Google 2013 Annual Report Download - page 44

38 GOOGLE INC.
PART II
ITEM7.Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations
Inaddition,weexpecttocontinuetospendcashonacquisitionsandotherinvestments.Theseacquisitionsgenerallyenhance
the breadth and depth of our expertise in engineering and other functional areas, our technologies, and our product and service
oerings.
Cash Provided by (Used in) Financing Activities
Cashprovidedbyorusedinnancingactivitiesconsistsprimarilyofnetproceedsorpaymentsfromissuanceorrepaymentsof
short-termdebtunderourcommercialpaperprogramandnetproceedsorpaymentsandexcesstaxbenetsfromstock-based
awardactivities.
Cashusedinnancingactivitiesincreasedfrom2012to2013,primarilydrivenbyanincreaseinnetcashpaymentsrelatedto
debtand,toalesserextent,anincreaseinnetpaymentsforstock-basedawardactivities.
Cashprovidedbynancingactivitiesincreasedfrom2011to2012,primarilydrivenbyanincreaseinnetcashproceedsreceived
relatedtodebt,partiallyosetbyanincreaseinnetpaymentsforstock-basedawardactivities.
Contractual Obligations as of December 31, 2013
(in millions)
Payments due by period
Total
Less than
1year 1-3 years 3-5 years
More than
5years
Operating lease obligations, net of sublease income amounts $ 4,038 $ 499 $ 915 $788 $1,836
Purchase obligations and other 3,293 2,407 680 80 126
Long-termdebtobligations,includingcapitalleaseobligations 3,601 1,079 1,358 73 1,091
Otherlong-termliabilitiesreectedonourbalancesheet 251 114 48 55 34
Total contractual obligations $11,183 $4,099 $3,001 $996 $3,087
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2014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.
Purchase Obligations
Purchaseobligationsrepresentnon-cancelablecontractualobligationsatDecember31,2013.Thesecontractsareprimarily
related to certain of our distribution arrangements, video and other content licensing revenue sharing arrangements, data center
operationsandfacilitybuild-outs,aswellaspurchaseofinventory.
Long-term Debt Obligations
Long-termdebtobligationsrepresentprincipalandinterestpaymentstobemadeoverthelifeofourunsecuredseniornotes
issuedinMay2011andourcapitalleaseobligationincurredinAugust2013.PleaseseeNote4oftheNotestoConsolidated
FinancialStatementsincludedinItem8ofthisAnnualReportonForm10-Kforfurtherdetails.
Other Long-Term Liabilities
Otherlong-termliabilitiesrepresentcashobligationsrecordedonourconsolidatedbalancesheets,includingtheshort-term
portionoftheselong-termliabilitiesandconsistprimarilyofpaymentsowedinconnectionwithcertaininvestmentsandasset
retirementobligations.
Inadditiontotheamountsabove,wehadlong-termtaxespayableof$2.7billionasofDecember31,2013relatedtotaxpositions
forwhichthetimingoftheultimateresolutionisuncertain.Atthistime,weareunabletomakeareasonablyreliableestimateof
thetimingofpaymentsinindividualyearsbeyond12monthsduetouncertaintiesinthetimingoftaxauditoutcomes.Asaresult,
thisamountisnotincludedintheabovetable.
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