook,
Inc., Case No. 1:2011cv06867, is scheduled to begin trial on April 22, 2013, in the U.S. District Court for the
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