Google 2008 Annual Report Download - page 91

Google Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
recorded in accumulated other comprehensive income as a component of stockholders’ equity. We recorded
$38.6 million and $61.0 million of net translation gains in 2006 and 2007, and $84.2 million of net translation
losses in 2008. Net gains and losses resulting from foreign exchange transactions are recorded as a component of
interest income and other, net. These gains and losses are net of those realized on forward foreign exchange
contracts. We recorded $5.3 million of net gains, $16.2 million and $35.6 million of net losses in 2006, 2007 and
2008 from assets and liabilities denominated in a currency other than the local currency.
Legal Costs
Legal costs are expensed as incurred.
Advertising and Promotional Expenses
We expense advertising and promotional costs in the period in which they are incurred. For the years ended
December 31, 2006, 2007 and 2008, promotional and advertising expenses totaled approximately $188.4 million,
$236.7 million and $266.4 million.
Effect of Recent Accounting Pronouncements
In December 2007, the FASB issued SFAS 141R. SFAS 141R establishes principles and requirements for how
an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities
assumed, any noncontrolling interest in the acquiree and the goodwill acquired. SFAS 141R also establishes
disclosure requirements to enable the evaluation of the nature and financial effects of the business combination.
This statement is effective for us beginning January 1, 2009. The impact of the adoption of SFAS 141R on our
consolidated financial position, results of operations will largely be dependent on the size and nature of the
business combinations completed after the adoption of this statement.
In December 2007, the FASB issued SFAS 160. SFAS 160 establishes accounting and reporting standards
for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net
income attributable to the parent and to the noncontrolling interest, changes in a parent’s ownership interest, and
the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. SFAS 160 also
establishes disclosure requirements that clearly identify and distinguish between the interests of the parent and
the interests of the noncontrolling owners. This statement is effective for us beginning January 1, 2009. We do not
expect the impact of the adoption of SFAS 160 to be material.
In February 2008, the FASB issued FSP 157-2, which delays the effective date of SFAS 157 for all
nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the
financial statements on a recurring basis (at least annually). SFAS 157 establishes a framework for measuring fair
value and expands disclosures about fair value measurements. FSP 157-2 partially defers the effective date of
SFAS 157 to fiscal years beginning after November 15, 2008, and interim periods within those fiscal years for
items within the scope of this FSP. The adoption of SFAS 157 for all nonfinancial assets and nonfinancial liabilities
is effective for us beginning January 1, 2009. We do not expect the impact of this adoption to be material.
In April 2008, the FASB issued FSP 142-3. This guidance is intended to improve the consistency between the
useful life of a recognized intangible asset under SFAS 142, and the period of expected cash flows used to
measure the fair value of the asset under SFAS 141R when the underlying arrangement includes renewal or
extension of terms that would require substantial costs or result in a material modification to the asset upon
renewal or extension. Companies estimating the useful life of a recognized intangible asset must now consider
their historical experience in renewing or extending similar arrangements or, in the absence of historical
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