Google 2009 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2009 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 132

  • 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
  • 131
  • 132

Google Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The fair value of our outstanding derivative instruments at December 31, 2008 and 2009 is summarized
below (in thousands):
Fair Value of Derivative Instruments
Balance Sheet Location As of December 31,
2008 As of December 31,
2009
Derivative Assets
Derivatives designated as hedging instruments:
Foreign exchange option contracts .......... Prepaid revenue
share, expenses and
other assets, current
and non-current $ 451,723 $104,278
Foreign exchange forward contracts ......... Prepaid revenue
share, expenses and
other assets, current — 812
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts ......... Prepaid revenue
share, expenses and
other assets, current 13,270 396
Total .......................................... $464,993 $105,486
Derivative Liabilities
Derivatives not designated as hedging instruments:
Foreign exchange forward contracts ......... Accrued expenses
and other current
liabilities $ 877 $ 337
Total .......................................... $ 877 $ 337
The effect of derivative instruments in cash flow hedging relationship on income and other comprehensive
income for the years ended December 31, 2008 and 2009 is summarized below (in thousands):
Increase (Decrease) in Gains Recognized in AOCI
on Derivative Before Tax Effect (Effective Portion)
Year Ended December 31,
Derivatives in Cash Flow Hedging Relationship 2008 2009
Foreign exchange option contracts ............................ $522,162 $(14,360)
Gains Reclassified from AOCI into Income
(Effective Portion)
Year Ended December 31,
Derivatives in Cash Flow Hedging Relationship Location 2008 2009
Foreign exchange option contracts .......................... Revenues $167,807 $324,705
79