Google 2013 Annual Report Download - page 74

 GOOGLE INC.
PART II
ITEM8.Notes to Consolidated Financial Statements
AsofDecember31,2013,futureminimumpaymentsundernon-cancelableoperatingleases,netofsubleaseincomeamounts,
wereasfollowsovereachofthenextveyearsandthereafter(inmillions):
Operating
Leases
Sub-lease
Income
Net Operating
Leases
2014 $ 527 $28 $ 499
2015 501 24 477
2016 454 16 438
2017 427 9 418
2018 373 3 370
Thereafter 1,845 9 1,836
Totalminimumpayments $4,127 $89 $4,038
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.Rentexpenseunderoperatingleases,includingco-locationarrangements,was$380million,
$448million,and$525millionin2011,2012,and2013.
Purchase Obligations
AtDecember31,2013,wehad$3.3billionofothernon-cancelablecontractualobligations,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.
Letters of Credit
AtDecember31,2013,wehadunusedlettersofcreditfor$173million,ofwhich$69millionrelatedtoourMotorolaMobilesegment.

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indemnicationclaimcanbemadeand
theamountoftheclaim.Inaddition,wehaveenteredintoindemnicationagreementswithourocersanddirectors,andour
bylawscontainsimilarindemnicationobligationstoouragents.
Itisnotpossibletomakeareasonableestimateofthemaximumpotentialamountundertheseindemnicationagreements
duetotheuniquefactsandcircumstancesinvolvedineachparticularagreement.Additionally,wehavealimitedhistoryofprior
indemnicationclaimsandthepaymentswehavemadeundersuchagreementshavenothadamaterialadverseeecton
ourresultsofoperations,cashows,ornancialposition.However,totheextentthatvalidindemnicationclaimsariseinthe
future,futurepaymentsbyuscouldbesignicantandcouldhaveamaterialadverseeectonourresultsofoperationsorcash
owsinaparticularperiod.AsofDecember31,2013,wedidnothaveanymaterialindemnicationclaimsthatwereprobable
orreasonablypossible.
Legal Matters
 
OnNovember30,2010,theEuropeanCommission’s(EC)DirectorateGeneralforCompetitionopenedaninvestigationinto
variousantitrust-relatedcomplaintsagainstus.Webelievewehaveadequatelyrespondedtoalloftheallegationsmadeagainst
us.WecontinuetocooperatewiththeECandarepursuingapotentialresolutionthatwouldavoidandingofinfringementand
ane.TheEChasalsoopenedaninvestigationintoMotorola’slicensingpracticesforstandardsessentialpatentsanduseof
standards-essentialpatentsinlitigationonthebasisofcomplaintsbroughtbyMicrosoftandApple.TheEChasissuedaStatement
ofObjectionsagainstMotorolaallegingabuseofadominantpositionwithrespecttothesestandards-essentialpatents.Wehave
respondedtotheStatementofObjectionsandaredefendingthecase.
TheComisionNacionaldeDefensadelaCompetenciainArgentina,theCompetitionCommissionofIndia,theTaiwanFairTrade
Commission,Brazil’sCouncilforEconomicDefenseandtheCanadianCompetitionBureauhavealsoopenedinvestigationsinto
certainofourbusinesspractices.
StateattorneysgeneralfromthestatesofTexas,Ohio,andMississippihavealsoissuedCivilInvestigativeDemandsrelatingto
ourbusinesspractices.Wearecooperatingwiththestateattorneysgeneralandarerespondingtotheirinformationrequests
onanongoingbasis.


contents
