Google 2010 Annual Report Download - page 82

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Note 7. Property and Equipment
Property and equipment consist of the following (in millions):
As of December 31,
2009 2010
Information technology assets ........................................................ $3,868 $4,670
Construction in progress .............................................................. 1,644 2,329
Land and buildings ................................................................... 1,907 3,969
Leaseholdimprovements ............................................................. 646 738
Furnitureandfixtures ................................................................ 65 65
Total ........................................................................... 8,130 11,771
Less accumulated depreciation and amortization ........................................ 3,285 4,012
Property and equipment, net .......................................................... $4,845 $ 7,759
In December 2010, we completed an acquisition of an office building in New York City for total cash
consideration of $1.8 billion, of which approximately $700 million was allocated to land and $1.1 billion was
allocated to building. This purchase was accounted for as a business combination in accordance with the U.S.
GAAP. We occupy a portion of the building and lease out the remaining portion. We depreciate the building on a
straight-line basis over the estimated useful life of 25 years. In connection with this purchase, we issued a secured
promissory note in the amount of $468 million with an interest rate of 1.0% that matures in one year.
Note 8. Acquisitions
In December 2010, we completed the acquisition of Widevine Technologies, Inc. (Widevine), a privately-held
content protection and video optimization technology company for a cash consideration of $158 million.
In August 2010, we completed the acquisition of Slide, Inc. (Slide), a privately-held social technology company
for a cash consideration of $179 million.
In May 2010, we completed the acquisition of AdMob, a privately-held mobile display ads technology provider.
The purchase price was $681 million, consisting of the issuance of approximately 1.2 million shares of our Class A
common stock and assumed vested options valued at $655 million, and cash of $26 million. The issued shares
were valued based on 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 was $123 million, consisting of the issuance of approximately
174,000 shares of our Class A common stock valued at $95 million, based on the closing price of our Class A
common stock on February 19, 2010, and cash of $28 million.
To offset the dilutive impact of issuing shares in connection with the AdMob and On2 acquisitions, we also
repurchased and subsequently retired 1.6 million shares of our Class A common stock for $801 million.
During the year ended December 31, 2010, we also completed 44 other acquisitions for a total cash
consideration of approximately $669 million. These acquisitions were not material individually or in the aggregate.
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