Google 2010 Annual Report Download - page 54

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million in stock repurchases in connection with our acquisitions of AdMob and On2 Technologies, Inc. (On2), as
well as net proceeds from stock-based award activities of $294 million, and excess tax benefits from stock-based
award activities of $94 million.
Cash provided by financing activities in 2009 of $233 million was primarily due to net proceeds related to
stock-based award activities of $143 million. In addition, there were excess tax benefits of $90 million from stock-
based award activities during the period which represented a portion of the $260 million reduction to income taxes
payable that we recorded in 2009 related to the total direct tax benefit realized from the exercise, sale, or vesting
of these awards.
Cash provided by financing activities in 2008 of $87 million was primarily due to excess tax benefits of $159
million from stock-based award activities during the period which represents a portion of the $251 million
reduction to income tax payable that we recorded in 2008 related to the total direct tax benefit realized from the
exercise, sale, or vesting of these awards, partially offset by net payments related to stock-based award activities
of $72 million.
Contractual Obligations as of December 31, 2010
Payments due by period
Total Less than
1 year 1-3
years 3-5
years More than
5 years
(unaudited, in millions)
Operating lease obligations .................................. $2,305 $ 310 $567 $385 $1,043
Purchaseobligations ....................................... 565 214 207 87 57
Other long-term liabilities reflected on our balance sheet . . . . . . . . 264 54 171 15 24
Total contractual obligations ................................ $3,134 $578 $945 $487 $ 1,124
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.
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 2011 and 2063. We are committed
to pay a portion of the related operating expenses under certain of these lease agreements. These operating
expenses are not included in the above table. Certain of these leases have free or escalating rent payment
provisions. We recognize rent expense under such leases on a straight-line basis over the term of the lease. Certain
leases have adjustments for market provisions.
Purchase Obligations
Purchase obligations represent non-cancelable contractual obligations at December 31, 2010. In addition, we
had $2.4 billion of open purchase orders for which we have not received the related services or goods at
December 31, 2010. This amount is not included in the above table because we have the right to cancel the
purchase orders prior to the date of delivery. The majority of our non-cancelable contractual obligations are related
to data center operations and facility build-outs.
41