Google 2014 Annual Report Download - page 41


relationships and acquired patents and developed technology; and discount rates. Management
based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual

Other estimates associated with the accounting for acquisitions may change as additional information becomes available regarding
the assets acquired and liabilities assumed, as more fully discussed in Note 5 of Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.
Goodwill

reporting unit level at least annually, or more frequently if events or changes in circumstances occur that would more likely than
not reduce the fair value of a reporting unit below its carrying value. Goodwill impairment tests require judgment, including the


Long-lived Assets
Long-lived assets, including property and equipment, long-term prepayments, and intangible assets, excluding goodwill, are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.


Measurement of an impairment loss would be based on the excess of the carrying amount of the asset group over its fair value.
Impairment of Marketable and Non-Marketable Securities
We periodically review our marketable and non-marketable securities for impairment. If we conclude that any of these investments
are impaired, we determine whether such impairment is other-than-temporary. Factors we consider to make such determination
include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and
our intent to sell. For marketable debt securities, we also consider whether (1) it is more likely than not that we will be required
to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result
of credit losses. If any impairment is considered other-than-temporary, we will write down the asset to its fair value and record
the corresponding charge as interest and other income, net.
ITEM7A. Quantitative and Qualitative Disclosures About
MarketRisk

Foreign Currency Exchange Risk
We transact business globally in multiple currencies. Our international revenues, as well as costs and expenses denominated


strengthening of the U.S. dollar relative to the foreign currency. 
are the British pound, Euro, and Japanese Yen.
We use foreign exchange option contracts to protect our forecasted U.S. dollar-equivalent earnings from adverse changes in
foreign currency exchange rates. These hedging contracts reduce, but do not entirely eliminate the impact of adverse currency
 The fair value of
the option contract is separated into its intrinsic and time values. Changes in the time value are recorded in interest and other
income, net. Changes in the intrinsic value are recorded as a component of accumulated other comprehensive income (AOCI)

35GOOGLE INC.

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