GOOG » Topics » Operating Leases

These excerpts taken from the GOOG 10-K filed Feb 12, 2010.

Operating Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, land, and data centers throughout the world with original lease periods expiring between 2010 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 table above. 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.

Operating Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, land, and data centers throughout the world with original lease periods expiring between 2010 and 2063. We are committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis.

At December 31, 2009, future minimum payments under non-cancelable operating leases, along with sublease income amounts, were as follows over each of the next five years and thereafter (in thousands):

 

     Operating
Leases
   Sub-lease
Income
   Net
Operating
Leases

2010

   $ 309,711    $ 26,544    $ 283,167

2011

     295,885      23,717      272,168

2012

     275,684      13,897      261,787

2013

     237,473      6,926      230,547

2014

     187,788      5,275      182,513

Thereafter

     1,237,338      5,639      1,231,699
                    

Total minimum payments required

   $ 2,543,879    $ 81,998    $ 2,461,881
                    

Certain leases have adjustments for market provisions. Amounts in the table above represent our best estimates of future payments to be made under these leases. Rent expense under operating leases, including co-location arrangements, was $164.3 million, $313.6 million, and $323.2 million in 2007, 2008, and 2009.

These excerpts taken from the GOOG 10-K filed Feb 13, 2009.

Operating Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, land and data centers throughout the world with original lease periods expiring between 2009 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 table above. 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.

Operating Leases

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">We have entered into various non-cancelable operating lease agreements for certain of our offices, land and data centers throughout the world with
original lease periods expiring between 2009 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 table above. 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.

SIZE="2">Purchase Obligations

Purchase obligations represent non-cancelable contractual obligations at December 31,
2008. In addition, we had $1.3 billion of open purchase orders for which we have not received the related services or goods at December 31, 2008. This amount is not included in the above table since we have the right to cancel the purchase
orders prior to the date of delivery. The majority of our non-cancelable contractual obligations are related to data center operations and facility build-outs.

FACE="Times New Roman" SIZE="2">Other Long-Term Liabilities

Other long-term liabilities consist of cash obligations,
primarily the legal settlement with the Authors Guild and the AAP, milestone and royalty payments owed in connection with certain acquisitions and licensing agreements.

FACE="Times New Roman" SIZE="2">In addition, as a result of having adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48) in January 2007, we increased long-term taxes
payable by $400.4 million in the year ended December 31, 2007 as FIN 48 specifies that tax positions for which the timing of the ultimate resolution is uncertain should be recognized as long-term liabilities. We also recognized additional
long-term taxes payable of $362.8 million in the year ended December 31, 2008. 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 table above.

Operating Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, land and data centers throughout the world with original lease periods expiring between 2009 and 2063. We are committed to pay a portion of the related actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis.

At December 31, 2008, future minimum payments under non-cancelable operating leases, along with sublease income amounts, are as follows over each of the next five years and thereafter (in thousands):

 

     Operating
Leases
   Sub-lease
Income
   Net
Operating
Leases

2009

   $ 302,403    $ 26,974    $ 275,429

2010

     298,551      24,548      274,003

2011

     277,256      21,388      255,868

2012

     248,582      12,031      236,551

2013

     217,615      6,185      211,430

Thereafter

     1,615,563      10,850      1,604,713
                    

Total minimum payments required

   $ 2,959,970    $ 101,976    $ 2,857,994
                    

Rent expense under operating leases was $80.7 million, $127.9 million and $215.6 million in 2006, 2007, and 2008.

 

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Google Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

Operating Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, land and data centers throughout the
world with original lease periods expiring between 2009 and 2063. We are committed to pay a portion of the related actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below.
Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis.

FACE="Times New Roman" SIZE="2">At December 31, 2008, future minimum payments under non-cancelable operating leases, along with sublease income amounts, are as follows over each of the next five years and thereafter (in thousands):


 


























































































































   Operating
Leases
  Sub-lease
Income
  Net
Operating
Leases

2009

  $302,403  $26,974  $275,429

2010

   298,551   24,548   274,003

2011

   277,256   21,388   255,868

2012

   248,582   12,031   236,551

2013

   217,615   6,185   211,430

Thereafter

   1,615,563   10,850   1,604,713
            

Total minimum payments required

  $2,959,970  $101,976  $2,857,994
            

Rent expense under operating leases was $80.7 million, $127.9 million and $215.6 million in 2006,
2007, and 2008.

 


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Google Inc.

FACE="Times New Roman" SIZE="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 


These excerpts taken from the GOOG 10-K filed Feb 15, 2008.

Operating Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, land and data centers throughout the world with original lease periods expiring between 2008 and 2051. 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 table below. Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight line basis.

At December 31, 2007, future minimum payments under non-cancelable operating leases, along with sublease income amounts, are as follows over each of the next five years and thereafter (in thousands):

 

     Operating
Leases
   Sub-lease
Income
   Net
Operating
Leases

2008

   $ 169,574    $ 18,001    $ 151,573

2009

     185,157      16,649      168,508

2010

     174,194      14,038      160,156

2011

     159,764      12,810      146,954

2012

     149,767      7,991      141,776

Thereafter

     1,446,525      11,853      1,434,672
                    

Total minimum payments required

   $ 2,284,981    $ 81,342    $ 2,203,639
                    

Rent expense under operating leases was $41.2 million, $80.7 million and $127.9 million in 2005, 2006, and 2007. Sub-lease income was not material in any year presented.

The above minimum payments at December 31, 2007 under non-cancelable operating lease commitments and the above rent expense amounts do not include amounts related to certain non-cancelable service contracts for our data centers. The non-cancelable commitments under these service contracts at December 31, 2007 are included below under purchase obligations.

 

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Google Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

Operating Leases

We have entered into various non-cancelable operating lease agreements for certain of our offices, land and data centers throughout the
world with original lease periods expiring between 2008 and 2051. 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 table below. Certain of
these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight line basis.

SIZE="2">At December 31, 2007, future minimum payments under non-cancelable operating leases, along with sublease income amounts, are as follows over each of the next five years and thereafter (in thousands):

STYLE="font-size:12px;margin-top:0px;margin-bottom:0px"> 


























































































































   Operating
Leases
  Sub-lease
Income
  Net
Operating
SIZE="1">Leases

2008

  $169,574  $18,001  $151,573

2009

   185,157   16,649   168,508

2010

   174,194   14,038   160,156

2011

   159,764   12,810   146,954

2012

   149,767   7,991   141,776

Thereafter

   1,446,525   11,853   1,434,672
            

Total minimum payments required

  $2,284,981  $81,342  $2,203,639
            

Rent expense under operating leases was $41.2 million, $80.7 million and $127.9 million in 2005,
2006, and 2007. Sub-lease income was not material in any year presented.

The above minimum payments at December 31, 2007 under
non-cancelable operating lease commitments and the above rent expense amounts do not include amounts related to certain non-cancelable service contracts for our data centers. The non-cancelable commitments under these service contracts at
December 31, 2007 are included below under purchase obligations.

 


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Google Inc.

FACE="Times New Roman" SIZE="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 


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