Google 2010 Annual Report Download - page 90

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The following table summarizes the activities for our unvested RSUs and restricted shares for the year ended
December 31, 2010:
Unvested Restricted Stock Units
and Restricted Shares
Number of
Shares
Weighted-
Average
Grant-Date
Fair Value
Unvested at December 31, 2009 .............................................. 4,626,487 $ 492.42
Granted ................................................................ 4,134,758 $ 518.18
Vested ................................................................. (1,748,951) $ 493.32
Canceled ............................................................... (340,323) $ 474.24
Unvested at December 31, 2010 ............................................... 6,671,971 $509.04
Expected to vest after December 31, 2010(1) ..................................... 5,978,086 $509.04
(1) RSUs and restricted shares expected to vest reflect an estimated forfeiture rate.
As of December 31, 2010, there was $2,606 million of unrecognized 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 be different from our expectations.
Note 14. 401(k) Plan
We have a 401(k) Savings Plan (401(k) Plan) that qualifies as a deferred salary arrangement under
Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to
contribute up to 60% of their eligible compensation, subject to certain limitations. Employee and our contributions
are fully vested when contributed. We contributed approximately $73 million, $83 million, and $100 million during
2008, 2009, and 2010.
Note 15. Income Taxes
Income before income taxes included income from domestic operations of $2,059 million, $3,579 million,
and $4,948 million for 2008, 2009, and 2010, and income from foreign operations of $3,794 million, $4,802
million, and $5,848 million for 2008, 2009, and 2010. Substantially all of the income from foreign operations was
earned by an Irish subsidiary.
The provision for income taxes consists of the following (in millions):
Year Ended December 31,
2008 2009 2010
Current:
Federal ................................................................. $1,348 $ 1,531 $ 1,657
State................................................................... 468 450 458
Foreign................................................................. 91 148 167
Total .............................................................. 1,907 2,129 2,282
Deferred:
Federal ................................................................. (198) (273) (25)
State ................................................................... (63) 13 47
Foreign ................................................................. (20) (8) (13)
Total .............................................................. (281) (268) 9
Provision for income taxes .................................................... $1,626 $1,861 $ 2,291
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