Google 2013 Annual Report Download - page 21

15GOOGLE INC.
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ITEM1A.RiskFactors
Longer payment cycles in some countries, increased credit risk, and higher levels of payment fraud.
Still developing foreign laws and legal systems.
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Uncertainty regarding liability for services and content, including uncertainty as a result of local laws and lack of legal precedent.
Dierentemployee/employerrelationships,existenceofworkers’councilsandlaborunions,andotherchallengescaused
bydistance,language,andculturaldierences,makingithardertodobusinessincertainjurisdictions.
In addition, compliance with complex foreign and U.S. laws and regulations that apply to our international operations increases our
costofdoingbusiness.Thesenumerousandsometimesconictinglawsandregulationsincludeinternalcontrolanddisclosure
rules,dataprivacyandlteringrequirements,anti-corruptionlaws,suchastheForeignCorruptPracticesAct,andotherlocal
lawsprohibitingcorruptpaymentstogovernmentalocials,andantitrustandcompetitionregulations,amongothers.Violations
oftheselawsandregulationscouldresultinnesandpenalties,criminalsanctionsagainstus,ourocers,orouremployees,
prohibitionsontheconductofourbusinessandonourabilitytooerourproductsandservicesinoneormorecountries,and
couldalsomateriallyaectourbrand,ourinternationalexpansioneorts,ourabilitytoattractandretainemployees,ourbusiness,
and our operating results. Although we have implemented policies and procedures designed to ensure compliance with these
laws and regulations, there can be no assurance that our employees, contractors, or agents will not violate our policies.
Finally,sinceweconductbusinessincurrenciesotherthanU.S.dollarsbutreportournancialresultsinU.S.dollars,weface
exposuretouctuationsincurrencyexchangerates.Althoughwehedgeaportionofourinternationalcurrencyexposure,signicant
uctuationsinexchangeratesbetweentheU.S.dollarandforeigncurrenciesmayadverselyaectournetincome.Additionally,
hedgingprogramsareinherentlyriskyandcouldexposeustoadditionalrisksthatcouldadverselyaectournancialcondition
and results of operations.

of expectations.
Ouroperatingresultsmayuctuateasaresultofanumberoffactors,manyoutsideofourcontrol.Asaresult,comparingouroperating
results on a period-to-period basis may not be meaningful, and you should not rely on our past results as an indication of our future
performance.Ourquarterly,year-to-date,andannualexpensesasapercentageofourrevenuesmaydiersignicantlyfromour
historical or projected rates. Our operating results in future quarters may fall below expectations. Any of these events could cause
ourstockpricetofall.Eachoftheriskfactorslistedinthissectioninadditiontothefollowingfactorsmayaectouroperatingresults:
Our ability to continue to attract users to our websites and satisfy existing users on our websites.
Ourabilitytomonetize(orgeneraterevenuesfrom)traconourwebsitesandourGoogleNetworkMembers’websites.
Revenueuctuationscausedbychangesinpropertymix,platformmixandgeographicalmix.
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The amount of revenues and expenses generated and incurred in currencies other than U.S. dollars, and our ability to
manage the resulting risk through our foreign exchange risk management program.
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The amount and timing of operating costs and expenses and capital expenditures related to the maintenance and expansion
of our businesses, operations, and infrastructure.
Our focus on long-term goals over short-term results.
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The results of our investments in risky projects, including new businesses, products, services, technologies and acquisitions.
Our ability to keep our websites operational at a reasonable cost and without service interruptions.
Ourabilitytogeneratesignicantrevenuesfromservicesinwhichwehaveinvestedconsiderabletimeandresources.
Because our business is changing and evolving, our historical operating results may not be useful to you in predicting our future
operatingresults.Inaddition,advertisingspendinghashistoricallybeencyclicalinnature,reectingoveralleconomicconditions,as
wellasbudgetingandbuyingpatterns.Also,usertractendstobeseasonal.Ourrapidgrowthhastendedtomaskthecyclicality
and seasonality of our business. As our growth rate has slowed, the cyclicality and seasonality in our business has become more
pronouncedandcausedouroperatingresultstouctuate.
If we were to lose the services of Larry, Sergey, Eric, or other key personnel, we may not be able to execute our

Our future success depends in a large part upon the continued service of key members of our senior management team. In particular,
Larry Page and Sergey Brin are critical to the overall management of Google and the development of our technology. Along with
our Executive Chairman Eric E. Schmidt, they also play a key role in maintaining our culture and setting our strategic direction. All
ofourexecutiveocersandkeyemployeesareat-willemployees,andwedonotmaintainanykey-personlifeinsurancepolicies.
The loss of key personnel could seriously harm our business.
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