Google 2012 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2012 Google annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

62 GOOGLE INC. |Form10-K
PART II
ITEM8.Notes to Consolidated Financial Statements
Long-Term Debt
In May2011, we issued $3.0billion of unsecured senior notes in three tranches as described in the table below (collectively, the
Notes) (in millions):
Years ending
Outstanding
Balance as of
December31, 2011
Outstanding
Balance as of
December31, 2012
1.25% Notes due on May19, 2014 $1,000 $1,000
2.125% Notes due on May19, 2016 1,000 1,000
3.625% Notes due on May19, 2021 1,000 1,000
Unamortized discount for the Notes above (14) (12)
Total $2,986 $2,988
The eff ective interest yields of the 2014, 2016, and 2021 Notes were 1.258%, 2.241%, and 3.734%, respectively. Interest on the
Notes is payable semi-annually in arrears on May19 and November19 of each year. We may redeem the Notes at any time in
whole or from time to time in part at specifi ed redemption prices. We are not subject to any fi nancial covenants under the Notes.
We used the net proceeds from the issuance of the Notes for general corporate purposes. The total estimated fair value of the
Notes was approximately $3.2billion at December31, 2011 and December31, 2012. The fair value of the Notes was determined
based on observable market prices of identical instruments in markets that are not active and was categorized accordingly as
Level 2 in the fair value hierarchy.
At December31, 2012, future principal payments for the Notes were as follows (in millions):
Years ending
2013 $ 0
2014 1,000
2015 0
2016 1,000
Thereafter 1,000
Total $3,000
NOTE5. Balance Sheet Components
Inventories
Inventories consisted of the following (in millions):
As of
December31,
2011
As of
December31,
2012
Raw materials and work in process $0 $77
Finished goods 35 428
Inventories $35 $505
Property and Equipment
Property and equipment consisted of the following (in millions):
As of
December31,
2011
As of
December31,
2012
Information technology assets $ 6,060 $ 7,717
Land and buildings 5,228 6,257
Construction in progress 2,128 2,240
Leasehold improvements 919 1,409
Furniture and fi xtures 65 74
Total 14,400 17,697
Less: accumulated depreciation and amortization 4,797 5,843
Property and equipment, net $ 9,603 $11,854
Contents
44