Google 2012 Annual Report Download - page 72

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66 GOOGLE INC. |Form10-K
PART II
ITEM8.Notes to Consolidated Financial Statements
NOTE10. Interest and Other Income, Net
The components of interest and other income, net were as follows (in millions):
Year Ended December31,
2010 2011 2012
Interest income $ 579 $ 812 $ 713
Interest expense (5) (58) (84)
Realized gains on available-for-sale investments, net 185 254 282
Impairment of equity investments 0 (110) 0
Foreign currency exchange losses (355) (379) (531)
Gain on divestiture of business 0 0 188
Other 11 65 58
Interest and other income, net $ 415 $ 584 $ 626
NOTE11. Commitments and Contingencies
Operating Leases
We have entered into various non-cancelable operating lease agreements for certain of our o ces, land, and data centers
throughout the world with original lease periods expiring primarily between 2013 and 2063. We are committed to pay a portion
of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the
table below. Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense under
such arrangements on a straight-line basis.
At December31, 2012, future minimum payments under non-cancelable operating leases, net of sublease income amounts, were
as follows over each of the next fi ve years and thereafter (in millions):
Operating
Leases
Sub-lease
Income
Net Operating
Leases
2013 $ 492 $ 26 $ 466
2014 475 22 453
2015 434 17 417
2016 374 12 362
2017 333 7 326
Thereafter 1,596 1 1,595
Total minimum payments $3,704 $85 $3,619
Certain leases have adjustments for market provisions. Amounts in the above table represent our best estimates of future payments
to be made under these leases. In addition, the above table does not include future rental income of $649million related to the
leases that we assumed in connection with our building purchases. Rent expense under operating leases, including co-location
arrangements, was $293million, $380million, and $448million in 2010, 2011, and 2012.
Purchase Obligations
At December31, 2012, we had $2.1billion of other non-cancelable contractual obligations, primarily related to certain of our
distribution arrangements, video and other content licensing revenue sharing arrangements, as well as data center operations
and facility build-outs.
Letters of Credit
At December31, 2012, we had unused letters of credit for $89million, of which $45million related to our Mobile segment.
Indemnifi cations
In the normal course of business to facilitate transactions in our services and products, we indemnify certain parties, including
advertisers, Google Network Members, and lessors with respect to certain matters. We have agreed to hold certain parties harmless
against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims
made against certain parties. Several of these agreements limit the time within which an indemnifi cation claim can be made and
the amount of the claim. In addition, we have entered into indemnifi cation agreements with our o cers and directors, and our
bylaws contain similar indemnifi cation obligations to our agents.
Contents
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