Google 2013 Annual Report Download - page 68

62 GOOGLE INC.
PART II
ITEM8.Notes to Consolidated Financial Statements
Description
Balance as of December31, 2013
Gross Amounts Not Oset in the Consolidated
Balance Sheets, but Have Legal Rights to Oset
Gross
Amounts of
Recognized
Liabilities
Gross
Amounts
Oset in the
Consolidated
Balance
Sheets
Net Presented
in the
Consolidated
Balance Sheets
Financial
Instruments
Cash
Collateral
Pledged
Non-Cash
Collateral
Pledged
Net
Liabilities
Derivatives $ 4 $ 0 $ 4 $ (2)(3) $ 0 $ 0 $ 2
Securities lending agreements 1,374 0 1,374 0 0 (1,357) 17
Total $ 1,378 $ 0 $ 1,378 $ (2) $ 0 $ (1,357) $19
(3) The balances at December 31, 2012 and December 31, 2013 were related to derivative assets which are allowed to be net settled against
derivativeliabilitiesinaccordancewithourmasternettingagreements.
 Debt
Short-Term Debt
Wehaveadebtnancingprogramofupto$3.0billionthroughtheissuanceofcommercialpaper.Netproceedsfromthis
programareusedforgeneralcorporatepurposes.AtDecember31,2012andDecember31,2013,wehad$2.5billionand
$2.0billionofoutstandingcommercialpaperrecordedasshort-termdebtwithweighted-averageinterestratesof0.2%and
0.1%.Inconjunctionwiththisprogram,wehavea$3.0billionrevolvingcreditfacilityexpiringinJuly2016.Theinterestratefor
thecreditfacilityisdeterminedbasedonaformulausingcertainmarketrates.AtDecember31,2012andDecember31,2013,
wewereincompliancewiththenancialcovenantinthecreditfacility,andnoamountswereoutstandingunderthecreditfacility
atDecember31,2012andDecember31,2013.Theestimatedfairvalueoftheshort-termdebtapproximateditscarryingvalueat
December31,2012andDecember31,2013.
Ourshort-termdebtbalancealsoincludestheshort-termportionofcertainlong-termdebt,asdescribedinthesectionbelow.
Long-Term Debt
InMay2011,weissued$3.0billionofunsecuredseniornotesinthreetranches(collectively,theNotes)andinAugust2013,we
enteredintoacapitalleaseobligation.Thedetailsofthesenancingarrangementsaredescribedinthetablebelow(inmillions):
Outstanding
Balance As of
December31, 2012
Outstanding
Balance As of
December31, 2013
Short-TermPortionofLong-TermDebt
1.25%NotesdueonMay19,2014 $ 0 $1,000
CapitalLeaseObligation 0 9
Total $ 0 $1,009
Long-TermDebt
1.25%NotesdueonMay19,2014 $1,000 $ 0
2.125%NotesdueonMay19,2016 1,000 1,000
3.625%NotesdueonMay19,2021 1,000 1,000
UnamortizeddiscountfortheNotesabove (12) (10)
Subtotal 2,988 1,990
CapitalLeaseObligation 0246
Total $2,988 $2,236
Thee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May19andNovember19ofeachyear.WemayredeemtheNotesatanytimein
wholeorfromtimetotimeinpartatspeciedredemptionprices.Wearenotsubjecttoany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$3.2billionand$3.1billionatDecember31,2012andDecember31,2013.ThefairvalueoftheNotes
wasdeterminedbasedonobservablemarketpricesofidenticalinstrumentsinlessactivemarketsandiscategorizedaccordingly
asLevel2inthefairvaluehierarchy.
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