Google 2011 Annual Report Download - page 68

The following table presents our unaudited quarterly results of operations as a percentage of revenues for the
eight quarters ended December 31, 2011:
Quarter Ended
Mar 31,
2010 Jun 30, 2010 Sep 30, 2010 Dec 31, 2010 Mar 31, 2011 Jun 30, 2011 Sep 30, 2011 Dec 31, 2011
Revenues ............................. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Costs and expenses:
Cost of revenues .................. 36.2 36.2 35.0 34.9 34.2 35.1 34.8 35.0
Research and development ......... 12.1 13.2 13.6 12.5 14.3 13.7 14.4 12.3
Sales and marketing ............... 9.0 9.2 9.1 10.7 12.0 12.1 12.4 12.0
General and administrative ......... 6.0 6.7 7.3 6.6 6.9 7.2 6.9 7.6
Charge related to the resolution of
Department of Justice
investigation ................... 0 0 0 0 5.8 0 0 0
Total costs and expenses ............... 63.3 65.3 65.0 64.7 73.2 68.1 68.5 66.9
Income from operations ................ 36.7 34.7 35.0 35.3 26.8 31.9 31.5 33.1
Interest and other income (expense),
net ................................ 0.3 1.0 2.2 1.9 1.1 2.3 3.1 (0.1)
Income before income taxes ............ 37.0 35.7 37.2 37.2 27.9 34.2 34.6 33.0
Provision for income taxes .............. 8.1 8.7 7.5 7.1 6.9 6.4 6.5 7.4
Net income ........................... 28.9% 27.0% 29.7% 30.1% 21.0% 27.8% 28.1% 25.6%
Liquidity and Capital Resources
In summary, our cash flows are as follows (in millions):
Year Ended December 31,
2009 2010 2011
Net cash provided by operating activities ................................... $9,316 $ 11,081 $ 14,565
Net cash used in investing activities ........................................ (8,019) (10,680) (19,041)
Net cash provided by financing activities ................................... 233 3,050 807
At December 31, 2011, we had $44.6 billion of cash, cash equivalents, and marketable securities. Cash
equivalents and marketable securities are comprised of time deposits, money market and other funds, including
cash collateral received related to our securities lending program, highly liquid debt instruments of the U.S.
government and its agencies, debt instruments issued by foreign governments, and municipalities in the U.S.,
corporate securities, and mortgage-backed securities.
As of December 31, 2011, $21.2 billion of the $44.6 billion of cash, cash equivalents, and marketable securities
was held by our foreign subsidiaries. If these funds are needed for our operations in the U.S., we would be required
to accrue and pay U.S. taxes to repatriate these funds. However, our intent is to permanently reinvest these funds
outside of the U.S. and our current plans do not demonstrate a need to repatriate them to fund our U.S. operations.
Our principal sources of liquidity are our cash, cash equivalents, and marketable securities, as well as the cash
flow that we generate from our operations. At December 31, 2011, we had unused letters of credit for
approximately $46 million. We believe that our sources of funding will be sufficient to satisfy our currently
anticipated cash requirements through at least the next 12 months. Our liquidity could be negatively affected by a
decrease in demand for our products and services. In addition, we may make acquisitions or license products and
technologies complementary to our business and may need to raise additional capital through future debt or equity
financing to provide for greater flexibility to fund any such acquisitions and licensing activities. Additional financing
may not be available at all or on terms favorable to us.
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