Google 2009 Annual Report Download - page 104

Google Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The components of accumulated other comprehensive income are as follows (in thousands):
As of December 31,
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
Note 11. 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 December 31, 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 December 31, 2009, our aggregate outstanding non-cancelable
guaranteed minimum revenue share commitments totaled $133.3 million through 2012 compared to
$1,030.3 million at December 31, 2008. We believe these amounts represent a reasonable estimate of the future
minimum guaranteed payments.
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