Google 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 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 107

  • 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

FOR REVIEWF
O
R REVIEW
2010 Annual Report

Table of contents

  • Page 1
    FOR REVIEW 2010 Annual Report

  • Page 2
    PAC-MAN™ & © NAMCO BANDAI Games Inc. © 2011. Google and the Google logo are trademarks of Google Inc. All other company and product names may be trademarks of the respective companies with which they are associated.

  • Page 3
    ...dynamical systems, a branch of mathematics, in his spare time. When I was four years old, there was an international conference on the subject in Warsaw... shared the same passions. The key di΍erence was that they were free: free to pursue the career of their choice, free to voice their opinions, free

  • Page 4
    ... of millions of people rely on Google to search through many petabytes of the worldÂ''s knowledge. We do it across nations, languages and cultures, for information that's both online and oÉžine, on PCs and tablets, phones and televisions, with text and images and video and soundÂ......whatever it...

  • Page 5
    ...become richer, thanks to faster processors and improved software in both client computers and data centers. For example, Google Instant (launched late last year) starts searching with every keystroke, thereby saving users time on every search. To date, Google Instant has now saved our users over 100...

  • Page 6
    ... the worldÂ''s greatest paintings as part of the Art Project. Sal Khan quit his job as a hedge fund manager to create an online academy on YouTube that tutors people in subjects from mathematics to chemistry. His 2,000 videos have been viewed 45 million times. A Video is Worth a Million Words There...

  • Page 7
    ... in order to stream video to small, low-power wireless devices. Increasingly, technology is moving to the worldÂ''s ve-billionplus mobile phones, thereby democratizing information well beyond the PC. The more sophisticated functionality is typically available on the fast-growing smartphone...

  • Page 8
    ... reaching new markets and nding new customers throughout the world with just a couple of clicks. Ads also enable publishers of all types to fund content creation and make that content available for free. The AdSense program now generates revenue for over two million publishers worldwide. In 2010...

  • Page 9
    .... Insightly, a one-person software business in Perth, Australia, acquired more than 10,000 customers in its rst seven months thanks to the Google Apps Marketplace. WhatÂ''s Next? Larry and I have always shared a profound belief in the potential for technology to make the world a better place. It...

  • Page 10
    ...t from the increased demand for new products, the opening of new markets and dramatic gains in productivity. As a result, new technologies that emerge from research labs fall into the hands of users within a few years; new online o΍erings reach tens of millions of people in months; and startups...

  • Page 11
    ... by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ' No È At June 30, 2010, the aggregate market value of shares held by non-affiliates of the registrant (based upon the closing sale price of such shares on the Nasdaq Global Select Market on...

  • Page 12
    ... Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and Related Transactions, and Director Independence ...Principal Accounting Fees and Services ... 82 82 82 82 82 Exhibits, Financial Statement Schedules ... 83...

  • Page 13

  • Page 14
    ... paid clicks and average cost-per-click; our belief that our foreign exchange risk management program will not fully offset the exposure to fluctuations in foreign currency exchange rates; our expectation that our cost of revenues, research and development expenses, sales and marketing expenses...

  • Page 15
    ..., unless the context indicates otherwise. "Google" and other trademarks of ours appearing in this report are our property. This report contains additional trade names and trademarks of other companies. We do not intend our use or display of other companies' trade names or trademarks to imply an...

  • Page 16
    ...Our innovations in web search and advertising have made our website a top internet property and our brand one of the most recognized in the world. We generate revenue primarily by delivering relevant, cost-effective online advertising. Businesses use our AdWords program to promote their products and...

  • Page 17
    ... 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 websites and our Google Network members' websites as specified by the advertiser. Our AdSense program enables websites that...

  • Page 18
    ... a business, such as location, phone number, and hours of operation. Business owners can also edit and check their information at any time to find out how many people have seen or clicked on their free listing. Because the ability to target advertising to a specific region is a key part of building...

  • Page 19
    ...and online sales channels, using technology and automation wherever possible to improve our customers' experience and to grow our business cost-effectively. Our direct advertising and sales teams focus on building relationships with the largest advertisers and leading internet companies. In 2010, we...

  • Page 20
    ... purpose search engines. Other forms of advertising, such as television, radio, newspapers, magazines, billboards, and yellow pages, for ad dollars. Our advertisers typically advertise in multiple media, both online and offline. Commercial software companies, such as Microsoft and Apple, and mobile...

  • Page 21
    ... press and earnings releases, and blogs as part of our investor relations website. Investors and others can receive notifications of new information posted on our investor relations website in real time by signing up for email alerts and RSS feeds. Further corporate governance information, including...

  • Page 22
    ... search engines and e-commerce sites, social networking sites, traditional media companies, and providers of online products and services. Our current and potential competitors range from large and established companies to emerging start-ups. Established companies have longer operating histories...

  • Page 23
    ... margin we earn on revenues generated from our Google Network members could decrease in the future if we pay an even larger percentage of advertising fees to our Google Network members. We are subject to increased regulatory scrutiny that may negatively impact our business. The growth of our company...

  • Page 24
    ...of product, engineering, and sales and marketing functions. Transition of operations, users, and customers onto our existing platforms. Cultural challenges associated with integrating employees from the acquired company into our organization, and retention of employees from the businesses we acquire...

  • Page 25
    ... there is a security breach for personal data, such as California's Information Practices Act. We face similar risks and costs as our products and services are offered in international markets and may be subject to additional regulations. Privacy concerns relating to our technology could damage our...

  • Page 26
    ... our products, services, and technologies, including Android, Google WebSearch, Google AdWords, Google AdSense, Google News, Google Image Search, Google Chrome, Google Talk, Google Voice, and YouTube, infringe the intellectual property rights of others. Adverse results in these lawsuits may include...

  • Page 27
    ... Google Network. The amount of revenues and expenses generated and incurred in currencies other than U.S. dollars, and our ability to manage the resulting risk through our foreign exchange risk management program. The amount and timing of operating costs and expenses and capital expenditures related...

  • Page 28
    ... business could be adversely affected. The number of people who access the internet through devices other than personal computers, including mobile phones, smart phones, handheld computers such as netbooks and tablets, video game consoles, and television set-top devices, has increased dramatically...

  • Page 29
    ... providing services to a particular market and may increase our operating costs. Currency exchange rate fluctuations and our ability to manage these fluctuations through our foreign exchange risk management program. Longer payment cycles in some countries, increased credit risk, and higher levels of...

  • Page 30
    ... our business strategy. Our future success depends in a large part upon the continued service of key members of our senior management team. In particular, Larry Page, Sergey Brin, and Eric E. Schmidt are critical to the overall management of Google, as well as the development of our technology, our...

  • Page 31
    ... earnings. Announcements by our competitors of their earnings that are not in line with analyst expectations. The volume of shares of Class A common stock available for public sale. Sales of stock by us or by our stockholders (including sales by our directors, executive officers, and other employees...

  • Page 32
    ... sales, hedging, and other derivative transactions on shares of our Class A common stock (including derivative transactions under our transferable stock option program). In addition, the stock market in general, and the market for technology companies in particular, have experienced extreme price...

  • Page 33
    ... million square feet office building in New York, New York. In addition, we lease approximately 1.7 million square feet of office space and approximately 56 acres of undeveloped land for our headquarters in Mountain View, California. We also lease additional research and development, and sales and...

  • Page 34
    ...common stock, and the closing price of our Class A common stock was $600.36 per share as reported by the Nasdaq Global Select Market. Because many of our shares of Class A common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of...

  • Page 35
    ..., and the RDG Internet Composite Index assume reinvestment of dividends. We have never paid dividends on our Class A common stock and have no present plans to do so. COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN* Among Google Inc., S&P 500 Index, Nasdaq Composite Index and RDG Internet Composite...

  • Page 36
    ... options in the traditional method and then selling the underlying shares. The following table provides information with respect to sales by our employees of TSOs during the three months ended December 31, 2010: Aggregate Amounts Number of Shares Sale Underlying Price of TSO TSOs Sold TSOs Sold...

  • Page 37
    ... 2009 (in millions, except per share amounts) 2010 Consolidated Statements of Income Data: Revenues ...Costs and expenses: Cost of revenues ...Research and development ...Sales and marketing ...General and administrative ...Total costs and expenses ...Income from operations ...Impairment of equity...

  • Page 38
    ... on a cost-per-impression basis that enables advertisers to pay us based on the number of times their ads appear on our websites and our Google Network members' websites as specified by the advertiser. For advertisers using our AdWords cost-per-click pricing, we recognize as revenue the fees charged...

  • Page 39
    ...that run as ads on AdSense publisher websites). For our online AdSense program, our advertisers pay us a fee each time a user clicks on one of our advertisers' ads displayed on our Google Network members' websites or, for those advertisers who choose our cost-per-impression pricing, as their ads are...

  • Page 40
    ... ability to increase searches on our websites and our Google Network members' websites via new ad formats on devices other than personal computers, including mobile devices. Trends in Our Business Advertising transactions continue to shift from offline to online as the digital economy evolves...

  • Page 41
    ... aggregate paid click and average cost-per-click growth rates. The operating margin we realize on revenues generated from ads placed on our Google Network members' websites through our AdSense program is significantly lower than the operating margin we realize from revenues generated from ads placed...

  • Page 42
    ... Year Ended December 31, 2008 2009 2010 Consolidated Statements of Income Data: Revenues ...Costs and expenses: Cost of revenues ...Research and development ...Sales and marketing ...General and administrative ...Total costs and expenses ...Income from operations ...Impairment of equity investments...

  • Page 43
    ... and Google Network members' websites from 2009 to 2010 resulted primarily from an increase in the number of paid clicks through our advertising programs and, to a lesser extent, an increase in the average cost-per-click paid by our advertisers. The increase in the number of paid clicks generated...

  • Page 44
    ... results in more searches, advertisers, and Google Network members and other partners. Revenues by Geography The following table presents our domestic and international revenues as a percentage of consolidated revenues, determined based on the billing addresses of our customers: Year Ended December...

  • Page 45
    ... of more traffic directed to our websites, as well as more distribution fees paid. The decrease in traffic acquisition costs as a percentage of advertising revenues was primarily due to more revenues realized from Google Network members to whom we pay less revenue share, and expiration of an AdSense...

  • Page 46
    ... and the related revenues generated, including whether we share with certain existing and new distribution partners proportionately more of the aggregate advertising fees that we earn from paid clicks derived from search queries these partners direct to our websites. • • Research and...

  • Page 47
    ... percentage of revenues in 2011 and future periods, as we expand our business globally, increase advertising and promotional expenditures in connection with new and existing products, and increase the level of service we provide to our advertisers, Google Network members, and other partners. General...

  • Page 48
    ...net realized gains on sales of marketable securities of $88 million. These increases were partially offset by an increase in net foreign exchange related costs of $95 million primarily related to our foreign exchange risk management program. Interest and other income, net decreased $247 million from...

  • Page 49
    ... prices of the contracts, as well as the volatility of the foreign exchange rates. As we expand our international business, we believe costs related to hedging activities under our foreign exchange risk management program may increase in dollar amount in 2011 and future periods. Provision for Income...

  • Page 50
    ...except per share amounts) (unaudited) Sep 30, 2010 Dec 31, 2010 Consolidated Statements of Income Data: Revenues ...Costs and expenses: Cost of revenues ...Research and development ...Sales and marketing ...General and administrative ...Total costs and expenses ...Income from operations ...Interest...

  • Page 51
    ... 2010 Jun 30, 2010 Sep 30, 2010 Dec 31, 2010 Revenues ...Costs and expenses: Cost of revenues ...Research and development ...Sales and marketing ...General and administrative ...Total costs and expenses ...Income from operations ...Interest and other income (expense), net ...Income before income...

  • Page 52
    ... from stock-based award activities. In addition, the decrease in cash from changes in working capital activities primarily consisted of an increase of $1,129 million in accounts receivable due to the growth in fees billed to our advertisers and an increase of $414 million in prepaid revenue share...

  • Page 53
    ... due to the growth in fees billed to our advertisers, a decrease of $212 million in accounts payable due to the timing of invoice processing and payments and an increase of $147 million in prepaid revenue shares, expenses, and other assets. As we expand our business internationally, we have offered...

  • Page 54
    ... rental income of $812 million related to the leases that we assumed in connection with our purchase of an office building in New York City. Operating Leases We have entered into various non-cancelable operating lease agreements for certain of our offices, land, and data centers throughout the world...

  • Page 55
    ...on our financial condition, changes in our financial condition, revenues, or expenses, results of operations, liquidity, capital expenditures, or capital resources that is material to investors. Critical Accounting Policies and Estimates We prepare our consolidated financial statements in accordance...

  • Page 56
    ...Item 8 of this Annual Report on Form 10-K for additional information regarding legal contingencies. Stock-Based Compensation Our stock-based compensation expense is estimated at the grant date based on the award's fair value as calculated by the Black-Scholes-Merton (BSM) option pricing model and is...

  • Page 57
    ... in foreign currency exchange rates. We purchase foreign exchange option contracts to reduce the volatility of cash flows related to forecasted revenues denominated in certain foreign currencies. The objective of the foreign exchange contracts is to better ensure that the U.S. dollar-equivalent cash...

  • Page 58
    ... forward exchange contracts in place for the months of December 2009 and 2010. These reasonably possible adverse changes in exchange rates of 20% were applied to total monetary assets and liabilities denominated in currencies other than the local currencies at the balance sheet dates to compute the...

  • Page 59
    ... DATA Google Inc. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Reports of Independent Registered Public Accounting Firm ...Financial Statements: Consolidated Balance Sheets ...Consolidated Statements of Income ...Consolidated Statements of Stockholders' Equity ...Consolidated Statements of...

  • Page 60
    ... OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Stockholders of Google Inc. We have audited the accompanying consolidated balance sheets of Google Inc. as of December 31, 2009 and 2010, and the related consolidated statements of income, stockholders' equity, and cash...

  • Page 61
    ... have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Google Inc. as of December 31, 2009 and 2010, and the related consolidated statements of income, stockholders' equity, and cash flows for each of the...

  • Page 62
    Google Inc. CONSOLIDATED BALANCE SHEETS (In millions, except share and par value amounts which are reflected in thousands, and par value per share amounts) As of December 31, 2009 As of December 31, 2010 Assets Current assets: Cash and cash equivalents ...Marketable securities ...Total cash, cash ...

  • Page 63
    Google Inc. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) Year Ended December 31, 2008 2009 2010 Revenues ...Costs and expenses: Cost of revenues (including stock-based compensation expense of $41, $47, $67) ...Research and development (including stock-based compensation...

  • Page 64
    Google Inc. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions, except for share amounts which are reflected in thousands) Class A and Class B Common Stock and Additional Paid-In Capital Shares Amount Accumulated Other Comprehensive Income Retained Earnings Total Stockholders' Equity ...

  • Page 65
    Google Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Year Ended December 31, 2008 2009 2010 Operating activities Net income ...Adjustments: Depreciation and amortization of property and equipment ...Amortization of intangible and other assets ...Stock-based compensation expense ...Excess...

  • Page 66
    ...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 websites and our Google Network members' websites as specified by the advertiser. Google AdSense refers to the online programs...

  • Page 67
    ... pages on our website or on the search results pages or content pages of our Google Network members' websites and, for those advertisers who use our cost-per impression pricing, the fees charged advertisers each time an ad is displayed on our members' websites. We report our Google AdSense revenues...

  • Page 68
    ... on the pages of our websites and our Google Network members' websites from which the content is viewed and share most of the fees these ads generate with the content providers and the Google Network members. Stock-based Compensation We have elected to use the BSM option pricing model to determine...

  • Page 69
    ... corporate securities. Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts receivable are typically unsecured and are derived from revenues earned from customers located around the world. In 2008, 2009, and 2010 we generated approximately...

  • Page 70
    ... historical credits issued. Property and Equipment We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets, generally two to five years. We depreciate buildings...

  • Page 71
    ... date. Foreign Currency Generally, the functional currency of our international subsidiaries is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates of exchange for revenues...

  • Page 72
    ... or cancellation ...128 8 5 0 0 0 Employee stock options, including warrants issued under Transferable Stock Option program ...2,810 223 2,569 114 3,410 71 Restricted shares and RSUs ...617 0 621 0 1,139 0 Number of shares used in per share computation ...Diluted net income per share ...$ 317,514 13...

  • Page 73
    ......Total cash and cash equivalents ...Marketable securities: Time deposits ...Money market mutual funds ...U.S. government agencies ...U.S. government notes ...Foreign government bonds ...Municipal securities ...Corporate debt securities ...Agency residential mortgage-backed securities ...Commercial...

  • Page 74
    ... Cost Fair Value Time deposits ...Money market mutual funds ...U.S. government agencies ...U.S. government notes ...Foreign government bonds ...Municipal securities ...Corporate debt securities ...Agency residential mortgage-backed securities ...Commercial mortgage-backed securities ...Marketable...

  • Page 75
    ... ...Agency mortgage-backed securities ...Total ... $ 831 2,225 129 962 1,061 1,675 $ (8) (50) (5) (5) (25) (32) $(125) $6,883 As of December 31, 2009 and 2010, we did not have any investments in marketable securities that were in an unrealized loss position for 12 months or greater. Auction Rate...

  • Page 76
    ...as non-current assets on the accompanying Consolidated Balance Sheet at December 31, 2010. Securities Lending Program From time to time, we enter into securities lending agreements with financial institutions to enhance investment income. We loan selected securities that are secured by collateral in...

  • Page 77
    ... 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 and other income, net. The notional principal of foreign exchange contracts to purchase U.S. dollars with Euros...

  • Page 78
    ...(in millions): Fair Value of Derivative Instruments As of December 31, As of December 31, 2009 2010 Balance Sheet Location Derivative Assets Derivatives designated as hedging instruments: Foreign exchange option contracts ...Prepaid revenue share, expenses and other assets, current and non-current...

  • Page 79
    ..., Location 2008 2009 2010 Derivatives Not Designated As Hedging Instruments Foreign exchange forward contracts ... Interest and other income, net $145 $(78) $(40) Note 6. Fair Value Measurements We measure our cash equivalents, marketable securities, foreign currency derivative contracts, and...

  • Page 80
    ...Foreign government bonds ...Municipal securities ...Corporate debt securities ...Agency residential mortgage-backed securities ...Commercial mortgage-backed securities ...Marketable equity security ...Foreign currency derivative contracts ...Auction rate securities ...Total ... $ 3,740 2,153 2 1,250...

  • Page 81
    ... bonds ...Municipal securities ...Corporate debt securities ...Agency residential mortgage-backed securities ...Marketable equity security ...Foreign currency derivative contracts ...Auction rate securities ...Total ...Liabilities Foreign currency derivative contracts ...Total ...(1) $ 973 7,547...

  • Page 82
    ...the closing price of our Class A common stock on May 27, 2010. The fair values of stock options assumed were estimated using the BSM option pricing model. In February 2010, we completed the acquisition of On2, a publicly-held company, and developer of video compression technology. The purchase price...

  • Page 83
    ...of the purchase price for all the acquisitions (in millions): On2 AdMob Slide Widevine Other Total Goodwill ...Patents and developed technology ...Customer relationships ...Trade names and other ...Net assets acquired (liabilities assumed) ...Deferred tax assets (liabilities) ...Total ... $ 87 $572...

  • Page 84
    ...and developed technology, customer relationships, and trade names and other have weightedaverage useful lives from the date of purchase of 4.3 years, 5.9 years, and 4.2 years. Amortization expense of acquisition-related intangible assets for the years ended December 31, 2008, 2009, and 2010 was $280...

  • Page 85
    ..., the above table does not include future rental income of $812 million related to the leases that we assumed in connection with our purchase of an office building in New York City. Rent expense under operating leases, including co-location arrangements, was $314 million, $323 million, and $293...

  • Page 86
    ... our products, services, and technologies, including Android, Google WebSearch, Google AdWords, Google AdSense, Google News, Google Image Search, Google Chrome, Google Talk, Google Voice, and YouTube, infringe the intellectual property rights of others. Adverse results in these lawsuits may include...

  • Page 87
    ... 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...

  • Page 88
    ... the fair values of the stock options granted (excluding options granted in connection with the Exchange discussed below) in the periods presented: Year Ended December 31, 2008 2009 2010 Risk-free interest rate ...Expected volatility ...Expected life (in years) ...Dividend yield ...Weighted-average...

  • Page 89
    ... of $308.57 per share, the closing price of our Class A common stock as reported by the Nasdaq Global Select Market on March 6, 2009. Options granted pursuant to the Exchange have a new vesting schedule determined by adding 12 months to each vesting date under the exchanged options' original vesting...

  • Page 90
    ... compensation cost related to employee unvested RSUs and restricted shares. This amount is expected to be recognized over a weighted-average period of 3.0 years. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related to these awards will...

  • Page 91
    ... 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...

  • Page 92
    ... statute of limitation ...Increases related to current year tax positions ...Balance as of December 31, 2010 ...$ 387 112 (15) 237 721 222 (1) 246 1,188 37 (197) (47) (97) 256 $1,140 Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $561 million...

  • Page 93
    ...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 addresses of our customers. The following table sets forth revenues and long-lived assets by...

  • Page 94
    ... and Procedures Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the end of the period covered by this Annual Report on...

  • Page 95
    ... and Related Transactions" and "Directors, Executive Officers and Corporate Governance-Corporate Governance and Board Matters-Director Independence" in the 2011 Proxy Statement and is incorporated herein by reference. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The information required...

  • Page 96
    ...of this Annual Report on Form 10-K: 1. Consolidated Financial Statements Reports of Independent Registered Public Accounting Firm ...Financial Statements: Consolidated Balance Sheets ...Consolidated Statements of Income ...Consolidated Statements of Stockholders' Equity ...Consolidated Statements of...

  • Page 97
    ... of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 11, 2011 GOOGLE INC. By: /S/ ERIC E. SCHMIDT Eric E. Schmidt Chairman of the Board of Directors and Chief...

  • Page 98
    ...as of July 20, 2007 Form of Bidding Rules Agreement, dated April 20, 2007, among Google Inc., Morgan Stanley & Co. Incorporated, as Auction Manager and Bidder, Citigroup Global Markets Inc. as Warrant Agent and Bidder and Credit Suisse Securities (USA) LLC and UBS Securities LLC, as Bidders (Bidding...

  • Page 99
    ..., dated June 6, 2008, between Patrick Pichette and Google Inc. 1998 Stock Plan, as amended 1998 Stock Plan-Form of stock option agreement 2000 Stock Plan, as amended 2000 Stock Plan-Form of stock option agreement 2003 Stock Plan, as amended 2003 Stock Plan-Form of stock option agreement 2003 Stock...

  • Page 100
    ... Plan, as amended Picasa, Inc. Employee Bonus Plan YouTube, Inc. 2005 Stock Plan Subsidiaries of the Registrant Consent of Independent Registered Public Accounting Firm Power of Attorney (incorporated by reference to the signature page of this Annual Report on Form 10-K) Certification of Chief...

  • Page 101
    ...Indicates management compensatory plan, contract, or arrangement. Confidential treatment has been requested for portions of this exhibit. Filed herewith. Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or...

  • Page 102
    ... financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 11, 2011 /S/ ERIC E. SCHMIDT Eric E. Schmidt Chairman of the Board of Directors...

  • Page 103
    ... design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have...

  • Page 104
    ...1934 and that information contained in such Annual Report on Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Google Inc. Date: February 11, 2011 By: Name: Title: /S/ ERIC E. SCHMIDT Eric E. Schmidt Chairman of the Board of Directors and Chief...

  • Page 105
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 106
    ....com You may also visit the investor relations portion of our website at: http://investor.google.com If you wish to receive stockholder information online, you can register at: http://google.client.shareholder.com/ alerts.cfm? Google's Class A common stock trades on the Nasdaq Global Select Market...

  • Page 107