GOOG » Topics » Purchase Obligations

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

Purchase Obligations

Purchase obligations represent non-cancelable contractual obligations at December 31, 2009. In addition, we had $1.9 billion of open purchase orders for which we have not received the related services or goods at December 31, 2009. This amount is not included in the above table because 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.

Purchase Obligations

We had $360.7 million of other non-cancelable contractual obligations and $1.9 billion of open purchase orders for which we had not received the related services or goods at December 31, 2009. We have the right to cancel these open 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.

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

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.

Purchase Obligations

We had $140.9 million of other non-cancelable contractual obligations and $1.3 billion of open purchase orders for which we had not received the related services or goods at December 31, 2008. We have the right to cancel these open purchase orders prior to the date of delivery. The majority of these purchase obligations are related to data center operations and facility build-outs.

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

Purchase Obligations

We had $734.0 million of other non-cancelable contractual obligations and $1,375.8 million of open purchase orders for which we had not received the related services or goods at December 31, 2007. We have the right to cancel these open purchase orders prior to the date of delivery. The majority of these purchase obligations are related to data center operations and facility build-outs. These non-cancelable contractual obligations and open purchase orders amounts do not include payments we may be obligated to make based upon vendors achieving certain milestones.

Purchase Obligations

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">We had $734.0 million of other non-cancelable contractual obligations and $1,375.8 million of open purchase orders for which we had not received the
related services or goods at December 31, 2007. We have the right to cancel these open purchase orders prior to the date of delivery. The majority of these purchase obligations are related to data center operations and facility build-outs.
These non-cancelable contractual obligations and open purchase orders amounts do not include payments we may be obligated to make based upon vendors achieving certain milestones.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">Letters of Credit

At
December 31, 2007 and associated with several leased facilities, we had unused letters of credit for $20.4 million. At December 31, 2007, we were in compliance with our financial covenants under the letters of credit.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">Indemnifications

In the normal
course of business to facilitate transactions of 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. These agreements may limit the time within which an indemnification claim can be made
and the amount of the claim. In addition, we have entered into indemnification agreements with our officers and directors, and our bylaws contain similar indemnification obligations to our agents.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification
claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these agreements have not had a material impact on our operating results, financial position, or cash flows.

STYLE="margin-top:18px;margin-bottom:0px; margin-left:2%">Legal Matters

Companies have filed
trademark infringement and related claims against us over the display of ads in response to user queries that include trademark terms. The outcomes of these lawsuits have differed from jurisdiction to jurisdiction. Courts in France have held us
liable for allowing advertisers to select certain

 


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

 



trademarked terms as keywords. We are appealing those decisions. We were also subject to two lawsuits in Germany on similar matters where the courts held
that we are not liable for the actions of our advertisers prior to notification of trademark rights. We are litigating or have recently litigated similar issues in other cases in the U.S., France, Germany, Israel, Italy, Austria and Australia.

We have also had copyright claims filed against us alleging that features of certain of our products and services, including Google Web
Search, Google News, Google Video, Google Image Search, Google Book Search and YouTube, infringe their rights. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements or orders
preventing us from offering certain functionalities, and may also result in a change in our business practices, which could result in a loss of revenue for us or otherwise harm our business. In addition, any time one of our products or services
links to or hosts material in which others allegedly own copyrights, we face the risk of being sued for copyright infringement or related claims. Because these products and services comprise the majority of our products and services, our business
could be harmed in the event of an adverse result in any of these claims.

We are also a party to other litigation and subject to claims
incident to the ordinary course of business, including intellectual property claims (in addition to the trademark and copyright matters noted above), labor and employment claims, breach of contract claims, tax and other matters.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Although the results of litigation and claims cannot be predicted with certainty, we believe that the final outcome of the matters discussed above will
not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows.

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