Google 2011 Annual Report Download - page 71

In order to manage expected increases in internet traffic, advertising transactions, and new products and
services, and to support our overall global business expansion, we expect to make significant investments in our
systems, data centers, corporate facilities, information technology infrastructure, and employees in 2012 and
thereafter. However, the amount of our capital expenditures has fluctuated and may continue to fluctuate on a
quarterly basis.
In addition, we expect to spend a significant amount of cash on acquisitions and other investments from time
to time. These acquisitions generally enhance the breadth and depth of our expertise in engineering and other
functional areas, our technologies, and our product offerings.
Cash provided by financing activities in 2011 of $807 million was primarily driven by net proceeds of $726
million of debt issued and excess tax benefits from stock-based award activities of $86 million.
Cash provided by financing activities in 2010 of $3,050 million was primarily driven by $3,463 million of net
cash proceeds from the issuance of commercial paper and a promissory note. This was partially offset by $801
million in stock repurchases in connection with our acquisitions of AdMob and On2 Technologies, Inc., 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.
Contractual Obligations as of December 31, 2011
Payments due by period
Total Less than 1 year 1-3 years 3-5 years More than 5 years
(in millions)
Operating lease obligations, net of sublease income
amounts ............................................. $2,879 $ 372 $ 704 $ 544 $ 1,259
Purchase obligations .................................... 1,910 910 860 37 103
Long-term debt obligations .............................. 3,471 70 1,134 1,104 1,163
Other long-term liabilities reflected on our balance sheet ..... 328 106 187 7 28
Total contractual obligations ............................. $8,588 $1,458 $2,885 $1,692 $2,553
The above table does not include future rental income of $726 million related to the leases that we assumed
in connection with our building purchases.
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 primarily between 2012 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.
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