Google 2013 Annual Report Download - page 22

16 GOOGLE INC.
PART I
ITEM1A.RiskFactors


Ourperformancelargelydependsonthetalentsandeortsofhighlyskilledindividuals.Ourfuturesuccessdependsonour
continuing ability to identify, hire, develop, motivate, and retain highly skilled personnel for all areas of our organization. Competition
inourindustryforqualiedemployeesisintense,andcertainofourcompetitorshavedirectlytargetedouremployees.Inaddition,
our compensation arrangements, such as our equity award programs, may not always be successful in attracting new employees
andretainingandmotivatingourexistingemployees.Ourcontinuedabilitytocompeteeectivelydependsonourabilitytoattract
new employees and to retain and motivate our existing employees.
In addition, we believe that our corporate culture fosters innovation, creativity, and teamwork. As our organization grows, and we
arerequiredtoimplementmorecomplexorganizationalmanagementstructures,wemaynditincreasinglydiculttomaintain
thebenecialaspectsofourcorporateculture.Thiscouldnegativelyimpactourfuturesuccess.
Our business depends on continued and unimpeded access to the internet by us and our users. Internet access
providers may be able to block, degrade, or charge for access to certain of our products and services, which could lead
to additional expenses and the loss of users and advertisers.
Ourproductsandservicesdependontheabilityofouruserstoaccesstheinternet,andcertainofourproductsrequiresignicant
bandwidthtoworkeectively.Currently,thisaccessisprovidedbycompaniesthathavesignicantmarketpowerinthebroadband
and internet access marketplace, including incumbent telephone companies, cable companies, mobile communications companies,
and government-owned service providers. Some of these providers have taken, or have stated that they may take measures,
including legal actions, that could degrade, disrupt, or increase the cost of user access to certain of our products by restricting or
prohibitingtheuseoftheirinfrastructuretosupportorfacilitateouroerings,orbychargingincreasedfeestousorourusers
toprovideouroerings.Suchinterferencecouldresultinalossofexistingusersandadvertisers,andincreasedcosts,andcould
impair our ability to attract new users and advertisers, thereby harming our revenues and growth.
New technologies could block our ads, which would harm our business.
Technologies have been developed that can block the display of our ads and that provide tools to users to opt out of our advertising
products. Most of our revenues are derived from fees paid to us by advertisers in connection with the display of ads on web pages
forourusers.Asaresult,suchtechnologiesandtoolscouldadverselyaectouroperatingresults.

Given the global nature of our business, we have investments both domestically and internationally. Credit ratings and pricing of
theseinvestmentscanbenegativelyimpactedbyliquidity,creditdeteriorationorlosses,nancialresults,orotherfactors.Asa
result, the value or liquidity of our cash equivalents and marketable securities could decline and result in a material impairment,
whichcouldmateriallyadverselyaectournancialconditionandoperatingresults.
We may have exposure to greater than anticipated tax liabilities.
Ourfutureincometaxescouldbeadverselyaectedbyearningsbeinglowerthananticipatedinjurisdictionsthathavelower
statutory tax rates and higher than anticipated in jurisdictions that have higher statutory tax rates, by changes in the valuation of
our deferred tax assets and liabilities, as a result of gains on our foreign exchange risk management program, or changes in tax
laws, regulations, or accounting principles, as well as certain discrete items. We are subject to regular review and audit by both
domesticandforeigntaxauthorities.Anyadverseoutcomeofsucharevieworauditcouldhaveanegativeeectonouroperating
resultsandnancialcondition.Inaddition,thedeterminationofourworldwideprovisionforincometaxesandothertaxliabilities
requiressignicantjudgment,andtherearemanytransactionsandcalculationswheretheultimatetaxdeterminationisuncertain.
Althoughwebelieveourestimatesarereasonable,theultimatetaxoutcomemaydierfromtheamountsrecordedinournancial
statementsandmaymateriallyaectournancialresultsintheperiodorperiodsforwhichsuchdeterminationismade.
Risks Related to Ownership of Our Stock
The trading price for our Class A common stock may continue to be volatile, and if the shares of the new class of
non-voting Class C capital stock are distributed as expected, the trading price of that class may also be volatile and

The trading price of our Class A common stock has at times experienced substantial price volatility and may continue to be
volatile.Forexample,fromJanuary1,2013throughDecember31,2013,theclosingpriceofourClassAcommonstockranged
from$702.87pershareto$1,120.71pershare.ThetradingpriceofourClassAcommonstockmayuctuatewidelyinresponse
to various factors, some of which are beyond our control. These factors include, among others:
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