Google 10-K 12 Feb 10 2009 FY Annual report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$10,197,588	$8,656,672
Marketable securities	14,287,187	7,189,099
Accounts receivable, net of allowance of $80,086 and $78,884	3,178,471	2,642,192
Deferred income taxes, net	644,406	286,105
Income taxes receivable, net	23,244	0
Prepaid revenue share, expenses and other assets	836,062	1,404,114
Total current assets	29,166,958	20,178,182
Prepaid revenue share, expenses and other assets, non-current	416,119	433,846
Deferred income taxes, net, non-current	262,611	0
Non-marketable equity securities	128,977	85,160
Property and equipment, net	4,844,610	5,233,843
Intangible assets, net	774,938	996,690
Goodwill	4,902,565	4,839,854
Total assets	40,496,778	31,767,575
Current liabilities:
Accounts payable	215,867	178,004
Accrued compensation and benefits	982,482	811,643
Accrued expenses and other current liabilities	570,080	480,263
Accrued revenue share	693,958	532,547
Deferred revenue	285,080	218,084
Incomes taxes payable, net	0	81,549
Total current liabilities	2,747,467	2,302,090
Deferred revenue, non-current	41,618	29,818
Income taxes payable, net, non-current	1,392,468	890,115
Deferred income taxes, net, non-current	0	12,515
Other long-term liabilities	311,001	294,175
Stockholders' equity:
Convertible preferred stock, $0.001 par value, 100,000 shares authorized; no shares issued and outstanding	0	0
Common stock, par value	318	315
Additional paid-in capital	15,816,738	14,450,338
Accumulated other comprehensive income	105,090	226,579
Retained earnings	20,082,078	13,561,630
Total stockholders' equity	36,004,224	28,238,862
Total liabilities and stockholders' equity	40,496,778	31,767,575
Class A common stock
Stockholders' equity:
Common stock, par value	244	240
Class B common stock
Stockholders' equity:
Common stock, par value	$74	$75

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
Accounts receivable, allowance	$78,884	$80,086
Convertible preferred stock, par value per share	0.001	0.001
Convertible preferred stock, shares authorized	100,000	100,000
Convertible preferred stock, shares issued	0	0
Convertible preferred stock, shares outstanding	0	0
Class A and Class B common stock, par value per share	0.001	0.001
Class A and Class B common stock, shares authorized	9,000,000	9,000,000
Common stock, par value	318	315
Common stock, shares issued	317,772	315,114
Common stock, shares outstanding	317,772	315,114
Class A common stock, shares subject to repurchase	0	26
Class A common stock
Common stock, par value	244	240
Common stock, shares issued	243,611	240,073
Common stock, shares outstanding	243,611	240,073
Class B common stock
Common stock, par value	$74	$75
Common stock, shares issued	74,161	75,041
Common stock, shares outstanding	74,161	75,041

Consolidated Statements Of Inco

Consolidated Statements Of Income (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues	$23,650,563	$21,795,550	$16,593,986
Costs and expenses:
Cost of revenues (including stock-based compensation expense of $22,335, $41,340, $47,051)	8,844,115	8,621,506	6,649,085
Research and development (including stock-based compensation expense of $569,797, $732,418, $725,342)	2,843,027	2,793,192	2,119,985
Sales and marketing (including stock-based compensation expense of $131,638, $206,020, $231,019)	1,983,941	1,946,244	1,461,266
General and administrative (including stock-based compensation expense of $144,876, $139,988, $160,642)	1,667,294	1,802,639	1,279,250
Total costs and expenses	15,338,377	15,163,581	11,509,586
Income from operations	8,312,186	6,631,969	5,084,400
Impairment of equity investments	0	(1,094,757)	0
Interest income and other, net	69,003	316,384	589,580
Income before income taxes	8,381,189	5,853,596	5,673,980
Provision for income taxes	1,860,741	1,626,738	1,470,260
Net income	$6,520,448	$4,226,858	$4,203,720
Net income per share of Class A and Class B common stock:
Basic	20.62	13.46	13.53
Diluted	20.41	13.31	13.29

1_Consolidated Statements Of In

Consolidated Statements Of Income (Parenthetical) (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cost of revenues, stock-based compensation expense	$47,051	$41,340	$22,335
Research and development, stock-based compensation expense	725,342	732,418	569,797
Sales and marketing, stock-based compensation expense	231,019	206,020	131,638
General and administrative, stock-based compensation expense	$160,642	$139,988	$144,876

Consolidated Statements Of Stoc

Consolidated Statements Of Stockholders' Equity (USD $)
In Thousands	Class A and Class B Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings	Total
Beginning Balance at Dec. 31, 2006	$309	$11,882,906	$23,311	$5,133,314	$17,039,840
Beginning Balance (in shares) at Dec. 31, 2006	308,997
Stock-based award activities (in shares)	3,920
Stock-based award activities	4	1,358,315			1,358,319
Comprehensive income:
Net income				4,203,720	4,203,720
Change in unrealized gains (losses) on available-for-sale investments, net of tax			29,029		29,029
Foreign currency translation adjustment			61,033		61,033
Cumulative effect of change in accounting principle related to uncertain tax positions				(2,262)	(2,262)
Ending Balance (in shares) at Dec. 31, 2007	312,917
Ending Balance at Dec. 31, 2007	313	13,241,221	113,373	9,334,772	22,689,679
Stock-based award activities (in shares)	2,197
Stock-based award activities	2	1,209,117			1,209,119
Comprehensive income:
Net income				4,226,858	4,226,858
Change in unrealized gains (losses) on available-for-sale investments, net of tax			(12,506)		(12,506)
Foreign currency translation adjustment			(84,195)		(84,195)
Change in unrealized gains on cash flow hedges, net of tax			209,907		209,907
Ending Balance (in shares) at Dec. 31, 2008	315,114
Ending Balance at Dec. 31, 2008	315	14,450,338	226,579	13,561,630	28,238,862
Stock-based award activities (in shares)	2,658
Stock-based award activities	3	1,366,400			1,366,403
Comprehensive income:
Net income				6,520,448	6,520,448
Change in unrealized gains (losses) on available-for-sale investments, net of tax			2,562		2,562
Foreign currency translation adjustment			76,671		76,671
Change in unrealized gains on cash flow hedges, net of tax			(200,722)		(200,722)
Ending Balance (in shares) at Dec. 31, 2009	317,772
Ending Balance at Dec. 31, 2009	$318	$15,816,738	$105,090	$20,082,078	$36,004,224

Consolidated Statements Of Cash

Consolidated Statements Of Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating activities
Net income	$6,520,448	$4,226,858	$4,203,720
Adjustments:
Depreciation and amortization of property and equipment	1,240,030	1,212,237	807,743
Amortization of intangible and other assets	284,278	287,650	159,915
Stock-based compensation expense	1,164,054	1,119,766	868,646
Excess tax benefits from stock-based award activities	(90,271)	(159,088)	(379,206)
Deferred income taxes	(268,060)	(224,645)	(164,212)
Impairment of equity investments	0	1,094,757	0
Other	(20,268)	(31,910)	(39,741)
Changes in assets and liabilities, net of effects of acquisitions and divestiture:
Accounts receivable	(504,039)	(334,464)	(837,247)
Income taxes, net	217,476	626,027	744,802
Prepaid revenue share, expenses and other assets	262,035	(147,132)	(298,689)
Accounts payable	33,642	(211,539)	70,135
Accrued expenses and other liabilities	243,138	338,907	418,905
Accrued revenue share	157,669	14,000	150,310
Deferred revenue	76,066	41,433	70,329
Net cash provided by operating activities	9,316,198	7,852,857	5,775,410
Investing activities
Purchases of property and equipment	(809,888)	(2,358,461)	(2,402,840)
Purchases of marketable securities	(29,139,065)	(15,356,304)	(15,997,060)
Maturities and sales of marketable securities	22,102,867	15,762,796	15,659,473
Investments in non-marketable equity securities	(65,095)	(47,154)	(34,511)
Acquisitions, net of cash acquired and proceeds received from divestiture, and purchases of intangible and other assets	(108,024)	(3,320,299)	(906,651)
Net cash used in investing activities	(8,019,205)	(5,319,422)	(3,681,589)
Financing activities
Net proceeds (payments) from stock-based award activities	143,141	(71,521)	23,861
Excess tax benefits from stock-based award activities	90,271	159,088	379,206
Net cash provided by financing activities	233,412	87,567	403,067
Effect of exchange rate changes on cash and cash equivalents	10,511	(45,923)	40,034
Net increase in cash and cash equivalents	1,540,916	2,575,079	2,536,922
Cash and cash equivalents at beginning of year	8,656,672	6,081,593	3,544,671
Cash and cash equivalents at end of year	10,197,588	8,656,672	6,081,593
Supplemental disclosures of cash flow information
Cash paid for taxes	$1,895,966	$1,223,985	$882,688

Google Inc. and Summary of Sign

Google Inc. and Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Google Inc. and Summary of Significant Accounting Policies	Note1. Google Inc. and Summary of Significant Accounting Policies Nature of Operations We were incorporated in California in September 1998. We were re-incorporated in the State of Delaware in August 2003. We provide highly targeted advertising and global internet search solutions as well as hosted applications. Basis of Consolidation The consolidated financial statements include the accounts of Google and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, fair values of prepaid revenue share, intangible assets and goodwill, useful lives of intangible assets and property and equipment, fair values of stock-based awards, and income taxes, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Revenue Recognition The following table presents our revenues by revenue source (in thousands): Year Ended December31, 2007 2008 2009 Advertising revenues: Google web sites $ 10,624,705 $ 14,413,826 $ 15,722,486 Google Network web sites 5,787,938 6,714,688 7,166,318 Total advertising revenues 16,412,643 21,128,514 22,888,804 Licensing and other revenues 181,343 667,036 761,759 Revenues $ 16,593,986 $ 21,795,550 $ 23,650,563 Google AdWords is our automated online program that enables advertisers to place targeted text-based and display ads on our web sites and our Google Network members web sites. Display advertising includes static or animated images as well as interactive audio or video media, such as the banner ads on the tops or sides of many popular web sites. Most of our AdWords customers pay us on a cost-per-click basis, which means that an advertiser pays us only when a user clicks on one of its ads. We also offer AdWords on a cost-per-impression basis that enables advertisers to pay us based on the number of times their ads appear on our web sites and our Google Network members web sites as specified by the advertiser. Google AdSense refers to the online programs through which we distribute our advertisers AdWords ads for display on the web sites of our Google Network members as well as programs to deliver ads on television broadcasts. We recognize as revenues the fees charged advertisers each time a user clicks on one of the text-based ads that are displayed next to the search results pages on o

Net Income Per Share of Class A

Net Income Per Share of Class A and Class B Common Stock
	12 Months Ended Dec. 31, 2009 USD / shares
Net Income Per Share of Class A and Class B Common Stock	Note2. Net Income Per Share of ClassA and Class B Common Stock We compute net income per share of ClassA and Class B common stock using the two-class method. Basic net income per share is computed using the weighted-average number of common shares outstanding during the period except that it does not include unvested common shares subject to repurchase or cancellation. Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options, warrants, restricted shares, restricted stock units, and unvested common shares subject to repurchase or cancellation. The dilutive effect of outstanding stock options, restricted shares, restricted stock units, and warrants is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of ClassA common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares. The rights, including the liquidation and dividend rights, of the holders of our ClassA and Class B common stock are identical, except with respect to voting. Further, there are a number of safeguards built into our Certificate of Incorporation, as well as Delaware law, which preclude our board of directors from declaring or paying unequal per share dividends on our ClassA and Class B common stock. Specifically, Delaware law provides that amendments to our Certificate of Incorporation which would have the affect of adversely altering the rights, powers, or preferences of a given class of stock (in this case the right of our ClassA common stock to receive an equal dividend to any declared on our Class B common stock) must be approved by the class of stock adversely affected by the proposed amendment. In addition, our Certificate of Incorporation provides that before any such amendment may be put to a stockholder vote, it must be approved by the unanimous consent of our Board of Directors. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the ClassA and Class B common shares as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as we assume the conversion of Class B common stock in the computation of the diluted net income per share of ClassA common stock, the undistributed earnings are equal to net income for that computation. The following table sets forth the computation of basic and diluted net income per share of ClassA and Class B common stock (in thousands, except per share amounts): Year Ended December31, 2007 2008 2009 Class A Class B Class A Class B Class A Class B Basic net income per share: Numerator:

Cash and Investments

Cash and Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Cash and Investments	Note3. Cash and Investments Cash, cash equivalents, and marketable securities consist of the following (in thousands): As of December31, 2008 2009 Cash and cash equivalents: Cash $ 3,330,658 $ 4,302,578 Cash equivalents: Municipal securities 14,250 Time deposits 3,015,557 3,739,875 Money market mutual funds 2,296,207 2,153,175 U.S. government agencies 1,960 Total cash and cash equivalents 8,656,672 10,197,588 Marketable securities: Time deposits 1,250,000 U.S. government agencies 3,342,406 3,703,868 U.S. government notes 2,491,709 Foreign government bonds 36,643 Municipal securities 2,721,603 2,129,774 Money market mutual funds 73,034 27,899 Corporate debt securities 907,056 2,822,111 Agency residential mortgage-backed securities 1,578,644 Commercial mortgage-backed securities 47,716 Marketable equity security 145,000 198,823 Total marketable securities 7,189,099 14,287,187 Total cash, cash equivalents and marketable securities $ 15,845,771 $ 24,484,775 The following table summarizes unrealized gains and losses related to our investments in marketable securities designated as available-for-sale (in thousands): As of December31, 2008 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government agencies $ 3,324,750 $ 17,747 $ (91 ) $ 3,342,406 Municipal securities 2,690,270 34,685 (3,352 ) 2,721,603 Money market mutual funds 73,034 73,034 Corporate debt securities 903,963 3,265 (172 ) 907,056 Marketable equity security 145,000 145,000 Total $ 7,137,017 $ 55,697 $ (3,615 ) $ 7,189,099 AsofDecember 31,2009 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Time deposits $ 1,250,000 $ $ $ 1,250,000 U.S. government agencies 3,700,476 5,396 (2,004 ) 3,703,868 U.S. government notes 2,519,780 (28,071 ) 2,491,709 Foreign government bonds 36,662 (19 ) 36,643 Municipal securities 2,100,241 29,626 (93 ) 2,129,774 Money market mutual funds 27,899 27,899 Corporate debt securities 2,826,461 12,910 (17,260 ) 2,822,111 Agency residential mortgage-backed securities 1,584,537 5,511 (11,404 ) 1,578,644 Commercial mortgage-backed securities 47,141 575 47,716 Marketable equity security 145,000 53,823 198,823 Total $ 14,238,197 $ 107,841 $ (58,851 ) $ 14,287,187 Gross unrealized gains and losses on cash equivalents were

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Financial Instruments	Note4. Derivative Financial Instruments We enter into foreign currency contracts with financial institutions to reduce the risk that our cash flows, earnings, and fair value of certain marketable securities will be adversely affected by foreign currency exchange rate fluctuations. Our program is not designated for trading or speculative purposes. We recognize derivative instruments as either assets or liabilities on the balance sheet at fair value. We record changes in the fair value (i.e., gains or losses) of the derivatives in the accompanying Consolidated Statements of Income as interest income and other, net, as part of revenues, or to accumulated other comprehensive income (AOCI) on the accompanying Consolidated Balance Sheets. Cash Flow Hedges We use options designated as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. We initially report any gain on the effective portion of a cash flow hedge as a component of AOCI and we subsequently reclassify those gains to revenues when the hedged revenues are recorded or as interest income and other, net, if the hedged transaction becomes probable of not occurring. At December31, 2009, the effective portion of our cash flow hedges before tax effect was $15.5 million, of which $8.9 million is expected to be reclassified from AOCI to revenues within the next 12 months. We recognize any gain after a hedge is de-designated or related to an ineffective portion of a hedge in interest income and other, net, immediately. Further, we exclude the change in the time value of the options from our assessment of hedge effectiveness. We record the premium paid or time value of an option whose strike price is equal to or greater than the market price on the date of purchase as an asset. Thereafter, we recognize any change to this time value in interest income and other, net. The notional principal of foreign exchange contracts to purchase U.S. dollars with Euros was 1.9 billion (or approximately $2.6 billion) and 1.6 billion (or approximately $2.2 billion) at December31, 2008 and December31, 2009; the notional principal of foreign exchange contracts to purchase U.S. dollars with British pounds was 1.1 billion (or approximately $1.8 billion) and 809.1million (or approximately $1.3 billion) at December31, 2008 and December31, 2009; and the notional principal of foreign exchange contracts to purchase U.S. dollars with Canadian dollars was C$229.7 million (or approximately $202.2 million) and C$306.2 million (or approximately $267.9 million) at December31, 2008 and December31, 2009. These foreign exchange options have maturities of 36 months or less. There were no other foreign exchange contracts designated as cash flow hedges. Fair Value Hedges In November 2009, we began using forward contracts designated as fair value hedges to hedge foreign currency risks for our investments denominated in currencies other than the U.S. dollar. Gains and losses on these contracts are recognized in interest income and other, net along with the offsetting losses and gains of the related hedged items. We exclude changes in the ti

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements	Note5. Fair Value Measurements We measure our cash equivalents, marketable securities, ARS, and foreign currency derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level1Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level2Include other inputs that are directly or indirectly observable in the marketplace. Level3Unobservable inputs which are supported by little or no market activities. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We classify our cash equivalents and marketable securities within Level 1 or Level 2. This is because we value our cash equivalents and marketable securities using quoted market prices or alternative pricing sources and models utilizing market observable inputs. We classify our investments in ARS within Level 3 because they are valued using valuation techniques (see Note 3). Some of the inputs to these models are unobservable in the market and are significant. We classify our foreign currency derivative contracts within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fairvaluemeasurementatreportingdateusing Description As of December31, 2008 QuotedPricesinActive MarketsforIdenticalAssets (Level 1) SignificantOther ObservableInputs (Level 2) Significant UnobservableInputs (Level 3) Assets Cash equivalents: Municipal securities $ 14,250 $ $ 14,250 $ Time deposits 3,015,557 3,015,557 Money market mutual funds 2,296,207 2,296,207 Marketable securities: U.S. government agencies 3,342,406 3,342,406 Municipal securities 2,721,603 2,721,603 Money market mutual funds 73,034 73,034 Corporate debt securities 907,056 907,056 Marketable equity security 145,000 145,000 Foreign currency derivative contracts 464,993 464,993 Auction rate securities 197,361 197,361 Total $ 13,177,467 $ 2,441,207 $ 10,538,899 $ 197,361 Liabilities Foreign currency derivative contracts $ 877 $ $ 877 $ Total $ 877 $ $ 877 $

Property and Equipment

Property and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Property and Equipment	Note6. Property and Equipment Property and equipment consist of the following (in thousands): As of December31, 2008 2009 Information technology assets $ 3,573,499 $ 3,868,287 Construction in progress 1,643,136 1,643,630 Land and buildings 1,725,336 1,907,532 Leasehold improvements 572,908 645,876 Furniture and fixtures 61,462 64,809 Total 7,576,341 8,130,134 Less accumulated depreciation and amortization 2,342,498 3,285,524 Property and equipment, net $ 5,233,843 $ 4,844,610

Acquisitions

Acquisitions
	12 Months Ended Dec. 31, 2009 USD / shares
Acquisitions	Note7. Acquisitions During the year ended December31, 2009, we completed ten acquisitions for a total cash consideration of $91.6 million. Goodwill is not deductible for tax purposes. Patents and developed technology have a weighted-average useful life of 4.0 years and customer relationships have a weighted-average useful life of 6.4 years. The following table summarizes the allocation of the purchase price for all of the above acquisitions (in thousands): Goodwill $ 60,798 Patents and developed technology 29,770 Customer relationships 8,900 Net liabilities assumed (105 ) Deferred tax liabilities (7,764 ) Total $ 91,599 On August5, 2009, we entered into an Agreement and Plan of Merger with On2 Technologies, Inc. (On2), a publicly-held company and developer of video compression technology. In January 2010, we entered into an amendment to the Agreement and Plan of Merger with On2. Upon the consummation of the merger, each stockholder of On2 will have the right to receive 0.0010 shares of Google ClassA common stock, $0.15of cash, and cash in lieu of any fractional shares. The total purchase price is approximately $124 million based on the closing price of our Class A common stock on February 10, 2010. The completion of this transaction is subject to On2 stockholder approval. We expect this transaction to close in the first quarter of 2010. On November9, 2009, we signed a definitive agreement to acquire AdMob, Inc., a privately-held mobile display ads technology provider, for $750 million in Google ClassA common stock. The completion of this transaction is subject to customary closing conditions. We expect this transaction to close in the first half of 2010.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Goodwill and Other Intangible Assets	Note8. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill are as follows (in thousands): Balance as of December31, 2008 $ 4,839,854 Goodwill acquired 60,798 Goodwill adjustment 1,913 Balance as of December31, 2009 $ 4,902,565 Information regarding our acquisition-related intangible assets that are being amortized is as follows (in thousands): As of December31, 2008 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 551,332 $ 297,428 $ 253,904 Customer relationships 800,113 153,516 646,597 Tradenames and other 209,492 113,303 96,189 Total $ 1,560,937 $ 564,247 $ 996,690 As of December 31, 2009 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 566,372 $ 380,492 $ 185,880 Customer relationships 783,613 257,319 526,294 Tradenames and other 210,902 148,138 62,764 Total $ 1,560,887 $ 785,949 $ 774,938 Patents and developed technology, customer relationships, and tradenames and other have weighted-average useful lives from the date of purchase of 4.0 years, 6.4 years, and 4.6 years. Amortization expense of acquisition-related intangible assets for the years ended December31, 2007, 2008, and 2009 was $158.2 million, $279.7 million, and $266.2 million. As of December31, 2009, expected amortization expense for acquisition-related intangible assets for each of the next five years and thereafter was as follows (in thousands): 2010 230,077 2011 182,395 2012 140,695 2013 108,967 2014 101,402 Thereafter 11,402 $ 774,938

Interest Income and Other, Net

Interest Income and Other, Net
	12 Months Ended Dec. 31, 2009 USD / shares
Interest Income and Other, Net	Note9. Interest Income and Other, Net The components of interest income and other, net are as follows (in thousands): Year Ended December31, 2007 2008 2009 Interest income $ 559,205 $ 389,533 $ 229,673 Realized gains on marketable securities, net 51,198 94,205 96,738 Foreign currency exchange losses, net (16,169 ) (171,877 ) (259,778 ) Other (4,654 ) 4,523 2,370 Interest income and other, net $ 589,580 $ 316,384 $ 69,003

Comprehensive Income

Comprehensive Income
	12 Months Ended Dec. 31, 2009 USD / shares
Comprehensive Income	Note10. Comprehensive Income The changes in the components of other comprehensive income are as follows (in thousands): Year Ended December31, 2007 2008 2009 Net income $ 4,203,720 $ 4,226,858 $ 6,520,448 Change in unrealized gains (losses) on available-for-sale investments, net of taxes(1) 29,029 (12,506 ) 2,562 Change in foreign currency translation adjustment 61,033 (84,195 ) 76,671 Changeinunrealizedgainsoncashflowhedges,netoftaxes(2) 209,907 (200,722 ) Comprehensive income $ 4,293,782 $ 4,340,064 $ 6,398,959 (1) Change in unrealized gains (losses) on available-for-sale investments is recorded net of taxes of $20.0 million, $8.9 million, and $6.4 million for the years ended December31, 2007, 2008, and 2009. (2) Change in unrealized gains on cash flow hedges is recorded net of taxes of $144.4 million and $138.0 million for the years ended December31, 2008 and 2009. The components of accumulated other comprehensive income are as follows (in thousands): Asof December31, 2008 2009 Unrealized net gains on available-for-sale investments, net of taxes $ 9,995 $ 12,557 Foreign currency translation adjustment 6,677 83,348 Unrealized gains on cash flow hedges, net of taxes 209,907 9,185 Accumulated other comprehensive income $ 226,579 $ 105,090

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies	Note11. Commitments and Contingencies Operating Leases We have entered into various non-cancelable operating lease agreements for certain of our offices, land, and data centers throughout the world with original lease periods expiring between 2010 and 2063. We are committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis. At December31, 2009, future minimum payments under non-cancelable operating leases, along with sublease income amounts, were as follows over each of the next five years and thereafter (in thousands): Operating Leases Sub-lease Income Net Operating Leases 2010 $ 309,711 $ 26,544 $ 283,167 2011 295,885 23,717 272,168 2012 275,684 13,897 261,787 2013 237,473 6,926 230,547 2014 187,788 5,275 182,513 Thereafter 1,237,338 5,639 1,231,699 Total minimum payments required $ 2,543,879 $ 81,998 $ 2,461,881 Certain leases have adjustments for market provisions. Amounts in the table above represent our best estimates of future payments to be made under these leases. Rent expense under operating leases, including co-location arrangements, was $164.3 million, $313.6 million, and $323.2 million in 2007, 2008, and 2009. Guaranteed Minimum Revenue Share Payments In connection with our AdSense revenue share agreements, we are periodically required to make non-cancelable guaranteed minimum payments to a small number of our Google Network members over the term of the respective contracts. Under our contracts, these guaranteed payments may be adjusted downward based on our Google Network members not achieving defined performance targets, such as number of advertisements displayed or search queries. In most cases, certain guaranteed amounts will be adjusted downward if our Google Network members do not meet their performance targets. In all of these AdSense agreements, if a Google Network member were unable to perform under the contract, such as being unable to provide search queries, as defined under the terms of that agreement, then we would not be obligated to make any non-cancelable guaranteed minimum revenue payments to that member. At December31, 2009, our aggregate outstanding non-cancelable guaranteed minimum revenue share commitments totaled $133.3 million through 2012 compared to $1,030.3million at December31, 2008. We believe these amounts represent a reasonable estimate of the future minimum guaranteed payments. Purchase Obligations We had $360.7 million of other non-cancelable contractual obligations and $1.9 billion of open purchase orders for which we had not received the related services or goods at December31, 2009. We have the right to cancel these open purchase orders prior to the date of delivery. The majority of our non-cancelable contractual obligations are related to da

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity	Note12. Stockholders Equity Convertible Preferred Stock Our Board of Directors has authorized 100,000,000 shares of convertible preferred stock, $0.001 par value, issuable in series. At December31, 2008 and 2009, there were no shares issued or outstanding. ClassA and Class B Common Stock Our Board of Directors has authorized two classes of common stock, ClassA and Class B. At December31, 2009, there were 6,000,000,000 and 3,000,000,000 shares authorized and there were 243,611,368 and 74,160,683 shares legally outstanding of ClassA and Class B common stock. The rights of the holders of ClassA and Class B common stock are identical, except with respect to voting. Each share of ClassA common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share. Shares of Class B common stock may be converted at any time at the option of the stockholder and automatically convert upon sale or transfer to ClassA common stock. We refer to ClassA and Class B common stock as common stock throughout the notes to these financial statements, unless otherwise noted. Stock Plans We maintain the 1998 Stock Plan, the 2000 Stock Plan, the 2003 Stock Plan, the 2003 Stock Plan (No.2), the 2003 Stock Plan (No. 3), the 2004 Stock Plan, and plans assumed through acquisitions, all of which are collectively referred to as the Stock Plans. Under our Stock Plans, incentive and nonqualified stock options or rights to purchase common stock may be granted to eligible participants. Options are generally granted for a term of 10 years. Except for options granted pursuant to the Exchange discussed below, options granted under the Stock Plans generally vest 25% after the first year of service and ratably each month over the remaining 36 month period contingent upon employment with us on the vesting date. Options granted under Stock Plans other than the 2004 Stock Plan may be exercised prior to vesting. Under the Stock Plans, we have also issued RSUs and restricted shares. An RSU award is an agreement to issue shares of our stock at the time of vest. RSUs issued to new employees vest over four years with a yearly cliff contingent upon employment with us on the dates of vest. These RSUs vest from zero to 50.0% of the grant amount at the end of each of the four years from date of hire based on the employees performance. RSUs under the Founders Award programs are issued to individuals on teams that have made extraordinary contributions to Google. These awards vest quarterly over four years contingent upon employment with us on the vesting dates. At December31, 2008 and December31, 2009, there were 23,236,325 and 27,042,948 shares of common stock reserved for future issuance under our Stock Plans. We estimated the fair value of each option award on the date of grant using the BSM option pricing model. Our assumptions about stock-price volatility have been based exclusively on the implied volatilities of publicly traded options to buy our stock with contractual terms closest to the expected life of options granted to our employees. Through the third quarter of 2007, our assumptions about the expected term h

401

401(k) Plan
	12 Months Ended Dec. 31, 2009 USD / shares
401(k) Plan	Note13. 401(k) Plan We have a 401(k) Savings Plan (401(k)Plan)that qualifies as a deferred salary arrangement under Section401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 60% of their eligible compensation, subject to certain limitations. Employee and our contributions are fully vested when contributed. We contributed approximately $51.1 million, $72.6 million, and $82.5 million during 2007, 2008, and 2009.

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes	Note14. Income Taxes Income before income taxes included income from foreign operations of $2,466.9 million, $3,793.7 million, and $4,802.1 million for 2007, 2008, and 2009. The provision for income taxes consists of the following (in thousands): Year Ended December31, 2007 2008 2009 Current: Federal $ 1,288,310 $ 1,348,210 $ 1,531,016 State 294,935 467,572 449,828 Foreign 51,227 90,930 147,956 Total 1,634,472 1,906,712 2,128,800 Deferred: Federal (135,047 ) (197,593 ) (273,552 ) State (29,165 ) (62,538 ) 13,111 Foreign (19,843 ) (7,618 ) Total (164,212 ) (279,974 ) (268,059 ) Provision for income taxes $ 1,470,260 $ 1,626,738 $ 1,860,741 The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows (in thousands): Year ended December31, 2007 2008 2009 Expected provision at federal statutory tax rate (35%) $ 1,985,893 $ 2,048,758 $ 2,933,416 State taxes, net of federal benefit 172,750 263,272 302,493 Stock-based compensation expense 123,869 90,805 62,574 Impairment of investments 312,603 (40,663 ) Foreign rate differential (705,400 ) (1,019,536 ) (1,340,962 ) Federal research credit (81,469 ) (51,841 ) (55,767 ) Tax exempt interest (50,662 ) (51,713 ) (14,836 ) Other permanent differences 25,279 34,390 14,486 Provision for income taxes $ 1,470,260 $ 1,626,738 $ 1,860,741 We have not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as of December31, 2009 because we intend to permanently reinvest such earnings outside the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of December31, 2009, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $12.3 billion. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. Deferred Tax Assets Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows (in thousands): As of December31, 2008 2009 Deferred tax assets: Stock-based compensation expense $ 211,311 $ 273,979 State taxes 132,827 161,808 Capital loss from impairment of equ

Information about Geographic Ar

Information about Geographic Areas
	12 Months Ended Dec. 31, 2009 USD / shares
Information about Geographic Areas	Note15. Information about Geographic Areas Our chief operating decision-makers (i.e., chief executive officer, certain of his direct reports, and our founders) review financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of allocating resources and evaluating financial performance. There are no segment managers who are held accountable by our chief operating decision-makers, or anyone else, for operations, operating results, and planning for levels or components below the consolidated unit level. Accordingly, we consider ourselves to be in a single reporting segment and operating unit structure. Revenues by geography are based on the billing address of the advertiser. The following table sets forth revenues and long-lived assets by geographic area (in thousands): Year Ended December31, 2007 2008 2009 Revenues: United States $ 8,698,021 $ 10,635,553 $ 11,193,557 United Kingdom 2,530,916 3,038,488 2,986,040 Rest of the world 5,365,049 8,121,509 9,470,966 Total revenues $ 16,593,986 $ 21,795,550 $ 23,650,563 As of December31, 2008 2009 Long-lived assets: United States $ 9,782,825 $ 9,432,113 International 1,806,568 1,897,707 Total long-lived assets $ 11,589,393 $ 11,329,820

Schedule II: Valuation and Qual

Schedule II: Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule II: Valuation and Qualifying Accounts	Schedule II: Valuation and Qualifying Accounts Allowance for Doubtful Accounts and Sales Credits Balance at Beginningof Year Chargedto Expenses/ Against Revenue Write-Offs, Net of Recoveries Balance at EndofYear (In thousands) Year ended December31, 2007 $ 16,914 $ 46,001 $ (30,028 ) $ 32,887 Year ended December31, 2008 $ 32,887 $ 161,234 $ (114,035 ) $ 80,086 Year ended December31, 2009 $ 80,086 $ 148,625 $ (149,827 ) $ 78,884 Note: Additions to the allowance for doubtful accounts are charged to expense. Additions to the allowance for sales credits are charged against revenues.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 29, 2010	Jun. 30, 2009
Trading Symbol	GOOG
Entity Registrant Name	Google Inc.
Entity Central Index Key	0001288776
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		243,872,592
Entity Public Float			$97,782,305,918
Class B common stock
Entity Common Stock, Shares Outstanding		74,106,699