Google 2014 Annual Report Download - page 30

Revenues by Geography
The following table presents our domestic and international revenues as a percentage of revenues, determined based on the
billing addresses of our customers:
Year Ended December31,
2012 2013 2014
United States 46% 45% 43%
United Kingdom 11% 10% 10%
Rest of the world 43% 45% 47%
The growth in revenues from rest of the world as a percentage of revenues from 2012 to 2013 and from 2013 to 2014 resulted
largely from increased acceptance of our advertising programs and our continued progress in developing localized versions of

foreign currencies.
Foreign Exchange Impact on Revenues
Our international revenues are favorably impacted as the U.S. dollar weakens relative to other foreign currencies, and unfavorably
impacted as the U.S dollar strengthens relative to other foreign currencies. For the purposes of determining the impact of foreign

of a particular period translated at the current period exchange rates minus the same revenues translated at corresponding
prior year rates.
We use foreign currency options to hedge certain foreign exchange impacts on our forecasted earnings. To the extent these



period incurred.
The following table presents our foreign exchange impact on revenues for the periods presented:
Year Ended December31,
2012 2013 2014
United Kingdom revenues $ 4,846 $ 5,600 $ 6,483
Foreign exchange impact on current year revenues using corresponding prior year
exchange rates—(revenues would be higher)/revenues would be lower (68) (67) 303
Hedging gains recognized in current year 18 63 3
Rest of the world revenues $19,906 $25,167 $31,379
Foreign exchange impact on current year revenues using corresponding prior year
exchange rates—(revenues would be higher)/revenues would be lower (1,099) (536) (858)
Hedging gains recognized in current year 199 32 168
In 2014, our revenues from the United Kingdom were favorably impacted by changes in foreign currency exchange rates
over the prior year, primarily as the U.S. dollar weakened relative to certain currencies, most notably the British pound.
Our revenues from the rest of the world (excluding the United Kingdom) were unfavorably impacted by changes in foreign
currency exchange rates over the prior year, as the U.S. dollar strengthened relative to certain currencies, most notably

certain currencies, most notably the euro.
In 2013, our revenues from the United Kingdom were unfavorably impacted by changes in foreign currency exchange rates
over the prior year, primarily as the U.S dollar strengthened relative to certain currencies, most notably the British pound.
Our revenues from the rest of the world (excluding the United Kingdom) were unfavorably impacted by changes in foreign
currency exchange rates over the prior year, as the U.S. dollar strengthened relative to certain currencies, most notably

certain currencies, including the euro.
24
GOOGLE INC.
PART II
