Google 2008 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 of the 2008 Google 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 130

  • 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
  • 126
  • 127
  • 128
  • 129
  • 130

Google Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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 December 31,
2006 2007 2008
Revenues:
United States ........................................... $6,030,140 $ 8,698,021 $10,635,553
United Kingdom ......................................... 1,603,842 2,530,916 3,038,488
Rest of the world ........................................ 2,970,935 5,365,049 8,121,509
Total revenues ...................................... $10,604,917 $16,593,986 $21,795,550
As of December 31,
2007 2008
Long-lived assets:
United States .......................................................... $7,334,877 $ 9,782,825
International ........................................................... 711,791 1,806,568
Total long-lived assets ............................................. $8,046,668 $11,589,393
Note 16. Subsequent Event
On February 3, 2009, we commenced an exchange offer to allow employees the opportunity to exchange all
or a portion of their eligible outstanding stock options for the same number of new options. We expect that new
options will have an exercise price equal to the closing price per share of our common stock on March 6, 2009 and
that stock options with exercise prices above this closing price will be eligible for the exchange offer. Generally, all
employees with options are eligible to participate in the program (Eric Schmidt, Sergey Brin, and Larry Page do not
hold options). The exchange offer is currently set to expire at 6 a.m. Pacific Time on March 9, 2009.
The number of common shares subject to outstanding options will not change as a result of the exchange
offer. New options issued as part of the exchange offer will be subject to a new vesting schedule which adds 12
months to the original applicable vesting dates. In addition, new options will vest no sooner than six months after
the close of the offer period. The expiration dates of the new options will remain the same as the expiration dates of
the options being exchanged.
We expect to take a modification charge of approximately $400 million over the vesting periods of the new
options which range from six months to five years. Assuming our exchange offer proceeds according to our
planned timeline, this modification charge will be recorded as additional stock based compensation beginning in
the first quarter of 2009. This modification charge is estimated assuming an exchange price of approximately
$350 and that all eligible underwater options will be exchanged, and the actual amount of the modification charge
is likely to be different from the estimate provided above.
96