Wallstreet evidence ledger

Economic statements and versions

Repeated quotations are evidence references within one economic statement. Original classifications remain visible. A revision does not replace the original target.

Delivery credibility

Approximately $75 billion of FY2025 capital expenditure planned

Not comparable · Promise · Review: proposed

Economic ID: capex-2025-plan · Version: capex-2025-plan (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: 2025-04 (month precision)
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2025: 2025-01-01 through 2025-12-31
Completion: Unknown

A discrete capex commitment within a passage containing three different plans; shared wording does not merge different deliverables.

Evidence: alphabet2024:ff3d0adb5b06f83a55198f15a27d69eb59337b0993331bf116d84b0261d1df78

Contrary evidence: None recorded

The quote gives no cash/accrual definition or tolerance for approximately.
This evidence pack contains no matched FY2025 outcome; elapsed calendar time alone cannot establish delivery or a miss.
Spending to plan would not establish investment returns or individual contribution.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.capital_expenditures.plan.v1",
  "value": {
    "operator": "approximate",
    "amount": "75",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": {
      "value": "2025-04",
      "precision": "month",
      "basis": "Letter heading on physical page 3 says April 2025; page 4 continues that letter. The container publication date is not substituted.",
      "evidence_refs": [
        "alphabet2024:b331e5e88e13b3aa416e2543d60607f6db97ffae67113018027846b23179cf3d"
      ]
    },
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2025-01-01",
      "end": "2025-12-31",
      "label": "FY2025",
      "basis": "Calendar fiscal year stated in the cited passage and saved page context.",
      "evidence_refs": [
        "alphabet2024:ff3d0adb5b06f83a55198f15a27d69eb59337b0993331bf116d84b0261d1df78"
      ]
    },
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Sundar, CEO letter",
    "decision_by": "management",
    "individuals": [
      {
        "name": "Sundar",
        "role": "Letter signatory",
        "tenure_start": null,
        "tenure_end": null,
        "relationship": "statement",
        "evidence_refs": [
          "alphabet2024:ff3d0adb5b06f83a55198f15a27d69eb59337b0993331bf116d84b0261d1df78"
        ],
        "rationale": "The saved page is signed Sundar. This records authorship, not personal responsibility for company outcomes; exact identity/role tenure requires further evidence."
      }
    ]
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "A discrete capex commitment within a passage containing three different plans; shared wording does not merge different deliverables."
    }
  ]
}

Plan to launch a small modular reactor data-center power project

Outcome not found · Promise · Review: proposed

Economic ID: nuclear-project-plan · Version: nuclear-project-plan (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: 2025-04 (month precision)
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown
Completion: Unknown

Separate deliverable in the same quotation as capex and training. Do not count the same passage as independent corroboration.

Evidence: alphabet2024:8b77eca9e036a291fe04b36b0c0f31019e3375cc231afb7b1000e522add72c25

Contrary evidence: None recorded

No verified commissioning deadline or completion criterion. The 2025 capex modifier is not automatically applied to this project.
No comparable completion evidence in this pack.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": {
      "value": "2025-04",
      "precision": "month",
      "basis": "Letter heading on physical page 3 says April 2025; page 4 continues that letter. The container publication date is not substituted.",
      "evidence_refs": [
        "alphabet2024:b331e5e88e13b3aa416e2543d60607f6db97ffae67113018027846b23179cf3d"
      ]
    },
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null,
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Sundar, CEO letter",
    "decision_by": "management",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Separate deliverable in the same quotation as capex and training. Do not count the same passage as independent corroboration."
    }
  ]
}

Plan to expand training through the AI Opportunity Fund

Outcome not found · Promise · Review: proposed

Economic ID: training-expansion-plan · Version: training-expansion-plan (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: 2025-04 (month precision)
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown
Completion: Unknown

Training expansion is distinct from capex; the $120 million fund size is not an amount promised to be spent by a deadline.

Evidence: alphabet2024:50eb88211f42259ff0a966df5fec479bf210796af339e0f9e1ecd7a16f4fa1ba

Contrary evidence: None recorded

No normalized delivery amount, deadline or outcome; fund size is retained only in original evidence.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": {
      "value": "2025-04",
      "precision": "month",
      "basis": "Letter heading on physical page 3 says April 2025; page 4 continues that letter. The container publication date is not substituted.",
      "evidence_refs": [
        "alphabet2024:b331e5e88e13b3aa416e2543d60607f6db97ffae67113018027846b23179cf3d"
      ]
    },
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null,
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Sundar, CEO letter",
    "decision_by": "management",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Training expansion is distinct from capex; the $120 million fund size is not an amount promised to be spent by a deadline."
    }
  ]
}

Commitment to help 1 billion people make more sustainable choices by end 2022

Unresolved · Promise · Review: proposed

Economic ID: sustainable-choices-2022-commitment · Version: sustainable-choices-2022-commitment (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: 2022-12-31 (day precision)
Measurement period: Unknown

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2021:a3d623d8c32e62b6998ee365a5aa8b0f527ca7958254c7c927b3a3ee6754ab18

Contrary evidence: alphabet2021:6e1f94beba65b20bd093b792ea74488bb808bd7ec747cbb7351d03fa27fdecf8

The original statement date and operational definition of help/more sustainable choices remain unresolved.
No matched impact outcome is curated from these annual reports; that is not evidence of a missed goal.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": {
      "value": "2022-12-31",
      "precision": "day",
      "basis": "The source explicitly says by the end of 2022; the year end is December 31 for this calendar-year commitment.",
      "evidence_refs": [
        "alphabet2021:a3d623d8c32e62b6998ee365a5aa8b0f527ca7958254c7c927b3a3ee6754ab18"
      ]
    },
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

Disclosure accountability

Management concluded internal financial reporting controls were effective at year end

Not a delivery promise · Context · Review: proposed

Economic ID: controls-conclusion-2024 · Version: controls-conclusion-2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2024-12-31 (day precision)
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown
Completion: Unknown

A management disclosure about controls; it does not establish psychological honesty or delivery credibility.

Evidence: alphabet2024:8a55f46e67bf8dddd91e2269b4e32126951185d84d2db548ae9ea418ddf6af48

Contrary evidence: None recorded

This is management’s conclusion, not a universal trust rating.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2024-12-31",
      "precision": "day",
      "basis": "Date of the assessed controls, not the later statement date.",
      "evidence_refs": [
        "alphabet2024:8a55f46e67bf8dddd91e2269b4e32126951185d84d2db548ae9ea418ddf6af48"
      ]
    },
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null,
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "management",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "A management disclosure about controls; it does not establish psychological honesty or delivery credibility."
    }
  ]
}

August 2024 Search antitrust ruling with remedies unresolved in the pack

Not a delivery promise · Challenge · Review: proposed

Economic ID: search-antitrust-ruling · Version: search-antitrust-ruling (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2024-08 (month precision)
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown
Completion: Unknown

Claim 71 explicitly supports the ruling and date. Claim 25’s quote supports remedies only; its broader original summary is not used as ruling evidence.

Evidence: alphabet2024:7bb6ef9d16c355b71296afcc5a41b3d2d4baba12512207ffc69fdffcce9c35c4

Contrary evidence: None recorded

Company legal event; no individual misconduct or director attribution inferred.
The saved pack is historical and does not establish current litigation status.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2024-08",
      "precision": "month",
      "basis": "The excerpt explicitly dates the court ruling to August 2024.",
      "evidence_refs": [
        "alphabet2024:7bb6ef9d16c355b71296afcc5a41b3d2d4baba12512207ffc69fdffcce9c35c4"
      ]
    },
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null,
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Claim 71 explicitly supports the ruling and date. Claim 25’s quote supports remedies only; its broader original summary is not used as ruling evidence."
    }
  ]
}

Shopping fine upheld in September 2024; $3.0B paid in Q3

Not a delivery promise · Challenge · Review: proposed

Economic ID: shopping-fine-2024 · Version: shopping-fine-2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2024-09 (month precision)
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown

Distinct dated event or fiscal-year outcome; repeated topic alone does not establish economic identity.

Evidence: alphabet2024:e3419fab87a788b5d1a031d62682ccfe4a70e2f99a338548198020f022a8efcb

Contrary evidence: None recorded

Proposed interpretation; company event does not establish individual contribution.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2024-09",
      "precision": "month",
      "basis": "Month explicitly stated in cited passage.",
      "evidence_refs": [
        "alphabet2024:e3419fab87a788b5d1a031d62682ccfe4a70e2f99a338548198020f022a8efcb"
      ]
    },
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Source passage and its physical page context reviewed; no human approval asserted."
    }
  ]
}

December 2025 Search remedies judgment, followed by January 2026 appeal

Not a delivery promise · Challenge · Review: proposed

Economic ID: search-remedies-december2025 · Version: search-remedies-december2025 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2025-12 (month precision)
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown

Distinct dated corporate event or annual outcome; original plan and later outcomes remain separate entries.

Evidence: alphabet2025:207953d15d098a0b11b2de79f4a5b49ed268f019928e3992a8fbafd0b82f5b81

Contrary evidence: None recorded

Later appeals retain their own 2026 dates; the December judgment is not final resolution of all litigation.
Historical issuer account; no current legal assessment or personal culpability inferred.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2025-12",
      "precision": "month",
      "basis": "Month explicitly stated in saved source quotation.",
      "evidence_refs": [
        "alphabet2025:207953d15d098a0b11b2de79f4a5b49ed268f019928e3992a8fbafd0b82f5b81"
      ]
    },
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Quoted source and full page reviewed; interpretation remains proposed, with no individual attribution."
    }
  ]
}

EC issued an adtech decision imposing a €3 billion fine; Alphabet recognized a $3.5 billion Q3 charge, appealed in November and supplied Q4 bank guarantees in lieu of cash payment.

Not a delivery promise · Challenge · Review: proposed

Economic ID: ec-adtech-fine-september2025 · Version: ec-adtech-fine-september2025 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2025-09 (month precision)
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown

Distinct dated corporate event or annual outcome; original plan and later outcomes remain separate entries.

Evidence: alphabet2025supplement:5470934a3422bbffe7bbca62de320b7056e253c387769bb3678668f5cddcd18e

Contrary evidence: None recorded

Fine, charge, appeal and bank guarantee are separate dated facts; do not invent an FX conversion or classify the charge as cash paid.
Appeal unresolved in the historical source; no current legal verdict is implied.
This EC matter is distinct from the US adtech mixed ruling/remedies and from Search litigation.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2025-09",
      "precision": "month",
      "basis": "Month explicitly stated in saved source quotation.",
      "evidence_refs": [
        "alphabet2025supplement:5470934a3422bbffe7bbca62de320b7056e253c387769bb3678668f5cddcd18e"
      ]
    },
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Quoted source and full page reviewed; interpretation remains proposed, with no individual attribution."
    }
  ]
}

FY2021 source discloses a goal to replenish more water than consumed by 2030

Not a delivery promise · Context · Review: proposed

Economic ID: water-goal-reported-2021 · Version: water-goal-reported-2021 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: 2030 (year precision)
Measurement period: Unknown

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2021:cfc408f6c5107e75c08ef95bb127660c6dbd7689d96e7fc81e5c9f9e6e72375e

Contrary evidence: None recorded

Reported goal retains its wording; scope, measure, original statement date and related later wording need review before treating another statement as a revision.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": {
      "value": "2030",
      "precision": "year",
      "basis": "By 2030 is stated; no exact completion day is invented.",
      "evidence_refs": [
        "alphabet2021:cfc408f6c5107e75c08ef95bb127660c6dbd7689d96e7fc81e5c9f9e6e72375e"
      ]
    },
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

Operating efficiency

Company operating margin was 32% in FY2024

Not a delivery promise · Outcome · Review: proposed

Economic ID: operating-margin-fy2024 · Version: operating-margin-fy2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2024: 2024-01-01 through 2024-12-31
Completion: Unknown

Select one metric from the multi-metric table; preserve the supplied-layout snapshot and full page column headers.

Evidence: alphabet2024:22cac06c12be9fbada35cb3951145748fd323c16b7cd0f8eb9135152aa2cb597

Contrary evidence: None recorded

Company performance, without attribution to an individual director.
Table also shows 27% in 2023; the 5% change column is a five percentage-point difference, not a 5% relative increase.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.operating_margin.v1",
  "value": {
    "operator": "eq",
    "amount": "32",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2024-01-01",
      "end": "2024-12-31",
      "label": "FY2024",
      "basis": "Calendar fiscal year stated in the cited passage and saved page context.",
      "evidence_refs": [
        "alphabet2024:22cac06c12be9fbada35cb3951145748fd323c16b7cd0f8eb9135152aa2cb597"
      ]
    },
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Select one metric from the multi-metric table; preserve the supplied-layout snapshot and full page column headers."
    }
  ]
}

Company operating expenses were $91.3 billion in FY2024

Not a delivery promise · Outcome · Review: proposed

Economic ID: operating-expenses-fy2024 · Version: operating-expenses-fy2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2024: 2024-01-01 through 2024-12-31
Completion: Unknown

Operating expenses exclude cost of revenues and must not be compared with capex or total operating costs.

Evidence: alphabet2024:30833f661b7dae38579632823de3dcab1213c5267a5f31d94f2312c6fab58862

Contrary evidence: None recorded

Lower legal and office-space charges partly offset depreciation, compensation and services cost increases.
An expense increase by itself is not an efficiency verdict.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.operating_expense.v1",
  "value": {
    "operator": "eq",
    "amount": "91.3",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2024-01-01",
      "end": "2024-12-31",
      "label": "FY2024",
      "basis": "Calendar fiscal year stated in the cited passage and saved page context.",
      "evidence_refs": [
        "alphabet2024:30833f661b7dae38579632823de3dcab1213c5267a5f31d94f2312c6fab58862"
      ]
    },
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Operating expenses exclude cost of revenues and must not be compared with capex or total operating costs."
    }
  ]
}

Company reported 183,323 employees at year end

Not a delivery promise · Context · Review: proposed

Economic ID: employees-year-end-2024 · Version: employees-year-end-2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Year-end headcount: 2024-12-31 through 2024-12-31
Completion: Unknown

Two report mentions of the same year-end headcount; not separate company events.

Evidence: alphabet2024:0774a7a780d6aa7dad1d64ca5a86f1e75456bc0e1fe7de02b8cdd93283947564, alphabet2024:69df3ad746af89d969e39b5d5a1dd176cf76899dfea0f67e889e45810340ee37

Contrary evidence: None recorded

Headcount is context, not output per employee or individual productivity.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.employees.v1",
  "value": {
    "operator": "eq",
    "amount": "183323",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2024-12-31",
      "end": "2024-12-31",
      "label": "Year-end headcount",
      "basis": "Both excerpts report employees as of December 31, 2024.",
      "evidence_refs": [
        "alphabet2024:0774a7a780d6aa7dad1d64ca5a86f1e75456bc0e1fe7de02b8cdd93283947564",
        "alphabet2024:69df3ad746af89d969e39b5d5a1dd176cf76899dfea0f67e889e45810340ee37"
      ]
    },
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Two report mentions of the same year-end headcount; not separate company events."
    }
  ]
}

FY2024 revenue $350.0 billion, up 14%

Not a delivery promise · Outcome · Review: proposed

Economic ID: revenue-fy2024 · Version: revenue-fy2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2024: 2024-01-01 through 2024-12-31

Distinct dated event or fiscal-year outcome; repeated topic alone does not establish economic identity.

Evidence: alphabet2024:2e2718a0d44b173ad411b4700b28d48dc0798f8ec1206858079b6f5f39f185f1

Contrary evidence: None recorded

Proposed interpretation; company event does not establish individual contribution.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.revenue.v1",
  "value": {
    "operator": "eq",
    "amount": "350.0",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2024-01-01",
      "end": "2024-12-31",
      "label": "FY2024",
      "basis": "Annual period in quoted passage and saved page.",
      "evidence_refs": [
        "alphabet2024:2e2718a0d44b173ad411b4700b28d48dc0798f8ec1206858079b6f5f39f185f1"
      ]
    }
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Source passage and its physical page context reviewed; no human approval asserted."
    }
  ]
}

Gemini app team joins Google DeepMind in October2024

Not a delivery promise · Decision · Review: proposed

Economic ID: gemini-organization-2024 · Version: gemini-organization-2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2024-10 (month precision)
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown

Distinct dated event or fiscal-year outcome; repeated topic alone does not establish economic identity.

Evidence: alphabet2024:aa9421637a7d7fbabe105f4f20f8e8b8cf8fd4961e6293d6937da13817f46191

Contrary evidence: None recorded

Proposed interpretation; company event does not establish individual contribution.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2024-10",
      "precision": "month",
      "basis": "Month explicitly stated in cited passage.",
      "evidence_refs": [
        "alphabet2024:aa9421637a7d7fbabe105f4f20f8e8b8cf8fd4961e6293d6937da13817f46191"
      ]
    },
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "management",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Source passage and its physical page context reviewed; no human approval asserted."
    }
  ]
}

FY2025 revenue of $402.8 billion, up 15%

Not a delivery promise · Outcome · Review: proposed

Economic ID: revenue-fy2025 · Version: revenue-fy2025 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2025: 2025-01-01 through 2025-12-31

Distinct dated corporate event or annual outcome; original plan and later outcomes remain separate entries.

Evidence: alphabet2025:14695ea71f6bb46762ba6ac1cfe632647cbf5ef86994b56f32d247617a98df34

Contrary evidence: None recorded

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.revenue.v1",
  "value": {
    "operator": "eq",
    "amount": "402.8",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2025-01-01",
      "end": "2025-12-31",
      "label": "FY2025",
      "basis": "Annual expenditure/revenue period explicitly stated in source and page context.",
      "evidence_refs": [
        "alphabet2025:14695ea71f6bb46762ba6ac1cfe632647cbf5ef86994b56f32d247617a98df34"
      ]
    }
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Quoted source and full page reviewed; interpretation remains proposed, with no individual attribution."
    }
  ]
}

FY2021 revenue of $257.6B, up 41%

Not a delivery promise · Outcome · Review: proposed

Economic ID: revenue-fy2021 · Version: revenue-fy2021 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2021: 2021-01-01 through 2021-12-31

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2021:0629f1198af7c4141989d7d984552ecdf39e0458852e7ce5721915207cb554b5

Contrary evidence: None recorded

The source attributes part of the growth comparison to COVID-19 affecting 2020 advertising revenue. Revenue growth alone is not efficiency or individual contribution.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.revenue.v1",
  "value": {
    "operator": "eq",
    "amount": "257.6",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2021-01-01",
      "end": "2021-12-31",
      "label": "FY2021",
      "basis": "Calendar fiscal-year measurement in the source.",
      "evidence_refs": [
        "alphabet2021:0629f1198af7c4141989d7d984552ecdf39e0458852e7ce5721915207cb554b5"
      ]
    }
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

FY2022 revenue $282.8B, up10%

Not a delivery promise · Outcome · Review: proposed

Economic ID: revenue-fy2022 · Version: revenue-fy2022 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2022: 2022-01-01 through 2022-12-31

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2022and2023:a67136a8f682d386be88fc2b7dbbbdedcbae0507d4f847a56989248457daf808

Contrary evidence: None recorded

Revenue is company context, not proof of efficiency or individual contribution.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.revenue.v1",
  "value": {
    "operator": "eq",
    "amount": "282.8",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2022-01-01",
      "end": "2022-12-31",
      "label": "FY2022",
      "basis": "Calendar fiscal-year measurement in the source.",
      "evidence_refs": [
        "alphabet2022and2023:a67136a8f682d386be88fc2b7dbbbdedcbae0507d4f847a56989248457daf808"
      ]
    }
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

FY2023 revenue $307.4B, up9%

Not a delivery promise · Outcome · Review: proposed

Economic ID: revenue-fy2023 · Version: revenue-fy2023 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2023: 2023-01-01 through 2023-12-31

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2022and2023:815b2e8c71fd4334deee628256859e9a9f2fafd6413b61ac12665f8323b0333a

Contrary evidence: None recorded

Revenue is company context, not proof of efficiency or individual contribution.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.revenue.v1",
  "value": {
    "operator": "eq",
    "amount": "307.4",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2023-01-01",
      "end": "2023-12-31",
      "label": "FY2023",
      "basis": "Calendar fiscal-year measurement in the source.",
      "evidence_refs": [
        "alphabet2022and2023:815b2e8c71fd4334deee628256859e9a9f2fafd6413b61ac12665f8323b0333a"
      ]
    }
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

Longer server/network useful lives reduced FY2023 depreciation expense by $3.9B

Not a delivery promise · Decision · Review: proposed

Economic ID: depreciation-estimate-2023 · Version: depreciation-estimate-2023 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2023-01 (month precision)
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2023: 2023-01-01 through 2023-12-31

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2022and2023:caeb9aba277af0ca9512433a0a2c81f4e884b78bb1302a42cfeef4227d397bb9

Contrary evidence: None recorded

An accounting estimate change affects expense timing; it is not an equivalent cash saving or evidence of misconduct.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2023-01",
      "precision": "month",
      "basis": "Event date stated in the quoted source; publication and statement dates remain distinct.",
      "evidence_refs": [
        "alphabet2022and2023:caeb9aba277af0ca9512433a0a2c81f4e884b78bb1302a42cfeef4227d397bb9"
      ]
    },
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2023-01-01",
      "end": "2023-12-31",
      "label": "FY2023",
      "basis": "Calendar fiscal-year measurement in the source.",
      "evidence_refs": [
        "alphabet2022and2023:caeb9aba277af0ca9512433a0a2c81f4e884b78bb1302a42cfeef4227d397bb9"
      ]
    }
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "company",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

Workforce reduction announced in January 2023

Not a delivery promise · Decision · Review: proposed

Economic ID: workforce-announcement-2023 · Version: workforce-announcement-2023 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2023-01 (month precision)
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2022and2023:6e6f3d5fb9aef35c7485577f5dbac90f471599070e26b03c57ea6eeda51185a6

Contrary evidence: None recorded

No exact January day or headcount is inferred from this quotation.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2023-01",
      "precision": "month",
      "basis": "Event date stated in the quoted source; publication and statement dates remain distinct.",
      "evidence_refs": [
        "alphabet2022and2023:6e6f3d5fb9aef35c7485577f5dbac90f471599070e26b03c57ea6eeda51185a6"
      ]
    },
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "company",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

FY2023 employee severance and related charges of $2.1B

Not a delivery promise · Outcome · Review: proposed

Economic ID: severance-fy2023 · Version: severance-fy2023 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2023: 2023-01-01 through 2023-12-31

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2022and2023:6e6f3d5fb9aef35c7485577f5dbac90f471599070e26b03c57ea6eeda51185a6

Contrary evidence: None recorded

Full-year charge, not a January cash payment or demonstrated savings.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2023-01-01",
      "end": "2023-12-31",
      "label": "FY2023",
      "basis": "Calendar fiscal-year measurement in the source.",
      "evidence_refs": [
        "alphabet2022and2023:6e6f3d5fb9aef35c7485577f5dbac90f471599070e26b03c57ea6eeda51185a6"
      ]
    }
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

Capital stewardship

Future quarterly dividend intention, subject to board approval

Not a delivery promise · Conditional intention · Review: proposed

Economic ID: future-dividend-intention · Version: future-dividend-intention (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown
Completion: Unknown

These three passages repeat one conditional economic intention in the same report. Original classifications (two measurable promises, one aspiration) remain attached; normalize to conditional intention because no fixed amount or deadline is promised.

Evidence: alphabet2024:e0c80ab2dfce3ab56baaea1f62b78be8812a92bfd78d9d76a7de1575d849069b, alphabet2024:ecf2abd658078c7904b21d60bccb133508149f10f53a6601f23bb1e7e76d1f85, alphabet2024:7027ce4747de43f3122e7ec3319ab655a6dc07d8729bfce2944d875a00b792f7

Contrary evidence: None recorded

Three extraction records are one intention, not three promises or independent corroborations.
Past payments do not establish future board approvals.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [
    "Every payment remains subject to board review and approval in its sole discretion."
  ],
  "dates": {
    "statement": null,
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null,
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "board",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "These three passages repeat one conditional economic intention in the same report. Original classifications (two measurable promises, one aspiration) remain attached; normalize to conditional intention because no fixed amount or deadline is promised."
    }
  ]
}

Board authorizes up to an additional $70 billion of repurchases

Not a delivery promise · Authorization · Review: proposed

Economic ID: april-2024-buyback-authorization · Version: april-2024-buyback-authorization (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2024-04 (month precision)
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown
Completion: Unknown

Both passages describe the same April 2024 authorization. The $44.7 billion remaining at year end is a separate balance, not its date or a spending deadline.

Evidence: alphabet2024:a4063f76d0d0cb62885afdfc5654541f933150ed17f471b8443a899542cfc59e, alphabet2024:0089984fbe10352cdd454aa80510790044df1e19b86338785add78042933ae8c

Contrary evidence: None recorded

Authorization is permission, not a promise to spend the whole amount.
Year-end remaining capacity and annual cash repurchases must not be subtracted from this authorization without a roll-forward.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.repurchase_authorization.v1",
  "value": {
    "operator": "lte",
    "amount": "70",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2024-04",
      "precision": "month",
      "basis": "Both excerpts explicitly date the authorization to April 2024.",
      "evidence_refs": [
        "alphabet2024:a4063f76d0d0cb62885afdfc5654541f933150ed17f471b8443a899542cfc59e",
        "alphabet2024:0089984fbe10352cdd454aa80510790044df1e19b86338785add78042933ae8c"
      ]
    },
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null,
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "board",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Both passages describe the same April 2024 authorization. The $44.7 billion remaining at year end is a separate balance, not its date or a spending deadline."
    }
  ]
}

Company repurchased $62 billion of shares in FY2024

Not a delivery promise · Outcome · Review: proposed

Economic ID: repurchases-fy2024 · Version: repurchases-fy2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2024: 2024-01-01 through 2024-12-31
Completion: Unknown

Both passages report the same fiscal-year repurchase total. Claim 76 also supports the distinct board authorization.

Evidence: alphabet2024:64f0e8d2ef60bf3032e35c6be9157af485dd7d47b8b78db58bdd0d6bd2346393, alphabet2024:0089984fbe10352cdd454aa80510790044df1e19b86338785add78042933ae8c

Contrary evidence: None recorded

Company cash distribution does not establish investment returns.
Annual repurchases cannot be assigned wholly to the April authorization.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.repurchase_cash.v1",
  "value": {
    "operator": "eq",
    "amount": "62",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2024-01-01",
      "end": "2024-12-31",
      "label": "FY2024",
      "basis": "Calendar fiscal year stated in the cited passage and saved page context.",
      "evidence_refs": [
        "alphabet2024:64f0e8d2ef60bf3032e35c6be9157af485dd7d47b8b78db58bdd0d6bd2346393",
        "alphabet2024:0089984fbe10352cdd454aa80510790044df1e19b86338785add78042933ae8c"
      ]
    },
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Both passages report the same fiscal-year repurchase total. Claim 76 also supports the distinct board authorization."
    }
  ]
}

Company paid $7.4 billion of dividends in FY2024, starting in June

Not a delivery promise · Outcome · Review: proposed

Economic ID: dividends-fy2024 · Version: dividends-fy2024 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2024-06 (month precision)
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2024: 2024-01-01 through 2024-12-31
Completion: Unknown

The share-class payments and stated total refer to one annual distribution; June is the first-payment event, not the measurement period.

Evidence: alphabet2024:8988e571dc421aed38c4f4d7448924b10a0e71ab7e079d490512538669a706fb, alphabet2024:b7cdbafa3d0f5f0fcdd7da076849245f7a3641cb6ed0d8b6f66fc7ce2e4af6ff

Contrary evidence: None recorded

The FY2024 total does not show each future quarter or approve future payments.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.dividend_cash.v1",
  "value": {
    "operator": "eq",
    "amount": "7.4",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2024-06",
      "precision": "month",
      "basis": "First payments explicitly dated to June in claim 54; no exact payment day is asserted.",
      "evidence_refs": [
        "alphabet2024:b7cdbafa3d0f5f0fcdd7da076849245f7a3641cb6ed0d8b6f66fc7ce2e4af6ff"
      ]
    },
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2024-01-01",
      "end": "2024-12-31",
      "label": "FY2024",
      "basis": "Calendar fiscal year stated in the cited passage and saved page context.",
      "evidence_refs": [
        "alphabet2024:8988e571dc421aed38c4f4d7448924b10a0e71ab7e079d490512538669a706fb",
        "alphabet2024:b7cdbafa3d0f5f0fcdd7da076849245f7a3641cb6ed0d8b6f66fc7ce2e4af6ff"
      ]
    },
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "The share-class payments and stated total refer to one annual distribution; June is the first-payment event, not the measurement period."
    }
  ]
}

$8.8 billion of future fixed or minimum content licensing commitments at year end

Not a delivery promise · Obligation · Review: proposed

Economic ID: content-licensing-obligations · Version: content-licensing-obligations (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Year-end balance: 2024-12-31 through 2024-12-31
Completion: Unknown

Existing contractual obligations are a balance disclosure, not a new discretionary management delivery pledge.

Evidence: alphabet2024:18f1131de13e872f401993aba94f4a446fa7588dab7b1ab053e2d1ff3bfd56c7

Contrary evidence: None recorded

Only the majority is payable quarterly through Q1 2030; applying that deadline to all $8.8 billion would overstate the source.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.content_licensing_obligation.v1",
  "value": {
    "operator": "eq",
    "amount": "8.8",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2024-12-31",
      "end": "2024-12-31",
      "label": "Year-end balance",
      "basis": "Commitments outstanding as of December 31, 2024.",
      "evidence_refs": [
        "alphabet2024:18f1131de13e872f401993aba94f4a446fa7588dab7b1ab053e2d1ff3bfd56c7"
      ]
    },
    "completion": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex offline curation",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Existing contractual obligations are a balance disclosure, not a new discretionary management delivery pledge."
    }
  ]
}

Reported FY2025 capital expenditure of $91.4 billion

Not a delivery promise · Outcome · Review: proposed

Economic ID: capex-fy2025-outcome · Version: capex-fy2025-outcome (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: Unknown
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: FY2025: 2025-01-01 through 2025-12-31

Distinct dated corporate event or annual outcome; original plan and later outcomes remain separate entries.

Evidence: alphabet2025:f7894dacd75515ab8b2805326e523a3a817773261c4d5dd85b6205963d5b086e

Contrary evidence: None recorded

Narrative amount is rounded; exact cash-flow purchases of property and equipment require a reviewed bridge to the plan definition.
Annual spending does not establish timely deployment, investment returns or individual contribution.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": "alphabet.capital_expenditures.reported.v1",
  "value": {
    "operator": "eq",
    "amount": "91.4",
    "upper": null,
    "tolerance": null
  },
  "conditions": [],
  "dates": {
    "statement": null,
    "event": null,
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": {
      "start": "2025-01-01",
      "end": "2025-12-31",
      "label": "FY2025",
      "basis": "Annual expenditure/revenue period explicitly stated in source and page context.",
      "evidence_refs": [
        "alphabet2025:f7894dacd75515ab8b2805326e523a3a817773261c4d5dd85b6205963d5b086e"
      ]
    }
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Quoted source and full page reviewed; interpretation remains proposed, with no individual attribution."
    }
  ]
}

March 2025 agreement to acquire Wiz for $32B

Not a delivery promise · Decision · Review: proposed

Economic ID: wiz-agreement-march2025 · Version: wiz-agreement-march2025 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2025-03 (month precision)
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown

Distinct dated corporate event or annual outcome; original plan and later outcomes remain separate entries.

Evidence: alphabet2025:9bbf3889d7332b97757fd52c218dd37cefa443fefcb8f0eca5aa02182043fe13

Contrary evidence: None recorded

Agreement is not completed acquisition; the historical source does not establish post-close returns.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [
    "Expected closing in 2026 is subject to customary conditions and regulatory approvals."
  ],
  "dates": {
    "statement": null,
    "event": {
      "value": "2025-03",
      "precision": "month",
      "basis": "Month explicitly stated in saved source quotation.",
      "evidence_refs": [
        "alphabet2025:9bbf3889d7332b97757fd52c218dd37cefa443fefcb8f0eca5aa02182043fe13"
      ]
    },
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "company",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Quoted source and full page reviewed; interpretation remains proposed, with no individual attribution."
    }
  ]
}

Mandiant acquisition closed September 12,2022 for $6.1B

Not a delivery promise · Outcome · Review: proposed

Economic ID: mandiant-close-2022 · Version: mandiant-close-2022 (original)

Predecessor: none. Successors: none. Lifecycle: original.

Statement: Unknown
Event: 2022-09-12 (day precision)
Completion: Unknown
First disclosure: Unknown
Target deadline: Unknown
Measurement period: Unknown

Distinct economic event or full-year measurement; identical topics across different fiscal years are not merged.

Evidence: alphabet2022and2023:c39355501ef6e13ecc655513cc8017388cfecaa86a9c64bdf6f14838ba0f8fd4

Contrary evidence: None recorded

Completion and purchase price do not establish synergies or investment returns. Acquired operations change Google Cloud segment scope.

Metric, conditions, date basis, attribution and review history

{
  "metric_id": null,
  "value": null,
  "conditions": [],
  "dates": {
    "statement": null,
    "event": {
      "value": "2022-09-12",
      "precision": "day",
      "basis": "Event date stated in the quoted source; publication and statement dates remain distinct.",
      "evidence_refs": [
        "alphabet2022and2023:c39355501ef6e13ecc655513cc8017388cfecaa86a9c64bdf6f14838ba0f8fd4"
      ]
    },
    "completion": null,
    "first_disclosure": null,
    "target_deadline": null,
    "measurement_period": null
  },
  "actors": {
    "outcome_entity": "Alphabet Inc.",
    "statement_by": "Alphabet Inc.",
    "decision_by": "not_applicable",
    "individuals": []
  },
  "review_history": [
    {
      "status": "proposed",
      "reviewer": "Codex source review",
      "reviewer_type": "automated",
      "at": "2026-09-30",
      "rationale": "Explicit quotation and saved page reviewed; no human approval or individual causation asserted."
    }
  ]
}

Outcome comparisons

Every gate must align before a numeric delivery assessment. Rejected candidates stay visible.

future-dividend-intention → dividends-fy2024

Not comparable. Retained rejected candidate: FY2024 distributions cannot fulfill a discretionary future dividend intention.

Gate	Result	Reason
Entry kind	Unresolved / mismatch	Only delivery promises and reported outcomes qualify; intentions and authorizations do not.
Review	Unresolved / mismatch	Both interpretations and the proposed match require explicit semantic review.
Canonical metric	Unresolved / mismatch	Canonical definition IDs must match; similar words or numeric values are insufficient.
Definition	Unresolved / mismatch	Promise: None; outcome: 'Total cash dividends paid to Class A, B and C stockholders in the fiscal year.'. No automatic conversions or inferred basis.
Unit	Unresolved / mismatch	Promise: None; outcome: 'USD billion'. No automatic conversions or inferred basis.
Accounting basis	Unresolved / mismatch	Promise: None; outcome: 'cash_paid'. No automatic conversions or inferred basis.
Scope	Unresolved / mismatch	Promise: None; outcome: 'Alphabet consolidated'. No automatic conversions or inferred basis.
Measurement basis	Unresolved / mismatch	Promise: None; outcome: 'period_total'. No automatic conversions or inferred basis.
Measurement period	Unresolved / mismatch	Both the start and end of the measurement period must match exactly.
Entity	Aligned	Comparison is at the company/entity level; this is not an individual performance assessment.
Chronology	Unresolved / mismatch	The promise must unambiguously precede completion; a retrospective result is not delivery.
Promise available	Unresolved / mismatch	First disclosure must be supported and fully on/before the assessment cutoff.
Outcome available	Unresolved / mismatch	First disclosure must be supported and fully on/before the assessment cutoff.
Reporting chronology	Unresolved / mismatch	An outcome must be disclosed after its measurement period and any asserted completion; earlier guidance is not a final result.
Period complete	Aligned	Partial periods cannot establish final delivery.
Numeric value	Unresolved / mismatch	A normalized target and a point outcome are required.
Approximation	Unresolved / mismatch	Approximately has no automatic tolerance; an explicit reviewed tolerance is required.
Conditions	Unresolved / mismatch	Conditional promises need a separate supported unconditional target before automatic comparison.
Contrary evidence	Aligned	Cited contrary evidence is unresolved; it must not be silently outvoted by a matching result.

Contrary evidence: None recorded

Full comparison record

{
  "match_id": "dividend-intent-vs-past-payments",
  "promise_id": "future-dividend-intention",
  "outcome_id": "dividends-fy2024",
  "rationale": "Retained rejected candidate: FY2024 distributions cannot fulfill a discretionary future dividend intention.",
  "checks": [
    {
      "field": "entry_kind",
      "aligned": false,
      "rationale": "Only delivery promises and reported outcomes qualify; intentions and authorizations do not."
    },
    {
      "field": "review",
      "aligned": false,
      "rationale": "Both interpretations and the proposed match require explicit semantic review."
    },
    {
      "field": "canonical_metric",
      "aligned": false,
      "rationale": "Canonical definition IDs must match; similar words or numeric values are insufficient."
    },
    {
      "field": "definition",
      "aligned": false,
      "rationale": "Promise: None; outcome: 'Total cash dividends paid to Class A, B and C stockholders in the fiscal year.'. No automatic conversions or inferred basis."
    },
    {
      "field": "unit",
      "aligned": false,
      "rationale": "Promise: None; outcome: 'USD billion'. No automatic conversions or inferred basis."
    },
    {
      "field": "accounting_basis",
      "aligned": false,
      "rationale": "Promise: None; outcome: 'cash_paid'. No automatic conversions or inferred basis."
    },
    {
      "field": "scope",
      "aligned": false,
      "rationale": "Promise: None; outcome: 'Alphabet consolidated'. No automatic conversions or inferred basis."
    },
    {
      "field": "measurement_basis",
      "aligned": false,
      "rationale": "Promise: None; outcome: 'period_total'. No automatic conversions or inferred basis."
    },
    {
      "field": "measurement_period",
      "aligned": false,
      "rationale": "Both the start and end of the measurement period must match exactly."
    },
    {
      "field": "entity",
      "aligned": true,
      "rationale": "Comparison is at the company/entity level; this is not an individual performance assessment."
    },
    {
      "field": "chronology",
      "aligned": false,
      "rationale": "The promise must unambiguously precede completion; a retrospective result is not delivery."
    },
    {
      "field": "promise_available",
      "aligned": false,
      "rationale": "First disclosure must be supported and fully on/before the assessment cutoff."
    },
    {
      "field": "outcome_available",
      "aligned": false,
      "rationale": "First disclosure must be supported and fully on/before the assessment cutoff."
    },
    {
      "field": "reporting_chronology",
      "aligned": false,
      "rationale": "An outcome must be disclosed after its measurement period and any asserted completion; earlier guidance is not a final result."
    },
    {
      "field": "period_complete",
      "aligned": true,
      "rationale": "Partial periods cannot establish final delivery."
    },
    {
      "field": "numeric_value",
      "aligned": false,
      "rationale": "A normalized target and a point outcome are required."
    },
    {
      "field": "approximation",
      "aligned": false,
      "rationale": "Approximately has no automatic tolerance; an explicit reviewed tolerance is required."
    },
    {
      "field": "conditions",
      "aligned": false,
      "rationale": "Conditional promises need a separate supported unconditional target before automatic comparison."
    },
    {
      "field": "contrary_evidence",
      "aligned": true,
      "rationale": "Cited contrary evidence is unresolved; it must not be silently outvoted by a matching result."
    }
  ],
  "contrary_evidence_refs": [],
  "review_status": "proposed",
  "limitations": [
    "Included to document why this tempting association is not a delivery match."
  ],
  "status": "not_comparable",
  "variance": null,
  "elapsed_days": null
}

april-2024-buyback-authorization → repurchases-fy2024

Not comparable. Retained rejected candidate: authorization ceiling and fiscal-year cash repurchases are different metrics and periods of decision activity.

Gate	Result	Reason
Entry kind	Unresolved / mismatch	Only delivery promises and reported outcomes qualify; intentions and authorizations do not.
Review	Unresolved / mismatch	Both interpretations and the proposed match require explicit semantic review.
Canonical metric	Unresolved / mismatch	Canonical definition IDs must match; similar words or numeric values are insufficient.
Definition	Unresolved / mismatch	Promise: 'Ceiling of additional authorized Class A and C repurchases; not cash spent.'; outcome: 'Reported amount spent on Class A and Class C repurchases during the fiscal year.'. No automatic conversions or inferred basis.
Unit	Aligned	Promise: 'USD billion'; outcome: 'USD billion'. No automatic conversions or inferred basis.
Accounting basis	Unresolved / mismatch	Promise: 'board_authorization'; outcome: 'reported_repurchase_amount'. No automatic conversions or inferred basis.
Scope	Aligned	Promise: 'Alphabet consolidated'; outcome: 'Alphabet consolidated'. No automatic conversions or inferred basis.
Measurement basis	Unresolved / mismatch	Promise: 'authorization_ceiling'; outcome: 'period_total'. No automatic conversions or inferred basis.
Measurement period	Unresolved / mismatch	Both the start and end of the measurement period must match exactly.
Entity	Aligned	Comparison is at the company/entity level; this is not an individual performance assessment.
Chronology	Unresolved / mismatch	The promise must unambiguously precede completion; a retrospective result is not delivery.
Promise available	Unresolved / mismatch	First disclosure must be supported and fully on/before the assessment cutoff.
Outcome available	Unresolved / mismatch	First disclosure must be supported and fully on/before the assessment cutoff.
Reporting chronology	Unresolved / mismatch	An outcome must be disclosed after its measurement period and any asserted completion; earlier guidance is not a final result.
Period complete	Aligned	Partial periods cannot establish final delivery.
Numeric value	Aligned	A normalized target and a point outcome are required.
Approximation	Aligned	Approximately has no automatic tolerance; an explicit reviewed tolerance is required.
Conditions	Aligned	Conditional promises need a separate supported unconditional target before automatic comparison.
Contrary evidence	Aligned	Cited contrary evidence is unresolved; it must not be silently outvoted by a matching result.

Contrary evidence: None recorded

Full comparison record

{
  "match_id": "authorization-vs-repurchases",
  "promise_id": "april-2024-buyback-authorization",
  "outcome_id": "repurchases-fy2024",
  "rationale": "Retained rejected candidate: authorization ceiling and fiscal-year cash repurchases are different metrics and periods of decision activity.",
  "checks": [
    {
      "field": "entry_kind",
      "aligned": false,
      "rationale": "Only delivery promises and reported outcomes qualify; intentions and authorizations do not."
    },
    {
      "field": "review",
      "aligned": false,
      "rationale": "Both interpretations and the proposed match require explicit semantic review."
    },
    {
      "field": "canonical_metric",
      "aligned": false,
      "rationale": "Canonical definition IDs must match; similar words or numeric values are insufficient."
    },
    {
      "field": "definition",
      "aligned": false,
      "rationale": "Promise: 'Ceiling of additional authorized Class A and C repurchases; not cash spent.'; outcome: 'Reported amount spent on Class A and Class C repurchases during the fiscal year.'. No automatic conversions or inferred basis."
    },
    {
      "field": "unit",
      "aligned": true,
      "rationale": "Promise: 'USD billion'; outcome: 'USD billion'. No automatic conversions or inferred basis."
    },
    {
      "field": "accounting_basis",
      "aligned": false,
      "rationale": "Promise: 'board_authorization'; outcome: 'reported_repurchase_amount'. No automatic conversions or inferred basis."
    },
    {
      "field": "scope",
      "aligned": true,
      "rationale": "Promise: 'Alphabet consolidated'; outcome: 'Alphabet consolidated'. No automatic conversions or inferred basis."
    },
    {
      "field": "measurement_basis",
      "aligned": false,
      "rationale": "Promise: 'authorization_ceiling'; outcome: 'period_total'. No automatic conversions or inferred basis."
    },
    {
      "field": "measurement_period",
      "aligned": false,
      "rationale": "Both the start and end of the measurement period must match exactly."
    },
    {
      "field": "entity",
      "aligned": true,
      "rationale": "Comparison is at the company/entity level; this is not an individual performance assessment."
    },
    {
      "field": "chronology",
      "aligned": false,
      "rationale": "The promise must unambiguously precede completion; a retrospective result is not delivery."
    },
    {
      "field": "promise_available",
      "aligned": false,
      "rationale": "First disclosure must be supported and fully on/before the assessment cutoff."
    },
    {
      "field": "outcome_available",
      "aligned": false,
      "rationale": "First disclosure must be supported and fully on/before the assessment cutoff."
    },
    {
      "field": "reporting_chronology",
      "aligned": false,
      "rationale": "An outcome must be disclosed after its measurement period and any asserted completion; earlier guidance is not a final result."
    },
    {
      "field": "period_complete",
      "aligned": true,
      "rationale": "Partial periods cannot establish final delivery."
    },
    {
      "field": "numeric_value",
      "aligned": true,
      "rationale": "A normalized target and a point outcome are required."
    },
    {
      "field": "approximation",
      "aligned": true,
      "rationale": "Approximately has no automatic tolerance; an explicit reviewed tolerance is required."
    },
    {
      "field": "conditions",
      "aligned": true,
      "rationale": "Conditional promises need a separate supported unconditional target before automatic comparison."
    },
    {
      "field": "contrary_evidence",
      "aligned": true,
      "rationale": "Cited contrary evidence is unresolved; it must not be silently outvoted by a matching result."
    }
  ],
  "contrary_evidence_refs": [],
  "review_status": "proposed",
  "limitations": [
    "Included to document why this tempting association is not a delivery match."
  ],
  "status": "not_comparable",
  "variance": null,
  "elapsed_days": null
}

capex-2025-plan → capex-fy2025-outcome

Not comparable. Same company and fiscal year make this a candidate comparison, but the plan lacks an explicit accounting basis and approximate tolerance. The separately defined reported-spending metric is not silently made equivalent.

Gate	Result	Reason
Entry kind	Aligned	Only delivery promises and reported outcomes qualify; intentions and authorizations do not.
Review	Unresolved / mismatch	Both interpretations and the proposed match require explicit semantic review.
Canonical metric	Unresolved / mismatch	Canonical definition IDs must match; similar words or numeric values are insufficient.
Definition	Unresolved / mismatch	Promise: 'Capital expenditures in the CEO letter; cash versus accrual definition unresolved.'; outcome: 'Reported annual capital expenditure spending in the annual report narrative; rounded to USD billions.'. No automatic conversions or inferred basis.
Unit	Aligned	Promise: 'USD billion'; outcome: 'USD billion'. No automatic conversions or inferred basis.
Accounting basis	Unresolved / mismatch	Promise: None; outcome: 'reported_capex_spending'. No automatic conversions or inferred basis.
Scope	Aligned	Promise: 'Alphabet consolidated'; outcome: 'Alphabet consolidated'. No automatic conversions or inferred basis.
Measurement basis	Aligned	Promise: 'period_total'; outcome: 'period_total'. No automatic conversions or inferred basis.
Measurement period	Aligned	Both the start and end of the measurement period must match exactly.
Entity	Aligned	Comparison is at the company/entity level; this is not an individual performance assessment.
Chronology	Aligned	The promise must unambiguously precede completion; a retrospective result is not delivery.
Promise available	Unresolved / mismatch	First disclosure must be supported and fully on/before the assessment cutoff.
Outcome available	Unresolved / mismatch	First disclosure must be supported and fully on/before the assessment cutoff.
Reporting chronology	Unresolved / mismatch	An outcome must be disclosed after its measurement period and any asserted completion; earlier guidance is not a final result.
Period complete	Aligned	Partial periods cannot establish final delivery.
Numeric value	Aligned	A normalized target and a point outcome are required.
Approximation	Unresolved / mismatch	Approximately has no automatic tolerance; an explicit reviewed tolerance is required.
Conditions	Aligned	Conditional promises need a separate supported unconditional target before automatic comparison.
Contrary evidence	Aligned	Cited contrary evidence is unresolved; it must not be silently outvoted by a matching result.

Contrary evidence: None recorded

Full comparison record

{
  "match_id": "capex-2025-plan-vs-reported-spending",
  "promise_id": "capex-2025-plan",
  "outcome_id": "capex-fy2025-outcome",
  "rationale": "Same company and fiscal year make this a candidate comparison, but the plan lacks an explicit accounting basis and approximate tolerance. The separately defined reported-spending metric is not silently made equivalent.",
  "checks": [
    {
      "field": "entry_kind",
      "aligned": true,
      "rationale": "Only delivery promises and reported outcomes qualify; intentions and authorizations do not."
    },
    {
      "field": "review",
      "aligned": false,
      "rationale": "Both interpretations and the proposed match require explicit semantic review."
    },
    {
      "field": "canonical_metric",
      "aligned": false,
      "rationale": "Canonical definition IDs must match; similar words or numeric values are insufficient."
    },
    {
      "field": "definition",
      "aligned": false,
      "rationale": "Promise: 'Capital expenditures in the CEO letter; cash versus accrual definition unresolved.'; outcome: 'Reported annual capital expenditure spending in the annual report narrative; rounded to USD billions.'. No automatic conversions or inferred basis."
    },
    {
      "field": "unit",
      "aligned": true,
      "rationale": "Promise: 'USD billion'; outcome: 'USD billion'. No automatic conversions or inferred basis."
    },
    {
      "field": "accounting_basis",
      "aligned": false,
      "rationale": "Promise: None; outcome: 'reported_capex_spending'. No automatic conversions or inferred basis."
    },
    {
      "field": "scope",
      "aligned": true,
      "rationale": "Promise: 'Alphabet consolidated'; outcome: 'Alphabet consolidated'. No automatic conversions or inferred basis."
    },
    {
      "field": "measurement_basis",
      "aligned": true,
      "rationale": "Promise: 'period_total'; outcome: 'period_total'. No automatic conversions or inferred basis."
    },
    {
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      "aligned": true,
      "rationale": "Both the start and end of the measurement period must match exactly."
    },
    {
      "field": "entity",
      "aligned": true,
      "rationale": "Comparison is at the company/entity level; this is not an individual performance assessment."
    },
    {
      "field": "chronology",
      "aligned": true,
      "rationale": "The promise must unambiguously precede completion; a retrospective result is not delivery."
    },
    {
      "field": "promise_available",
      "aligned": false,
      "rationale": "First disclosure must be supported and fully on/before the assessment cutoff."
    },
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      "rationale": "First disclosure must be supported and fully on/before the assessment cutoff."
    },
    {
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      "aligned": false,
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    },
    {
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      "aligned": true,
      "rationale": "Partial periods cannot establish final delivery."
    },
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    },
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    },
    {
      "field": "conditions",
      "aligned": true,
      "rationale": "Conditional promises need a separate supported unconditional target before automatic comparison."
    },
    {
      "field": "contrary_evidence",
      "aligned": true,
      "rationale": "Cited contrary evidence is unresolved; it must not be silently outvoted by a matching result."
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  ],
  "contrary_evidence_refs": [],
  "review_status": "proposed",
  "limitations": [
    "Guidance revisions between the April letter and year end have not been reconstructed. More spending is not automatically better delivery or a good return."
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}

Original evidence

Raw summaries, classifications and mixed date fields are preserved below as extraction output, not endorsed interpretations. Full page context preserves table headers and source layout.

Google's backbone network spans more than 200 countries and territories and more than 2 million miles of cables.

alphabet2024:b331e5e88e13b3aa416e2543d60607f6db97ffae67113018027846b23179cf3d · reported_fact

Original source, physical page 3

Google’s unparalleled backbone network spans
more than 200 countries and territories connected
by more than 2 million miles of terrestrial and subsea
cables, creating a super resilient foundation for our
AI-powered future.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Snapshot: worker-0/inputs/3883bb4eb3ac25d782318d15c80865abbf20f9e30ca86e894dfb3c105305178c.text.json. Method: pdftotext reading-order. Snapshot SHA-256: 044f4dcc3703d6ac6d7558ccca04daba723fcceb161ca661da44bd905de070bd.

Full saved page including headers

A note from Sundar, April 2025
To our investors, 2024 marked a year of powerful
momentum for Google and Alphabet, fueled by our
AI-first strategy. We’re shipping new products faster
than ever, driving AI breakthroughs, and delivering AI’s
benefits to more people globally through our unique
full-stack approach — from foundational infrastructure,
to models and research, to products and platforms
serving billions of people and businesses.
World-class infrastructure
Google’s unparalleled backbone network spans
more than 200 countries and territories connected
by more than 2 million miles of terrestrial and subsea
cables, creating a super resilient foundation for our
AI-powered future. This network, which moves at
“Google speed” — near-zero latency — for billions
of users worldwide is now available to enterprises
everywhere through the Cloud Wide Area Network
(or Cloud WAN). We also make our Tensor Processing
Units, the same chips we used to train our most
capable AI models, available to businesses through
Google Cloud. Just a few weeks ago at Cloud Next,
we announced our 7th generation TPU: Ironwood.
It’s the most powerful chip we’ve ever built and will
enable the next frontier of AI models.
Leading AI research and models
Our leading research teams continue to advance
the field with our generative AI research papers,
cited three times more than any other company
or educational institution in the world. In 2024,
our research drove advances in the underlying
models, from breakthroughs in multimodality to
long-context understanding. Last December, we
launched Gemini 2.0 models, which show advances
in complex reasoning, native image output, and
agentic capabilities. And just last month, we took
another big leap, with Gemini 2.5 Pro, which pushes
the frontier of thinking. Our most intelligent AI model
yet, Gemini 2.5 Pro launched as the best model in the
world on tasks requiring advanced reasoning. It’s also
our most in-demand model, with an 80-percent-plus
increase in active users in Google AI Studio and the
Gemini API the month of release. All told, over four
million developers use our Gemini models, including
Gemma 3, our family of open models, showing high
performance even on a single H100 GPU.

Annual Report 2024

AnnualReport2024_Letter_0418.indd 1

AI-powered products
Gemini is now used across all of our 15 products, with
half a billion users — including Google Maps which
became our seventh product to reach 2 billion users
last year. Gemini enhances our core products and
creates entirely new experiences, too. In Search,
AI Overviews now reach 1 billion people; notably, users
engaging with AI Overviews return to Search for more
of their information needs. We’re excited about our
newest experiment, AI Mode, which is taking on even
more complicated queries with AI. We’re also building
novel experiences like Deep Research for Gemini app
users and NotebookLM, to help people delve even
deeper on topics they care about.

We’re excited about our newest experiment, AI Mode,

which is taking on even more complicated queries with AI.

Of course Gemini is not our only industry-leading
model. Veo 2 — which creates video with realistic
motion and high-quality output, up to 4K — is now the
leading video generation model, empowering creators
to bring their most vivid ideas to life. Our AI tools are
also helping people and organizations create, learn,
and get things done in ways they couldn’t a couple
of years ago — from brainstorming new ideas with
Gemini Live to quickly generating interactive web
app prototypes in Gemini app’s Canvas. With Project
Astra, now in the Gemini app in your phone, we’re
testing new ways to help you interact with the world
around you. You can ask Gemini about anything you
see. Share your screen or camera in Gemini Live to
brainstorm, troubleshoot, and more.
→

1

4/21/25 8:16 AM

Unchanged extraction record

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Gemini is reported as used across 15 products by half a billion users, while Google Maps became the seventh product to reach 2 billion users last year.

alphabet2024:49c1945a9a952c3255bcf822726b9c6ad4928ac3e72cd40eb48b5ee23b539848 · reported_fact

Original source, physical page 3

Gemini is now used across all of our 15 products, with
half a billion users — including Google Maps which
became our seventh product to reach 2 billion users
last year.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

A note from Sundar, April 2025
To our investors, 2024 marked a year of powerful
momentum for Google and Alphabet, fueled by our
AI-first strategy. We’re shipping new products faster
than ever, driving AI breakthroughs, and delivering AI’s
benefits to more people globally through our unique
full-stack approach — from foundational infrastructure,
to models and research, to products and platforms
serving billions of people and businesses.
World-class infrastructure
Google’s unparalleled backbone network spans
more than 200 countries and territories connected
by more than 2 million miles of terrestrial and subsea
cables, creating a super resilient foundation for our
AI-powered future. This network, which moves at
“Google speed” — near-zero latency — for billions
of users worldwide is now available to enterprises
everywhere through the Cloud Wide Area Network
(or Cloud WAN). We also make our Tensor Processing
Units, the same chips we used to train our most
capable AI models, available to businesses through
Google Cloud. Just a few weeks ago at Cloud Next,
we announced our 7th generation TPU: Ironwood.
It’s the most powerful chip we’ve ever built and will
enable the next frontier of AI models.
Leading AI research and models
Our leading research teams continue to advance
the field with our generative AI research papers,
cited three times more than any other company
or educational institution in the world. In 2024,
our research drove advances in the underlying
models, from breakthroughs in multimodality to
long-context understanding. Last December, we
launched Gemini 2.0 models, which show advances
in complex reasoning, native image output, and
agentic capabilities. And just last month, we took
another big leap, with Gemini 2.5 Pro, which pushes
the frontier of thinking. Our most intelligent AI model
yet, Gemini 2.5 Pro launched as the best model in the
world on tasks requiring advanced reasoning. It’s also
our most in-demand model, with an 80-percent-plus
increase in active users in Google AI Studio and the
Gemini API the month of release. All told, over four
million developers use our Gemini models, including
Gemma 3, our family of open models, showing high
performance even on a single H100 GPU.

Annual Report 2024

AnnualReport2024_Letter_0418.indd 1

AI-powered products
Gemini is now used across all of our 15 products, with
half a billion users — including Google Maps which
became our seventh product to reach 2 billion users
last year. Gemini enhances our core products and
creates entirely new experiences, too. In Search,
AI Overviews now reach 1 billion people; notably, users
engaging with AI Overviews return to Search for more
of their information needs. We’re excited about our
newest experiment, AI Mode, which is taking on even
more complicated queries with AI. We’re also building
novel experiences like Deep Research for Gemini app
users and NotebookLM, to help people delve even
deeper on topics they care about.

We’re excited about our newest experiment, AI Mode,

which is taking on even more complicated queries with AI.

Of course Gemini is not our only industry-leading
model. Veo 2 — which creates video with realistic
motion and high-quality output, up to 4K — is now the
leading video generation model, empowering creators
to bring their most vivid ideas to life. Our AI tools are
also helping people and organizations create, learn,
and get things done in ways they couldn’t a couple
of years ago — from brainstorming new ideas with
Gemini Live to quickly generating interactive web
app prototypes in Gemini app’s Canvas. With Project
Astra, now in the Gemini app in your phone, we’re
testing new ways to help you interact with the world
around you. You can ask Gemini about anything you
see. Share your screen or camera in Gemini Live to
brainstorm, troubleshoot, and more.
→

1

4/21/25 8:16 AM

Unchanged extraction record

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AI Overviews are reported to reach 1 billion people.

alphabet2024:4b9c1d33a8c4d5a063ef15ae2582875fb3484aba1783d0ea52ae379aadc7e075 · reported_fact

Original source, physical page 3

In Search,
AI Overviews now reach 1 billion people; notably, users
engaging with AI Overviews return to Search for more
of their information needs.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

A note from Sundar, April 2025
To our investors, 2024 marked a year of powerful
momentum for Google and Alphabet, fueled by our
AI-first strategy. We’re shipping new products faster
than ever, driving AI breakthroughs, and delivering AI’s
benefits to more people globally through our unique
full-stack approach — from foundational infrastructure,
to models and research, to products and platforms
serving billions of people and businesses.
World-class infrastructure
Google’s unparalleled backbone network spans
more than 200 countries and territories connected
by more than 2 million miles of terrestrial and subsea
cables, creating a super resilient foundation for our
AI-powered future. This network, which moves at
“Google speed” — near-zero latency — for billions
of users worldwide is now available to enterprises
everywhere through the Cloud Wide Area Network
(or Cloud WAN). We also make our Tensor Processing
Units, the same chips we used to train our most
capable AI models, available to businesses through
Google Cloud. Just a few weeks ago at Cloud Next,
we announced our 7th generation TPU: Ironwood.
It’s the most powerful chip we’ve ever built and will
enable the next frontier of AI models.
Leading AI research and models
Our leading research teams continue to advance
the field with our generative AI research papers,
cited three times more than any other company
or educational institution in the world. In 2024,
our research drove advances in the underlying
models, from breakthroughs in multimodality to
long-context understanding. Last December, we
launched Gemini 2.0 models, which show advances
in complex reasoning, native image output, and
agentic capabilities. And just last month, we took
another big leap, with Gemini 2.5 Pro, which pushes
the frontier of thinking. Our most intelligent AI model
yet, Gemini 2.5 Pro launched as the best model in the
world on tasks requiring advanced reasoning. It’s also
our most in-demand model, with an 80-percent-plus
increase in active users in Google AI Studio and the
Gemini API the month of release. All told, over four
million developers use our Gemini models, including
Gemma 3, our family of open models, showing high
performance even on a single H100 GPU.

Annual Report 2024

AnnualReport2024_Letter_0418.indd 1

AI-powered products
Gemini is now used across all of our 15 products, with
half a billion users — including Google Maps which
became our seventh product to reach 2 billion users
last year. Gemini enhances our core products and
creates entirely new experiences, too. In Search,
AI Overviews now reach 1 billion people; notably, users
engaging with AI Overviews return to Search for more
of their information needs. We’re excited about our
newest experiment, AI Mode, which is taking on even
more complicated queries with AI. We’re also building
novel experiences like Deep Research for Gemini app
users and NotebookLM, to help people delve even
deeper on topics they care about.

We’re excited about our newest experiment, AI Mode,

which is taking on even more complicated queries with AI.

Of course Gemini is not our only industry-leading
model. Veo 2 — which creates video with realistic
motion and high-quality output, up to 4K — is now the
leading video generation model, empowering creators
to bring their most vivid ideas to life. Our AI tools are
also helping people and organizations create, learn,
and get things done in ways they couldn’t a couple
of years ago — from brainstorming new ideas with
Gemini Live to quickly generating interactive web
app prototypes in Gemini app’s Canvas. With Project
Astra, now in the Gemini app in your phone, we’re
testing new ways to help you interact with the world
around you. You can ask Gemini about anything you
see. Share your screen or camera in Gemini Live to
brainstorm, troubleshoot, and more.
→

1

4/21/25 8:16 AM

Unchanged extraction record

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More than 4 million developers are reported to use Gemini models.

alphabet2024:e22d5c439143ee6882280906568cc2135766f32b213ef8db6fa63f485f99626d · reported_fact

Original source, physical page 3

All told, over four
million developers use our Gemini models, including
Gemma 3, our family of open models, showing high
performance even on a single H100 GPU.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

A note from Sundar, April 2025
To our investors, 2024 marked a year of powerful
momentum for Google and Alphabet, fueled by our
AI-first strategy. We’re shipping new products faster
than ever, driving AI breakthroughs, and delivering AI’s
benefits to more people globally through our unique
full-stack approach — from foundational infrastructure,
to models and research, to products and platforms
serving billions of people and businesses.
World-class infrastructure
Google’s unparalleled backbone network spans
more than 200 countries and territories connected
by more than 2 million miles of terrestrial and subsea
cables, creating a super resilient foundation for our
AI-powered future. This network, which moves at
“Google speed” — near-zero latency — for billions
of users worldwide is now available to enterprises
everywhere through the Cloud Wide Area Network
(or Cloud WAN). We also make our Tensor Processing
Units, the same chips we used to train our most
capable AI models, available to businesses through
Google Cloud. Just a few weeks ago at Cloud Next,
we announced our 7th generation TPU: Ironwood.
It’s the most powerful chip we’ve ever built and will
enable the next frontier of AI models.
Leading AI research and models
Our leading research teams continue to advance
the field with our generative AI research papers,
cited three times more than any other company
or educational institution in the world. In 2024,
our research drove advances in the underlying
models, from breakthroughs in multimodality to
long-context understanding. Last December, we
launched Gemini 2.0 models, which show advances
in complex reasoning, native image output, and
agentic capabilities. And just last month, we took
another big leap, with Gemini 2.5 Pro, which pushes
the frontier of thinking. Our most intelligent AI model
yet, Gemini 2.5 Pro launched as the best model in the
world on tasks requiring advanced reasoning. It’s also
our most in-demand model, with an 80-percent-plus
increase in active users in Google AI Studio and the
Gemini API the month of release. All told, over four
million developers use our Gemini models, including
Gemma 3, our family of open models, showing high
performance even on a single H100 GPU.

Annual Report 2024

AnnualReport2024_Letter_0418.indd 1

AI-powered products
Gemini is now used across all of our 15 products, with
half a billion users — including Google Maps which
became our seventh product to reach 2 billion users
last year. Gemini enhances our core products and
creates entirely new experiences, too. In Search,
AI Overviews now reach 1 billion people; notably, users
engaging with AI Overviews return to Search for more
of their information needs. We’re excited about our
newest experiment, AI Mode, which is taking on even
more complicated queries with AI. We’re also building
novel experiences like Deep Research for Gemini app
users and NotebookLM, to help people delve even
deeper on topics they care about.

We’re excited about our newest experiment, AI Mode,

which is taking on even more complicated queries with AI.

Of course Gemini is not our only industry-leading
model. Veo 2 — which creates video with realistic
motion and high-quality output, up to 4K — is now the
leading video generation model, empowering creators
to bring their most vivid ideas to life. Our AI tools are
also helping people and organizations create, learn,
and get things done in ways they couldn’t a couple
of years ago — from brainstorming new ideas with
Gemini Live to quickly generating interactive web
app prototypes in Gemini app’s Canvas. With Project
Astra, now in the Gemini app in your phone, we’re
testing new ways to help you interact with the world
around you. You can ask Gemini about anything you
see. Share your screen or camera in Gemini Live to
brainstorm, troubleshoot, and more.
→

1

4/21/25 8:16 AM

Unchanged extraction record

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Alphabet states a plan to invest approximately $75 billion in 2025 capital expenditures.

alphabet2024:ff3d0adb5b06f83a55198f15a27d69eb59337b0993331bf116d84b0261d1df78 · measurable_promise

Original source, physical page 4

That’s why we plan to invest approximately
$75 billion in 2025 in capital expenditures, launch
a first-ever project to power data centers using
small modular nuclear reactors, and expand training
through our $120 million AI Opportunity Fund.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Advancing science & society
2024 also saw important progress that is advancing
science and discovery. Demis Hassabis and John
Jumper from Google DeepMind received the Nobel
Prize for Chemistry for their work on AlphaFold,
a protein-folding breakthrough now being used by
2 million researchers around the world. We’ve made
new state-of-the-art weather forecasting models
available to researchers and businesses. And
our new FireSat initiative will use high-resolution
satellite imagery and AI to detect fires as small
as 5x5 meters, which will be a game changer for
fighting wildfires globally.

Demis Hassabis and John Jumper from Google DeepMind received

the Nobel Prize for Chemistry for their work on AlphaFold, a proteinfolding breakthrough now being used by 2 million researchers
around the world.

Investing in the future
Making AI helpful for everyone requires deeper
investments in infrastructure, job training, and clean
energy which can create jobs and opportunities for
people. That’s why we plan to invest approximately
$75 billion in 2025 in capital expenditures, launch
a first-ever project to power data centers using
small modular nuclear reactors, and expand training
through our $120 million AI Opportunity Fund.
Strong business momentum
We’ve seen strong momentum across the breadth
of our business over the past year. Take a look at
Search and our ads business: We already see more
than 5 trillion searches on Google annually, and with
AI, we’re continuing to expand the types of questions
that people can ask. AI Overviews have increased the
volume of commercial queries. And today people
shop more than a billion times a day across Google.
But the momentum goes well beyond Search:
YouTube Music and Premium have exceeded
125 million subscriptions, and YouTube hit 1 billion
monthly podcast users and is now the most-watched
streaming service in the U.S. Android remains the
world’s most popular operating system, with more
than 3 billion active devices worldwide. Collectively
Google One and YouTube have amassed over 200
million subscribers. Our new Pixel phones have super
advanced cameras, improved performance, and are
built with our AI tools deeply integrated. And Google
Cloud had one of the highest growth rates among
leading cloud providers last year. Meanwhile, Waymo
is now serving more than 200K paid rides a week
while expanding into new cities, and Calico, Wing,
and Isomorphic Labs continue to create new
opportunities in biotech, logistics, and more.
Thank you to our investors, partners, and employees
who have made this progress possible. 2025 is off
to an incredible start, and we’re excited for what’s
to come.

- Sundar

AnnualReport2024_Letter_0418.indd 2

4/21/25 8:16 AM

Unchanged extraction record

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Alphabet states a plan to launch a first-ever data center power project using small modular nuclear reactors.

alphabet2024:8b77eca9e036a291fe04b36b0c0f31019e3375cc231afb7b1000e522add72c25 · measurable_promise

Original source, physical page 4

That’s why we plan to invest approximately
$75 billion in 2025 in capital expenditures, launch
a first-ever project to power data centers using
small modular nuclear reactors, and expand training
through our $120 million AI Opportunity Fund.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Demis Hassabis and John Jumper from Google DeepMind received

the Nobel Prize for Chemistry for their work on AlphaFold, a proteinfolding breakthrough now being used by 2 million researchers
around the world.

- Sundar

AnnualReport2024_Letter_0418.indd 2

4/21/25 8:16 AM

Unchanged extraction record

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Alphabet states a plan to expand training through its $120 million AI Opportunity Fund.

alphabet2024:50eb88211f42259ff0a966df5fec479bf210796af339e0f9e1ecd7a16f4fa1ba · measurable_promise

Original source, physical page 4

That’s why we plan to invest approximately
$75 billion in 2025 in capital expenditures, launch
a first-ever project to power data centers using
small modular nuclear reactors, and expand training
through our $120 million AI Opportunity Fund.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Demis Hassabis and John Jumper from Google DeepMind received

the Nobel Prize for Chemistry for their work on AlphaFold, a proteinfolding breakthrough now being used by 2 million researchers
around the world.

- Sundar

AnnualReport2024_Letter_0418.indd 2

4/21/25 8:16 AM

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The note reports more than 125 million YouTube Music and Premium subscriptions, 1 billion monthly podcast users, more than 3 billion active Android devices, and over 200 million Google One and YouTube subscribers collectively.

alphabet2024:62f8bba6ab9b6491cd0b6ed6daaac4168e6dcbfe7f84fb230b523be4459fb4e0 · reported_fact

Original source, physical page 4

YouTube Music and Premium have exceeded
125 million subscriptions, and YouTube hit 1 billion
monthly podcast users and is now the most-watched
streaming service in the U.S. Android remains the
world’s most popular operating system, with more
than 3 billion active devices worldwide. Collectively
Google One and YouTube have amassed over 200
million subscribers.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Demis Hassabis and John Jumper from Google DeepMind received

the Nobel Prize for Chemistry for their work on AlphaFold, a proteinfolding breakthrough now being used by 2 million researchers
around the world.

- Sundar

AnnualReport2024_Letter_0418.indd 2

4/21/25 8:16 AM

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Waymo is reported to be serving more than 200,000 paid rides per week while expanding into new cities.

alphabet2024:6a5e2819207428c7342b63651e16006de887f62e16352d636233b285beedfb50 · reported_fact

Original source, physical page 4

Meanwhile, Waymo
is now serving more than 200K paid rides a week
while expanding into new cities, and Calico, Wing,
and Isomorphic Labs continue to create new
opportunities in biotech, logistics, and more.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Demis Hassabis and John Jumper from Google DeepMind received

the Nobel Prize for Chemistry for their work on AlphaFold, a proteinfolding breakthrough now being used by 2 million researchers
around the world.

- Sundar

AnnualReport2024_Letter_0418.indd 2

4/21/25 8:16 AM

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Alphabet reports more than $150 billion invested in research and development over the last five years.

alphabet2024:b88bc7f85c4e723cebaa4b0bccd3c7b83648060412991d86283961be918f5003 · reported_fact

Original source, physical page 9

We are continually innovating and building new products and
features to help our users, partners, customers, and communities and have invested more than $150 billion in research and
development in the last five years in support of these efforts.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Item 1. Business
Overview

As our founders Larry and Sergey wrote in the original founders’ letter, “Google is not a conventional company. We do not
intend to become one.” That unconventional spirit has been a driving force throughout our history, inspiring us to tackle big
problems and invest in moonshots. It led us to be a pioneer in the development of AI and, since 2016, an AI-first company.
We continue this work under the leadership of Alphabet and Google CEO, Sundar Pichai.
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Supporting these businesses, we
have centralized certain AI-related research and development which is reported in Alphabet-level activities. Alphabet’s
structure is about helping each of our businesses prosper through strong leaders and independence.

Access and Technology for Everyone

The Internet is one of the world’s most powerful equalizers; it propels ideas, people, and businesses large and small. Our
mission to organize the world’s information and make it universally accessible and useful is as relevant today as it was when
we were founded in 1998. Since then, we have evolved from a company that helps people find answers to a company that
also helps people get things done.
We are focused on building an even more helpful Google for everyone, and we aspire to give everyone the tools they
need to increase their knowledge, health, happiness, and success. Google Search helps people find information and
make sense of the world in more natural and intuitive ways, with trillions of searches on Google every year. YouTube
provides people with entertainment, information, and opportunities to learn something new and helps support the creator
economy through the YouTube Partner Program. Google Cloud helps customers solve today’s business challenges, improve
productivity, reduce costs, and unlock new growth engines. We are continually innovating and building new products and
features to help our users, partners, customers, and communities and have invested more than $150 billion in research and
development in the last five years in support of these efforts.

Making AI Helpful for Everyone

We believe AI is a profound platform shift, one that can bring meaningful and positive change to people and societies
across the world, and to our business. At Google, we have been bringing AI into our products and services for more than a
decade and making them available to our users.

In 2023, we took a significant step on our journey to make AI more helpful for everyone with the introduction of Gemini,
our natively multimodal AI model. In 2024, we launched Gemini 2.0, our most capable model yet. Gemini can generalize and
seamlessly understand, operate across, and combine different types of information including text, code, audio, image, and
video. Gemini is powering AI features across our products and services that are helping people everyday. Today, all seven of
our two billion-user products — Android, Chrome, Gmail, Maps, Play Store, Search, and YouTube — are using Gemini.
Our Google Cloud products, including Google Cloud Platform and Google Workspace, help organizations stay at the
forefront of innovation with our AI-optimized infrastructure, AI development platform, world-class models, as well as
assistive agents and applications.

We believe AI has the potential to solve important societal, scientific, and engineering challenges. For example, in 2020,
Google DeepMind’s AlphaFold system solved a 50-year-old protein folding challenge, and in 2024, we introduced
AlphaFold 3, built on the previous models, to predict the structure and interactions of all the molecules in life’s processes.

We are focused on transforming our products to provide the most helpful tools to our users and customers as we deliver on
our mission to organize the world’s information and make it universally accessible and useful.

Alphabet 2024 Annual Report

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Alphabet states an aim to build the most advanced, safe, and responsible AI.

alphabet2024:6954f00868fe67045f9db5bc4fb0fe98a24d0122376f3896757da7700c3d3075 · aspiration

Original source, physical page 10

We aim to build the most advanced, safe, and responsible AI through a full stack of robust AI-optimized infrastructure,
including data centers, chips, and a global fiber network; world class research teams; and a broad global reach through
products and platforms that touch billions of people and customers around the world.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Deliver the Most Advanced, Safe, and Responsible AI

We aim to build the most advanced, safe, and responsible AI through a full stack of robust AI-optimized infrastructure,
including data centers, chips, and a global fiber network; world class research teams; and a broad global reach through
products and platforms that touch billions of people and customers around the world.

We are driving efficiencies in our data centers, while making significant hardware and model improvements. For example,
since we started serving AI Overviews to our users, we have significantly lowered machine costs and latency through
hardware, engineering, and technical breakthroughs. Our AI-optimized infrastructure allows us to use, and offer our
customers, a range of AI accelerator options, including our own custom-built Tensor Processing Units (TPUs).

Our teams across Alphabet leverage Gemini, as well as other AI models we have previously developed and announced, to
deliver the best product and service experiences for our users, advertisers, partners, customers, and developers. We are
using Gemini 2.0 in new research prototypes, including Project Astra, which explores the future capabilities of a universal AI
assistant and Project Mariner, an early prototype capable of taking actions in Chrome as an experimental extension.
We believe our approach to AI must be both bold and responsible. That means developing AI in a way that maximizes the
positive benefits to society while addressing its potential challenges, guided by our AI Principles.

Enable Organizations and Developers to Innovate on Google Cloud

AI is a major technology shift for enterprises. Globally, businesses from startups to large enterprises, and the public sector
are thinking about how to drive transformation. That is why we are focused on making it easy and scalable for others to
innovate, and grow, with AI. That means providing advanced computing infrastructure and expanding access to Google’s
latest AI models. Our Vertex AI platform gives developers the ability to train, tune, augment, test, and deploy applications
using Gemini, Imagen, Veo, and other generative AI models. Gemini for Google Cloud provides pre-packaged AI agents
that can assist developers to write, document, test, and operate software as well as assist cybersecurity teams to analyze,
detect, protect, and respond to threats.

Improve Knowledge, Learning, Creativity, and Productivity

As AI continues to improve rapidly, we are focused on transforming our products to provide our users the most helpful
tools. Examples include AI Overviews, which allow users to ask their most complex questions, break down concepts in a
format that is useful for them, or take a video and ask a question out loud, and NotebookLM, which helps users understand
complex information by summarizing sources and providing relevant quotes. We are embedding the power of generative
AI to continue helping our users express themselves and get things done. For example, the Gemini app allows users to
collaborate with new AI features that include image generation capabilities, coding support, and app integration. Gemini for
Google Workspace helps users write, organize, visualize, accelerate workflows, and have richer meetings. Additionally, we
are using Gemini to improve recommendations on YouTube. We also know businesses of all sizes around the world rely on
Google Ads to find customers and grow their businesses — and we make that even easier with AI. For example, advertisers
are able to use our updated image generation in Google Ads to produce high-quality imagery for their campaigns, and
Demand Gen helps them reach their target audiences.

Build the Most Helpful Personal Computing Platforms and Devices

Over the years, our Pixel phones have incorporated AI compute directly into the device and built experiences on top of
it. Our latest Pixel devices were built with Gemini Nano, bringing the best AI-assistive experiences to our users, such as
Gemini on Pixel, Pixel Screenshots, and Pixel Studio. Our Android and Chrome operating systems enable users to access
Gemini, and other Google AI features throughout their day. For example, with Circle to Search built directly into the Android
experience, users can search anything they see on their phone using a simple gesture.

Moonshots

Many companies get comfortable doing what they have always done, making only incremental changes. This incrementalism
leads to irrelevance over time, especially in technology, where change tends to be revolutionary, not evolutionary.
Our acquisitions of YouTube and Android and subsequent launch of Chrome have matured into major platforms for digital
video and mobile devices and a safer, popular browser. In Other Bets, our fully autonomous driving technology company,
Waymo, is now providing fully autonomous, paid ride-hailing services to customers in multiple cities.
2

Alphabet 2024 Annual Report

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Alphabet states that its goal for Other Bets is to become thriving, successful businesses.

alphabet2024:1459f323fe5b647467f510879fa9b3c8926e1bc9f68cea6a1dc6ec8598699395 · aspiration

Original source, physical page 13

Our goal is for them to become thriving, successful businesses.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Other Bets

Across Alphabet, we are also using technology to try to solve big problems that affect a wide variety of industries,
including transportation and health technology. Alphabet’s investment in the portfolio of Other Bets includes businesses
that are at various stages of development, ranging from those in the R&D phase to those that are in the beginning
stages of commercialization. Our goal is for them to become thriving, successful businesses. Other Bets operate as
independent companies and some of them have their own boards with independent members and outside investors.
While these early-stage businesses naturally come with considerable uncertainty, some of them are already generating
revenue and making important strides in their industries. Revenues from Other Bets are generated primarily from the sale
of healthcare-related services, and internet services.

Competition

Our business is characterized by rapid change as well as new and disruptive technologies. We face formidable competition
in every aspect of our business, including but not limited to, from:
• general purpose search engines and information services;

• vertical search engines and e-commerce providers for queries on topics such as those related to travel, jobs, and health,
which users may navigate directly to rather than go through Google;
• online advertising platforms and networks, including online shopping and streaming services;

• other forms of advertising, such as billboards, magazines, newspapers, radio, and television as our advertisers typically
advertise in multiple media, both online and offline;
• digital content and application platform providers;
• providers of enterprise cloud services;

• developers and providers of AI products and services;

• companies that design, manufacture, and market consumer hardware products, including businesses that have
developed proprietary platforms;
• providers of digital video services;

• social networks, which users may rely on for product or service referrals, rather than seeking information through
traditional search engines;
• providers of workspace communication and connectivity products; and
• digital assistant providers.

Competing successfully depends heavily on our ability to develop and distribute innovative products and technologies
to the marketplace across our businesses. For example, for advertising, competing successfully depends on attracting
and retaining:
• users, for whom other products and services are literally one click away, largely on the basis of the relevance of our
advertising, as well as the general usefulness, security, and availability of our products and services;
• advertisers, primarily based on our ability to generate sales leads, and ultimately customers, and to deliver their
advertisements in an efficient and effective manner across a variety of distribution channels; and

• content providers, primarily based on the quality of our advertiser base, our ability to help these partners generate
revenues from advertising, and the terms of our agreements with them.
For additional information about competition, see Item 1A Risk Factors of this Annual Report on Form 10-K.

Ongoing Commitment to Sustainability

Our environmental strategy has two key pillars, supported by our dedication to accessible information and technological
innovation:
• Our products: We are empowering people with information about the environmental impacts of their choices.
• Our operations: We are working to drive sustainability and efficiency across our operations and value chain.

Through our products, we have an aspiration to help individuals, cities, and other partners collectively reduce one gigaton
of their carbon equivalent emissions annually by 2030.
Alphabet 2024 Annual Report

5

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Alphabet states an aspiration to help reduce one gigaton of carbon equivalent emissions annually by 2030 through its products.

alphabet2024:a1fd79c1a28ede20af106f4c008349530840eb6680b372c047859e0840d7d061 · aspiration

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Through our products, we have an aspiration to help individuals, cities, and other partners collectively reduce one gigaton
of their carbon equivalent emissions annually by 2030.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Other Bets

Across Alphabet, we are also using technology to try to solve big problems that affect a wide variety of industries,
including transportation and health technology. Alphabet’s investment in the portfolio of Other Bets includes businesses
that are at various stages of development, ranging from those in the R&D phase to those that are in the beginning
stages of commercialization. Our goal is for them to become thriving, successful businesses. Other Bets operate as
independent companies and some of them have their own boards with independent members and outside investors.
While these early-stage businesses naturally come with considerable uncertainty, some of them are already generating
revenue and making important strides in their industries. Revenues from Other Bets are generated primarily from the sale
of healthcare-related services, and internet services.

Competition

Our business is characterized by rapid change as well as new and disruptive technologies. We face formidable competition
in every aspect of our business, including but not limited to, from:
• general purpose search engines and information services;

• vertical search engines and e-commerce providers for queries on topics such as those related to travel, jobs, and health,
which users may navigate directly to rather than go through Google;
• online advertising platforms and networks, including online shopping and streaming services;

• other forms of advertising, such as billboards, magazines, newspapers, radio, and television as our advertisers typically
advertise in multiple media, both online and offline;
• digital content and application platform providers;
• providers of enterprise cloud services;

• developers and providers of AI products and services;

• companies that design, manufacture, and market consumer hardware products, including businesses that have
developed proprietary platforms;
• providers of digital video services;

• social networks, which users may rely on for product or service referrals, rather than seeking information through
traditional search engines;
• providers of workspace communication and connectivity products; and
• digital assistant providers.

Competing successfully depends heavily on our ability to develop and distribute innovative products and technologies
to the marketplace across our businesses. For example, for advertising, competing successfully depends on attracting
and retaining:
• users, for whom other products and services are literally one click away, largely on the basis of the relevance of our
advertising, as well as the general usefulness, security, and availability of our products and services;
• advertisers, primarily based on our ability to generate sales leads, and ultimately customers, and to deliver their
advertisements in an efficient and effective manner across a variety of distribution channels; and

• content providers, primarily based on the quality of our advertiser base, our ability to help these partners generate
revenues from advertising, and the terms of our agreements with them.
For additional information about competition, see Item 1A Risk Factors of this Annual Report on Form 10-K.

Ongoing Commitment to Sustainability

Our environmental strategy has two key pillars, supported by our dedication to accessible information and technological
innovation:
• Our products: We are empowering people with information about the environmental impacts of their choices.
• Our operations: We are working to drive sustainability and efficiency across our operations and value chain.

Through our products, we have an aspiration to help individuals, cities, and other partners collectively reduce one gigaton
of their carbon equivalent emissions annually by 2030.
Alphabet 2024 Annual Report

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Alphabet states a goal to reach net-zero emissions across its operations and value chain by 2030.

alphabet2024:2e582a1b33a605e53429cdc23259e6b20ba19483c92bb71ee1af2c5fea15dec3 · aspiration

Original source, physical page 14

In 2021, we set an ambitious goal to reach net-zero emissions across all of our operations and value chain by 2030.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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In 2021, we set an ambitious goal to reach net-zero emissions across all of our operations and value chain by 2030.
To make progress toward this effort, we aim to reduce 50% of our combined Scope 1, Scope 2 (market-based), and
Scope 3 absolute emissions (compared to our 2019 base year) by 2030, and we plan to invest in nature-based and
technology-based carbon removal solutions to neutralize our remaining emissions.

Our primary approach to reducing our Scope 2 emissions is through the procurement of carbon-free energy (CFE). In
2020, we set a goal to run on 24/7 CFE every hour of every day on every grid where we operate by 2030. In 2023, we began
implementing our carbon removals strategy, and we have begun establishing impactful partnerships and have started
contracting for carbon removal credits.
Achieving net-zero emissions and 24/7 CFE by 2030 are extremely ambitious goals. We also know that our path to net-zero
emissions will not be easy or linear. Some of our plans may take years to deliver results, particularly where they involve
building new large-scale infrastructure with long lead times. Our approach will continue to evolve and will require us to
navigate significant uncertainty, including the uncertainty around the future environmental impact of AI, which is complex
and difficult to predict. In addition, solutions for some key global challenges do not currently exist, and will depend
heavily on the development and improvement of new technologies by us and by the energy sector. As our business and
industry continue to evolve, we expect our total GHG emissions to rise before dropping toward our absolute emissions
reduction target.
For additional information about risks and uncertainties applicable to our work on sustainability and efficiency, see Item 1A
Risk Factors of this Annual Report on Form 10-K.

Culture and Workforce

We are a company of curious, talented, and passionate people. We embrace collaboration and creativity, and encourage
the iteration of ideas to address complex challenges in technology and society.

Our people are critical for our continued success, so we work hard to create an environment where employees can have
fulfilling careers, and be happy, healthy, and perform at a high level. We offer industry-leading benefits and programs
to take care of the diverse needs of our employees and their families, including opportunities for career growth and
development, resources to support their financial health, and access to excellent healthcare choices. Our competitive
compensation programs help us to attract and retain key talent, and we will continue to invest in recruiting talented people
to technical and non-technical roles, and rewarding them well. We provide a variety of high quality training and support to
managers to build and strengthen their capabilities-–ranging from courses for new managers, to learning resources that
help them provide feedback and manage performance, to coaching and individual support.
As of December 31, 2024, Alphabet had 183,323 employees. We have work councils and statutory employee representation
obligations in certain countries, and we are committed to supporting protected labor rights, maintaining an open culture,
and listening to all employees. Supporting healthy and open dialogue is central to how we work, and we communicate
information about the company through multiple internal channels to our employees.

When appropriate we partner with outside companies on a contractual basis to provide a specialized service or to
temporarily cover a short-term need. The employees of our suppliers and staffing partners — vendors and temporary staff,
respectively — and independent contractors who are self-employed, make up our extended workforce. We choose our
partners and staffing agencies carefully, and review their compliance with Google’s Supplier Code of Conduct.

Government Regulation

We are subject to numerous United States (U.S.) federal, state, and local, as well as foreign laws and regulations covering
a wide variety of subjects, and the scope of this coverage continues to broaden with continuing new legal and regulatory
developments in the U.S. and internationally. Like other companies in the technology industry, we face increasingly
heightened scrutiny from both U.S. and foreign governments with respect to our compliance with laws and regulations.
Many of these laws and regulations are evolving and their applicability and scope, as interpreted by the courts, remain
uncertain. Particularly with regard to AI; competition; consumer protection; content moderation; data privacy and security;
news publications; and sustainability and other social matters, we have seen an increase in new and evolving laws and
regulations, as well as related enforcement actions and investigations, being proposed and implemented in recent years
by legislative and regulatory bodies around the world. As we have seen in recent years, different laws and regulations on
the same topic may not always have the same requirements, and even when requirements overlap, the rules are not always
consistently implemented, interpreted, and enforced from jurisdiction to jurisdiction.
6

Alphabet 2024 Annual Report

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Alphabet states an aim to reduce combined Scope 1, Scope 2 market-based, and Scope 3 absolute emissions by 50% from the 2019 base year by 2030.

alphabet2024:a61c16253aa3f8fbe181b88d2d3d85899012def6a7946c6d1a69fc7f3b09ed40 · aspiration

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To make progress toward this effort, we aim to reduce 50% of our combined Scope 1, Scope 2 (market-based), and
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Alphabet states a goal to run on 24/7 carbon-free energy on every grid where it operates by 2030.

alphabet2024:95b651d0480bc3a85b1fd3f1e9229418e613080ff1f0e430c729d34e53cff71d · aspiration

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Alphabet expects total greenhouse gas emissions to rise before declining toward its absolute emissions reduction target.

alphabet2024:a8b657ab46265118613166aed99747228a51c9cc03b00eea6cee58be51fa2fcd · forecast

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Alphabet describes its net-zero and 24/7 CFE goals as extremely ambitious and says the path will not be easy or linear.

alphabet2024:825daa2a971b1ab019ceb3b4dfa1f379176e246f2fe872ad75b91767e3003710 · challenge

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Achieving net-zero emissions and 24/7 CFE by 2030 are extremely ambitious goals. We also know that our path to net-zero
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Alphabet reports 183,323 employees as of December 31, 2024.

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Alphabet reports that more than 75% of total revenues came from online advertising in 2024.

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We generated more than 75% of total revenues from online advertising in 2024.

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Our compliance with these laws and regulations may be onerous and could, individually or in the aggregate, increase our
cost of doing business, make our products and services less useful, limit our ability to pursue certain business practices
or offer certain products and services, cause us to change our business models and operations, affect our competitive
position relative to our peers, and/or otherwise harm our business, reputation, financial condition, and operating results.
For additional information about government regulation applicable to our business, see Item 1A Risk Factors; Trends in
Our Business and Financial Effect in Part II, Item 7; and Legal Matters in Note 10 of the Notes to Consolidated Financial
Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Intellectual Property

We rely on various intellectual property laws, confidentiality procedures and contractual provisions to protect our
proprietary technology and our brand. We have registered, and applied for the registration of, U.S. and international
trademarks, service marks, domain names, and copyrights. We have also filed patent applications in the U.S. and foreign
countries covering certain of our technology, and acquired patent assets to supplement our portfolio. We have licensed in
the past, and expect that we may license in the future, certain of our rights to other parties. For additional information, see
Item 1A Risk Factors of this Annual Report on Form 10-K.

Available Information

Our website is located at www.abc.xyz, and our investor relations website is located at www.abc.xyz/investor. Access to our
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our Proxy Statements,
and any amendments to these reports, is available on our investor relations website, free of charge, after we file or furnish
them with the SEC and they are available on the SEC’s website at www.sec.gov.

We webcast via our investor relations YouTube channel and website our earnings calls and certain events we participate
in or host with members of the investment community. Our investor relations website also provides notifications of
news or announcements regarding our financial performance and other items that may be material or of interest to our
investors, including SEC filings, investor events, press and earnings releases, and blogs. We also share Google news and
product updates on Google’s Keyword blog at https://www.blog.google/ and News From Google page on X at x.com/
NewsFromGoogle, and our executive officers may also use certain social media channels, such as X and LinkedIn, to
communicate information about earnings results and company updates, which may be of interest or material to our
investors. Further, corporate governance information, including our certificate of incorporation, bylaws, governance
guidelines, board committee charters, and code of conduct, is also available on our investor relations website under the
heading “Governance.” The information contained on, or that may be accessed through our websites or our executive
officers’ social media channels, is not incorporated by reference into this Annual Report on Form 10-K or in any other report
or document we file with the SEC, and any references to our websites are intended to be inactive textual references only.

Item 1A. Risk Factors

Our operations and financial results are subject to various risks and uncertainties, including but not limited to those
described below, which could harm our business, reputation, financial condition, and operating results, and affect the
trading price of our Class A and Class C stock.

Risks Specific to our Company

We generate a significant portion of our revenues from advertising. Reduced spending by advertisers,
a loss of partners, or new and existing technologies that block ads online and/or affect our ability to
personalize ads could harm our business.

We generated more than 75% of total revenues from online advertising in 2024. Many of our advertisers, companies that
distribute our products and services, digital publishers, and content providers can terminate their contracts with us at any
time. These partners may not continue to do business with us if we do not create more value (such as increased numbers
of users or customers, new sales leads, increased brand awareness, or more effective monetization) than their available
alternatives. Changes to our advertising policies and data privacy practices, such as our initiatives related to third-party
cookies, including our announcement in July 2024 to move from phasing out all third-party cookies to a proposed user
choice model (which remains subject to continuing discussions with regulators), as well as changes to other companies’
advertising and/or data privacy practices have in the past, and may in the future, affect the advertising services that we are
Alphabet 2024 Annual Report

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Alphabet reports that international revenues accounted for approximately 51% of consolidated revenues in 2024.

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International revenues accounted for approximately 51% of our consolidated revenues in 2024.

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Our international operations expose us to additional risks that could harm our business, reputation,
financial condition, and operating results.

Our international operations are significant to our revenues and net income, and we plan to continue to grow internationally.
International revenues accounted for approximately 51% of our consolidated revenues in 2024. In addition to risks
described elsewhere in this section, our international operations expose us to other risks, including the following:
• restrictions on foreign ownership and investments, and stringent foreign exchange controls that might prevent us from
repatriating cash earned in countries outside the U.S.;

• sanctions, import and export controls, other market access barriers, political unrest, geopolitical tensions, changes
in regimes, or armed conflict (such as ongoing conflicts in the Middle East and Ukraine), any of which may affect our
business continuity, increase our operating costs, limit demand for our products and services, limit our ability to source
components or final products, or prevent or impede us from operating in certain jurisdictions, complying with local laws,
or offering products or services;
• longer payment cycles in some countries, increased credit risk, and higher levels of payment fraud;

• an evolving foreign policy landscape that could harm our revenues and could subject us to litigation, new regulatory
costs and challenges (including new customer requirements), uncertainty regarding regulatory outcomes, and other
liabilities under local laws that may not offer due process or clear legal precedent;

• anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act, and other local laws prohibiting certain payments to
government officials, violations of which could result in civil and criminal penalties; and
• different employee/employer relationships; different labor laws, regulations, and labor practices; and other challenges
caused by distance, language, local expertise, and cultural differences, increasing the complexity of doing business in
multiple jurisdictions.

Because we conduct business in currencies other than U.S. dollars but report our financial results in U.S. dollars, we have
faced, and will continue to face, exposure to fluctuations in foreign currency exchange rates. Although we hedge a portion
of our international currency exposure, significant fluctuations in exchange rates between the U.S. dollar and foreign
currencies have in the past and may in the future adversely affect our revenues and earnings. Hedging programs are also
inherently risky and could expose us to additional risks that could harm our financial condition and operating results.

We are exposed to fluctuations in the fair values of our investments and, in some instances, our financial
statements incorporate inherently subjective valuation methodologies.

The fair value of our debt and equity investments may in the future be, and certain investments have been in the past,
negatively affected by liquidity, credit deterioration or losses, performance and financial results of the underlying entities,
foreign exchange rates, changes in interest rates, the effect of new or changing regulations, the stock market in general, or
other factors.
We measure certain of our non-marketable equity and debt securities, certain other instruments including stock-based
compensation awards settled in the stock of Other Bet companies, and certain assets and liabilities acquired in a business
combination, at fair value on a nonrecurring basis, which is inherently subjective and requires management judgment and
estimation. All gains and losses on non-marketable equity securities are recognized in OI&E, which increases the volatility
of our OI&E. The unrealized gains and losses or impairments we record from fair value remeasurements in any particular
period may differ significantly from the gains and losses we ultimately realize on such investments.
As a result of these factors, the value of our investments could decline, which could harm our financial condition and
operating results.

Risks Related to our Industry

People access our products and services through a variety of platforms and devices that continue to evolve
with the advancement of technology and user preferences. If manufacturers and users do not widely adopt
versions of our products and services developed for these interfaces, our business could be harmed.
People access our products and services through a growing variety of devices such as desktop computers, phones,
laptops and tablets, video game consoles, voice-activated speakers, wearables (including virtual reality and augmented
reality devices), automobiles, and television-streaming devices. Our products and services may be less popular on some
12

Alphabet 2024 Annual Report

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Alphabet identifies AI as highly competitive and rapidly evolving, requiring significant infrastructure, development, and operating investment.

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AI technology and services are highly competitive, rapidly evolving, and
require significant investment, including technical infrastructure, development and operational costs, to meet the changing
needs and expectations of our existing users and attract new users.

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able to provide. In addition, technologies have been developed that make personalized ads more difficult, or that block the
display of ads altogether, and some providers of online services have integrated technologies that could potentially impair
the availability and functionality of third-party digital advertising. Failing to provide superior value or deliver advertisements
effectively and competitively could harm our business, reputation, financial condition, and operating results.
In addition, expenditures by advertisers tend to correlate with overall economic conditions. Adverse macroeconomic
conditions have affected, and may in the future affect, the demand for advertising, resulting in fluctuations in the amounts
our advertisers spend on advertising, which could harm our financial condition and operating results.

We face intense competition. If we do not continue to innovate and provide products and services that
are useful to users, customers, and other partners, we may not remain competitive, which could harm our
business, financial condition, and operating results.

We are expanding our investment in AI across the entire company. This includes generative AI and continuing to integrate
AI capabilities into our products and services. AI technology and services are highly competitive, rapidly evolving, and
require significant investment, including technical infrastructure, development and operational costs, to meet the changing
needs and expectations of our existing users and attract new users. Our ability to deploy certain AI technologies critical
for our products and services and for our business strategy may depend on the availability and pricing of third-party
equipment and other technical infrastructure operations costs, including network capacity, energy, and equipment costs.
Additionally, other companies may develop AI products and technologies that are similar or superior to our technologies
or more cost-effective to develop and/or deploy. Other companies may also have (or in the future may obtain) patents
or other proprietary rights that would prevent, limit, or interfere with our ability to make, use, or sell our own AI products
and services.
Our financial condition and operating results may also suffer if our products and services are not responsive in a timely
manner to the evolving needs and desires of our users, advertisers, publishers, customers, and content providers, or if
we miscalculate those needs and desires and invest significantly in areas that fail to gain sufficient market traction. As
new and existing technologies continue to develop, competitors and new entrants may be able to offer experiences that
are, or that are perceived to be, substantially similar to or better than ours. These technologies could reduce usage of our
products and services, and force us to compete in different ways and expend significant resources to develop and operate
equal or better products and services. Competitors’ success in providing compelling products and services or in attracting
and retaining users, advertisers, publishers, customers, and content providers could harm our financial condition and
operating results.

Our ongoing investment in new businesses, products, services, and technologies is inherently risky, and
could divert management attention and harm our business, financial condition, and operating results.

We have invested and expect to continue to invest in new businesses, products, services, and technologies in a wide range
of industries beyond online advertising. The investments that we are making across our businesses, such as building AI
capabilities into new and existing products and services, reflect our ongoing efforts to innovate and provide products and
8

Alphabet 2024 Annual Report

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Alphabet identifies potential AI risks including harmful content, inaccuracies, discrimination, intellectual property issues, privacy, and cybersecurity.

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Our evolving AI-related efforts may give rise to risks related to harmful content, inaccuracies, discrimination, intellectual
property infringement or misappropriation, violation of rights of publicity, defamation, data privacy, cybersecurity, and
other issues.

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interfaces. Each manufacturer or distributor may establish unique technical standards for its devices, and our products and
services may not be available or may only be available with limited functionality for our users or our advertisers on these
devices as a result. Some manufacturers may also elect not to include our products on their devices.
It is hard to predict the challenges we may encounter in adapting our products and services and developing competitive
new products and services. We expect to continue to devote significant resources to creating and supporting products and
services across multiple platforms and devices. Failing to attract and retain a substantial number of device manufacturers,
suppliers, distributors, developers, and users, or failing to develop products and technologies that work well on new
devices and platforms, could harm our business, financial condition, and operating results and ability to capture future
business opportunities.

Issues in the development and use of AI may result in reputational harm and increased liability exposure.

Our evolving AI-related efforts may give rise to risks related to harmful content, inaccuracies, discrimination, intellectual
property infringement or misappropriation, violation of rights of publicity, defamation, data privacy, cybersecurity, and
other issues. As a result of these and other challenges associated with innovative technologies, our implementation of
AI systems could subject us to competitive harm, regulatory action, legal liability (including under new and proposed
legislation and regulations), new applications of existing data protection, privacy, intellectual property, and other laws, and
brand or reputational harm.
Some uses of AI will present ethical issues and may have broad effects on society. In order to implement AI responsibly
and minimize unintended harmful effects, we have already devoted and will continue to invest significant resources to
develop, test, and maintain our products and services, but we may not be able to identify or resolve all AI-related issues,
deficiencies, and/or failures before they arise. Unintended consequences, uses, or customization of our AI tools and
systems may negatively affect human rights, privacy, employment, or other social concerns, which may result in claims,
lawsuits, brand or reputational harm, and increased regulatory scrutiny, any of which could harm our business, financial
condition, and operating results.

Data privacy and security concerns relating to our technology and our practices could harm our
reputation, cause us to incur significant liability, and deter current and potential users or customers from
using our products and services. Computer viruses, software bugs or defects, security breaches, and
attacks on our systems could result in the improper disclosure and use of user data and interference with
our users’ and customers’ ability to use our products and services, harming our business and reputation.

Concerns about, including the adequacy of, our practices with regard to the collection, use, governance, disclosure, or
security of personal data or other data-privacy-related matters, even if unfounded, could harm our business, reputation,
financial condition, and operating results. Our policies and practices may change over time as expectations and regulations
regarding privacy and data change.
Our products and services involve the storage, handling, and transmission of proprietary and other sensitive information.
Malicious software such as viruses, software bugs, theft, misuse, defects, vulnerabilities in our products and services,
as well as cyber attacks, phishing schemes, and other types of security breaches expose us to a risk of loss or improper
use and disclosure of such information, which could result in litigation and other potential liabilities, including regulatory
fines and penalties, as well as reputational harm. Additionally, our products incorporate highly technical and complex
technologies, and thus our technologies and software have contained, and are likely in the future to contain, undetected
errors, bugs, and/or vulnerabilities. We continue to add new features involving AI to our offerings and internal systems, and
features that rely on AI may be susceptible to unanticipated security threats as our and the market’s understanding of AIcentric security risks and protection methods continue to develop. We have in the past discovered, and may in the future
discover, some errors in our software code only after we have released the code. Systems and control failures, security
breaches, failure to comply with our privacy policies, and/or inadvertent disclosure of user data could result in regulatory
and legal exposure, seriously harm our reputation, brand, and business, and impair our ability to attract and retain users
or customers. Such incidents have occurred in the past and may continue to occur due to the scale and nature of our
products and services. While there is no guarantee that such incidents will not cause significant damage, we expect to
continue to expend significant resources to maintain security protections that limit the effect of bugs, theft, misuse, and
security vulnerabilities or breaches.

Alphabet 2024 Annual Report

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Alphabet reports that it experiences cyber attacks and unauthorized access attempts regularly and expects future incidents or vulnerabilities.

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We experience cyber attacks and other attempts to gain unauthorized access to our systems on a regular basis.

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We experience cyber attacks and other attempts to gain unauthorized access to our systems on a regular basis. Cyber
attacks continue to evolve in sophistication and volume, and inherently may be difficult to detect for long periods of time.
For example, the development and implementation of AI technologies may further increase our exposure to or exacerbate
the risks of cyber attacks or other security incidents, particularly where such technologies are exploited by third parties to
breach our or other parties’ systems, including when such technologies are used to target our employees or impersonate
members of senior management in order to gain unauthorized access to our systems. We have also seen, and will continue
to see, industry-wide software supply chain vulnerabilities, which could affect our or other parties’ systems. We expect
to continue to experience such incidents or vulnerabilities in the future. Our efforts to prevent security incidents and
address undesirable activity on our platform may require us to spend additional resources to prepare and defend against
such threats, and could also increase the risk of retaliatory attack. In addition, we face the risk of cyber attacks by nationstates and state-sponsored actors. These attacks may target us or our customers, particularly our public sector customers
(including federal, state, and local governments). Geopolitical tensions or armed conflicts, such as the ongoing conflict in
the Middle East and Ukraine, may increase these risks.

We may experience security and/or privacy issues, whether due to employee or insider error or malfeasance, system
errors, or vulnerabilities in our or other parties’ systems. While we may not determine some of these issues to be material
at the time they occur and may remedy them quickly, there is no guarantee that these issues will not ultimately result
in significant legal, financial, and reputational harm, including government inquiries, enforcement actions, litigation, and
negative publicity. There is also no guarantee that a series of related issues may not be determined to be material at a later
date in the aggregate, even if they may not be material individually at the time of their occurrence. Because the techniques
used to obtain unauthorized access to, disable or degrade service provided by or otherwise sabotage systems change
frequently and often are recognized only after being launched against a target, even taking all reasonable precautions,
including those required by law, we have been unable in the past and may continue to be unable to anticipate or detect
attacks or vulnerabilities or implement adequate preventative measures.
Further, if any partners with whom we share user or other customer information fail to implement adequate data-security
practices, fail to comply with our terms and policies, or otherwise suffer a network or other security breach, our users’
data may be improperly accessed, used, or disclosed. If an actual or perceived breach of our or our business partners’ or
service providers’ security occurs, the market perception of the effectiveness of our security measures would be harmed,
we could lose users and customers, our trade secrets or those of our business partners may be compromised, and we may
be exposed to significant legal and financial risks, including legal claims (which may include class-action litigation) and
regulatory actions, fines, and penalties. Any of the foregoing consequences could harm our business, reputation, financial
condition, and operating results.
While we have dedicated significant resources to privacy and security incident response capabilities, including dedicated
worldwide incident response teams, our response process, particularly during times of a natural disaster or pandemic,
may not be adequate, may fail to accurately assess the severity of an incident, may not be fast enough to prevent or limit
harm, or may fail to sufficiently remediate an incident. As a result, we may suffer significant legal, reputational, or financial
exposure, which could harm our business, financial condition, and operating results.

For additional information, see also our risk factor on privacy and data protection regulations under ‘Risks Related to Laws,
Regulations, and Policies’ below.

Our ongoing investments in safety, security, and content review will likely continue to identify abuse of our
platforms and misuse of user data.
In addition to our efforts to prevent and mitigate cyber attacks, we are making significant investments in safety, security,
and review efforts to combat misuse of our services and unauthorized access to user data by third parties, including
investigation and review of platform applications that could access the information of users of our services. As a result
of these efforts, we have in the past discovered, and may in the future discover, incidents of unnecessary access to or
misuse of user data or other undesirable activity by third parties. However, we may not have discovered, and may in the
future not discover, all such incidents or activity, whether as a result of our data limitations, including our lack of visibility
over our encrypted services, the scale of activity on our platform, or other factors, including factors outside of our control
such as a natural disaster or pandemic, and we may learn of such incidents or activity via third parties. Such incidents
and activities may include the use of user data or our systems in a manner inconsistent with our terms, contracts or
policies, the existence of false or undesirable user accounts, election interference, improper ad purchases, activities that
threaten people’s safety on- or off-line, or instances of spamming, scraping, or spreading disinformation. While we may
not determine some of these incidents to be material at the time they occurred and we may remedy them quickly, there
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Alphabet reports that a U.S. District Court ruled in August 2024 that Google violated antitrust laws relating to Search and Search advertising.

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The Court is holding a separate proceeding to determine remedies, which could include
alterations to our products and services and our business models and operations, including structural remedies, and/or our
distribution arrangements, among other changes.

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In addition, the applicability and scope of these and other laws and regulations, as interpreted by courts, regulators, or
administrative bodies, remain uncertain and could be interpreted in ways that harm our business. For example, we rely on
statutory safe harbors, like those set forth in the Digital Millennium Copyright Act and Section 230 of the Communications
Decency Act in the U.S. and the Digital Services Act in Europe, to protect against liability for various linking, caching,
ranking, recommending, and hosting activities. Legislation or court rulings affecting these safe harbors may harm us
and may impose significant operational challenges. There are legislative proposals and pending litigation in the U.S.,
EU, and around the world that could diminish or eliminate safe harbor protection for websites and online platforms. Our
development, use, and commercialization of AI products and services (including our implementation of AI in our offerings
and internal systems) could subject us to regulatory action and legal liability, including under specific legislation regulating
AI, as well as new applications of existing data protection, cybersecurity, privacy, intellectual property, and other laws.

Further, we are subject to evolving laws, regulations, policies, and international accords relating to matters beyond our core
products and services, including environmental sustainability, climate change, human capital, and employment matters. In
response, we have implemented robust programs, adopted reporting frameworks and principles, and announced a number
of complex and ambitious goals and initiatives that may require considerable investments. We cannot guarantee that our
goals and initiatives will be fully realized on the timelines we expect or at all, and projects that are completed as planned
may not achieve the results we anticipate.

We are and may continue to be subject to claims, lawsuits, regulatory and government inquiries and
investigations, enforcement actions, consent orders, and other forms of regulatory scrutiny and legal
liability, including competition matters, that could harm our business, reputation, financial condition, and
operating results.

We are subject to claims, lawsuits, regulatory and government inquiries and investigations, other proceedings, and orders
involving competition, intellectual property, data privacy and security, tax and related compliance, labor and employment,
commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our
platforms, personal injury, and other matters.
The U.S. Department of Justice (DOJ), various U.S. states, and other plaintiffs have filed, and may continue to file in
the future, several antitrust lawsuits about various aspects of our business, including our advertising technologies and
practices, the operation and distribution of Google Search, and the operation and distribution of the Android operating
system and Play Store.

For example, the DOJ and a number of state Attorneys General filed a lawsuit alleging that Google violated antitrust laws
relating to Search and Search advertising, and in August 2024, the U.S. District Court for the District of Columbia ruled that
Google violated such antitrust laws. The Court is holding a separate proceeding to determine remedies, which could include
alterations to our products and services and our business models and operations, including structural remedies, and/or our
distribution arrangements, among other changes. While we plan to appeal, there can be no assurance that our appeal will
succeed, or that we will be able to change or decrease the severity of any remedies that may be ordered, and any or all of
these potential remedies could harm our business, reputation, financial condition, and operating results.
Also, in December 2023, a California jury delivered a verdict in Epic Games v. Google finding that Google violated antitrust
laws relating to Google Play’s business. The presiding judge issued a remedies decision in October 2024 that ordered a
variety of alterations to our business models and operations and contractual agreements for Android and Google Play.
We are appealing the verdict, but if we are unsuccessful, we could face significant expenses to implement the remedies,
and such costs and alterations could harm our business, reputation, financial condition, and operating results.

Furthermore, in December 2020, several State Attorneys General, led by the Texas Attorney General, filed an antitrust
lawsuit in the U.S. District Court for the Eastern District of Texas alleging that Google violated antitrust and other laws
relating to its advertising technology. This case is set for trial in March 2025, and we could face significant civil penalties.
In January 2023, the DOJ and several Attorneys General sued in the Eastern District of Virginia alleging similar antitrust
violations relating to Google’s advertising technology. Trial in the DOJ matter concluded in September 2024 with a
decision expected in early 2025. If we are unsuccessful, we could face an order on remedies that could harm our business,
reputation, financial condition, and operating results.
In addition to these regulatory proceedings, private individual and collective actions that overlap with claims pursued by
regulators are pending in the U.S. and in several other jurisdictions. Adverse results in these or similar future lawsuits may
include awards of monetary damages and remedies that could harm our business, reputation, financial condition, and
operating results.
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Alphabet states that it plans to appeal the antitrust ruling and that remedies could harm its business, reputation, financial condition, and operating results.

alphabet2024:3dae5cfaffa1971b82e4d5354b1a8af22a79e2f221282f3925620ca8f2d17ec3 · challenge

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While we plan to appeal, there can be no assurance that our appeal will
succeed, or that we will be able to change or decrease the severity of any remedies that may be ordered, and any or all of
these potential remedies could harm our business, reputation, financial condition, and operating results.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

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  "excerpt": "While we plan to appeal, there can be no assurance that our appeal will\nsucceed, or that we will be able to change or decrease the severity of any remedies that may be ordered, and any or all of\nthese potential remedies could harm our business, reputation, financial condition, and operating results.",
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Alphabet states that cybersecurity threats had not materially affected its business strategy, results of operations, or financial condition as of the report.

alphabet2024:015fded68a1f9ee3f9a67fc0d386dbd2dcb583d177307ea6ac49ad55ed3ebd5e · reported_fact

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Our business strategy, results of operations and financial condition have not been materially affected by risks from
cybersecurity threats, including as a result of previously identified cybersecurity incidents, but we cannot provide
assurance that they will not be materially affected in the future by such risks or any future material incidents.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Item 1B. Unresolved Staff Comments
Not applicable.

Item 1C. Cybersecurity

We maintain a comprehensive process for identifying, assessing, and managing material risks from cybersecurity threats
as part of our broader risk management system and processes. For example, some risks include our software supply
chain and other third-party dependencies, vulnerabilities in our products and services, theft of our intellectual property,
and attempts to compromise our infrastructure. We obtain input, as appropriate, for our cybersecurity risk management
program on the security industry and threat trends from multiple external experts and internal threat intelligence teams.
Teams of dedicated privacy, safety, and security professionals oversee cybersecurity risk management and mitigation,
incident prevention, detection, and remediation. These teams comprise professionals with deep cybersecurity expertise
across multiple industries and are led by our Vice President of Privacy, Safety, and Security Engineering, who has 20 years
of experience, including roles in technology infrastructure for two other large public companies. Our executive leadership
team, along with input from the above teams, are responsible for our overall enterprise risk management system and
processes and regularly consider cybersecurity risks in the context of other material risks to the company.

As part of our cybersecurity risk management system, our incident management teams track and log privacy and security
incidents across Alphabet, our vendors, and other third-party service providers to remediate and resolve any such
incidents. Significant incidents are reviewed regularly by a cross-functional working group to determine whether further
escalation is appropriate. Any incident assessed as potentially being or potentially becoming material is promptly escalated
for further assessment, and then reported to designated members of our senior management. We consult with outside
counsel as appropriate, including on materiality analysis and disclosure matters, and our senior management makes the
final materiality determinations and disclosure and other compliance decisions. Our management apprises Alphabet’s
independent public accounting firm of matters and any relevant developments.
The Audit and Compliance Committee has oversight responsibility for risks and incidents relating to cybersecurity threats,
including compliance with disclosure requirements, cooperation with law enforcement, and related effects on financial and
other risks, and it reports any findings and recommendations, as appropriate, to the full Board for consideration. Senior
management regularly discusses cyber risks and trends and, should they arise, any material incidents with the Audit and
Compliance Committee. Internal Audit maintains a dedicated cybersecurity auditing team that independently tests our
cybersecurity controls.
Our business strategy, results of operations and financial condition have not been materially affected by risks from
cybersecurity threats, including as a result of previously identified cybersecurity incidents, but we cannot provide
assurance that they will not be materially affected in the future by such risks or any future material incidents. For more
information on our cybersecurity related risks, see Item 1A Risk Factors of this Annual Report on Form 10-K.

Item 2. Properties

Our headquarters are located in Mountain View, California. We own and lease office facilities and data centers around the
world, primarily in Asia, Europe, and North America. We believe our existing facilities are in good condition and suitable for
the conduct of our business.

Item 3. Legal Proceedings

For a description of our material pending legal proceedings, see Legal Matters in Note 10 of the Notes to Consolidated
Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K, which is incorporated herein by
reference.

Item 4. Mine Safety Disclosures
Not applicable.

Alphabet 2024 Annual Report

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Alphabet states that it intends to pay quarterly cash dividends in the future, subject to Board review and approval.

alphabet2024:e0c80ab2dfce3ab56baaea1f62b78be8812a92bfd78d9d76a7de1575d849069b · measurable_promise

Original source, physical page 32

The company intends to pay quarterly cash dividends in the future,
subject to review and approval by the company’s Board of Directors in its sole discretion.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part II

Item 5. Market for Registrant’s Common Equity, Related
Stockholder Matters, and Issuer Purchases of Equity
Securities

As of October 2, 2015, Alphabet Inc. became the successor issuer of Google Inc. pursuant to Rule 12g-3(a) under the
Exchange Act. Our Class A stock has been listed on the Nasdaq Global Select Market under the symbol “GOOG” since
August 19, 2004, and under the symbol “GOOGL” since April 3, 2014. Prior to August 19, 2004, there was no public market
for our stock. Our Class B stock is neither listed nor traded. Our Class C stock has been listed on the Nasdaq Global Select
Market under the symbol “GOOG” since April 3, 2014.

Holders of Record

As of December 31, 2024, there were approximately 7,743 and 1,671 stockholders of record of our Class A stock and
Class C stock, respectively. Because many of our shares of Class A stock and Class C stock are held by brokers and other
institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these
record holders. As of December 31, 2024, there were approximately 57 stockholders of record of our Class B stock.

Dividend Program

Dividend payments to stockholders of Class A, Class B, and Class C shares were $3.5 billion, $519 million, and $3.3 billion,
respectively, for the year ended December 31, 2024. The company intends to pay quarterly cash dividends in the future,
subject to review and approval by the company’s Board of Directors in its sole discretion. We regularly evaluate our cash
and capital structure, including the size, pace, and form of capital return to stockholders.

Issuer Purchases of Equity Securities

The following table presents information with respect to Alphabet’s repurchases of Class A and Class C stock during the
quarter ended December 31, 2024:

Period

October 1 - 31

November 1 - 30
December 1 - 31

Total

(1)

(2)

Total Number
of Class A
Shares
Purchased
(in thousands)(1)

Total Number
of Class C
Shares
Purchased
(in thousands)(1)

4,325

22,450

5,792

3,559

13,676

30,080

19,572

72,102

Average Price
Average Price
Paid per
Paid per
Class A Share(2) Class C Share(2)
167.66

168.84

187.07

187.52

174.97

175.98

Total Number of
Approximate
Shares Purchased
Dollar Value of
as Part of Publicly
Shares that May
Announced
Yet Be Purchased
Programs Under the Program
(in thousands)(1)
(in millions)
35,872

53,699

23,131

44,704

26,775

85,778

49,023

Repurchases are being executed from time to time, subject to general business and market conditions and other investment
opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The
repurchase program does not have an expiration date. For additional information related to share repurchases, see Note 11 of the Notes
to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Average price paid per share includes costs associated with the repurchases.

Stock Performance Graphs

The graph below matches Alphabet Inc. Class A’s cumulative five-year total stockholder return on common stock with the
cumulative total returns of the S&P 500 index, the NASDAQ Composite index, and the RDG Internet Composite index. The
graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all
dividends) from December 31, 2019, to December 31, 2024. The returns shown are based on historical results and are not
intended to suggest future performance.
24

Alphabet 2024 Annual Report

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Alphabet reports 2024 dividend payments of $3.5 billion for Class A, $519 million for Class B, and $3.3 billion for Class C shares.

alphabet2024:8988e571dc421aed38c4f4d7448924b10a0e71ab7e079d490512538669a706fb · reported_fact

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Dividend payments to stockholders of Class A, Class B, and Class C shares were $3.5 billion, $519 million, and $3.3 billion,
respectively, for the year ended December 31, 2024.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part II

Item 5. Market for Registrant’s Common Equity, Related
Stockholder Matters, and Issuer Purchases of Equity
Securities

Holders of Record

Dividend Program

Issuer Purchases of Equity Securities

The following table presents information with respect to Alphabet’s repurchases of Class A and Class C stock during the
quarter ended December 31, 2024:

Period

October 1 - 31

November 1 - 30
December 1 - 31

Total

(1)

(2)

Total Number
of Class A
Shares
Purchased
(in thousands)(1)

Total Number
of Class C
Shares
Purchased
(in thousands)(1)

4,325

22,450

5,792

3,559

13,676

30,080

19,572

72,102

Average Price
Average Price
Paid per
Paid per
Class A Share(2) Class C Share(2)
167.66

168.84

187.07

187.52

174.97

175.98

Total Number of
Approximate
Shares Purchased
Dollar Value of
as Part of Publicly
Shares that May
Announced
Yet Be Purchased
Programs Under the Program
(in thousands)(1)
(in millions)
35,872

53,699

23,131

44,704

26,775

85,778

49,023

Average price paid per share includes costs associated with the repurchases.

Stock Performance Graphs

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Alphabet reported 2024 consolidated revenues of $350.0 billion, up 14% year over year, with Google Services and Google Cloud revenue increases identified as primary drivers.

alphabet2024:2e2718a0d44b173ad411b4700b28d48dc0798f8ec1206858079b6f5f39f185f1 · reported_fact

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Revenues were $350.0 billion, an increase of 14% year over year, primarily driven by an increase in Google Services
revenues of $32.4 billion, or 12%, and an increase in Google Cloud revenues of $10.1 billion, or 31%.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Provision for Income Taxes

Provision for income taxes represents the estimated amount of federal, state, and foreign income taxes incurred in the U.S.
and the many jurisdictions in which we operate. The provision includes the effect of reserve provisions and changes to
reserves that are considered appropriate as well as the related net interest and penalties.
For additional information, including a reconciliation of the U.S. federal statutory rate to our effective tax rate, see Note 14
of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Executive Overview

The following table summarizes our consolidated financial results (in millions, except for per share information and
percentages):
Year Ended December 31,
2023

2024

$ Change

% Change

Consolidated revenues

307,394

350,018

Cost of revenues

133,332

146,306

12,974

Operating income

84,293

112,390

28,097

33%

1,424

7,425

6,001

421%

5.80

8.04

2.24

39%

Change in consolidated constant currency revenues(1)
Operating expenses
Operating margin

Other income (expense), net

Diluted EPS

Net income
(1)
(2)

(2)

89,769

27%

73,795

91,322

32%

100,118

42,624

14%
15%
10%

1,553

26,323

See “Use of Non-GAAP Constant Currency Information” below for details relating to our use of constant currency information.

36%

For additional information on the calculation of diluted EPS, see Note 12 of the Notes to Consolidated Financial Statements included in
Item 8 of this Annual Report on Form 10-K.

• Revenues were $350.0 billion, an increase of 14% year over year, primarily driven by an increase in Google Services
revenues of $32.4 billion, or 12%, and an increase in Google Cloud revenues of $10.1 billion, or 31%.
• Total constant currency revenues, which exclude the effect of hedging, increased 15% year over year.

• Cost of revenues was $146.3 billion, an increase of 10% year over year, primarily driven by increases in content
acquisition costs, TAC, and depreciation expense.

• Operating expenses were $91.3 billion, an increase of 2% year over year, primarily driven by increases in depreciation
expense, employee compensation expenses, and third-party services fees. These increases were partially offset by
reductions in charges related to legal and other matters and charges related to our office space optimization efforts.
The overall increase in employee compensation expenses was partially offset by a reduction in employee severance and
related charges.

Other Information:

• Dividend payments to stockholders of Class A, Class B, and Class C shares, which were first paid in June 2024, were
$3.5 billion, $519 million, and $3.3 billion, respectively, totaling $7.4 billion for the year ended December 31, 2024. For
additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

• Repurchases of Class A and Class C shares were $11.9 billion and $50.2 billion, respectively, totaling $62.0 billion for the
year ended December 31, 2024. For additional information, see Note 11 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.

Alphabet 2024 Annual Report

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Alphabet reported 2024 operating income of $112.4 billion, operating margin of 32%, net income of $100.1 billion and diluted EPS of $8.04.

alphabet2024:22cac06c12be9fbada35cb3951145748fd323c16b7cd0f8eb9135152aa2cb597 · reported_fact

Original source, physical page 39

Operating income                                                 $       84,293       $        112,390   $        28,097                   33%
  Operating margin                                                              27%                  32%                                     5%
  Other income (expense), net                                      $         1,424      $          7,425   $         6,001               421%
  Net income                                                       $       73,795       $        100,118   $        26,323                   36%
  Diluted EPS   (2)
                                                                   $          5.80      $           8.04   $          2.24                   39%

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Part I                                      Part II                                   Part III                                 Part IV




Provision for Income Taxes
Provision for income taxes represents the estimated amount of federal, state, and foreign income taxes incurred in the U.S.
and the many jurisdictions in which we operate. The provision includes the effect of reserve provisions and changes to
reserves that are considered appropriate as well as the related net interest and penalties.

For additional information, including a reconciliation of the U.S. federal statutory rate to our effective tax rate, see Note 14
of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Executive Overview
The following table summarizes our consolidated financial results (in millions, except for per share information and
percentages):

                                                                       Year Ended December 31,

                                                                             2023                  2024          $ Change         % Change
  Consolidated revenues                                            $      307,394       $        350,018   $        42,624                   14%
  Change in consolidated constant currency revenues(1)                                                                                       15%
  Cost of revenues                                                 $      133,332       $        146,306   $        12,974                   10%
  Operating expenses                                               $       89,769       $         91,322   $         1,553                   2%
  Operating income                                                 $       84,293       $        112,390   $        28,097                   33%
  Operating margin                                                              27%                  32%                                     5%
  Other income (expense), net                                      $         1,424      $          7,425   $         6,001               421%
  Net income                                                       $       73,795       $        100,118   $        26,323                   36%
  Diluted EPS   (2)
                                                                   $          5.80      $           8.04   $          2.24                   39%
(1)
      See “Use of Non-GAAP Constant Currency Information” below for details relating to our use of constant currency information.
(2)
      For additional information on the calculation of diluted EPS, see Note 12 of the Notes to Consolidated Financial Statements included in
      Item 8 of this Annual Report on Form 10-K.

• Revenues were $350.0 billion, an increase of 14% year over year, primarily driven by an increase in Google Services
  revenues of $32.4 billion, or 12%, and an increase in Google Cloud revenues of $10.1 billion, or 31%.
• Total constant currency revenues, which exclude the effect of hedging, increased 15% year over year.
• Cost of revenues was $146.3 billion, an increase of 10% year over year, primarily driven by increases in content
  acquisition costs, TAC, and depreciation expense.
• Operating expenses were $91.3 billion, an increase of 2% year over year, primarily driven by increases in depreciation
  expense, employee compensation expenses, and third-party services fees. These increases were partially offset by
  reductions in charges related to legal and other matters and charges related to our office space optimization efforts.
  The overall increase in employee compensation expenses was partially offset by a reduction in employee severance and
  related charges.

Other Information:
• Dividend payments to stockholders of Class A, Class B, and Class C shares, which were first paid in June 2024, were
  $3.5 billion, $519 million, and $3.3 billion, respectively, totaling $7.4 billion for the year ended December 31, 2024. For
  additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
  Report on Form 10-K.
• Repurchases of Class A and Class C shares were $11.9 billion and $50.2 billion, respectively, totaling $62.0 billion for the
  year ended December 31, 2024. For additional information, see Note 11 of the Notes to Consolidated Financial Statements
  included in Item 8 of this Annual Report on Form 10-K.




                                                                                                               Alphabet 2024 Annual Report      31

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Alphabet reported 183,323 employees as of December 31, 2024.

alphabet2024:69df3ad746af89d969e39b5d5a1dd176cf76899dfea0f67e889e45810340ee37 · reported_fact

Original source, physical page 40

As of December 31, 2024, we had 183,323 employees.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

• Employee severance and related charges for the year ended December 31, 2024 were $1.0 billion, a decrease of
$1.1 billion as compared to the year ended December 31, 2023. Office space charges, including accelerated rent
and accelerated depreciation, for the year ended December 31, 2024 were $796 million, a decrease of $1.3 billion as
compared to the year ended December 31, 2023. Substantially all of these charges were included in Alphabet-level
activities.
• Operating cash flow was $125.3 billion for the year ended December 31, 2024.

• Capital expenditures, which primarily reflected investments in technical infrastructure, were $52.5 billion for the year
ended December 31, 2024.
• As of December 31, 2024, we had 183,323 employees.

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

31,510

Google Cloud

198,084
36,147
30,359

264,590

272,543

304,930

1,527

1,648

40,340

33,088

Other Bets

2024

237,855
34,688

Google Services total

Total revenues

175,033
31,312

Google advertising

Hedging gains (losses)

2023

236

307,394

43,229

211

350,018

Google Services

Google advertising revenues
Google Search & other

Google Search & other revenues increased $23.1 billion from 2023 to 2024. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

YouTube ads

YouTube ads revenues increased $4.6 billion from 2023 to 2024. The growth was driven by our brand advertising products
followed by our direct response advertising products, both of which benefited from increased spending by our advertisers.

Google Network

Google Network revenues decreased $953 million from 2023 to 2024, primarily driven by a decrease in Google Ad Manager
and AdMob revenues. Additionally, Google Network revenues were adversely affected by changes in foreign currency
exchange rates.

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Alphabet expects the continuing evolution of the online world to continue benefiting its business and revenues, but at a slower pace than historically.

alphabet2024:2adfcf15ea06bb86475a5b2cee31cc974e7b90eeb0eb3693669e3aeb52f47554 · forecast

Original source, physical page 34

We expect that this evolution will continue to benefit our business and our revenues, although at a slower pace
than we have experienced historically.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

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Part III

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Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with “Note
about Forward-Looking Statements,” Part I, Item 1 “Business,” Part I, Item 1A “Risk Factors,” and our consolidated financial
statements and related notes included under Item 8 of this Annual Report on Form 10-K.
The following section generally discusses 2024 results compared to 2023 results. Discussion of 2023 results compared to
2022 results to the extent not included in this report can be found in Item 7 of our 2023 Annual Report on Form 10-K.

Understanding Alphabet’s Financial Results

Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud; we also report all non-Google businesses collectively as Other Bets. For further details on our
segments, see Part I, Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of
this Annual Report on Form 10-K.

Trends in Our Business and Financial Effect

The following long-term trends have contributed to the results of our consolidated operations, and we anticipate that they
will continue to affect our future results:
• Users’ behaviors and advertising continue to shift online as the digital economy evolves.

The continuing evolution of the online world has contributed to the growth of our business and our revenues since
inception. We expect that this evolution will continue to benefit our business and our revenues, although at a slower pace
than we have experienced historically. In addition, we face increasing competition for user engagement and advertisers,
including from other developers and providers of AI products and services, which may affect our revenues.
• Users continue to access our products and services using diverse devices and modalities, which allows for new
advertising formats that may benefit our revenues but adversely affect our margins.

Our users are accessing our products and services via diverse devices and modalities beyond traditional desktop, such as
smartphones, wearables, connected TVs, and smart home devices, and want to be able to be connected no matter where
they are or what they are doing. We are focused on expanding our products and services to stay in front of these trends in
order to maintain and grow our business.
We benefit from advertising revenues generated from different channels, including mobile, and newer advertising formats.
The margins from these channels and newer products have generally been lower than those from traditional desktop
search. Additionally, as the market for a particular device type or modality matures, our advertising revenues may be
affected. For example, changing dynamics within the global smartphone market, such as increased market saturation in
developed countries, can affect our mobile advertising revenues.

We expect TAC paid to our distribution partners and Google Network partners to increase as our revenues grow and TAC
as a percentage of our advertising revenues (“TAC rate”) to be affected by changes in device mix; geographic mix; partner
agreement terms; partner mix; the percentage of queries channeled through paid access points; product mix; the relative
revenue growth rates of advertising revenues from different channels; and revenue share terms.
We expect these trends to continue to affect our revenues and put pressure on our margins.

• As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

As interactions between users and advertisers change, and as online user behavior evolves, for example with AI, we
continue to expand our product offerings to serve these changing needs, which may affect monetization of our products
and services. We expect to continue to incorporate AI innovations into our products, such as AI in Search, that could affect
our monetization trends. When developing new products and services we generally focus first on user experience and then
on monetization.

Alphabet 2024 Annual Report

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Alphabet identified increasing competition for user engagement and advertisers, including from developers and providers of AI products and services, as a factor that may affect revenues.

alphabet2024:8898f4df25daded9ce146e51cd70cabba930f79f8d528b31020d76af2cb28de2 · challenge

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In addition, we face increasing competition for user engagement and advertisers,
including from other developers and providers of AI products and services, which may affect our revenues.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
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Understanding Alphabet’s Financial Results

Trends in Our Business and Financial Effect

• As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet said it is focused on expanding products and services to keep pace with users accessing them across diverse devices and modalities and to maintain and grow the business.

alphabet2024:d026a27973204a822e639ca0eb7270260c6a99cf0ec38e55e2a2124c66f8e624 · aspiration

Original source, physical page 34

We are focused on expanding our products and services to stay in front of these trends in
order to maintain and grow our business.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
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Understanding Alphabet’s Financial Results

Trends in Our Business and Financial Effect

• As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet expects TAC paid to distribution and Google Network partners to increase as revenues grow, with the TAC rate affected by several mix and agreement factors.

alphabet2024:a2e5ecc6c16bfb5b50f0cf3401750257d64cffe2e31bf8dc5eed24a8a7405e00 · forecast

Original source, physical page 34

We expect TAC paid to our distribution partners and Google Network partners to increase as our revenues grow and TAC
as a percentage of our advertising revenues (“TAC rate”) to be affected by changes in device mix; geographic mix; partner
agreement terms; partner mix; the percentage of queries channeled through paid access points; product mix; the relative
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Full saved page including headers

Part I

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Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
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Understanding Alphabet’s Financial Results

Trends in Our Business and Financial Effect

• As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet said changing device and modality mix and newer advertising formats may benefit revenues but can adversely affect margins.

alphabet2024:a0980ab2b606f2e6379458a86ab772bfb534eba19d3599dc7370cd2bd43e7651 · challenge

Original source, physical page 34

Users continue to access our products and services using diverse devices and modalities, which allows for new
advertising formats that may benefit our revenues but adversely affect our margins.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
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Understanding Alphabet’s Financial Results

Trends in Our Business and Financial Effect

• As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet expects trends involving diverse devices and newer advertising channels to continue affecting revenues and putting pressure on margins.

alphabet2024:97f358ae515124a0ee22e336196e8624aaa6450a76d43782d213f3d1925cdea1 · forecast

Original source, physical page 34

We expect these trends to continue to affect our revenues and put pressure on our margins.

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Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
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Understanding Alphabet’s Financial Results

Trends in Our Business and Financial Effect

• As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet expects to continue incorporating AI innovations into products such as AI in Search, which could affect monetization trends.

alphabet2024:bbe4cb19e3f9cea4b58c8bc599b699270dff1733b80e7ef0eb6d434c34da890a · forecast

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Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Understanding Alphabet’s Financial Results

Trends in Our Business and Financial Effect

• As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet expects to increase, relative to 2024, investment in technical infrastructure, including servers, network equipment and data centers, particularly to support AI products and services.

alphabet2024:a2b0c9304f3e806ccde4121cd0c574d27cdd8c84db7da2c746b62e378ebd972d · forecast

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We expect to increase, relative to 2024, our investment in our technical infrastructure, including servers,
network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular
in support of AI products and services.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Liquidity and Material Cash Requirements

We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months, and thereafter for the foreseeable future.

Capital Expenditures and Leases

We make investments in land, buildings, and servers and network equipment through purchases of property and equipment
and lease arrangements to provide capacity for the growth of our services and products.

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

• technical infrastructure, which consists of our investments in servers and network equipment for computing,
storage, and networking requirements for ongoing business activities, including AI, and data center land and building
construction; and
• office facilities, ground-up development projects, and building improvements (also referred to as “fit-outs”).

Assets not yet in service are those that are not ready for our intended use, including assets in the process of construction
or assembly, and consists primarily of technical infrastructure. The time frame from date of purchase to placement in
service of these assets may extend from months to years. For example, our data center construction projects are generally
multi-year projects with multiple phases, where we acquire land and buildings, construct buildings, and secure and install
servers and network equipment.
During the years ended December 31, 2023 and 2024, we spent $32.3 billion and $52.5 billion on capital expenditures,
respectively. We expect to increase, relative to 2024, our investment in our technical infrastructure, including servers,
network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular
in support of AI products and services. Depreciation of our property and equipment commences when the deployment
of such assets are completed and are ready for our intended use. For the years ended December 31, 2023 and 2024, our
depreciation on property and equipment was $11.9 billion and $15.3 billion, respectively.

Leases

For the years ended December 31, 2023 and 2024, we recognized additional operating lease assets of $2.9 billion and
$2.5 billion, and additional finance lease assets of $564 million and $313 million, respectively. As of December 31, 2024,
the amount of total future lease payments under operating leases, which had a weighted average remaining lease term
of 7.8 years, was $17.0 billion, of which $3.2 billion is short-term, and total future lease payments under finance leases,
which had a weighted average remaining lease term of 10.4 years, was $1.9 billion, of which $257 million is short-term. As
of December 31, 2024, we have entered into leases that have not yet commenced with future short-term and long-term
lease payments of $773 million and $6.5 billion, respectively, that are not yet recorded on our Consolidated Balance Sheets.
These leases will commence between 2025 and 2028 with non-cancelable lease terms of one to 25 years.
For the years ended December 31, 2023 and 2024, our operating lease expenses (including variable lease costs) were
$4.5 billion and $4.7 billion, respectively. Finance lease costs were $504 million and $444 million for the years ended
December 31, 2023 and 2024, respectively. For additional information, see Note 4 of the Notes to Consolidated Financial
Statements included in Item 8 of this Annual Report on Form 10-K.

Financing

We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper. Net
proceeds from this program are used for general corporate purposes. As of December 31, 2024, we had $2.3 billion of
short-term commercial paper outstanding.
As of December 31, 2024, we had senior unsecured notes outstanding with a total carrying value of $11.9 billion with
short-term and long-term future interest payments of $197 million and $3.4 billion, respectively.

Alphabet 2024 Annual Report

39

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  "excerpt": "We expect to increase, relative to 2024, our investment in our technical infrastructure, including servers,\nnetwork equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular\nin support of AI products and services.",
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    "The amount and timing of the increase are not specified."
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Alphabet said regulatory and legal changes may increase costs, limit business practices or products, and require changes to business models and operations.

alphabet2024:30589cc081bcab9c0b5c589efd39321ac605eb623a4881db012b76b34ae62b3f · challenge

Original source, physical page 35

As these global trends continue, our cost of doing business may increase, our
products and services may become less useful, our ability to pursue certain business practices or offer certain products
or services may be limited, and we may need to change our business models and operations to comply with evolving
regulatory and legal matters.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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• As users in developing economies increasingly come online, our revenues from international markets continue
to increase, and may require continued investments. In addition, movements in foreign exchange rates affect
such revenues.

The shift to online, as well as the advent of the multi-device world, has brought opportunities outside of the U.S., including
in emerging markets, such as India. We continue to invest heavily and develop localized versions of our products and
advertising programs relevant to our users in these markets. This has led to a trend of increased revenues from emerging
markets. We expect that our results will continue to be affected by our performance in these markets, particularly as
low-cost mobile devices become more available. This trend could affect our revenues as developing markets initially
monetize at a lower rate than more mature markets.

International revenues represent a significant portion of our revenues and are subject to fluctuations in foreign currency
exchange rates relative to the U.S. dollar. While we have a foreign exchange risk management program designed to reduce
our exposure to these fluctuations, this program does not fully offset their effect on our revenues and earnings.
• The revenues that we derive beyond advertising are increasing and may adversely affect our margins.

Revenues from cloud, consumer subscriptions, platforms, and devices, which may have differing characteristics than our
advertising revenues, have grown over time, and we expect this trend to continue as we focus on expanding our products
and services. The margins on these revenues vary significantly and are generally lower than the margins on our advertising
revenues. For example, sales of our devices adversely affect our consolidated margins due to pressures on pricing and
higher cost of sales.
• As we continue to serve our users and expand our businesses, we will invest heavily in operating and capital
expenditures.

We continue to make significant research and development investments in areas of strategic focus as we seek to develop
new, innovative offerings, improve our existing offerings, and rapidly and responsibly deploy AI across our businesses.
We also expect to increase, relative to 2024, our investment in our technical infrastructure, including servers, network
equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support
of AI products and services. In addition, acquisitions and strategic investments remain important elements in our use of
capital and contribute to the breadth and depth of our offerings, expand our expertise in engineering and other functional
areas, and build strong partnerships around strategic initiatives.
• We continue to face an evolving regulatory environment, and we are subject to claims, lawsuits, investigations, and
other forms of potential legal liability, which could affect our business practices and financial results.

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of
topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and
caused us to change our business practices. As these global trends continue, our cost of doing business may increase, our
products and services may become less useful, our ability to pursue certain business practices or offer certain products
or services may be limited, and we may need to change our business models and operations to comply with evolving
regulatory and legal matters. For additional information, see Part I, Item 1A Risk Factors and Legal Matters in Note 10 of the
Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
• Our employees are critical to our success and we expect to continue investing in them.

Alphabet 2024 Annual Report

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  "excerpt": "As these global trends continue, our cost of doing business may increase, our\nproducts and services may become less useful, our ability to pursue certain business practices or offer certain products\nor services may be limited, and we may need to change our business models and operations to comply with evolving\nregulatory and legal matters.",
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Alphabet expects to continue hiring talented employees globally and providing competitive compensation programs.

alphabet2024:b09a16fd21a138653a2a316a825b01649832293415615dbb392c3d77f4691c85 · forecast

Original source, physical page 35

We expect to continue hiring talented
employees around the globe and to provide competitive compensation programs.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Alphabet 2024 Annual Report

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Alphabet reported 2024 Google subscriptions, platforms, and devices revenue increased by $5.7 billion, primarily driven by growth in paid YouTube subscribers followed by Google One.

alphabet2024:64f31ca036f412c3664dcbd4ce54b3fe0a36f0a38f5f93fc48e6439af5e868c2 · reported_fact

Original source, physical page 41

Google subscriptions, platforms, and devices revenues increased $5.7 billion from 2023 to 2024. The growth was primarily
driven by an increase in subscription revenues, largely from growth in the number of paid subscribers for YouTube services
followed by Google One.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click)
and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from 2023 to 2024:
Google Search & other
Paid clicks change

5%

Cost-per-click change

7%

Google Network

Impressions change

(11)%

Cost-per-impression change

10%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $5.7 billion from 2023 to 2024. The growth was primarily
driven by an increase in subscription revenues, largely from growth in the number of paid subscribers for YouTube services
followed by Google One.

Google Cloud

Google Cloud revenues increased $10.1 billion from 2023 to 2024 primarily driven by growth in Google Cloud Platform
largely from infrastructure services.

Revenues by Geography

The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of
our customers:
Year Ended December 31,
United States
EMEA
APAC

Other Americas

Hedging gains (losses)

2023

2024

30%

29%

47%
17%
6%
0%

49%
16%
6%
0%

For additional information, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Alphabet 2024 Annual Report

33

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Alphabet reported Google Cloud revenue increased by $10.1 billion from 2023 to 2024, primarily driven by Google Cloud Platform infrastructure services.

alphabet2024:ccd161b3f108e9b6764dde147ce00caba61280a454d643f968d14e45319fe42b · reported_fact

Original source, physical page 41

Google Cloud revenues increased $10.1 billion from 2023 to 2024 primarily driven by growth in Google Cloud Platform
largely from infrastructure services.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click)
and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from 2023 to 2024:
Google Search & other
Paid clicks change

5%

Cost-per-click change

7%

Google Network

Impressions change

(11)%

Cost-per-impression change

10%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $5.7 billion from 2023 to 2024. The growth was primarily
driven by an increase in subscription revenues, largely from growth in the number of paid subscribers for YouTube services
followed by Google One.

Google Cloud

Google Cloud revenues increased $10.1 billion from 2023 to 2024 primarily driven by growth in Google Cloud Platform
largely from infrastructure services.

Revenues by Geography

The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of
our customers:
Year Ended December 31,
United States
EMEA
APAC

Other Americas

Hedging gains (losses)

2023

2024

30%

29%

47%
17%
6%
0%

49%
16%
6%
0%

For additional information, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Alphabet 2024 Annual Report

33

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Alphabet reported 2024 monetization metric changes of 5% in Google Search and other paid clicks, 7% in cost-per-click, negative 11% in Google Network impressions, and 10% in cost-per-impression.

alphabet2024:7fb7b2be58502175a1195bb0694c821c4ed0c59409960470e1748ddc07c66b96 · reported_fact

Original source, physical page 41

Google Search & other
Paid clicks change

5%

Cost-per-click change

7%

Google Network

Impressions change

(11)%

Cost-per-impression change

10%

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click)
and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from 2023 to 2024:
Google Search & other
Paid clicks change

5%

Cost-per-click change

7%

Google Network

Impressions change

(11)%

Cost-per-impression change

10%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $5.7 billion from 2023 to 2024. The growth was primarily
driven by an increase in subscription revenues, largely from growth in the number of paid subscribers for YouTube services
followed by Google One.

Google Cloud

Google Cloud revenues increased $10.1 billion from 2023 to 2024 primarily driven by growth in Google Cloud Platform
largely from infrastructure services.

Revenues by Geography

The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of
our customers:
Year Ended December 31,
United States
EMEA
APAC

Other Americas

Hedging gains (losses)

2023

2024

30%

29%

47%
17%
6%
0%

49%
16%
6%
0%

For additional information, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Alphabet 2024 Annual Report

33

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Alphabet reported 2024 operating expenses of $91.3 billion, up 2% year over year, primarily due to depreciation, employee compensation and third-party services fees, partly offset by lower legal and office-space charges.

alphabet2024:30833f661b7dae38579632823de3dcab1213c5267a5f31d94f2312c6fab58862 · reported_fact

Original source, physical page 39

Operating expenses were $91.3 billion, an increase of 2% year over year, primarily driven by increases in depreciation
expense, employee compensation expenses, and third-party services fees. These increases were partially offset by
reductions in charges related to legal and other matters and charges related to our office space optimization efforts.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Provision for Income Taxes

Executive Overview

The following table summarizes our consolidated financial results (in millions, except for per share information and
percentages):
Year Ended December 31,
2023

2024

$ Change

% Change

Consolidated revenues

307,394

350,018

Cost of revenues

133,332

146,306

12,974

Operating income

84,293

112,390

28,097

33%

1,424

7,425

6,001

421%

5.80

8.04

2.24

39%

Change in consolidated constant currency revenues(1)
Operating expenses
Operating margin

Other income (expense), net

Diluted EPS

Net income
(1)
(2)

(2)

89,769

27%

73,795

91,322

32%

100,118

42,624

14%
15%
10%

1,553

26,323

See “Use of Non-GAAP Constant Currency Information” below for details relating to our use of constant currency information.

36%

For additional information on the calculation of diluted EPS, see Note 12 of the Notes to Consolidated Financial Statements included in
Item 8 of this Annual Report on Form 10-K.

• Cost of revenues was $146.3 billion, an increase of 10% year over year, primarily driven by increases in content
acquisition costs, TAC, and depreciation expense.

Other Information:

Alphabet 2024 Annual Report

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Alphabet reported Other Bets operating loss increased by $349 million from 2023 to 2024.

alphabet2024:ded7423db0f1c89e174434ba1411681d2bed75abc47a9958ca646ae208e29b17 · reported_fact

Original source, physical page 44

Other Bets operating loss increased $349 million from 2023 to 2024.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
General and administrative expenses

General and administrative expenses as a percentage of revenues

$

2023

16,425

5%

$

2024

14,188

4%

General and administrative expenses decreased $2.2 billion from 2023 to 2024, primarily driven by a reduction in charges
related to legal and other matters of $1.3 billion and a decrease in employee compensation expenses of $285 million, primarily
due to a decrease in average headcount, in addition to a combination of factors, none of which were individually significant.

Segment Profitability

We report our segment results as Google Services, Google Cloud, and Other Bets. Additionally, certain costs are not
allocated to our segments because they represent Alphabet-level activities. For further details on our segments, see Part I,
Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on
Form 10-K.
The following table presents segment operating income (loss) (in millions).

Year Ended December 31,
Operating income (loss):
Google Services
Google Cloud

2023

$

Other Bets

Alphabet-level activities(1)

Total income from operations

(1)

95,858
1,716

$

(4,095)
$

(9,186)

84,293

2024
121,263
6,112

(4,444)

$

(10,541)

112,390

In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $236 million and $211 million
in 2023 and 2024, respectively. For the years ended December 31, 2023 and 2024, Alphabet-level activities included substantially all of
the charges related to employee severance and our office space charges.

Google Services

Google Services operating income increased $25.4 billion from 2023 to 2024. The increase in operating income was
primarily driven by an increase in revenues, partially offset by increases in content acquisition costs and TAC. Additionally,
a reduction in employee compensation expenses contributed to the increase in operating income.

Google Cloud

Google Cloud operating income increased $4.4 billion from 2023 to 2024. The increase in operating income was primarily
driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure as well as
employee compensation expenses, largely driven by headcount growth.

Other Bets

Other Bets operating loss increased $349 million from 2023 to 2024. The increase in operating loss was primarily due
to an increase in expenses, largely driven by employee compensation expenses in addition to a combination of factors,
none of which were individually significant. The increase in employee compensation expenses was primarily as a result
of the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year
comparable period.

36

Alphabet 2024 Annual Report

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  "summary": "Alphabet reported Other Bets operating loss increased by $349 million from 2023 to 2024.",
  "excerpt": "Other Bets operating loss increased $349 million from 2023 to 2024.",
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  "target_date": "2024 compared with 2023",
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Alphabet reported $95.7 billion in cash, cash equivalents and short-term marketable securities as of December 31, 2024.

alphabet2024:789ffa98c4015c5a1d62ae8e68476b937b5f21269bcbf12fa8e920c802ae7255 · reported_fact

Original source, physical page 46

As of December 31, 2024, we had $95.7 billion in cash, cash equivalents, and short-term marketable securities.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part II

Part III

Part IV

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

As of December 31, 2024, we had $95.7 billion in cash, cash equivalents, and short-term marketable securities. Cash
equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government
bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.

Sources, Uses of Cash and Related Trends

Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow that we
generate from operations. The primary use of capital continues to be to invest for the long-term growth of the business. We
regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to stockholders.
The following table presents our cash flows (in millions):

Year Ended December 31,
2023

2024

Net cash provided by operating activities

101,746

125,299

Net cash used in financing activities

(72,093)

(79,733)

Net cash used in investing activities

(27,063)

(45,536)

Cash Provided by Operating Activities

Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, Google Network properties, and YouTube properties. In Google Services, we also generate cash through
consumer subscriptions, the sale of apps and in-app purchases, and devices. In Google Cloud, we generate cash through
consumption-based fees and subscriptions for infrastructure, platform, applications, and other cloud services.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners, to
employees for compensation, and to content providers. Other uses of cash from operating activities include payments to
suppliers for devices, to tax authorities for income taxes, and other general corporate expenditures.

Net cash provided by operating activities increased from 2023 to 2024 due to an increase in cash received from customers,
partially offset by an increase in cash payments for cost of revenues and operating expenses.

Cash Used in Investing Activities

Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and nonmarketable securities. Cash used in investing activities consists primarily of purchases of marketable and non-marketable
securities, purchases of property and equipment, and payments for acquisitions.

Net cash used in investing activities increased from 2023 to 2024 primarily due to an increase in purchases of property
and equipment and purchases of marketable securities, partially offset by increases in maturities and sales of marketable
securities. The increase in purchases of property and equipment is primarily driven by investments in technical infrastructure.

Cash Used in Financing Activities

Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of
interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net payments
related to stock-based award activities, payment of dividends, and repayments of debt.
Net cash used in financing activities increased from 2023 to 2024 due to dividend payments and net payments related to
stock-based award activities, partially offset by an increase in proceeds from issuance of debt, net of repayments.

Alphabet 2024 Annual Report

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Alphabet expects its existing liquidity, operating cash flows and financing activities to be sufficient to fund operating activities and cash commitments for at least the next 12 months and thereafter for the foreseeable future.

alphabet2024:722ff620cddb55d58718917840dd4d668a2f5fe9f1231280710e2c6370a6d75b · forecast

Original source, physical page 47

We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months, and thereafter for the foreseeable future.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

Part IV

Liquidity and Material Cash Requirements

We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months, and thereafter for the foreseeable future.

Capital Expenditures and Leases

We make investments in land, buildings, and servers and network equipment through purchases of property and equipment
and lease arrangements to provide capacity for the growth of our services and products.

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

• technical infrastructure, which consists of our investments in servers and network equipment for computing,
storage, and networking requirements for ongoing business activities, including AI, and data center land and building
construction; and
• office facilities, ground-up development projects, and building improvements (also referred to as “fit-outs”).

Assets not yet in service are those that are not ready for our intended use, including assets in the process of construction
or assembly, and consists primarily of technical infrastructure. The time frame from date of purchase to placement in
service of these assets may extend from months to years. For example, our data center construction projects are generally
multi-year projects with multiple phases, where we acquire land and buildings, construct buildings, and secure and install
servers and network equipment.
During the years ended December 31, 2023 and 2024, we spent $32.3 billion and $52.5 billion on capital expenditures,
respectively. We expect to increase, relative to 2024, our investment in our technical infrastructure, including servers,
network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular
in support of AI products and services. Depreciation of our property and equipment commences when the deployment
of such assets are completed and are ready for our intended use. For the years ended December 31, 2023 and 2024, our
depreciation on property and equipment was $11.9 billion and $15.3 billion, respectively.

Leases

For the years ended December 31, 2023 and 2024, we recognized additional operating lease assets of $2.9 billion and
$2.5 billion, and additional finance lease assets of $564 million and $313 million, respectively. As of December 31, 2024,
the amount of total future lease payments under operating leases, which had a weighted average remaining lease term
of 7.8 years, was $17.0 billion, of which $3.2 billion is short-term, and total future lease payments under finance leases,
which had a weighted average remaining lease term of 10.4 years, was $1.9 billion, of which $257 million is short-term. As
of December 31, 2024, we have entered into leases that have not yet commenced with future short-term and long-term
lease payments of $773 million and $6.5 billion, respectively, that are not yet recorded on our Consolidated Balance Sheets.
These leases will commence between 2025 and 2028 with non-cancelable lease terms of one to 25 years.
For the years ended December 31, 2023 and 2024, our operating lease expenses (including variable lease costs) were
$4.5 billion and $4.7 billion, respectively. Finance lease costs were $504 million and $444 million for the years ended
December 31, 2023 and 2024, respectively. For additional information, see Note 4 of the Notes to Consolidated Financial
Statements included in Item 8 of this Annual Report on Form 10-K.

Financing

We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper. Net
proceeds from this program are used for general corporate purposes. As of December 31, 2024, we had $2.3 billion of
short-term commercial paper outstanding.
As of December 31, 2024, we had senior unsecured notes outstanding with a total carrying value of $11.9 billion with
short-term and long-term future interest payments of $197 million and $3.4 billion, respectively.

Alphabet 2024 Annual Report

39

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Alphabet reported $93.2 billion of remaining performance obligations and expects to recognize approximately half as revenue over the next 24 months.

alphabet2024:d96907a61eb7ce124684302749213d592b4717da5bf667642fb9920ec0f5e21c · forecast

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As of December 31, 2024, we had $93.2 billion of remaining performance obligations (“revenue backlog”), primarily related
to Google Cloud. Revenue backlog represents commitments in customer contracts for future services that have not yet
been recognized as revenue. We expect to recognize approximately half of the revenue backlog as revenues over the
next 24 months with the remainder to be recognized thereafter.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Note 2. Revenues

Disaggregated Revenues

The following table presents revenues disaggregated by type (in millions):
Year Ended December 31,

Google Search & other

2022

$

YouTube ads

162,450

$

29,243

Google Network

2023

175,033
31,510

32,780

Google advertising

Google subscriptions, platforms, and devices

31,312

Google Cloud

Hedging gains (losses)
Total revenues

30,359

264,590

253,528

272,543

304,930

1,068

1,527

1,648

34,688

40,340

33,088

1,960

$

36,147

237,855

26,280

Other Bets

198,084

224,473
29,055

Google Services total

$

2024

282,836

43,229

236

$

307,394

$

211

350,018

No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2022, 2023, or 2024.
The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions):

United States

$

EMEA

(1)

APAC(1)

Other Americas

Total revenues

(1)

$

Year Ended December 31,

134,814

48%

47,024

16

82,062
16,976

(1)

Hedging gains (losses)

2022

1,960

282,836

29

$

6
1

100%

2023

146,286

47%

51,514

17

91,038
18,320

$

236

307,394

30

$

6
0

100%

2024

170,447

49%

56,815

16

102,127
20,418

$

211

350,018

29

6
0

100%

Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America ("Other Americas").

Revenue Backlog

As of December 31, 2024, we had $93.2 billion of remaining performance obligations (“revenue backlog”), primarily related
to Google Cloud. Revenue backlog represents commitments in customer contracts for future services that have not yet
been recognized as revenue. We expect to recognize approximately half of the revenue backlog as revenues over the
next 24 months with the remainder to be recognized thereafter. The estimated revenue backlog and timing of revenue
recognition for these commitments is largely driven by our ability to deliver in accordance with relevant contract terms
and when our customers utilize services. Revenue backlog includes related deferred revenue currently recorded as well as
amounts that will be invoiced in future periods, and excludes contracts with an original expected term of one year or less
and cancellable contracts.

Deferred Revenues

We record deferred revenues when cash payments are received or due in advance of our performance, including amounts
which are refundable. Deferred revenues primarily relate to Google Cloud and Google subscriptions, platforms, and
devices. Total deferred revenue as of December 31, 2023 was $5.0 billion, of which $3.9 billion was recognized as revenues
for the year ended December 31, 2024. Total deferred revenue as of December 31, 2024 was $6.0 billion.
62

Alphabet 2024 Annual Report

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Alphabet reported 2024 total share repurchases of $62.0 billion and 379 million shares repurchased and subsequently retired.

alphabet2024:64f0e8d2ef60bf3032e35c6be9157af485dd7d47b8b78db58bdd0d6bd2346393 · reported_fact

Original source, physical page 48

During 2024, we repurchased and subsequently retired 379 million shares for $62.0 billion.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

As of December 31, 2024, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2025 and $6.0 billion
expiring in April 2028. The interest rates for all credit facilities are determined based on a formula using certain market
rates, as well as our progress toward the achievement of certain sustainability goals. No amounts have been borrowed
under the credit facilities. For additional information, see Note 6 of the Notes to Consolidated Financial Statements included
in Item 8 of this Annual Report on Form 10-K.
We primarily utilize contract manufacturers for the assembly of our servers used in our technical infrastructure and
devices we sell. We have agreements where we may purchase components directly from suppliers and then supply these
components to contract manufacturers for use in the assembly of the servers and devices. Certain of these arrangements
result in a portion of the cash received from and paid to the contract manufacturers to be presented as financing activities
in the Consolidated Statements of Cash Flows included in Item 8 of this Annual Report on Form 10-K.

Share Repurchase Program

During 2024, we repurchased and subsequently retired 379 million shares for $62.0 billion.

In April 2024, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion
of its Class A and Class C shares. As of December 31, 2024, $44.7 billion remained available for Class A and Class C share
repurchases.
The following table presents Class A and Class C shares repurchased and subsequently retired (in millions):
Year Ended December 31, 2023
Class A share repurchases

Class C share repurchases
Total share repurchases(1)
(1)

Shares
78

528

450

Amount

9,316

52,868
62,184

Year Ended December 31, 2024
Shares
73

379

306

Amount

11,855
50,192
62,047

Shares repurchased include unsettled repurchases.

For additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Dividend Program

During the year ended December 31, 2024 total cash dividends, which were first paid in June 2024, were $3.5 billion, $519
million, and $3.3 billion for Class A, Class B, and Class C shares, respectively.

The company intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board
of Directors in its sole discretion.

European Commission Fines

In 2017, 2018, and 2019, the European Commission (EC) announced decisions that certain actions taken by Google infringed
European competition law and imposed fines of €2.4 billion ($2.7 billion as of June 27, 2017), €4.3 billion ($5.1 billion as of
June 30, 2018), and €1.5 billion ($1.7 billion as of March 20, 2019), respectively.
In September 2022, the General Court affirmed the EC decision but reduced the 2018 fine from €4.3 billion to €4.1 billion.
We subsequently appealed the General Court’s affirmation of the EC decision with the European Court of Justice, which
remains pending.

In September 2024, the European Court of Justice rejected our appeal of the 2017 decision and upheld the €2.4 billion fine.
In the third quarter of 2024, we made a cash payment of $3.0 billion for the 2017 shopping fine.
In September 2024, the EU’s General Court overturned the 2019 decision and annulled the €1.5 billion fine. The EC has
appealed the General Court’s decision to the European Court of Justice.

We included the outstanding EC fines, including any under appeal, in accrued expenses and other current liabilities on our
Consolidated Balance Sheets. For additional information, see Note 10 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.
40

Alphabet 2024 Annual Report

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Alphabet’s Board authorized up to an additional $70.0 billion for Class A and Class C share repurchases, with $44.7 billion remaining available as of December 31, 2024.

alphabet2024:a4063f76d0d0cb62885afdfc5654541f933150ed17f471b8443a899542cfc59e · reported_fact

Original source, physical page 48

In April 2024, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion
of its Class A and Class C shares. As of December 31, 2024, $44.7 billion remained available for Class A and Class C share
repurchases.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Share Repurchase Program

During 2024, we repurchased and subsequently retired 379 million shares for $62.0 billion.

Class C share repurchases
Total share repurchases(1)
(1)

Shares
78

528

450

Amount

9,316

52,868
62,184

Year Ended December 31, 2024
Shares
73

379

306

Amount

11,855
50,192
62,047

Shares repurchased include unsettled repurchases.

For additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Dividend Program

The company intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board
of Directors in its sole discretion.

European Commission Fines

Alphabet 2024 Annual Report

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Alphabet stated it intends to pay quarterly cash dividends in the future, subject to Board review and approval in its sole discretion.

alphabet2024:ecf2abd658078c7904b21d60bccb133508149f10f53a6601f23bb1e7e76d1f85 · measurable_promise

Original source, physical page 48

The company intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board
of Directors in its sole discretion.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Share Repurchase Program

During 2024, we repurchased and subsequently retired 379 million shares for $62.0 billion.

Class C share repurchases
Total share repurchases(1)
(1)

Shares
78

528

450

Amount

9,316

52,868
62,184

Year Ended December 31, 2024
Shares
73

379

306

Amount

11,855
50,192
62,047

Shares repurchased include unsettled repurchases.

For additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Dividend Program

The company intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board
of Directors in its sole discretion.

European Commission Fines

Alphabet 2024 Annual Report

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    "The amount and start date are not specified. Payment is expressly subject to Board review and approval."
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Alphabet reported that total cash dividends paid in 2024 were $7.4 billion and were first paid in June 2024.

alphabet2024:b7cdbafa3d0f5f0fcdd7da076849245f7a3641cb6ed0d8b6f66fc7ce2e4af6ff · reported_fact

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Dividend payments to stockholders of Class A, Class B, and Class C shares, which were first paid in June 2024, were
$3.5 billion, $519 million, and $3.3 billion, respectively, totaling $7.4 billion for the year ended December 31, 2024.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Provision for Income Taxes

Executive Overview

The following table summarizes our consolidated financial results (in millions, except for per share information and
percentages):
Year Ended December 31,
2023

2024

$ Change

% Change

Consolidated revenues

307,394

350,018

Cost of revenues

133,332

146,306

12,974

Operating income

84,293

112,390

28,097

33%

1,424

7,425

6,001

421%

5.80

8.04

2.24

39%

Change in consolidated constant currency revenues(1)
Operating expenses
Operating margin

Other income (expense), net

Diluted EPS

Net income
(1)
(2)

(2)

89,769

27%

73,795

91,322

32%

100,118

42,624

14%
15%
10%

1,553

26,323

See “Use of Non-GAAP Constant Currency Information” below for details relating to our use of constant currency information.

36%

For additional information on the calculation of diluted EPS, see Note 12 of the Notes to Consolidated Financial Statements included in
Item 8 of this Annual Report on Form 10-K.

• Cost of revenues was $146.3 billion, an increase of 10% year over year, primarily driven by increases in content
acquisition costs, TAC, and depreciation expense.

Other Information:

Alphabet 2024 Annual Report

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Alphabet reported $55.4 billion of material purchase commitments and other contractual obligations as of December 31, 2024, including $32.5 billion short-term.

alphabet2024:78463048eafdbde9e5e68330561cc75142b42141a719168da6935deeb3646a6d · reported_fact

Original source, physical page 49

As of December 31, 2024, we had material purchase commitments and other contractual obligations of $55.4 billion, of which
$32.5 billion was short-term.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Taxes

As of December 31, 2024, we had income taxes payable of $2.7 billion related to a one-time transition tax payable incurred
as a result of the U.S. Tax Cuts and Jobs Act, which is due in 2025. We also had long-term taxes payable of $8.8 billion
primarily related to uncertain tax positions as of December 31, 2024.

Purchase Commitments and Other Contractual Obligations

As of December 31, 2024, we had material purchase commitments and other contractual obligations of $55.4 billion, of which
$32.5 billion was short-term. These amounts primarily consist of purchase orders for certain technical infrastructure as well
as the non-cancelable portion or the minimum cancellation fee in certain agreements related to commitments to purchase
licenses, including content licenses, inventory, and network capacity. For those agreements with variable terms, we do not
estimate the non-cancelable obligation beyond any minimum quantities and/or pricing as of December 31, 2024. In certain
instances, the amount of our contractual obligations may change based on the expected timing of order fulfillment from our
suppliers. For more information related to our content licenses, see Note 10 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.
In addition, we regularly enter into multi-year, non-cancellable agreements to purchase renewable energy and energy
attributes, such as renewable energy certificates. These agreements do not include a minimum dollar commitment.
The amounts to be paid under these agreements are based on the actual volumes to be generated and are not
readily determinable.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make estimates
and assumptions. Our critical accounting estimates are those estimates that involve a significant level of uncertainty at
the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our
financial condition or results of operations. Accordingly, actual results could differ materially from our estimates. We base
our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and
we evaluate these estimates on an ongoing basis. We have reviewed our critical accounting estimates with the Audit and
Compliance Committee of our Board of Directors.
For a summary of significant accounting policies and the effect on our financial statements, see Note 1 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Fair Value Measurements of Non-Marketable Equity Securities

We measure certain financial instruments at fair value on a nonrecurring basis, consisting primarily of our non-marketable
equity securities. These investments are accounted for under the measurement alternative method (“the measurement
alternative”) and are measured at cost, less impairment, subject to upward and downward adjustments resulting from
observable price changes for identical or similar investments of the same issuer. These adjustments require quantitative
assessments of the fair value of our securities, which may require the use of unobservable inputs. Adjustments are
determined primarily based on a market approach as of the transaction date and involve the use of estimates using the
best information available, which may include cash flow projections or other available market data.

Non-marketable equity securities are also evaluated for impairment, based on qualitative factors including the companies’
financial and liquidity position and access to capital resources, among others. When indicators of impairment exist, we
prepare quantitative measurements of the fair value of our equity investments using a market approach or an income
approach, which requires judgment and the use of unobservable inputs, including discount rates, investee revenues and
costs, and comparable market data of private and public companies, among others. When the quantitative remeasurements
of fair value indicate an impairment exists, we write down the investment to its current fair value.
We also have compensation arrangements with payouts based on realized returns from certain investments, i.e.
performance fees. We record compensation expense based on the estimated payouts on an ongoing basis, which may
result in expense recognized before investment returns are realized and compensation is paid and may require the use of
unobservable inputs.

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Alphabet identified legal and regulatory matters as potentially exposing it to losses beyond recorded amounts, which could be material.

alphabet2024:eddac7c3af94ff8aced89841bdd359f60809caa67faa53e4ab571fbac7460c82 · challenge

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Until the final resolution of such matters, there may be an exposure to loss in excess of the amount
recorded, and such amounts could be material.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Property and Equipment

We assess the reasonableness of the useful lives of our property and equipment periodically as well as when other
changes occur, such as when there are changes to ongoing business operations, changes in the planned use and utilization
of assets, or technological advancements, that could indicate a change in the period over which we expect to benefit from
the asset.

Income Taxes

We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating our
uncertain tax positions and determining our provision for income taxes.

Recording an uncertain tax position involves various qualitative considerations, including evaluation of comparable
and resolved tax exposures, applicability of tax laws, and likelihood of settlement. We evaluate uncertain tax positions
periodically, considering changes in facts and circumstances, such as new regulations or recent judicial opinions, as well
as the status of audit activities by taxing authorities. Although we believe we have adequately reserved for our uncertain
tax positions, no assurance can be given that the final tax outcome of these matters will not be different. To the extent that
the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for
income taxes and the effective tax rate in the period in which such determination is made.
The provision for income taxes includes the effect of reserve provisions and changes to reserves as well as the related net
interest and penalties. In addition, we are subject to the continuous examination of our income tax returns by the IRS and
other tax authorities which may assert assessments against us. We regularly assess the likelihood of adverse outcomes
resulting from these examinations and assessments to determine the adequacy of our provision for income taxes.

Loss Contingencies

We evaluate, on a regular basis, developments in our legal matters that could affect the amount of liability that has been
previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments and changes
to our disclosures. Significant judgment is required to determine both the likelihood and the estimated amount of a loss
related to such matters. Until the final resolution of such matters, there may be an exposure to loss in excess of the amount
recorded, and such amounts could be material.

Item 7A. Quantitative and Qualitative Disclosures About
Market Risk

We are exposed to financial market risks, including changes in foreign currency exchange rates, interest rates, and equity
investment risks.

Foreign Currency Exchange Risk

Alphabet 2024 Annual Report

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Alphabet identified foreign currency, interest rate and equity investment risks as financial market risks.

alphabet2024:c6a38eb200a9b1d1bb87b95348df3a7ea211a300f67e06ba46face36abf7d212 · challenge

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We are exposed to financial market risks, including changes in foreign currency exchange rates, interest rates, and equity
investment risks.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Property and Equipment

Income Taxes

We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating our
uncertain tax positions and determining our provision for income taxes.

Loss Contingencies

Item 7A. Quantitative and Qualitative Disclosures About
Market Risk

We are exposed to financial market risks, including changes in foreign currency exchange rates, interest rates, and equity
investment risks.

Foreign Currency Exchange Risk

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Alphabet reported that a hypothetical adverse 10% foreign currency exchange rate change would have had an adverse effect on 2024 pretax income of approximately $135 million after considering foreign exchange contracts.

alphabet2024:2d1e70a67766d4dc12b6b2badec2de46cf80401e6583ec65346355ce6a776127 · reported_fact

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If an adverse 10% foreign currency exchange rate change was applied to net monetary assets, liabilities, and commitments
denominated in currencies other than the functional currencies at the balance sheet date, it would have resulted in an
adverse effect on income before income taxes of approximately $503 million and $135 million as of December 31, 2023
and 2024, respectively, after consideration of the effect of foreign exchange contracts in place for the years ended
December 31, 2023 and 2024.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

We use foreign currency forward and option contracts to offset the foreign exchange risk on monetary assets and liabilities
denominated in currencies other than the functional currency of the subsidiary. These forward and option contracts
reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on our assets and liabilities.
The foreign currency gains and losses on these assets and liabilities are recorded in OI&E, which are offset by the gains
and losses on the forward and option contracts.
If an adverse 10% foreign currency exchange rate change was applied to net monetary assets, liabilities, and commitments
denominated in currencies other than the functional currencies at the balance sheet date, it would have resulted in an
adverse effect on income before income taxes of approximately $503 million and $135 million as of December 31, 2023
and 2024, respectively, after consideration of the effect of foreign exchange contracts in place for the years ended
December 31, 2023 and 2024.
We use foreign currency forward and option contracts, including collars (an option strategy comprised of a combination
of purchased and written options) to protect forecasted U.S. dollar-equivalent earnings from changes in foreign currency
exchange rates. When the U.S. dollar strengthens, gains from foreign currency forward and option contacts reduce the
foreign currency losses related to our earnings. When the U.S. dollar weakens, losses from foreign currency forward and
option contracts offset the foreign currency gains related to our earnings. These hedging contracts reduce, but do not
entirely eliminate, the effect of foreign currency exchange rate movements. We designate these contracts as cash flow
hedges for accounting purposes. We reflect the gains and losses of foreign currency spot rate changes as a component
of accumulated other comprehensive income (AOCI) and subsequently reclassify them into revenues to offset the hedged
exposures as they occur.

If the U.S. dollar weakened by 10% as of December 31, 2023 and 2024, the amount recorded in AOCI related to our cash
flow hedges before tax effect would have been approximately $1.5 billion and $1.6 billion lower as of December 31, 2023 and
2024, respectively. The change in the value recorded in AOCI would be expected to offset a corresponding foreign currency
change in forecasted hedged revenues when recognized.
We use foreign exchange forward contracts designated as net investment hedges to hedge the foreign currency risks
related to investment in foreign subsidiaries. These forward contracts serve to offset the foreign currency translation risk
from our foreign operations.
If the U.S. dollar weakened by 10%, the amount recorded in cumulative translation adjustment (CTA) within AOCI related
to our net investment hedges before tax effect would have been approximately $946 million and $660 million lower
as of December 31, 2023 and 2024, respectively. The change in value recorded in CTA would be expected to offset a
corresponding foreign currency translation gain or loss from our investment in foreign subsidiaries.

Interest Rate Risk

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Alphabet reported $35.5 billion in non-marketable equity securities at December 31, 2024, including $19.9 billion remeasured during 2024.

alphabet2024:d3688fe457748c628215739f1cce5136c5bfc1424e9577aff535472e4526b376 · reported_fact

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As of December 31, 2024, the carrying value of our non-marketable equity securities was $35.5 billion, of which $19.9 billion
were remeasured at fair value during the year ended December 31, 2024, and were primarily classified within Level 2 of the
fair value hierarchy at the time of measurement.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Fair value changes
recorded in other
comprehensive income

Fair Value
Hierarchy

Time deposits

Level 2

Corporate debt securities

Level 2

Government bonds

Mortgage-backed and
asset-backed securities

Total investments
with fair value change
reflected in other
comprehensive income(1)

Fair value adjustments
recorded in net income
Money market funds

Current marketable equity
securities(2)
Mutual funds

Government bonds

Corporate debt securities
Mortgage-backed and
asset-backed securities

Total investments
with fair value change
recorded in net income

Cash
Total
(1)
(2)

Part III

Level 2

$

2,217

27,551

$

18,300

Level 2

62,505

0

83

Gross
Unrealized
Losses

$

79

14,437

$

As of December 31, 2024

Gross
Unrealized
Gains

Adjusted
Cost

225

0

(214)

$

Cash and
Cash
Equivalents

Fair Value

$

(222)

63

$

Part IV

2,217

27,420

$

18,157

2,081
50

Marketable
Securities

$

0

136

27,370
18,157

(385)

14,115

(821) $

61,909

$

2,131

$

59,778

$

8,154

$

8,154

$

0

Level 1

0

14,115

Level 1

4,708

0

4,708

Level 2

2,035

696

1,339

Level 2

3,302

0

3,302

Level 2

105

Level 2

0

3,037

$

62,505

$

225

$

78

$

21,341

$

(821) $

83,250

$

0

105

2,959

8,928

$

12,413

23,466

$

72,191

12,407

0

Represents gross unrealized gains and losses for debt securities recorded to AOCI.

The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $266 million as of December 31, 2024
is included within other non-current assets.

Investments Measured at Fair Value on a Nonrecurring Basis

Our non-marketable equity securities are investments in privately held companies without readily determinable market
values. The carrying value of our non-marketable equity securities is adjusted to fair value upon observable transactions
for identical or similar investments of the same issuer or impairment. Non-marketable equity securities that have been
remeasured during the period based on observable transactions are classified within Level 2 or Level 3 in the fair value
hierarchy. Non-marketable equity securities that have been remeasured due to impairment are classified within Level 3.
Our valuation methods include option pricing models, market comparable approach, and common stock equivalent method,
which may include a combination of the observable transaction price at the transaction date and other unobservable
inputs including volatility, expected time to exit, risk free rate, and the rights and obligations of the securities we hold.
These inputs vary significantly based on investment type.
As of December 31, 2024, the carrying value of our non-marketable equity securities was $35.5 billion, of which $19.9 billion
were remeasured at fair value during the year ended December 31, 2024, and were primarily classified within Level 2 of the
fair value hierarchy at the time of measurement.

64

Alphabet 2024 Annual Report

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Alphabet expected a $731 million net accumulated hedge gain to be reclassified into revenue within the next 12 months.

alphabet2024:4b876f1911cebfe748b173cc6785f5df8278763b67554f82abdf889a6a1a04ed · forecast

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As of December 31, 2024, the net accumulated gain on our foreign currency cash flow hedges before tax effect was
$731 million, which is expected to be reclassified from AOCI into revenues within the next 12 months.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

Equity Securities Accounted for Under the Equity Method

As of December 31, 2023 and 2024, equity securities accounted for under the equity method had a carrying value of
approximately $1.7 billion and $2.0 billion, respectively. Our share of gains and losses, including impairments, are included
as a component of OI&E, in the Consolidated Statements of Income. See Note 7 for further details on OI&E. Certain of our
equity method securities include our investments in VIEs where we are not the primary beneficiary. See Note 4 for further
details on VIEs.

Convertible Notes

As of December 31, 2023 and December 31, 2024, we had investments in convertible notes of $921 million and $2.9 billion,
respectively, the majority of which are convertible notes held for investment. Our convertible notes held for investment are
recorded at amortized cost which includes unpaid principal balances, deferred origination costs, and any related discount
or premium, net of allowances for credit losses, and are included within other non-current assets on our Consolidated
Balance Sheets.

Derivative Financial Instruments

We use derivative instruments to manage risks relating to our ongoing business operations. The primary risk managed is
foreign exchange risk. We use foreign currency contracts to reduce the risk that our cash flows, earnings, and investment in
foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We also enter into derivative
instruments to partially offset our exposure to other risks and enhance investment returns.
We recognize derivative instruments in the Consolidated Balance Sheets at fair value and classify the derivatives primarily
within Level 2 in the fair value hierarchy. We present our collar contracts (an option strategy comprised of a combination
of purchased and written options) at net fair values and present all other derivatives at gross fair values. The accounting
treatment for derivatives is based on the intended use and hedge designation.

Cash Flow Hedges

We designate foreign currency forward and option contracts (including collars) as cash flow hedges to hedge certain
forecasted revenue transactions denominated in currencies other than the U.S. dollar. These contracts have maturities of
24 months or less.

Cash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and subsequently
reclassified to revenue when the hedged item is recognized in earnings. We exclude forward points and time value from our
assessment of hedge effectiveness and amortize them on a straight-line basis over the life of the hedging instrument in
revenues. The difference between fair value changes of the excluded component and the amount amortized to revenues is
recorded in AOCI.
As of December 31, 2024, the net accumulated gain on our foreign currency cash flow hedges before tax effect was
$731 million, which is expected to be reclassified from AOCI into revenues within the next 12 months.

Fair Value Hedges

We designate foreign currency forward contracts as fair value hedges to hedge foreign currency risks for our marketable
securities denominated in currencies other than the U.S. dollar. Fair value hedge amounts included in the assessment of hedge
effectiveness are recognized in OI&E, along with the offsetting gains and losses of the related hedged items. We exclude
forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in OI&E.

Net Investment Hedges

We designate foreign currency forward contracts as net investment hedges to hedge the foreign currency risks related to
our investment in foreign subsidiaries. Net investment hedge amounts included in the assessment of hedge effectiveness
are recognized in AOCI along with the foreign currency translation adjustment. We exclude forward points from the
assessment of hedge effectiveness and recognize changes in the excluded component in OI&E.

Other Derivatives

We enter into foreign currency forward and option contracts that are not designated as hedging instruments to hedge
intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional
Alphabet 2024 Annual Report

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Waymo received $5.6 billion in 2024 funding, with the majority funded by Alphabet.

alphabet2024:1f81b398ce29d6840e22747e3c66e4bf195e249980826a442055b0dca3eb4c07 · reported_fact

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Waymo, a fully autonomous driving technology company and a consolidated VIE, received $5.6 billion in funding during
the year ended December 31, 2024, the majority of which was funded by Alphabet.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

As of December 31, 2024, we have entered into leases that have not yet commenced with short-term and long-term future
lease payments of $773 million and $6.5 billion, respectively, that are not yet recorded on our Consolidated Balance Sheets.
These leases will commence between 2025 and 2028 with non-cancelable lease terms between one and 25 years.

Note 5. Variable Interest Entities
Consolidated VIEs

We consolidate VIEs in which we hold a variable interest and are the primary beneficiary. The results of operations and
financial position of these VIEs are included in our consolidated financial statements.

For certain consolidated VIEs, their assets are not available to us, and their creditors do not have recourse to us. As
of December 31, 2023 and 2024, assets that can only be used to settle obligations of these VIEs were $4.9 billion and
$8.7 billion, respectively and are primarily included in cash and cash equivalents on our Consolidated Balance Sheets. As of
December 31, 2023 and 2024, liabilities for which creditors only have recourse to the VIEs were $2.5 billion and $2.3 billion,
respectively. We may continue to fund ongoing operations of certain VIEs that are included within Other Bets.
Waymo, a fully autonomous driving technology company and a consolidated VIE, received $5.6 billion in funding during
the year ended December 31, 2024, the majority of which was funded by Alphabet. Investments from external parties were
accounted for as equity transactions and resulted in recognition of noncontrolling interests.

As of December 31, 2023 and 2024, total noncontrolling interests (NCI) in our consolidated subsidiaries were $3.4 billion
and $4.2 billion, respectively, of which $1.1 billion was redeemable noncontrolling interests (RNCI) for both periods. NCI and
RNCI are included within additional paid-in capital. Net loss attributable to noncontrolling interests was not material for any
period presented and is included within the “other” component of OI&E. See Note 7 for further details on OI&E.

Unconsolidated VIEs

We have investments in VIEs in which we are not the primary beneficiary. These VIEs include private companies that are
primarily early stage companies and certain renewable energy entities in which activities involve power generation using
renewable sources.

We have determined that the governance structures of these entities do not allow us to direct the activities that would
significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of
operations and financial position of these VIEs are not included in our consolidated financial statements. We account
for these investments primarily as non-marketable equity securities or equity method investments, which are included
within non-marketable securities on our Consolidated Balance Sheets. The maximum exposure of these unconsolidated
VIEs is generally based on the current carrying value of the investments and any future funding commitments. As of
December 31, 2023 and 2024, our future funding commitments related to unconsolidated VIE investments were $1.7 billion
and $1.5 billion, respectively.

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Alphabet stated that it may continue funding certain Other Bets VIE operations.

alphabet2024:caedf93923c6fbbab64788876cf69f804e4e70c8ed57cb490d1272cc773839ba · forecast

Original source, physical page 80

We may continue to fund ongoing operations of certain VIEs that are included within Other Bets.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

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Note 5. Variable Interest Entities
Consolidated VIEs

Unconsolidated VIEs

Alphabet 2024 Annual Report

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Future funding commitments for unconsolidated VIE investments were $1.5 billion at December 31, 2024.

alphabet2024:9bd8178480c4c6280cf32774fab1eaa226c779ee943c6549a4412c6922ee3c16 · reported_fact

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As of
December 31, 2023 and 2024, our future funding commitments related to unconsolidated VIE investments were $1.7 billion
and $1.5 billion, respectively.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part II

Part III

Part IV

Note 5. Variable Interest Entities
Consolidated VIEs

Unconsolidated VIEs

Alphabet 2024 Annual Report

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Alphabet reported future lease payments of $773 million short term and $6.5 billion long term for leases not yet commenced, scheduled to commence between 2025 and 2028.

alphabet2024:60fe18e88ff443c038e3f916d4bf47e31968d86acbc7ce4bd5d344e9184719e1 · forecast

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As of December 31, 2024, we have entered into leases that have not yet commenced with short-term and long-term future
lease payments of $773 million and $6.5 billion, respectively, that are not yet recorded on our Consolidated Balance Sheets.
These leases will commence between 2025 and 2028 with non-cancelable lease terms between one and 25 years.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Note 5. Variable Interest Entities
Consolidated VIEs

Unconsolidated VIEs

Alphabet 2024 Annual Report

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Alphabet had a commercial paper program of up to $10.0 billion and $2.3 billion outstanding at December 31, 2024.

alphabet2024:8be3507f7c9a2cf7e3bcd6a3ec47338ca1406b980762cf35aea634838f5e55f3 · reported_fact

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We have a debt financing program of up to $10.0 billion through the issuance of commercial paper. Net proceeds
from this program are used for general corporate purposes. We had no commercial paper outstanding as of
December 31, 2023 and $2.3 billion of commercial paper outstanding with a weighted-average effective interest rate
of 4.4% as of December 31, 2024.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Note 6. Debt

Short-Term Debt

We have a debt financing program of up to $10.0 billion through the issuance of commercial paper. Net proceeds
from this program are used for general corporate purposes. We had no commercial paper outstanding as of
December 31, 2023 and $2.3 billion of commercial paper outstanding with a weighted-average effective interest rate
of 4.4% as of December 31, 2024.The estimated fair value of the commercial paper approximated its carrying value as
of December 31, 2024
Our short-term debt balance also includes the current portion of certain long-term debt.

Long-Term Debt

Total outstanding long-term debt is summarized below (in millions, except percentages):
Maturity

Coupon Rate

Effective
Interest Rate

2014 Notes issuance

2024

3.38%

2020 Notes issuance

2025 - 2060

0.45% - 2.25%

0.57% - 2.33%

Debt

2016 Notes issuance

2026

Total face value of long-term debt

2.00%

2.23%

As of December 31,
2023

(1)

Total long-term debt

(1)

2,000

10,000

(130)

(118)

13,000

Unamortized discount and debt issuance
costs
Less: Current portion of long-term notes

1,000

2024

(1,000)

11,870

12,000

(999)

10,883

Total current portion of long-term debt is included within accrued expenses and other current liabilities. See Note 7 for further details.

The notes in the table above are fixed-rate senior unsecured obligations and rank equally with each other. We may redeem
the notes at any time in whole or in part at specified redemption prices. The effective interest rates are based on proceeds
received with interest payable semi-annually.
The total estimated fair value of the outstanding notes was approximately $10.3 billion and $9.0 billion as of December 31,
2023 and December 31, 2024, respectively. The fair value was determined based on observable market prices of identical
instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy.
As of December 31, 2024, the future principal payments for long-term debt were as follows (in millions):
2025
2026

2027

2029

Total

2,000
1,000

2028
Thereafter

1,000

8,000

12,000

Credit Facility

As of December 31, 2024, we had $10.0 billion of revolving credit facilities, of which $4.0 billion expires in April 2025 and
$6.0 billion expires in April 2028. The interest rates for all credit facilities are determined based on a formula using certain
market rates, as well as our progress toward the achievement of certain sustainability goals. No amounts were outstanding
under the credit facilities as of December 31, 2023 and 2024.
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Alphabet had $10.0 billion in revolving credit facilities, with $4.0 billion expiring in April 2025 and $6.0 billion in April 2028; none was outstanding at year-end 2024.

alphabet2024:11de22c73d979923364bda39725f02bd4454934c282234d26454ed415fb44610 · reported_fact

Original source, physical page 81

As of December 31, 2024, we had $10.0 billion of revolving credit facilities, of which $4.0 billion expires in April 2025 and
$6.0 billion expires in April 2028. The interest rates for all credit facilities are determined based on a formula using certain
market rates, as well as our progress toward the achievement of certain sustainability goals. No amounts were outstanding
under the credit facilities as of December 31, 2023 and 2024.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Note 6. Debt

Short-Term Debt

Long-Term Debt

Total outstanding long-term debt is summarized below (in millions, except percentages):
Maturity

Coupon Rate

Effective
Interest Rate

2014 Notes issuance

2024

3.38%

2020 Notes issuance

2025 - 2060

0.45% - 2.25%

0.57% - 2.33%

Debt

2016 Notes issuance

2026

Total face value of long-term debt

2.00%

2.23%

As of December 31,
2023

(1)

Total long-term debt

(1)

2,000

10,000

(130)

(118)

13,000

Unamortized discount and debt issuance
costs
Less: Current portion of long-term notes

1,000

2024

(1,000)

11,870

12,000

(999)

10,883

Total current portion of long-term debt is included within accrued expenses and other current liabilities. See Note 7 for further details.

2027

2029

Total

2,000
1,000

2028
Thereafter

1,000

8,000

12,000

Credit Facility

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Alphabet reported $8.8 billion of future fixed or minimum guaranteed content licensing commitments, mostly paid quarterly through the first quarter of 2030.

alphabet2024:18f1131de13e872f401993aba94f4a446fa7588dab7b1ab053e2d1ff3bfd56c7 · measurable_promise

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We have content licensing agreements with future fixed or minimum guaranteed commitments of $8.8 billion as of
December 31, 2024, of which the majority is paid quarterly through the first quarter of 2030.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

Other Income (Expense), Net

Components of OI&E were as follows (in millions):
Year Ended December 31,

Interest income

$

Interest expense

(1)

Foreign currency exchange gain (loss), net
Gain (loss) on debt securities, net

2,174

(357)

$

Performance fees

Other income (expense), net

$

(308)

(3,455)

392

381

(3,514)

$

1,424

(268)

3,714

257

$

4,482

(1,043)
218

(628)
299

2024

(409)

(1,215)

(337)

Other

3,865

(1,238)

798

Income (loss) and impairment from equity method investments, net

2023

(654)

(2,064)

Gain (loss) on equity securities, net

(1)

2022

(188)
$

919

7,425

Interest expense is net of interest capitalized of $128 million, $181 million, and $194 million for the years ended December 31, 2022, 2023,
and 2024, respectively.

Note 8. Business Combinations
character.ai

In accordance with the accounting requirements under Accounting Standards Codification Topic 805, for the year ended
December 31, 2024, we recorded $2.7 billion of goodwill and $413 million of intangible assets resulting from a transaction
with character.ai (“Character”). In August 2024, we entered into a license agreement with Character pursuant to which we
obtained a non-exclusive license to its then current large language model technology. We paid Character $2.7 billion in cash
and canceled our convertible instruments. We also hired certain employees of Character. Goodwill was recorded in Google
Services and Google Cloud and is deductible for tax purposes.

Note 9. Goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2024 were as follows (in millions):

Balance as of December 31, 2022
Additions

$

Foreign currency translation and other adjustments
Additions

Balance as of December 31, 2024

20,847

240

$

31

Balance as of December 31, 2023

Foreign currency translation and other adjustments

Google
Services

7,205

3

$

(9)

Other Bets

908

0

$

(27)

Alphabet 2024 Annual Report

243

(5)

881

29,198

(38)

(4)

(7)

(49)

23,521

295

$

7,490

0

$

874

2,736

$

We have content licensing agreements with future fixed or minimum guaranteed commitments of $8.8 billion as of
December 31, 2024, of which the majority is paid quarterly through the first quarter of 2030.

76

28,960

7,199

Note 10. Commitments and Contingencies
Commitments

Total

21,118
2,441

$

Google Cloud

31,885

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The European Court of Justice upheld the €2.4 billion Shopping fine in September 2024, and Alphabet paid $3.0 billion in the third quarter of 2024.

alphabet2024:e3419fab87a788b5d1a031d62682ccfe4a70e2f99a338548198020f022a8efcb · reported_fact

Original source, physical page 85

In September 2024, the European Court of Justice rejected our appeal and upheld the €2.4 billion fine. In the
third quarter of 2024, we made a cash payment of $3.0 billion for the fine.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Indemnifications

In the normal course of business, including to facilitate transactions in our services and products and corporate activities,
we indemnify certain parties, including advertisers, Google Network partners, distribution partners, customers of Google
Cloud offerings, lessors, and service providers with respect to certain matters. We have agreed to defend and/or 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 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.

It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements
due to the unique facts and circumstances involved in each particular agreement. Additionally, the payments we have
made under such agreements have not had a material adverse effect on our results of operations, cash flows, or financial
position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be
significant and could have a material adverse effect on our results of operations or cash flows in a particular period.
As of December 31, 2024, we did not have any material indemnification claims that were probable or reasonably possible.

Legal Matters

We record a liability when we believe that it is probable that a loss has been incurred, and the amount can be reasonably
estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose
the reasonably possible loss. We evaluate developments in our legal matters that could affect the amount of liability that
has been previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as
appropriate.
Certain outstanding matters seek speculative, substantial or indeterminate monetary amounts, substantial changes to our
business practices and products, or structural remedies. Significant judgment is required to determine both the likelihood
of there being a loss and the estimated amount of a loss related to such matters, and we may be unable to estimate the
reasonably possible loss or range of losses. The outcomes of outstanding legal matters are inherently unpredictable and
subject to significant uncertainties, and could, either individually or in aggregate, have a material adverse effect.
We expense legal fees in the period in which they are incurred.

Antitrust Matters

We are subject to formal and informal inquiries and investigations as well as litigation on various competition matters by
regulatory authorities and private parties in the U.S., Europe, and other jurisdictions globally, including the following:

• Shopping: In June 2017, the EC announced its decision that certain actions taken by Google relating to its display
and ranking of shopping search results and ads infringed European antitrust laws and imposed a €2.4 billion fine. We
appealed the EC decision and implemented product changes to bring shopping ads into compliance with the EC’s
decision. In September 2024, the European Court of Justice rejected our appeal and upheld the €2.4 billion fine. In the
third quarter of 2024, we made a cash payment of $3.0 billion for the fine.

• Android: In July 2018, the EC announced its decision that certain provisions in Google’s Android-related distribution
agreements infringed European antitrust laws, imposed a €4.3 billion fine, and directed the termination of the conduct
at issue. We appealed the EC decision and implemented changes to certain of our Android distribution practices. In
September 2022, the General Court affirmed the EC decision but reduced the fine from €4.3 billion to €4.1 billion. We
subsequently appealed the General Court’s affirmation of the EC decision with the European Court of Justice, which
remains pending. In 2018, we recognized a charge of $5.1 billion for the fine, which we reduced by $217 million in 2022.

• AdSense for Search: In March 2019, the EC announced its decision that certain provisions in Google’s agreements with
AdSense for Search partners infringed European antitrust laws, imposed a fine of €1.5 billion, and directed actions
related to AdSense for Search partners’ agreements, which we implemented prior to the decision. In 2019, we recognized
a charge of $1.7 billion for the fine and appealed the EC decision. In September 2024, the General Court overturned the
EC decision and annulled the €1.5 billion fine. The EC has appealed the General Court’s decision with the European Court
of Justice.
Alphabet 2024 Annual Report

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Alphabet reported that the Android antitrust matter remained pending before the European Court of Justice after the General Court reduced the fine to €4.1 billion.

alphabet2024:2ba28db3dadd372cc9166610159710c1baac8b4ac81ed96593093b7368aeaa31 · challenge

Original source, physical page 85

We appealed the EC decision and implemented changes to certain of our Android distribution practices. In
September 2022, the General Court affirmed the EC decision but reduced the fine from €4.3 billion to €4.1 billion. We
subsequently appealed the General Court’s affirmation of the EC decision with the European Court of Justice, which
remains pending.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Indemnifications

Legal Matters

Antitrust Matters

• Shopping: In June 2017, the EC announced its decision that certain actions taken by Google relating to its display
and ranking of shopping search results and ads infringed European antitrust laws and imposed a €2.4 billion fine. We
appealed the EC decision and implemented product changes to bring shopping ads into compliance with the EC’s
decision. In September 2024, the European Court of Justice rejected our appeal and upheld the €2.4 billion fine. In the
third quarter of 2024, we made a cash payment of $3.0 billion for the fine.

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The EC appealed the General Court decision that annulled the €1.5 billion AdSense for Search fine.

alphabet2024:ac3b19191afb85514a0b1381ee18e167b686396c8ffc0e35c29f282984e95ef6 · challenge

Original source, physical page 85

In September 2024, the General Court overturned the
EC decision and annulled the €1.5 billion fine. The EC has appealed the General Court’s decision with the European Court
of Justice.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Indemnifications

Legal Matters

Antitrust Matters

• Shopping: In June 2017, the EC announced its decision that certain actions taken by Google relating to its display
and ranking of shopping search results and ads infringed European antitrust laws and imposed a €2.4 billion fine. We
appealed the EC decision and implemented product changes to bring shopping ads into compliance with the EC’s
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third quarter of 2024, we made a cash payment of $3.0 billion for the fine.

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The U.S. Search antitrust matter moved to a remedies proceeding after an August 2024 district court ruling, with proposed remedies that could materially affect the business.

alphabet2024:7bb6ef9d16c355b71296afcc5a41b3d2d4baba12512207ffc69fdffcce9c35c4 · challenge

Original source, physical page 86

In
August 2024, the U.S. District Court for the District of Columbia ruled that Google violated such U.S. antitrust laws. A
separate proceeding is being held to determine remedies, the range of which vary widely. The DOJ has proposed a
high level remedy framework, which includes alterations to our products and services and our business models and
operations, including structural remedies, and/or our distribution arrangements, among other changes, some of which
could have a material adverse effect on our business.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

• Search: In October 2020, the DOJ and a number of state Attorneys General filed a lawsuit in the U.S. District Court for
the District of Columbia alleging that Google violated U.S. antitrust laws relating to Search and Search advertising. In
August 2024, the U.S. District Court for the District of Columbia ruled that Google violated such U.S. antitrust laws. A
separate proceeding is being held to determine remedies, the range of which vary widely. The DOJ has proposed a
high level remedy framework, which includes alterations to our products and services and our business models and
operations, including structural remedies, and/or our distribution arrangements, among other changes, some of which
could have a material adverse effect on our business. We have filed our own remedies proposal ahead of a hearing on
remedies in April 2025. We expect a decision likely in the second half of 2025, after which we intend to appeal.
Further, in June 2022, the Australian Competition and Consumer Commission and in October 2023, the Japanese Fair
Trade Commission each opened an investigation into Search distribution practices.
Given the nature of these matters, we cannot estimate a possible loss.

• Advertising Technology: In December 2020, a number of state Attorneys General filed a lawsuit in the U.S. District Court
for the Eastern District of Texas alleging that Google violated U.S. antitrust laws as well as state deceptive trade laws
relating to its advertising technology, and a trial is scheduled for March 2025. Additionally, in January 2023, the DOJ,
along with a number of state Attorneys General, filed a lawsuit in the U.S. District Court for the Eastern District of Virginia
alleging that Google violated U.S. antitrust laws relating to its advertising technology, and a number of additional state
Attorneys General subsequently joined the lawsuit. The trial ended in September 2024, and we expect a decision in
early 2025.
Further, in June 2023, the EC issued a Statement of Objections informing Google of its preliminary view that Google
violated European antitrust laws relating to its advertising technology, to which we responded.
Given the nature of these matters, we cannot estimate a possible loss.

• Google Play: In July 2021, a number of state Attorneys General filed a lawsuit in the U.S. District Court for the Northern
District of California alleging that Google’s operation of Android and Google Play violated U.S. antitrust laws and state
antitrust and consumer protection laws. In September 2023, we reached a settlement in principle with 50 state Attorneys
General and three territories and recognized a charge. Final approval of the settlement remains pending before the
court. In May 2024, we funded the settlement amount to an escrow agent.
In December 2023, a California jury delivered a verdict in Epic Games v. Google finding that Google violated U.S. antitrust
laws related to Google Play’s business. Epic did not seek monetary damages. The presiding judge issued a remedies
decision in October 2024, ordering a variety of alterations to our business models and operations and contractual
agreements for Android and Google Play. We are appealing the verdict and the trial court judge temporarily paused
the implementation of the remedies while the Court of Appeals considers our request to pause implementation of the
remedies pending the duration of the appeal. Given the nature of this matter, we cannot estimate a possible loss.

• European Digital Markets Act: In March 2024, the EC opened two investigations regarding Google’s compliance with
certain provisions of EU’s Digital Markets Act relating to Google Play and Search. Given the preliminary stages of this
matter, we cannot estimate a possible loss.

In addition to these proceedings, private individual and collective actions that overlap with claims pursued by regulatory
authorities are pending in the U.S. and in several other jurisdictions.
We believe we have strong arguments against these open claims and will defend ourselves vigorously. We continue to
cooperate with federal and state regulators in the U.S., the EC, and other regulators around the world.

Privacy Matters

We are subject to a number of privacy-related laws and regulations, and we currently are party to a number of privacy
investigations and lawsuits ongoing in multiple jurisdictions. For example, there are ongoing investigations and litigation in
the U.S. and the EU, including those relating to our collection and use of location information, alleged violations of state
biometric statutes, the choices we offer users, and advertising practices, which could result in significant fines, judgments,
and product changes.

Alphabet 2024 Annual Report

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Alphabet expected a Search remedies decision likely in the second half of 2025.

alphabet2024:52792d145d856e8bc37fdc9ac9348e2545a07d2215a2dbef0d587c8f0fa68e08 · forecast

Original source, physical page 86

We expect a decision likely in the second half of 2025, after which we intend to appeal.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

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Part II

Part III

Part IV

Privacy Matters

Alphabet 2024 Annual Report

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Alphabet expected an advertising technology antitrust decision in early 2025 after a trial ended in September 2024.

alphabet2024:1aa49ebf6c5e723e28efafab022242ae475babf403b9ffaab1b55acebf9ad96e · forecast

Original source, physical page 86

The trial ended in September 2024, and we expect a decision in
early 2025.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Privacy Matters

Alphabet 2024 Annual Report

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Alphabet reported an October 2024 Google Play remedies decision and an appeal with implementation temporarily paused.

alphabet2024:a9b46cd7988a5c0405918c90774749e410e81f55a113dd9874c7f7107c28b028 · challenge

Original source, physical page 86

The presiding judge issued a remedies
decision in October 2024, ordering a variety of alterations to our business models and operations and contractual
agreements for Android and Google Play. We are appealing the verdict and the trial court judge temporarily paused
the implementation of the remedies while the Court of Appeals considers our request to pause implementation of the
remedies pending the duration of the appeal.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Privacy Matters

Alphabet 2024 Annual Report

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Alphabet reported ongoing U.S. and EU privacy investigations and litigation that could lead to significant fines, judgments, and product changes.

alphabet2024:ae0bc3496584ec488497335d45d1ce4ac9bd6a87d14d48e6aa4d5ab4ce7f1feb · challenge

Original source, physical page 86

For example, there are ongoing investigations and litigation in
the U.S. and the EU, including those relating to our collection and use of location information, alleged violations of state
biometric statutes, the choices we offer users, and advertising practices, which could result in significant fines, judgments,
and product changes.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Privacy Matters

Alphabet 2024 Annual Report

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  "excerpt": "For example, there are ongoing investigations and litigation in\nthe U.S. and the EU, including those relating to our collection and use of location information, alleged violations of state\nbiometric statutes, the choices we offer users, and advertising practices, which could result in significant fines, judgments,\nand product changes.",
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Alphabet repurchased $62.0 billion of Class A and Class C shares in 2024; $44.7 billion remained under the additional $70.0 billion authorization at year-end.

alphabet2024:0089984fbe10352cdd454aa80510790044df1e19b86338785add78042933ae8c · reported_fact

Original source, physical page 88

During the
years ended December 31, 2022, 2023, and 2024, we repurchased $59.3 billion, $62.2 billion, and $62.0 billion, respectively,
of Alphabet’s Class A and Class C shares.
In April 2024, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion
of its Class A and Class C shares. As of December 31, 2024, $44.7 billion remained available for Class A and Class C share
repurchases.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Share Repurchases

In the years ended December 31, 2022, 2023, and 2024, we continued to repurchase both Class A and Class C shares in
a manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and
prevailing market conditions, including the relative trading prices and volumes of the Class A and Class C shares. During the
years ended December 31, 2022, 2023, and 2024, we repurchased $59.3 billion, $62.2 billion, and $62.0 billion, respectively,
of Alphabet’s Class A and Class C shares.
In April 2024, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion
of its Class A and Class C shares. As of December 31, 2024, $44.7 billion remained available for Class A and Class C share
repurchases.
The following table presents Class A and Class C shares repurchased and subsequently retired (in millions):
Year Ended December 31, 2023
Class A share repurchases

Class C share repurchases
Total share repurchases

(1)

Shares
78

528

450

Amount
9,316

52,868

62,184

Year Ended December 31, 2024
Shares
73

379

306

Amount
11,855

50,192

62,047

Shares repurchased include unsettled repurchases.

Repurchases are executed from time to time, subject to general business and market conditions and other investment
opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans.
The repurchase program does not have an expiration date.

Dividends

During the year ended December 31, 2024, total cash dividends, which were first paid in June 2024, were $3.5 billion,
$519 million, and $3.3 billion for Class A, Class B, and Class C shares, respectively.

The company intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board
of Directors in its sole discretion.

Note 12. Net Income Per Share

We compute net income per share of Class A, Class B, and Class C stock using the two-class method. Basic net income per
share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per
share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding
during the period. Potentially dilutive securities consist of RSUs and other contingently issuable shares. The dilutive effect
of outstanding RSUs and other contingently issuable shares is reflected in diluted earnings per share by application of the
treasury stock method. The computation of the diluted net income per share of Class A stock assumes the conversion of
Class B stock, while the diluted net income per share of Class B stock does not assume the conversion of those shares.

In accordance with our certificate of incorporation, the rights, including the liquidation and dividend rights, of the holders
of our Class A, Class B, and Class C stock are identical, except with respect to voting. Furthermore, there are a number
of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude our Board of Directors
from declaring or paying unequal per share dividends on our Class A, Class B, and Class C stock. Specifically, Delaware
law provides that amendments to our certificate of incorporation which would have the effect of adversely altering the
rights, powers, or preferences of a given class of stock must be approved by the class of stock adversely affected by the
proposed amendment. In addition, our certificate of incorporation provides that before any such amendment may be put to a
stockholder vote, it must be approved by the unanimous consent of our Board of Directors.
Immaterial differences in net income per share across our Class A, Class B, and Class C shares may arise due to the
allocation of distributed earnings, which is based on the holders as of the record date, compared with the allocation of
undistributed earnings and number of shares, which is based on the weighted average shares outstanding over the periods.

Alphabet 2024 Annual Report

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  "excerpt": "During the\nyears ended December 31, 2022, 2023, and 2024, we repurchased $59.3 billion, $62.2 billion, and $62.0 billion, respectively,\nof Alphabet’s Class A and Class C shares.\nIn April 2024, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion\nof its Class A and Class C shares. As of December 31, 2024, $44.7 billion remained available for Class A and Class C share\nrepurchases.",
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Alphabet stated that it intends to pay quarterly cash dividends in the future, subject to Board review and approval.

alphabet2024:7027ce4747de43f3122e7ec3319ab655a6dc07d8729bfce2944d875a00b792f7 · aspiration

Original source, physical page 88

The company intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board
of Directors in its sole discretion.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Share Repurchases

Class C share repurchases
Total share repurchases

(1)

Shares
78

528

450

Amount
9,316

52,868

62,184

Year Ended December 31, 2024
Shares
73

379

306

Amount
11,855

50,192

62,047

Shares repurchased include unsettled repurchases.

Dividends

The company intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board
of Directors in its sole discretion.

Note 12. Net Income Per Share

Alphabet 2024 Annual Report

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  "excerpt": "The company intends to pay quarterly cash dividends in the future, subject to review and approval by the company’s Board\nof Directors in its sole discretion.",
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  "section": "Note 11. Stockholders’ Equity. Dividends",
  "target_date": "in the future",
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Total stock-based compensation expense was $22.8 billion in 2024, including $22.0 billion tied to awards expected to settle in Alphabet stock.

alphabet2024:51009baacab64ddd7fef4299a7657bda733e3c6c26a79b236dfe755086397183 · reported_fact

Original source, physical page 92

For the years ended December 31, 2022, 2023, and 2024, total SBC expense was $19.5 billion, $22.1 billion, and $22.8 billion,
including amounts associated with awards we expect to settle in Alphabet stock of $18.8 billion, $21.7 billion, and
$22.0 billion, respectively.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Note 13. Compensation Plans
Stock Plans

Our stock plans include the Alphabet Amended and Restated 2021 Stock Plan (“Alphabet 2021 Stock Plan”) and Other
Bets stock-based plans. Under our stock plans, RSUs and other types of awards may be granted. Under the Alphabet 2021
Stock Plan, an RSU award is an agreement to issue shares of our Class C stock at the time the award vests. RSUs generally
vest over four years contingent upon employment on the vesting date. RSUs are awarded dividend equivalents, which are
subject to the same vesting conditions as the underlying award, and settled in Class C shares.
As of December 31, 2024, there were 633 million shares of Class C stock reserved for future issuance under the Alphabet
2021 Stock Plan.

Stock-Based Compensation

For the years ended December 31, 2022, 2023, and 2024, total SBC expense was $19.5 billion, $22.1 billion, and $22.8 billion,
including amounts associated with awards we expect to settle in Alphabet stock of $18.8 billion, $21.7 billion, and
$22.0 billion, respectively.
For the years ended December 31, 2022, 2023, and 2024, we recognized tax benefits on total SBC expense, which are
reflected in the provision for income taxes in the Consolidated Statements of Income, of $3.9 billion, $4.5 billion, and
$4.6 billion, respectively.

For the years ended December 31, 2022, 2023, and 2024, tax benefit realized related to awards vested or exercised during
the period was $4.7 billion, $5.6 billion, and $6.8 billion, respectively. These amounts do not include the indirect effects of
stock-based awards, which primarily relate to the R&D tax credit.

Stock-Based Award Activities

The following table summarizes the activities for unvested Alphabet RSUs, which include dividend equivalents awarded to
holders of unvested stock, for the year ended December 31, 2024 (in millions, except per share amounts):

Unvested as of December 31, 2023
Granted
Vested

Forfeited/canceled

Unvested as of December 31, 2024

Number of
Shares
338

Weighted-Average
Grant-Date Fair Value

104.93

(199) $

110.89

195

(35) $

299

140.04
113.52
122.77

The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2022 and 2023 was
$127.22 and $97.59, respectively. Total fair value of RSUs, as of their respective vesting dates, during the years ended
December 31, 2022, 2023, and 2024, were $23.9 billion, $26.6 billion, and $33.3 billion, respectively.
As of December 31, 2024, there was $34.8 billion of unrecognized compensation cost related to unvested RSUs. This
amount is expected to be recognized over a weighted-average period of 2.5 years.

Alphabet 2024 Annual Report

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  "excerpt": "For the years ended December 31, 2022, 2023, and 2024, total SBC expense was $19.5 billion, $22.1 billion, and $22.8 billion,\nincluding amounts associated with awards we expect to settle in Alphabet stock of $18.8 billion, $21.7 billion, and\n$22.0 billion, respectively.",
  "page": 92,
  "section": "Note 13. Compensation Plans. Stock-Based Compensation",
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Alphabet expected to recognize $34.8 billion of unrecognized compensation cost over a weighted-average period of 2.5 years.

alphabet2024:74357a0781825c02042f1ad022c98b7cdb17c9d7bb5d907842e7e3f8fda8242b · forecast

Original source, physical page 92

As of December 31, 2024, there was $34.8 billion of unrecognized compensation cost related to unvested RSUs. This
amount is expected to be recognized over a weighted-average period of 2.5 years.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Note 13. Compensation Plans
Stock Plans

Stock-Based Compensation

Stock-Based Award Activities

Unvested as of December 31, 2023
Granted
Vested

Forfeited/canceled

Unvested as of December 31, 2024

Number of
Shares
338

Weighted-Average
Grant-Date Fair Value

104.93

(199) $

110.89

195

(35) $

299

140.04
113.52
122.77

Alphabet 2024 Annual Report

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  "summary": "Alphabet expected to recognize $34.8 billion of unrecognized compensation cost over a weighted-average period of 2.5 years.",
  "excerpt": "As of December 31, 2024, there was $34.8 billion of unrecognized compensation cost related to unvested RSUs. This\namount is expected to be recognized over a weighted-average period of 2.5 years.",
  "page": 92,
  "section": "Note 13. Compensation Plans. Stock-Based Award Activities",
  "target_date": "over a weighted-average period of 2.5 years",
  "numeric_target": "$34.8 billion",
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  "attribution": "Alphabet Inc.",
  "uncertainties": [
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Gross unrecognized tax benefits were $12.6 billion at December 31, 2024, of which $10.0 billion would affect the effective tax rate if recognized.

alphabet2024:c15762f86bbc54498f3f8ad4f8c9c1a38588a9f1fe651fa45ab53298429ca844 · reported_fact

Original source, physical page 95

The total amount of gross unrecognized tax
benefits was $7.1 billion, $9.4 billion, and $12.6 billion as of December 31, 2022, 2023, and 2024, respectively, of which
$5.3 billion, $7.4 billion, and $10.0 billion, if recognized, would affect our effective tax rate, respectively.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Uncertain Tax Positions

The following table summarizes the activity related to our gross unrecognized tax benefits (in millions):
Year Ended December 31,

Beginning gross unrecognized tax benefits

Increases related to prior year tax positions

2022

5,158

253

2023

7,055

740

Decreases related to prior year tax positions

(437)

(682)

Increases related to current year tax positions

2,221

2,346

Decreases related to settlement with tax authorities
Ending gross unrecognized tax benefits

(140)

7,055

2024

9,438
896

(83)

(21)

9,438

(311)

2,679

12,619

As of December 31, 2023 and 2024, we accrued $622 million and $1.1 billion in interest and penalties in provision for income
taxes, respectively.
We file income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. Our two major tax
jurisdictions are the U.S. federal and Ireland. We are subject to the continuous examination of our income tax returns by
the IRS and other tax authorities. The IRS is currently examining our 2016 through 2021 tax returns. We have also received
tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We
continue to defend such claims as presented.
The tax years 2016 through 2023 remain subject to examination by the appropriate governmental agencies for Irish tax
purposes. There are other ongoing audits in various other jurisdictions that are not material to our financial statements.

We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of
our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the
effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.

We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However,
the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a
manner not consistent with management’s expectations, we could be required to adjust our provision for income taxes in
the period such resolutions occur. Although the timing of resolution, settlement, and closure of audits is not certain, we
do not believe it is reasonably possible that our unrecognized tax benefits from certain U.S. federal, state, and non U.S. tax
positions will materially change in the next 12 months.

Alphabet 2024 Annual Report

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  "excerpt": "The total amount of gross unrecognized tax\nbenefits was $7.1 billion, $9.4 billion, and $12.6 billion as of December 31, 2022, 2023, and 2024, respectively, of which\n$5.3 billion, $7.4 billion, and $10.0 billion, if recognized, would affect our effective tax rate, respectively.",
  "page": 95,
  "section": "Note 14. Income Taxes. Uncertain Tax Positions",
  "target_date": null,
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  ],
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Alphabet stated that tax audit outcomes and the timing of resolution cannot be predicted with certainty.

alphabet2024:aae9cb4bf91e529b68097143a5201fbb417e824c6ae3770e5d9762108d6cb967 · challenge

Original source, physical page 95

However,
the outcome of tax audits cannot be predicted with certainty.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Uncertain Tax Positions

The following table summarizes the activity related to our gross unrecognized tax benefits (in millions):
Year Ended December 31,

Beginning gross unrecognized tax benefits

Increases related to prior year tax positions

2022

5,158

253

2023

7,055

740

Decreases related to prior year tax positions

(437)

(682)

Increases related to current year tax positions

2,221

2,346

Decreases related to settlement with tax authorities
Ending gross unrecognized tax benefits

(140)

7,055

2024

9,438
896

(83)

(21)

9,438

(311)

2,679

12,619

Alphabet 2024 Annual Report

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Alphabet consolidated general AI model teams under Google Research and Google DeepMind, with the reporting change beginning in the second quarter of 2024; the Gemini app team joined Google DeepMind in October 2024.

alphabet2024:aa9421637a7d7fbabe105f4f20f8e8b8cf8fd4961e6293d6937da13817f46191 · reported_fact

Original source, physical page 96

As announced in April 2024, we consolidated teams that focus on building general AI models across Google Research
and Google DeepMind to further accelerate our progress in AI. General AI model development teams previously under
Google Research in our Google Services segment are reported within Alphabet-level activities prospectively beginning in
the second quarter of 2024. As further announced, in October 2024, the Gemini app team that is developing the direct
consumer interface to our Gemini models joined Google DeepMind. The costs associated with the Gemini app team
continue to be reported within our Google Services segment.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Note 15. Information about Segments and Geographic Areas
We report our segment results as Google Services, Google Cloud, and Other Bets:

• Google Cloud includes infrastructure and platform services, applications, and other services for enterprise customers.
Google Cloud generates revenues primarily from consumption-based fees and subscriptions received for Google Cloud
Platform services, Google Workspace communication and collaboration tools, and other enterprise services.

• Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets
are generated primarily from the sale of healthcare-related services and internet services.
Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering activities, and
devices, as well as certain operating expenses are directly attributable to our segments. Due to the integrated nature
of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are managed centrally at a
consolidated level. These costs, including the associated depreciation, are allocated to operating segments as a service
cost generally based on usage, headcount, or revenue.

As announced in April 2024, we consolidated teams that focus on building general AI models across Google Research
and Google DeepMind to further accelerate our progress in AI. General AI model development teams previously under
Google Research in our Google Services segment are reported within Alphabet-level activities prospectively beginning in
the second quarter of 2024. As further announced, in October 2024, the Gemini app team that is developing the direct
consumer interface to our Gemini models joined Google DeepMind. The costs associated with the Gemini app team
continue to be reported within our Google Services segment.

Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily
include certain AI-focused shared R&D activities, including development costs of our general AI models; corporate
initiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and legal
costs, including certain fines and settlements. Charges associated with employee severance and office space reductions
during 2023 and 2024 were also not allocated to our segments. Additionally, hedging gains (losses) related to revenue are
not allocated to our segments.
Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, Sundar Pichai. Our CODM uses segment
operating income (loss) to allocate resources to our segments in our annual planning process and to assess the
performance of our segments, primarily by monitoring actual results versus the annual plan. Our operating segments are
not evaluated using asset information.

Alphabet 2024 Annual Report

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Alphabet recognized an $8.0 billion unrealized gain on a non-marketable equity investment in January 2025 after an observable transaction.

alphabet2024:2127dd27b9b0de7d96fc3ef679751142b5b3663875e1941335b108445f7d14e1 · reported_fact

Original source, physical page 97

In January 2025, we recognized an $8.0 billion unrealized gain on our non-marketable equity securities related to our
investment in a private company. The unrealized gain reflects an increase in the fair value measurement of our investment
following an observable transaction in January 2025.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

The following table presents revenue, profitability, and expense information about our segments (in millions):
Year Ended December 31,

Revenues:

Google Services
Google Cloud

2022
$

Other Bets

Hedging gains (losses)

253,528

26,280

2023

$

1,068
1,960

272,543

$

33,088

2024
304,930

43,229

1,527

1,648

236

211

Total revenues

$

282,836

$

307,394

$

350,018

Google Services

$

82,699

$

95,858

$

121,263

Operating income (loss):
Google Cloud
Other Bets

Alphabet-level activities

Total income from operations

Supplemental information about our segment expenses:
Google Services:

Employee compensation expenses
Other costs and expenses

Total Google Services costs and expenses

Google Cloud:

Employee compensation expenses
Other costs and expenses

Total Google Cloud costs and expenses

(1,922)
(4,636)
(1,299)

1,716

(4,095)

6,112

(4,444)

(9,186)

(10,541)

$

74,842

$

84,293

$

112,390

$

43,529

$

46,224

$

44,560

$

170,829

$

176,685

$

183,667

$

16,132

$

19,054

$

20,519

$

28,202

$

31,372

$

37,117

127,300

12,070

130,461

12,318

139,107

16,598

Google Services and Google Cloud employee compensation expenses include the costs associated with direct and
allocated employees. Google Services and Google Cloud other costs and expenses primarily include direct costs, such
as advertising and promotional activities and third party services fees as well as allocated costs, such as technical
infrastructure and office facilities usage costs. Additionally, Google Services other costs and expenses include content and
traffic acquisition costs and device costs.
See Note 2 for information relating to revenues by geography.

The following table presents long-lived assets by geographic area, which includes property and equipment, net and
operating lease assets (in millions):
As of December 31,
Long-lived assets:
United States
International

Total long-lived assets

2023

2024

$

110,053

$

138,993

$

148,436

$

184,624

38,383

45,631

Note 16. Subsequent Event

In January 2025, we recognized an $8.0 billion unrealized gain on our non-marketable equity securities related to our
investment in a private company. The unrealized gain reflects an increase in the fair value measurement of our investment
following an observable transaction in January 2025. See Note 3 and Note 7 for further details on equity investments and OI&E.
Alphabet 2024 Annual Report

89

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Alphabet management concluded that internal control over financial reporting was effective as of December 31, 2024.

alphabet2024:8a55f46e67bf8dddd91e2269b4e32126951185d84d2db548ae9ea418ddf6af48 · reported_fact

Original source, physical page 98

Based on this evaluation,
management concluded that our internal control over financial reporting was effective as of December 31, 2024.

Alphabet 2024 Annual Report. Container publication metadata: 2025-04-25 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the
effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the end of
the period covered by this Annual Report on Form 10-K.

Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of December 31,
2024, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide
reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act
is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that
such information is accumulated and communicated to our management, including our chief executive officer and chief
financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the quarter ended
December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as
defined in Rule 13a-15(f) of the Exchange Act. Our management conducted an evaluation of the effectiveness of our
internal control over financial reporting based on the framework in Internal Control—Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this evaluation,
management concluded that our internal control over financial reporting was effective as of December 31, 2024.
Management reviewed the results of its assessment with our Audit and Compliance Committee. The effectiveness of our
internal control over financial reporting as of December 31, 2024 has been audited by Ernst & Young LLP, an independent
registered public accounting firm, as stated in its report which is included in Item 8 of this Annual Report on Form 10-K.

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and
procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired
control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are
resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls
and procedures relative to their costs.

Item 9B. Other Information
10b5-1 Trading Plans

During the quarter ended December 31, 2024, each of the following Section 16 director and officer adopted, modified, or
terminated a “Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K of the Exchange Act):

• John Hennessy, Chair of the Board of Directors of Alphabet, through the John L. Hennessy & Andrea J. Hennessy
Revocable Trust adopted a trading plan on November 5, 2024 (with the first trade under the plan scheduled for March 13,
2025). The trading plan will be effective until March 13, 2026 to sell 6,000 shares of Class C Capital Stock and 1,200
shares of Class A Common Stock.
90

Alphabet 2024 Annual Report

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Alphabet reported its first $100 billion quarter in Q3 and annual revenue above $400 billion for the first time.

alphabet2025:1af48821309944c9af6c9fdf41a72523a513e275b76187137937ff0d21fcd277 · reported_fact

Original source, physical page 3

A note from Sundar, April 2026
To our Shareholders,
2025 was a tremendous year for Alphabet.
We delivered our first-ever $100 billion quarter
in Q3 and saw our annual revenues exceed $400
billion for the first time.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Full saved page including headers

A note from Sundar, April 2026
To our Shareholders,
2025 was a tremendous year for Alphabet.
We delivered our first-ever $100 billion quarter
in Q3 and saw our annual revenues exceed $400
billion for the first time. We saw strong momentum
across our entire business, including Search, Google
Cloud—which ended the year with an annual run
rate of over $70 billion—and YouTube, whose annual
revenues surpassed $60 billion across Ads and
Subscriptions. Meanwhile, consumer subscriptions
exceeded 325 million. We ended 2025 in a great
position, driven by our AI-first strategy and our
differentiated, full-stack approach.
AI Infrastructure
Our unrivaled technical infrastructure serves as the
bedrock of our AI stack. We are scaling our physical
infrastructure at a stunning pace: In 2026, we plan
to invest around $180 billion in total capex, doubled
from $90 billion last year, and 6x increase in just
four years. We offer the industry’s widest variety of
compute options to our Cloud customers, including
the latest NVIDIA GPUs and our own custom TPUs that
we have been developing for over a decade. We’re
now shipping Ironwood, our seventh-generation TPU,
which delivers a 10x performance improvement over
its predecessor, and we’ve announced TPU 8, coming
later this year. In March 2025 we announced our intent
to acquire Wiz, and the deal was finalized in March
2026. It’s our largest acquisition in our history, and an
investment by Google Cloud to improve cloud security
and enable organizations to build fast and securely
across any cloud or AI platform.

World-Class Research and Models
Our world-class research and models continue to
lead the industry. In December, we launched Gemini 3,
which drove the state of the art in reasoning and
multimodal understanding and swept AI leaderboards.
We also boast the world’s most extensive generative
media model portfolio, including our leading video
model Veo 3.1 and the viral image model sensation
Nano Banana. In our Q4 2025 earnings we shared
that our first party models like Gemini processed over
10 billion tokens per minute via direct API use by our
customers, up from 7 billion the quarter prior.
Our deep computer science roots are accelerating
discoveries, from our Gemma models being used
for cancer research to our Willow quantum chip,
which achieved a new milestone last year with the
first verifiable instance of a quantum computer
outperforming a regular supercomputer on a
computation that paves the way for future practical
applications. This momentum in quantum computing
is built on foundational science, highlighted by our
chief scientist for quantum hardware, Michel Devoret,
being awarded the Nobel Prize in Physics for his early
research—the third Googler to receive a Nobel Prize
in just the last two years.
→

Michel Devoret, Google Quantum AI’s Chief Scientist of

Quantum Hardware, is a 2025 Nobel laureate alongside
former Quantum AI hardware lead John Martinis, and

John Clarke of the University of California, Berkeley.

Annual Report 2025

1

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Alphabet reported annual run rates above $70 billion for Google Cloud and $60 billion for YouTube, with consumer subscriptions above 325 million.

alphabet2025:bf907d3094ad75a8127abac4f379bd320c30361deb8d67ed66e476de7f486da9 · reported_fact

Original source, physical page 3

We saw strong momentum
across our entire business, including Search, Google
Cloud—which ended the year with an annual run
rate of over $70 billion—and YouTube, whose annual
revenues surpassed $60 billion across Ads and
Subscriptions. Meanwhile, consumer subscriptions
exceeded 325 million.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

A note from Sundar, April 2026
To our Shareholders,
2025 was a tremendous year for Alphabet.
We delivered our first-ever $100 billion quarter
in Q3 and saw our annual revenues exceed $400
billion for the first time. We saw strong momentum
across our entire business, including Search, Google
Cloud—which ended the year with an annual run
rate of over $70 billion—and YouTube, whose annual
revenues surpassed $60 billion across Ads and
Subscriptions. Meanwhile, consumer subscriptions
exceeded 325 million. We ended 2025 in a great
position, driven by our AI-first strategy and our
differentiated, full-stack approach.
AI Infrastructure
Our unrivaled technical infrastructure serves as the
bedrock of our AI stack. We are scaling our physical
infrastructure at a stunning pace: In 2026, we plan
to invest around $180 billion in total capex, doubled
from $90 billion last year, and 6x increase in just
four years. We offer the industry’s widest variety of
compute options to our Cloud customers, including
the latest NVIDIA GPUs and our own custom TPUs that
we have been developing for over a decade. We’re
now shipping Ironwood, our seventh-generation TPU,
which delivers a 10x performance improvement over
its predecessor, and we’ve announced TPU 8, coming
later this year. In March 2025 we announced our intent
to acquire Wiz, and the deal was finalized in March
2026. It’s our largest acquisition in our history, and an
investment by Google Cloud to improve cloud security
and enable organizations to build fast and securely
across any cloud or AI platform.

World-Class Research and Models
Our world-class research and models continue to
lead the industry. In December, we launched Gemini 3,
which drove the state of the art in reasoning and
multimodal understanding and swept AI leaderboards.
We also boast the world’s most extensive generative
media model portfolio, including our leading video
model Veo 3.1 and the viral image model sensation
Nano Banana. In our Q4 2025 earnings we shared
that our first party models like Gemini processed over
10 billion tokens per minute via direct API use by our
customers, up from 7 billion the quarter prior.
Our deep computer science roots are accelerating
discoveries, from our Gemma models being used
for cancer research to our Willow quantum chip,
which achieved a new milestone last year with the
first verifiable instance of a quantum computer
outperforming a regular supercomputer on a
computation that paves the way for future practical
applications. This momentum in quantum computing
is built on foundational science, highlighted by our
chief scientist for quantum hardware, Michel Devoret,
being awarded the Nobel Prize in Physics for his early
research—the third Googler to receive a Nobel Prize
in just the last two years.
→

Michel Devoret, Google Quantum AI’s Chief Scientist of

Quantum Hardware, is a 2025 Nobel laureate alongside
former Quantum AI hardware lead John Martinis, and

John Clarke of the University of California, Berkeley.

Annual Report 2025

1

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Alphabet planned around $180 billion of total capex in 2026.

alphabet2025:f89c303837b0404083214afab8f4ae4e96cae3facfa537e30fce0ebafedc59a1 · forecast

Original source, physical page 3

In 2026, we plan
to invest around $180 billion in total capex, doubled
from $90 billion last year, and 6x increase in just
four years.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

A note from Sundar, April 2026
To our Shareholders,
2025 was a tremendous year for Alphabet.
We delivered our first-ever $100 billion quarter
in Q3 and saw our annual revenues exceed $400
billion for the first time. We saw strong momentum
across our entire business, including Search, Google
Cloud—which ended the year with an annual run
rate of over $70 billion—and YouTube, whose annual
revenues surpassed $60 billion across Ads and
Subscriptions. Meanwhile, consumer subscriptions
exceeded 325 million. We ended 2025 in a great
position, driven by our AI-first strategy and our
differentiated, full-stack approach.
AI Infrastructure
Our unrivaled technical infrastructure serves as the
bedrock of our AI stack. We are scaling our physical
infrastructure at a stunning pace: In 2026, we plan
to invest around $180 billion in total capex, doubled
from $90 billion last year, and 6x increase in just
four years. We offer the industry’s widest variety of
compute options to our Cloud customers, including
the latest NVIDIA GPUs and our own custom TPUs that
we have been developing for over a decade. We’re
now shipping Ironwood, our seventh-generation TPU,
which delivers a 10x performance improvement over
its predecessor, and we’ve announced TPU 8, coming
later this year. In March 2025 we announced our intent
to acquire Wiz, and the deal was finalized in March
2026. It’s our largest acquisition in our history, and an
investment by Google Cloud to improve cloud security
and enable organizations to build fast and securely
across any cloud or AI platform.

World-Class Research and Models
Our world-class research and models continue to
lead the industry. In December, we launched Gemini 3,
which drove the state of the art in reasoning and
multimodal understanding and swept AI leaderboards.
We also boast the world’s most extensive generative
media model portfolio, including our leading video
model Veo 3.1 and the viral image model sensation
Nano Banana. In our Q4 2025 earnings we shared
that our first party models like Gemini processed over
10 billion tokens per minute via direct API use by our
customers, up from 7 billion the quarter prior.
Our deep computer science roots are accelerating
discoveries, from our Gemma models being used
for cancer research to our Willow quantum chip,
which achieved a new milestone last year with the
first verifiable instance of a quantum computer
outperforming a regular supercomputer on a
computation that paves the way for future practical
applications. This momentum in quantum computing
is built on foundational science, highlighted by our
chief scientist for quantum hardware, Michel Devoret,
being awarded the Nobel Prize in Physics for his early
research—the third Googler to receive a Nobel Prize
in just the last two years.
→

Michel Devoret, Google Quantum AI’s Chief Scientist of

Quantum Hardware, is a 2025 Nobel laureate alongside
former Quantum AI hardware lead John Martinis, and

John Clarke of the University of California, Berkeley.

Annual Report 2025

1

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Alphabet said it was shipping Ironwood, its seventh-generation TPU, with a stated 10x performance improvement over its predecessor.

alphabet2025:1d77750c1c0cd767b1715ba642b8fe6e1cba2877ae1e5e23fcb2a4551b52a303 · reported_fact

Original source, physical page 3

We’re
now shipping Ironwood, our seventh-generation TPU,
which delivers a 10x performance improvement over
its predecessor

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

A note from Sundar, April 2026
To our Shareholders,
2025 was a tremendous year for Alphabet.
We delivered our first-ever $100 billion quarter
in Q3 and saw our annual revenues exceed $400
billion for the first time. We saw strong momentum
across our entire business, including Search, Google
Cloud—which ended the year with an annual run
rate of over $70 billion—and YouTube, whose annual
revenues surpassed $60 billion across Ads and
Subscriptions. Meanwhile, consumer subscriptions
exceeded 325 million. We ended 2025 in a great
position, driven by our AI-first strategy and our
differentiated, full-stack approach.
AI Infrastructure
Our unrivaled technical infrastructure serves as the
bedrock of our AI stack. We are scaling our physical
infrastructure at a stunning pace: In 2026, we plan
to invest around $180 billion in total capex, doubled
from $90 billion last year, and 6x increase in just
four years. We offer the industry’s widest variety of
compute options to our Cloud customers, including
the latest NVIDIA GPUs and our own custom TPUs that
we have been developing for over a decade. We’re
now shipping Ironwood, our seventh-generation TPU,
which delivers a 10x performance improvement over
its predecessor, and we’ve announced TPU 8, coming
later this year. In March 2025 we announced our intent
to acquire Wiz, and the deal was finalized in March
2026. It’s our largest acquisition in our history, and an
investment by Google Cloud to improve cloud security
and enable organizations to build fast and securely
across any cloud or AI platform.

World-Class Research and Models
Our world-class research and models continue to
lead the industry. In December, we launched Gemini 3,
which drove the state of the art in reasoning and
multimodal understanding and swept AI leaderboards.
We also boast the world’s most extensive generative
media model portfolio, including our leading video
model Veo 3.1 and the viral image model sensation
Nano Banana. In our Q4 2025 earnings we shared
that our first party models like Gemini processed over
10 billion tokens per minute via direct API use by our
customers, up from 7 billion the quarter prior.
Our deep computer science roots are accelerating
discoveries, from our Gemma models being used
for cancer research to our Willow quantum chip,
which achieved a new milestone last year with the
first verifiable instance of a quantum computer
outperforming a regular supercomputer on a
computation that paves the way for future practical
applications. This momentum in quantum computing
is built on foundational science, highlighted by our
chief scientist for quantum hardware, Michel Devoret,
being awarded the Nobel Prize in Physics for his early
research—the third Googler to receive a Nobel Prize
in just the last two years.
→

Michel Devoret, Google Quantum AI’s Chief Scientist of

Quantum Hardware, is a 2025 Nobel laureate alongside
former Quantum AI hardware lead John Martinis, and

John Clarke of the University of California, Berkeley.

Annual Report 2025

1

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Alphabet announced TPU 8 as coming later this year.

alphabet2025:78b85c94ecb90bdc7e5dfa8c0ecdd627ec3effab1f41984166e79a5044cdf8c7 · forecast

Original source, physical page 3

we’ve announced TPU 8, coming
later this year.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

A note from Sundar, April 2026
To our Shareholders,
2025 was a tremendous year for Alphabet.
We delivered our first-ever $100 billion quarter
in Q3 and saw our annual revenues exceed $400
billion for the first time. We saw strong momentum
across our entire business, including Search, Google
Cloud—which ended the year with an annual run
rate of over $70 billion—and YouTube, whose annual
revenues surpassed $60 billion across Ads and
Subscriptions. Meanwhile, consumer subscriptions
exceeded 325 million. We ended 2025 in a great
position, driven by our AI-first strategy and our
differentiated, full-stack approach.
AI Infrastructure
Our unrivaled technical infrastructure serves as the
bedrock of our AI stack. We are scaling our physical
infrastructure at a stunning pace: In 2026, we plan
to invest around $180 billion in total capex, doubled
from $90 billion last year, and 6x increase in just
four years. We offer the industry’s widest variety of
compute options to our Cloud customers, including
the latest NVIDIA GPUs and our own custom TPUs that
we have been developing for over a decade. We’re
now shipping Ironwood, our seventh-generation TPU,
which delivers a 10x performance improvement over
its predecessor, and we’ve announced TPU 8, coming
later this year. In March 2025 we announced our intent
to acquire Wiz, and the deal was finalized in March
2026. It’s our largest acquisition in our history, and an
investment by Google Cloud to improve cloud security
and enable organizations to build fast and securely
across any cloud or AI platform.

World-Class Research and Models
Our world-class research and models continue to
lead the industry. In December, we launched Gemini 3,
which drove the state of the art in reasoning and
multimodal understanding and swept AI leaderboards.
We also boast the world’s most extensive generative
media model portfolio, including our leading video
model Veo 3.1 and the viral image model sensation
Nano Banana. In our Q4 2025 earnings we shared
that our first party models like Gemini processed over
10 billion tokens per minute via direct API use by our
customers, up from 7 billion the quarter prior.
Our deep computer science roots are accelerating
discoveries, from our Gemma models being used
for cancer research to our Willow quantum chip,
which achieved a new milestone last year with the
first verifiable instance of a quantum computer
outperforming a regular supercomputer on a
computation that paves the way for future practical
applications. This momentum in quantum computing
is built on foundational science, highlighted by our
chief scientist for quantum hardware, Michel Devoret,
being awarded the Nobel Prize in Physics for his early
research—the third Googler to receive a Nobel Prize
in just the last two years.
→

Michel Devoret, Google Quantum AI’s Chief Scientist of

Quantum Hardware, is a 2025 Nobel laureate alongside
former Quantum AI hardware lead John Martinis, and

John Clarke of the University of California, Berkeley.

Annual Report 2025

1

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Alphabet reported that first-party models including Gemini processed over 10 billion tokens per minute through direct customer API use.

alphabet2025:1469512211113068aa7280b98b5ae6ef6d62bbe60a2193d32ddc5992aec39191 · reported_fact

Original source, physical page 3

In our Q4 2025 earnings we shared
that our first party models like Gemini processed over
10 billion tokens per minute via direct API use by our
customers, up from 7 billion the quarter prior.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

A note from Sundar, April 2026
To our Shareholders,
2025 was a tremendous year for Alphabet.
We delivered our first-ever $100 billion quarter
in Q3 and saw our annual revenues exceed $400
billion for the first time. We saw strong momentum
across our entire business, including Search, Google
Cloud—which ended the year with an annual run
rate of over $70 billion—and YouTube, whose annual
revenues surpassed $60 billion across Ads and
Subscriptions. Meanwhile, consumer subscriptions
exceeded 325 million. We ended 2025 in a great
position, driven by our AI-first strategy and our
differentiated, full-stack approach.
AI Infrastructure
Our unrivaled technical infrastructure serves as the
bedrock of our AI stack. We are scaling our physical
infrastructure at a stunning pace: In 2026, we plan
to invest around $180 billion in total capex, doubled
from $90 billion last year, and 6x increase in just
four years. We offer the industry’s widest variety of
compute options to our Cloud customers, including
the latest NVIDIA GPUs and our own custom TPUs that
we have been developing for over a decade. We’re
now shipping Ironwood, our seventh-generation TPU,
which delivers a 10x performance improvement over
its predecessor, and we’ve announced TPU 8, coming
later this year. In March 2025 we announced our intent
to acquire Wiz, and the deal was finalized in March
2026. It’s our largest acquisition in our history, and an
investment by Google Cloud to improve cloud security
and enable organizations to build fast and securely
across any cloud or AI platform.

World-Class Research and Models
Our world-class research and models continue to
lead the industry. In December, we launched Gemini 3,
which drove the state of the art in reasoning and
multimodal understanding and swept AI leaderboards.
We also boast the world’s most extensive generative
media model portfolio, including our leading video
model Veo 3.1 and the viral image model sensation
Nano Banana. In our Q4 2025 earnings we shared
that our first party models like Gemini processed over
10 billion tokens per minute via direct API use by our
customers, up from 7 billion the quarter prior.
Our deep computer science roots are accelerating
discoveries, from our Gemma models being used
for cancer research to our Willow quantum chip,
which achieved a new milestone last year with the
first verifiable instance of a quantum computer
outperforming a regular supercomputer on a
computation that paves the way for future practical
applications. This momentum in quantum computing
is built on foundational science, highlighted by our
chief scientist for quantum hardware, Michel Devoret,
being awarded the Nobel Prize in Physics for his early
research—the third Googler to receive a Nobel Prize
in just the last two years.
→

Michel Devoret, Google Quantum AI’s Chief Scientist of

Quantum Hardware, is a 2025 Nobel laureate alongside
former Quantum AI hardware lead John Martinis, and

John Clarke of the University of California, Berkeley.

Annual Report 2025

1

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Alphabet reported that AI Overviews reached over 2 billion monthly users in more than 200 countries.

alphabet2025:9fdc48be2004c134e01f369189392361747ad8e9e790b30bd609c1d82a96deb7 · reported_fact

Original source, physical page 4

In 2025, AI Overviews scaled
to over 2 billion monthly users in more than 200
countries

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Products and Platforms
We are bringing generative AI to billions of people
through our products. In Search, AI is driving an
expansionary moment. In 2025, AI Overviews scaled
to over 2 billion monthly users in more than 200
countries, and in the U.S., we saw daily AI Mode
queries per user double since launch as of Q4 2025.
Our Gemini App has seen incredible growth, reaching
over 750 million monthly active users by the end of
2025. In Q4 2025, we announced that nearly 75%
of Google Cloud customers had used our vertically
optimized AI. At that time, we had sold more than 8
million paid seats for Gemini Enterprise in only a few
months’ time. Beyond our core platforms, Waymo’s
momentum is in overdrive, surpassing 20 million fully
autonomous trips in December 2025, as it looks to
expand to new cities across the U.S., UK, and Japan.
Wing and Isomorphic Labs are also tackling important
challenges, and we continue to manage and invest in
Other Bets responsibly.

Google CEO Sundar Pichai announces Gemini Enterprise

at Google Cloud’s Gemini at Work event in October 2025.

On a personal note, I was proud to mark 10 years
as CEO of Google in 2025. My first decisions as CEO
were to pivot the company to be AI-first and to grow
sustainable businesses. Amazing to see the incredible
progress with AI and our businesses since then.
To give a sense of progress, in 2015 all of Alphabet’s
revenue added up to $75 billion. YouTube and Cloud
alone ended 2024 at an annual run rate of $110 billion.
As we look to 2026, we remain laser-focused on
pushing the next frontiers of foundation models
to make AI helpful for everyone: intelligence,
personalization, and agents.
First, model intelligence will continue to accelerate.
With Gemini 3, we are already seeing glimmers of
future capabilities today, unlocking state-of-the-art
reasoning, natively multimodal understanding,
and the ability to process massive contexts.
Second, we are rolling out Personal Intelligence
across products like AI Mode, the Gemini app, Gemini
in Chrome and more. With features like Personalized
Smart Replies in Gmail, our models can use relevant
context across your Google apps to capture your
unique tone and style—always in a way that is private,
transparent, and fully under your control.
Finally, 2026 is officially the year of the agent.
AI agents turn our consumer and enterprise products
into collaborators that can take complex actions on
your behalf. Today, nearly 75% of all new code at
Google is AI-generated and approved by engineers,
up from 50% last fall. We’re also laying the
groundwork for agentic commerce. In January we
introduced the Universal Commerce Protocol (UCP),
an open standard built with industry leaders, so
different agents and systems can work together
easily across the web. Much more to come!
We are just at the beginning of a period of hyperprogress. We will continue to focus on our mission,
building products people love, and responsibly
advancing this technology so it benefits everyone.
Thank you for your continued support.

- Sundar

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Alphabet reported that daily AI Mode queries per user doubled since launch as of Q4 2025 in the U.S.

alphabet2025:68a34cd147c32a1773bb4293f1b1d719e146de8642dab7716d5aa0ee40909bfe · reported_fact

Original source, physical page 4

in the U.S., we saw daily AI Mode
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Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Google CEO Sundar Pichai announces Gemini Enterprise

at Google Cloud’s Gemini at Work event in October 2025.

- Sundar

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Alphabet reported that the Gemini App reached over 750 million monthly active users by the end of 2025.

alphabet2025:6b0b8a8b015643eca7b6d8f916e1ba9cdfa991bcbc90c0a199cfa4769ff22d1c · reported_fact

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Our Gemini App has seen incredible growth, reaching
over 750 million monthly active users by the end of
2025.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Google CEO Sundar Pichai announces Gemini Enterprise

at Google Cloud’s Gemini at Work event in October 2025.

- Sundar

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Alphabet reported nearly 75% of Google Cloud customers had used its vertically optimized AI and that Gemini Enterprise had more than 8 million paid seats.

alphabet2025:30fdc0e0a37470c4da77eb14e77d85bca2a49a9b3d1dd3f89cc4d004573c71c4 · reported_fact

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million paid seats for Gemini Enterprise in only a few
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Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Google CEO Sundar Pichai announces Gemini Enterprise

at Google Cloud’s Gemini at Work event in October 2025.

- Sundar

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  "excerpt": "In Q4 2025, we announced that nearly 75%\nof Google Cloud customers had used our vertically\noptimized AI. At that time, we had sold more than 8\nmillion paid seats for Gemini Enterprise in only a few\nmonths’ time.",
  "page": 4,
  "section": "Products and Platforms",
  "target_date": "Q4 2025",
  "numeric_target": "nearly 75%; more than 8 million",
  "unit": "Google Cloud customers; Gemini Enterprise paid seats",
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Alphabet reported that Waymo surpassed 20 million fully autonomous trips in December 2025.

alphabet2025:b8495b4a03af2e6dd865528e0deb59417b9a3862c3abd1b10145689ee1b069e5 · reported_fact

Original source, physical page 4

Waymo’s
momentum is in overdrive, surpassing 20 million fully
autonomous trips in December 2025

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Google CEO Sundar Pichai announces Gemini Enterprise

at Google Cloud’s Gemini at Work event in October 2025.

- Sundar

Unchanged extraction record

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Alphabet described Waymo as looking to expand to new cities across the U.S., UK, and Japan.

alphabet2025:1f7c975519b64a230564dca7d476c601a062d89bf6adc30c101882ebda042437 · forecast

Original source, physical page 4

as it looks to
expand to new cities across the U.S., UK, and Japan.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Google CEO Sundar Pichai announces Gemini Enterprise

at Google Cloud’s Gemini at Work event in October 2025.

- Sundar

Unchanged extraction record

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Alphabet stated an aspiration to advance foundation models to make AI helpful through intelligence, personalization, and agents.

alphabet2025:8c720319b5df6d8f287bd05721260af0a5fd9898b70a68b97b1d2cfc4e558e98 · aspiration

Original source, physical page 4

As we look to 2026, we remain laser-focused on
pushing the next frontiers of foundation models
to make AI helpful for everyone: intelligence,
personalization, and agents.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Google CEO Sundar Pichai announces Gemini Enterprise

at Google Cloud’s Gemini at Work event in October 2025.

- Sundar

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Alphabet reported that nearly 75% of new code at Google was AI-generated and approved by engineers, up from 50% last fall.

alphabet2025:57a93d2cf05837f97d06b03b2943de52d5619c251af6cdabae99b1dded690936 · reported_fact

Original source, physical page 4

Today, nearly 75% of all new code at
Google is AI-generated and approved by engineers,
up from 50% last fall.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Google CEO Sundar Pichai announces Gemini Enterprise

at Google Cloud’s Gemini at Work event in October 2025.

- Sundar

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Alphabet stated that it aims to build advanced, safe, and responsible AI through a full-stack approach.

alphabet2025:3511f697442bb76278b4119f66357d7e08fcbe5b915c01644e4ee4b2cf16a3bb · aspiration

Original source, physical page 9

We aim to build the most advanced, safe, and responsible AI through our full-stack
approach, which spans AI-optimized infrastructure; world-class research, including models and tooling; and our products
and platforms that bring AI to billions of people, developers, and enterprises.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Item 1. Business
Overview

As our founders Larry and Sergey wrote in the original founders’ letter, “Google is not a conventional company. We do not
intend to become one.” That unconventional spirit has been a driving force throughout our history, inspiring us to tackle big
problems and invest in moonshots. It led us to be a pioneer in the development of artificial intelligence (AI) and, since 2016,
be an AI-first company. We continue this work under the leadership of Alphabet and Google CEO, Sundar Pichai.
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Supporting these businesses,
we have centralized certain AI-related research and development focused on advanced research in AI and developing
the frontier models that serve our businesses, which is reported in Alphabet-level activities. Alphabet’s structure is about
helping each of our businesses prosper through strong leaders and independence.

Access and Technology for Everyone

We are focused on building an even more helpful Google for everyone, and we aspire to give everyone the tools they need
to increase their knowledge, health, happiness, and success. Google Search helps people find information and make sense
of the world in more natural and intuitive ways, with trillions of searches on Google every year. YouTube provides people
with entertainment, information, and opportunities to learn something new and helps support the creator economy through
the YouTube Partner Program. Google Cloud helps customers build for the future, improve productivity, reduce costs, and
unlock new growth engines. We continually innovate and build new products and features to help our users, partners,
customers, and communities and have invested more than $200 billion in research and development in the last five years in
support of these efforts.

Making AI Helpful for Everyone

We believe AI is a profound platform shift that can bring meaningful and positive change to people and societies across
the world, and to our business. We aim to build the most advanced, safe, and responsible AI through our full-stack
approach, which spans AI-optimized infrastructure; world-class research, including models and tooling; and our products
and platforms that bring AI to billions of people, developers, and enterprises.

At the foundation of our full-stack approach is our AI-optimized infrastructure — a key differentiator enabling us to power
our own products, such as Search and YouTube, and support the services we provide to our Google Cloud customers.
Our technical infrastructure allows us to use and offer our customers a range of AI accelerator options, including
specialized Graphics Processing Units (GPUs) and our own custom-built Tensor Processing Units (TPUs), such as
Ironwood, our seventh-generation TPU. We are focused on driving efficiencies in our data centers, allowing us to leverage
our technical infrastructure to deliver our products and services at an increasing scale while simultaneously enabling
world-class research and model development.

Over the last decade, our research teams have pushed the boundaries of AI forward, which is displayed through Gemini 3,
our most intelligent AI model yet. Designed to deliver advanced multimodal understanding, Gemini 3 represents our most
capable iteration of agentic and generative coding technologies. Gemini 3 integrates enhanced reasoning capabilities
to support visualizations and interactive user experiences across our product ecosystem, including Search and the
Gemini app.

Alphabet 2025 Annual Report

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Alphabet reported more than $200 billion of research and development investment in the last five years.

alphabet2025:6b9b450aeaf9c2f5d2a81b04e0997d10cc78d713f12799e0b4ec6331bb88340d · reported_fact

Original source, physical page 9

We continually innovate and build new products and features to help our users, partners,
customers, and communities and have invested more than $200 billion in research and development in the last five years in
support of these efforts.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Item 1. Business
Overview

As our founders Larry and Sergey wrote in the original founders’ letter, “Google is not a conventional company. We do not
intend to become one.” That unconventional spirit has been a driving force throughout our history, inspiring us to tackle big
problems and invest in moonshots. It led us to be a pioneer in the development of artificial intelligence (AI) and, since 2016,
be an AI-first company. We continue this work under the leadership of Alphabet and Google CEO, Sundar Pichai.
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Supporting these businesses,
we have centralized certain AI-related research and development focused on advanced research in AI and developing
the frontier models that serve our businesses, which is reported in Alphabet-level activities. Alphabet’s structure is about
helping each of our businesses prosper through strong leaders and independence.

Access and Technology for Everyone

Making AI Helpful for Everyone

Alphabet 2025 Annual Report

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Alphabet reported that all 15 of its half-billion-user products use Gemini models, including seven with two billion users.

alphabet2025:9a6e0fd91f9a54700cb38f7e51b8ae0c5709d367811c7e6d8d557e2542554faa · reported_fact

Original source, physical page 10

Today, all 15 of our half-billion-user
products — including seven with two billion users — use our Gemini models.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

As technology continues to improve rapidly, we are focused on bringing our latest AI advances to our products and
platforms. We continue to help our users access information and knowledge, express themselves, and get things done by
embedding the power of generative AI and Gemini into our products and platforms. Today, all 15 of our half-billion-user
products — including seven with two billion users — use our Gemini models. For our Google Cloud customers, our offerings
are helping organizations stay at the forefront of innovation with solutions such as Gemini Enterprise and Gemini for
Google Workspace.
Guided by our AI principles, we believe our approach to AI must be both bold and responsible. That means developing AI in
a way that maximizes the positive benefits to society while addressing its potential challenges.

Moonshots

Our early investments in AI started out as moonshots but are now incorporated into our core products and central to future
developments. In Other Bets, our fully autonomous driving technology company, Waymo, is now providing fully autonomous,
paid ride-hailing services to customers in multiple cities. Isomorphic Labs is reimagining the drug discovery process from
first principles, applying AI to accelerate the development of new medicines. We continue to look toward the future and
to invest for the long term, most notably for the application of AI to our products and services, as well as other frontier
technologies such as quantum computing.

Privacy and Security

We make it a priority to protect the privacy and security of our products, users, and customers, even if there are near-term
financial consequences. We do this by continuously investing in building products that are secure by default; strictly
upholding responsible data practices that emphasize privacy by design; and building easy-to-use settings that put people
in control. We are continually enhancing these efforts over time, whether by enabling users to auto-delete their data,
applying privacy technologies like on-device processing, giving people tools to control their experience, or advancing
anti-malware, anti-phishing, and password security features.

Google

For reporting purposes Google comprises two segments: Google Services and Google Cloud.

Google Services
Serving Our Users

We have always been committed to building helpful products that can improve the lives of millions of people worldwide.
Our product innovations are what make our services widely used, and our brand one of the most recognized in the world.
Google Services’ core products and platforms include ads, Android, Chrome, devices, Gmail, Google Drive, Google Gemini,
Google Maps, Google Photos, Google Play, Search, and YouTube, with broad and growing adoption by users around
the world.

Our products and services have come a long way since the company was founded more than 25 years ago. While Google
Search started as a way to find web pages, organized into ten blue links, we have driven technical advancements and
product innovations that have transformed Google Search into a dynamic, multimodal experience. Large language models
have made it possible to express more natural language queries, vastly improving the types of questions users can ask, and
the quality of results. For example, AI Overviews makes it easier to ask Google anything and get a helpful response. AI Mode
allows users to ask more nuanced questions that might have previously taken multiple searches, using Gemini’s advanced
reasoning, thinking, and multimodal capabilities.
This drive to make information more accessible and helpful has led us over the years to improve the discovery and creation
of digital content both on the web and through platforms like Google Play and YouTube. People are consuming many forms
of digital content, including watching long and short form videos and podcasts, streaming TV, playing games, listening
to music, reading books, and using apps. Working with content creators and partners, we continue to build new ways for
people around the world to create and find great digital content.
2

Alphabet 2025 Annual Report

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Alphabet reported that online advertising generated more than 70% of total revenue in 2025.

alphabet2025:50efd6d640a8a54ad96b50dfa5ce3297f38cac2e045887617cb5783b9fcb67f7 · reported_fact

Original source, physical page 14

We generated more than 70% of total revenues from online advertising in 2025.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Available Information

Our website is located at www.abc.xyz, and our investor relations website is located at www.abc.xyz/investor. Access to our
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our Proxy Statements,
and any amendments to these reports, is available on our investor relations website, free of charge, after we file or furnish
them with the SEC and they are available on the SEC’s website at www.sec.gov.
We webcast our earnings calls, as well as certain events we participate in or host with members of the investment
community, via our investor relations YouTube channel and website. Our investor relations website also provides
notifications of news or announcements regarding our financial performance and other items that may be material or
of interest to our investors, including SEC filings, investor events, press and earnings releases, and blogs. We also share
Google news and product updates on Google’s Keyword blog at https://www.blog.google/ and News From Google page
on X at x.com/NewsFromGoogle, and our executive officers may also use certain social media channels, such as X and
LinkedIn, to communicate information about earnings results and company updates, which may be of interest or material
to our investors. Further, corporate governance information, including our certificate of incorporation, bylaws, corporate
governance guidelines, board committee charters, and code of conduct, is also available on our investor relations website
under the heading “Governance.” The information contained on, or that may be accessed through our websites or our
executive officers’ social media channels, is not incorporated by reference into this Annual Report on Form 10-K or in any
other report or document we file with the SEC, and any references to our websites are intended to be inactive textual
references only.

Item 1A. Risk Factors

Our operations and financial results are subject to various risks and uncertainties, including but not limited to those
described below, which could harm our business, reputation, financial condition, and operating results, and may affect the
trading price and price volatility of our Class A and Class C stock.

Risks Specific to our Company

We generate a significant portion of our revenues from advertising. Reduced spending by advertisers,
a loss of partners, shifts in online advertising, new and evolving advertising formats, or new or existing
technologies that block ads online or affect our ability to personalize ads could harm our business.

We generated more than 70% of total revenues from online advertising in 2025. Many of our advertisers, companies
that distribute our products and services, digital publishers, and content providers can terminate their contracts with us
at any time. These partners may not continue to do business with us if we do not create more value (such as increased
numbers of users or customers, new sales leads, increased brand awareness, or more effective monetization) than their
available alternatives.

We believe AI is quickly reshaping the advertising industry, including how ads are delivered online, and we and our
competitors are constantly adjusting to meet this shift and provide new and evolving advertising formats. There is no
assurance that we will adapt effectively and competitively to meet this shift, and that such advertising formats, strategies,
and offerings will be successful.
Changes to our advertising policies and data privacy practices, as well as changes to other companies’ advertising or
data privacy practices have in the past, and may in the future, affect the advertising services that we are able to provide.
In addition, technologies have been developed that make personalized ads more difficult, or that block the display of
ads altogether, and some providers of online services have integrated technologies that could impair the availability and
functionality of third-party digital advertising. Failing to provide superior value or deliver advertisements effectively and
competitively could harm our business, reputation, financial condition, and operating results.

Expenditures by advertisers tend to correlate with overall economic conditions. Adverse macroeconomic conditions have
affected, and may in the future affect, the demand for advertising, resulting in fluctuations in the amounts our advertisers
spend on advertising, which could harm our financial condition and operating results.

6

Alphabet 2025 Annual Report

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Alphabet disclosed that scaling technical infrastructure is increasingly constrained by power, water, land, and energy availability for AI compute.

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Our ability to scale our technical infrastructure is increasingly constrained by the availability of power, water, and land.
For example, energy supply is constrained globally due to the significant increase in demand for and limited availability
of energy to power AI compute.

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We have experienced and may in the future experience supply shortages, price increases, quality issues, or longer lead
times that could harm our operations, driven by raw material or component availability, manufacturing capacity, labor
shortages, industry allocations, logistics capacity, inflation, foreign currency exchange rates, tariffs, sanctions and export
controls, trade disputes and barriers, forced labor concerns, sourcing requirements, geopolitical tensions, armed conflicts,
natural disasters or pandemics, the effects of climate change, power and transmission availability, and significant changes
in the financial or business condition of our suppliers. Some of the components we use in our technical infrastructure
and our devices are available from only one or limited sources, and we may not be able to find replacement vendors on
favorable terms in the event of a supply chain disruption. A significant supply interruption that affects us or our vendors
could delay critical data center or network infrastructure upgrades or expansions and delay consumer product availability.

Our ability to scale our technical infrastructure is increasingly constrained by the availability of power, water, and land.
For example, energy supply is constrained globally due to the significant increase in demand for and limited availability
of energy to power AI compute. Securing this capacity involves entering into complex, long-lead-time arrangements.
Additionally, manufacturing and supply of servers and network equipment for our technical infrastructure, particularly
for specialized AI chips, is limited to a small number of qualified suppliers. Extended or unforeseen disruptions at these
suppliers could impact our ability to meet customer demand. Failure to secure sufficient capacity in a timely manner would
limit our ability to train models and serve Cloud customers.
We may enter into long-term contracts for materials and products that commit us to significant terms and conditions.
We may face costs for materials and products that are not consumed due to market demand, technological change,
excess or obsolete inventory, changed consumer preferences, quality, product recalls, and warranty issues. Certain of our
competitors may negotiate more favorable contractual terms based on volume and other commitments that may provide
them with competitive advantages and may affect our supply. For example, industry supply capacity for AI accelerators,
including GPUs as well as our custom-built TPUs, is highly competitive and rapidly evolving. If we are unable to negotiate
favorable contractual terms or our competitors claim the supply or capacity first, we may face increased costs and supply
constraints, which could harm our business, financial condition, and operating results.

Our devices have had, and in the future may have, quality issues resulting from design, manufacturing, or operations.
Sometimes, these issues may be caused by components we purchase from other manufacturers or suppliers. In addition,
quality issues with equipment used in our technical infrastructure could constrain our capacity to support the delivery
and continued development of our products and services. If the quality of our products and services does not meet
expectations, we lack the capacity to deliver them, or our products or services are defective or require a corrective action
or recall, it could harm our business, reputation, financial condition, and operating results.

We require our suppliers and business partners to comply with laws and, where applicable, our company policies and
practices, such as the Google Supplier Code of Conduct, regarding workplace and employment practices, data security,
environmental compliance, and intellectual property licensing, but we do not control them or their practices. Violations of
law or unethical business practices could result in supply chain disruptions, canceled orders, harm to key relationships, and
damage to our reputation. Their failure to procure necessary license rights to intellectual property could affect our ability to
sell our products or services and expose us to litigation or financial claims.

Interruption to, interference with, or failure of our complex information technology and communications
systems could hurt our ability to effectively provide our products and services, which could harm our
reputation, financial condition, and operating results.

The availability of our products and services and fulfillment of our customer contracts depend on the continuing operation
of our information technology and communications systems. Our systems are vulnerable to damage, interference, or
interruption from modifications or upgrades, terrorist attacks, state-sponsored attacks, natural disasters or pandemics,
geopolitical tensions or armed conflicts, export controls and sanctions, tariffs and non-tariff trade barriers, the effects
of climate change, power and transmission availability challenges, utility outages, telecommunications failures, computer
viruses, software bugs, cyber attacks, supply-chain attacks, computer denial of service attacks, phishing schemes, or
other attempts to harm or access our systems. Some of our data centers are located in areas with a high risk of major
earthquakes or other natural disasters. Our data centers are also subject to break-ins, sabotage, and intentional acts
of vandalism, and, in some cases, to potential disruptions resulting from problems experienced by facility operators or
disruptions as a result of geopolitical tensions and conflicts happening in the area. Some of our systems are not fully
redundant, and disaster recovery planning cannot account for all eventualities. The occurrence of a natural disaster
or pandemic, closure of a facility, or other unanticipated problems affecting our data centers could result in lengthy
10

Alphabet 2025 Annual Report

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Alphabet disclosed potential risks from AI-enabled products and services, including harmful content, inaccuracies, discrimination, privacy, and cybersecurity issues.

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Our evolving AI-enabled products and services may give rise to risks related to harmful content, inaccuracies,
discrimination, intellectual property infringement or misappropriation, violation of rights of publicity, defamation, data
privacy, cybersecurity, minor protection, and other issues.

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in other income (expense), net (OI&E), which increases the volatility of our OI&E. The unrealized gains and losses or
impairments we record from fair value remeasurements in any particular period may differ significantly from the gains and
losses we ultimately realize on such investments. Changes in fair value on SBC awards are recognized primarily through
operating expenses.

Risks Related to our Industry

Issues in the development and use of AI may result in reputational harm and increased liability exposure.
Our evolving AI-enabled products and services may give rise to risks related to harmful content, inaccuracies,
discrimination, intellectual property infringement or misappropriation, violation of rights of publicity, defamation, data
privacy, cybersecurity, minor protection, and other issues. As a result of these and other challenges associated with
innovative technologies, our implementation of AI systems could subject us to competitive harm, regulatory action, legal
liability (including under new and proposed legislation and regulations), new applications of existing data protection,
privacy, intellectual property, and other laws, and brand or reputational harm.

Some uses of AI will present ethical issues and may have broad effects on society. In order to implement AI responsibly
and minimize unintended harmful effects, we have already devoted and will continue to invest significant resources to
develop, test, and maintain our products and services, but we may not be able to identify or resolve all AI-related issues,
deficiencies, and failures before they arise. Unintended consequences, uses, or customization of our AI tools and systems
may negatively affect human rights, privacy, employment, or other social concerns, which may result in claims, lawsuits,
brand or reputational harm, and increased regulatory scrutiny, any of which could harm our business, financial condition,
and operating results.

People access our products and services through a variety of platforms and devices that continue to
evolve with the advancement of technology and user preferences. If manufacturers and users do not
widely adopt versions of our products and services developed for these interfaces, our business could
be harmed.

While the modalities used to access information is evolving, people access our products and services through a growing
variety of devices such as phones, laptops and tablets, video game consoles, voice-activated speakers, wearables
(including virtual reality and augmented reality devices), automobiles, and television-streaming devices. Our products
and services may be less popular on some interfaces. Each manufacturer or distributor may establish unique technical
standards for its devices, and our products and services may not be available or may only be available with limited
functionality for our users or our advertisers on these devices as a result. Some manufacturers may also elect not to
include our products on their devices.

It is hard to predict the challenges we may encounter in adapting our products and services and developing competitive
new products and services. We expect to continue to devote significant resources to creating and supporting products and
services across multiple platforms and devices. Failing to attract and retain a substantial number of device manufacturers,
suppliers, distributors, developers, and users, or failing to develop products and technologies that work well on new
devices and platforms, could harm our business, financial condition, and operating results and ability to capture future
business opportunities.

Problematic content on our platforms, including low-quality user-generated content, web spam, content
farms, and other violations of our guidelines could affect the quality of our services, which could harm our
reputation and deter our current and potential users from using our products and services.
We, like others in the industry, face violations of our content guidelines across our platforms, including sophisticated
attempts by bad actors to manipulate our hosting and advertising systems to fraudulently generate revenues, or to
otherwise generate traffic that does not represent genuine user interest or intent. While we invest significantly in efforts to
promote high-quality and relevant results and to detect and prevent low-quality content and invalid traffic, we have been
unable and may continue to be unable to detect and prevent all such abuses or promote uniformly high-quality content.
Increased use of AI in our offerings and internal systems may create new instances of problematic content and increased
potential for misuse and abuse.

Many websites violate or attempt to violate our guidelines, including by seeking to inappropriately rank higher in search
results than our search engine’s assessment of their relevance and utility would rank them. Such efforts have affected, and
may continue to affect, the quality of content on our platforms and lead them to display false, misleading, or undesirable
12

Alphabet 2025 Annual Report

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Alphabet disclosed a final judgment requiring remedies in the Search case and stated that Alphabet, the DOJ, and state Attorneys General had appealed aspects of the matter.

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in December 2025, entered a final judgment requiring remedies, which, among other
things, imposes restrictions on how we distribute our services and requires us to share certain search data with and
offer syndication services to certain competitors. In January 2026, we appealed the final judgment and moved to pause
implementation of certain remedies. In February 2026, the DOJ and state Attorneys General also appealed.

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For example, the DOJ and a number of state Attorneys General filed a lawsuit concerning our Search and Search
advertising practices and our compliance with US antitrust laws. In August 2024, the US District Court for the District of
Columbia ruled against Google, and in December 2025, entered a final judgment requiring remedies, which, among other
things, imposes restrictions on how we distribute our services and requires us to share certain search data with and
offer syndication services to certain competitors. In January 2026, we appealed the final judgment and moved to pause
implementation of certain remedies. In February 2026, the DOJ and state Attorneys General also appealed.

Furthermore, in December 2020, a number of state Attorneys General, led by the Texas Attorney General, filed a lawsuit
in the US District Court for the Eastern District of Texas concerning our advertising technology and our compliance with
US antitrust laws and other laws. In January 2023, the DOJ and a number of state Attorneys General sued in the Eastern
District of Virginia alleging similar antitrust violations relating to our advertising technology. In April 2025, the presiding
judge issued a mixed decision in the DOJ case against us, ruling that neither our advertiser tools nor the DoubleClick and
AdMeld acquisitions were anticompetitive, but that our publisher tools unfairly excluded rivals. A separate proceeding
to determine remedies, the range of which varies widely, took place in September 2025 with the parties presenting
differing remedy proposals. The DOJ’s remedy proposal includes structural remedies that could harm our business.
Closing arguments were held in November 2025, and we are awaiting a final judgment. After that judgment, we plan to
appeal the adverse portion of the April 2025 decision and potentially aspects of the remedies decision. A trial in the state
Attorneys General case in the Eastern District of Texas will take place after a decision on remedies is issued in the DOJ
advertising technology case, and could result in remedies that could harm our business, reputation, financial condition, and
operating results.
In addition to these regulatory proceedings, private individual and collective actions that overlap with claims pursued by
regulators are pending in the US and in several other jurisdictions. Adverse results in these or similar future lawsuits may
include awards of monetary damages and remedies that could harm our business, reputation, financial condition, and
operating results.

Other regulatory agencies in the US and around the world, including competition enforcers, consumer protection agencies,
and data protection authorities, have challenged and may continue to challenge our business practices and compliance
with laws and regulations. We are cooperating with these investigations and defending litigation or appealing decisions
where appropriate.
We are also subject to a variety of claims including product warranty, product liability, and consumer protection claims
related to product defects, among other litigation, and we may also be subject to claims involving health and safety,
hazardous materials usage, other environmental effects, AI training, development, and commercialization, or service
disruptions or failures. Claims have been brought, and we expect will continue to be brought, against us for defamation,
negligence, breaches of contract, patent, copyright, and trademark infringement, unfair competition, unlawful activity,
torts, privacy rights violations, fraud, or other legal theories based on the nature and content of information available on
or via our services, the design and effect of our products and services, or due to our involvement in hosting, transmitting,
marketing, branding, or providing access to content created by third parties.

Various laws, regulations, investigations, enforcement lawsuits, and regulatory actions have involved in the past, and may in
the future result in substantial fines and penalties, injunctive relief, ongoing monitoring and auditing obligations, changes to
our products and services, alterations to our business models and operations, including divestiture, and collateral related
civil litigation or other adverse consequences. Any of these legal proceedings could also result in legal costs, diversion of
management resources, and negative publicity, all of which could harm our business, reputation, financial condition, and
operating results.
Estimating liabilities for our pending proceedings is a complex, fact-specific, and speculative process that requires
significant judgment, and the amounts we are ultimately liable for may differ from our estimates. The resolution of one or
more such proceedings has resulted in, and may in the future result in, additional substantial fines, penalties, injunctions,
and other sanctions that could harm our business, reputation, financial condition, and operating results.

For additional information about the ongoing material legal proceedings to which we are subject, see Legal Proceedings in
Item 3 of this Annual Report on Form 10-K.

Alphabet 2025 Annual Report

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Alphabet reported no material effect on business strategy, operations, or financial condition from cybersecurity threats to date in the disclosure, while providing no assurance about future effects.

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Our business strategy, results of operations and financial condition have not been materially affected by risks from
cybersecurity threats, including as a result of previously identified cybersecurity incidents, but we cannot provide
assurance that they will not be materially affected in the future by such risks or any future material incidents.

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Our ability to compete effectively and our future success depend on our continuing to identify, hire, develop, motivate,
and retain highly skilled personnel for all areas of our organization. Competition in our industry for qualified employees,
particularly AI talent, is intense, and certain of our competitors have directly targeted, and may continue to target, our
employees. In addition, our compensation arrangements, such as our equity award programs, may not always be successful
in attracting new employees and retaining and motivating our existing employees. Immigration policy and regulatory
changes, and uncertainty regarding such policies and regulations, may also affect our ability to hire, mobilize, or retain
some of our global talent. All of our executive officers and key employees are at-will employees, and we do not maintain
any key-person life insurance policies.
We believe that our corporate culture fosters innovation, creativity, and teamwork. As our organization grows and evolves,
we may need to adapt our corporate culture and work environments to ever-changing circumstances, and these changes
could affect our ability to compete effectively or have an adverse effect on our corporate culture.

Item 1B. Unresolved Staff Comments
Not applicable.

Item 1C. Cybersecurity

We maintain a comprehensive process for identifying, assessing, and managing material risks from cybersecurity threats
as part of our broader risk management system and processes. For example, some risks include our software supply
chain and other third-party dependencies, vulnerabilities in our products and services, theft of our intellectual property,
and attempts to compromise our infrastructure. We obtain input, as appropriate, for our cybersecurity risk management
program on the security industry and threat trends from multiple external experts and internal threat intelligence teams.
Teams of dedicated privacy, safety, and security professionals oversee cybersecurity risk management and mitigation,
incident prevention, detection, and remediation. These teams comprise professionals with deep cybersecurity expertise
across multiple industries and are led by our Vice President of Privacy, Safety, and Security, who has more than 20 years
of experience, including roles in technology infrastructure for two other large public companies. Our executive leadership
team, along with input from the above teams, are responsible for our overall enterprise risk management system and
processes and regularly consider cybersecurity risks in the context of other material risks to the company.

As part of our cybersecurity risk management process, our incident management teams track and log privacy and security
incidents across Alphabet, our vendors, and other third-party service providers to remediate and resolve any such
incidents. Significant incidents are reviewed regularly by a cross-functional working group to determine whether further
escalation is appropriate. Any incident assessed as potentially being or potentially becoming material is promptly escalated
for further assessment, and then reported to designated members of our senior management. We consult with outside
counsel as appropriate, including on materiality analysis and disclosure matters, and our senior management makes the
final materiality determinations and disclosure and other compliance decisions. Our management apprises Alphabet’s
independent public accounting firm of relevant matters and developments.
The Risk and Compliance Committee has oversight responsibility for risks and incidents relating to cybersecurity threats,
including compliance with disclosure requirements, cooperation with law enforcement, and related effects on financial and
other risks, and it reports any findings and recommendations, as appropriate, to the full Board for consideration. Senior
management regularly discusses cybersecurity risks and trends and, should they arise, any material incidents with the Risk
and Compliance Committee. Internal Audit maintains a dedicated cybersecurity auditing team that independently tests our
cybersecurity controls.
Our business strategy, results of operations and financial condition have not been materially affected by risks from
cybersecurity threats, including as a result of previously identified cybersecurity incidents, but we cannot provide
assurance that they will not be materially affected in the future by such risks or any future material incidents. For more
information on our cybersecurity related risks, see Item 1A Risk Factors of this Annual Report on Form 10-K.

Alphabet 2025 Annual Report

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Alphabet expected AI user engagement to continue benefiting business and revenue, while different monetization and competition could affect revenue growth and margins.

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We expect that this evolution, including user engagement with AI products and services, will
continue to benefit our business and our revenues. As we continue to incorporate AI into our products and services, such as
with AI Overviews and AI Mode in Search, and with enterprise AI solutions on our Google Cloud Platform, we may monetize
differently than our historical consumer and enterprise offerings which could affect revenue growth rates and margin
trends.

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Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with “Note
about Forward-Looking Statements,” Part I, Item 1 “Business,” Part I, Item 1A “Risk Factors,” and our consolidated financial
statements and related notes included under Item 8 of this Annual Report on Form 10-K.
The following section generally discusses 2025 results compared to 2024 results. Discussion of 2024 results compared to
2023 results to the extent not included in this report can be found in Item 7 of our 2024 Annual Report on Form 10-K.

Understanding Alphabet’s Financial Results

Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Supporting these businesses,
we have centralized certain AI-related research and development focused on advanced research in AI and developing
the frontier models that serve our businesses, which is reported in Alphabet-level activities. For further details on our
segments, see Part I, Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of
this Annual Report on Form 10-K.

Trends in Our Business and Financial Effect

The following long-term trends have contributed to the results of our consolidated operations, and we anticipate that they
will continue to affect our future results:
• As we continue to grow our business and meet the evolving behaviors and needs of our users and customers,
our revenue growth and mix along with our cost and margin profiles are being influenced by a number of factors,
including:

Expanded AI Offerings in our Products and Services: The continuing evolution of the online world has contributed to
the growth of our business. We expect that this evolution, including user engagement with AI products and services, will
continue to benefit our business and our revenues. As we continue to incorporate AI into our products and services, such as
with AI Overviews and AI Mode in Search, and with enterprise AI solutions on our Google Cloud Platform, we may monetize
differently than our historical consumer and enterprise offerings which could affect revenue growth rates and margin
trends. When developing new products and services we generally focus first on user experience and then on monetization.
At the same time, we face increasing competition, including from other developers and providers of AI products and
services, which may affect our revenues.
Increasing Revenues Beyond Advertising: Revenues from cloud, consumer subscriptions, platforms, and devices, which
may have differing characteristics than our advertising revenues, have grown over time. Certain of these revenues have
been growing at a rate higher than our advertising revenues, becoming a larger percentage of our consolidated revenues,
and we expect this trend to continue. The margins on these revenues vary significantly and are generally lower than the
margins on our advertising revenues.

Increased Investment in Technical Infrastructure: We continue to invest in capital expenditures as we scale our technical
infrastructure, in particular for AI, to meet the demand of our users and enterprise customers and to support research
internally. We invested heavily in capital expenditures in 2025 and in 2026, we expect to significantly increase, relative
to 2025, our investment in our technical infrastructure, including servers and network equipment, and data centers. The
costs associated with operating our technical infrastructure - depreciation, energy, equipment, and network capacity are expected to significantly increase as developing and serving AI offerings require more compute power than our
historical consumer and enterprise offerings. While our technical infrastructure costs increase, we expect to continue
to drive efficiencies in our data centers, for example, through the design of our AI models and our TPU and GPU-based
technical infrastructure.

Continued Investment in Intellectual Property through R&D and Acquisitions: We continue to make significant research
and development investments in areas of strategic focus as we seek to develop new, innovative offerings, and improve our
existing offerings across our businesses. Acquisitions and strategic investments remain important elements in our use of
capital and contribute to the breadth and depth of our offerings, expand our expertise in engineering and other functional
areas, and build strong partnerships around strategic initiatives.
26

Alphabet 2025 Annual Report

Unchanged extraction record

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Alphabet expected investment in technical infrastructure to increase significantly in 2026 relative to 2025, with related operating costs also expected to increase significantly.

alphabet2025:cfc9303c7d18eca32c0948b69f1ecd69d9c0d42aff2320ad471dff3fdeab5995 · forecast

Original source, physical page 34

in 2026, we expect to significantly increase, relative
to 2025, our investment in our technical infrastructure, including servers and network equipment, and data centers. The
costs associated with operating our technical infrastructure - depreciation, energy, equipment, and network capacity are expected to significantly increase as developing and serving AI offerings require more compute power than our
historical consumer and enterprise offerings.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with “Note
about Forward-Looking Statements,” Part I, Item 1 “Business,” Part I, Item 1A “Risk Factors,” and our consolidated financial
statements and related notes included under Item 8 of this Annual Report on Form 10-K.
The following section generally discusses 2025 results compared to 2024 results. Discussion of 2024 results compared to
2023 results to the extent not included in this report can be found in Item 7 of our 2024 Annual Report on Form 10-K.

Understanding Alphabet’s Financial Results

Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Supporting these businesses,
we have centralized certain AI-related research and development focused on advanced research in AI and developing
the frontier models that serve our businesses, which is reported in Alphabet-level activities. For further details on our
segments, see Part I, Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of
this Annual Report on Form 10-K.

Trends in Our Business and Financial Effect

The following long-term trends have contributed to the results of our consolidated operations, and we anticipate that they
will continue to affect our future results:
• As we continue to grow our business and meet the evolving behaviors and needs of our users and customers,
our revenue growth and mix along with our cost and margin profiles are being influenced by a number of factors,
including:

Expanded AI Offerings in our Products and Services: The continuing evolution of the online world has contributed to
the growth of our business. We expect that this evolution, including user engagement with AI products and services, will
continue to benefit our business and our revenues. As we continue to incorporate AI into our products and services, such as
with AI Overviews and AI Mode in Search, and with enterprise AI solutions on our Google Cloud Platform, we may monetize
differently than our historical consumer and enterprise offerings which could affect revenue growth rates and margin
trends. When developing new products and services we generally focus first on user experience and then on monetization.
At the same time, we face increasing competition, including from other developers and providers of AI products and
services, which may affect our revenues.
Increasing Revenues Beyond Advertising: Revenues from cloud, consumer subscriptions, platforms, and devices, which
may have differing characteristics than our advertising revenues, have grown over time. Certain of these revenues have
been growing at a rate higher than our advertising revenues, becoming a larger percentage of our consolidated revenues,
and we expect this trend to continue. The margins on these revenues vary significantly and are generally lower than the
margins on our advertising revenues.

Increased Investment in Technical Infrastructure: We continue to invest in capital expenditures as we scale our technical
infrastructure, in particular for AI, to meet the demand of our users and enterprise customers and to support research
internally. We invested heavily in capital expenditures in 2025 and in 2026, we expect to significantly increase, relative
to 2025, our investment in our technical infrastructure, including servers and network equipment, and data centers. The
costs associated with operating our technical infrastructure - depreciation, energy, equipment, and network capacity are expected to significantly increase as developing and serving AI offerings require more compute power than our
historical consumer and enterprise offerings. While our technical infrastructure costs increase, we expect to continue
to drive efficiencies in our data centers, for example, through the design of our AI models and our TPU and GPU-based
technical infrastructure.

Continued Investment in Intellectual Property through R&D and Acquisitions: We continue to make significant research
and development investments in areas of strategic focus as we seek to develop new, innovative offerings, and improve our
existing offerings across our businesses. Acquisitions and strategic investments remain important elements in our use of
capital and contribute to the breadth and depth of our offerings, expand our expertise in engineering and other functional
areas, and build strong partnerships around strategic initiatives.
26

Alphabet 2025 Annual Report

Unchanged extraction record

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Alphabet expected revenues from cloud, consumer subscriptions, platforms, and devices to continue growing faster than advertising revenues and become a larger percentage of consolidated revenue, while generally carrying lower margins.

alphabet2025:6d159c2b29c16e49e712cdd0a149c5cbf9d7c7594476c13d7df8f9cdd33842ba · forecast

Original source, physical page 34

Certain of these revenues have
been growing at a rate higher than our advertising revenues, becoming a larger percentage of our consolidated revenues,
and we expect this trend to continue. The margins on these revenues vary significantly and are generally lower than the
margins on our advertising revenues.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with “Note
about Forward-Looking Statements,” Part I, Item 1 “Business,” Part I, Item 1A “Risk Factors,” and our consolidated financial
statements and related notes included under Item 8 of this Annual Report on Form 10-K.
The following section generally discusses 2025 results compared to 2024 results. Discussion of 2024 results compared to
2023 results to the extent not included in this report can be found in Item 7 of our 2024 Annual Report on Form 10-K.

Understanding Alphabet’s Financial Results

Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Supporting these businesses,
we have centralized certain AI-related research and development focused on advanced research in AI and developing
the frontier models that serve our businesses, which is reported in Alphabet-level activities. For further details on our
segments, see Part I, Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of
this Annual Report on Form 10-K.

Trends in Our Business and Financial Effect

The following long-term trends have contributed to the results of our consolidated operations, and we anticipate that they
will continue to affect our future results:
• As we continue to grow our business and meet the evolving behaviors and needs of our users and customers,
our revenue growth and mix along with our cost and margin profiles are being influenced by a number of factors,
including:

Expanded AI Offerings in our Products and Services: The continuing evolution of the online world has contributed to
the growth of our business. We expect that this evolution, including user engagement with AI products and services, will
continue to benefit our business and our revenues. As we continue to incorporate AI into our products and services, such as
with AI Overviews and AI Mode in Search, and with enterprise AI solutions on our Google Cloud Platform, we may monetize
differently than our historical consumer and enterprise offerings which could affect revenue growth rates and margin
trends. When developing new products and services we generally focus first on user experience and then on monetization.
At the same time, we face increasing competition, including from other developers and providers of AI products and
services, which may affect our revenues.
Increasing Revenues Beyond Advertising: Revenues from cloud, consumer subscriptions, platforms, and devices, which
may have differing characteristics than our advertising revenues, have grown over time. Certain of these revenues have
been growing at a rate higher than our advertising revenues, becoming a larger percentage of our consolidated revenues,
and we expect this trend to continue. The margins on these revenues vary significantly and are generally lower than the
margins on our advertising revenues.

Increased Investment in Technical Infrastructure: We continue to invest in capital expenditures as we scale our technical
infrastructure, in particular for AI, to meet the demand of our users and enterprise customers and to support research
internally. We invested heavily in capital expenditures in 2025 and in 2026, we expect to significantly increase, relative
to 2025, our investment in our technical infrastructure, including servers and network equipment, and data centers. The
costs associated with operating our technical infrastructure - depreciation, energy, equipment, and network capacity are expected to significantly increase as developing and serving AI offerings require more compute power than our
historical consumer and enterprise offerings. While our technical infrastructure costs increase, we expect to continue
to drive efficiencies in our data centers, for example, through the design of our AI models and our TPU and GPU-based
technical infrastructure.

Continued Investment in Intellectual Property through R&D and Acquisitions: We continue to make significant research
and development investments in areas of strategic focus as we seek to develop new, innovative offerings, and improve our
existing offerings across our businesses. Acquisitions and strategic investments remain important elements in our use of
capital and contribute to the breadth and depth of our offerings, expand our expertise in engineering and other functional
areas, and build strong partnerships around strategic initiatives.
26

Alphabet 2025 Annual Report

Unchanged extraction record

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Alphabet expected traffic acquisition costs to increase as advertising revenue grows and stated that the TAC rate would continue to be affected by several mix and contractual factors.

alphabet2025:950a6fca596b5d1767dd6f7ac4dd364d4ab033a39748d12eb13474ec0f201389 · forecast

Original source, physical page 35

We expect traffic acquisition costs (“TAC”) paid to our distribution
partners and Google Network partners to increase as our advertising revenues grow. Our overall TAC as a percentage
of our advertising revenues (“TAC rate”) has been decreasing primarily due to a revenue mix shift from Google Network
properties to Google Search & other properties. Our TAC rate will continue to be affected by changes in device mix;
geographic mix; partner agreement terms; partner mix; the percentage of queries channeled through paid access points;
product mix; the relative revenue growth rates of advertising revenues from different channels; and revenue share terms.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Traffic Acquisition Costs Growth and Rate Changes: We expect traffic acquisition costs (“TAC”) paid to our distribution
partners and Google Network partners to increase as our advertising revenues grow. Our overall TAC as a percentage
of our advertising revenues (“TAC rate”) has been decreasing primarily due to a revenue mix shift from Google Network
properties to Google Search & other properties. Our TAC rate will continue to be affected by changes in device mix;
geographic mix; partner agreement terms; partner mix; the percentage of queries channeled through paid access points;
product mix; the relative revenue growth rates of advertising revenues from different channels; and revenue share terms.
• We have raised capital through external financing in the form of debt and we may continue to seek debt or other
forms of financing in the future to support our capital and operating needs.

In 2025, we raised capital through the issuance of debt and we expect to continue to assess the use of debt and other
forms of financing in the future. We expect to continue to enter into finance leases, primarily for data centers. Additionally,
in 2025, we provided credit support, such as through backstops and guarantees, to certain infrastructure related
counterparties and may continue to provide additional credit support in the future.

• We face an evolving regulatory environment, and we are subject to claims, lawsuits, investigations, and other forms
of potential legal liability, which could affect our business practices and financial results.

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of
topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and caused
us to change our business practices. As the regulatory environment continues to evolve, we may continue to incur fines and
we expect increased costs associated with compliance, modifications to our products and services, and limitations on our
ability to pursue certain business practices. For additional information, see Part I, Item 1A Risk Factors and Legal Matters in
Note 10 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Revenues and Monetization Metrics

We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers of all sizes with infrastructure, platform services, and applications; and sales of other products and
services, such as fees received for subscription-based products, apps and in-app purchases, and devices. For additional
information on how we recognize revenue, see Note 1 of the Notes to Consolidated Financial Statements included in Item 8
of this Annual Report on Form 10-K.

In addition to the long-term trends and their financial effect on our business discussed above, fluctuations in our revenues
have been and may continue to be affected by a combination of factors, including:
• changes in foreign currency exchange rates;

• changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

• general economic conditions and various external dynamics, including geopolitical events, regulations, and other
measures and their effect on advertiser, consumer, and enterprise spending;
• new product, service, and market launches; and
• seasonality.

Additionally, fluctuations in our revenues generated from advertising (“Google advertising”), other sources (“Google
subscriptions, platforms, and devices”), Google Cloud, and Other Bets have been, and may continue to be, affected by
other factors unique to each set of revenues, as described below.

Google Services

Google Services revenues consist of Google advertising as well as Google subscriptions, platforms, and devices revenues.

Google Advertising

Google advertising revenues are comprised of the following:

• Google Search & other, which includes revenues generated on Google search properties (including revenues from traffic
generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.), and
other Google owned and operated properties like Gmail, Google Maps, and Google Play;
Alphabet 2025 Annual Report

27

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  "excerpt": "We expect traffic acquisition costs (“TAC”) paid to our distribution\npartners and Google Network partners to increase as our advertising revenues grow. Our overall TAC as a percentage\nof our advertising revenues (“TAC rate”) has been decreasing primarily due to a revenue mix shift from Google Network\nproperties to Google Search & other properties. Our TAC rate will continue to be affected by changes in device mix;\ngeographic mix; partner agreement terms; partner mix; the percentage of queries channeled through paid access points;\nproduct mix; the relative revenue growth rates of advertising revenues from different channels; and revenue share terms.",
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Alphabet disclosed that regulatory developments and legal matters had resulted in fines and business practice changes, with potential future compliance costs, product changes, and limitations on business practices.

alphabet2025:240b8d8f971872a3038f013a890a4cb3ee6b494ae063f7c11b61f1177780bbac · challenge

Original source, physical page 35

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of
topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and caused
us to change our business practices. As the regulatory environment continues to evolve, we may continue to incur fines and
we expect increased costs associated with compliance, modifications to our products and services, and limitations on our
ability to pursue certain business practices.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Traffic Acquisition Costs Growth and Rate Changes: We expect traffic acquisition costs (“TAC”) paid to our distribution
partners and Google Network partners to increase as our advertising revenues grow. Our overall TAC as a percentage
of our advertising revenues (“TAC rate”) has been decreasing primarily due to a revenue mix shift from Google Network
properties to Google Search & other properties. Our TAC rate will continue to be affected by changes in device mix;
geographic mix; partner agreement terms; partner mix; the percentage of queries channeled through paid access points;
product mix; the relative revenue growth rates of advertising revenues from different channels; and revenue share terms.
• We have raised capital through external financing in the form of debt and we may continue to seek debt or other
forms of financing in the future to support our capital and operating needs.

In 2025, we raised capital through the issuance of debt and we expect to continue to assess the use of debt and other
forms of financing in the future. We expect to continue to enter into finance leases, primarily for data centers. Additionally,
in 2025, we provided credit support, such as through backstops and guarantees, to certain infrastructure related
counterparties and may continue to provide additional credit support in the future.

• We face an evolving regulatory environment, and we are subject to claims, lawsuits, investigations, and other forms
of potential legal liability, which could affect our business practices and financial results.

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of
topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and caused
us to change our business practices. As the regulatory environment continues to evolve, we may continue to incur fines and
we expect increased costs associated with compliance, modifications to our products and services, and limitations on our
ability to pursue certain business practices. For additional information, see Part I, Item 1A Risk Factors and Legal Matters in
Note 10 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Revenues and Monetization Metrics

We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers of all sizes with infrastructure, platform services, and applications; and sales of other products and
services, such as fees received for subscription-based products, apps and in-app purchases, and devices. For additional
information on how we recognize revenue, see Note 1 of the Notes to Consolidated Financial Statements included in Item 8
of this Annual Report on Form 10-K.

In addition to the long-term trends and their financial effect on our business discussed above, fluctuations in our revenues
have been and may continue to be affected by a combination of factors, including:
• changes in foreign currency exchange rates;

• changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

• general economic conditions and various external dynamics, including geopolitical events, regulations, and other
measures and their effect on advertiser, consumer, and enterprise spending;
• new product, service, and market launches; and
• seasonality.

Additionally, fluctuations in our revenues generated from advertising (“Google advertising”), other sources (“Google
subscriptions, platforms, and devices”), Google Cloud, and Other Bets have been, and may continue to be, affected by
other factors unique to each set of revenues, as described below.

Google Services

Google Services revenues consist of Google advertising as well as Google subscriptions, platforms, and devices revenues.

Google Advertising

Google advertising revenues are comprised of the following:

• Google Search & other, which includes revenues generated on Google search properties (including revenues from traffic
generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.), and
other Google owned and operated properties like Gmail, Google Maps, and Google Play;
Alphabet 2025 Annual Report

27

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Alphabet reported 2025 revenue of $402.8 billion, up 15% year over year, driven primarily by Google Services and Google Cloud growth.

alphabet2025:14695ea71f6bb46762ba6ac1cfe632647cbf5ef86994b56f32d247617a98df34 · reported_fact

Original source, physical page 38

Revenues were $402.8 billion, an increase of 15% year over year, primarily driven by an increase in Google Services
revenues of $37.8 billion, or 12%, and an increase in Google Cloud revenues of $15.5 billion, or 36%.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

Part IV

The main components of our sales and marketing expenses are:

• employee compensation expenses for employees engaged in sales and marketing, sales support, and certain customer
service functions; and
• spend relating to our advertising and promotional activities in support of our products and services.
The main components of our general and administrative expenses are:

• employee compensation expenses for employees in finance, human resources, information technology, legal, and other
administrative support functions;
• expenses relating to legal and other matters, including certain fines and settlements; and

• third-party services fees, including audit, consulting, outside legal, and other outsourced administrative services.

Other Income (Expense), Net

OI&E, net primarily consists of interest income (expense), the effect of foreign currency exchange gains (losses), net gains
(losses) and impairment on our marketable and non-marketable securities and income (loss) and impairment from our
equity method investments.

For additional information, including how we account for our investments and factors that can drive fluctuations in the value
of our investments, see Note 1 and Note 3 of the Notes to Consolidated Financial Statements included in Item 8 as well as
Item 7A Quantitative and Qualitative Disclosures About Market Risk of this Annual Report on Form 10-K.

Provision for Income Taxes

Provision for income taxes represents the estimated amount of federal, state, and foreign income taxes incurred in the
US and the many jurisdictions in which we operate. The provision includes the effect of reserve provisions and changes to
reserves that are considered appropriate as well as the related net interest and penalties.

For additional information, including a reconciliation of the US federal statutory rate to our effective tax rate, see Note 14 of
the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Executive Overview

The following table summarizes consolidated financial results (in millions, except for per share information and
percentages):
Year Ended December 31,
2024

2025

Consolidated revenues

$

350,018

$

402,836

$

Operating expenses

$

91,322

$

111,262

$

Cost of revenues

$

Operating income
Operating margin

Other income (expense), net
Net income

Diluted net income per share

(1)

(1)

146,306

$

$

112,390

$

7,425

$

8.04

$

$

$

32%

100,118

$

$

162,535

129,039

32%

$

$

$ Change

% Change

16,229

11%

52,818

19,940

16,649

15%

0%

$

22,362

301%

10.81

$

2.77

34%

132,170

$

32,052

For additional information on the calculation of diluted net income per share, see Note 12 of the Notes to Consolidated Financial
Statements included in Item 8 of this Annual Report on Form 10-K.

Alphabet 2025 Annual Report

22%

29,787

• Revenues were $402.8 billion, an increase of 15% year over year, primarily driven by an increase in Google Services
revenues of $37.8 billion, or 12%, and an increase in Google Cloud revenues of $15.5 billion, or 36%.

30

15%

32%

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Alphabet reported definitive agreements to acquire Wiz for $32.0 billion and Intersect for $4.8 billion in cash plus assumed debt, with both expected to close in 2026 subject to conditions including regulatory approvals.

alphabet2025:a66a67298e7f2e3d82711503ed4ab9996834df27820d4008a03c9bbdbfe7e33d · forecast

Original source, physical page 39

In 2025, we entered into definitive agreements to acquire Wiz, a leading cloud security platform, for $32.0 billion, and
Intersect, a provider of data center and energy infrastructure solutions, for $4.8 billion in cash plus the assumption of
debt. Both acquisitions are expected to close in 2026, subject to customary closing conditions, including the receipt of
regulatory approvals.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

• Cost of revenues was $162.5 billion, an increase of 11% year over year, primarily driven by increases in TAC, content
acquisition costs, and depreciation expense.

• Operating expenses were $111.3 billion, an increase of 22% year over year, primarily driven by increases in employee
compensation expenses, expenses related to legal and other matters, and depreciation expense.

Other Information:

• In 2025, we entered into definitive agreements to acquire Wiz, a leading cloud security platform, for $32.0 billion, and
Intersect, a provider of data center and energy infrastructure solutions, for $4.8 billion in cash plus the assumption of
debt. Both acquisitions are expected to close in 2026, subject to customary closing conditions, including the receipt of
regulatory approvals.

• In 2025, we issued senior unsecured notes for net proceeds of $37.3 billion, to be used for general corporate purposes.
• OI&E of $29.8 billion for the year ended December 31, 2025 included net gains on equity securities of $24.1 billion,
primarily related to unrealized gains on our non-marketable equity securities.

• Other Bets operating loss of $7.5 billion for the year ended December 31, 2025 included a $2.1 billion employee
compensation charge recognized in the fourth quarter for Waymo, primarily reflected in research and development
expenses, based on estimated stock valuation. In February 2026, Waymo announced an investment round of $16.0 billion,
the significant majority of which was funded by Alphabet.
• Changes to U.S. tax law enacted on July 4, 2025, allow, among other things, for immediate expensing of domestic
research and experimentation costs and accelerated depreciation on eligible capital expenditures, the effects of which
are included in operating cash flows for the year ended December 31, 2025.
• Repurchases of Class A and Class C shares were $6.5 billion and $38.9 billion, respectively, totaling $45.4 billion for the
year ended December 31, 2025.
• Operating cash flow was $164.7 billion for the year ended December 31, 2025.

• Capital expenditures, which primarily reflected investments in technical infrastructure, were $91.4 billion for the year
ended December 31, 2025.
• As of December 31, 2025, we had 190,820 employees.

We are monitoring ongoing developments surrounding international trade and the macroeconomic environment. As a result
of volatility in international trade and financial markets, we may experience direct and indirect effects on our business,
operations, and financial results. Our past results may not be indicative of our future performance, and our financial results
may differ materially from historical trends.

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

36,147

Google Cloud

224,532

40,367

264,590

294,691

304,930

342,721

1,648

1,537

48,030

43,229

Other Bets

2025

29,792

40,340

Google Services total

Total revenues

198,084

30,359

Google advertising

Hedging gains (losses)

2024

211

350,018

58,705

(127)

402,836

Alphabet 2025 Annual Report

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Alphabet reported issuing senior unsecured notes for net proceeds of $37.3 billion in 2025.

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Original source, physical page 39

In 2025, we issued senior unsecured notes for net proceeds of $37.3 billion, to be used for general corporate purposes.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

• Cost of revenues was $162.5 billion, an increase of 11% year over year, primarily driven by increases in TAC, content
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Other Information:

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

36,147

Google Cloud

224,532

40,367

264,590

294,691

304,930

342,721

1,648

1,537

48,030

43,229

Other Bets

2025

29,792

40,340

Google Services total

Total revenues

198,084

30,359

Google advertising

Hedging gains (losses)

2024

211

350,018

58,705

(127)

402,836

Alphabet 2025 Annual Report

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Alphabet reported $29.8 billion of other income and expense, including $24.1 billion of net gains on equity securities, primarily unrealized gains on non-marketable securities.

alphabet2025:7663b44ac56b31aeae0a8ab3ef5ac3c1c1f01e69694acf78d9c0f6a5663aa47b · reported_fact

Original source, physical page 39

OI&E of $29.8 billion for the year ended December 31, 2025 included net gains on equity securities of $24.1 billion,
primarily related to unrealized gains on our non-marketable equity securities.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

• Cost of revenues was $162.5 billion, an increase of 11% year over year, primarily driven by increases in TAC, content
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Other Information:

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

36,147

Google Cloud

224,532

40,367

264,590

294,691

304,930

342,721

1,648

1,537

48,030

43,229

Other Bets

2025

29,792

40,340

Google Services total

Total revenues

198,084

30,359

Google advertising

Hedging gains (losses)

2024

211

350,018

58,705

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402,836

Alphabet 2025 Annual Report

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Alphabet reported an Other Bets operating loss of $7.5 billion, including a $2.1 billion Waymo employee compensation charge in the fourth quarter.

alphabet2025:24cfdbacdbe24dcfdcdaada4b1b77088bf11af4a924aa68329faa41362319a03 · reported_fact

Original source, physical page 39

Other Bets operating loss of $7.5 billion for the year ended December 31, 2025 included a $2.1 billion employee
compensation charge recognized in the fourth quarter for Waymo, primarily reflected in research and development
expenses, based on estimated stock valuation.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

• Cost of revenues was $162.5 billion, an increase of 11% year over year, primarily driven by increases in TAC, content
acquisition costs, and depreciation expense.

Other Information:

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

36,147

Google Cloud

224,532

40,367

264,590

294,691

304,930

342,721

1,648

1,537

48,030

43,229

Other Bets

2025

29,792

40,340

Google Services total

Total revenues

198,084

30,359

Google advertising

Hedging gains (losses)

2024

211

350,018

58,705

(127)

402,836

Alphabet 2025 Annual Report

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Alphabet stated that it was monitoring international trade and macroeconomic developments and warned that future financial results may differ materially from historical trends.

alphabet2025:c6bf8b53bcc75a9b054ea9c88ce52ad1e680113b3603db38aa51aa9b1e09c767 · challenge

Original source, physical page 39

We are monitoring ongoing developments surrounding international trade and the macroeconomic environment. As a result
of volatility in international trade and financial markets, we may experience direct and indirect effects on our business,
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Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

• Cost of revenues was $162.5 billion, an increase of 11% year over year, primarily driven by increases in TAC, content
acquisition costs, and depreciation expense.

Other Information:

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

36,147

Google Cloud

224,532

40,367

264,590

294,691

304,930

342,721

1,648

1,537

48,030

43,229

Other Bets

2025

29,792

40,340

Google Services total

Total revenues

198,084

30,359

Google advertising

Hedging gains (losses)

2024

211

350,018

58,705

(127)

402,836

Alphabet 2025 Annual Report

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Google Search & other revenues increased $26.4 billion from 2024 to 2025, driven by search queries, advertiser spending, and ad format and delivery improvements.

alphabet2025:e4208fb23f3a16177a0d9195d7ba12d1f3825f0126747622e96e3ba3b0de3af8 · reported_fact

Original source, physical page 40

Google Search & other revenues increased $26.4 billion from 2024 to 2025. The overall growth was driven by interrelated
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advertiser spending; and improvements we have made in ad formats and delivery.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

Part IV

Google Services
Google Advertising

Google Search & other

Google Search & other revenues increased $26.4 billion from 2024 to 2025. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

YouTube ads

YouTube ads revenues increased $4.2 billion from 2024 to 2025. The growth was driven by our direct response advertising
products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.

Google Network

Google Network revenues decreased $567 million from 2024 to 2025, primarily due to a decrease in AdSense revenues,
partially offset by an increase in AdMob revenues.

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and
cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage,
from 2024 to 2025:
Google Search & other
Paid clicks change

Cost-per-click change

Google Network

Impressions change

Cost-per-impression change

6%
7%
(7)%
7%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $7.7 billion from 2024 to 2025. The growth was primarily
driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid
subscriptions across both YouTube services and Google One.

Google Cloud

Google Cloud revenues increased $15.5 billion from 2024 to 2025, primarily driven by growth in Google Cloud Platform
largely from infrastructure and platform services.

32

Alphabet 2025 Annual Report

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YouTube ads revenues increased $4.2 billion from 2024 to 2025, driven by direct response and brand advertising products.

alphabet2025:d530ac9497b8972a88f77271f5c8456b027e4590422dcea9e2c322dfdc119af0 · reported_fact

Original source, physical page 40

YouTube ads revenues increased $4.2 billion from 2024 to 2025. The growth was driven by our direct response advertising
products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Google Services
Google Advertising

Google Search & other

Google Search & other revenues increased $26.4 billion from 2024 to 2025. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

YouTube ads

YouTube ads revenues increased $4.2 billion from 2024 to 2025. The growth was driven by our direct response advertising
products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.

Google Network

Google Network revenues decreased $567 million from 2024 to 2025, primarily due to a decrease in AdSense revenues,
partially offset by an increase in AdMob revenues.

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and
cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage,
from 2024 to 2025:
Google Search & other
Paid clicks change

Cost-per-click change

Google Network

Impressions change

Cost-per-impression change

6%
7%
(7)%
7%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $7.7 billion from 2024 to 2025. The growth was primarily
driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid
subscriptions across both YouTube services and Google One.

Google Cloud

Google Cloud revenues increased $15.5 billion from 2024 to 2025, primarily driven by growth in Google Cloud Platform
largely from infrastructure and platform services.

32

Alphabet 2025 Annual Report

Unchanged extraction record

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Google Network revenues decreased $567 million from 2024 to 2025, primarily due to lower AdSense revenues.

alphabet2025:90e24a14beb3b7a8abb677037695b5cd241d656fe66392f2da2750147cc2f709 · reported_fact

Original source, physical page 40

Google Network revenues decreased $567 million from 2024 to 2025, primarily due to a decrease in AdSense revenues,
partially offset by an increase in AdMob revenues.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Google Services
Google Advertising

Google Search & other

Google Search & other revenues increased $26.4 billion from 2024 to 2025. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

YouTube ads

YouTube ads revenues increased $4.2 billion from 2024 to 2025. The growth was driven by our direct response advertising
products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.

Google Network

Google Network revenues decreased $567 million from 2024 to 2025, primarily due to a decrease in AdSense revenues,
partially offset by an increase in AdMob revenues.

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and
cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage,
from 2024 to 2025:
Google Search & other
Paid clicks change

Cost-per-click change

Google Network

Impressions change

Cost-per-impression change

6%
7%
(7)%
7%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $7.7 billion from 2024 to 2025. The growth was primarily
driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid
subscriptions across both YouTube services and Google One.

Google Cloud

Google Cloud revenues increased $15.5 billion from 2024 to 2025, primarily driven by growth in Google Cloud Platform
largely from infrastructure and platform services.

32

Alphabet 2025 Annual Report

Unchanged extraction record

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Paid clicks increased 6%, cost per click increased 7%, Network impressions decreased 7%, and cost per impression increased 7% from 2024 to 2025.

alphabet2025:24ed328f6ebe2cf92f06256c2d040919d9a3806a61ec30ce5e6edf2755096163 · reported_fact

Original source, physical page 40

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and
cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage,
from 2024 to 2025:
Google Search & other
Paid clicks change

Cost-per-click change

Google Network

Impressions change

Cost-per-impression change

6%
7%
(7)%
7%

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Google Services
Google Advertising

Google Search & other

Google Search & other revenues increased $26.4 billion from 2024 to 2025. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

YouTube ads

YouTube ads revenues increased $4.2 billion from 2024 to 2025. The growth was driven by our direct response advertising
products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.

Google Network

Google Network revenues decreased $567 million from 2024 to 2025, primarily due to a decrease in AdSense revenues,
partially offset by an increase in AdMob revenues.

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and
cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage,
from 2024 to 2025:
Google Search & other
Paid clicks change

Cost-per-click change

Google Network

Impressions change

Cost-per-impression change

6%
7%
(7)%
7%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $7.7 billion from 2024 to 2025. The growth was primarily
driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid
subscriptions across both YouTube services and Google One.

Google Cloud

Google Cloud revenues increased $15.5 billion from 2024 to 2025, primarily driven by growth in Google Cloud Platform
largely from infrastructure and platform services.

32

Alphabet 2025 Annual Report

Unchanged extraction record

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Google subscriptions, platforms, and devices revenues increased $7.7 billion, primarily from subscription growth across YouTube services and Google One.

alphabet2025:cba0b70b4428fc77b7b95159b3600c3d3e11f6b4a0edc3957ebd2cd5e8ff1fac · reported_fact

Original source, physical page 40

Google subscriptions, platforms, and devices revenues increased $7.7 billion from 2024 to 2025. The growth was primarily
driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid
subscriptions across both YouTube services and Google One.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Google Services
Google Advertising

Google Search & other

Google Search & other revenues increased $26.4 billion from 2024 to 2025. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

YouTube ads

YouTube ads revenues increased $4.2 billion from 2024 to 2025. The growth was driven by our direct response advertising
products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.

Google Network

Google Network revenues decreased $567 million from 2024 to 2025, primarily due to a decrease in AdSense revenues,
partially offset by an increase in AdMob revenues.

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and
cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage,
from 2024 to 2025:
Google Search & other
Paid clicks change

Cost-per-click change

Google Network

Impressions change

Cost-per-impression change

6%
7%
(7)%
7%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $7.7 billion from 2024 to 2025. The growth was primarily
driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid
subscriptions across both YouTube services and Google One.

Google Cloud

Google Cloud revenues increased $15.5 billion from 2024 to 2025, primarily driven by growth in Google Cloud Platform
largely from infrastructure and platform services.

32

Alphabet 2025 Annual Report

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Google Cloud revenues increased $15.5 billion from 2024 to 2025, primarily from Google Cloud Platform infrastructure and platform services.

alphabet2025:0e7e528d6b7abae1a179384360db3a9191e3458a539683d663f306700f201307 · reported_fact

Original source, physical page 40

Google Cloud revenues increased $15.5 billion from 2024 to 2025, primarily driven by growth in Google Cloud Platform
largely from infrastructure and platform services.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Google Services
Google Advertising

Google Search & other

Google Search & other revenues increased $26.4 billion from 2024 to 2025. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

YouTube ads

YouTube ads revenues increased $4.2 billion from 2024 to 2025. The growth was driven by our direct response advertising
products followed by our brand advertising products, both of which benefited from increased spending by our advertisers.

Google Network

Google Network revenues decreased $567 million from 2024 to 2025, primarily due to a decrease in AdSense revenues,
partially offset by an increase in AdMob revenues.

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and
cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage,
from 2024 to 2025:
Google Search & other
Paid clicks change

Cost-per-click change

Google Network

Impressions change

Cost-per-impression change

6%
7%
(7)%
7%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $7.7 billion from 2024 to 2025. The growth was primarily
driven by an increase in subscriptions revenues. This increase was primarily due to the contribution from growth in paid
subscriptions across both YouTube services and Google One.

Google Cloud

Google Cloud revenues increased $15.5 billion from 2024 to 2025, primarily driven by growth in Google Cloud Platform
largely from infrastructure and platform services.

32

Alphabet 2025 Annual Report

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Research and development expenses increased $11.8 billion to $61.087 billion, or 15% of revenues, primarily from employee compensation and depreciation.

alphabet2025:a9b2a31d90fec3f85d9c7b09d6b9b21627ce8a0910eb123a8f88d244664fde9b · reported_fact

Original source, physical page 41

Research and development expenses increased $11.8 billion from 2024 to 2025, primarily driven by increases in employee
compensation expenses of $6.9 billion and depreciation expense of $2.4 billion. The increase in employee compensation
expenses was primarily driven by an increase in SBC expenses of $4.2 billion, which included an increase in a valuation-based
compensation charge related to Waymo.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Revenues by Geography

The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of
our customers:
Year Ended December 31,
United States
EMEA

APAC

29%

29%

6%

6%

48%

16%

(1)
(1)

Hedging gains (losses)

(1)

2025

49%

(1)

Other Americas

2024

17%

0%

0%

Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (“Other Americas”).

For additional information, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Costs and Expenses
Cost of Revenues

The following table presents cost of revenues, including TAC (in millions, except percentages):
Year Ended December 31,
TAC

$

Total cost of revenues

$

Other cost of revenues

Total cost of revenues as a percentage of revenues

2024

54,900

$

146,306

$

91,406

2025

59,926

102,609

162,535

42%

40%

Cost of revenues increased $16.2 billion from 2024 to 2025 due to an increase in other cost of revenues and TAC of
$11.2 billion and $5.0 billion, respectively.

The increase in TAC from 2024 to 2025 was largely due to an increase in TAC paid to distribution partners, primarily driven
by growth in revenues subject to TAC. The TAC rate decreased from 20.7% to 20.3% from 2024 to 2025, primarily due to a
revenue mix shift from Google Network properties to Google Search & other properties. The TAC rates on Google Search &
other and Google Network revenues were substantially consistent from 2024 to 2025.
The increase in other cost of revenues from 2024 to 2025 was primarily due to increases in content acquisition costs,
largely for YouTube, depreciation expense, and other technical infrastructure operations costs.

Research and Development

The following table presents research and development expenses (in millions, except percentages):
Year Ended December 31,
Research and development expenses

Research and development expenses as a percentage of revenues

$

2024

49,326

14%

$

2025

61,087

15%

Research and development expenses increased $11.8 billion from 2024 to 2025, primarily driven by increases in employee
compensation expenses of $6.9 billion and depreciation expense of $2.4 billion. The increase in employee compensation
expenses was primarily driven by an increase in SBC expenses of $4.2 billion, which included an increase in a valuation-based
compensation charge related to Waymo.
Alphabet 2025 Annual Report

33

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General and administrative expenses increased $7.3 billion, primarily due to legal and other matters, including a $3.5 billion EC fine and a $1.4 billion legal accrual.

alphabet2025:95364d81ab9d50988bff35adf3c5c9c0ffdb32667376476a6dddc3ba13510647 · reported_fact

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General and administrative expenses increased $7.3 billion from 2024 to 2025, primarily driven by an increase in expenses
related to legal and other matters of $6.2 billion, largely the result of the $3.5 billion EC fine accrued in the third quarter of
2025 and a $1.4 billion legal accrual made in the second quarter of 2025.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Sales and Marketing

The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
Sales and marketing expenses

Sales and marketing expenses as a percentage of revenues

$

2024

27,808

8%

$

2025

28,693

7%

Sales and marketing expenses increased $885 million from 2024 to 2025, primarily driven by an increase in advertising and
promotional activities of $1.2 billion, partially offset by a decrease in employee compensation expenses of $214 million.

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
General and administrative expenses

General and administrative expenses as a percentage of revenues

$

2024

14,188

4%

$

2025

21,482

5%

General and administrative expenses increased $7.3 billion from 2024 to 2025, primarily driven by an increase in expenses
related to legal and other matters of $6.2 billion, largely the result of the $3.5 billion EC fine accrued in the third quarter of
2025 and a $1.4 billion legal accrual made in the second quarter of 2025.

Segment Profitability

We report our segment results as Google Services, Google Cloud, and Other Bets. Additionally, certain costs are not
allocated to our segments because they represent Alphabet-level activities. For further details on our segments, see Part I,
Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on
Form 10-K.
The following table presents segment operating income (loss) (in millions):

Year Ended December 31,
2024

Operating income (loss):
Google Services

$

Google Cloud
Other Bets

Alphabet-level activities
(1)

6,112

$

(4,444)

(1)

Total income from operations

121,263

$

(10,541)

112,390

Alphabet-level activities primarily reflect expenses related to our shared AI research and development.

2025
139,404

13,910

(7,515)

$

(16,760)

129,039

Google Services

Google Services operating income increased $18.1 billion from 2024 to 2025. The increase in operating income was primarily
driven by an increase in revenues, partially offset by an increase in expenses related to legal and other matters, TAC, and
content acquisition costs.

Google Cloud

Google Cloud operating income increased $7.8 billion from 2024 to 2025. The increase in operating income was primarily
driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure and employee
compensation expenses.
34

Alphabet 2025 Annual Report

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alphabet2025:9c3f866f5f9bfb5cb809c17d4ad79001177a9851a5f1c35a6b3793426b31a5be · reported_fact

Original source, physical page 42

Google Services operating income increased $18.1 billion from 2024 to 2025. The increase in operating income was primarily
driven by an increase in revenues, partially offset by an increase in expenses related to legal and other matters, TAC, and
content acquisition costs.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Sales and Marketing

The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
Sales and marketing expenses

Sales and marketing expenses as a percentage of revenues

$

2024

27,808

8%

$

2025

28,693

7%

Sales and marketing expenses increased $885 million from 2024 to 2025, primarily driven by an increase in advertising and
promotional activities of $1.2 billion, partially offset by a decrease in employee compensation expenses of $214 million.

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
General and administrative expenses

General and administrative expenses as a percentage of revenues

$

2024

14,188

4%

$

2025

21,482

5%

General and administrative expenses increased $7.3 billion from 2024 to 2025, primarily driven by an increase in expenses
related to legal and other matters of $6.2 billion, largely the result of the $3.5 billion EC fine accrued in the third quarter of
2025 and a $1.4 billion legal accrual made in the second quarter of 2025.

Segment Profitability

We report our segment results as Google Services, Google Cloud, and Other Bets. Additionally, certain costs are not
allocated to our segments because they represent Alphabet-level activities. For further details on our segments, see Part I,
Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on
Form 10-K.
The following table presents segment operating income (loss) (in millions):

Year Ended December 31,
2024

Operating income (loss):
Google Services

$

Google Cloud
Other Bets

Alphabet-level activities
(1)

6,112

$

(4,444)

(1)

Total income from operations

121,263

$

(10,541)

112,390

Alphabet-level activities primarily reflect expenses related to our shared AI research and development.

2025
139,404

13,910

(7,515)

$

(16,760)

129,039

Google Services

Google Services operating income increased $18.1 billion from 2024 to 2025. The increase in operating income was primarily
driven by an increase in revenues, partially offset by an increase in expenses related to legal and other matters, TAC, and
content acquisition costs.

Google Cloud

Google Cloud operating income increased $7.8 billion from 2024 to 2025. The increase in operating income was primarily
driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure and employee
compensation expenses.
34

Alphabet 2025 Annual Report

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Original source, physical page 42

Google Cloud operating income increased $7.8 billion from 2024 to 2025. The increase in operating income was primarily
driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure and employee
compensation expenses.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Sales and Marketing

The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
Sales and marketing expenses

Sales and marketing expenses as a percentage of revenues

$

2024

27,808

8%

$

2025

28,693

7%

Sales and marketing expenses increased $885 million from 2024 to 2025, primarily driven by an increase in advertising and
promotional activities of $1.2 billion, partially offset by a decrease in employee compensation expenses of $214 million.

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
General and administrative expenses

General and administrative expenses as a percentage of revenues

$

2024

14,188

4%

$

2025

21,482

5%

General and administrative expenses increased $7.3 billion from 2024 to 2025, primarily driven by an increase in expenses
related to legal and other matters of $6.2 billion, largely the result of the $3.5 billion EC fine accrued in the third quarter of
2025 and a $1.4 billion legal accrual made in the second quarter of 2025.

Segment Profitability

We report our segment results as Google Services, Google Cloud, and Other Bets. Additionally, certain costs are not
allocated to our segments because they represent Alphabet-level activities. For further details on our segments, see Part I,
Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on
Form 10-K.
The following table presents segment operating income (loss) (in millions):

Year Ended December 31,
2024

Operating income (loss):
Google Services

$

Google Cloud
Other Bets

Alphabet-level activities
(1)

6,112

$

(4,444)

(1)

Total income from operations

121,263

$

(10,541)

112,390

Alphabet-level activities primarily reflect expenses related to our shared AI research and development.

2025
139,404

13,910

(7,515)

$

(16,760)

129,039

Google Services

Google Services operating income increased $18.1 billion from 2024 to 2025. The increase in operating income was primarily
driven by an increase in revenues, partially offset by an increase in expenses related to legal and other matters, TAC, and
content acquisition costs.

Google Cloud

Google Cloud operating income increased $7.8 billion from 2024 to 2025. The increase in operating income was primarily
driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure and employee
compensation expenses.
34

Alphabet 2025 Annual Report

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Other Bets operating loss increased $3.1 billion from 2024 to 2025, primarily due to higher employee compensation expenses related to Waymo.

alphabet2025:c94d677cd8261b8be14c24ff84f3c3c64a4afc868382c3bc3e3c36eb68b0f230 · challenge

Original source, physical page 43

Other Bets operating loss increased $3.1 billion from 2024 to 2025. The increase in operating loss was primarily driven by an
increase in employee compensation expenses largely due to an increase in a valuation-based compensation charge related
to Waymo.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Other Bets

Other Bets operating loss increased $3.1 billion from 2024 to 2025. The increase in operating loss was primarily driven by an
increase in employee compensation expenses largely due to an increase in a valuation-based compensation charge related
to Waymo.

Other Income (Expense), Net

The following table presents OI&E, (in millions):
Year Ended December 31,
Interest income

Interest expense

2024

4,482

(268)

Foreign currency exchange gain (loss), net

(409)

Gain (loss) on debt securities, net

Income (loss) and impairment from equity method investments, net
Other income (expense), net

(736)
540

3,714

24,080

1,137

1,667

(188)

4,337

(382)

(1,043)

Gain (loss) on equity securities, net

Other

2025

7,425

281

29,787

OI&E, net increased $22.4 billion from 2024 to 2025, primarily due to increases in net unrealized gains on equity securities
resulting from fair value adjustments on non-marketable equity securities.
For additional information, see Note 3 and Note 7 of the Notes to Consolidated Financial Statements included in Item 8 of
this Annual Report on Form 10-K.

Provision for Income Taxes

The following table presents provision for income taxes (in millions, except effective tax rate):
Year Ended December 31,
Income before provision for income taxes
Provision for income taxes
Effective tax rate

2024

119,815

19,697

16.4%

2025

158,826

26,656

16.8%

The effective tax rate increased from 2024 to 2025. This increase was primarily due to a decrease in the US Federal Foreign
Derived Intangible Income tax deduction, a non-deductible EC fine and legal settlement in the US, partially offset by
changes in prior period tax positions.
Changes to US tax law enacted on July 4, 2025, allow for immediate expensing of domestic research and experimentation
costs, accelerated depreciation on eligible capital expenditures, and other tax law changes impacting 2025 with certain
changes effective in 2026. These changes are reflected in our results for the year ended December 31, 2025.

The OECD is coordinating negotiations among more than 140 countries with the goal of achieving consensus around
substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of
15%. Some countries have already implemented the legislation effective January 1, 2024. This did not have a material effect
on our income tax provision for the 2025 fiscal year.

In January 2026, the OECD introduced new guidance including a “Side-by-Side Safe Harbor” which, if elected, exempts
U.S. domestic operations from being taxed by global minimum tax rules. However, it does not exempt foreign subsidiaries
from local minimum tax requirements if implemented. As more countries enact these global minimum tax rules, our effective
tax rate and cash tax payments could increase.
Alphabet 2025 Annual Report

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Other income and expense, net increased $22.4 billion, primarily due to net unrealized gains on non-marketable equity securities.

alphabet2025:d5fd14f7243aaec605fb59f558eead7eec9ca505fe679e104e404d3eece8c17a · reported_fact

Original source, physical page 43

OI&E, net increased $22.4 billion from 2024 to 2025, primarily due to increases in net unrealized gains on equity securities
resulting from fair value adjustments on non-marketable equity securities.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Other Bets

Other Income (Expense), Net

The following table presents OI&E, (in millions):
Year Ended December 31,
Interest income

Interest expense

2024

4,482

(268)

Foreign currency exchange gain (loss), net

(409)

Gain (loss) on debt securities, net

Income (loss) and impairment from equity method investments, net
Other income (expense), net

(736)
540

3,714

24,080

1,137

1,667

(188)

4,337

(382)

(1,043)

Gain (loss) on equity securities, net

Other

2025

7,425

281

29,787

Provision for Income Taxes

2024

119,815

19,697

16.4%

2025

158,826

26,656

16.8%

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The effective tax rate increased from 16.4% to 16.8%, while the income tax provision increased from $19.697 billion to $26.656 billion.

alphabet2025:8234ef156704e974b37501aa7b22df82b6c884b109ef6164b1e05f8b4a805ece · reported_fact

Original source, physical page 43

The effective tax rate increased from 2024 to 2025. This increase was primarily due to a decrease in the US Federal Foreign
Derived Intangible Income tax deduction, a non-deductible EC fine and legal settlement in the US, partially offset by
changes in prior period tax positions.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Other Bets

Other Income (Expense), Net

The following table presents OI&E, (in millions):
Year Ended December 31,
Interest income

Interest expense

2024

4,482

(268)

Foreign currency exchange gain (loss), net

(409)

Gain (loss) on debt securities, net

Income (loss) and impairment from equity method investments, net
Other income (expense), net

(736)
540

3,714

24,080

1,137

1,667

(188)

4,337

(382)

(1,043)

Gain (loss) on equity securities, net

Other

2025

7,425

281

29,787

Provision for Income Taxes

2024

119,815

19,697

16.4%

2025

158,826

26,656

16.8%

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Cash, cash equivalents, and short-term marketable securities totaled $126.8 billion as of December 31, 2025.

alphabet2025:a4221d9e810e4934569c07ce42c11f1dc6b83c23210b804817c937a99d4a3006 · reported_fact

Original source, physical page 44

As of December 31, 2025, we had $126.8 billion in cash, cash equivalents, and short-term marketable securities.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part II

Part III

Part IV

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

As of December 31, 2025, we had $126.8 billion in cash, cash equivalents, and short-term marketable securities. Cash
equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government
bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.

Sources, Uses of Cash and Related Trends

Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow that we
generate from operations. The primary use of capital continues to be to invest for the long-term growth of the business.
We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to stockholders.
The following table presents cash flows (in millions):

Year Ended December 31,
2024

Net cash provided by operating activities

$

125,299

Net cash used in financing activities

$

(79,733)

Net cash used in investing activities

$

(45,536)

$

$

$

2025

164,713

(120,291)
(37,388)

Cash Provided by Operating Activities

Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, YouTube properties, and Google Network properties. In Google Services, we also generate cash through
consumer subscriptions, the sale of apps and in-app purchases, and devices. In Google Cloud, we generate cash through
consumption-based fees and subscriptions for infrastructure, platform, applications, and other cloud services.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners, to
employees for compensation, and to content providers. Other uses of cash from operating activities include payments to
suppliers for devices, to tax authorities for income taxes, and other general corporate expenditures.

Net cash provided by operating activities increased from 2024 to 2025 due to an increase in cash received from customers,
partially offset by an increase in cash payments for cost of revenues and operating expenses.

Cash Used in Investing Activities

Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and
non-marketable securities, purchases of property and equipment, and payments for acquisitions.

Net cash used in investing activities increased from 2024 to 2025, primarily due to an increase in purchases of
property and equipment, driven by investments in technical infrastructure, and a decrease in maturities and sales of
marketable securities.

Cash Used in Financing Activities

Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of
interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, repayments of
debt, net payments related to stock-based award activities, and dividend payments.
Net cash used in financing activities decreased from 2024 to 2025 due to an increase in proceeds from issuance of debt
and a decrease in repurchases of stock, partially offset by repayments of debt.

Liquidity and Material Cash Requirements

We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months, and thereafter for the foreseeable future.
36

Alphabet 2025 Annual Report

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Net cash provided by operating activities increased from 2024 to 2025 due to an increase in cash received from customers,
partially offset by an increase in cash payments for cost of revenues and operating expenses.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

As of December 31, 2025, we had $126.8 billion in cash, cash equivalents, and short-term marketable securities. Cash
equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government
bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.

Sources, Uses of Cash and Related Trends

Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow that we
generate from operations. The primary use of capital continues to be to invest for the long-term growth of the business.
We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to stockholders.
The following table presents cash flows (in millions):

Year Ended December 31,
2024

Net cash provided by operating activities

$

125,299

Net cash used in financing activities

$

(79,733)

Net cash used in investing activities

$

(45,536)

$

$

$

2025

164,713

(120,291)
(37,388)

Cash Provided by Operating Activities

Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, YouTube properties, and Google Network properties. In Google Services, we also generate cash through
consumer subscriptions, the sale of apps and in-app purchases, and devices. In Google Cloud, we generate cash through
consumption-based fees and subscriptions for infrastructure, platform, applications, and other cloud services.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners, to
employees for compensation, and to content providers. Other uses of cash from operating activities include payments to
suppliers for devices, to tax authorities for income taxes, and other general corporate expenditures.

Net cash provided by operating activities increased from 2024 to 2025 due to an increase in cash received from customers,
partially offset by an increase in cash payments for cost of revenues and operating expenses.

Cash Used in Investing Activities

Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and
non-marketable securities, purchases of property and equipment, and payments for acquisitions.

Net cash used in investing activities increased from 2024 to 2025, primarily due to an increase in purchases of
property and equipment, driven by investments in technical infrastructure, and a decrease in maturities and sales of
marketable securities.

Cash Used in Financing Activities

Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of
interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, repayments of
debt, net payments related to stock-based award activities, and dividend payments.
Net cash used in financing activities decreased from 2024 to 2025 due to an increase in proceeds from issuance of debt
and a decrease in repurchases of stock, partially offset by repayments of debt.

Liquidity and Material Cash Requirements

We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months, and thereafter for the foreseeable future.
36

Alphabet 2025 Annual Report

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alphabet2025:bbdff676591c612c061ac6e917c8b3bca5c26610e4cf3f420a2b73d96d74b6ec · aspiration

Original source, physical page 44

The primary use of capital continues to be to invest for the long-term growth of the business.
We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to stockholders.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

As of December 31, 2025, we had $126.8 billion in cash, cash equivalents, and short-term marketable securities. Cash
equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government
bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.

Sources, Uses of Cash and Related Trends

Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow that we
generate from operations. The primary use of capital continues to be to invest for the long-term growth of the business.
We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to stockholders.
The following table presents cash flows (in millions):

Year Ended December 31,
2024

Net cash provided by operating activities

$

125,299

Net cash used in financing activities

$

(79,733)

Net cash used in investing activities

$

(45,536)

$

$

$

2025

164,713

(120,291)
(37,388)

Cash Provided by Operating Activities

Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, YouTube properties, and Google Network properties. In Google Services, we also generate cash through
consumer subscriptions, the sale of apps and in-app purchases, and devices. In Google Cloud, we generate cash through
consumption-based fees and subscriptions for infrastructure, platform, applications, and other cloud services.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners, to
employees for compensation, and to content providers. Other uses of cash from operating activities include payments to
suppliers for devices, to tax authorities for income taxes, and other general corporate expenditures.

Net cash provided by operating activities increased from 2024 to 2025 due to an increase in cash received from customers,
partially offset by an increase in cash payments for cost of revenues and operating expenses.

Cash Used in Investing Activities

Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and
non-marketable securities, purchases of property and equipment, and payments for acquisitions.

Net cash used in investing activities increased from 2024 to 2025, primarily due to an increase in purchases of
property and equipment, driven by investments in technical infrastructure, and a decrease in maturities and sales of
marketable securities.

Cash Used in Financing Activities

Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of
interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, repayments of
debt, net payments related to stock-based award activities, and dividend payments.
Net cash used in financing activities decreased from 2024 to 2025 due to an increase in proceeds from issuance of debt
and a decrease in repurchases of stock, partially offset by repayments of debt.

Liquidity and Material Cash Requirements

We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months, and thereafter for the foreseeable future.
36

Alphabet 2025 Annual Report

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alphabet2025:02e38cbbc4421d96aac985c4ad3a0b696bfaea9b70476f813725e7c56e5844c4 · forecast

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We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months, and thereafter for the foreseeable future.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

As of December 31, 2025, we had $126.8 billion in cash, cash equivalents, and short-term marketable securities. Cash
equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government
bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.

Sources, Uses of Cash and Related Trends

Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow that we
generate from operations. The primary use of capital continues to be to invest for the long-term growth of the business.
We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to stockholders.
The following table presents cash flows (in millions):

Year Ended December 31,
2024

Net cash provided by operating activities

$

125,299

Net cash used in financing activities

$

(79,733)

Net cash used in investing activities

$

(45,536)

$

$

$

2025

164,713

(120,291)
(37,388)

Cash Provided by Operating Activities

Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, YouTube properties, and Google Network properties. In Google Services, we also generate cash through
consumer subscriptions, the sale of apps and in-app purchases, and devices. In Google Cloud, we generate cash through
consumption-based fees and subscriptions for infrastructure, platform, applications, and other cloud services.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners, to
employees for compensation, and to content providers. Other uses of cash from operating activities include payments to
suppliers for devices, to tax authorities for income taxes, and other general corporate expenditures.

Net cash provided by operating activities increased from 2024 to 2025 due to an increase in cash received from customers,
partially offset by an increase in cash payments for cost of revenues and operating expenses.

Cash Used in Investing Activities

Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and
non-marketable securities, purchases of property and equipment, and payments for acquisitions.

Net cash used in investing activities increased from 2024 to 2025, primarily due to an increase in purchases of
property and equipment, driven by investments in technical infrastructure, and a decrease in maturities and sales of
marketable securities.

Cash Used in Financing Activities

Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of
interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, repayments of
debt, net payments related to stock-based award activities, and dividend payments.
Net cash used in financing activities decreased from 2024 to 2025 due to an increase in proceeds from issuance of debt
and a decrease in repurchases of stock, partially offset by repayments of debt.

Liquidity and Material Cash Requirements

We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months, and thereafter for the foreseeable future.
36

Alphabet 2025 Annual Report

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Capital expenditures were $52.5 billion in 2024 and $91.4 billion in 2025.

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During the years ended December 31, 2024 and 2025, we spent $52.5 billion and $91.4 billion on capital expenditures,
respectively.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Capital Expenditures and Leases

We make investments in land, buildings, and servers and network equipment through purchases of property and equipment
and lease arrangements to provide capacity for the growth of our services and products.

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

• technical infrastructure, which consists of our investments in servers and network equipment, data center land, and
building construction and improvements; and
• office facilities, ground-up development projects, and building improvements.

Assets not yet in service are those that are not ready for their intended use, including assets in the process of construction
or assembly, and consist primarily of technical infrastructure. The time frame from date of purchase to placement in
service of these assets may extend from months to years. For example, our data center construction projects are generally
multi-year projects with multiple phases, where we acquire land and buildings, construct buildings, and secure and install
servers and network equipment.
During the years ended December 31, 2024 and 2025, we spent $52.5 billion and $91.4 billion on capital expenditures,
respectively. In 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure,
including servers and network equipment, and data centers. Depreciation of our property and equipment commences
when such assets are ready for their intended use. For the years ended December 31, 2024 and 2025, our depreciation on
property and equipment was $15.3 billion and $21.1 billion, respectively.

Leases

As of December 31, 2025, the amount of total undiscounted future lease payments under operating leases was $18.3 billion,
of which $3.3 billion is short-term, and total undiscounted future lease payments under finance leases was $2.9 billion, of
which $491 million is short-term.
As of December 31, 2025, we have entered into leases primarily related to data centers that have not yet commenced with
short-term and long-term future lease payments of $5.8 billion and $52.7 billion, respectively. These leases will commence
between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years.
In January 2026, we executed a power purchase agreement which we expect to be accounted for as a lease resulting
in future payments depending on certain agreement terms of $9.9 billion between 2027 and 2047. If certain contractual
conditions for the project are not met, we would instead make a one-time payment of approximately $3.5 billion and
assume ownership of the power generating assets.

For additional information on leases, see Note 4 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Financing

As of December 31, 2025, we had senior unsecured notes outstanding with a total carrying value of $48.5 billion, of which
$2.0 billion was short-term. The associated short-term and long-term future interest payments were $1.8 billion and
$35.7 billion, respectively.
During 2025, we issued $22.5 billion of US dollar-denominated senior unsecured notes and €13.25 billion of
euro-denominated senior unsecured notes for general corporate purposes, comprised of the following:

• May 2025: We issued $5.0 billion of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average
coupon rate of 4.89%, and a weighted-average maturity of approximately 24 years. We also issued €6.75 billion
of euro-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 3.31%, and a
weighted-average maturity of approximately 14 years.

• November 2025: We issued $500 million of US dollar-denominated floating-rate senior unsecured notes and $17.0 billion
of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 4.92% and a
weighted-average maturity of approximately 20 years. We also issued €6.5 billion of euro-denominated fixed-rate senior
unsecured notes with a weighted-average coupon rate of 3.44% and a weighted-average maturity of approximately
16 years.
Alphabet 2025 Annual Report

37

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For 2026, the report expects a significant increase relative to 2025 in technical infrastructure investment, including servers, network equipment, and data centers.

alphabet2025:14b0052d152753a36b28cf8f3538a9ae3be409862a8a754330a42761e4d80eb5 · forecast

Original source, physical page 45

In 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure,
including servers and network equipment, and data centers.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Capital Expenditures and Leases

We make investments in land, buildings, and servers and network equipment through purchases of property and equipment
and lease arrangements to provide capacity for the growth of our services and products.

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

• technical infrastructure, which consists of our investments in servers and network equipment, data center land, and
building construction and improvements; and
• office facilities, ground-up development projects, and building improvements.

Assets not yet in service are those that are not ready for their intended use, including assets in the process of construction
or assembly, and consist primarily of technical infrastructure. The time frame from date of purchase to placement in
service of these assets may extend from months to years. For example, our data center construction projects are generally
multi-year projects with multiple phases, where we acquire land and buildings, construct buildings, and secure and install
servers and network equipment.
During the years ended December 31, 2024 and 2025, we spent $52.5 billion and $91.4 billion on capital expenditures,
respectively. In 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure,
including servers and network equipment, and data centers. Depreciation of our property and equipment commences
when such assets are ready for their intended use. For the years ended December 31, 2024 and 2025, our depreciation on
property and equipment was $15.3 billion and $21.1 billion, respectively.

Leases

As of December 31, 2025, the amount of total undiscounted future lease payments under operating leases was $18.3 billion,
of which $3.3 billion is short-term, and total undiscounted future lease payments under finance leases was $2.9 billion, of
which $491 million is short-term.
As of December 31, 2025, we have entered into leases primarily related to data centers that have not yet commenced with
short-term and long-term future lease payments of $5.8 billion and $52.7 billion, respectively. These leases will commence
between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years.
In January 2026, we executed a power purchase agreement which we expect to be accounted for as a lease resulting
in future payments depending on certain agreement terms of $9.9 billion between 2027 and 2047. If certain contractual
conditions for the project are not met, we would instead make a one-time payment of approximately $3.5 billion and
assume ownership of the power generating assets.

For additional information on leases, see Note 4 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Financing

As of December 31, 2025, we had senior unsecured notes outstanding with a total carrying value of $48.5 billion, of which
$2.0 billion was short-term. The associated short-term and long-term future interest payments were $1.8 billion and
$35.7 billion, respectively.
During 2025, we issued $22.5 billion of US dollar-denominated senior unsecured notes and €13.25 billion of
euro-denominated senior unsecured notes for general corporate purposes, comprised of the following:

• May 2025: We issued $5.0 billion of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average
coupon rate of 4.89%, and a weighted-average maturity of approximately 24 years. We also issued €6.75 billion
of euro-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 3.31%, and a
weighted-average maturity of approximately 14 years.

• November 2025: We issued $500 million of US dollar-denominated floating-rate senior unsecured notes and $17.0 billion
of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 4.92% and a
weighted-average maturity of approximately 20 years. We also issued €6.5 billion of euro-denominated fixed-rate senior
unsecured notes with a weighted-average coupon rate of 3.44% and a weighted-average maturity of approximately
16 years.
Alphabet 2025 Annual Report

37

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alphabet2025:32c3006c0567fead7ee6f3b2cab87a6fce5f66f67017354e3f93617224a24cc2 · forecast

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In January 2026, we executed a power purchase agreement which we expect to be accounted for as a lease resulting
in future payments depending on certain agreement terms of $9.9 billion between 2027 and 2047.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Capital Expenditures and Leases

We make investments in land, buildings, and servers and network equipment through purchases of property and equipment
and lease arrangements to provide capacity for the growth of our services and products.

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

• technical infrastructure, which consists of our investments in servers and network equipment, data center land, and
building construction and improvements; and
• office facilities, ground-up development projects, and building improvements.

Assets not yet in service are those that are not ready for their intended use, including assets in the process of construction
or assembly, and consist primarily of technical infrastructure. The time frame from date of purchase to placement in
service of these assets may extend from months to years. For example, our data center construction projects are generally
multi-year projects with multiple phases, where we acquire land and buildings, construct buildings, and secure and install
servers and network equipment.
During the years ended December 31, 2024 and 2025, we spent $52.5 billion and $91.4 billion on capital expenditures,
respectively. In 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure,
including servers and network equipment, and data centers. Depreciation of our property and equipment commences
when such assets are ready for their intended use. For the years ended December 31, 2024 and 2025, our depreciation on
property and equipment was $15.3 billion and $21.1 billion, respectively.

Leases

As of December 31, 2025, the amount of total undiscounted future lease payments under operating leases was $18.3 billion,
of which $3.3 billion is short-term, and total undiscounted future lease payments under finance leases was $2.9 billion, of
which $491 million is short-term.
As of December 31, 2025, we have entered into leases primarily related to data centers that have not yet commenced with
short-term and long-term future lease payments of $5.8 billion and $52.7 billion, respectively. These leases will commence
between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years.
In January 2026, we executed a power purchase agreement which we expect to be accounted for as a lease resulting
in future payments depending on certain agreement terms of $9.9 billion between 2027 and 2047. If certain contractual
conditions for the project are not met, we would instead make a one-time payment of approximately $3.5 billion and
assume ownership of the power generating assets.

For additional information on leases, see Note 4 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Financing

As of December 31, 2025, we had senior unsecured notes outstanding with a total carrying value of $48.5 billion, of which
$2.0 billion was short-term. The associated short-term and long-term future interest payments were $1.8 billion and
$35.7 billion, respectively.
During 2025, we issued $22.5 billion of US dollar-denominated senior unsecured notes and €13.25 billion of
euro-denominated senior unsecured notes for general corporate purposes, comprised of the following:

• May 2025: We issued $5.0 billion of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average
coupon rate of 4.89%, and a weighted-average maturity of approximately 24 years. We also issued €6.75 billion
of euro-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 3.31%, and a
weighted-average maturity of approximately 14 years.

• November 2025: We issued $500 million of US dollar-denominated floating-rate senior unsecured notes and $17.0 billion
of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 4.92% and a
weighted-average maturity of approximately 20 years. We also issued €6.5 billion of euro-denominated fixed-rate senior
unsecured notes with a weighted-average coupon rate of 3.44% and a weighted-average maturity of approximately
16 years.
Alphabet 2025 Annual Report

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alphabet2025:2d6c7266ff78bb01db76df3240713dc14f8ab6404431e550c603d32e912ce557 · challenge

Original source, physical page 45

If certain contractual
conditions for the project are not met, we would instead make a one-time payment of approximately $3.5 billion and
assume ownership of the power generating assets.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Capital Expenditures and Leases

We make investments in land, buildings, and servers and network equipment through purchases of property and equipment
and lease arrangements to provide capacity for the growth of our services and products.

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

• technical infrastructure, which consists of our investments in servers and network equipment, data center land, and
building construction and improvements; and
• office facilities, ground-up development projects, and building improvements.

Assets not yet in service are those that are not ready for their intended use, including assets in the process of construction
or assembly, and consist primarily of technical infrastructure. The time frame from date of purchase to placement in
service of these assets may extend from months to years. For example, our data center construction projects are generally
multi-year projects with multiple phases, where we acquire land and buildings, construct buildings, and secure and install
servers and network equipment.
During the years ended December 31, 2024 and 2025, we spent $52.5 billion and $91.4 billion on capital expenditures,
respectively. In 2026, we expect to significantly increase, relative to 2025, our investment in our technical infrastructure,
including servers and network equipment, and data centers. Depreciation of our property and equipment commences
when such assets are ready for their intended use. For the years ended December 31, 2024 and 2025, our depreciation on
property and equipment was $15.3 billion and $21.1 billion, respectively.

Leases

As of December 31, 2025, the amount of total undiscounted future lease payments under operating leases was $18.3 billion,
of which $3.3 billion is short-term, and total undiscounted future lease payments under finance leases was $2.9 billion, of
which $491 million is short-term.
As of December 31, 2025, we have entered into leases primarily related to data centers that have not yet commenced with
short-term and long-term future lease payments of $5.8 billion and $52.7 billion, respectively. These leases will commence
between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years.
In January 2026, we executed a power purchase agreement which we expect to be accounted for as a lease resulting
in future payments depending on certain agreement terms of $9.9 billion between 2027 and 2047. If certain contractual
conditions for the project are not met, we would instead make a one-time payment of approximately $3.5 billion and
assume ownership of the power generating assets.

For additional information on leases, see Note 4 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Financing

As of December 31, 2025, we had senior unsecured notes outstanding with a total carrying value of $48.5 billion, of which
$2.0 billion was short-term. The associated short-term and long-term future interest payments were $1.8 billion and
$35.7 billion, respectively.
During 2025, we issued $22.5 billion of US dollar-denominated senior unsecured notes and €13.25 billion of
euro-denominated senior unsecured notes for general corporate purposes, comprised of the following:

• May 2025: We issued $5.0 billion of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average
coupon rate of 4.89%, and a weighted-average maturity of approximately 24 years. We also issued €6.75 billion
of euro-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 3.31%, and a
weighted-average maturity of approximately 14 years.

• November 2025: We issued $500 million of US dollar-denominated floating-rate senior unsecured notes and $17.0 billion
of US dollar-denominated fixed-rate senior unsecured notes with a weighted-average coupon rate of 4.92% and a
weighted-average maturity of approximately 20 years. We also issued €6.5 billion of euro-denominated fixed-rate senior
unsecured notes with a weighted-average coupon rate of 3.44% and a weighted-average maturity of approximately
16 years.
Alphabet 2025 Annual Report

37

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alphabet2025:1c98232d43e2e717771b2bcedce299ad07b6c00271310923a800ea80417a88d0 · reported_fact

Original source, physical page 46

As of December 31, 2025, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2026 and $6.0 billion
expiring in April 2030. No amounts have been borrowed under the credit facilities.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

As of December 31, 2025, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2026 and $6.0 billion
expiring in April 2030. No amounts have been borrowed under the credit facilities. We also have a commercial paper
program of up to $25.0 billion, which is used for general corporate purposes. As of December 31, 2025, we had no
commercial paper outstanding.
For additional information, see Note 6 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

We use contract manufacturers for our technical infrastructure and device assembly and may supply them with
components purchased directly from suppliers. Certain of these arrangements result in a portion of the cash received from
and paid to contract manufacturers to be presented as financing activities on the Consolidated Statements of Cash Flows
included in Item 8 of this Annual Report on Form 10-K.

Share Repurchase Program

During 2025, we repurchased and subsequently retired 240 million shares for $45.4 billion.

In April 2024, the company’s Board of Directors authorized a $70.0 billion share repurchase program for its Class A and
Class C shares. In April 2025, the company’s Board of Directors authorized an additional $70.0 billion share repurchase
program for its Class A and Class C shares. As of December 31, 2025, $69.5 billion remained available for Class A and
Class C share repurchases.
For additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Dividend Program

During the year ended December 31, 2025, total cash dividends were $4.8 billion for Class A, $703 million for Class B, and
$4.5 billion for Class C shares, respectively.
In April 2025, the company’s Board of Directors increased the quarterly cash dividend by 5% to $0.21 per share of
outstanding Class A, Class B, and Class C shares.

The company has declared a quarterly cash dividend in the current quarter, and intends to pay quarterly cash dividends in
the future, subject to review and approval by the company’s Board of Directors in its sole discretion.

Accrued Legal and Regulatory

As of December 31, 2025, we had short-term accrued legal and regulatory fines and settlements of $15.6 billion. This
amount primarily included EC fines, in addition to accruals related to other legal matters and regulatory fines and
settlements. For additional information, see Note 10 of the Notes to Consolidated Financial Statements included in Item 8 of
this Annual Report on Form 10-K.

Taxes

As of December 31, 2025, we had long-term income taxes payable of $9.5 billion primarily related to unrecognized tax
benefits. The timing and amount of any payment related to these unrecognized tax benefits are uncertain and cannot
be estimated.

Purchase Commitments and Other Contractual Obligations

We have material purchase commitments and other contractual obligations primarily related to energy take-or-pay
contracts, licenses (including content licenses), and technical infrastructure and inventory orders. As of December 31,
2025, the total for these commitments was $149.1 billion, of which $113.0 billion was short-term, mostly related to technical
infrastructure and inventory orders. These amounts reflect commitments and obligations through open purchase orders
as well as the non-cancelable portion or the minimum cancellation fee in certain agreements. For those agreements with
variable terms, we do not estimate the non-cancelable obligation beyond any minimum quantities and/or pricing as of
December 31, 2025. In certain instances, the amount of our contractual obligations may change based on the expected
timing of order fulfillment from our suppliers. For additional information related to our content licenses, see Note 10 of the
Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
38

Alphabet 2025 Annual Report

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The quarterly cash dividend was increased by 5% to $0.21 per share in April 2025.

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In April 2025, the company’s Board of Directors increased the quarterly cash dividend by 5% to $0.21 per share of
outstanding Class A, Class B, and Class C shares.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Share Repurchase Program

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Dividend Program

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Taxes

Purchase Commitments and Other Contractual Obligations

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Alphabet states that it intends to pay quarterly cash dividends in the future, subject to Board review and approval.

alphabet2025:d47406787469867212b94f9924aacb0e5a20c36aba01c037369105289b985c30 · forecast

Original source, physical page 46

The company has declared a quarterly cash dividend in the current quarter, and intends to pay quarterly cash dividends in
the future, subject to review and approval by the company’s Board of Directors in its sole discretion.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Share Repurchase Program

During 2025, we repurchased and subsequently retired 240 million shares for $45.4 billion.

Dividend Program

Accrued Legal and Regulatory

Taxes

Purchase Commitments and Other Contractual Obligations

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Short-term accrued legal and regulatory fines and settlements totaled $15.6 billion as of December 31, 2025.

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As of December 31, 2025, we had short-term accrued legal and regulatory fines and settlements of $15.6 billion. This
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settlements.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Share Repurchase Program

During 2025, we repurchased and subsequently retired 240 million shares for $45.4 billion.

Dividend Program

Accrued Legal and Regulatory

Taxes

Purchase Commitments and Other Contractual Obligations

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Purchase commitments and other contractual obligations totaled $149.1 billion, of which $113.0 billion was short-term.

alphabet2025:8398aa87a11ae694f7270ca9cdc313439ebf95be6b8312deb4a92ec659cccce4 · reported_fact

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As of December 31,
2025, the total for these commitments was $149.1 billion, of which $113.0 billion was short-term, mostly related to technical
infrastructure and inventory orders.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Share Repurchase Program

During 2025, we repurchased and subsequently retired 240 million shares for $45.4 billion.

Dividend Program

Accrued Legal and Regulatory

Taxes

Purchase Commitments and Other Contractual Obligations

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  "category": "reported_fact",
  "summary": "Purchase commitments and other contractual obligations totaled $149.1 billion, of which $113.0 billion was short-term.",
  "excerpt": "As of December 31,\n2025, the total for these commitments was $149.1 billion, of which $113.0 billion was short-term, mostly related to technical\ninfrastructure and inventory orders.",
  "page": 46,
  "section": "MD&A: Purchase Commitments and Other Contractual Obligations",
  "target_date": "December 31, 2025",
  "numeric_target": "$149.1 billion; $113.0 billion",
  "unit": "total commitments; short-term commitments",
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Alphabet provided backstops with maximum potential future payments of $5.7 billion for financial guarantees and $16.9 billion for credit derivatives.

alphabet2025:31529da725ce0818efb3d20e1b4ac216a529890daa5cba4c3952981e15b44575 · reported_fact

Original source, physical page 47

As of December 31, 2025, we provided backstops in the form of financial guarantees and credit derivatives with maximum
potential amount of future payments of $5.7 billion and $16.9 billion, respectively.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

As of December 31, 2025, we provided backstops in the form of financial guarantees and credit derivatives with maximum
potential amount of future payments of $5.7 billion and $16.9 billion, respectively. For additional information on credit
derivatives and financial guarantees, see Note 3 and Note 10 of the Notes to Consolidated Financial Statements included in
Item 8 of this Annual Report on Form 10-K.
In addition, we regularly enter into multi-year, non-cancellable power purchase agreements with third-party suppliers that
do not include a minimum dollar commitment. The amounts to be paid under these agreements are based on the actual
volumes to be generated and are not readily determinable.
We may experience increases in the costs associated with our purchase commitments and other contractual obligations
as a result of ongoing developments surrounding international trade. For details on risks related to our manufacturing and
supply chain and other risks, refer to Part 1, Item 1A, “Risk Factors” of this Annual Report on Form 10-K.

Pending Acquisitions

In March 2025, we entered into a definitive agreement to acquire Wiz, Inc. (“Wiz”), a leading cloud security platform, for
$32.0 billion, subject to closing adjustments, in an all-cash transaction. The acquisition of Wiz is expected to close in 2026,
subject to customary closing conditions, including the receipt of regulatory approvals.
In December 2025, we entered into a definitive agreement to acquire Intersect, which provides data center and energy
infrastructure solutions, for $4.8 billion in cash, plus the assumption of debt. The acquisition of Intersect is expected to
close in the first half of 2026, subject to customary closing conditions.

For additional information, see Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make estimates
and assumptions. Our critical accounting estimates are those estimates that involve a significant level of uncertainty at
the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our
financial condition or results of operations. Accordingly, actual results could differ materially from our estimates. We base
our estimates on past experience and other assumptions that we believe are reasonable under the circumstances,
and we evaluate these estimates on an ongoing basis. We have reviewed our critical accounting estimates with the
Audit Committee of our Board of Directors.
For a summary of significant accounting policies and the effect on our financial statements, see Note 1 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Fair Value Measurements of Non-Marketable Equity Securities

Alphabet 2025 Annual Report

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Certain multi-year power purchase agreements have no minimum dollar commitment, and payments are not readily determinable because they depend on actual volumes generated.

alphabet2025:8ae54e6c25f5836e8ba2e8e45764a1156ac068a9bc3874ec4b2bd73f4ef4f5ee · challenge

Original source, physical page 47

In addition, we regularly enter into multi-year, non-cancellable power purchase agreements with third-party suppliers that
do not include a minimum dollar commitment. The amounts to be paid under these agreements are based on the actual
volumes to be generated and are not readily determinable.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Pending Acquisitions

For additional information, see Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make estimates
and assumptions. Our critical accounting estimates are those estimates that involve a significant level of uncertainty at
the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our
financial condition or results of operations. Accordingly, actual results could differ materially from our estimates. We base
our estimates on past experience and other assumptions that we believe are reasonable under the circumstances,
and we evaluate these estimates on an ongoing basis. We have reviewed our critical accounting estimates with the
Audit Committee of our Board of Directors.
For a summary of significant accounting policies and the effect on our financial statements, see Note 1 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Fair Value Measurements of Non-Marketable Equity Securities

Alphabet 2025 Annual Report

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Alphabet states that ongoing international trade developments may increase costs associated with purchase commitments and contractual obligations.

alphabet2025:6b59847f97b6b0b4808684f14258d34c152e6438ad8afd90470f34b594350f87 · challenge

Original source, physical page 47

We may experience increases in the costs associated with our purchase commitments and other contractual obligations
as a result of ongoing developments surrounding international trade.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Pending Acquisitions

For additional information, see Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make estimates
and assumptions. Our critical accounting estimates are those estimates that involve a significant level of uncertainty at
the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our
financial condition or results of operations. Accordingly, actual results could differ materially from our estimates. We base
our estimates on past experience and other assumptions that we believe are reasonable under the circumstances,
and we evaluate these estimates on an ongoing basis. We have reviewed our critical accounting estimates with the
Audit Committee of our Board of Directors.
For a summary of significant accounting policies and the effect on our financial statements, see Note 1 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Fair Value Measurements of Non-Marketable Equity Securities

Alphabet 2025 Annual Report

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The Wiz acquisition for $32.0 billion is expected to close in 2026, subject to customary closing conditions and regulatory approvals.

alphabet2025:9bbf3889d7332b97757fd52c218dd37cefa443fefcb8f0eca5aa02182043fe13 · forecast

Original source, physical page 47

In March 2025, we entered into a definitive agreement to acquire Wiz, Inc. (“Wiz”), a leading cloud security platform, for
$32.0 billion, subject to closing adjustments, in an all-cash transaction. The acquisition of Wiz is expected to close in 2026,
subject to customary closing conditions, including the receipt of regulatory approvals.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Pending Acquisitions

For additional information, see Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make estimates
and assumptions. Our critical accounting estimates are those estimates that involve a significant level of uncertainty at
the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our
financial condition or results of operations. Accordingly, actual results could differ materially from our estimates. We base
our estimates on past experience and other assumptions that we believe are reasonable under the circumstances,
and we evaluate these estimates on an ongoing basis. We have reviewed our critical accounting estimates with the
Audit Committee of our Board of Directors.
For a summary of significant accounting policies and the effect on our financial statements, see Note 1 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Fair Value Measurements of Non-Marketable Equity Securities

Alphabet 2025 Annual Report

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The Intersect acquisition for $4.8 billion in cash plus assumed debt is expected to close in the first half of 2026.

alphabet2025:bc32e7d2520f6cc718f01684d4c59bcb69dadfdfbc5d241e5f284507a1b10fbb · forecast

Original source, physical page 47

In December 2025, we entered into a definitive agreement to acquire Intersect, which provides data center and energy
infrastructure solutions, for $4.8 billion in cash, plus the assumption of debt. The acquisition of Intersect is expected to
close in the first half of 2026, subject to customary closing conditions.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Pending Acquisitions

For additional information, see Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make estimates
and assumptions. Our critical accounting estimates are those estimates that involve a significant level of uncertainty at
the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our
financial condition or results of operations. Accordingly, actual results could differ materially from our estimates. We base
our estimates on past experience and other assumptions that we believe are reasonable under the circumstances,
and we evaluate these estimates on an ongoing basis. We have reviewed our critical accounting estimates with the
Audit Committee of our Board of Directors.
For a summary of significant accounting policies and the effect on our financial statements, see Note 1 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Fair Value Measurements of Non-Marketable Equity Securities

Alphabet 2025 Annual Report

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Legal matters may expose Alphabet to losses above recorded amounts, and those amounts could be material.

alphabet2025:aeeacf024db08537fec63b80d17094f2a672fc9bfe3233c71e655b18834540ec · challenge

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Until the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and
such amounts could be material.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

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Part III

Part IV

Property and Equipment

We assess the reasonableness of the useful lives of our property and equipment periodically or when events indicate a
change is necessary. To determine the useful lives of our technical infrastructure, we rely on multiple inputs, including
historical asset performance, expected technology advancements, and our future infrastructure deployment plans.
Any change in the estimated useful lives is recognized on a prospective basis.

Income Taxes

We are subject to income taxes in the US and foreign jurisdictions. Significant judgment is required in evaluating our
uncertain tax positions and determining our provision for income taxes.

Recording an uncertain tax position involves various qualitative considerations, including evaluation of comparable
and resolved tax exposures, applicability of tax laws, and likelihood of settlement. We evaluate uncertain tax positions
periodically, considering changes in facts and circumstances, such as new regulations or recent judicial opinions, as well
as the status of audit activities by taxing authorities. Although we believe we have adequately reserved for our uncertain
tax positions, no assurance can be given that the final tax outcome of these matters will not be different. To the extent that
the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for
income taxes and the effective tax rate in the period in which such determination is made.
The provision for income taxes includes the effect of reserve provisions and changes to reserves as well as the related
net interest and penalties. In addition, we are subject to the continuous examination of our income tax returns by the
Internal Revenue Service (IRS) and other tax authorities which may assert assessments against us. We regularly assess
the likelihood of adverse outcomes resulting from these examinations and assessments to determine the adequacy of our
provision for income taxes.

Loss Contingencies

We evaluate, on a regular basis, developments in our legal matters that could affect the amount of liability that has been
previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as necessary.
Significant judgment is required to determine both the likelihood and the estimated amount of a loss related to such
matters. Until the final resolution of such matters, there may be an exposure to loss in excess of the amount recorded, and
such amounts could be material.

Item 7A. Quantitative and Qualitative Disclosures About
Market Risk

We are exposed to financial market risks, including changes in foreign currency exchange rates, interest rates, and equity
investment risks.

Foreign Currency Exchange Risk

We transact business globally in multiple currencies. International revenues, foreign-denominated monetary assets
and liabilities, and investments in foreign subsidiaries expose us to the risk of fluctuations in foreign exchange rates
against the US dollar. Principal currency exposures include the Australian dollar, British pound, Canadian dollar, Euro, and
Japanese yen.

Alphabet 2025 Annual Report

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Alphabet assessed a 10% adverse foreign exchange change as reasonably possible and estimated 2025 impacts of $671 million, $2.096 billion, and $2.942 billion across the listed exposures.

alphabet2025:93d71bbe94739d0e7171f66ee9c8af72b9487da2c6c2ec9f1b90041e084c9533 · challenge

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Considering historical trends in foreign exchange rates, we determined that it was reasonably possible that adverse
changes in exchange rates of 10% could be experienced. We performed a sensitivity analysis on our foreign currency
exposures to estimate the potential impact of this adverse 10% change.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

We monitor our foreign currency exposures and hedge foreign exchange risks with derivative and non-derivative
instruments, including forwards, options (including collars), cross-currency swaps, and foreign currency-denominated
debt. Gains or losses on these foreign currency exposures are generally offset by corresponding gains or losses on the
derivative and non-derivative instruments.
Considering historical trends in foreign exchange rates, we determined that it was reasonably possible that adverse
changes in exchange rates of 10% could be experienced. We performed a sensitivity analysis on our foreign currency
exposures to estimate the potential impact of this adverse 10% change. The estimated effects on our financial position
would be as follows (in millions):
Impact

Foreign currency risk

Foreign denominated monetary assets and liabilities(1)

Cash flow hedges of foreign currency revenue(2)

(2)
(3)

(3)

After consideration of the effect of derivative contracts.

2024

OI&E

AOCI

Net investment hedges of investments in foreign subsidiaries

(1)

As of December 31,

135

660

1,627

2025

671

2,096
2,942

The change in accumulated other comprehensive income (AOCI) would be expected to offset a corresponding foreign currency change
in forecasted hedged revenues when recognized.
The change in AOCI would be expected to offset a corresponding foreign currency translation gain or loss from our investments in
foreign subsidiaries.

Interest Rate Risk

We are exposed to interest rate risk related to our investment portfolio and outstanding debt.

Our Corporate Treasury investment strategy is to achieve a return that will allow us to preserve capital and maintain
liquidity. By policy, we limit the amount of credit exposure within our investment portfolio to any one issuer. Our investments
in both fixed rate and floating rate interest earning securities carry a degree of interest rate risk. Fixed rate securities may
have their fair market value adversely affected due to a rise in interest rates, while floating rate securities may produce
less income than predicted if interest rates fall. Unrealized gains and losses on our marketable debt securities are primarily
due to interest rate fluctuations as compared to interest rates at the time of purchase. For certain fixed and floating rate
debt securities, we have elected the fair value option for which changes in fair value are recorded in OI&E. We measure
securities for which we have not elected the fair value option at fair value with gains and losses recorded in AOCI until the
securities are sold, less any expected credit losses.
We use value-at-risk (VaR) analysis to determine the potential effect of fluctuations in interest rates on the value of our
investment portfolio. The VaR is the expected loss in fair value, for a given confidence interval, for our investment portfolio
due to adverse movements in interest rates. We use a variance/covariance VaR model with 95% confidence interval.
The estimated one-day loss in fair value of our investment portfolio as of December 31, 2024 and 2025 are shown below
(in millions):
As of December 31,
Risk category - interest rate

2024
208

2025
162

12-Month Average
As of December 31,
$

2024
230

2025
184

Actual future gains and losses associated with our investment portfolio may differ materially from the sensitivity analyses
performed as of December 31, 2024 and 2025 due to the inherent limitations associated with predicting the timing and
amount of changes in interest rates and our actual exposures and positions. VaR analysis is not intended to represent
actual losses but is used as a risk estimation.
Additionally, we had senior unsecured notes outstanding with a total carrying value of $11.9 billion and $48.5 billion as
of December 31, 2024 and 2025, respectively. As our senior unsecured notes primarily bear interest at fixed rates and
are recorded at amortized cost, interest rate fluctuations generally do not affect our consolidated financial statements.
However, the fair value of the notes will fluctuate with movement in market interest rates.
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A hypothetical 10% adverse price change in marketable equity securities would decrease fair value by $631 million as of December 31, 2025.

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A hypothetical adverse price change of
10% on our December 31, 2025 balance would decrease the fair value of marketable equity securities by $631 million.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Equity Investment Risk

Our marketable and non-marketable equity securities are subject to a wide variety of market-related risks that could
substantially reduce or increase the fair value of our holdings.

Our marketable equity securities are primarily publicly traded stocks or funds and our non-marketable equity securities are
primarily investments in privately held companies, some of which are in the startup or development stages.

We record marketable equity securities at fair value subject to market price volatility. These securities represent $5.1 billion
and $6.3 billion of our investments as of December 31, 2024 and 2025, respectively. A hypothetical adverse price change of
10% on our December 31, 2025 balance would decrease the fair value of marketable equity securities by $631 million. From
time to time, we may enter into derivatives to hedge the market price risk on certain of our marketable equity securities.

Our non-marketable equity securities not accounted for under the equity method are primarily adjusted to fair value
for observable transactions for identical or similar investments of the same issuer or impairment (referred to as the
measurement alternative). The fair value measured at the time of the observable transaction is not necessarily an indication
of the current fair value as of the balance sheet date. These investments, especially those that are in the early stages, are
inherently risky because the technologies or products these companies have under development are typically in the early
phases and may never materialize, and they may experience a decline in financial condition, which could result in a loss
of a substantial part of our investment in these companies. Valuations of our equity investments in private companies are
inherently more complex due to the lack of readily available market data and observable transactions at lower valuations
could result in significant losses. In addition, global economic conditions could result in additional volatility. The success
of our investment in any private company is also typically dependent on the likelihood of our ability to realize appreciation
in the value of investments through liquidity events such as public offerings, acquisitions, private sales, or other market
events. Changes in the valuation of non-marketable equity securities may not directly correlate with changes in valuation
of marketable equity securities. As of December 31, 2024 and 2025, the carrying value of our non-marketable equity
securities, which were accounted for under the measurement alternative, was $35.2 billion and $64.1 billion, respectively.
The carrying values of our equity method investments, which totaled approximately $2.0 billion and $2.5 billion as of
December 31, 2024 and 2025, respectively, generally do not fluctuate based on market price changes. However, these
investments could be impaired if the carrying value exceeds the fair value and is not expected to recover.
For additional information about our equity investments, see Note 1 and Note 3 of the Notes to Consolidated Financial
Statements included in Item 8 of this Annual Report on Form 10-K.

42

Alphabet 2025 Annual Report

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A $60 million net accumulated loss on foreign currency cash flow hedges is expected to be reclassified into revenues within the next 12 months.

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As of December 31, 2025, the net accumulated loss on our foreign currency cash flow hedges before tax effect was
$60 million, which is expected to be reclassified from AOCI into revenues within the next 12 months.

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Part III

Part IV

Cash Flow Hedges

We designate foreign currency forwards and options (including collars) as cash flow hedges to hedge certain forecasted
revenue transactions denominated in currencies other than the US dollar. These contracts have maturities of 24 months
or less.
Cash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and reclassified to
revenue when the hedged item is recognized in earnings. Hedge components excluded from our assessment of hedge
effectiveness are amortized on a straight-line basis over the life of the hedging instrument in revenues. The difference
between fair value changes of the excluded component and the amount amortized to revenues is recorded in AOCI.
As of December 31, 2025, the net accumulated loss on our foreign currency cash flow hedges before tax effect was
$60 million, which is expected to be reclassified from AOCI into revenues within the next 12 months.

Additionally, we may designate interest rate derivatives as cash flow hedges to manage our exposure to certain interest
rate risks. Changes in the fair value of these derivatives are deferred in AOCI and reclassified to OI&E when the hedged
item is recognized in earnings.

Fair Value Hedges

We designate foreign currency forwards as fair value hedges to hedge foreign currency risks for our marketable debt securities
denominated in currencies other than the US dollar. Fair value hedge amounts included and excluded from the assessment of
hedge effectiveness are recognized in OI&E.

Net Investment Hedges

We designate foreign currency forwards, options (including collars), cross-currency swaps, and foreign currencydenominated debt as net investment hedges to hedge the foreign currency risks related to our investments in foreign
subsidiaries. Net investment hedge amounts included in the assessment of hedge effectiveness are recognized in AOCI.

Changes in the fair value of hedge components of forward and option contracts that are excluded from the assessment
of hedge effectiveness are recognized in OI&E. Hedge components of cross-currency swaps that are excluded from the
assessment of hedge effectiveness are amortized over the life of the hedging instrument and recognized in OI&E. The
difference between fair value changes of the excluded component and the amount amortized to OI&E is recorded in AOCI.
We had no foreign currency-denominated debt as of December 31, 2024 and $15.4 billion carrying value of foreign
currency-denominated debt designated as net investment hedges as of December 31, 2025.

Derivatives Not Designated as Hedging Instruments

We enter into derivatives not designated as hedging instruments to manage risks related to our ongoing business
operations. The primary risk managed is foreign exchange risk related to the remeasurement of monetary assets or
liabilities denominated in currencies other than the functional currency of a subsidiary. Gains and losses on these foreign
exchange derivatives are recorded within the “foreign currency exchange gain (loss), net” component of OI&E.
We also enter into derivatives to manage other risks, to enhance investment returns, and as a result of agreements with
certain third parties to backstop certain obligations relating to data center leases. Gains and losses arising from other
derivatives are primarily reflected within the “other” component of OI&E. See Note 7 for further details.

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Waymo announced a $16.0 billion investment round in February 2026, with the significant majority funded by Alphabet.

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In February 2026, Waymo, a consolidated VIE, announced an investment round of $16.0 billion, the significant majority of
which was funded by Alphabet.

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As of December 31, 2025, we have entered into leases primarily related to data centers that have not yet commenced with
short-term and long-term future lease payments of $5.8 billion and $52.7 billion, respectively, that are not yet recorded.
These leases will commence between 2026 and 2031 with non-cancelable lease terms primarily between one and 25 years.
In January 2026, we executed a power purchase agreement which we expect to be accounted for as a lease resulting
in future payments depending on certain agreement terms of $9.9 billion between 2027 and 2047. If certain contractual
conditions for the project are not met, we would instead make a one-time payment of approximately $3.5 billion and
assume ownership of the power generating assets.

Note 5. Variable Interest Entities
Consolidated VIEs

For certain consolidated VIEs, their assets are not available to us, and their creditors do not have recourse to us. As
of December 31, 2024 and 2025, assets that can only be used to settle obligations of these VIEs were $8.7 billion and
$5.6 billion, respectively, and are primarily included in cash and cash equivalents. As of December 31, 2024 and 2025,
liabilities for which creditors only have recourse to the VIEs were $2.3 billion and $2.0 billion, respectively. We may continue
to fund ongoing operations, including the potential funding of employee compensation programs, of certain VIEs that are
included within Other Bets.
In February 2026, Waymo, a consolidated VIE, announced an investment round of $16.0 billion, the significant majority of
which was funded by Alphabet. Investments from external parties will be accounted for as equity transactions and will
result in recognition of noncontrolling interests.

Total noncontrolling interests (NCI) in our consolidated subsidiaries were $4.2 billion and $3.4 billion as of December 31,
2024 and 2025, respectively, of which $1.1 billion and $841 million were redeemable noncontrolling interests (RNCI) as of
December 31, 2024 and 2025, respectively. NCI and RNCI are included within additional paid-in capital. Net loss attributable
to noncontrolling interests was not material for any period presented and is included within the “other” component of OI&E.
See Note 7 for further details on OI&E.

Unconsolidated VIEs

We hold various forms of interests in Variable Interest Entities (VIEs), including certain of our investments in private
companies and renewable energy entities, certain leases and credit backstops with data center entities, and certain
backstops with energy infrastructure entities. Because we have determined that we do not direct the activities that most
significantly impact the economic performance of these entities, we are not the primary beneficiary. Therefore, these VIEs
are not consolidated within our financial statements.

Our investments in private companies and renewable energy VIEs are primarily accounted for as non-marketable securities
under the measurement alternative or the equity method. The carrying value of these investments are included within
non-marketable securities on our Consolidated Balance Sheets. See Note 3 for further details on investments. The
maximum exposure to these VIEs is generally limited to the current carrying value plus future funding commitments. As of
December 31, 2024 and 2025, future funding commitments were $1.5 billion and $1.1 billion, respectively.

Leases with data center leasing VIEs are accounted for as finance leases and are included within total lease obligations
disclosed in Note 4. The maximum exposure arising from leases with VIEs is limited to the net carrying value of commenced
finance lease assets, plus the undiscounted future obligations for leases that have not yet commenced. See Note 4 for
further details on leases.
Credit backstops we have provided to data center VIEs are accounted for as credit derivatives. The maximum exposure
arising from credit backstops with VIEs is limited to the financial risk over the remaining period of the arrangements, as
reflected by the credit derivative notional value. See Note 3 for further details on credit derivatives.
Backstop agreements we have provided to energy infrastructure VIEs are accounted for as financial guarantees. The
maximum exposure to these VIEs is limited to the potential amount of future payments under these arrangements.
See Note 10 for further details on financial guarantees.

Alphabet 2025 Annual Report

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A December 2025 US Search judgment imposed distribution restrictions and data sharing and syndication requirements; Alphabet appealed in January 2026.

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A final judgment was
entered in December 2025, which, among other things, imposes restrictions on how Google distributes its services and
requires Google to share certain search data with and offer syndication services to certain competitors. In January 2026,
we appealed the final judgment and moved to pause implementation of certain remedies.

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Legal Matters

Certain outstanding matters seek speculative, substantial, or indeterminate monetary amounts, substantial changes to our
business practices and products, or structural remedies. Significant judgment is required to determine both the likelihood
of there being a loss and the estimated amount of a loss related to such matters, and we may be unable to estimate the
reasonably possible loss or range of losses. The outcomes of outstanding legal matters are inherently unpredictable and
subject to significant uncertainties, and could, either individually or in aggregate, have a material adverse effect.
We expense legal fees in the period in which they are incurred.

Antitrust Matters

We are subject to formal and informal inquiries and investigations as well as litigation on various competition matters by
regulatory authorities and private parties in the US, Europe, and other jurisdictions globally, including the following:

• Shopping: In June 2017, the EC announced its decision that certain actions taken by Google relating to its display and
ranking of shopping search results and ads infringed European antitrust laws and imposed a €2.4 billion fine. In 2024, we
made a cash payment of $3.0 billion for the fine.
• Android: In July 2018, the EC announced its decision that certain provisions in Google’s Android-related distribution
agreements infringed European antitrust laws, imposed a €4.3 billion fine, and directed the termination of the
conduct at issue. We appealed the EC decision and implemented changes to certain of our Android distribution
practices. In September 2022, the General Court affirmed the EC decision but reduced the fine from €4.3 billion to
€4.1 billion. We subsequently appealed the General Court’s affirmation of the EC decision with the European Court
of Justice, which remains pending. In 2018, we recognized a charge of $5.1 billion for the fine, which we reduced by
$217 million in 2022.

• AdSense for Search: In March 2019, the EC announced its decision that certain provisions in Google’s agreements with
AdSense for Search partners infringed European antitrust laws, imposed a €1.5 billion fine, and directed actions related to
AdSense for Search partners’ agreements, which we implemented prior to the decision. In 2019, we recognized a charge
of $1.7 billion for the fine and appealed the EC decision. In September 2024, the General Court overturned the EC decision
and annulled the €1.5 billion fine. The EC has appealed the General Court’s decision with the European Court of Justice.

• Search: In October 2020, the DOJ and a number of state Attorneys General filed a lawsuit in the US District Court for the
District of Columbia concerning Google’s Search and Search advertising practices and its compliance with US antitrust
laws. In August 2024, the US District Court for the District of Columbia ruled against Google. A final judgment was
entered in December 2025, which, among other things, imposes restrictions on how Google distributes its services and
requires Google to share certain search data with and offer syndication services to certain competitors. In January 2026,
we appealed the final judgment and moved to pause implementation of certain remedies. In February 2026, the DOJ and
state Attorneys General also appealed.

Further, in June 2022, the Australian Competition and Consumer Commission (ACCC) opened an investigation into Search
distribution practices. In August 2025, we agreed to a settlement with the ACCC requiring, among other things, changes
to our Android agreements. We recognized a charge in the second quarter of 2025, and the settlement was approved by
the court in December 2025.

In October 2023, the Japanese Fair Trade Commission (JFTC) opened an investigation into Search distribution practices.
In April 2025, the JFTC issued a cease-and-desist order requiring us to make changes to our Android agreements to
ensure they are consistent with Japanese antitrust law. The JFTC did not impose monetary penalties.

• Advertising Technology: In December 2020, a number of state Attorneys General filed a lawsuit in the US District Court
for the Eastern District of Texas concerning Google’s advertising technology and its compliance with US antitrust laws
and state deceptive trade laws. In January 2023, the DOJ, along with a number of state Attorneys General, filed a lawsuit
Alphabet 2025 Annual Report

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Alphabet finalized a $1.4 billion settlement of certain privacy matters in October 2025.

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In October 2025, we
finalized a $1.4 billion settlement of certain privacy matters.

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Part IV

in the US District Court for the Eastern District of Virginia concerning Google’s advertising technology and its compliance
with US antitrust laws, and a number of additional state Attorneys General subsequently joined the lawsuit. In April 2025,
the US District Court for the Eastern District of Virginia issued a mixed decision in the DOJ case against Google, ruling
that neither Google’s advertiser tools nor the DoubleClick and AdMeld acquisitions were anticompetitive, but that
Google’s publisher tools unfairly excluded rivals. A separate proceeding to determine remedies, the range of which
vary widely, took place in September 2025, with the parties presenting differing remedy proposals. The DOJ’s remedy
proposal includes structural remedies that could have a material adverse effect on our business. Closing arguments were
held in November 2025, and we are awaiting a final judgment. After that judgment, we plan to appeal the adverse portion
of the April 2025 decision and potentially aspects of the remedies decision. A trial in the state Attorneys General case in
the Eastern District of Texas will take place after a decision on remedies is issued in the DOJ case. Given the nature of
these matters, we cannot estimate a possible loss.

Further, in September 2025, the EC announced its decision that Google had infringed European competition laws
through “self-preferencing” practices on the buy-side and the sell-side relating to Google’s advertising technology
business. The EC decision imposed a €3.0 billion fine and directed Google to cease and desist the alleged
“self-preferencing” practices. We appealed the ruling in November 2025. We recognized a charge of $3.5 billion in the
third quarter of 2025, and we placed bank guarantees in the fourth quarter of 2025 in lieu of cash payment.
In September 2024, the UK also issued a Statement of Objections concerning Google’s advertising technology and its
compliance with UK antitrust laws, to which we responded.

• Google Play: In July 2021, a number of state Attorneys General filed a lawsuit in the US District Court for the Northern
District of California concerning Google’s operation of Android and Google Play and its compliance with US antitrust laws
and state antitrust and consumer protection laws. In September 2023, we reached a settlement in principle with 50 state
Attorneys General and three territories and recognized a charge. The court preliminarily approved the settlement in
November 2025, and final approval remains pending before the court. In May 2024, we funded the settlement amount to
an escrow agent.

In December 2023, a California jury delivered a verdict against Google in Epic Games v. Google related to Google Play’s
business. Epic did not seek monetary damages. The presiding judge issued a remedies decision in October 2024,
ordering a variety of alterations to our business models and operations and contractual agreements for Android and
Google Play. We appealed the judgment, including the jury verdict and aspects of the remedies ordered, and in July 2025,
the Court of Appeals denied our appeal. We are in the process of appealing that decision to the US Supreme Court,
and we implemented the ordered remedies in October 2025 while the appeal is pending. In October 2025, we reached
a settlement with Epic to modify the remedies in this case and resolve certain other lawsuits Epic has filed regarding
Google Play’s business. The settlement is contingent on the court approving a proposed modified injunction. Epic and
Google filed a joint motion to modify the injunction in November 2025, which is currently pending before the court.

• European Digital Markets Act: In March 2024, the EC opened two investigations regarding Google’s compliance with
certain provisions of the EU’s Digital Markets Act relating to Google Play and Search. In March 2025, the EC issued
preliminary findings of non-compliance in both investigations, to which we responded. Given the nature of this matter,
we cannot estimate a possible loss.

In addition to these antitrust proceedings, private individual and collective actions that overlap with claims pursued by
regulatory authorities are pending in the US and in several other jurisdictions, including across Europe. Given the nature of
these matters, we cannot estimate a possible loss.
We believe we have strong arguments against these open claims and will defend ourselves vigorously. We continue to
cooperate with federal and state regulators in the US, the EC, and other regulators around the world.

Privacy Matters

We are subject to a number of privacy-related laws and regulations, and we currently are party to a number of privacy
investigations and lawsuits ongoing in multiple jurisdictions. For example, there are ongoing investigations and litigation in
the US and the EU, including those relating to our collection and use of location information, the choices we offer users,
and advertising practices, which could result in significant fines, judgments, and product changes. In October 2025, we
finalized a $1.4 billion settlement of certain privacy matters.
78

Alphabet 2025 Annual Report

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  "page": 86,
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Alphabet states that it does not expect ongoing legal matters relating to Russia to have a material adverse effect.

alphabet2025:ee80348a432caba0b17b82b7ce58f98eedb22afffdb312b9c420e1c7c8c400ff · forecast

Original source, physical page 87

We do not expect these ongoing legal matters will have a material adverse effect.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Patent and Intellectual Property Claims

We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that certain
of our products, services, and technologies infringe others’ intellectual property 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 features, functionalities, products, or services. As a result, we may have to change our business
practices and develop non-infringing products or technologies, which could result in a loss of revenues for us and
otherwise harm our business. In addition, the ITC has increasingly become an important forum to litigate intellectual
property disputes because an ultimate loss in an ITC action can result in a prohibition on importing infringing products
into the US. Because the US is an important market, a prohibition on importation could have an adverse effect on us,
including preventing us from importing many important products into the US or necessitating workarounds that may
limit certain features of our products. Further, our customers and partners may discontinue the use of our products,
services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely
affect our business.

Other

We are subject to claims, lawsuits, regulatory and government inquiries and investigations, other proceedings, and
consent orders involving competition, intellectual property, data privacy and security, tax and related compliance, labor
and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or
publishers using our platforms, design of our products and services, personal injury and other tort and nuisance theories,
consumer protection, including how we moderate content on our platforms, AI, and other matters. For example, we
periodically have data incidents that we report to relevant regulators as required by law. Such claims, consent orders,
lawsuits, regulatory and government investigations, and other proceedings could result in substantial fines and penalties,
injunctive relief, ongoing monitoring and auditing obligations, changes to our products and services, alterations to our
business models and operations, and collateral related civil litigation or other adverse consequences, all of which could
harm our business, reputation, financial condition, and operating results.
We have ongoing legal matters relating to Russia. For example, some matters concern civil judgments that include
compounding penalties imposed upon us in connection with disputes regarding the termination of accounts, including
those of sanctioned parties. We do not expect these ongoing legal matters will have a material adverse effect.

Non-Income Taxes

We are under audit by various domestic and foreign tax authorities with regards to non-income tax matters. The subject
matter of non-income tax audits primarily arises from disputes on the tax treatment and tax rate applied to the sale of our
products and services in these jurisdictions and the tax treatment of certain employee benefits. We accrue non-income
taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is
probable and reasonably estimable. If we determine that a loss is reasonably possible and the loss or range of loss can be
estimated, we disclose the reasonably possible loss. Due to the inherent complexity and uncertainty of these matters and
judicial process in certain jurisdictions, the final outcome may be materially different from our expectations.
See Note 14 for further details regarding income tax contingencies.

Note 11. Stockholders’ Equity

Class A and Class B Common Stock and Class C Capital Stock

Our Board of Directors has authorized three classes of stock, Class A and Class B common stock, and Class C capital stock.
The rights of the holders of each class of our common and capital stock are identical, except with respect to voting. Each
share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes
per share. Class C capital stock has no voting rights, except as required by applicable law. Shares of Class B common stock
may be converted at any time at the option of the stockholder and automatically convert upon sale or transfer to Class A
common stock.

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Alphabet reported $42.9 billion of unrecognized compensation cost related to unvested RSUs, expected to be recognized over a weighted-average period of 2.6 years.

alphabet2025:39e1ccd5d551e1b72a3e1f93c60173201641cc3de58e73da0da391bb0c57490d · forecast

Original source, physical page 92

As of December 31, 2025, there was $42.9 billion of unrecognized compensation cost related to unvested RSUs. This
amount is expected to be recognized over a weighted-average period of 2.6 years.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Note 13. Compensation Plans
Stock Plans

Our stock plans include the Alphabet Amended and Restated 2021 Stock Plan (“Alphabet 2021 Stock Plan”) and Other
Bets stock-based plans. Under our stock plans, RSUs and other types of awards may be granted. Under the Alphabet 2021
Stock Plan, an RSU award is an agreement to issue shares of our Class C stock at the time the award vests. RSUs generally
vest over four years contingent upon employment on the vesting date. RSUs are awarded dividend equivalents, which are
subject to the same vesting conditions as the underlying award, and settled in Class C shares.
As of December 31, 2025, there were 534 million shares of Class C stock reserved for future issuance under the Alphabet
2021 Stock Plan.

Stock-Based Compensation

For the years ended December 31, 2023, 2024, and 2025, total SBC expense was $22.1 billion, $22.8 billion, and $27.1 billion,
including amounts associated with awards we expect to settle in Alphabet stock of $21.7 billion, $22.0 billion, and
$24.1 billion, respectively.
For the years ended December 31, 2023, 2024, and 2025, we recognized tax benefits on total SBC expense, which are
reflected in the provision for income taxes, of $4.5 billion, $4.6 billion, and $5.0 billion, respectively.

For the years ended December 31, 2023, 2024, and 2025, tax benefit realized related to awards vested or exercised during
the period was $5.6 billion, $6.8 billion, and $8.1 billion, respectively. These amounts do not include the indirect effects of
stock-based awards, which primarily relate to the research and development tax credit.

Stock-Based Award Activities

Unvested as of December 31, 2024
Granted
Vested

Forfeited/canceled

Unvested as of December 31, 2025

Number of
Shares
299

Weighted-Average
Grant-Date Fair Value

122.77

(181) $

133.90

198

(34) $

282

188.82
142.33
159.75

The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2023 and 2024 was
$97.59 and $140.04, respectively. Total fair value of RSUs, as of their respective vesting dates, during the years ended
December 31, 2023, 2024, and 2025, were $26.6 billion, $33.3 billion, and $39.7 billion, respectively.
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amount is expected to be recognized over a weighted-average period of 2.6 years.

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US tax law changes enacted July 4, 2025 affected 2025 results, with certain changes effective in 2026.

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Original source, physical page 94

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changes effective in 2026. These changes are reflected in our results for the year ended December 31, 2025.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

The reconciliation of federal statutory income tax rate to our effective income tax rate was as follows:

US federal statutory rate

18,001

State and local income taxes, net of federal
income tax effect(1)

Foreign tax effects:
Brazil:

Withholding taxes
Other

2023

21.0%

25,161

823

1.0%

1,064

Effect of change in tax laws or rates enacted
in the current period

Effect of cross-border tax laws:

Foreign-derived intangible income
deduction
Other

Federal research credit
Foreign tax credits

1,199

1.0%

1,606

1.0%

1.2%

1,041

0.9%

1,384

0.9%

(74)

(0.1)%

353

0.3%

396

0.2%

(829)

(1.0)%

0

0.0%

0

0.0%

(3,980)

(4.6)%

(4,568)

(3.8)%

(3,931)

(2.5)%

(1,575)

(1.8)%

(1,792)

(1.5)%

(2,088)

(1.3)%

(498)

(0.6)%

(198)

(0.2)%

(98)

(0.1)%

(1,396)

Other

Changes in valuation allowances

513

Nontaxable or nondeductible items:

2025

33,353

215

Tax credits:

2024

21.0%

62

Other foreign jurisdictions

Year Ended December 31,

0.1%

12

0.2%

321

(1.6)%

(1,373)

0.6%

603

0.0%

23

0.3%

295

(1.1)%

(1,684)

0.5%

1,170

21.0%

0.0%

0.2%

(1.1)%
0.7%

Stock-based compensation expense

(602)

(0.7)%

(1,743)

(1.5)%

(2,601)

(1.6)%

Changes in unrecognized tax benefits

432

0.5%

689

0.6%

(1,123)

(0.7)%

Other

Other adjustments

Total
(1)

169

$

(403)

11,922

0.2%

(0.5)%

13.9%

203

$

(211)

19,697

0.2%

(0.2)%

16.4%

955

$

(1,002)

26,656

0.6%

(0.6)%

16.8%

The tax effect in this category primarily reflects state and local taxes in New York state, New York city, Pennsylvania, Minnesota, Illinois,
New Jersey and Wisconsin.

In 2023, the IRS issued a rule change allowing taxpayers to temporarily apply the regulations in effect prior to 2022 related
to US federal foreign tax credits as well as a separate rule change with guidance on the capitalization and amortization of
research and development expenses. A cumulative one-time adjustment for these tax rule changes was recorded in 2023.
Changes to US tax law enacted on July 4, 2025, allow for immediate expensing of domestic research and experimentation
costs, accelerated depreciation on eligible capital expenditures, and other tax law changes impacting 2025 with certain
changes effective in 2026. These changes are reflected in our results for the year ended December 31, 2025.

86

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approximately $13.0 billion, $25.1 billion, and $2.9 billion respectively. If not utilized, the federal, foreign and state net
operating loss carryforwards will all begin to expire in 2026. It is more likely than not that the majority of the net operating
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Full saved page including headers

Part I

Part II

Part III

Part IV

Deferred Income Taxes

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our
deferred tax assets and liabilities were as follows (in millions):
As of December 31,
Deferred tax assets:

Accrued employee benefits

Accruals and reserves not currently deductible

2024

$

Tax credits

1,834

2,552
6,384

Net operating losses

Other

Valuation allowance

Total deferred tax assets net of valuation allowance

24,758

44,857

48,026

2,143

(11,493)

(13,942)

(9,932)

(13,256)

(2,986)

(3,103)

33,364

Deferred tax liabilities:

Property and equipment, net

Net investment gains

(2,978)

Other

(1,008)

Operating leases

Net deferred tax assets (liabilities)

3,337

25,903
1,376

Total deferred tax assets

$

3,570
4,953

3,336

Capitalized research and development

1,951

7,314

3,472

Operating leases

Total deferred tax liabilities

$

2025

(16,904)
16,460

34,084

(8,242)
(1,289)

$

(25,890)
8,194

As of December 31, 2025, our federal, state, and foreign net operating loss carryforwards for income tax purposes were
approximately $13.0 billion, $25.1 billion, and $2.9 billion respectively. If not utilized, the federal, foreign and state net
operating loss carryforwards will all begin to expire in 2026. It is more likely than not that the majority of the net operating
loss carryforwards will not be realized. The net operating loss carryforwards are subject to various annual limitations under
the tax laws of the different jurisdictions.
As of December 31, 2025, our Federal and California research and development credit carryforwards for income
tax purposes were approximately $771 million and $6.4 billion, respectively. If not utilized, the Federal research and
development credit will begin to expire in 2037 and the California research and development credit can be carried over
indefinitely. We believe the majority of the federal tax credit and state tax credit is not likely to be realized.

As of December 31, 2025, our investment tax credit carryforwards for state income tax purposes were approximately
$1.3 billion and will begin to expire in 2033. We use the flow-through method of accounting for investment tax credits. We
believe this tax credit is not likely to be realized.

As of December 31, 2025, we maintained a valuation allowance with respect to California deferred tax assets, certain
federal net operating losses, certain state net operating losses and tax credits, net deferred tax assets relating to certain
Other Bet companies, and certain foreign net operating losses that we believe are not likely to be realized. We continue
to reassess the remaining valuation allowance quarterly, and if future evidence allows for a partial or full release of the
valuation allowance, a tax benefit will be recorded accordingly.

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Part I

Part II

Part III

Part IV

Deferred Income Taxes

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our
deferred tax assets and liabilities were as follows (in millions):
As of December 31,
Deferred tax assets:

Accrued employee benefits

Accruals and reserves not currently deductible

2024

$

Tax credits

1,834

2,552
6,384

Net operating losses

Other

Valuation allowance

Total deferred tax assets net of valuation allowance

24,758

44,857

48,026

2,143

(11,493)

(13,942)

(9,932)

(13,256)

(2,986)

(3,103)

33,364

Deferred tax liabilities:

Property and equipment, net

Net investment gains

(2,978)

Other

(1,008)

Operating leases

Net deferred tax assets (liabilities)

3,337

25,903
1,376

Total deferred tax assets

$

3,570
4,953

3,336

Capitalized research and development

1,951

7,314

3,472

Operating leases

Total deferred tax liabilities

$

2025

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16,460

34,084

(8,242)
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$

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8,194

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loss carryforwards will not be realized. The net operating loss carryforwards are subject to various annual limitations under
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tax purposes were approximately $771 million and $6.4 billion, respectively. If not utilized, the Federal research and
development credit will begin to expire in 2037 and the California research and development credit can be carried over
indefinitely. We believe the majority of the federal tax credit and state tax credit is not likely to be realized.

As of December 31, 2025, our investment tax credit carryforwards for state income tax purposes were approximately
$1.3 billion and will begin to expire in 2033. We use the flow-through method of accounting for investment tax credits. We
believe this tax credit is not likely to be realized.

As of December 31, 2025, we maintained a valuation allowance with respect to California deferred tax assets, certain
federal net operating losses, certain state net operating losses and tax credits, net deferred tax assets relating to certain
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Gross unrecognized tax benefits were reported at $11.5 billion as of December 31, 2025, of which $9.7 billion would affect the effective tax rate if recognized.

alphabet2025:89f42804273b214c91f758f232cf0a7d33c74e991b2e8f4192de8ea5cd43ab77 · challenge

Original source, physical page 96

The total amount of gross unrecognized tax
benefits was $9.4 billion, $12.6 billion, and $11.5 billion as of December 31, 2023, 2024, and 2025, respectively, of
which $7.4 billion, $10.0 billion, and $9.7 billion, if recognized, would affect our effective tax rate, respectively.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Cash paid for income taxes, net of refunds, were as follows (in millions):
Year Ended December 31,

US federal

US state and local

$

Foreign:
Brazil

Total cash paid for income taxes, net of refunds

13,689
1,224

$

1,264

Other

Total foreign

2023

4,251

19,164

19,921
2,697

$

2025

13,658
2,919

1,101

2,987
$

2024

1,368

3,634
$

4,735

27,353

3,581
$

4,949

21,526

Uncertain Tax Positions

The following table summarizes the activity related to our gross unrecognized tax benefits (in millions):
Year Ended December 31,

Beginning gross unrecognized tax benefits

Increases related to prior year tax positions

$

2023

7,055
740

Decreases related to prior year tax positions

(682)

Increases related to current year tax positions

2,346

Decreases related to settlement with tax authorities

Ending gross unrecognized tax benefits

$

9,438

9,438
896

$

2025

12,619
278

(83)

(21)

$

2024

(1,301)

(311)

$

2,679

12,619

(2,183)
$

2,099

11,512

We are subject to income taxes in the US and foreign jurisdictions. Significant judgment is required in evaluating our
uncertain tax positions and determining our provision for income taxes. The total amount of gross unrecognized tax
benefits was $9.4 billion, $12.6 billion, and $11.5 billion as of December 31, 2023, 2024, and 2025, respectively, of
which $7.4 billion, $10.0 billion, and $9.7 billion, if recognized, would affect our effective tax rate, respectively.

As of December 31, 2024 and 2025, we accrued $1.1 billion and $1.2 billion in interest and penalties in provision for income
taxes, respectively.
We are subject to the continuous examination of our income tax returns by the IRS and other tax authorities. The IRS
is currently examining our 2019 through 2021 tax returns. We have also received tax assessments in multiple foreign
jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend such
claims as presented.

We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of
our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the
effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.

We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However,
the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a
manner not consistent with management’s expectations, we could be required to adjust our provision for income taxes in
the period such resolutions occur.

88

Alphabet 2025 Annual Report

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The report said the IRS was examining the 2019 through 2021 tax returns and that multiple foreign jurisdictions had asserted transfer pricing adjustments or permanent establishment assessments.

alphabet2025:fbc37d88936f8ce1a0fa8b71de7d4855795ce7b2911e21ac22217d95d9633e96 · challenge

Original source, physical page 96

We are subject to the continuous examination of our income tax returns by the IRS and other tax authorities. The IRS
is currently examining our 2019 through 2021 tax returns. We have also received tax assessments in multiple foreign
jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend such
claims as presented.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Cash paid for income taxes, net of refunds, were as follows (in millions):
Year Ended December 31,

US federal

US state and local

$

Foreign:
Brazil

Total cash paid for income taxes, net of refunds

13,689
1,224

$

1,264

Other

Total foreign

2023

4,251

19,164

19,921
2,697

$

2025

13,658
2,919

1,101

2,987
$

2024

1,368

3,634
$

4,735

27,353

3,581
$

4,949

21,526

Uncertain Tax Positions

The following table summarizes the activity related to our gross unrecognized tax benefits (in millions):
Year Ended December 31,

Beginning gross unrecognized tax benefits

Increases related to prior year tax positions

$

2023

7,055
740

Decreases related to prior year tax positions

(682)

Increases related to current year tax positions

2,346

Decreases related to settlement with tax authorities

Ending gross unrecognized tax benefits

$

9,438

9,438
896

$

2025

12,619
278

(83)

(21)

$

2024

(1,301)

(311)

$

2,679

12,619

(2,183)
$

2,099

11,512

We are subject to income taxes in the US and foreign jurisdictions. Significant judgment is required in evaluating our
uncertain tax positions and determining our provision for income taxes. The total amount of gross unrecognized tax
benefits was $9.4 billion, $12.6 billion, and $11.5 billion as of December 31, 2023, 2024, and 2025, respectively, of
which $7.4 billion, $10.0 billion, and $9.7 billion, if recognized, would affect our effective tax rate, respectively.

As of December 31, 2024 and 2025, we accrued $1.1 billion and $1.2 billion in interest and penalties in provision for income
taxes, respectively.
We are subject to the continuous examination of our income tax returns by the IRS and other tax authorities. The IRS
is currently examining our 2019 through 2021 tax returns. We have also received tax assessments in multiple foreign
jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend such
claims as presented.

We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of
our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the
effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.

We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However,
the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a
manner not consistent with management’s expectations, we could be required to adjust our provision for income taxes in
the period such resolutions occur.

88

Alphabet 2025 Annual Report

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The report said it believed adequate tax provisions had been made, while noting that audit outcomes could not be predicted with certainty and that provisions could require adjustment.

alphabet2025:d0eb8fe3d2bc7eadb70b8f85b62d7f16f25e374c474eeb3684155960087358ce · challenge

Original source, physical page 96

We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However,
the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a
manner not consistent with management’s expectations, we could be required to adjust our provision for income taxes in
the period such resolutions occur.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Cash paid for income taxes, net of refunds, were as follows (in millions):
Year Ended December 31,

US federal

US state and local

$

Foreign:
Brazil

Total cash paid for income taxes, net of refunds

13,689
1,224

$

1,264

Other

Total foreign

2023

4,251

19,164

19,921
2,697

$

2025

13,658
2,919

1,101

2,987
$

2024

1,368

3,634
$

4,735

27,353

3,581
$

4,949

21,526

Uncertain Tax Positions

The following table summarizes the activity related to our gross unrecognized tax benefits (in millions):
Year Ended December 31,

Beginning gross unrecognized tax benefits

Increases related to prior year tax positions

$

2023

7,055
740

Decreases related to prior year tax positions

(682)

Increases related to current year tax positions

2,346

Decreases related to settlement with tax authorities

Ending gross unrecognized tax benefits

$

9,438

9,438
896

$

2025

12,619
278

(83)

(21)

$

2024

(1,301)

(311)

$

2,679

12,619

(2,183)
$

2,099

11,512

We are subject to income taxes in the US and foreign jurisdictions. Significant judgment is required in evaluating our
uncertain tax positions and determining our provision for income taxes. The total amount of gross unrecognized tax
benefits was $9.4 billion, $12.6 billion, and $11.5 billion as of December 31, 2023, 2024, and 2025, respectively, of
which $7.4 billion, $10.0 billion, and $9.7 billion, if recognized, would affect our effective tax rate, respectively.

As of December 31, 2024 and 2025, we accrued $1.1 billion and $1.2 billion in interest and penalties in provision for income
taxes, respectively.
We are subject to the continuous examination of our income tax returns by the IRS and other tax authorities. The IRS
is currently examining our 2019 through 2021 tax returns. We have also received tax assessments in multiple foreign
jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend such
claims as presented.

We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of
our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the
effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.

We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However,
the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a
manner not consistent with management’s expectations, we could be required to adjust our provision for income taxes in
the period such resolutions occur.

88

Alphabet 2025 Annual Report

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The report identifies Sundar Pichai as the CODM and says segment operating income is used to allocate resources and assess segment performance against the annual plan.

alphabet2025:da6701fcfb6516883751bdcc975bee71d6862d9943ee55e1f86e3362911922c3 · reported_fact

Original source, physical page 97

Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, Sundar Pichai. Our CODM uses segment
operating income (loss) to allocate resources to our segments in our annual planning process and to assess the
performance of our segments, primarily by monitoring actual results versus the annual plan.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Note 15. Information about Segments and Geographic Areas
We report our segment results as Google Services, Google Cloud, and Other Bets:

• Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets
are generated primarily from the sale of autonomous transportation services and internet services.
Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering activities, and
devices, as well as certain operating expenses are directly attributable to our segments. Due to the integrated nature
of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are managed centrally at a
consolidated level. These costs, including the associated depreciation, are allocated to operating segments as a service
cost generally based on usage, headcount, or revenue.

Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include:
• certain AI-focused shared research and development activities, including employee compensation expenses and
technical infrastructure usage costs associated with the development of our general AI models;
• corporate initiatives such as our philanthropic activities; and

• corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and
settlements.

Charges associated with employee severance and office space reductions are also not allocated to our segments.
Additionally, hedging gains (losses) related to revenue are not allocated to our segments.

Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer, Sundar Pichai. Our CODM uses segment
operating income (loss) to allocate resources to our segments in our annual planning process and to assess the
performance of our segments, primarily by monitoring actual results versus the annual plan. Our operating segments are
not evaluated using asset information.

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The segment table reports total revenues of $402,836 million for 2025.

alphabet2025:673fe7a664999843cbc9fa9e412cb76f7836804105adfe6c6cf87d28ea426c7e · reported_fact

Original source, physical page 98

The following table presents revenue, profitability, and expense information about our segments (in millions):
Year Ended December 31,

Revenues:

Google Services

Google Cloud

2023
$

Other Bets

Hedging gains (losses)

272,543
33,088

2024

$

1,527

236

304,930

$

43,229

2025
342,721
58,705

1,648

1,537

211

(127)

Total revenues

$

307,394

$

350,018

$

402,836

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

The following table presents revenue, profitability, and expense information about our segments (in millions):
Year Ended December 31,

Revenues:

Google Services

Google Cloud

2023
$

Other Bets

Hedging gains (losses)

272,543
33,088

2024

$

1,527

236

304,930

$

43,229

2025
342,721
58,705

1,648

1,537

211

(127)

Total revenues

$

307,394

$

350,018

$

402,836

Google Services

$

95,858

$

121,263

$

139,404

Operating income (loss):
Google Cloud

Other Bets

Alphabet-level activities

Total income from operations

Supplemental information about segment expenses:
Google Services:

Employee compensation expenses
Other costs and expenses

Total Google Services costs and expenses

Google Cloud:

Employee compensation expenses
Other costs and expenses

Total Google Cloud costs and expenses

1,716

(4,095)
(9,186)

6,112

(4,444)

13,910

(7,515)

(10,541)

(16,760)

$

84,293

$

112,390

$

129,039

$

46,224

$

44,560

$

45,124

176,685

$

183,667

$

19,054

$

20,519

$

31,372

$

37,117

$

$
$
$

130,461

12,318

139,107

16,598

158,193

203,317
22,078

22,717

44,795

Google Services and Google Cloud employee compensation expenses include the costs associated with direct and
allocated employees. Google Services and Google Cloud other costs and expenses primarily include direct costs, such as
advertising and promotional activities, legal and other matters, and third-party services fees as well as allocated costs,
such as technical infrastructure and office facilities usage costs. Additionally, Google Services other costs and expenses
include content and traffic acquisition costs and device costs.
See Note 2 for further details relating to revenues by geography.

The following table presents long-lived assets by geographic area, which includes property and equipment, net and
operating lease assets (in millions):
As of December 31,
Long-lived assets:
United States

International

Total long-lived assets

Note 16. Subsequent Event

2024

2025

$

138,993

$

195,337

$

184,624

$

261,818

45,631

66,481

In January 2026, we recognized approximately $32.0 billion of unrealized gains in our non-marketable investments. These
unrealized gains reflect an estimated increase in the fair value measurement following observable transactions that occurred
in January 2026, and are subject to change as we finalize related valuations. See Note 3 and Note 7 for further details on equity
investments and OI&E.
90

Alphabet 2025 Annual Report

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In January 2026, the report says it recognized approximately $32.0 billion of unrealized gains in non-marketable investments based on estimated fair value increases following observable transactions.

alphabet2025:120599473beead2c3013423c68b5951c525748aa2bddb6e03d69e5c68c2e49d9 · reported_fact

Original source, physical page 98

In January 2026, we recognized approximately $32.0 billion of unrealized gains in our non-marketable investments. These
unrealized gains reflect an estimated increase in the fair value measurement following observable transactions that occurred
in January 2026, and are subject to change as we finalize related valuations.

Alphabet 2025 Annual Report. Container publication metadata: 2026-06-05 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

The following table presents revenue, profitability, and expense information about our segments (in millions):
Year Ended December 31,

Revenues:

Google Services

Google Cloud

2023
$

Other Bets

Hedging gains (losses)

272,543
33,088

2024

$

1,527

236

304,930

$

43,229

2025
342,721
58,705

1,648

1,537

211

(127)

Total revenues

$

307,394

$

350,018

$

402,836

Google Services

$

95,858

$

121,263

$

139,404

Operating income (loss):
Google Cloud

Other Bets

Alphabet-level activities

Total income from operations

Supplemental information about segment expenses:
Google Services:

Employee compensation expenses
Other costs and expenses

Total Google Services costs and expenses

Google Cloud:

Employee compensation expenses
Other costs and expenses

Total Google Cloud costs and expenses

1,716

(4,095)
(9,186)

6,112

(4,444)

13,910

(7,515)

(10,541)

(16,760)

$

84,293

$

112,390

$

129,039

$

46,224

$

44,560

$

45,124

176,685

$

183,667

$

19,054

$

20,519

$

31,372

$

37,117

$

$
$
$

130,461

12,318

139,107

16,598

158,193

203,317
22,078

22,717

44,795

Google Services and Google Cloud employee compensation expenses include the costs associated with direct and
allocated employees. Google Services and Google Cloud other costs and expenses primarily include direct costs, such as
advertising and promotional activities, legal and other matters, and third-party services fees as well as allocated costs,
such as technical infrastructure and office facilities usage costs. Additionally, Google Services other costs and expenses
include content and traffic acquisition costs and device costs.
See Note 2 for further details relating to revenues by geography.

The following table presents long-lived assets by geographic area, which includes property and equipment, net and
operating lease assets (in millions):
As of December 31,
Long-lived assets:
United States

International

Total long-lived assets

Note 16. Subsequent Event

2024

2025

$

138,993

$

195,337

$

184,624

$

261,818

45,631

66,481

In January 2026, we recognized approximately $32.0 billion of unrealized gains in our non-marketable investments. These
unrealized gains reflect an estimated increase in the fair value measurement following observable transactions that occurred
in January 2026, and are subject to change as we finalize related valuations. See Note 3 and Note 7 for further details on equity
investments and OI&E.
90

Alphabet 2025 Annual Report

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Management concluded that internal control over financial reporting was effective as of December 31, 2025.

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Based on this evaluation,
management concluded that our internal control over financial reporting was effective as of December 31, 2025.

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Part I

Part II

Part III

Part IV

Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the
effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the end of
the period covered by this Annual Report on Form 10-K.

Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of December 31,
2025, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide
reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act
is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that
such information is accumulated and communicated to our management, including our chief executive officer and chief
financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the quarter ended
December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as
defined in Rule 13a-15(f) of the Exchange Act. Our management conducted an evaluation of the effectiveness of our
internal control over financial reporting based on the framework in Internal Control—Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this evaluation,
management concluded that our internal control over financial reporting was effective as of December 31, 2025.
Management reviewed the results of its assessment with our Audit Committee. The effectiveness of our internal control
over financial reporting as of December 31, 2025 has been audited by Ernst & Young LLP, an independent registered public
accounting firm, as stated in its report which is included in Item 8 of this Annual Report on Form 10-K.

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and
procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired
control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are
resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls
and procedures relative to their costs.

Alphabet 2025 Annual Report

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EC issued an adtech decision imposing a €3 billion fine; Alphabet recognized a $3.5 billion Q3 charge, appealed in November and supplied Q4 bank guarantees in lieu of cash payment.

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Further, in September 2025, the EC announced its decision that Google had infringed European competition laws
through “self-preferencing” practices on the buy-side and the sell-side relating to Google’s advertising technology
business. The EC decision imposed a €3.0 billion fine and directed Google to cease and desist the alleged
“self-preferencing” practices. We appealed the ruling in November 2025. We recognized a charge of $3.5 billion in the
third quarter of 2025, and we placed bank guarantees in the fourth quarter of 2025 in lieu of cash payment.

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Part I

Part II

Part III

Part IV

Privacy Matters

We are subject to a number of privacy-related laws and regulations, and we currently are party to a number of privacy
investigations and lawsuits ongoing in multiple jurisdictions. For example, there are ongoing investigations and litigation in
the US and the EU, including those relating to our collection and use of location information, the choices we offer users,
and advertising practices, which could result in significant fines, judgments, and product changes. In October 2025, we
finalized a $1.4 billion settlement of certain privacy matters.
78

Alphabet 2025 Annual Report

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Alphabet reported 2021 consolidated revenues of $257.6 billion, up 41% year over year, primarily driven by Google Services and Google Cloud.

alphabet2021:0629f1198af7c4141989d7d984552ecdf39e0458852e7ce5721915207cb554b5 · reported_fact

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Revenues were $257.6 billion, an increase of 41%. The increase in revenues was primarily driven by Google Services and Google Cloud.

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Table of Contents

Alphabet Inc.

Other Income (Expense), Net
Other income (expense), net primarily consists of interest income (expense), the effect of foreign currency exchange gains (losses), net gains
(losses) and impairment on our marketable and non-marketable securities, performance fees, and income (loss) and impairment from our equity
method investments.
For additional details, including how we account for our investments and factors that can drive fluctuations in the value of our investments, see
Note 1 and Note 3 of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K as well as Item
7A, “Quantitative and Qualitative Disclosures About Market Risk”.
Provision for Income Taxes
Provision for income taxes represents the estimated amount of federal, state, and foreign income taxes incurred in the U.S. and the many
jurisdictions in which we operate. The provision includes the effect of reserve provisions and changes to reserves that are considered appropriate as
well as the related net interest and penalties.
For additional details, including a reconciliation of the U.S. federal statutory rate to our effective tax rate, see Note 14 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Executive Overview
The following table summarizes consolidated financial results for the years ended December 31, 2020 and 2021 unless otherwise specified (in
millions, except for per share information and percentages):
Year Ended December 31,
2020

2021

$ Change

% Change

Consolidated revenues
Change in consolidated constant currency revenues

182,527

257,637

75,110

41 %
39 %

Cost of revenues
Operating expenses

$
$

84,732
56,571

$
$

110,939
67,984

$
$

26,207
11,413

31 %
20 %

Operating income
Operating margin

41,224
$
23 %

78,714
$
31 %

37,490

91 %
8%

Other income (expense), net

6,858

12,020

5,162

75 %

Net Income
Diluted EPS

$
$

40,269
58.61

$
$

76,033
112.20

$
$

35,764
53.59

89 %
91 %

21,199

16 %

Number of Employees

135,301

156,500

•

Revenues were $257.6 billion, an increase of 41%. The increase in revenues was primarily driven by Google Services and Google Cloud.
The adverse effect of COVID-19 on 2020 advertising revenues also contributed to the year-over-year growth.

•

Cost of revenues was $110.9 billion, an increase of 31%, primarily driven by increases in TAC and content acquisition costs. An overall
increase in data centers and other operations costs was partially offset by a reduction in depreciation expense due to the change in the
estimated useful life of our servers and certain network equipment.

•

Operating expenses were $68.0 billion, an increase of 20%, primarily driven by headcount growth, increases in advertising and promotional
expenses and charges related to legal matters.

Other information:
•

Operating cash flow was $91.7 billion, primarily driven by revenues generated from our advertising products.

•

Share repurchases were $50.3 billion, an increase of 62%. See Note 11 of the Notes to Consolidated Financial Statements included in Item 8
of this Annual Report on Form 10-K for further information.

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Alphabet reported 2021 net income of $76.0 billion and diluted EPS of $112.20.

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Net Income
Diluted EPS

$
$

40,269
58.61

$
$

76,033
112.20

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Alphabet Inc.

2021

$ Change

% Change

Consolidated revenues
Change in consolidated constant currency revenues

182,527

257,637

75,110

41 %
39 %

Cost of revenues
Operating expenses

$
$

84,732
56,571

$
$

110,939
67,984

$
$

26,207
11,413

31 %
20 %

Operating income
Operating margin

41,224
$
23 %

78,714
$
31 %

37,490

91 %
8%

Other income (expense), net

6,858

12,020

5,162

75 %

Net Income
Diluted EPS

$
$

40,269
58.61

$
$

76,033
112.20

$
$

35,764
53.59

89 %
91 %

21,199

16 %

Number of Employees

135,301

156,500

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•

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•

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Alphabet stated that it had invested more than $100 billion in R&D over the last five years.

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We have
invested more than $100 billion in R&D over the last five years.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

•

the sufficiency and timing of our proposed remedies in response to decisions from the European Commission (EC) and other regulators and
governmental entities;

•

our expectations regarding the timing, design, and ongoing phased implementation of our new global enterprise resource planning (ERP)
system;

•

the expected timing, amount, and effect of Alphabet Inc.'s share repurchases;

•

our long-term sustainability and diversity goals;

as well as other statements regarding our future operations, financial condition and prospects, and business strategies. Forward-looking statements
may appear throughout this report and other documents we file with the Securities and Exchange Commission (SEC), including without limitation, the
following sections: Part I, Item 1 "Business;" Part I, Item 1A "Risk Factors;" and Part II, Item 7 "Management’s Discussion and Analysis of Financial
Condition and Results of Operations." Forward-looking statements generally can be identified by words such as "anticipates," "believes," "estimates,"
"expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "may," "could," "will likely result," and similar expressions. These forwardlooking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual
results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include,
but are not limited to, those discussed in this Annual Report on Form 10-K, and in particular, the risks discussed in Part I, Item 1A, "Risk Factors" of
this report and those discussed in other documents we file with the SEC. We undertake no obligation to revise or publicly release the results of any
revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements.
As used herein, "Alphabet," "the company," "we," "us," "our," and similar terms include Alphabet Inc. and its subsidiaries, unless the context
indicates otherwise.
"Alphabet," "Google," and other trademarks of ours appearing in this report are our property. This report contains additional trade names and
trademarks of other companies. We do not intend our use or display of other companies' trade names or trademarks to imply an endorsement or
sponsorship of us by such companies, or any relationship with any of these companies.
PART I
ITEM 1.

BUSINESS

Overview
As our founders Larry and Sergey wrote in the original founders' letter, "Google is not a conventional company. We do not intend to become
one." That unconventional spirit has been a driving force throughout our history, inspiring us to tackle big problems and invest in moonshots like
artificial intelligence (AI) research and quantum computing. We continue this work under the leadership of Sundar Pichai, who has served as CEO of
Google since 2015 and as CEO of Alphabet since 2019.
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google Services and Google Cloud;
we also report all non-Google businesses collectively as Other Bets. Other Bets include earlier stage technologies that are further afield from our core
Google business. We take a long-term view and manage the portfolio of Other Bets with the discipline and rigor needed to deliver long-term returns.
Alphabet's structure is about helping each of our businesses prosper through strong leaders and independence.
Access and technology for everyone
The Internet is one of the world’s most powerful equalizers; it propels ideas, people and businesses large and small. Our mission to organize the
world’s information and make it universally accessible and useful is as relevant today as it was when we were founded in 1998. Since then, we have
evolved from a company that helps people find answers to a company that also helps people get things done.
We are focused on building an even more helpful Google for everyone, and we aspire to give everyone the tools they need to increase their
knowledge, health, happiness, and success. Every year, there are trillions of searches on Google, and 15% of the searches we see every day are
new. We continue to invest deeply in AI and other technologies to ensure the most helpful search experience possible. YouTube provides people with
entertainment, information, and opportunities to learn something new. And Google Assistant offers the best way to get things done seamlessly across
different devices, providing intelligent help throughout a person's day, no matter where they are.
We are continually innovating and building new product features that will help our users, partners, customers, and communities. We have
invested more than $100 billion in R&D over the last five years. In addition, with the onset of

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Alphabet reported 156,500 employees as of December 31, 2021.

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As of December 31, 2021, Alphabet had 156,500 employees.

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Alphabet Inc.

development, resources to support their financial health, and access to excellent healthcare choices. Our competitive compensation programs help
us to attract and retain top candidates, and we will continue to invest in recruiting talented people to technical and non-technical roles, and rewarding
them well. We provide a variety of high quality training and support to our managers to build and strengthen their capabilities-–ranging from courses
for new managers, to learning resources that help them provide feedback and manage performance, to coaching and individual support.
At Alphabet, we are committed to making diversity, equity, and inclusion part of everything we do and to growing a workforce that is
representative of the users we serve. More information on Google’s approach to diversity can be found in our annual diversity reports, available
publicly at diversity.google. The contents of our diversity reports are not incorporated by reference into this Annual Report on Form 10-K or in any
other report or document we file with the SEC.
As of December 31, 2021, Alphabet had 156,500 employees. We have work councils and statutory employee representation obligations in
certain countries, and we are committed to supporting protected labor rights, maintaining an open culture and listening to all employees. Supporting
healthy and open dialogue is central to how we work, and we communicate information about the company through multiple internal channels to our
employees.
When necessary, we contract with businesses around the world to provide specialized services where we do not have appropriate in-house
expertise or resources, often in fields that require specialized training like cafe operations, content moderation, customer support, and physical
security. We also contract with temporary staffing agencies when we need to cover short-term leaves, when we have spikes in business needs, or
when we need to quickly incubate special projects. We choose our partners and staffing agencies carefully, and review their compliance with
Google’s Supplier Code of Conduct. We continually make improvements to promote a respectful and positive working environment for everyone —
employees, vendors, and temporary staff alike.
Government Regulation
We are subject to numerous United States (U.S.) federal, state, and foreign laws and regulations covering a wide variety of subject matters. Like
other companies in the technology industry, we face heightened scrutiny from both U.S. and foreign governments with respect to our compliance with
laws and regulations. Many of these laws and regulations are evolving and their applicability and scope, as interpreted by the courts, remain
uncertain.
Our compliance with these laws and regulations may be onerous and could, individually or in the aggregate, increase our cost of doing business,
make our products and services less useful, limit our ability to pursue certain business models, cause us to change our business practices, affect our
competitive position relative to our peers, and/or otherwise have an adverse effect on our business, reputation, financial condition, and operating
results.
For additional information about government regulation applicable to our business, see Risk Factors in Item 1A, Trends in Our Business and
Financial Effect in Part II, Item 7, and Legal Matters in Note 10 of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this
Annual Report on Form 10-K.
Intellectual Property
We rely on various intellectual property laws, confidentiality procedures and contractual provisions to protect our proprietary technology and our
brand. We have registered, and applied for the registration of, U.S. and international trademarks, service marks, domain names and copyrights. We
have also filed patent applications in the U.S. and foreign countries covering certain of our technology, and acquired patent assets to supplement our
portfolio. We have licensed in the past, and expect that we may license in the future, certain of our rights to other parties. For additional information,
see Risk Factors in Item 1A of this Annual Report on Form 10-K.
Available Information
Our website is located at www.abc.xyz, and our investor relations website is located at www.abc.xyz/investor. Our Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our Proxy Statements, and any amendments to these reports, are available
through our investor relations website, free of charge, after we file them with the SEC. We also provide a link to the section of the SEC's website at
www.sec.gov that has all of the reports that we file or furnish with the SEC.
We webcast via our investor relations website our earnings calls and certain events we participate in or host with members of the investment
community. Our investor relations website also provides notifications of news or announcements regarding our financial performance and other items
that may be material or of interest to our investors, including SEC filings, investor events, press and earnings releases, and blogs. We also share
Google news and product updates on Google's Keyword blog at https://www.blog.google/, that may be material or of interest to our investors. Further,
corporate governance information, including our certificate of incorporation, bylaws, governance

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Alphabet aims by 2030 to run on carbon-free energy continuously throughout the year.

alphabet2021:46bba4d855a02eeac830b9a0b0e1e167157ed35e533a2733d2dc9d3c908658d2 · aspiration

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become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a year;

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Table of Contents

Alphabet Inc.

Ongoing Commitment to Sustainability
We believe that every business has the opportunity and obligation to protect our planet. Sustainability is one of our core values at Google, and
we strive to build sustainability into everything we do. We have been a leader on sustainability and climate change since Google’s founding over 20
years ago. These are some of our key achievements over the past two decades:
•

In 2007, we became the first major company to be carbon neutral for our operations.

•

In 2017, we became the first major company to match 100% of our annual electricity use with renewable energy, which we have achieved for
four consecutive years.

•

In 2020, we issued $5.75 billion in sustainability bonds—the largest sustainability or green bond issuance by any company in history at the
time. The net proceeds from the issuance are used to fund environmentally and socially responsible projects in the following eight areas:
energy efficiency, clean energy, green buildings, clean transportation, circular economy and design, affordable housing, commitment to racial
equity, and support for small businesses and COVID-19 crisis response. As of December 31, 2020, we have allocated $3.47 billion of the net
proceeds, as outlined in our Sustainability Bond Impact Report published in 2021.

•

Also in 2020, we compensated for our legacy carbon footprint, making Google the first major company to be carbon neutral for its entire
operating history.

Our sustainability strategy is focused on three key pillars: accelerating the transition to carbon-free energy and a circular economy, empowering
everyone with technology, and benefiting the people and places where we operate.
To accelerate the transition to a carbon-free economy, in 2020, we launched our third decade of climate action, and we are now working toward
a new set of ambitious goals. By 2030, we aim to:
•

achieve net-zero emissions across all of our operations and value chain;

•

become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a year;

•

enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions; and

•

help more than 500 cities and local governments reduce an aggregate of 1 gigaton of carbon emissions annually.

To accelerate the transition to a circular economy, we are working to maximize the reuse of finite resources across our operations, products, and
supply chains and to enable others to do the same. We are also working to empower everyone with technology by committing to help 1 billion people
make more sustainable choices by the end of 2022 through our core products.
To benefit the people and places where we operate, we have set goals to replenish more water than we consume by 2030 and to support water
security in communities where we operate. We will focus on three areas: enhancing our stewardship of water resources across Google office
campuses and data centers; replenishing our water use and improving watershed health and ecosystems in water-stressed communities; and sharing
technology and tools that help everyone predict, prevent, and recover from water stress.
We remain steadfast in our commitment to sustainability, and we will continue to lead and encourage others to join us in improving the health of
our planet. We are proud of what we have achieved so far, and we are energized to help move the world closer to a more sustainable and carbonfree future for all.
More information on our approach to sustainability can be found in our annual sustainability reports, including Google’s Environmental Report
and Alphabet’s 2021 Sustainability Bond Impact Report, which outlines the allocation of our net proceeds from our sustainability bonds. The contents
of our sustainability reports are not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the
SEC. For additional information about risks and uncertainties applicable to our commitments to attain certain sustainability goals, see Risk Factors in
Item 1A of this Annual Report on Form 10-K.
Culture and Workforce
We are a company of curious, talented, and passionate people. We embrace collaboration and creativity, and encourage the iteration of ideas to
address complex challenges in technology and society.
Our people are critical for our continued success, so we work hard to create an environment where employees can have fulfilling careers, and
be happy, healthy, and productive. We offer industry-leading benefits and programs to take care of the diverse needs of our employees and their
families, including opportunities for career growth and

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Alphabet aims by 2030 to enable 5 gigawatts of new carbon-free energy through investments in key manufacturing regions.

alphabet2021:2ff2cfd9aa699a32fb3c8bc4afb0445e0d54851b931f73d236adb46e982b39b9 · aspiration

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enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions;

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Alphabet Inc.

In 2007, we became the first major company to be carbon neutral for our operations.

•

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four consecutive years.

•

Also in 2020, we compensated for our legacy carbon footprint, making Google the first major company to be carbon neutral for its entire
operating history.

achieve net-zero emissions across all of our operations and value chain;

•

become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a year;

•

enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions; and

•

help more than 500 cities and local governments reduce an aggregate of 1 gigaton of carbon emissions annually.

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Alphabet aims by 2030 to help more than 500 cities and local governments reduce an aggregate of 1 gigaton of carbon emissions annually.

alphabet2021:387df17c5328204fb8ebd4a976b8d7b32648de94db487b22c55d009d08cda7ad · aspiration

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help more than 500 cities and local governments reduce an aggregate of 1 gigaton of carbon emissions annually.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

In 2007, we became the first major company to be carbon neutral for our operations.

•

In 2017, we became the first major company to match 100% of our annual electricity use with renewable energy, which we have achieved for
four consecutive years.

•

Also in 2020, we compensated for our legacy carbon footprint, making Google the first major company to be carbon neutral for its entire
operating history.

achieve net-zero emissions across all of our operations and value chain;

•

become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a year;

•

enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions; and

•

help more than 500 cities and local governments reduce an aggregate of 1 gigaton of carbon emissions annually.

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Alphabet committed to help 1 billion people make more sustainable choices through its core products by the end of 2022.

alphabet2021:a3d623d8c32e62b6998ee365a5aa8b0f527ca7958254c7c927b3a3ee6754ab18 · measurable_promise

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We are also working to empower everyone with technology by committing to help 1 billion people
make more sustainable choices by the end of 2022 through our core products.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

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Alphabet Inc.

In 2007, we became the first major company to be carbon neutral for our operations.

•

In 2017, we became the first major company to match 100% of our annual electricity use with renewable energy, which we have achieved for
four consecutive years.

•

Also in 2020, we compensated for our legacy carbon footprint, making Google the first major company to be carbon neutral for its entire
operating history.

achieve net-zero emissions across all of our operations and value chain;

•

become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a year;

•

enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions; and

•

help more than 500 cities and local governments reduce an aggregate of 1 gigaton of carbon emissions annually.

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Alphabet set a goal to replenish more water than it consumes by 2030.

alphabet2021:cfc408f6c5107e75c08ef95bb127660c6dbd7689d96e7fc81e5c9f9e6e72375e · aspiration

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we have set goals to replenish more water than we consume by 2030

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

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Alphabet Inc.

In 2007, we became the first major company to be carbon neutral for our operations.

•

In 2017, we became the first major company to match 100% of our annual electricity use with renewable energy, which we have achieved for
four consecutive years.

•

Also in 2020, we compensated for our legacy carbon footprint, making Google the first major company to be carbon neutral for its entire
operating history.

achieve net-zero emissions across all of our operations and value chain;

•

become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a year;

•

enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions; and

•

help more than 500 cities and local governments reduce an aggregate of 1 gigaton of carbon emissions annually.

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Alphabet expects the continuing shift from offline to online activity to continue benefiting its business.

alphabet2021:c784326a4bf6d9a60df6bc305cef3ae32a3bf03998734ee2cbb004506b329230 · forecast

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The continuing shift from an offline to online world has contributed to the growth of our business since inception, contributing to revenue growth,
and we expect that this online shift will continue to benefit our business.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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ITEM 7.

Alphabet Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Please read the following discussion and analysis of our financial condition and results of operations together with “Note about Forward-Looking
Statements,” Part I, Item 1 "Business," Part I, Item 1A "Risk Factors," and our consolidated financial statements and related notes included under
Item 8 of this Annual Report on Form 10-K.
We have omitted discussion of 2019 results where it would be redundant to the discussion previously included in Item 7 of our 2020 Annual
Report on Form 10-K.
Understanding Alphabet’s Financial Results
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google Services and Google Cloud;
we also report all non-Google businesses collectively as Other Bets. Other Bets include earlier stage technologies that are further afield from our core
Google business. For further details on our segments, see Part I, Item 1 “Business” and Note 15 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.
Trends in Our Business and Financial Effect
The following long-term trends have contributed to the results of our consolidated operations, and we anticipate that they will continue to affect
our future results:
•

Users' behaviors and advertising continue to shift online as the digital economy evolves.

The continuing shift from an offline to online world has contributed to the growth of our business since inception, contributing to revenue growth,
and we expect that this online shift will continue to benefit our business.
• Users are increasingly using diverse devices and modalities to access our products and services, and our advertising revenues are
increasingly coming from new formats.
Our users are accessing the Internet via diverse devices and modalities, such as smartphones, wearables and smart home devices, and want to
be able to be connected no matter where they are or what they are doing. We are focused on expanding our products and services to stay in front of
these trends in order to maintain and grow our business.
We are increasingly generating advertising revenues from different channels, including mobile, and newer advertising formats. The margins on
advertising revenues from these channels and newer products have generally been lower than those from traditional desktop search. Additionally, as
the market for a particular device type or modality matures, our revenues may be affected. For example, growth in the global smartphone market has
slowed due to various factors, including increased market saturation in developed countries, which can affect our mobile advertising revenue growth
rates.
We expect TAC paid to our distribution partners and Google Network partners to increase as our revenues grow and TAC as a percentage of our
advertising revenues ("TAC rate") to be affected by changes in device mix; geographic mix; partner mix; partner agreement terms; the percentage of
queries channeled through paid access points; product mix; the relative revenue growth rates of advertising revenues from different channels; and
revenue share terms.
We expect these trends to continue to affect our revenue growth rates and put pressure on our margins.
•

As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

As interactions between users and advertisers change, and as online user behavior evolves, we continue to expand and evolve our product
offerings to serve these changing needs. Over time, we expect our monetization trends to fluctuate. For example, we have seen an increase in
revenues from ads on YouTube and Google Play, which monetize at a lower rate than our traditional search ads.
• As users in developing economies increasingly come online, our revenues from international markets continue to increase and
movements in foreign exchange rates affect such revenues.
The shift to online, as well as the advent of the multi-device world, has brought opportunities outside of the U.S., including in emerging markets,
such as India. We continue to invest heavily and develop localized versions of our products and advertising programs relevant to our users in these
markets. This has led to a trend of increased revenues from emerging markets. We expect that our results will continue to be affected by our
performance in these markets, particularly as low-cost mobile devices become more available. This trend could affect our revenues as developing
markets initially monetize at a lower rate than more mature markets.

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Alphabet expects TAC paid to distribution and Google Network partners to increase as revenues grow.

alphabet2021:43bc44b5eb7aae220ded2ccce3dddb1484d5301aefcef006be95759fb14af6e6 · forecast

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We expect TAC paid to our distribution partners and Google Network partners to increase as our revenues grow

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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ITEM 7.

Alphabet Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Users' behaviors and advertising continue to shift online as the digital economy evolves.

As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet expects monetization trends to fluctuate over time.

alphabet2021:f47fb92e7dbb3d532ebe3f09c407d1f14437cbd424070da6971681a876bc8792 · forecast

Original source, physical page 29

Over time, we expect our monetization trends to fluctuate.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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ITEM 7.

Alphabet Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Users' behaviors and advertising continue to shift online as the digital economy evolves.

As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet expects results to continue being affected by performance in developing markets, particularly as low-cost mobile devices become more available.

alphabet2021:95796528843cd58430a33711209fb5477d8667b8e31c177869949b59628e676c · forecast

Original source, physical page 29

We expect that our results will continue to be affected by our
performance in these markets, particularly as low-cost mobile devices become more available.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

ITEM 7.

Alphabet Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Users' behaviors and advertising continue to shift online as the digital economy evolves.

As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.

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Alphabet expects non-advertising revenue growth to continue as it expands Google Cloud, Google Play, hardware, and YouTube subscription offerings.

alphabet2021:921fc80c9b30d437819134f593a9b7a5d81e615496b82f197f70e27fe3e197d0 · forecast

Original source, physical page 30

We expect this trend to continue as we focus on expanding our offerings through products and
services like Google Cloud, Google Play, hardware products, and YouTube subscriptions.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

International revenues represent a significant portion of our revenues and are subject to fluctuations in foreign currency exchange rates relative
to the U.S. dollar. While we have a foreign exchange risk management program designed to reduce our exposure to these fluctuations, this program
does not fully offset their effect on our revenues and earnings.
•

The portion of revenues that we derive from non-advertising revenues is increasing and may adversely affect margins.

Non-advertising revenues have grown over time. We expect this trend to continue as we focus on expanding our offerings through products and
services like Google Cloud, Google Play, hardware products, and YouTube subscriptions. We currently derive non-advertising revenues primarily from
sales of apps and in-app purchases, digital content products, and hardware; and licensing and service fees, including fees received for Google Cloud
services and subscription and other services. A number of Other Bets initiatives are in their initial development stages, and as such, revenues from
these businesses could be volatile. In addition, the margins on these revenues vary significantly and may be lower than the margins on our
advertising revenues.
•

As we continue to serve our users and expand our businesses, we will invest heavily in operating and capital expenditures.

We continue to make significant R&D investments in areas of strategic focus across Google Services, Google Cloud and Other Bets. We also
expect to continue to invest in land and buildings for data centers and offices, and information technology assets, which includes servers and network
equipment, to support the long-term growth of our business. In addition, acquisitions and strategic investments contribute to the breadth and depth of
our offerings, expand our expertise in engineering and other functional areas, and build strong partnerships around strategic initiatives. For example,
in January 2021 we closed the acquisition of Fitbit, Inc. for $2.1 billion, which is expected to help spur innovation in wearable devices.
• We face continuing changes in regulatory conditions, laws, and public policies, which could affect our business practices and
financial results.
Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of topics and related legal
matters have resulted in fines and caused us to change our business practices. As these global trends continue, our cost of doing business may
increase, and our ability to pursue certain business models or offer certain products or services may be limited. Examples include the antitrust
complaints filed by the U.S. Department of Justice and a number of state Attorneys General, the Digital Markets Act in Europe, and various legislative
proposals in the U.S. focused on large technology platforms.
•

Our employees are critical to our success and we expect to continue investing in them.

Our employees are among our best assets and are critical for our continued success. We expect to continue hiring talented employees around
the globe and to provide competitive compensation programs. For additional information see Culture and Workforce in Part I, Item 1 “Business.”
Seasonality and other
Our advertising revenues are affected by seasonal fluctuations in internet usage, advertising expenditures, and underlying business trends, such
as traditional retail seasonality. Additionally, our non-advertising revenues, including those generated from Google Cloud, Google Play, hardware, and
YouTube, may be affected by fluctuations driven by changes in pricing, digital content releases, fee structures, new product and service launches,
other market dynamics, as well as seasonality.
Revenues and Monetization Metrics
Google Services
Google Services revenues consist of revenues generated from advertising (“Google advertising”) as well as revenues from other sources
(“Google other revenues”).
Google Advertising
Google advertising revenues are comprised of the following:
•

Google Search & other, which includes revenues generated on Google search properties (including revenues from traffic generated by
search distribution partners who use Google.com as their default search in browsers, toolbars, etc.), and other Google owned and operated
properties like Gmail, Google Maps, and Google Play;

•

YouTube ads, which includes revenues generated on YouTube properties; and

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Alphabet expects to continue significant R&D and capital investment in infrastructure, offices, and information technology assets.

alphabet2021:d385b69cd386ef9c349495789d19a5a61b09c9ecfbd12370d0d754f26180b6b2 · forecast

Original source, physical page 30

We continue to make significant R&D investments in areas of strategic focus across Google Services, Google Cloud and Other Bets. We also
expect to continue to invest in land and buildings for data centers and offices, and information technology assets, which includes servers and network
equipment, to support the long-term growth of our business.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

International revenues represent a significant portion of our revenues and are subject to fluctuations in foreign currency exchange rates relative
to the U.S. dollar. While we have a foreign exchange risk management program designed to reduce our exposure to these fluctuations, this program
does not fully offset their effect on our revenues and earnings.
•

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•

YouTube ads, which includes revenues generated on YouTube properties; and

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Alphabet expects to continue hiring talented employees globally and providing competitive compensation programs.

alphabet2021:51dd0227ad2bd8b9cb95bfda5a842a6e24b2bb6c70149f5c5580ab8c1da31035 · forecast

Original source, physical page 30

We expect to continue hiring talented employees around
the globe and to provide competitive compensation programs.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

International revenues represent a significant portion of our revenues and are subject to fluctuations in foreign currency exchange rates relative
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•

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YouTube ads, which includes revenues generated on YouTube properties; and

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Alphabet reported that Google Search and other revenue increased $44.9 billion from 2020 to 2021.

alphabet2021:f46dad35f2b9b2e9a7623993f880ace81228e823d69e0669df6bfb642f7d2a50 · reported_fact

Original source, physical page 34

Google Search & other revenues increased $44.9 billion from 2020 to 2021.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

•

Capital expenditures, which primarily reflected investments in technical infrastructure, were $24.6 billion.

•

In January 2021, we updated the useful lives of certain of our servers and network equipment, resulting in a reduction in depreciation
expense of $2.6 billion recorded primarily in cost of revenues and R&D. See Note 1 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K for further information.

•

Our acquisition of Fitbit closed in early January 2021, and the related revenues are included in Google other. See Note 8 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for further information.

•

On February 1, 2022, the Company announced that the Board of Directors had approved and declared a 20-for-one stock split in the form of
a one-time special stock dividend on each share of the Company’s Class A, Class B, and Class C stock. See Note 11 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for additional information.

The Effect of COVID-19 on our Financial Results
We began to observe the effect of COVID-19 on our financial results in March 2020 when, despite an increase in users' search activity, our
advertising revenues declined compared to the prior year. This was due to a shift of user search activity to less commercial topics and reduced
spending by our advertisers. For the quarter ended June 30, 2020 our advertising revenues declined due to the continued effects of COVID-19 and
the related reductions in global economic activity, but we observed a gradual return in user search activity to more commercial topics. This was
followed by increased spending by our advertisers, which continued throughout the second half of 2020. Additionally, over the course of 2020, we
experienced variability in our margins as many of our expenses are less variable in nature and/or may not correlate to changes in revenues. Market
volatility contributed to fluctuations in the valuation of our equity investments. Further, our assessment of the credit deterioration of our customers due
to changes in the macroeconomic environment during the period was reflected in our allowance for credit losses for accounts receivable.
Throughout 2021 we remained focused on innovating and investing in the services we offer to consumers and businesses to support our longterm growth. The impact of COVID-19 on 2020 financial results affected year-over-year growth trends. The COVID-19 pandemic continues to evolve,
be unpredictable and affect our business and financial results. Our past results may not be indicative of our future performance, and historical trends
in our financial results may differ materially.
Financial Results
Revenues
The following table presents revenues by type (in millions):
Year Ended December 31,
2020

Google Search & other
YouTube ads
Google Network
Google advertising
Google other
Google Services total
Google Cloud
Other Bets
Hedging gains (losses)
Total revenues

2021

104,062
19,772
23,090
146,924
21,711
168,635
13,059
657
176
182,527

148,951
28,845
31,701
209,497
28,032
237,529
19,206
753
149
257,637

Google Services
Google advertising revenues
Google Search & other
Google Search & other revenues increased $44.9 billion from 2020 to 2021. The overall growth was driven by interrelated factors including
increases in search queries resulting from growth in user adoption and usage, primarily

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Alphabet reported that YouTube ads revenue increased $9.1 billion from 2020 to 2021.

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YouTube ads revenues increased $9.1 billion from 2020 to 2021.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

on mobile devices, growth in advertiser spending, and improvements we have made in ad formats and delivery. The adverse effect of COVID-19 on
2020 revenues also contributed to the year-over-year increase.
YouTube ads
YouTube ads revenues increased $9.1 billion from 2020 to 2021. Growth was driven by our direct response and brand advertising products.
Growth for our direct response advertising products was primarily driven by increased advertiser spending as well as improvements to ad formats and
delivery. Growth for our brand advertising products was primarily driven by increased spending by our advertisers and the adverse effect of COVID-19
on 2020 revenues.
Google Network
Google Network revenues increased $8.6 billion from 2020 to 2021. The growth was primarily driven by strength in AdMob, Google Ad Manager,
and AdSense. The adverse effect of COVID-19 on 2020 revenues also contributed to the year-over-year increase.
Monetization Metrics
Paid clicks and cost-per-click
The following table presents changes in paid clicks and cost-per-click (expressed as a percentage) from 2020 to 2021:
Year Ended December 31,
2021

Paid clicks change
Cost-per-click change

23 %
15 %

Paid clicks increased from 2020 to 2021 driven by a number of interrelated factors, including an increase in search queries resulting from growth
in user adoption and usage, primarily on mobile devices; an increase in clicks relating to ads on Google Play; growth in advertiser spending; and
improvements we have made in ad formats and delivery. The adverse effect of COVID-19 on 2020 paid clicks also contributed to the increase.
The increase in cost-per-click from 2020 to 2021 was driven by a number of interrelated factors including changes in device mix, geographic
mix, growth in advertiser spending, ongoing product changes, and property mix, as well as the adverse effect of COVID-19 in 2020.
Impressions and cost-per-impression
The following table presents changes in impressions and cost-per-impression (expressed as a percentage) from 2020 to 2021:
Year Ended December 31,
2021

Impressions change
Cost-per-impression change

2%
35 %

Impressions increased from 2020 to 2021 primarily driven by growth in AdMob, partially offset by a decline in impressions related to AdSense.
The increase in cost-per-impression was primarily driven by the adverse effect of COVID-19 in 2020 as well as the effect of interrelated factors
including ongoing product and policy changes and improvements we have made in ad formats and delivery, changes in device mix, geographic mix,
product mix, and property mix.
Google other revenues
Google other revenues increased $6.3 billion from 2020 to 2021. The growth was primarily driven by YouTube non-advertising and hardware,
followed by Google Play. Growth for YouTube non-advertising was primarily due to an increase in paid subscribers. Growth in hardware reflects the
inclusion of Fitbit revenues, as the acquisition closed in January 2021, and an increase in phone sales. Growth for Google Play was primarily driven
by sales of apps and in-app purchases.

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Alphabet reported that Google Network revenue increased $8.6 billion from 2020 to 2021.

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Paid clicks change
Cost-per-click change

23 %
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Impressions change
Cost-per-impression change

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Alphabet reported that paid clicks increased 23% and cost-per-click increased 15% from 2020 to 2021.

alphabet2021:96d5ea484ef102b5bbc7eadca7a990876064917ed202eeb470c78a993307fcd9 · reported_fact

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Cost-per-click change

23 %
15 %

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet reported that impressions increased 2% and cost-per-impression increased 35% from 2020 to 2021.

alphabet2021:393014fc704d5f4d426464945756b06d557ee58cc71b452a54d5ccefa11d1e3e · reported_fact

Original source, physical page 35

Impressions change
Cost-per-impression change

2%
35 %

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

Paid clicks change
Cost-per-click change

23 %
15 %

Impressions change
Cost-per-impression change

2%
35 %

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Alphabet reported that Google Cloud revenue increased $6.1 billion from 2020 to 2021, primarily driven by Google Cloud Platform and Google Workspace offerings.

alphabet2021:9f980c3bba05e6f7146a47b0d59d7c5149f1cfd97a96a03a76fae034915407df · reported_fact

Original source, physical page 36

Google Cloud revenues increased $6.1 billion from 2020 to 2021. The growth was primarily driven by GCP followed by Google Workspace
offerings.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

Google Cloud
Google Cloud revenues increased $6.1 billion from 2020 to 2021. The growth was primarily driven by GCP followed by Google Workspace
offerings. Google Cloud's infrastructure and platform services were the largest drivers of growth in GCP.
Revenues by Geography
The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of our customers:
Year Ended December 31,
2020

United States
EMEA
APAC
Other Americas

2021

47 %
30 %
18 %
5%

46 %
31 %
18 %
5%

For further details on revenues by geography, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.
Use of Constant Currency Revenues and Constant Currency Revenue Percentage Change
The effect of currency exchange rates on our business is an important factor in understanding period to period comparisons. We use non-GAAP
constant currency revenues and non-GAAP percentage change in constant currency revenues for financial and operational decision-making and as a
means to evaluate period-to-period comparisons. We believe the presentation of results on a constant currency basis in addition to U.S. Generally
Accepted Accounting Principles (GAAP) results helps improve the ability to understand our performance because it excludes the effects of foreign
currency volatility that are not indicative of our core operating results.
Constant currency information compares results between periods as if exchange rates had remained constant period over period. We define
constant currency revenues as total revenues excluding the effect of foreign exchange rate movements and hedging activities, and use it to
determine the constant currency revenue percentage change on a year-on-year basis. Constant currency revenues are calculated by translating
current period revenues using prior year comparable period exchange rates, as well as excluding any hedging effects realized in the current period.
Constant currency revenue percentage change is calculated by determining the change in current period revenues over prior year comparable
period revenues where current period foreign currency revenues are translated using prior year comparable period exchange rates and hedging
effects are excluded from revenues of both periods.
These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP. Results on a constant
currency basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not a measure of
performance presented in accordance with GAAP.

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Alphabet reported that the TAC rate decreased from 22.3% to 21.8% from 2020 to 2021.

alphabet2021:5102ff161775a58a80ce72a2b6ae68fe775de7adbd7f11862c1fd4fded160ceb · reported_fact

Original source, physical page 37

The TAC rate decreased from 22.3% to 21.8% from 2020 to 2021 primarily due to a revenue mix shift
from Google Network properties to Google Search & other properties.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

The following table presents the foreign exchange effect on international revenues and total revenues (in millions, except percentages):
Year Ended December 31,
2020

EMEA revenues
EMEA constant currency revenues

2021

55,370

% Change from Prior Year

79,107
76,321

43 %
38 %

APAC revenues
APAC constant currency revenues

32,550

46,123
45,666

42 %
40 %

Other Americas revenues
Other Americas constant currency revenues

9,417

14,404
14,317

53 %
52 %

United States revenues

85,014

117,854

39 %

149
257,637

41 %

257,488
(3,330)
254,158

39 %

176
182,527

182,351

Hedging gains (losses)
Total revenues
Revenues, excluding hedging effect
Exchange rate effect

Total constant currency revenues

EMEA revenue growth from 2020 to 2021 was favorably affected by foreign currency exchange rates, primarily due to the U.S. dollar weakening
relative to the Euro and British pound.
APAC revenue growth from 2020 to 2021 was favorably affected by foreign currency exchange rates, primarily due to the U.S. dollar weakening
relative to the Australian dollar, partially offset by the U.S. dollar strengthening relative to the Japanese yen.
Other Americas growth change from 2020 to 2021 was favorably affected by changes in foreign currency exchange rates, primarily due to the
U.S. dollar weakening relative to the Canadian dollar, partially offset by the U.S. dollar strengthening relative to the Argentine peso and the Brazilian
real.
Costs and Expenses
Cost of Revenues
The following tables present cost of revenues, including TAC (in millions, except percentages):
Year Ended December 31,
2020

TAC
Other cost of revenues
Total cost of revenues

$
$

Total cost of revenues as a percentage of revenues

2021

32,778
51,954
84,732
46.4 %

$
$

45,566
65,373
110,939
43.1 %

Cost of revenues increased $26.2 billion from 2020 to 2021. The increase was due to an increase in other cost of revenues and TAC of $13.4
billion and $12.8 billion, respectively.
The increase in TAC from 2020 to 2021 was due to an increase in TAC paid to distribution partners and to Google Network partners, primarily
driven by growth in revenues subject to TAC. The TAC rate decreased from 22.3% to 21.8% from 2020 to 2021 primarily due to a revenue mix shift
from Google Network properties to Google Search & other properties. The TAC rate on Google Search & other properties revenues and the TAC rate
on Google Network revenues were both substantially consistent from 2020 to 2021.
The increase in other cost of revenues from 2020 to 2021 was driven by increases in content acquisition costs primarily for YouTube, data center
and other operations costs, and hardware costs. The increase in data center and

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Alphabet reported that R&D expenses increased $4.0 billion from 2020 to 2021, primarily due to compensation expenses and professional service fees.

alphabet2021:e8e47a81458224e185f4a797a39c9e6d239e953b31639069e5e2f163f0c0e6d1 · reported_fact

Original source, physical page 38

R&D expenses increased $4.0 billion from 2020 to 2021. The increase was primarily due to an increase in compensation expenses of $3.5
billion, largely resulting from an 11% increase in headcount, and an increase in professional service fees of $516 million.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

other operations costs was partially offset by a reduction in depreciation expense due to the change in the estimated useful life of our servers and
certain network equipment beginning in the first quarter of 2021.
Research and Development
The following table presents R&D expenses (in millions, except percentages):
Year Ended December 31,
2020

Research and development expenses
Research and development expenses as a percentage of revenues

$

2021

27,573
$
15.1 %

31,562
12.3 %

R&D expenses increased $4.0 billion from 2020 to 2021. The increase was primarily due to an increase in compensation expenses of $3.5
billion, largely resulting from an 11% increase in headcount, and an increase in professional service fees of $516 million. This increase was partially
offset by a reduction in depreciation expense of $450 million including the effect of our change in the estimated useful life of our servers and certain
network equipment.
Sales and Marketing
The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
2020

Sales and marketing expenses
Sales and marketing expenses as a percentage of revenues

$

2021

17,946
$
9.8 %

22,912
8.9 %

Sales and marketing expenses increased $5.0 billion from 2020 to 2021, primarily driven by an increase in advertising and promotional activities
of $2.5 billion and an increase in compensation expenses of $2.2 billion. The increase in advertising and promotional activities was driven by both
increased spending in the current period and a reduction in spending in 2020 due to COVID-19. The increase in compensation expenses was largely
due to a 14% increase in headcount.
General and Administrative
The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
2020

General and administrative expenses
General and administrative expenses as a percentage of revenues

$

2021

11,052
$
6.1 %

13,510
5.2 %

General and administrative expenses increased $2.5 billion from 2020 to 2021. The increase was primarily driven by a $1.7 billion increase in
charges relating to legal matters and a $664 million increase in compensation expenses, largely resulting from a 14% increase in headcount. These
increases were partially offset by a reduction in expense of $808 million related to a decline in allowance for credit losses for accounts receivable, as
2020 reflected a higher allowance related to the economic effect of COVID-19.

37

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Alphabet reported that sales and marketing expenses increased $5.0 billion from 2020 to 2021, primarily due to advertising and promotional activity and compensation expenses.

alphabet2021:1dadd573fb5af237e7bffc809d6c9ff84808ac21538dc36c29b6a3cde910756b · reported_fact

Original source, physical page 38

Sales and marketing expenses increased $5.0 billion from 2020 to 2021, primarily driven by an increase in advertising and promotional activities
of $2.5 billion and an increase in compensation expenses of $2.2 billion.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

other operations costs was partially offset by a reduction in depreciation expense due to the change in the estimated useful life of our servers and
certain network equipment beginning in the first quarter of 2021.
Research and Development
The following table presents R&D expenses (in millions, except percentages):
Year Ended December 31,
2020

Research and development expenses
Research and development expenses as a percentage of revenues

$

2021

27,573
$
15.1 %

31,562
12.3 %

R&D expenses increased $4.0 billion from 2020 to 2021. The increase was primarily due to an increase in compensation expenses of $3.5
billion, largely resulting from an 11% increase in headcount, and an increase in professional service fees of $516 million. This increase was partially
offset by a reduction in depreciation expense of $450 million including the effect of our change in the estimated useful life of our servers and certain
network equipment.
Sales and Marketing
The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
2020

Sales and marketing expenses
Sales and marketing expenses as a percentage of revenues

$

2021

17,946
$
9.8 %

22,912
8.9 %

Sales and marketing expenses increased $5.0 billion from 2020 to 2021, primarily driven by an increase in advertising and promotional activities
of $2.5 billion and an increase in compensation expenses of $2.2 billion. The increase in advertising and promotional activities was driven by both
increased spending in the current period and a reduction in spending in 2020 due to COVID-19. The increase in compensation expenses was largely
due to a 14% increase in headcount.
General and Administrative
The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
2020

General and administrative expenses
General and administrative expenses as a percentage of revenues

$

2021

11,052
$
6.1 %

13,510
5.2 %

General and administrative expenses increased $2.5 billion from 2020 to 2021. The increase was primarily driven by a $1.7 billion increase in
charges relating to legal matters and a $664 million increase in compensation expenses, largely resulting from a 14% increase in headcount. These
increases were partially offset by a reduction in expense of $808 million related to a decline in allowance for credit losses for accounts receivable, as
2020 reflected a higher allowance related to the economic effect of COVID-19.

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Alphabet reported that general and administrative expenses increased $2.5 billion from 2020 to 2021, primarily due to legal charges and compensation expenses.

alphabet2021:0f44dfc30cf70db30b06cae6574953b6d52e01da5e3a129cdce5b0f78a11f243 · reported_fact

Original source, physical page 38

General and administrative expenses increased $2.5 billion from 2020 to 2021. The increase was primarily driven by a $1.7 billion increase in
charges relating to legal matters and a $664 million increase in compensation expenses, largely resulting from a 14% increase in headcount.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

other operations costs was partially offset by a reduction in depreciation expense due to the change in the estimated useful life of our servers and
certain network equipment beginning in the first quarter of 2021.
Research and Development
The following table presents R&D expenses (in millions, except percentages):
Year Ended December 31,
2020

Research and development expenses
Research and development expenses as a percentage of revenues

$

2021

27,573
$
15.1 %

31,562
12.3 %

R&D expenses increased $4.0 billion from 2020 to 2021. The increase was primarily due to an increase in compensation expenses of $3.5
billion, largely resulting from an 11% increase in headcount, and an increase in professional service fees of $516 million. This increase was partially
offset by a reduction in depreciation expense of $450 million including the effect of our change in the estimated useful life of our servers and certain
network equipment.
Sales and Marketing
The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
2020

Sales and marketing expenses
Sales and marketing expenses as a percentage of revenues

$

2021

17,946
$
9.8 %

22,912
8.9 %

Sales and marketing expenses increased $5.0 billion from 2020 to 2021, primarily driven by an increase in advertising and promotional activities
of $2.5 billion and an increase in compensation expenses of $2.2 billion. The increase in advertising and promotional activities was driven by both
increased spending in the current period and a reduction in spending in 2020 due to COVID-19. The increase in compensation expenses was largely
due to a 14% increase in headcount.
General and Administrative
The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
2020

General and administrative expenses
General and administrative expenses as a percentage of revenues

$

2021

11,052
$
6.1 %

13,510
5.2 %

General and administrative expenses increased $2.5 billion from 2020 to 2021. The increase was primarily driven by a $1.7 billion increase in
charges relating to legal matters and a $664 million increase in compensation expenses, largely resulting from a 14% increase in headcount. These
increases were partially offset by a reduction in expense of $808 million related to a decline in allowance for credit losses for accounts receivable, as
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Alphabet identifies regulatory scrutiny, investigations, enforcement actions, and changing laws as potential sources of fines, operational changes, and harm to business and results.

alphabet2021:367c04d8944d71ccb83305c5ed7073b1ac35a038dd6c640cfeae07ab2d20b35e · challenge

Original source, physical page 17

Various laws, regulations, investigations, enforcement lawsuits, and regulatory actions have in the past, and may in the future, result in substantial
fines and penalties, injunctive relief, ongoing auditing and monitoring obligations, changes to our products and services, alterations to our business
models and operations, and collateral litigation, all of which could harm our business, reputation, financial condition, and operating results.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Table of Contents

Alphabet Inc.

invalid traffic, we have been unable and may continue to be unable to adequately detect and prevent all such abuses or promote uniformly highquality content.
Many websites violate or attempt to violate our guidelines, including by seeking to inappropriately rank higher in search results than our search
engine's assessment of their relevance and utility would rank them. Such efforts have affected, and may continue to affect, the quality of content on
our platforms and lead them to display false, misleading, or undesirable content. Although English-language web spam in our search results has been
reduced, and web spam in most other languages is limited, we expect web spammers will continue to seek inappropriate ways to improve their
rankings. We continuously combat web spam in our search results, including through indexing technology that makes it harder for spam-like, less
useful web content to rank highly. We also continue to invest in and deploy proprietary technology to detect and prevent web spam on our platforms.
We also face other challenges from low-quality and irrelevant content websites, including content farms, which are websites that generate large
quantities of low-quality content to help them improve their search rankings. We are continually launching algorithmic changes designed to detect and
prevent abuse from low-quality websites. We also face other challenges on our platforms, including violations of our content guidelines involving
incidents such as attempted election interference, activities that threaten the safety and/or well-being of our users on- or off-line, and the spreading of
misinformation or disinformation.
If we fail to either detect and prevent an increase in problematic content or effectively promote high-quality content, it could hurt our reputation
for delivering relevant information or reduce use of our platforms, harming our financial condition or operating results. It may also subject us to
litigation and regulatory action, which could result in monetary penalties and damages and divert management’s time and attention.
Our business depends on continued and unimpeded access to the Internet by us and our users. Internet access providers may be
able to restrict, block, degrade, or charge for access to certain of our products and services, which could lead to additional expenses and
the loss of users and advertisers.
Our products and services depend on the ability of our users to access the Internet, and certain of our products require significant bandwidth to
work effectively. Currently, this access is provided by companies that have significant market power in the broadband and internet access
marketplace, including incumbent telephone companies, cable companies, mobile communications companies, and government-owned service
providers. Some of these providers have taken, or have stated that they may take measures that could degrade, disrupt, or increase the cost of user
access to certain of our products by restricting or prohibiting the use of their infrastructure to support or facilitate our offerings, by charging increased
fees to us or our users to provide our offerings, or by providing our competitors preferential access. Some jurisdictions have adopted regulations
prohibiting certain forms of discrimination by internet access providers; however, substantial uncertainty exists in the U.S. and elsewhere regarding
such protections. For example, in 2018 the U.S. Federal Communications Commission repealed net neutrality rules, which could permit internet
access providers to restrict, block, degrade, or charge for access to certain of our products and services. In addition, in some jurisdictions, our
products and services have been subject to government-initiated restrictions or blockages. These could harm existing key relationships, including with
our users, customers, advertisers, and/or content providers, and impair our ability to attract new ones; damage our reputation; and increase costs,
thereby negatively affecting our business.
Risks Related to Laws, Regulations, and Policies
We face increased regulatory scrutiny as well as changes in regulatory conditions, laws, and policies governing a wide range of
topics that may negatively affect our business.
We and other companies in the technology industry face increased regulatory scrutiny, enforcement action, and other proceedings. For instance,
the U.S. Department of Justice, joined by a number of state Attorneys General, filed an antitrust complaint against Google on October 20, 2020,
alleging that Google violated U.S. antitrust laws relating to Search and Search advertising. Similarly, on December 16, 2020, a number of state
Attorneys General filed an antitrust complaint against Google in the U.S. District Court for the Eastern District of Texas, alleging that Google violated
U.S. antitrust laws as well as state deceptive trade laws relating to its advertising technology. Various other regulatory agencies in the U.S. and
around the world, including competition enforcers, consumer protection agencies, data protection authorities, grand juries, inter-agency consultative
groups, and a range of other governmental bodies have and continue to review and in some cases challenge our products and services and their
compliance with laws and regulations around the world. We continue to cooperate with these investigations and defend litigation where appropriate.
Various laws, regulations, investigations, enforcement lawsuits, and regulatory actions have in the past, and may in the future, result in substantial
fines and penalties, injunctive relief, ongoing auditing and monitoring obligations, changes to our products and services, alterations to our business
models and operations, and collateral litigation, all of which could harm our business, reputation, financial condition, and operating results.

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Alphabet states that its sustainability goals are complex and ambitious and cannot be guaranteed.

alphabet2021:6e1f94beba65b20bd093b792ea74488bb808bd7ec747cbb7351d03fa27fdecf8 · challenge

Original source, physical page 18

The implementation of these goals and initiatives may require considerable investments, and our goals, with all of their contingencies,
dependencies, and in certain cases, reliance on third-party verification and/or performance, are complex and ambitious, and we cannot guarantee
that we will achieve them.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

Changes in international and local social, political, economic, tax, and regulatory conditions or in laws and policies have in the past, and may in
the future, increase our cost of doing business and limit our ability to pursue certain business models, offer products or services in certain
jurisdictions, or cause us to change our business practices. We have in the past had to alter or stop offering certain products and services as a result
of laws or regulations that made them unfeasible, and new laws or regulations could result in our having to terminate, alter, or withdraw products and
services in the future. Additional costs of doing business, new limitations, or changes to our business model or practices could harm our business,
reputation, financial condition, and operating results.
We are subject to regulations, laws, and policies that govern a wide range of topics, including those related to matters beyond our core products
and services. For instance, new regulations, laws, policies, and international accords relating to environmental and social matters, including
sustainability, climate change, human capital, and diversity, are being developed and formalized in Europe, the U.S., and elsewhere, which may entail
specific, target-driven frameworks and/or disclosure requirements. We have implemented robust environmental and social programs, adopted
reporting frameworks and principles, and announced a number of goals and initiatives, including those related to environmental sustainability and
diversity. The implementation of these goals and initiatives may require considerable investments, and our goals, with all of their contingencies,
dependencies, and in certain cases, reliance on third-party verification and/or performance, are complex and ambitious, and we cannot guarantee
that we will achieve them.
Additionally, there can be no assurance that our current programs, reporting frameworks, and principles will be in compliance with any new
environmental and social laws and regulations that may be promulgated in the U.S. and elsewhere, and the costs of changing any of our current
practices to comply with any new legal and regulatory requirements in the U.S. and elsewhere may be substantial. Furthermore, industry and market
practices may further develop to become even more robust than what is required under any new laws and regulations, and we may have to expend
significant efforts and resources to keep up with market trends and stay competitive among our peers.
A variety of new and existing laws and/or interpretations could harm our business.
We are subject to numerous U.S. and foreign laws and regulations covering a wide variety of subject matters. New laws and regulations, or new
interpretations or applications of existing laws and regulations in a manner inconsistent with our practices, have made, and may continue to make,
our products and services less useful, limit our ability to pursue certain business models or offer certain products and services in certain jurisdictions,
require us to incur substantial costs, expose us to civil or criminal liability, or cause us to change our business practices. These laws and regulations
are evolving and involve matters central to our business, including, among others:
•

Laws and regulations around the world focused on large technology platforms, including the Digital Markets Act in the European Union and
proposed antitrust legislation on self-preferencing and mergers and acquisitions in the U.S., which may limit certain business practices, and in
some cases, create the risk of significant penalties.

•

Privacy laws, such as the GDPR, CCPA, CPRA, Virginia CDPA, and ColoPA (as defined and discussed further below).

•

Data protection laws passed by many states within the U.S. and by certain countries regarding notification to data subjects and/or regulators
when there is a security breach of personal data.

•

Consumer protection laws, including EU’s New Deal for Consumers, which could result in monetary penalties and create a range of new
compliance obligations.

•

New laws further restricting the collection, processing and/or sharing of advertising-related data. Copyright or similar laws around the world,
including the EU Directive on Copyright in the Digital Single Market (EUCD) and EU member state transpositions. These and similar laws that
have been adopted or proposed introduce new licensing regimes that could affect our ability to operate. The EUCD and similar laws could
also increase the liability of some content-sharing services with respect to content uploaded by their users. Some of these laws, as well as
follow-on administrative or judicial actions, have also created or may create a new property right in news publications that limits the ability of
some online services to link to, interact with, or present such content. They may also require individual or collective compensation
negotiations with news agencies and publishers for the use of such content, which may result in payment obligations that significantly exceed
the value that such content provides to Google and its users, potentially harming our services, commercial operations, and business results.

•

Data localization laws, which generally mandate that certain types of data collected in a particular country be stored and/or processed within
that country.

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Alphabet states that COVID-19 remained unpredictable and continued to affect its business and financial results, and that past results may not indicate future performance.

alphabet2021:c7fba5fb27721469d3cfd5352a2357027a5a11a9d6f269e80a6717cdb32574f9 · challenge

Original source, physical page 34

The COVID-19 pandemic continues to evolve,
be unpredictable and affect our business and financial results. Our past results may not be indicative of our future performance, and historical trends
in our financial results may differ materially.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

•

Capital expenditures, which primarily reflected investments in technical infrastructure, were $24.6 billion.

•

Google Search & other
YouTube ads
Google Network
Google advertising
Google other
Google Services total
Google Cloud
Other Bets
Hedging gains (losses)
Total revenues

2021

104,062
19,772
23,090
146,924
21,711
168,635
13,059
657
176
182,527

148,951
28,845
31,701
209,497
28,032
237,529
19,206
753
149
257,637

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Google Services operating income increased $37.2 billion from 2020 to 2021, driven by revenue growth partly offset by higher specified costs and legal charges.

alphabet2021:a0be88ccaa2f12d05321fc4e878a9d17c21595b9d206c391bc0ed867a5313d3b · reported_fact

Original source, physical page 39

Google services operating income increased $37.2 billion from 2020 to 2021. The increase was due to growth in revenues partially offset by
increases in TAC, content acquisition costs, compensation expenses, advertising and promotional expenses, and charges related to certain legal
matters.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

Segment Profitability
The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2020

Operating income (loss):
Google Services
Google Cloud
Other Bets
Corporate costs, unallocated(1)
Total income from operations
(1)

2021

54,606 $
(5,607)
(4,476)
(3,299)
41,224 $

91,855
(3,099)
(5,281)
(4,761)
78,714

Google Services
Google services operating income increased $37.2 billion from 2020 to 2021. The increase was due to growth in revenues partially offset by
increases in TAC, content acquisition costs, compensation expenses, advertising and promotional expenses, and charges related to certain legal
matters. The increase in expenses was partially offset by a reduction in costs driven by the change in the estimated useful life of our servers and
certain network equipment. The effect of COVID-19 on 2020 results affected the year-over-year increase in operating income.
Google Cloud
Google Cloud operating loss decreased $2.5 billion from 2020 to 2021. The decrease in operating loss was primarily driven by growth in
revenues, partially offset by an increase in expenses, primarily driven by compensation expenses. The increase in expenses was partially offset by a
reduction in costs driven by the change in the estimated useful life of our servers and certain network equipment.
Other Bets
Other Bets operating loss increased $805 million from 2020 to 2021. The increase in operating loss was primarily driven by increases in
compensation expenses, including an increase in valuation-based compensation charges during the second quarter of 2021.
Other Income (Expense), Net
The following table presents other income (expense), net, (in millions):
Year Ended December 31,
2020

Other income (expense), net

2021

6,858

12,020

Other income (expense), net, increased $5.2 billion from 2020 to 2021. The increase was primarily driven by increases in net unrealized gains
recognized for our marketable and non-marketable equity securities of $6.9 billion, partially offset by an increase in accrued performance fees related
to certain investments of $1.3 billion.
See Note 3 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for further information.
Provision for Income Taxes
The following table presents provision for income taxes (in millions, except for effective tax rate):
Year Ended December 31,
2020

Provision for income taxes
Effective tax rate

2021

7,813
$
16.2 %

14,701
16.2 %

The provision for income taxes increased from 2020 to 2021, primarily due to an increase in pre-tax earnings, including in countries that have
higher statutory rates, partially offset by an increase in the stock-based compensation related tax benefit, and the U.S. federal Foreign-Derived
Intangible Income tax deduction benefit. Our effective tax rate

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Google Cloud operating loss decreased $2.5 billion from 2020 to 2021, primarily due to revenue growth partly offset by higher compensation expenses.

alphabet2021:22c442a6050453734e88267f7a03426f8b8636635d416b8501ae2a7327c100cd · reported_fact

Original source, physical page 39

Google Cloud operating loss decreased $2.5 billion from 2020 to 2021. The decrease in operating loss was primarily driven by growth in
revenues, partially offset by an increase in expenses, primarily driven by compensation expenses.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

Segment Profitability
The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2020

Operating income (loss):
Google Services
Google Cloud
Other Bets
Corporate costs, unallocated(1)
Total income from operations
(1)

2021

54,606 $
(5,607)
(4,476)
(3,299)
41,224 $

91,855
(3,099)
(5,281)
(4,761)
78,714

Other income (expense), net

2021

6,858

12,020

Provision for income taxes
Effective tax rate

2021

7,813
$
16.2 %

14,701
16.2 %

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Other Bets operating loss increased $805 million from 2020 to 2021, primarily due to higher compensation expenses, including valuation-based compensation charges in the second quarter of 2021.

alphabet2021:5a7a5bea681983e3a27b24b08938bf01fa5edac6c0773877905ea78ab626bbac · reported_fact

Original source, physical page 39

Other Bets operating loss increased $805 million from 2020 to 2021. The increase in operating loss was primarily driven by increases in
compensation expenses, including an increase in valuation-based compensation charges during the second quarter of 2021.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

Segment Profitability
The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2020

Operating income (loss):
Google Services
Google Cloud
Other Bets
Corporate costs, unallocated(1)
Total income from operations
(1)

2021

54,606 $
(5,607)
(4,476)
(3,299)
41,224 $

91,855
(3,099)
(5,281)
(4,761)
78,714

Other income (expense), net

2021

6,858

12,020

Provision for income taxes
Effective tax rate

2021

7,813
$
16.2 %

14,701
16.2 %

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Other income, net increased $5.2 billion from 2020 to 2021, primarily due to higher net unrealized gains on equity securities, partly offset by higher accrued performance fees.

alphabet2021:e7e34952f67347abf0b4a51964a97d4ef10474b871da6a7c0934bb064baf5e1e · reported_fact

Original source, physical page 39

Other income (expense), net, increased $5.2 billion from 2020 to 2021. The increase was primarily driven by increases in net unrealized gains
recognized for our marketable and non-marketable equity securities of $6.9 billion, partially offset by an increase in accrued performance fees related
to certain investments of $1.3 billion.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

Segment Profitability
The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2020

Operating income (loss):
Google Services
Google Cloud
Other Bets
Corporate costs, unallocated(1)
Total income from operations
(1)

2021

54,606 $
(5,607)
(4,476)
(3,299)
41,224 $

91,855
(3,099)
(5,281)
(4,761)
78,714

Other income (expense), net

2021

6,858

12,020

Provision for income taxes
Effective tax rate

2021

7,813
$
16.2 %

14,701
16.2 %

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The effective tax rate was 16.2% in both 2020 and 2021, while provision for income taxes increased from $7,813 million to $14,701 million.

alphabet2021:a7285190a4c21de1822809c4c6c32ac3e4aa8458d1967db1a1fe9357333c1bf0 · reported_fact

Original source, physical page 39

The following table presents provision for income taxes (in millions, except for effective tax rate):
Year Ended December 31,
2020

Provision for income taxes
Effective tax rate

$

2021

7,813
$
16.2 %

14,701
16.2 %

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

Alphabet Inc.

Segment Profitability
The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2020

Operating income (loss):
Google Services
Google Cloud
Other Bets
Corporate costs, unallocated(1)
Total income from operations
(1)

2021

54,606 $
(5,607)
(4,476)
(3,299)
41,224 $

91,855
(3,099)
(5,281)
(4,761)
78,714

Other income (expense), net

2021

6,858

12,020

Provision for income taxes
Effective tax rate

2021

7,813
$
16.2 %

14,701
16.2 %

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Management stated that the primary use of capital continues to be investment for long-term business growth.

alphabet2021:d2c4a40b793a6b2ac20a77671eb231a9f0b7266a7e62cf5c6c20413cca37008b · aspiration

Original source, physical page 40

The primary use of capital continues to be to invest for the long-term growth of the business.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Table of Contents

Alphabet Inc.

was substantially consistent from 2020 to 2021. See Note 14 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K for further information.
Financial Condition
Cash, Cash Equivalents, and Marketable Securities
As of December 31, 2021, we had $139.6 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and
marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgagebacked and asset-backed securities, and marketable equity securities.
Sources, Uses of Cash and Related Trends
Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow that we generate from
operations. The primary use of capital continues to be to invest for the long-term growth of the business. We regularly evaluate our cash and capital
structure, including the size, pace and form of capital return to stockholders.
The following table presents our cash flows (in millions):
Year Ended December 31,
2020

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities

$
$
$

2021

65,124 $
(32,773) $
(24,408) $

91,652
(35,523)
(61,362)

Cash Provided by Operating Activities
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other properties, Google Network
properties, and YouTube ads. Additionally, we generate cash through sales of apps and in-app purchases, digital content products, and hardware;
and licensing and service fees including fees received for Google Cloud offerings and subscription-based products.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners, for compensation and related
costs, and for content acquisition costs. In addition, uses of cash from operating activities include hardware inventory costs, income taxes, and other
general corporate expenditures.
Net cash provided by operating activities increased from 2020 to 2021 primarily due to the net effect of an increase in cash received from
revenues and cash paid for cost of revenues and operating expenses, and changes in operating assets and liabilities.
Cash Used in Investing Activities
Cash provided by investing activities consists primarily of maturities and sales of our investments in marketable and non-marketable securities.
Cash used in investing activities consists primarily of purchases of marketable and non-marketable securities, purchases of property and equipment,
and payments for acquisitions.
Net cash used in investing activities increased from 2020 to 2021 primarily due to a decrease in maturities and sales of marketable securities, an
increase in purchases of property and equipment, offset by a decrease in purchases of non-marketable securities.
Cash Used in Financing Activities
Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of interest in consolidated
entities. Cash used in financing activities consists primarily of repurchases of common and capital stock, net payments related to stock-based award
activities, and repayments of debt.
Net cash used in financing activities increased from 2020 to 2021 primarily due to repayment of debt and an increase in cash payments for
repurchases of common and capital stock.
Liquidity and Material Cash Requirements
We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and financing activities to continue to
be sufficient to fund our operating activities and cash commitments for investing and financing activities for at least the next 12 months and thereafter
for the foreseeable future.

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Alphabet reported $139.6 billion in cash, cash equivalents, and short-term marketable securities as of December 31, 2021.

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As of December 31, 2021, we had $139.6 billion in cash, cash equivalents, and short-term marketable securities.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities

$
$
$

2021

65,124 $
(32,773) $
(24,408) $

91,652
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Net cash provided by operating activities increased from 2020 to 2021, while net cash used in investing and financing activities was $35,523 million and $61,362 million in 2021.

alphabet2021:32d55514da83749e3570b93a6504d3f1b74bbecefebb61e727b9f8c4313ce50c · reported_fact

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The following table presents our cash flows (in millions):
Year Ended December 31,
2020

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities

$
$
$

2021

65,124 $
(32,773) $
(24,408) $

91,652
(35,523)
(61,362)

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Alphabet Inc.

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Net cash used in investing activities
Net cash used in financing activities

$
$
$

2021

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(24,408) $

91,652
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Management expected existing liquidity and cash flows to be sufficient to fund operating activities and cash commitments for at least the next 12 months and thereafter for the foreseeable future.

alphabet2021:5871c171814e56fc8a3ba05b6fb1332c6a2561b30f154c8219509d38972f58a1 · forecast

Original source, physical page 40

We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and financing activities to continue to
be sufficient to fund our operating activities and cash commitments for investing and financing activities for at least the next 12 months and thereafter
for the foreseeable future.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

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Net cash used in investing activities
Net cash used in financing activities

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2021

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Alphabet spent $22.3 billion on capital expenditures in 2020 and $24.6 billion in 2021.

alphabet2021:67ada194bfd164f7c93a1048eafb3f29ec5bb59db88686b5696b240101c6da1c · reported_fact

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During the years ended December 31, 2020 and 2021, we spent $22.3 billion and $24.6 billion on capital expenditures, respectively.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

Capital Expenditures and Leases
We make investments in land and buildings for data centers and offices and information technology assets through purchases of property and
equipment and lease arrangements to provide capacity for the growth of our services and products.
Capital Expenditures
Our capital investments in property and equipment consist primarily of the following major categories:
•

technical infrastructure, which consists of our investments in servers and network equipment for computing, storage and networking
requirements for ongoing business activities, including machine learning (collectively referred to as our information technology assets) and
data center land and building construction; and

•

office facilities, ground up development projects and related building improvements.

Construction in progress consists primarily of technical infrastructure and office facilities which have not yet been placed in service for our
intended use. The time frame from date of purchase to placement in service of these assets may extend from months to years. For example, our data
center construction projects are generally multi-year projects with multiple phases, where we acquire qualified land and buildings, construct buildings,
and secure and install information technology assets.
During the years ended December 31, 2020 and 2021, we spent $22.3 billion and $24.6 billion on capital expenditures, respectively.
Depreciation of our property and equipment commences when the deployment of such assets are completed and are ready for our intended use.
Land is not depreciated. For the years ended December 31, 2020 and 2021, our depreciation and impairment expenses on property and equipment
were $12.9 billion and $11.6 billion, respectively.
Leases
For the years ended December 31, 2020 and 2021, we recognized total operating lease assets of $2.8 billion and $3.0 billion, respectively. As of
December 31, 2021, the amount of total future lease payments under operating leases, which had a weighted average remaining lease term of 8
years, was $15.5 billion, of which $2.5 billion is short-term. As of December 31, 2021, we have entered into leases that have not yet commenced with
future short-term and long-term lease payments of $606 million and $5.2 billion, excluding purchase options, that are not yet recorded on our
Consolidated Balance Sheets. These leases will commence between 2022 and 2026 with non-cancelable lease terms of 1 to 25 years.
For the years ended December 31, 2020 and 2021, our operating lease expenses (including variable lease costs) were $2.9 billion and $3.4
billion, respectively. Finance lease costs were not material for the years ended December 31, 2020 and 2021. See Note 4 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for further information on leases.
Financing
We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper, which increased from $5.0 billion
in September 2021. Net proceeds from this program are used for general corporate purposes. As of December 31, 2021, we had no commercial
paper outstanding.
As of December 31, 2021, we had $10.0 billion of revolving credit facilities with no amounts outstanding. In April 2021, we terminated the
existing revolving credit facilities, which were scheduled to expire in July 2023, and entered into two new revolving credit facilities in the amounts of
$4.0 billion and $6.0 billion, which will expire in April 2022 and April 2026, respectively. The interest rates for the new credit facilities are determined
based on a formula using certain market rates, as well as our progress toward the achievement of certain sustainability goals. No amounts have been
borrowed under the new credit facilities.
As of December 31, 2021, we have senior unsecured notes outstanding with a total carrying value of $12.8 billion with short-term and long-term
future interest payments of $231 million and $4.0 billion, respectively. See Note 6 of the Notes to Consolidated Financial Statements included in Item
8 of this Annual Report on Form 10-K for further information on our debt.
Share Repurchase Program
In April 2021, the Board of Directors of Alphabet authorized the company to repurchase up to $50.0 billion of its Class C stock. In July 2021, the
Alphabet board approved an amendment to the April 2021 authorization, permitting the company to repurchase both Class A and Class C shares in a
manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions,
including the relative trading

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As of December 31, 2021, future operating lease payments totaled $15.5 billion, with $2.5 billion short-term, and not-yet-commenced leases had future payments of $606 million short-term and $5.2 billion long-term.

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As of
December 31, 2021, the amount of total future lease payments under operating leases, which had a weighted average remaining lease term of 8
years, was $15.5 billion, of which $2.5 billion is short-term. As of December 31, 2021, we have entered into leases that have not yet commenced with
future short-term and long-term lease payments of $606 million and $5.2 billion, excluding purchase options, that are not yet recorded on our
Consolidated Balance Sheets.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

•

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The not-yet-commenced leases were scheduled to commence between 2022 and 2026 with non-cancelable terms of 1 to 25 years.

alphabet2021:daa39ea024ee34148ff44d69d7091eb5e9719f91354869a2886930755176e59e · reported_fact

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These leases will commence between 2022 and 2026 with non-cancelable lease terms of 1 to 25 years.

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Alphabet's commercial paper program had capacity of up to $10.0 billion and no commercial paper was outstanding at December 31, 2021.

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We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper, which increased from $5.0 billion
in September 2021. Net proceeds from this program are used for general corporate purposes. As of December 31, 2021, we had no commercial
paper outstanding.

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Alphabet had $10.0 billion of revolving credit facilities with no amounts outstanding at December 31, 2021; the facilities were scheduled to expire in April 2022 and April 2026.

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As of December 31, 2021, we had $10.0 billion of revolving credit facilities with no amounts outstanding. In April 2021, we terminated the
existing revolving credit facilities, which were scheduled to expire in July 2023, and entered into two new revolving credit facilities in the amounts of
$4.0 billion and $6.0 billion, which will expire in April 2022 and April 2026, respectively.

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office facilities, ground up development projects and related building improvements.

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The revolving credit facilities' interest rates were linked to market rates and progress toward certain sustainability goals.

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The interest rates for the new credit facilities are determined
based on a formula using certain market rates, as well as our progress toward the achievement of certain sustainability goals.

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In 2021, Alphabet repurchased and retired 20.3 million aggregate shares for $50.3 billion, and $17.4 billion remained available under the amended authorization at year end.

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In accordance with the authorizations of the Board of Directors of Alphabet, during 2021 we
repurchased and subsequently retired 20.3 million aggregate shares for $50.3 billion. Of the aggregate amount repurchased and subsequently
retired, 1.2 million shares were Class A stock repurchased for $3.4 billion. As of December 31, 2021, $17.4 billion remains available for Class A and
Class C share repurchases under the amended authorization.

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prices and volumes of the Class A and Class C shares. In accordance with the authorizations of the Board of Directors of Alphabet, during 2021 we
repurchased and subsequently retired 20.3 million aggregate shares for $50.3 billion. Of the aggregate amount repurchased and subsequently
retired, 1.2 million shares were Class A stock repurchased for $3.4 billion. As of December 31, 2021, $17.4 billion remains available for Class A and
Class C share repurchases under the amended authorization. The repurchases are being executed from time to time, subject to general business
and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through
Rule 10b5-1 plans. The repurchase program does not have an expiration date. See Note 11 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.
European Commission Fines
In 2017, 2018 and 2019, the EC announced decisions that certain actions taken by Google infringed European competition law and imposed
fines of €2.4 billion ($2.7 billion as of June 27, 2017), €4.3 billion ($5.1 billion as of June 30, 2018), and €1.5 billion ($1.7 billion as of March 20, 2019),
respectively. While each EC decision is under appeal, we included the fines in accrued expenses and other current liabilities on our Consolidated
Balance Sheets as we provided bank guarantees (in lieu of a cash payment) for the fines.
Taxes
As of December 31, 2021, we had short-term and long-term income taxes payable of $784 million and $5.7 billion related to a one-time transition
tax payable incurred as a result of the U.S. Tax Cuts and Jobs Act ("Tax Act"). As permitted by the Tax Act, we will pay the transition tax in annual
interest-free installments through 2025. We also have taxes payable of $3.5 billion primarily related to uncertain tax positions as of December 31,
2021.
Purchase Commitments
We regularly enter into significant non-cancelable contractual obligations primarily related to data center operations and build-outs, information
technology assets, office buildings, purchases of inventory, and network capacity arrangements. As of December 31, 2021, such purchase
commitments, which do not qualify for recognition on our Consolidated Balance Sheets, amount to $13.7 billion, of which $11.9 billion is short-term.
These amounts represent the non-cancelable portion of agreements or the minimum cancellation fee. For those agreements with variable terms, we
do not estimate the non-cancelable obligation beyond any minimum quantities and/or pricing as of December 31, 2021.
Critical Accounting Estimates
We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make estimates and assumptions. Our
critical accounting estimates are those estimates that involve a significant level of uncertainty at the time the estimate was made, and changes in
them have had or are reasonably likely to have a material effect on our financial condition or results of operations. Accordingly, actual results could
differ materially from our estimates. We base our estimates on past experience and other assumptions that we believe are reasonable under the
circumstances, and we evaluate these estimates on an ongoing basis. We have reviewed our critical accounting estimates with the audit and
compliance committee of our Board of Directors.
See Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for a summary of
significant accounting policies and the effect on our financial statements.
Fair Value Measurements of Non-Marketable Equity Securities
We measure certain financial instruments at fair value on a nonrecurring basis, consisting primarily of our non-marketable equity securities.
These investments are accounted for under the measurement alternative and are measured at cost, less impairment, subject to upward and
downward adjustments resulting from observable price changes for identical or similar investments of the same issuer. These adjustments require
quantitative assessments of the fair value of our securities, which may require the use of unobservable inputs. Pricing adjustments are determined by
using various valuation methodologies and involve the use of estimates using the best information available, which may include cash flow projections
or other available market data.
Non-marketable equity securities are also evaluated for impairment, based on qualitative factors including the companies' financial and liquidity
position and access to capital resources, among others. When indicators of impairment exist, we prepare quantitative measurements of the fair value
of our equity investments using a market approach or an income approach, which requires judgment and the use of unobservable inputs, including
discount rates, investee revenues and costs, and comparable market data of private and public companies, among others. When our assessment
indicates that an impairment exists, we write down the investment to its fair value.

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The repurchase program was subject to general business and market conditions and other investment opportunities and had no expiration date.

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The repurchases are being executed from time to time, subject to general business
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Three European Commission competition fines of €2.4 billion, €4.3 billion, and €1.5 billion were under appeal, with bank guarantees provided instead of cash payment.

alphabet2021:649c084e93c07ff58dedc782184b913894534c44bc3922f3b2b6bdae0db113de · reported_fact

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In 2017, 2018 and 2019, the EC announced decisions that certain actions taken by Google infringed European competition law and imposed
fines of €2.4 billion ($2.7 billion as of June 27, 2017), €4.3 billion ($5.1 billion as of June 30, 2018), and €1.5 billion ($1.7 billion as of March 20, 2019),
respectively. While each EC decision is under appeal, we included the fines in accrued expenses and other current liabilities on our Consolidated
Balance Sheets as we provided bank guarantees (in lieu of a cash payment) for the fines.

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Alphabet stated that it would pay the transition tax in annual interest-free installments through 2025.

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As permitted by the Tax Act, we will pay the transition tax in annual
interest-free installments through 2025.

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As of December 31, 2021, purchase commitments totaled $13.7 billion, of which $11.9 billion was short-term.

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As of December 31, 2021, such purchase
commitments, which do not qualify for recognition on our Consolidated Balance Sheets, amount to $13.7 billion, of which $11.9 billion is short-term.

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Alphabet stated that critical accounting estimates involve significant uncertainty and that actual results could differ materially from estimates.

alphabet2021:0712120d466fb5b0020d807a125943607d899dea94b1341383a9a3d576bd08fd · challenge

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Our
critical accounting estimates are those estimates that involve a significant level of uncertainty at the time the estimate was made, and changes in
them have had or are reasonably likely to have a material effect on our financial condition or results of operations. Accordingly, actual results could
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Alphabet stated that non-marketable equity valuations may require unobservable inputs and quantitative judgment.

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These adjustments require
quantitative assessments of the fair value of our securities, which may require the use of unobservable inputs.

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Alphabet stated that final tax outcomes may differ from recorded amounts and affect income tax expense and the effective tax rate.

alphabet2021:a25267617bca4bf0b1beca111782da09705761a1880b368dfffb25db3aef6e6c · challenge

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Although we believe
we have adequately reserved for our uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be
different. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for
income taxes and the effective tax rate in the period in which such determination is made.

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Alphabet Inc.

We also have compensation arrangements with payouts based on realized returns from certain investments, i.e. performance fees. We
recognize compensation expense based on the estimated payouts, which may result in expense recognized before investment returns are realized,
and may require the use of unobservable inputs.
Property and Equipment
We assess the reasonableness of the useful lives of our property and equipment periodically as well as when other changes occur, such as
when there are changes to ongoing business operations, changes in the planned use and utilization of assets, or technological advancements, that
could indicate a change in the period over which we expect to benefit from the assets.
Income Taxes
We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating our uncertain tax positions
and determining our provision for income taxes.
Recording an uncertain tax position involves various qualitative considerations, including evaluation of comparable and resolved tax exposures,
applicability of tax laws, and likelihood of settlement. We evaluate uncertain tax positions periodically, considering changes in facts and
circumstances, such as new regulations or recent judicial opinions, as well as the status of audit activities by taxing authorities. Although we believe
we have adequately reserved for our uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be
different. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for
income taxes and the effective tax rate in the period in which such determination is made.
The provision for income taxes includes the effect of reserve provisions and changes to reserves that are considered appropriate as well as the
related net interest and penalties. In addition, we are subject to the continuous examination of our income tax returns by the Internal Revenue
Services (IRS) and other tax authorities which may assert assessments against us. We regularly assess the likelihood of adverse outcomes resulting
from these examinations and assessments to determine the adequacy of our provision for income taxes.
Loss Contingencies
We are regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving competition, intellectual
property, privacy, tax and related compliance, labor and employment, commercial disputes, content generated by our users, goods and services
offered by advertisers or publishers using our platforms, personal injury consumer protection, and other matters. Certain of these matters include
speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe that it is probable that a loss has been
incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be
estimated, we disclose the possible loss in Note 10 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on
Form 10-K.
We evaluate, on a regular basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, and
the matters and related reasonably possible losses disclosed, and make adjustments and changes to our disclosures as appropriate. Significant
judgment is required to determine both the likelihood and the estimated amount of a loss related to such matters. Until the final resolution of such
matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could be material.
Change in Accounting Estimate
In January 2021, we completed an assessment of the useful lives of our servers and certain network equipment. In doing so, we determined we
should adjust the estimated useful life. This change in accounting estimate was effective beginning fiscal year 2021 and is detailed further in Note 1 of
the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Alphabet stated that legal matters may expose it to losses in excess of recorded amounts and that those amounts could be material.

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Until the final resolution of such
matters, there may be an exposure to loss in excess of the amount recorded, and such amounts could be material.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Alphabet presented a sensitivity in which an adverse 10% foreign currency exchange rate change would have produced an approximately $285 million adverse effect on 2021 income before taxes after hedging.

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If an adverse 10% foreign currency exchange rate change was applied to total monetary assets, liabilities, and commitments denominated in
currencies other than the functional currencies at the balance sheet date, it would have resulted in an adverse effect on income before income taxes
of approximately $497 million and $285 million as of December 31, 2020 and 2021, respectively, after consideration of the effect of foreign exchange
contracts in place for the years ended December 31, 2020 and 2021.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

foreign currency exchange rates and determined that it was reasonably possible that adverse changes in exchange rates of 10% could be
experienced in the near term.
We use foreign exchange forward contracts to offset the foreign exchange risk on assets and liabilities denominated in currencies other than the
functional currency of the subsidiary. These forward contracts reduce, but do not entirely eliminate, the effect of foreign currency exchange rate
movements on our assets and liabilities. The foreign currency gains and losses on these assets and liabilities are recorded in other income
(expense), net, which are offset by the gains and losses on the forward contracts.
If an adverse 10% foreign currency exchange rate change was applied to total monetary assets, liabilities, and commitments denominated in
currencies other than the functional currencies at the balance sheet date, it would have resulted in an adverse effect on income before income taxes
of approximately $497 million and $285 million as of December 31, 2020 and 2021, respectively, after consideration of the effect of foreign exchange
contracts in place for the years ended December 31, 2020 and 2021.
We use foreign currency forwards and option contracts, including collars (an option strategy comprised of a combination of purchased and
written options) to protect forecasted U.S. dollar-equivalent earnings from changes in foreign currency exchange rates. When the U.S. dollar
strengthens, gains from foreign currency options and forwards reduce the foreign currency losses related to our earnings. When the U.S. dollar
weakens, losses from foreign currency collars and forwards offset the foreign currency gains related to our earnings. These hedging contracts reduce,
but do not entirely eliminate, the effect of foreign currency exchange rate movements. We designate these contracts as cash flow hedges for
accounting purposes. We reflect the gains or losses of foreign currency spot rate changes as a component of AOCI and subsequently reclassify them
into revenues to offset the hedged exposures as they occur.
If the U.S. dollar weakened by 10% as of December 31, 2020 and 2021, the amount recorded in AOCI related to our foreign exchange contracts
before tax effect would have been approximately $912 million and $1.3 billion lower as of December 31, 2020 and 2021, respectively. The change in
the value recorded in AOCI would be expected to offset a corresponding foreign currency change in forecasted hedged revenues when recognized.
We use foreign exchange forward contracts designated as net investment hedges to hedge the foreign currency risks related to investment in
foreign subsidiaries. These forward contracts serve to offset the foreign currency translation risk from our foreign operations.
If the U.S. dollar weakened by 10%, the amount recorded in cumulative translation adjustment (CTA) within AOCI related to our net investment
hedge would have been approximately $1.0 billion lower as of both December 31, 2020 and 2021. The change in value recorded in CTA would be
expected to offset a corresponding foreign currency translation gain or loss from our investment in foreign subsidiaries.
Interest Rate Risk
Our Corporate Treasury investment strategy is to achieve a return that will allow us to preserve capital and maintain liquidity. We invest primarily
in debt securities, including those of the U.S. government and its agencies, corporate debt securities, mortgage-backed securities, money market and
other funds, municipal securities, time deposits, asset backed securities, and debt instruments issued by foreign governments. By policy, we limit the
amount of credit exposure to any one issuer. Our investments in both fixed rate and floating rate interest earning securities carry a degree of interest
rate risk. Fixed rate securities may have their fair market value adversely affected due to a rise in interest rates, while floating rate securities may
produce less income than predicted if interest rates fall. Unrealized gains or losses on our marketable debt securities are primarily due to interest rate
fluctuations as compared to interest rates at the time of purchase. For certain fixed and variable rate debt securities, we have elected the fair value
option for which changes in fair value are recorded in other income (expense), net. We measure securities for which we have not elected the fair
value option at fair value with gains and losses recorded in AOCI until the securities are sold, less any expected credit losses.
We use value-at-risk (VaR) analysis to determine the potential effect of fluctuations in interest rates on the value of our marketable debt security
portfolio. The VaR is the expected loss in fair value, for a given confidence interval, for our investment portfolio due to adverse movements in interest
rates. We use a variance/covariance VaR model with 95% confidence interval. The estimated one-day loss in fair value of marketable debt securities
as of December 31, 2020 and 2021 are shown below (in millions):
12-Month Average
As of December 31,

As of December 31,
2020

Risk Category - Interest Rate

2021

144

2020

139

2021

145

148

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Alphabet reported that a hypothetical adverse 10% price change in marketable equity securities at December 31, 2021 would decrease fair value by $780 million.

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A hypothetical adverse price change of 10% on our December 31, 2021 balance, which could be
experienced in the near term, would decrease the fair value of marketable equity securities by $780 million.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Actual future gains and losses associated with our marketable debt security portfolio may differ materially from the sensitivity analyses
performed as of December 31, 2020 and 2021 due to the inherent limitations associated with predicting the timing and amount of changes in interest
rates and our actual exposures and positions. VaR analysis is not intended to represent actual losses but is used as a risk estimation.
Equity Investment Risk
Our marketable and non-marketable equity securities are subject to a wide variety of market-related risks that could substantially reduce or
increase the fair value of our holdings.
Our marketable equity securities are publicly traded stocks or funds and our non-marketable equity securities are investments in privately held
companies, some of which are in the startup or development stages.
We record marketable equity securities not accounted for under the equity method at fair value based on readily determinable market values, of
which publicly traded stocks and mutual funds are subject to market price volatility, and represent $5.9 billion and $7.8 billion of our investments as of
December 31, 2020 and 2021, respectively. A hypothetical adverse price change of 10% on our December 31, 2021 balance, which could be
experienced in the near term, would decrease the fair value of marketable equity securities by $780 million. From time to time, we may enter into
derivatives to hedge the market price risk on certain of our marketable equity securities.
Our non-marketable equity securities not accounted for under the equity method are adjusted to fair value for observable transactions for
identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). The fair value measured at the time of
the observable transaction is not necessarily an indication of the current fair value as of the balance sheet date. These investments, especially those
that are in the early stages, are inherently risky because the technologies or products these companies have under development are typically in the
early phases and may never materialize, and they may experience a decline in financial condition, which could result in a loss of a substantial part of
our investment in these companies. The success of our investment in any private company is also typically dependent on the likelihood of our ability
to realize appreciation in the value of investments through liquidity events such as public offerings, acquisitions, private sales or other market events.
As of December 31, 2020 and 2021, the carrying value of our non-marketable equity securities, which were accounted for under the measurement
alternative, was $18.9 billion and $27.6 billion, respectively. Valuations of our equity investments in private companies are inherently more complex
due to the lack of readily available market data. Volatility in the global economic climate and financial markets could result in a significant impairment
charge relating to our non-marketable equity securities. Changes in valuation of non-marketable equity securities may not directly correlate with
changes in valuation of marketable equity securities. Additionally, observable transactions at lower valuations could result in significant losses on our
non-marketable equity securities. The effect of COVID-19 on our impairment assessment requires significant judgment due to the uncertainty around
the duration and severity of the effect.
The carrying values of our equity method investments, which totaled approximately $1.4 billion and $1.5 billion as of December 31, 2020 and
2021, respectively, generally do not fluctuate based on market price changes. However, these investments could be impaired if the carrying value
exceeds the fair value and is not expected to recover.
For further information about our equity investments, see Note 1 and Note 3 of the Notes to Consolidated Financial Statements included in Item
8 of this Annual Report on Form 10-K.

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Alphabet stated that early-stage non-marketable equity investments may never materialize and could lose a substantial part of their value.

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These investments, especially those
that are in the early stages, are inherently risky because the technologies or products these companies have under development are typically in the
early phases and may never materialize, and they may experience a decline in financial condition, which could result in a loss of a substantial part of
our investment in these companies.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet expected to recognize approximately half of its $51.0 billion revenue backlog as revenue over the next 24 months and the remaining amount thereafter.

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As of December 31, 2021 we had $51.0 billion of remaining performance obligations (“revenue backlog”), primarily related to Google Cloud, and
expect to recognize approximately half of this amount as revenues over the next 24 months with the remaining thereafter.

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Alphabet Inc.

The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions):
Year Ended December 31,
2020

2019

United States
EMEA(1)
APAC(1)
Other Americas(1)
Hedging gains (losses)
Total revenues
(1)

74,843
50,645
26,928
8,986
455
161,857

46 % $
31
17
6
0
100 % $

85,014
55,370
32,550
9,417
176
182,527

47 % $
30
18
5
0
100 % $

2021

117,854
79,107
46,123
14,404
149
257,637

46 %
31
18
5
0
100 %

Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America ("Other Americas").

Revenue Backlog and Deferred Revenues
As of December 31, 2021 we had $51.0 billion of remaining performance obligations (“revenue backlog”), primarily related to Google Cloud, and
expect to recognize approximately half of this amount as revenues over the next 24 months with the remaining thereafter. Our revenue backlog
represents commitments in customer contracts for future services that have not yet been recognized as revenues. The amount and timing of revenue
recognition for these commitments is largely driven by when our customers utilize services and our ability to deliver in accordance with relevant
contract terms, which could affect our estimate of revenue backlog and when we expect to recognize such as revenues. Revenue backlog includes
related deferred revenue currently recorded as well as amounts that will be invoiced in future periods, and excludes contracts with an original
expected term of one year or less and cancellable contracts.
We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable.
Deferred revenues primarily relate to Google Cloud and Google other. Total deferred revenue as of December 31, 2020 was $3.0 billion, of which
$2.3 billion was recognized as revenues for the year ending December 31, 2021.
Note 3. Financial Instruments
Debt Securities
We classify our marketable debt securities, which are accounted for as available-for-sale within Level 2 in the fair value hierarchy, because we
use quoted market prices to the extent available or alternative pricing sources and models utilizing market observable inputs to determine fair value.
For certain marketable debt securities, we have elected the fair value option for which changes in fair value are recorded in other income
(expense), net. The fair value option was elected for these securities to align with the unrealized gains and losses from related derivative contracts.
Unrealized net gains (losses) related to debt securities still held where we have elected the fair value option were $87 million and $(35) million as of
December 31, 2020 and December 31, 2021, respectively. As of December 31, 2020 and December 31, 2021, the fair value of these debt securities
was $2.0 billion and $4.7 billion, respectively.

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Alphabet stated that the Fitbit acquisition was expected to help spur innovation in wearable devices.

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In January 2021, we closed the acquisition of Fitbit, a leading wearables brand for $2.1 billion. The addition of Fitbit to Google Services is
expected to help spur innovation in wearable devices.

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Other Income (Expense), Net
Components of other income (expense), net, were as follows (in millions):
Year Ended December 31,
2019

Interest income
Interest expense(1)
Foreign currency exchange gain (loss), net (2)
Gain (loss) on debt securities, net
Gain (loss) on equity securities, net
Performance fees
Income (loss) and impairment from equity method investments, net
Other(3)
Other income (expense), net
(1)
(2)

(3)

$

$

2,427 $
(100)
103
149
2,649
(326)
390
102
5,394 $

2020

1,865 $
(135)
(344)
725
5,592
(609)
401
(637)
6,858 $

2021

1,499
(346)
(240)
(110)
12,380
(1,908)
334
411
12,020

Interest expense is net of interest capitalized of $167 million, $218 million, and $163 million for the years ended December 31, 2019, 2020, and 2021, respectively.
Our foreign currency exchange gain (loss), net, is primarily related to the forward points for our foreign currency hedging contracts and foreign exchange
transaction gains and losses from the conversion of the transaction currency to the functional currency, offset by the foreign currency hedging contracts' losses
and gains.
During the year ended December 31, 2020, we entered into derivatives that hedged the changes in fair value of certain marketable equity securities, which
resulted in losses of $902 million and gains of $92 million for the years ended December 31, 2020 and 2021, respectively. The offsetting recognized gains and
losses on the marketable equity securities are reflected in Gain (loss) on equity securities, net.

Note 8. Acquisitions
Fitbit
In January 2021, we closed the acquisition of Fitbit, a leading wearables brand for $2.1 billion. The addition of Fitbit to Google Services is
expected to help spur innovation in wearable devices. The assets acquired and liabilities assumed were recorded at fair value. The purchase price
excludes post acquisition compensation arrangements. The purchase price was attributed to $440 million cash acquired, $590 million of intangible
assets, $1.2 billion of goodwill and $92 million of net liabilities assumed. Goodwill was recorded in the Google Services segment and primarily
attributable to synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes.
Other Acquisitions
During the year ended December 31, 2021, we completed other acquisitions and purchases of intangible assets for total consideration of
approximately $885 million, net of cash acquired, of which the total amount of goodwill expected to be deductible for tax purposes is approximately
$118 million. Pro forma results of operations for these acquisitions have not been presented because they are not material to our consolidated results
of operations, either individually or in the aggregate.

74

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Alphabet expected $25.8 billion of unrecognized compensation cost related to unvested employee RSUs to be recognized over a weighted-average period of 2.5 years.

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As of December 31, 2021, there was $25.8 billion of unrecognized compensation cost related to unvested employee RSUs. This amount is
expected to be recognized over a weighted-average period of 2.5 years.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

Note 13. Compensation Plans
Stock Plans
Our stock plans include the Alphabet Amended and Restated 2012 Stock Plan, the Alphabet 2021 Stock Plan and Other Bet stock-based plans.
Under our stock plans, RSUs and other types of awards may be granted. An RSU award is an agreement to issue shares of our Class C stock at the
time the award vests. RSUs generally vest over four years contingent upon employment on the vesting date.
As of December 31, 2021, there were 37,479,707 shares of Class C stock reserved for future issuance under the Alphabet 2021 Stock Plan.
Stock-Based Compensation
For the years ended December 31, 2019, 2020, and 2021, total stock-based compensation expense was $11.7 billion, $13.4 billion, and $15.7
billion, including amounts associated with awards we expect to settle in Alphabet stock of $10.8 billion, $12.8 billion, and $15.0 billion, respectively.
For the years ended December 31, 2019, 2020, and 2021, we recognized tax benefits on total stock-based compensation expense, which are
reflected in the provision for income taxes in the Consolidated Statements of Income, of $1.8 billion, $2.7 billion, and $3.1 billion, respectively.
For the years ended December 31, 2019, 2020, and 2021, tax benefit realized related to awards vested or exercised during the period was $2.2
billion, $3.6 billion, and $5.9 billion, respectively. These amounts do not include the indirect effects of stock-based awards, which primarily relate to
the R&D tax credit.
Stock-Based Award Activities
The following table summarizes the activities for unvested Alphabet RSUs for the year ended December 31, 2021:
Unvested Restricted Stock Units
WeightedAverage
Grant-Date
Fair Value

Number of
Shares

Unvested as of December 31, 2020
Granted
Vested
Forfeited/canceled
Unvested as of December 31, 2021

19,288,793
10,582,700
(11,209,486)
(1,767,294)
16,894,713

$
$
$
$

1,262.13
1,949.16
1,345.98
1,425.48

1,626.13

The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2019 and 2020 was $1,092.36 and
$1,407.97, respectively. Total fair value of RSUs, as of their respective vesting dates, during the years ended December 31, 2019, 2020, and 2021
were $15.2 billion, $17.8 billion, and $28.8 billion, respectively.
As of December 31, 2021, there was $25.8 billion of unrecognized compensation cost related to unvested employee RSUs. This amount is
expected to be recognized over a weighted-average period of 2.5 years.
401(k) Plans
We have two 401(k) Savings Plans that qualify as deferred salary arrangements under Section 401(k) of the Internal Revenue Code. Under
these 401(k) Plans, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. We recognized
expense of approximately $724 million, $855 million, and $916 million for the years ended December 31, 2019, 2020, and 2021, respectively.
Note 14. Income Taxes
Income from continuing operations before income taxes consisted of the following (in millions):
Year Ended December 31,
2019

Domestic operations
Foreign operations

$
$

Total

16,426
23,199
39,625

2020

$
$

37,576
10,506
48,082

2021

$
$

77,016
13,718
90,734

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Alphabet announced a conditional 20-for-one stock split with a July 1, 2022 record date and July 15, 2022 distribution date if approved.

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If approval is obtained, each of the Company’s stockholders of record at the close of business on July 1, 2022 (the “Record Date”), will receive,
after the close of business on July 15, 2022, a dividend of 19 additional shares of the same class of stock for every share held by such stockholder as
of the Record Date.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.

If approval is obtained, each of the Company’s stockholders of record at the close of business on July 1, 2022 (the “Record Date”), will receive,
after the close of business on July 15, 2022, a dividend of 19 additional shares of the same class of stock for every share held by such stockholder as
of the Record Date.
Note 12. Net Income Per Share
We compute net income per share of Class A, Class B, and Class C stock using the two-class method. Basic net income per share is computed
using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average
number of shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of restricted stock
units and other contingently issuable shares. The dilutive effect of outstanding restricted stock units and other contingently issuable shares is
reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A
stock assumes the conversion of Class B stock, while the diluted net income per share of Class B stock does not assume the conversion of those
shares.
The rights, including the liquidation and dividend rights, of the holders of our Class A, Class B, and Class C stock are identical, except with
respect to voting. Furthermore, there are a number of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude
our Board of Directors from declaring or paying unequal per share dividends on our Class A, Class B, and Class C stock. Specifically, Delaware law
provides that amendments to our certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a
given class of stock must be approved by the class of stock adversely affected by the proposed amendment. In addition, our certificate of
incorporation provides that before any such amendment may be put to a stockholder vote, it must be approved by the unanimous consent of our
Board of Directors. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A,
Class B, and Class C stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed
earnings are allocated on a proportionate basis.
In the years ended December 31, 2019, 2020 and 2021, the net income per share amounts are the same for Class A, Class B, and Class C
stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Amended and
Restated Certificate of Incorporation of Alphabet Inc.
The following tables set forth the computation of basic and diluted net income per share of Class A, Class B, and Class C stock (in millions,
except share amounts which are reflected in thousands and per share amounts):
Year Ended December 31,
2019
Class A
Basic net income per share:
Numerator
Allocation of undistributed earnings
Denominator
Number of shares used in per share computation
Basic net income per share

$

14,846

Class B

$

299,402

Diluted net income per share:
Numerator
Allocation of undistributed earnings for basic computation
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares
Reallocation of undistributed earnings
Allocation of undistributed earnings
Denominator
Number of shares used in basic computation
Weighted-average effect of dilutive securities
Add:
Conversion of Class B to Class A shares outstanding
Restricted stock units and other contingently issuable shares
Number of shares used in per share computation
Diluted net income per share

2,307

$

46,527

17,190
346,667

$

49.59

$

49.59

$

49.59

$

14,846
2,307
(126)
17,027

$

2,307
0
(20)
2,287

$

17,190
0
126
17,316

$

$

79

Class C

$

$

299,402

46,527

346,667

46,527
413

0
0

0
5,547

346,342
49.16

$

46,527
49.16

$

352,214
49.16

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Alphabet stated that it faced ongoing antitrust investigations and lawsuits, believed the complaints were without merit, and would defend itself vigorously.

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We believe these complaints are without merit
and will defend ourselves vigorously. The DOJ and state Attorneys General continue their investigations into certain aspects of our business. We
continue to cooperate with federal and state regulators in the U.S., the EC and other regulators around the world.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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From time to time we are subject to formal and informal inquiries and investigations on competition matters by regulatory authorities in the U.S.,
Europe, and other jurisdictions. In August 2019, we began receiving civil investigative demands from the U.S. Department of Justice (DOJ) requesting
information and documents relating to our prior antitrust investigations and certain aspects of our business. The DOJ and a number of state Attorneys
General filed a lawsuit on October 20, 2020 alleging that Google violated U.S. antitrust laws relating to Search and Search advertising. Separately, on
December 16, 2020, a number of state Attorneys General filed an antitrust complaint against Google in the U.S. District Court for the Eastern District
of Texas, alleging that Google violated U.S. antitrust laws as well as state deceptive trade laws relating to its advertising technology. On June 22,
2021, the EC opened a formal investigation into Google's advertising technology business practices. On July 7, 2021, a number of state Attorneys
General filed an antitrust complaint against us in the U.S. District Court for the Northern District of California, alleging that Google’s operation of
Android and Google Play violated U.S. antitrust laws and state antitrust and consumer protection laws. We believe these complaints are without merit
and will defend ourselves vigorously. The DOJ and state Attorneys General continue their investigations into certain aspects of our business. We
continue to cooperate with federal and state regulators in the U.S., the EC and other regulators around the world.
Patent and Intellectual Property Claims
We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that certain of our products, services,
and technologies infringe others' intellectual property 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 features, functionalities, products, or services. As a result, we
may have to change our business practices and develop non-infringing products or technologies, which could result in a loss of revenues for us and
otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to litigate
intellectual property disputes because an ultimate loss in an ITC action can result in a prohibition on importing infringing products into the U.S.
Because the U.S. is an important market, a prohibition on importation could have an adverse effect on us, including preventing us from importing
many important products into the U.S. or necessitating workarounds that may limit certain features of our products.
Furthermore, many of our agreements with our customers and partners require us to indemnify them against certain intellectual property
infringement claims, which would increase our costs as a result of defending such claims, and may require that we pay significant damages if there
were an adverse ruling in any such claims. In addition, our customers and partners may discontinue the use of our products, services, and
technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely affect our business.
In 2010, Oracle America, Inc. (Oracle) brought a copyright lawsuit against Google in the Northern District of California, alleging that Google's
Android operating system infringes Oracle's copyrights related to certain Java application programming interfaces (Java APIs). After trial, final
judgment was entered by the district court in favor of Google on June 8, 2016, and the court decided post-trial motions in favor of Google. Oracle
appealed and on March 27, 2018, the Federal Circuit Court of Appeals reversed and remanded the case for a trial on damages. On May 29, 2018, we
filed a petition for a rehearing at the Federal Circuit, and on August 28, 2018, the Federal Circuit denied the petition. On January 24, 2019, we filed a
petition to the U.S. Supreme Court to review the case. On April 29, 2019, the Supreme Court requested the views of the Solicitor General regarding
our petition. On September 27, 2019, the Solicitor General recommended denying our petition, and we provided our response on October 16, 2019.
On November 15, 2019, the Supreme Court granted our petition and made a decision to review the case. The Supreme Court heard oral arguments
in our case on October 7, 2020. On April 5, 2021, the Supreme Court reversed the Federal Circuit's ruling and found that Google’s use of the Java
APIs was a fair use as a matter of law. The Supreme Court remanded the case to the Federal Circuit for further proceedings in conformity with the
Supreme Court opinion. On May 14, 2021, the Federal Circuit entered an order affirming the district court’s final judgment in favor of Google. On June
21, 2021, the Federal Circuit issued a mandate returning the case to the district court, and the case is now concluded.
Other
We are also regularly subject to claims, suits, regulatory and government investigations, other proceedings, and consent decrees involving
competition, intellectual property, privacy, tax and related compliance, labor and employment, commercial disputes, content generated by our users,
goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters. For example,
we have a number of privacy investigations and suits ongoing in multiple jurisdictions. Such claims, suits, regulatory and government investigations,
other proceedings, and consent decrees could result in substantial fines and penalties, injunctive relief, ongoing auditing and monitoring obligations,
changes to our products and services, alterations to our business models and operations, and collateral related civil litigation or other adverse
consequences, all of which could harm our business, reputation, financial condition, and operating results.

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Alphabet stated that legal and regulatory matters could result in fines, injunctions, monitoring obligations, product or business-model changes, and harm to its business and financial results.

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Such claims, suits, regulatory and government investigations,
other proceedings, and consent decrees could result in substantial fines and penalties, injunctive relief, ongoing auditing and monitoring obligations,
changes to our products and services, alterations to our business models and operations, and collateral related civil litigation or other adverse
consequences, all of which could harm our business, reputation, financial condition, and operating results.

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Based on current knowledge, Alphabet believed reasonably possible losses from outstanding matters would not have a material adverse effect, while stating that outcomes were inherently unpredictable.

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With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will
not, either individually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash
flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties.

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Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. We record a liability when we believe
that it is probable that a loss has been incurred, and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and
the loss or range of loss can be estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect
the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as
appropriate. Significant judgment is required to determine both the likelihood of there being and the estimated amount of a loss related to such
matters.
With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will
not, either individually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash
flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties.
We expense legal fees in the period in which they are incurred.
Non-Income Taxes
We are under audit by various domestic and foreign tax authorities with regards to non-income tax matters. The subject matter of non-income
tax audits primarily arises from disputes on the tax treatment and tax rate applied to the sale of our products and services in these jurisdictions and
the tax treatment of certain employee benefits. We accrue non-income taxes that may result from examinations by, or any negotiated agreements
with, these tax authorities when a loss is probable and reasonably estimable. If we determine that a loss is reasonably possible and the loss or range
of loss can be estimated, we disclose the reasonably possible loss. Due to the inherent complexity and uncertainty of these matters and judicial
process in certain jurisdictions, the final outcome may be materially different from our expectations.
For information regarding income tax contingencies, see Note 14.
Note 11. Stockholders' Equity
Preferred Stock
Our Board of Directors has authorized 100 million shares of preferred stock, $0.001 par value, issuable in series. As of December 31, 2020 and
2021, no shares were issued or outstanding.
Class A and Class B Common Stock and Class C Capital Stock
Our Board of Directors has authorized three classes of stock, Class A and Class B common stock, and Class C capital stock. The rights of the
holders of each class of our common and capital stock are identical, except with respect to voting. Each share of Class A common stock is entitled to
one vote per share. Each share of Class B common stock is entitled to 10 votes per share. Class C capital stock has no voting rights, except as
required by applicable law. Shares of Class B common stock may be converted at any time at the option of the stockholder and automatically convert
upon sale or transfer to Class A common stock.
Share Repurchases
In April 2021, the Board of Directors of Alphabet authorized the company to repurchase up to $50.0 billion of its Class C stock. In July 2021, the
Alphabet board approved an amendment to the April 2021 authorization, permitting the company to repurchase both Class A and Class C shares in a
manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions,
including the relative trading prices and volumes of the Class A and Class C shares. As of December 31, 2021, $17.4 billion remains available for
Class A and Class C share repurchases under the amended authorization.
In accordance with the authorizations of the Board of Directors of Alphabet, during the years ended December 31, 2020 and 2021, we
repurchased and subsequently retired 21.5 million and 20.3 million aggregate shares for $31.1 billion and $50.3 billion, respectively. Of the aggregate
amount repurchased and subsequently retired during 2021, 1.2 million shares were Class A stock for $3.4 billion.
Stock Split Effected in Form of Stock Dividend (“Stock Split”)
On February 1, 2022, the Company announced that the Board of Directors had approved and declared a 20-for-one stock split in the form of a
one-time special stock dividend on each share of the Company’s Class A, Class B, and Class C stock. The Stock Split is subject to stockholder
approval of an amendment to the Company’s Amended and Restated Certificate of Incorporation to increase the number of authorized shares of
Class A, Class B, and Class C stock to accommodate the Stock Split.

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  "excerpt": "With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will\nnot, either individually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash\nflows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties.",
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Alphabet reported that the Supreme Court found Google's use of the Java APIs to be fair use as a matter of law, and that the case was concluded after the Federal Circuit's June 21, 2021 mandate.

alphabet2021:a367bea31e600d4e669af7b94b984b6cda3955a6e4b69cf6b1bcdd3d9fcc1fec · reported_fact

Original source, physical page 78

On April 5, 2021, the Supreme Court reversed the Federal Circuit's ruling and found that Google’s use of the Java
APIs was a fair use as a matter of law. The Supreme Court remanded the case to the Federal Circuit for further proceedings in conformity with the
Supreme Court opinion. On May 14, 2021, the Federal Circuit entered an order affirming the district court’s final judgment in favor of Google. On June
21, 2021, the Federal Circuit issued a mandate returning the case to the district court, and the case is now concluded.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

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Alphabet Inc.

Unchanged extraction record

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Management, with CEO and CFO participation, concluded that disclosure controls and procedures were effective as of December 31, 2021 and designed to provide reasonable assurance.

alphabet2021:2ffb2843d771581fba581c5cc91251fcb377855d8aa6fc12b96a9279fd320205 · reported_fact

Original source, physical page 87

Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of December 31, 2021, our disclosure controls
and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to
disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified
in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer
and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

ITEM 9.

Alphabet Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.
ITEM 9A.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure
controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the end of the period covered by this Annual Report on Form 10-K.
Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of December 31, 2021, our disclosure controls
and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to
disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified
in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer
and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
We rely extensively on information systems to manage our business and summarize and report operating results. In 2019, we began a multiyear implementation of a new global ERP system, which will replace much of our existing core financial systems. The ERP system is designed to
accurately maintain our financial records, enhance the flow of financial information, improve data management and provide timely information to our
management team. The implementation is expected to continue in phases over the next few years. We completed the implementation of certain of
our subledgers, which included changes to our processes, procedures and internal controls over financial reporting during the second quarter of
2021. There have been no changes in our internal control over financial reporting that occurred during the quarter ended December 31, 2021 that
have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. However, as the phased
implementation of the new ERP system continues, we will change our processes and procedures, which in turn, could result in changes to our
internal control over financial reporting. As such changes occur, we will evaluate quarterly whether such changes materially affect our internal control
over financial reporting.
As a result of COVID-19, our global workforce continued to operate primarily in a work from home environment for the quarter ended
December 31, 2021. While we continue to evolve our work model in response to the uneven effects of the ongoing pandemic around the world, we
believe that our internal controls over financial reporting continue to be effective. We have continued to re-evaluate and refine our financial reporting
process to provide reasonable assurance that we could report our financial results accurately and in a timely manner.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f)
of the Exchange Act. Our management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the
framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework). Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 31,
2021. Management reviewed the results of its assessment with our Audit and Compliance Committee. The effectiveness of our internal control over
financial reporting as of December 31, 2021 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in
its report which is included in Item 8 of this Annual Report on Form 10-K.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how
well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure
controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating
the benefits of possible controls and procedures relative to their costs.
ITEM 9B.

OTHER INFORMATION

None.

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The global ERP implementation began in 2019 and was expected to continue in phases over the next few years.

alphabet2021:87e26601149909a53659aff30c64821b8b7fc3546033560d366e1538f8d8b165 · forecast

Original source, physical page 87

In 2019, we began a multiyear implementation of a new global ERP system, which will replace much of our existing core financial systems. The ERP system is designed to
accurately maintain our financial records, enhance the flow of financial information, improve data management and provide timely information to our
management team. The implementation is expected to continue in phases over the next few years.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

ITEM 9.

Alphabet Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.
ITEM 9A.

CONTROLS AND PROCEDURES

OTHER INFORMATION

None.

Unchanged extraction record

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Alphabet reported completing implementation of certain subledgers, including related process, procedure and internal control changes, during the second quarter of 2021.

alphabet2021:2a5b4a122f752f40da694cf527b4c3e070d2ea3e5ce0ee727c739840523832f1 · reported_fact

Original source, physical page 87

We completed the implementation of certain of
our subledgers, which included changes to our processes, procedures and internal controls over financial reporting during the second quarter of
2021.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

ITEM 9.

Alphabet Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.
ITEM 9A.

CONTROLS AND PROCEDURES

OTHER INFORMATION

None.

Unchanged extraction record

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Alphabet reported no fourth-quarter 2021 changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, those controls.

alphabet2021:5e59fe88256cb4f5f4c026daf8b8a406230de0a41e64205f15bb2f6623a7c2ea · reported_fact

Original source, physical page 87

There have been no changes in our internal control over financial reporting that occurred during the quarter ended December 31, 2021 that
have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

ITEM 9.

Alphabet Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.
ITEM 9A.

CONTROLS AND PROCEDURES

OTHER INFORMATION

None.

Unchanged extraction record

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Alphabet reported that its global workforce operated primarily from home during the quarter ended December 31, 2021 and that it continued refining its financial reporting process.

alphabet2021:86e3322179baf0c060a2fe1e1b65c2a78dcae8b931aed4864382a894077287e4 · reported_fact

Original source, physical page 87

As a result of COVID-19, our global workforce continued to operate primarily in a work from home environment for the quarter ended
December 31, 2021. While we continue to evolve our work model in response to the uneven effects of the ongoing pandemic around the world, we
believe that our internal controls over financial reporting continue to be effective. We have continued to re-evaluate and refine our financial reporting
process to provide reasonable assurance that we could report our financial results accurately and in a timely manner.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

ITEM 9.

Alphabet Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.
ITEM 9A.

CONTROLS AND PROCEDURES

OTHER INFORMATION

None.

Unchanged extraction record

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Management concluded that internal control over financial reporting was effective as of December 31, 2021 and reviewed the assessment with the Audit and Compliance Committee.

alphabet2021:54cb329cf7bc7b25049552b244caeccd33e4fa5790e004a093631f2542595e73 · reported_fact

Original source, physical page 87

Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 31,
2021. Management reviewed the results of its assessment with our Audit and Compliance Committee.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

ITEM 9.

Alphabet Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.
ITEM 9A.

CONTROLS AND PROCEDURES

OTHER INFORMATION

None.

Unchanged extraction record

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Management stated that controls provide only reasonable assurance and that control design must account for resource constraints, costs and management judgment.

alphabet2021:5b110dec958bef8857d4675af7ab671b1c115030329e7b5e8e714f05f4cd6a36 · challenge

Original source, physical page 87

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how
well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure
controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating
the benefits of possible controls and procedures relative to their costs.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Table of Contents

ITEM 9.

Alphabet Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.
ITEM 9A.

CONTROLS AND PROCEDURES

OTHER INFORMATION

None.

Unchanged extraction record

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  "excerpt": "In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how\nwell designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure\ncontrols and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating\nthe benefits of possible controls and procedures relative to their costs.",
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At December 31, 2021, Alphabet reported 300,736,598 Class A shares, 44,664,772 Class B shares and 316,719,697 Class C shares issued and outstanding, with no preferred shares outstanding.

alphabet2021:70120c286b8d2aae01b1175e69fbf7496e66212b10b7c8e176076d197f904b15 · reported_fact

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At December 31, 2021, there were 300,736,598 shares of Class A Common Stock issued and outstanding, 44,664,772 shares of Class B Common Stock issued and
outstanding, and 316,719,697 shares of Class C Capital Stock issued and outstanding. At that date, there were no shares of preferred stock outstanding.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Exhibit 4.20

DESCRIPTION OF SECURITIES
The following summary of the rights of our Class A Common Stock, Class B Common Stock, Class C Capital Stock, and preferred stock (collectively, the “Alphabet
securities”) does not purport to be complete. This summary is subject to and qualified by the provisions of our Amended and Restated Certificate of Incorporation
(“Certificate of Incorporation”), Amended and Restated Bylaws (“Bylaws”), the terms of our Class C Undertaking (as defined below), and certain Transfer
Restriction Agreements (as defined below), copies of which are incorporated herein by reference. Additionally, the Delaware General Corporation Law (“DGCL”),
as amended, also affects the terms of our capital stock.
Our Certificate of Incorporation provides for (1) the Class A Common Stock, which has one vote per share; (2) the Class B Common Stock, which has 10 votes per
share; and (3) the Class C Capital Stock, which has no voting rights unless otherwise required by law. Our Certificate of Incorporation also provides for 100,000,000
shares of preferred stock.
Capital Stock
Authorized Capital Stock
Our authorized capital stock consists of 15,100,000,000 shares, each with a par value of $0.001 per share, of which:
•

9,000,000,000 shares are designated as Class A Common Stock;

•

3,000,000,000 shares are designated as Class B Common Stock;

•

3,000,000,000 shares are designated as Class C Capital Stock; and

•

100,000,000 shares are designated as preferred stock.

At December 31, 2021, there were 300,736,598 shares of Class A Common Stock issued and outstanding, 44,664,772 shares of Class B Common Stock issued and
outstanding, and 316,719,697 shares of Class C Capital Stock issued and outstanding. At that date, there were no shares of preferred stock outstanding. All of the
outstanding shares of the Company’s capital stock are fully paid and nonassessable.
Voting Rights
Holders of shares of Class A Common Stock and Class B Common Stock have identical rights, except that holders of shares of Class A Common Stock are entitled
to one vote per share and holders of shares of Class B Common Stock are entitled to 10 votes per share. Holders of shares of Class A Common Stock and Class B
Common Stock vote together as a single class on all matters (including the election of directors) submitted to a vote of stockholders, unless otherwise required by
law.
Holders of shares of Class C Capital Stock have no voting rights, unless otherwise required by law.
The DGCL could require the holders of any of the shares of Class A Common Stock, Class B Common Stock, or Class C Capital Stock to vote separately as a single
class in the following circumstances:
•

If we amended our Certificate of Incorporation to increase or decrease the par value of the shares of a class of stock, then the holders of the
shares of that class would be required to vote separately to approve the proposed amendment.

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The report stated that Larry and Sergey had the ability to elect all directors and determine the outcome of most stockholder votes, and that this concentrated control could discourage potential transactions.

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As a result of their ownership of a substantial portion of our Class B Common Stock, Larry and Sergey currently
have the ability to elect all of our directors and to determine the outcome of most matters submitted for a vote of our stockholders. This concentrated voting control
could discourage others from initiating any potential merger, takeover, or other change of control transaction that other stockholders may view as beneficial.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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•

any additional dividend, liquidation, redemption, sinking fund and other rights and restrictions applicable to the preferred stock.

Holders of preferred stock will be entitled to receive, when, as and if declared by our Board of Directors, cash dividends at the rates and on the dates established by
such series of preferred stock. Dividend rates may be fixed or variable or both. Different series of preferred stock may be entitled to dividends at different dividend
rates or based upon different methods of determination. Each dividend will be payable to the holders of record as they appear on our stock books on record dates
determined by our Board of Directors. Dividends on preferred stock may be cumulative or noncumulative. If our Board of Directors fails to declare a dividend on
any preferred stock for which dividends are noncumulative, then the right to receive that dividend will be lost, and we will have no obligation to pay the dividend for
that dividend period, whether or not dividends are declared for any future dividend period.
Any series of preferred stock may be redeemable in whole or in part at our option. In addition, any series of preferred stock may be subject to mandatory redemption
pursuant to a sinking fund.
Anti-Takeover Effects of Our Certificate of Incorporation and Bylaws and of Delaware Law
Certain provisions of our Certificate of Incorporation and Bylaws and of the DGCL could have the effect of delaying, deferring, or discouraging another party from
acquiring control of us. In particular, our capital structure concentrates ownership of our voting stock in the hands of Larry, Sergey, and Eric. These provisions,
which are summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage
persons seeking to acquire control of us to first negotiate with our Board of Directors. However, these provisions could also have the effect of discouraging others
from attempting hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our Class A Common Stock or Class C
Capital Stock that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in our
management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best
interests.
Three Classes of Stock
As discussed above, our Class B Common Stock has 10 votes per share, while our Class A Common Stock has one vote per share and our Class C Capital Stock has
no voting rights (unless otherwise required by law). As a result of their ownership of a substantial portion of our Class B Common Stock, Larry and Sergey currently
have the ability to elect all of our directors and to determine the outcome of most matters submitted for a vote of our stockholders. This concentrated voting control
could discourage others from initiating any potential merger, takeover, or other change of control transaction that other stockholders may view as beneficial.
Because the Class C Capital Stock has no voting rights (except as required by law), the issuance of Class C Capital Stock will not result in voting dilution to the
holders of shares of Class A Common Stock or Class B Common Stock. As a result, the issuance of Class C Capital Stock could prolong the duration of Larry and
Sergey’s current relative ownership of our voting power and their ability to elect all of our directors and to determine the outcome of most matters submitted to a
vote of our stockholders.
So long as Larry and Sergey have the ability to determine the outcome of most matters submitted to a vote of our stockholders, third parties may be deterred in their
willingness to make an unsolicited merger, takeover, or other change of control proposal, or to engage in a proxy contest for the election of directors. As a result, our
three classes of stock may have the effect of depriving our stockholders of an opportunity to sell their shares at a premium over prevailing market prices and make it
more difficult to replace our directors and management.

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The Board could authorize preferred stock with voting or conversion rights that could dilute voting power and potentially delay or prevent a change in control or harm market prices.

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Our Board of Directors could authorize the issuance of preferred stock with voting or
conversion rights that could dilute the voting power or rights of the holders of Class A Common Stock, Class B Common Stock and Class C Capital Stock. The
issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the
effect of delaying, deferring or preventing a change in control of Alphabet and might harm the market price of our Class A Common Stock or Class C Capital Stock.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

receive in such transaction or a form of consideration different from the form that the holders of shares of Class C Capital Stock would receive, or may elect to
receive, in such transaction (the “Founder Equal Treatment Provision”).
With respect to Larry, Sergey, and certain of their respective affiliates, the applicable Transfer Restriction Agreements generally terminate when they collectively
hold less than 34% of our total outstanding voting power. However, the Founder Equal Treatment Provision never terminates.
With respect to Eric and certain of his affiliates, the applicable Transfer Restriction Agreement generally terminates when they collectively hold less than 2% of our
total outstanding voting power. However, the Founder Equal Treatment Provision never terminates.
As required under the terms of the Class C Settlement Agreement, the Transfer Restriction Agreements may only be amended or waived if such amendment or
waiver is (i) first considered and recommended by a committee of two or more independent directors of our Board of Directors who do not hold Class B Common
Stock and (ii) then approved by every member of our Board of Directors, excluding Larry and Sergey. Any Transfer Restriction Agreement amendment or waiver
will be publicly disclosed by Alphabet on a Form 8-K, Form 10-Q or Form 10-K at least 30 days before such amendment or waiver takes effect.
Preferred Stock
We are authorized to issue, without approval by our stockholders, up to a total of 100,000,000 shares of preferred stock in one or more series. Our Board of Directors
may establish the number of shares to be included in each such series and may fix the designations, preferences, powers, and other rights, and any qualifications,
limitations or restrictions of the shares of a series of preferred stock. Our Board of Directors could authorize the issuance of preferred stock with voting or
conversion rights that could dilute the voting power or rights of the holders of Class A Common Stock, Class B Common Stock and Class C Capital Stock. The
issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the
effect of delaying, deferring or preventing a change in control of Alphabet and might harm the market price of our Class A Common Stock or Class C Capital Stock.
The particular terms of any series of preferred stock offered by us may include:
•

the number of shares of the preferred stock being offered;

•

the title and liquidation preference per share of the preferred stock;

•

the purchase price of the preferred stock;

•

the dividend rate or method for determining the dividend rate;

•

the dates on which dividends will be paid;

•

whether dividends on the preferred stock will be cumulative or noncumulative and, if cumulative, the dates from which dividends shall
commence to accumulate;

•

any redemption or sinking fund provisions applicable to the preferred stock;

•

any securities exchange on which the preferred stock may be listed; and

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The Class C Undertaking required public disclosure of any waiver or amendment to the Transfer Restriction Agreements at least 30 days before it took effect.

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(ii) ensure that any
waiver or amendment of the Transfer Restriction Agreements will be publicly disclosed at least 30 days before such waiver or amendment takes effect on a Form 8K, Form 10-Q or Form 10-K;

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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consideration on a per share basis as the consideration, if any, received by holders of shares of Class A Common Stock in connection with such merger, consolidation
or combination (and if holders of shares of Class A Common Stock are entitled to make an election as to the amount or form of consideration that such holders shall
receive in any such merger, consolidation or combination with respect to their shares of Class A Common Stock, then the holders of shares of Class C Capital Stock
shall be entitled to make the same election as to their shares of Class C Capital Stock). In the event of any (1) tender or exchange offer to acquire any shares of Class
A Common Stock or Class B Common Stock by any third party pursuant to an agreement to which we are a party, or (2) any tender or exchange offer by us to
acquire any shares of Class A Common Stock or Class B Common Stock, the holders of shares of Class C Capital Stock shall receive the same amount and form of
consideration on a per share basis as the consideration received by holders of shares of Class A Common Stock (and if holders of shares of Class A Common Stock
are entitled to make an election as to the amount or form of consideration that such holders shall receive in any such tender or exchange offer with respect to their
shares of Class A Common Stock, then the holders of shares of Class C Capital Stock shall be entitled to make the same election as to their shares of Class C Capital
Stock).
Class C Settlement Agreement
In connection with the adjustment of Google’s capital structure by establishing the Google Class C Capital Stock, and the dividend of one share of Google Class C
Capital Stock for each share of Google Class A Common Stock and Google Class B Common Stock outstanding on March 27, 2014 (the “Class C dividend”), on
October 28, 2013, the Delaware Court of Chancery approved a settlement entered into by Google, the Board of Directors of Google and the plaintiffs in the class
action litigation involving the authorization to distribute Google Class C Capital Stock captioned In Re: Google Inc. Class C Shareholder Litigation, Civil Action
No. 7469-CS. The parties subsequently filed a Revised Stipulation of Compromise and Settlement with the Court, which issued an Order and Final Judgment on
November 6, 2013 that fully approved the parties’ settlement agreement (the “Google Class C Settlement”). Additionally, on October 2, 2015, we entered into a
Class C Undertaking pertaining to the Google Class C Settlement, pursuant to which Alphabet will undertake, with respect to the Alphabet securities, to be bound by
the restrictions, undertakings and all continuing obligations and to benefit from the rights of the Google Class C Settlement Agreement that are applicable to Google
as if Alphabet were Google (the “Class C Undertaking”).
The terms of the Class C Undertaking require us to: (i) ensure that the Transfer Restriction Agreements (defined below) entered into by Larry, our Co-Founder and
director; Sergey, our Co-Founder and director; and Eric E. Schmidt, our significant stockholder; and certain of their respective affiliates cannot be waived or
amended unless such amendment or waiver is first considered and recommended by a committee of two or more of the independent directors of our Board of
Directors who do not hold Class B Common Stock, and then approved by every member of our Board of Directors, excluding Larry and Sergey; (ii) ensure that any
waiver or amendment of the Transfer Restriction Agreements will be publicly disclosed at least 30 days before such waiver or amendment takes effect on a Form 8K, Form 10-Q or Form 10-K; (iii) effective for three years from the Class C dividend payment date, prior to issuing more than 10 million shares of Class C Capital
Stock as consideration in an acquisition or other business combination (excluding assumptions or conversions of equity for employees of acquired or combined
companies), have our independent directors consider the effects of issuing such shares on our holders of Class A Common Stock and upon the company as a whole;
and (iv) when the aggregate voting power of Larry and Sergey falls below 15% of the cumulative voting power of all our shareholders, have our Board of Directors
consider in good faith whether it is no longer in our best interests to maintain a class of nonvoting stock and, if it so determines, take steps to cause the Class C
Capital Stock to convert into Class A Common Stock.
Transfer Restriction Agreements
On October 2, 2015, we entered into a transfer restriction agreement with each of Larry, Sergey, Eric and certain of their respective affiliates (collectively, the
“Transfer Restriction Agreements”). On December 31, 2021, we entered

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Under the PSU agreement, earning levels were set at 0% below Threshold, 50% at Threshold, 100% at Target and 200% at Maximum or higher.

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For TSR Performance, should Alphabet fail to achieve at least Threshold, zero percent (0%) of the Target Award shall be
earned. Should Alphabet achieve (a) Threshold, fifty percent (50%) of the Target Award shall be earned, (b) Target, one hundred
percent (100%) of the Target Award shall be earned, or (c) Maximum (or greater), two hundred percent (200%) of the Target Award
shall be earned.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Merger with Company in Peer Group In the event of a merger, acquisition or business combination transaction of a Peer Company
with or by another Peer Company, the surviving entity shall remain a Peer Company
Merger with Company not in Peer
Group where Peer Company
survives

In the event of a merger of a Peer Company with an entity that is not a Peer Company, or the
acquisition or business combination transaction of a Peer Company by an entity that is not a Peer
Company, in each case where the Peer Company is the surviving entity and remains publicly
traded, the surviving entity shall remain a Peer Company
Merger with Company not in Peer
In the event of a merger or acquisition or business combination transaction of a Peer Company by
Group where Peer Company is not
or with an entity that is not a Peer Company or a “going private” transaction involving a Peer
the survivor/Peer Company taken
Company where the Peer Company is not the surviving entity or is otherwise no longer publicly
private
traded, the company shall no longer be a Peer Company
Bankruptcy, Liquidation or Delisting In the event of a bankruptcy, liquidation or delisting of a Peer Company at any time during the
Performance Period, such company shall remain a Peer Company and be assigned a TSR of
-100%. Delisting shall mean that a company ceases to be publicly traded on a national securities
exchange as a result of any involuntary failure to meet the listing requirements of such national
securities exchange, but shall not include delisting as a result of any voluntary going private or
similar transaction.
Spin-off Transaction
In the event of a stock distribution from a Peer Company consisting of the shares of a new
publicly-traded company (a “spin-off”), the Peer Company shall remain a Peer Company and the
stock distribution shall be treated as a dividend from the Peer Company based on the fair market
value of the distribution on the date of such distribution; the performance of the shares of the
spun-off company shall not thereafter be tracked for purposes of calculating TSR
Dividends Reinvested for both Alphabet and the Peer Companies shall mean dividends paid with respect to an ex-dividend
date that occurs beginning from the date when the Starting Average Share Price is measured through the end of the Performance
Period (whether or not the dividend payment date occurs during this period), which shall be deemed to have been reinvested in the
underlying Capital Stock or common shares, as applicable.
For TSR Performance, should Alphabet fail to achieve at least Threshold, zero percent (0%) of the Target Award shall be
earned. Should Alphabet achieve (a) Threshold, fifty percent (50%) of the Target Award shall be earned, (b) Target, one hundred
percent (100%) of the Target Award shall be earned, or (c) Maximum (or greater), two hundred percent (200%) of the Target Award
shall be earned. Should Alphabet achieve a TSR Performance level that falls between Threshold and Target or between Target and
Maximum, the percentage of the Target Award that shall be earned will be based upon straight-line interpolation between such
Performance Goals, rounded up to the nearest whole share of Capital Stock.

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  "numeric_target": "0%, 50%, 100%, 200%",
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The Committee was required to determine performance achievement and approve the Final Award within 45 days after the Performance Period ended.

alphabet2021:ea67170ebfedf98aa6555c1a5f26f91c49c898efd31e52bb647a177a47e84a44 · measurable_promise

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Within forty-five (45) days following the last day of the Performance
Period, the Committee shall determine achievement in respect of the Performance Goals (the date of such determination, the
“Determination Date”) and shall calculate and approve the Final Award in respect of such Grant.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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B.
Determination and Approval of Final Award. Within forty-five (45) days following the last day of the Performance
Period, the Committee shall determine achievement in respect of the Performance Goals (the date of such determination, the
“Determination Date”) and shall calculate and approve the Final Award in respect of such Grant. Any PSUs that are determined not
to be earned by the Committee under such Grant will be forfeited as of the Determination Date and the Participant will have no
further rights to such PSUs.
The Committee, in its sole discretion, shall make all determinations regarding the Performance Goals, including, but not
limited to, the extent of achievement, and any adjustments to the calculation of TSR of Alphabet or the Peer Companies, as necessary
or appropriate. Determinations made by the Committee will be final and binding on all parties and will be given the maximum
discretion permitted by law.

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Settlement of vested PSUs was required as soon as practicable after the Determination Date and no later than 45 days after that date.

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Settlement of vested PSUs in respect of a Grant shall occur as soon as practicable following the
applicable Determination Date, but in no event later than forty-five (45) days following such Determination Date, and the Company shall
have no further obligations under such Grant.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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and Exchange Commission enforcement action or otherwise being disqualified from serving in the Participant’s position; (ix) the
Participant’s engaging in gross misconduct; (x) a substantiated finding by the Company (or its delegate) of sexual harassment, sexual
misconduct or retaliation; (xi) the Participant being under investigation for sexual harassment, sexual misconduct or retaliation; or (xii)
the Participant’s commission of a felony under the laws of the United States or any state thereof or any comparably-classified crime
under the laws of a non-US jurisdiction or other serious crime involving moral turpitude. Notwithstanding the foregoing, termination of
the Participant's employment or service under (i), (ii), (iii), (iv) or (vi) (only) above will not be for “Cause” unless the Company
determines in its sole discretion that the conduct alleged to constitute “Cause” is susceptible of cure or remedy; and, if so, the Participant:
(a) is provided with written notice setting forth with specificity the conduct alleged to constitute “Cause,” (b) is provided not less than 30
days following such notice (the “Cure Period”) to cure or remedy such conduct prior to the effective date of the Participant's termination
of employment or services, during which period the Participant shall be provided the opportunity at the Participant’s election to address
the Board with respect to such conduct (with the assistance of legal counsel, if requested) and (c) fails to cure or remedy such conduct
during the Cure Period.
2.
Settlement of PSUs. Settlement of vested PSUs in respect of a Grant shall occur as soon as practicable following the
applicable Determination Date, but in no event later than forty-five (45) days following such Determination Date, and the Company shall
have no further obligations under such Grant. Alphabet will settle vested PSUs by issuing (either in book-entry form or otherwise) to the
Participant (or the Participant’s beneficiary or estate, in the event of the Participant’s death), one share of Capital Stock for each vested
PSU, subject to satisfaction of all applicable Tax-Related Items, as described in Section II.4 below.
3.
Adjustment Upon Certain Changes. In the event of any transaction or other event described in Section 9 of the Plan, each
Grant shall be treated the same way as all other restricted stock units issued under the Plan held by the executive officers of Alphabet in
office at the time of such event; provided, that in addition to any actions taken by the Committee in respect of such awards pursuant to
Sections 9(c) and (d) of the Plan, to the extent determined by the Committee to be necessary and appropriate in its sole discretion, the
number of PSUs subject to each Grant will be fixed at its Target Award.
4.

Taxes.

(a)
Liability for Tax-Related Items. The Participant acknowledges that the Participant is ultimately liable and
responsible for any and all income taxes (including federal, state and local income taxes), payroll taxes and other tax-related withholding
(the “Tax-Related Items”) arising in connection with PSUs, regardless of any action the Company takes with respect to such TaxRelated Items. The Participant further acknowledges that the Company (i) does not make any representation or undertaking regarding the
treatment of any Tax-Related Items in connection with any aspect of PSUs, including the grant, vesting and settlement of PSUs under any
Grant, or the subsequent sale of shares of Capital Stock acquired upon settlement of any PSUs and (ii) does not commit, and is under no
obligation, to structure the terms of PSUs or any aspect of PSUs under any Grant to reduce or eliminate the Participant’s liability for TaxRelated Items or achieve any particular tax result.
(b)
Payment of Withholding Taxes. Alphabet shall, pursuant to such procedures as the Committee may specify from
time to time, withhold a number of shares of Capital Stock otherwise issuable upon settlement of any vested PSUs having an aggregate
Fair Market Value sufficient to satisfy the federal, state and local withholding tax requirements attributable to vested PSUs but not greater
than the withholding obligations, as determined by the

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The payment of each Bonus Award shall be made no later than two and one half months following the end of the Fiscal Year in
which the applicable Performance Period ends.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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c.

TIMING OF PAYMENT

The payment of each Bonus Award shall be made no later than two and one half months following the end of the Fiscal Year in
which the applicable Performance Period ends.
d.

PAYMENT IN THE EVENT OF DEATH OR DISABILITY

Subject to applicable laws, if, following the end of the Performance Period but before payment of the Bonus Award, a Participant
dies or incurs a Disability, then the Bonus Award shall be paid, in the case of death, to his or her estate or his or her beneficiary pursuant
to Section 6(e), and in the case of Disability, to the Participant or any other person authorized under applicable law, in each case at the
time that Bonus Awards are otherwise paid pursuant to Section 4(c). If a Participant dies or incurs a Disability during the Performance
Period, then his or her estate or his or her beneficiary pursuant to Section 6(e) in the case of death, and the Participant or any other person
authorized under applicable law in the case of Disability, will receive a pro rata portion of the Target Award (a “Prorated Award”),
prorated based on the number of days the Participant worked during the Performance Period. The Prorated Award shall be paid no later
than two and one half months following the end of the Fiscal Year in which the Participant’s death or Disability occurs.
5. ADMINISTRATION
a.

COMMITTEE AS ADMINISTRATOR

The Plan shall be administered by the Committee, or its delegate. The Committee shall consist of not less than two (2) members.
The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and
powers under the Plan to one or more directors and/or officers of the Company.
b.

COMMITTEE AUTHORITY AND POWERS

It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The Committee shall have
all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the
power to (i) determine which Eligible Employees shall be granted Bonus Awards, (ii) prescribe the terms and conditions of Bonus
Awards, (iii) interpret the Plan and the Bonus Awards, (iv) adopt such procedures and subplans as are necessary or appropriate to permit
participation in the Plan by Eligible Employees who are foreign nationals or employed outside of the United States, (v) adopt rules for
the administration, interpretation and application of the Plan that are consistent therewith, (vi) interpret, amend or revoke any such rules,
and (vii) determine the duration of any Performance Period. No member of the Committee, or any person chosen as delegate by the
Committee, shall be liable to any Eligible Employee or Participant for any action, omission, or determination related to the Plan.
6.

GENERAL PROVISIONS
a.

CHANGES IN THE PLAN

The Board or the LDCC or any delegate of the LDCC, each in its sole discretion with or without notice, may revise, change, amend,
suspend or terminate the Plan, or any part thereof, at any time and for any reason during or at the end of any Performance Period ;
provided that, unless approved by the Committee of a Participating Affiliate, no such actions shall affect the Plan for any Performance
Period during which such action takes place in respect of such Participating Affiliate’s Participants. For purposes of clarification and
without limiting the

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alphabet2021:34693ce0d2feb98a9f86d0ad2229111c245231fec5ff126c5843ae190a773631 · aspiration

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The Alphabet Inc. Company Bonus Plan is intended to reward Participants for their individual and team achievements and allow
them to share in rewards for achievements of Alphabet Inc. or any successor thereto and the Participating Affiliates. The Plan should
motivate Participants (i) to perform to the best of their abilities, and (ii) to achieve the objectives of Alphabet and the Participating
Affiliates.

Alphabet Inc. 2021 Annual Report on Form 10-K. Container publication metadata: 2022-02-02 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Exhibit 10.08

ALPHABET INC.
COMPANY BONUS PLAN
1.

INTRODUCTION
a.

PURPOSE OF THE ALPHABET INC. COMPANY BONUS PLAN

The Alphabet Inc. Company Bonus Plan is intended to reward Participants for their individual and team achievements and allow
them to share in rewards for achievements of Alphabet Inc. or any successor thereto and the Participating Affiliates. The Plan should
motivate Participants (i) to perform to the best of their abilities, and (ii) to achieve the objectives of Alphabet and the Participating
Affiliates. The Plan’s goals are to be achieved by providing each Participant with the opportunity to earn Bonus Awards for the
achievement of goals relating to the performance of Alphabet and/or Participating Affiliate and the Participant. Participation in the Plan
and the payment of any sums hereunder shall be in the sole and absolute discretion of Alphabet or the applicable Participating Affiliate.
The Plan is applicable to all Eligible Employees regardless of location. As appropriate, due to local country laws or regulations,
certain provisions of the Plan may be modified or adjusted in the Company’s discretion to meet local legal requirements.
b.

EFFECTIVE DATE

The Plan is effective beginning October 19, 2021 and continuing until it is modified, suspended or terminated in accordance with
terms outlined herein.
2.

DEFINITIONS

“Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint ventures) controlled by Alphabet.
For purposes of this definition, “control” shall have the meaning given to such term under Rule 405 under the Securities Act of 1933, as
amended.
“Alphabet” means Alphabet Inc. or any successor thereto.
“Bonus Award” refers to a cash award made to a Participant under this Plan for the achievement of goals relating to individual
performance and the performance of the Company during the applicable Performance Period.
“Bonus Eligible Salary” refers to a proxy value that is used for the calculation of a Participant’s Bonus Award. If a Participant is on a
Leave of Absence during the Performance Period, his or her Bonus Eligible Salary may be reduced by the Company pro-rata based on the
duration of active employment as permitted by applicable law.
“Board” means the Board of Directors of Alphabet.
“Committee” means the LDCC in respect of Alphabet and the committee or other persons performing similar functions to the LDCC in
respect of a Participating Affiliate, as applicable.
“Company” shall mean either Alphabet or a Participating Affiliate, as applicable, in respect of its Eligible Employees.
“Company Performance” refers to the achievement of the Company based on objective (financial and nonfinancial) or subjective
metrics in a given Performance Period.

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The letter states that 15 Google products each serve more than half a billion people and businesses, and six serve more than 2 billion users.

alphabet2022and2023:2b5e1bf3e1f14810448f760d59b83ef86cf5a006af8171b487af93af9b4504a7 · reported_fact

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We have 15 Google products that each serve more
than half a billion people and businesses, and six that
serve more than 2 billion users each.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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It all started
with a search

A quarter century
of questions

Larry and Sergey first wrote down our mission
25 years ago: to organize the world’s information
and make it universally accessible and useful.
They had an ambitious vision for a new kind of search
engine to help people make sense of the waves of
information moving online. The product they built,
Google Search, went on to help billions of people
around the world get answers to their questions.

Search is still at the core of our mission, and it’s still
our biggest moonshot with so much more to do.

For a few years, I was one of those people experiencing
Google like any other user of the web. I remember
feeling blown away by Google’s ability to find the best
answer for the most esoteric questions, from a tiny
detail buried in a store’s customer service page to an
obscure football rule.
The questions I’ve asked Google have evolved over
time: “How do you fix a dripping faucet?” “Fastest
route to Stanford Hospital?” “Ways to calm a crying
baby?” And right around spring of 2003, perhaps:
“How to ace a Google interview?” And over time,
Google got much better at answering them.
It’s been inspiring to see what people have done with
the answers to their questions, be it to find health care
or comfort in difficult times, learn new skills, pursue
new career paths, or start new businesses. The idea
that a student in rural Indonesia could access the
same information as a professor at Stanford was
revolutionary and has changed lives and our world
for the better. It’s opened up access to education and
entrepreneurship like nothing else before it or since.
Search also laid the foundations for Google to make
an economic impact beyond our own walls. Our
advertising platforms and tools started out with a
premise as simple as Search itself: to help businesses
reach customers who were already looking for the
kinds of products and services they offer. It was
a platform that appealed to small businesses in
particular, like the mail-order business selling lobsters
that was the first to sign up. And also like Search itself,
the ability for any business to advertise online has had
a truly transformational impact, helping millions of
businesses become part of the digital economy.

Of course, Google today is more than a search box.
We have 15 Google products that each serve more
than half a billion people and businesses, and six that
serve more than 2 billion users each.
Like most Google searches, all those products started
with a question, too. With Gmail it was: Could we offer
1 GB of storage to every person? In 2004, when Gmail
launched, that volume of storage was over 100X what
most other free webmail services were offering!
Then a few years later, we saw an opportunity to
dramatically improve web browsers – and in turn
the web – for people everywhere. So with Chrome
we asked: Could we build a browser that made the
web better, with simplicity, speed, and security at its
core? Right before launch, I had my own question:
Will people use this?
YouTube dared to ask: What if we gave everyone
a way to share what they know with the world?
And today, it’s become a powerful platform for
learning and knowledge.
The questions have kept coming, and we’ve kept
improving and expanding our products with new
answers: What if Google Maps enabled people to
see every street in the world in detail? What if we
built a translation tool that allowed people to access
information and communicate in multiple languages?
What if you could search and find all your old photos
by simply describing what you wanted to see?
We’ve also asked ourselves how we could best share
our tools, breakthroughs, and infrastructure with
others. Google was built in the cloud from the start,
even though we only launched our Cloud business
in 2008. Today, Google Cloud has become one of
the top enterprise companies in the world. Partners
across industries are using Google technology to
improve customer support and supply chain efficiency,
reduce their carbon footprint, build new applications,
and get more done with AI. Like our advertising clients
before them, Cloud’s partners are operating better,
growing faster, and creating jobs with our help.

2

AnnualReport2023_Letter_0418.indd 2

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The letter reports that one million people were using generative AI in Google Workspace to write and create.

alphabet2022and2023:9070b909c8668449af76feb3c66f2a2cc8403d79f933ccaee5e5a504651a9b45 · reported_fact

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One million people are already using
generative AI in Google Workspace to write and
create.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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This also includes engaging in the important debates
about how those technologies will shape our society
and then finding the answers together. AI is a key part
of this. As excited as we are about the potential of AI
to benefit people and society, we understand that
AI, like any early technology, poses complexities and
risks. Our development and use of AI must address
these risks, and help to develop the technology
responsibly. The AI principles we launched in 2018
are an important part of how we do this. These
principles prompt questions like: Will it be helpful to
people and benefit society, or could it lead to harm in
any way? They also shape our product development
and AI applications, and guide us in finding solutions
to emerging issues. For example, just last week we
introduced SynthID, a tool for watermarking and
identifying AI-generated images, which will help
address an important issue around transparency.
We’ll continue to engage with experts and the
community to keep learning and improving.

Looking ahead
As we look ahead, I’ve been reflecting on the
commitment from our original founders’ letter in 2004:
“to develop services that improve the lives of as many
people as possible – to do things that matter.”
With AI, we have the opportunity to do things that
matter on an even larger scale.
We’re just beginning to see what the next wave
of technology is capable of and how quickly it can
improve. One million people are already using
generative AI in Google Workspace to write and
create. Flood forecasting now covers places where
460+ million people live. A million researchers have
used the AlphaFold database, which covers 200
million predictions of protein structures, helping with
advances to cut plastic pollution, tackle antibiotic
resistance, fight malaria, and more. And we’ve
demonstrated how AI can help the airline industry
to decrease contrails from planes, an important tool
for fighting climate change.

Making AI more helpful for everyone – and deploying
it responsibly – is the most important way we’ll deliver
on our mission for the next 10 years and beyond.
And now AI will allow us,
and others, to ask questions like:
How could every student have access to a
personal tutor, in any language, and on any topic?
How could we enable entrepreneurs
to develop new forms of clean energy?
What tools could we invent to help people design
and create new products and grow new businesses?
How can fields like transportation
and agriculture be reimagined?
How could we help communities predict
and prepare for natural disasters?
As these new frontiers come into view, we have
a renewed invitation to act boldly and responsibly
to improve as many lives as possible and to keep
asking those big questions.
Our search for answers will drive extraordinary
technology progress over the next 25 years.
And in 2048, if, somewhere in the world, a teenager
looks at all we’ve built with AI and shrugs, we’ll know
we succeeded. And then we’ll get back to work.
Thanks for an amazing 25,
Sundar Pichai

Still, there is so much more ahead. Over time, AI will be
the biggest technological shift we see in our lifetimes.
It’s bigger than the shift from desktop computing to
mobile, and it may be bigger than the internet itself.
It’s a fundamental rewiring of technology and an
incredible accelerant of human ingenuity.

4

AnnualReport2023_Letter_0418.indd 4

4/18/24 1:22 PM

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The letter reports flood forecasting coverage for places where more than 460 million people live.

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Original source, physical page 6

Flood forecasting now covers places where
460+ million people live.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

This also includes engaging in the important debates
about how those technologies will shape our society
and then finding the answers together. AI is a key part
of this. As excited as we are about the potential of AI
to benefit people and society, we understand that
AI, like any early technology, poses complexities and
risks. Our development and use of AI must address
these risks, and help to develop the technology
responsibly. The AI principles we launched in 2018
are an important part of how we do this. These
principles prompt questions like: Will it be helpful to
people and benefit society, or could it lead to harm in
any way? They also shape our product development
and AI applications, and guide us in finding solutions
to emerging issues. For example, just last week we
introduced SynthID, a tool for watermarking and
identifying AI-generated images, which will help
address an important issue around transparency.
We’ll continue to engage with experts and the
community to keep learning and improving.

Looking ahead
As we look ahead, I’ve been reflecting on the
commitment from our original founders’ letter in 2004:
“to develop services that improve the lives of as many
people as possible – to do things that matter.”
With AI, we have the opportunity to do things that
matter on an even larger scale.
We’re just beginning to see what the next wave
of technology is capable of and how quickly it can
improve. One million people are already using
generative AI in Google Workspace to write and
create. Flood forecasting now covers places where
460+ million people live. A million researchers have
used the AlphaFold database, which covers 200
million predictions of protein structures, helping with
advances to cut plastic pollution, tackle antibiotic
resistance, fight malaria, and more. And we’ve
demonstrated how AI can help the airline industry
to decrease contrails from planes, an important tool
for fighting climate change.

Making AI more helpful for everyone – and deploying
it responsibly – is the most important way we’ll deliver
on our mission for the next 10 years and beyond.
And now AI will allow us,
and others, to ask questions like:
How could every student have access to a
personal tutor, in any language, and on any topic?
How could we enable entrepreneurs
to develop new forms of clean energy?
What tools could we invent to help people design
and create new products and grow new businesses?
How can fields like transportation
and agriculture be reimagined?
How could we help communities predict
and prepare for natural disasters?
As these new frontiers come into view, we have
a renewed invitation to act boldly and responsibly
to improve as many lives as possible and to keep
asking those big questions.
Our search for answers will drive extraordinary
technology progress over the next 25 years.
And in 2048, if, somewhere in the world, a teenager
looks at all we’ve built with AI and shrugs, we’ll know
we succeeded. And then we’ll get back to work.
Thanks for an amazing 25,
Sundar Pichai

Still, there is so much more ahead. Over time, AI will be
the biggest technological shift we see in our lifetimes.
It’s bigger than the shift from desktop computing to
mobile, and it may be bigger than the internet itself.
It’s a fundamental rewiring of technology and an
incredible accelerant of human ingenuity.

4

AnnualReport2023_Letter_0418.indd 4

4/18/24 1:22 PM

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The report says more than $150 billion was invested in research and development during the last five years.

alphabet2022and2023:7fcd565f1a4acc456f24227809c2d1b13b0d587e19bcae2e2ab22f5baa6452cf · reported_fact

Original source, physical page 11

We are
continually innovating and building new products and features that will help our users, partners, customers, and communities
and have invested more than $150 billion in research and development in the last five years in support of these efforts.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Item 1. Business
Overview

Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud, and all non-Google businesses collectively as Other Bets. Alphabet’s structure is about helping
each of our businesses prosper through strong leaders and independence.

Access and Technology for Everyone

The Internet is one of the world’s most powerful equalizers; it propels ideas, people, and businesses large and small. Our mission
to organize the world’s information and make it universally accessible and useful is as relevant today as it was when we were
founded in 1998. Since then, we have evolved from a company that helps people find answers to a company that also helps
people get things done.
We are focused on building an even more helpful Google for everyone, and we aspire to give everyone the tools they need
to increase their knowledge, health, happiness, and success. Google Search helps people find information and make sense
of the world in more natural and intuitive ways, with trillions of searches on Google every year. YouTube provides people with
entertainment, information, and opportunities to learn something new. Google Assistant offers the best way to get things done
seamlessly across different devices, providing intelligent help throughout a person’s day, no matter where they are. Google Cloud
helps customers solve today’s business challenges, improve productivity, reduce costs, and unlock new growth engines. We are
continually innovating and building new products and features that will help our users, partners, customers, and communities
and have invested more than $150 billion in research and development in the last five years in support of these efforts.

Making AI Helpful for Everyone

AI is a transformational technology that can bring meaningful and positive change to people and societies across the world,
and for our business. At Google, we have been bringing AI into our products and services for more than a decade and
making them available to our users. Our journey began in 2001, when machine learning was first incorporated into Google
Search to suggest better spellings to users searching the web. Today, AI in our products is used by billions of people
globally through features like autocomplete suggestions in Google Search; translation across 133 languages in Google
Translate; and organization, searching, and editing in Google Photos.
Large language models (LLMs) are an exciting aspect of our work in AI based on deep learning architectures, such as the
Transformer, a neural network architecture that we introduced in 2017 that helped with language understanding. This led to
the Bidirectional Encoder Representations from Transformers, or BERT, in 2019 that helped Search understand the intent of
user search queries better than ever before.
Google was a company built in the cloud, and we continue to invest in our Google Cloud offerings, including Google
Cloud Platform and Google Workspace, to help organizations stay at the forefront of AI innovation with our AI-optimized
infrastructure, mature AI platform and world-class models, and assistive agents.

We believe AI can solve some of the hardest societal, scientific and engineering challenges of our time. For example, in 2020,
Google DeepMind’s AlphaFold system solved a 50-year-old protein folding challenge. Since then, we have open-sourced to
the scientific community 200 million of AlphaFold’s protein structures which are used to work on everything from accelerating
new malaria vaccines to advancing cancer drug discovery and developing plastic-eating enzymes. As another example, AI
can also have a transformative effect on climate progress by providing helpful information, predicting climate-related events,
and optimizing climate action. Using advanced AI and geospatial analysis, Google Research has developed flood forecasting
models that can provide early warning and real-time flooding information to communities and individuals.
Alphabet 2023 Annual Report

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The report states that AI features are used by billions of people globally and that Google Translate supports 133 languages.

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Original source, physical page 11

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Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Item 1. Business
Overview

Access and Technology for Everyone

The Internet is one of the world’s most powerful equalizers; it propels ideas, people, and businesses large and small. Our mission
to organize the world’s information and make it universally accessible and useful is as relevant today as it was when we were
founded in 1998. Since then, we have evolved from a company that helps people find answers to a company that also helps
people get things done.
We are focused on building an even more helpful Google for everyone, and we aspire to give everyone the tools they need
to increase their knowledge, health, happiness, and success. Google Search helps people find information and make sense
of the world in more natural and intuitive ways, with trillions of searches on Google every year. YouTube provides people with
entertainment, information, and opportunities to learn something new. Google Assistant offers the best way to get things done
seamlessly across different devices, providing intelligent help throughout a person’s day, no matter where they are. Google Cloud
helps customers solve today’s business challenges, improve productivity, reduce costs, and unlock new growth engines. We are
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Making AI Helpful for Everyone

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The report states that 200 million AlphaFold protein structures were open-sourced to the scientific community.

alphabet2022and2023:06e33d545ae792a158414bbfd4f4446f566efe2cc128fceff0bd6de403cf4087 · reported_fact

Original source, physical page 11

Since then, we have open-sourced to
the scientific community 200 million of AlphaFold’s protein structures which are used to work on everything from accelerating
new malaria vaccines to advancing cancer drug discovery and developing plastic-eating enzymes.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Item 1. Business
Overview

Access and Technology for Everyone

The Internet is one of the world’s most powerful equalizers; it propels ideas, people, and businesses large and small. Our mission
to organize the world’s information and make it universally accessible and useful is as relevant today as it was when we were
founded in 1998. Since then, we have evolved from a company that helps people find answers to a company that also helps
people get things done.
We are focused on building an even more helpful Google for everyone, and we aspire to give everyone the tools they need
to increase their knowledge, health, happiness, and success. Google Search helps people find information and make sense
of the world in more natural and intuitive ways, with trillions of searches on Google every year. YouTube provides people with
entertainment, information, and opportunities to learn something new. Google Assistant offers the best way to get things done
seamlessly across different devices, providing intelligent help throughout a person’s day, no matter where they are. Google Cloud
helps customers solve today’s business challenges, improve productivity, reduce costs, and unlock new growth engines. We are
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and have invested more than $150 billion in research and development in the last five years in support of these efforts.

Making AI Helpful for Everyone

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The report states that Gemini was launched in December 2023 and characterizes it as the company's most capable and general model.

alphabet2022and2023:b82a408fef6e2c7a02602f4f5acbdc4c998659d1cf2ed2f5e9cab028e84526aa · reported_fact

Original source, physical page 12

In December 2023, we launched Gemini, our
most capable and general model.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

As AI continues to improve rapidly, we are focused on giving helpful features to our users and customers as we deliver on
our mission to organize the world’s information and make it universally accessible and useful. With a bold and responsible
approach, we continue to take the next steps to make this technology even more helpful for everyone.

Deliver the Most Advanced, Safe, and Responsible AI

We aim to build the most advanced, safe, and responsible AI with models that are developed, trained, and rigorously tested
at scale powered by our continued investment in AI technical infrastructure. In December 2023, we launched Gemini, our
most capable and general model. It was built from the ground up to be multimodal, which means it can generalize and
seamlessly understand, operate across, and combine different types of information, including text, code, audio, images,
and video. Our teams across Alphabet will leverage Gemini, as well as other AI models we have previously developed and
announced, across our business to deliver the best product and service experiences for our users, advertisers, partners,
customers, and developers.

We believe our approach to AI must be both bold and responsible. That means developing AI in a way that maximizes the
positive benefits to society while addressing the challenges, guided by our AI Principles. We published these in 2018, as one
of the first companies to articulate principles that put beneficial use, users, safety, and avoidance of harms above business
considerations. While there is natural tension between being bold and being responsible, we believe it is possible — and in
fact critical — to embrace that tension productively.

Enable Organizations and Developers to Innovate on Google Cloud

AI is not only a powerful enabler, it is also a major platform shift. Globally, businesses from startups to large enterprises,
and the public sector are thinking about how to drive transformation. That is why we are focused on making it easy and
scalable for others to innovate, and grow, with AI. That means providing the most advanced computing infrastructure and
expanding access to Google’s latest AI models that have been rigorously tested in our own products. Our Vertex AI platform
gives developers the ability to train, tune, augment, and deploy applications using generative AI models and services such
as Enterprise Search and Conversations. Duet AI for Google Cloud provides pre-packaged AI agents that assist developers
to write, test, document, and operate software.

Improve Knowledge, Learning, Creativity, and Productivity

Things that we now consider routine – like spell check, mobile check deposit, or Google Search, Google Translate, and
Google Maps – all use AI. As AI continues to improve rapidly, we are focused on giving helpful features to our users as we
continue to deliver on our mission to organize the world’s information and make it universally accessible and useful.
While we have been integrating AI into our products for years, we are now embedding the power of generative AI to
continue helping our users express themselves and get things done. For example, Duet AI in Google Workspace helps
users write, organize, visualize, accelerate workflows, and have richer meetings. Bard allows users to collaborate with
experimental AI with new features that include image capabilities, coding support, and app integration. Dream Screen, a
new experimental feature in YouTube, allows for the creation of AI-generated video or image backgrounds to Shorts by
typing an idea into a prompt.

We also know businesses of all sizes around the world rely on Google Ads to find customers and grow their businesses —
and we make that even easier with AI. With Performance Max, advertisers simply tell us their campaign goals and share
their creative assets, and AI will automatically produce and run a highly effective ad campaign across all of Google’s
properties, to meet their budget. Product Studio brings the benefits of AI to businesses of all sizes, helping them easily
create uniquely-tailored imagery featuring their products — for free. Additionally, we are experimenting with Search and
Shopping ads that are directly integrated into the AI-powered snapshot and conversational mode in Search Generative
Experience.

Build the Most Helpful Personal Computing Platforms and Devices

Over the years, our Pixel phones have incorporated AI compute directly into the device and built experiences on top of it.
Our latest Pixel devices were built around AI, bringing the best AI-assistive experiences to our users, such as Best Take,
Magic Editor, and Audio Magic Eraser. As we look ahead, we are designing our Android and Chrome operating systems with
new AI-forward user experiences.

Alphabet 2023 Annual Report

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The report states that the goal for Other Bets is to become thriving, successful businesses.

alphabet2022and2023:bf9dc1e6e1725fa54c55e64c42356f91f346bf8688e3f81e75b72459f717a029 · aspiration

Original source, physical page 15

Our goal is for them to become thriving, successful
businesses.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Other Bets

Across Alphabet, we are also using technology to try to solve big problems that affect a wide variety of industries from
improving transportation and health technology to exploring solutions to address climate change. Alphabet’s investment in
the portfolio of Other Bets includes businesses that are at various stages of development, ranging from those in the R&D
phase to those that are in the beginning stages of commercialization. Our goal is for them to become thriving, successful
businesses. Other Bets operate as independent companies and some of them have their own boards with independent
members and outside investors. While these early-stage businesses naturally come with considerable uncertainty, some
of them are already generating revenue and making important strides in their industries. Revenues from Other Bets are
generated primarily from the sale of healthcare-related services and internet services.

Competition

Our business is characterized by rapid change as well as new and disruptive technologies. We face formidable competition
in every aspect of our business, including, among others, from:
• general purpose search engines and information services;

• vertical search engines and e-commerce providers for queries related to travel, jobs, and health, which users may
navigate directly to rather than go through Google;
• online advertising platforms and networks;

• other forms of advertising, such as billboards, magazines, newspapers, radio, and television as our advertisers typically
advertise in multiple media, both online and offline;
• digital content and application platform providers;
• providers of enterprise cloud services;

• developers and providers of AI products and services;

• companies that design, manufacture, and market consumer hardware products, including businesses that have
developed proprietary platforms;
• providers of digital video services;

• social networks, which users may rely on for product or service referrals, rather than seeking information through
traditional search engines;
• providers of workspace communication and connectivity products; and
• digital assistant providers.

Competing successfully depends heavily on our ability to develop and distribute innovative products and technologies
to the marketplace across our businesses. For example, for advertising, competing successfully depends on attracting
and retaining:
• users, for whom other products and services are literally one click away, largely on the basis of the relevance of our
advertising, as well as the general usefulness, security, and availability of our products and services;
• advertisers, primarily based on our ability to generate sales leads, and ultimately customers, and to deliver their
advertisements in an efficient and effective manner across a variety of distribution channels; and

• content providers, primarily based on the quality of our advertiser base, our ability to help these partners generate
revenues from advertising, and the terms of our agreements with them.
For additional information about competition, see Item 1A Risk Factors of this Annual Report on Form 10-K.

Ongoing Commitment to Sustainability

We believe that every business has the opportunity and obligation to protect our planet. Sustainability is one of our core
values at Google, and we strive to build sustainability into everything we do. We have been a leader on sustainability and
climate change since Google’s founding more than 25 years ago.
Our sustainability work is focused on empowering individuals to take action, working together with our partners and
customers, and working to reduce our carbon footprint across our operations and supply chain.

Alphabet 2023 Annual Report

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The report describes an aspiration to help individuals, cities, and other partners collectively reduce one gigaton of carbon equivalent emissions annually by 2030.

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In 2020, we shared our aspiration to help individuals, cities, and other partners collectively reduce one gigaton of their
carbon equivalent emissions annually by 2030.

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In 2020, we shared our aspiration to help individuals, cities, and other partners collectively reduce one gigaton of their
carbon equivalent emissions annually by 2030. This is an ambitious vision that we have set to push us to contribute
meaningfully to helping with climate solutions beyond our own operations and value chain.
In 2021, we set an ambitious goal to achieve net-zero emissions across all of our operations and value chain, by 2030.
To accomplish this, we aim to reduce 50% of our combined Scope 1, Scope 2 (market-based), and Scope 3 absolute
emissions (versus our 2019 baseline) before 2030, and plan to invest in nature-based and technology-based carbon
removal solutions to neutralize our remaining emissions. We have formally committed to the Science Based Targets
initiative to seek their validation of our absolute emissions reduction target.

One of the key levers for reducing emissions from our operations is transitioning to clean energy. Since 2017, we have
matched 100% of the electricity consumption of our global operations with purchases of renewable energy on an annual
basis. However, because of differences in the availability of renewable energy sources like solar and wind across the
regions where we operate—and because of the variable supply of these resources—we still need to rely on carbon-emitting
energy sources that power local grids. That is why we set a goal to run on 24/7 carbon-free energy (CFE) on every grid
where we operate by 2030.
Achieving net-zero emissions and 24/7 CFE by 2030 are extremely ambitious goals. We also know that our path to net-zero
emissions will not be easy or linear. Some of our plans may take years to deliver results, particularly where they involve
building new large-scale infrastructure with long lead times. So as our business continues to evolve, we expect our
emissions to rise before dropping towards our absolute emissions reduction target.
To benefit the people and places where we operate, we have set goals to replenish 120% of the freshwater volume we
consume, on average, across our offices and data centers by 2030 and to help restore and improve the quality of water
and health of ecosystems in the communities where we operate.

We also aim to maximize the reuse of finite resources across our operations, products, and supply chains. Our circularity
principles focus on designing out waste from the start, keeping materials in use for as long as possible, and promoting
healthy materials—for our data centers, workplaces, and products.
More information on our approach to sustainability can be found in our annual sustainability reports, including Google’s
Environmental Report. The contents of our sustainability reports are not incorporated by reference into this Annual
Report on Form 10-K or in any other report or document we file with the SEC. For additional information about risks and
uncertainties applicable to our commitments to attain certain sustainability goals, see Item 1A Risk Factors of this Annual
Report on Form 10-K.

Culture and Workforce

We are a company of curious, talented, and passionate people. We embrace collaboration and creativity, and encourage
the iteration of ideas to address complex challenges in technology and society.

Our people are critical for our continued success, so we work hard to create an environment where employees can have
fulfilling careers, and be happy, healthy, and productive. We offer industry-leading benefits and programs to take care
of the diverse needs of our employees and their families, including opportunities for career growth and development,
resources to support their financial health, and access to excellent healthcare choices. Our competitive compensation
programs help us to attract and retain top candidates, and we will continue to invest in recruiting talented people to
technical and non-technical roles, and rewarding them well. We provide a variety of high quality training and support to
managers to build and strengthen their capabilities—ranging from courses for new managers, to learning resources that
help them provide feedback and manage performance, to coaching and individual support.

At Alphabet, we are committed to making diversity, equity, and inclusion part of everything we do and to growing a
workforce that is representative of the users we serve. More information on Google’s approach to diversity can be found in
our annual diversity reports, available publicly at diversity.google. The contents of our diversity reports are not incorporated
by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC.
As of December 31, 2023, Alphabet had 182,502 employees. We have work councils and statutory employee representation
obligations in certain countries, and we are committed to supporting protected labor rights, maintaining an open culture,
and listening to all employees. Supporting healthy and open dialogue is central to how we work, and we communicate
information about the company through multiple internal channels to our employees.
6

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The report states a goal to achieve net-zero emissions across operations and the value chain by 2030.

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Original source, physical page 16

In 2021, we set an ambitious goal to achieve net-zero emissions across all of our operations and value chain, by 2030.

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Culture and Workforce

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The report states an aim to reduce combined Scope 1, Scope 2 market-based, and Scope 3 absolute emissions by 50% versus the 2019 baseline before 2030.

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To accomplish this, we aim to reduce 50% of our combined Scope 1, Scope 2 (market-based), and Scope 3 absolute
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Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Culture and Workforce

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The report states that since 2017, global operations' electricity consumption has been matched annually with renewable energy purchases.

alphabet2022and2023:efdcea7a2956f525a68ee03942362fca286ddf40919460ee65f3a9ec6a84d5ab · reported_fact

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Since 2017, we have
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Culture and Workforce

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Alphabet 2023 Annual Report

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The report states a goal to run on 24/7 carbon-free energy on every grid where the company operates by 2030.

alphabet2022and2023:23e7b88f695762f80a110de10c152da00d2220433d68bd1d4aa4d154e862e30e · measurable_promise

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That is why we set a goal to run on 24/7 carbon-free energy (CFE) on every grid
where we operate by 2030.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Culture and Workforce

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Alphabet 2023 Annual Report

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The report expects emissions to rise before dropping toward the absolute emissions reduction target as the business evolves.

alphabet2022and2023:af4f9743700135278cbcd37adfe62368b64b60d81a0ee2b8f02116970955a0c5 · forecast

Original source, physical page 16

So as our business continues to evolve, we expect our
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Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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We are a company of curious, talented, and passionate people. We embrace collaboration and creativity, and encourage
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Alphabet 2023 Annual Report

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The report states goals to replenish 120% of average freshwater consumption across offices and data centers by 2030.

alphabet2022and2023:938a8e9ec7087414a6fe67f69cdda329d2363a5c6e5c2728be6762e805d21878 · measurable_promise

Original source, physical page 16

To benefit the people and places where we operate, we have set goals to replenish 120% of the freshwater volume we
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Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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We are a company of curious, talented, and passionate people. We embrace collaboration and creativity, and encourage
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Alphabet 2023 Annual Report

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The report states that more than 75% of total 2023 revenues came from online advertising.

alphabet2022and2023:7b13018721a0971dba89433afda9ec7309e13f7d8de8468ef22802fa08d06f38 · reported_fact

Original source, physical page 18

We generated more than 75% of total revenues from online advertising in 2023.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Item 1A. Risk Factors

Our operations and financial results are subject to various risks and uncertainties, including but not limited to those
described below, which could harm our business, reputation, financial condition, and operating results, and affect the
trading price of our Class A and Class C stock.

Risks Specific to our Company

We generate a significant portion of our revenues from advertising. Reduced spending by advertisers,
a loss of partners, or new and existing technologies that block ads online and/or affect our ability to
customize ads could harm our business.

We generated more than 75% of total revenues from online advertising in 2023. Many of our advertisers, companies that
distribute our products and services, digital publishers, and content providers can terminate their contracts with us at
any time. These partners may not continue to do business with us if we do not create more value (such as increased
numbers of users or customers, new sales leads, increased brand awareness, or more effective monetization) than their
available alternatives. Changes to our advertising policies and data privacy practices, such as our initiatives to phase out
third-party cookies, as well as changes to other companies’ advertising and/or data privacy practices have in the past,
and may in the future, affect the advertising that we are able to provide. In addition, technologies have been developed
that make customized ads more difficult, or that block the display of ads altogether, and some providers of online services
have integrated these technologies that could potentially impair the availability and functionality of third-party digital
advertising. Failing to provide superior value or deliver advertisements effectively and competitively could harm our
business, reputation, financial condition, and operating results.

In addition, expenditures by advertisers tend to correlate with overall economic conditions. Adverse macroeconomic
conditions have affected, and may in the future affect, the demand for advertising, resulting in fluctuations in the amounts
our advertisers spend on advertising, which could harm our financial condition and operating results.

Our business environment is rapidly evolving and intensely competitive. Our businesses face changing technologies,
shifting user needs, and frequent introductions of rival products and services. To compete successfully, we must accurately
anticipate technology developments and deliver innovative, relevant and useful products, services, and technologies in a
timely manner. As our businesses evolve, the competitive pressure to innovate will encompass a wider range of products
and services. We must continue to invest significant resources in technical infrastructure and R&D, including through
acquisitions, in order to enhance our technology, products, and services.
We have many competitors in different industries. Our current and potential domestic and international competitors range
from large and established companies to emerging start-ups. Some competitors have longer operating histories and
well-established relationships in various sectors. They can use their experience and resources in ways that could affect our
competitive position, including by making acquisitions and entering into other strategic arrangements; continuing to invest
heavily in technical infrastructure, R&D, and in talent; initiating intellectual property and competition claims (whether or not
meritorious); and continuing to compete for users, advertisers, customers, and content providers. Further, discrepancies
in enforcement of existing laws may enable our lesser known competitors to aggressively interpret those laws without
commensurate scrutiny, thereby affording them competitive advantages. Our competitors may also be able to innovate and
provide products and services faster than we can or may foresee the need for products and services before we do.
We are expanding our investment in AI across the entire company. This includes generative AI and continuing to integrate AI
capabilities into our products and services. AI technology and services are highly competitive, rapidly evolving, and require
significant investment, including development and operational costs, to meet the changing needs and expectations of our
existing users and attract new users. Our ability to deploy certain AI technologies critical for our products and services and
for our business strategy may depend on the availability and pricing of third-party equipment and technical infrastructure.
Additionally, other companies may develop AI products and technologies that are similar or superior to our technologies or
more cost-effective to deploy. Other companies may also have (or in the future may obtain) patents or other proprietary
rights that would prevent, limit, or interfere with our ability to make, use, or sell our own AI products and services.
8

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The report identifies advertiser spending, partner retention, third-party cookie changes, and ad-blocking technologies as risks to the advertising business.

alphabet2022and2023:6eee4afcd1f2215beb5dd65ae8e140559c2e6c7506772a11c2d5c27f4681e3af · challenge

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Changes to our advertising policies and data privacy practices, such as our initiatives to phase out
third-party cookies, as well as changes to other companies’ advertising and/or data privacy practices have in the past,
and may in the future, affect the advertising that we are able to provide. In addition, technologies have been developed
that make customized ads more difficult, or that block the display of ads altogether

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Alphabet 2023 Annual Report

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The report states that Google Cloud may not attain sufficient scale and profitability to achieve its business objectives.

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Pricing and delivery models are competitive and constantly
evolving, and we may not attain sufficient scale and profitability to achieve our business objectives.

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Part III

Part IV

Our financial condition and operating results may also suffer if our products and services are not responsive to the
evolving needs and desires of our users, advertisers, publishers, customers, and content providers. As new and existing
technologies continue to develop, competitors and new entrants may be able to offer experiences that are, or that are seen
to be, substantially similar to or better than ours. These technologies could reduce usage of our products and services, and
force us to compete in different ways and expend significant resources to develop and operate equal or better products
and services. Competitors’ success in providing compelling products and services or in attracting and retaining users,
advertisers, publishers, customers, and content providers could harm our financial condition and operating results.

Our ongoing investment in new businesses, products, services, and technologies is inherently risky, and
could divert management attention and harm our business, financial condition, and operating results.

We have invested and expect to continue to invest in new businesses, products, services, and technologies in a wide range
of industries beyond online advertising. The investments that we are making across our businesses, such as building AI
capabilities into new and existing products and services, reflect our ongoing efforts to innovate and provide products and
services that are helpful to users, advertisers, publishers, customers, and content providers. Our investments ultimately
may not be commercially viable or may not result in an adequate return of capital and, in pursuing new strategies, we may
incur unanticipated liabilities. Innovations in our products and services could also result in changes to user behavior and
affect our revenue trends. These endeavors involve significant risks and uncertainties, including diversion of resources
and management attention from current operations, different monetization models, and the use of alternative investment,
governance, or compensation structures that may fail to adequately align incentives across the company or otherwise
accomplish their objectives.

Within Google Services, we continue to invest heavily in devices, including our smartphones, home devices, and wearables,
which is a highly competitive market with frequent introduction of new products and services, rapid adoption of
technological advancements by competitors, increased market saturation in developed countries, short product life cycles,
evolving industry standards, continual improvement in performance characteristics, and price and feature sensitivity on the
part of consumers and businesses. There can be no assurance we will be able to provide devices that compete effectively.
Within Google Cloud, we devote significant resources to develop and deploy our enterprise-ready cloud services, including
Google Cloud Platform and Google Workspace, and we are advancing our AI platforms and models to support these tools
and technologies. We are incurring costs to build and maintain infrastructure to support cloud computing services, invest
in cybersecurity, and hire talent, particularly to support and scale our sales force. At the same time, our competitors
are rapidly developing and deploying cloud-based services. Pricing and delivery models are competitive and constantly
evolving, and we may not attain sufficient scale and profitability to achieve our business objectives. Further, our business
with public sector customers may present additional risks, including regulatory compliance risks. For instance, we may be
subject to government audits and cost reviews, and any failure to comply or any deficiencies found may expose us to legal,
financial, and/or reputational risks. Evolving laws and regulations may require us to make new capital investments, build
new products, and seek partners to deliver localized services in other countries, and we may not be able to meet sovereign
operating requirements.
Within Other Bets, we are investing significantly in the areas of health, life sciences, and transportation, among others.
These investment areas face intense competition from large, experienced, and well-funded competitors, and our offerings,
many of which involve the development of new and emerging technologies, may not be successful, or be able to compete
effectively or operate at sufficient levels of profitability.

In addition, new and evolving products and services, including those that use AI, raise ethical, technological, legal,
regulatory, and other challenges, which may negatively affect our brands and demand for our products and services.
Because all of these investment areas are inherently risky, no assurance can be given that such strategies and offerings will
be successful or will not harm our reputation, financial condition, and operating results.

Our revenue growth rate could decline over time, and we may experience downward pressure on our
operating margin in the future.

Our revenue growth rate could decline over time as a result of a number of factors, including changes in the devices and
modalities used to access our products and services; changes in geographic mix; deceleration or declines in advertiser
spending; competition; customer usage and demand for our products; decreases in our pricing of our products and
services; ongoing product and policy changes; and shifts to lower priced products and services.
Alphabet 2023 Annual Report

9

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The report identifies harmful content, inaccuracies, discrimination, intellectual property, privacy, and cybersecurity issues as risks from AI efforts.

alphabet2022and2023:e7f1e2916c79c69714e41aab468c85face7b7af060ac4af1d5c0db2156aae95f · challenge

Original source, physical page 23

Our evolving AI-related efforts may give rise to risks related to harmful content, inaccuracies, discrimination, intellectual
property infringement or misappropriation, defamation, data privacy, cybersecurity, and other issues.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

Part IV

Risks Related to our Industry

People access our products and services through a variety of platforms and devices that continue to
evolve with the advancement of technology and user preferences. If manufacturers and users do not
widely adopt versions of our products and services developed for these interfaces, our business could
be harmed.

People access our products and services through a growing variety of devices such as desktop computers, mobile phones,
smartphones, laptops and tablets, video game consoles, voice-activated speakers, wearables (including virtual reality
and augmented reality devices), automobiles, and television-streaming devices. Our products and services may be less
popular on some interfaces. Each manufacturer or distributor may establish unique technical standards for its devices,
and our products and services may not be available or may only be available with limited functionality for our users or our
advertisers on these devices as a result. Some manufacturers may also elect not to include our products on their devices.
In addition, search queries may be undertaken via voice-activated search, apps, social media or other platforms, which
could harm our business. It is hard to predict the challenges we may encounter in adapting our products and services and
developing competitive new products and services. We expect to continue to devote significant resources to creating and
supporting products and services across multiple platforms and devices. Failing to attract and retain a substantial number
of new device manufacturers, suppliers, distributors, developers, and users, or failing to develop products and technologies
that work well on new devices and platforms, could harm our business, financial condition, and operating results and ability
to capture future business opportunities.

Issues in the development and use of AI may result in reputational harm and increased liability exposure.

Our evolving AI-related efforts may give rise to risks related to harmful content, inaccuracies, discrimination, intellectual
property infringement or misappropriation, defamation, data privacy, cybersecurity, and other issues. As a result of these
and other challenges associated with innovative technologies, our implementation of AI systems could subject us to
competitive harm, regulatory action, legal liability (including under new and proposed legislation and regulations), new
applications of existing data protection, privacy, intellectual property, and other laws, and brand or reputational harm.
Some uses of AI will present ethical issues and may have broad effects on society. In order to implement AI responsibly
and minimize unintended harmful effects, we have already devoted and will continue to invest significant resources to
develop, test, and maintain our products and services, but we may not be able to identify or resolve all AI-related issues,
deficiencies, and/or failures before they arise. Unintended consequences, uses, or customization of our AI tools and
systems may negatively affect human rights, privacy, employment, or other social concerns, which may result in claims,
lawsuits, brand or reputational harm, and increased regulatory scrutiny, any of which could harm our business, financial
condition, and operating results.

Data privacy and security concerns relating to our technology and our practices could harm our
reputation, cause us to incur significant liability, and deter current and potential users or customers from
using our products and services. Computer viruses, software bugs or defects, security breaches, and
attacks on our systems could result in the improper disclosure and use of user data and interference with
our users’ and customers’ ability to use our products and services, harming our business and reputation.

Concerns about, including the adequacy of, our practices with regard to the collection, use, governance, disclosure, or
security of personal data or other data-privacy-related matters, even if unfounded, could harm our business, reputation,
financial condition, and operating results. Our policies and practices may change over time as expectations and regulations
regarding privacy and data change.
Our products and services involve the storage, handling, and transmission of proprietary and other sensitive information.
Software bugs, theft, misuse, defects, vulnerabilities in our products and services, and security breaches expose us to a
risk of loss or improper use and disclosure of such information, which could result in litigation and other potential liabilities,
including regulatory fines and penalties, as well as reputational harm. Additionally, our products incorporate highly
technical and complex technologies, and thus our technologies and software have contained, and are likely in the future to
contain, undetected errors, bugs, and/or vulnerabilities. We continue to add new features involving AI to our offerings and
internal systems, and features that rely on AI may be susceptible to unanticipated security threats as our and the market’s
understanding of AI-centric security risks and protection methods continue to develop. We have in the past discovered,
and may in the future discover, some errors in our software code only after we have released the code. Systems and
Alphabet 2023 Annual Report

13

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The report states that a California jury delivered a December 2023 verdict finding Google violated antitrust laws related to Google Play billing practices.

alphabet2022and2023:e155eb3d1cbd10315005b6bc7b5777b034027b11e74d2e5b2775d96d603ce9e7 · reported_fact

Original source, physical page 27

For example, in December 2023, a California jury delivered a verdict in Epic Games v. Google finding that Google violated
antitrust laws related to Google Play’s billing practices.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

In addition, the applicability and scope of these and other laws and regulations, as interpreted by courts, regulators, or
administrative bodies, remain uncertain and could be interpreted in ways that harm our business. For example, we rely on
statutory safe harbors, like those set forth in the Digital Millennium Copyright Act and Section 230 of the Communications
Decency Act in the U.S. and the E-Commerce Directive in Europe, to protect against liability for various linking, caching,
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competition, intellectual property, data privacy and security, tax and related compliance, labor and employment,
commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using
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product liability, and consumer protection claims related to product defects, among other litigation, and we may also
be subject to claims involving health and safety, hazardous materials usage, other environmental effects, AI training,
development, and commercialization, or service disruptions or failures. Claims have been brought, and we expect
will continue to be brought, against us for defamation, negligence, breaches of contract, copyright and trademark
infringement, unfair competition, unlawful activity, torts, privacy rights violations, fraud, or other legal theories based
on the nature and content of information available on or via our services, the design and effect of our products and
services, or due to our involvement in hosting, transmitting, marketing, branding, or providing access to content created
by third parties.

For example, in December 2023, a California jury delivered a verdict in Epic Games v. Google finding that Google violated
antitrust laws related to Google Play’s billing practices. The presiding judge will determine remedies in 2024 and the range
of potential remedies vary widely. We plan to appeal. In addition, the U.S. Department of Justice, various U.S. states,
and other plaintiffs have filed several antitrust lawsuits about various aspects of our business, including our advertising
technologies and practices, the operation and distribution of Google Search, and the operation and distribution of the
Android operating system and Play Store. Other regulatory agencies in the U.S. and around the world, including competition
enforcers, consumer protection agencies, and data protection authorities, have challenged and may continue to challenge
our business practices and compliance with laws and regulations. We are cooperating with these investigations and
defending litigation or appealing decisions where appropriate.
Various laws, regulations, investigations, enforcement lawsuits, and regulatory actions have involved in the past, and may in
the future result in substantial fines and penalties, injunctive relief, ongoing monitoring and auditing obligations, changes to
our products and services, alterations to our business models and operations, including divestiture, and collateral related
civil litigation or other adverse consequences, all of which could harm our business, reputation, financial condition, and
operating results.
Any of these legal proceedings could result in legal costs, diversion of management resources, negative publicity and
other harms to our business. Estimating liabilities for our pending proceedings is a complex, fact-specific, and speculative
process that requires significant judgment, and the amounts we are ultimately liable for may be less than or exceed our
estimates. The resolution of one or more such proceedings has resulted in, and may in the future result in, additional
substantial fines, penalties, injunctions, and other sanctions that could harm our business, reputation, financial condition,
and operating results.

For additional information about the ongoing material legal proceedings to which we are subject, see Legal Proceedings in
Part I, Item 3 of this Annual Report on Form 10-K.

Alphabet 2023 Annual Report

17

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The report states that remedies would be determined in 2024, that potential remedies varied widely, and that the company planned to appeal.

alphabet2022and2023:63dda2b5a5964ecdd83782d6878b4d5e70108e58e7c0ec3748f242b9b4d66536 · challenge

Original source, physical page 27

The presiding judge will determine remedies in 2024 and the range
of potential remedies vary widely. We plan to appeal.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

In addition, the applicability and scope of these and other laws and regulations, as interpreted by courts, regulators, or
administrative bodies, remain uncertain and could be interpreted in ways that harm our business. For example, we rely on
statutory safe harbors, like those set forth in the Digital Millennium Copyright Act and Section 230 of the Communications
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ranking, recommending, and hosting activities. Legislation or court rulings affecting these safe harbors may adversely
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product liability, and consumer protection claims related to product defects, among other litigation, and we may also
be subject to claims involving health and safety, hazardous materials usage, other environmental effects, AI training,
development, and commercialization, or service disruptions or failures. Claims have been brought, and we expect
will continue to be brought, against us for defamation, negligence, breaches of contract, copyright and trademark
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services, or due to our involvement in hosting, transmitting, marketing, branding, or providing access to content created
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antitrust laws related to Google Play’s billing practices. The presiding judge will determine remedies in 2024 and the range
of potential remedies vary widely. We plan to appeal. In addition, the U.S. Department of Justice, various U.S. states,
and other plaintiffs have filed several antitrust lawsuits about various aspects of our business, including our advertising
technologies and practices, the operation and distribution of Google Search, and the operation and distribution of the
Android operating system and Play Store. Other regulatory agencies in the U.S. and around the world, including competition
enforcers, consumer protection agencies, and data protection authorities, have challenged and may continue to challenge
our business practices and compliance with laws and regulations. We are cooperating with these investigations and
defending litigation or appealing decisions where appropriate.
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the future result in substantial fines and penalties, injunctive relief, ongoing monitoring and auditing obligations, changes to
our products and services, alterations to our business models and operations, including divestiture, and collateral related
civil litigation or other adverse consequences, all of which could harm our business, reputation, financial condition, and
operating results.
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other harms to our business. Estimating liabilities for our pending proceedings is a complex, fact-specific, and speculative
process that requires significant judgment, and the amounts we are ultimately liable for may be less than or exceed our
estimates. The resolution of one or more such proceedings has resulted in, and may in the future result in, additional
substantial fines, penalties, injunctions, and other sanctions that could harm our business, reputation, financial condition,
and operating results.

For additional information about the ongoing material legal proceedings to which we are subject, see Legal Proceedings in
Part I, Item 3 of this Annual Report on Form 10-K.

Alphabet 2023 Annual Report

17

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The report states that cybersecurity risks had not materially affected business strategy, operating results, or financial condition as of the report, while future material effects were not assured.

alphabet2022and2023:d41f0f1ec49a4e139dd962a9f9e1c0ad3001610deec29cc816e37324f2842e07 · reported_fact

Original source, physical page 32

Our business strategy, results of operations and financial condition have not been materially affected by risks from
cybersecurity threats, including as a result of previously identified cybersecurity incidents, but we cannot provide
assurance that they will not be materially affected in the future by such risks or any future material incidents.

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Part I

Part II

Part III

Part IV

We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel, hire qualified
personnel, or maintain and continue to adapt our corporate culture, we may not be able to grow or
operate effectively.

Our performance and future success depends in large part upon the continued service of key technical leads as well as
members of our senior management team. For instance, Sundar Pichai is critical to the overall management of Alphabet
and its subsidiaries and plays an important role in the development of our technology, maintaining our culture, and setting
our strategic direction.

Our ability to compete effectively and our future success depend on our continuing to identify, hire, develop, motivate,
and retain highly skilled personnel for all areas of our organization. Competition in our industry for qualified employees
is intense, and certain of our competitors have directly targeted, and may continue to target, our employees. In addition,
our compensation arrangements, such as our equity award programs, may not always be successful in attracting new
employees and retaining and motivating our existing employees. Restrictive immigration policy and regulatory changes may
also affect our ability to hire, mobilize, or retain some of our global talent. All of our executive officers and key employees
are at-will employees, and we do not maintain any key-person life insurance policies.
In addition, we believe that our corporate culture fosters innovation, creativity, and teamwork. As our organization grows
and evolves, we may need to adapt our corporate culture and work environments to ever-changing circumstances, such
as during times of a natural disaster or pandemic, and these changes could affect our ability to compete effectively or
have an adverse effect on our corporate culture. Under our hybrid work models, we may experience increased costs and/or
disruption, in addition to potential effects on our ability to operate effectively and maintain our corporate culture.

Item 1B. Unresolved Staff Comments
Not applicable.

Item 1C. Cybersecurity

We maintain a comprehensive process for identifying, assessing, and managing material risks from cybersecurity threats
as part of our broader risk management system and processes. We obtain input, as appropriate, for our cybersecurity risk
management program on the security industry and threat trends from multiple external experts and internal threat intelligence
teams. Teams of dedicated privacy, safety, and security professionals oversee cybersecurity risk management and mitigation,
incident prevention, detection, and remediation. Leadership for these teams are professionals with deep cybersecurity
expertise across multiple industries, including our Vice President of Privacy, Safety, and Security Engineering. Our executive
leadership team, along with input from the above teams, are responsible for our overall enterprise risk management system
and processes and regularly consider cybersecurity risks in the context of other material risks to the company.
As part of our cybersecurity risk management system, our incident management teams track and log privacy and security
incidents across Alphabet, our vendors, and other third-party service providers to remediate and resolve any such
incidents. Significant incidents are reviewed regularly by a cross-functional working group to determine whether further
escalation is appropriate. Any incident assessed as potentially being or potentially becoming material is immediately
escalated for further assessment, and then reported to designated members of our senior management. We consult with
outside counsel as appropriate, including on materiality analysis and disclosure matters, and our senior management makes
the final materiality determinations and disclosure and other compliance decisions. Our management apprises Alphabet’s
independent public accounting firm of matters and any relevant developments.
The Audit and Compliance Committee has oversight responsibility for risks and incidents relating to cybersecurity threats,
including compliance with disclosure requirements, cooperation with law enforcement, and related effects on financial and other
risks, and it reports any findings and recommendations, as appropriate, to the full Board for consideration. Senior management
regularly discusses cyber risks and trends and, should they arise, any material incidents with the Audit and Compliance
Committee. Internal Audit maintains a dedicated cybersecurity auditing team that independently tests our cybersecurity controls.
Our business strategy, results of operations and financial condition have not been materially affected by risks from
cybersecurity threats, including as a result of previously identified cybersecurity incidents, but we cannot provide
assurance that they will not be materially affected in the future by such risks or any future material incidents. For more
information on our cybersecurity related risks, see Item 1A Risk Factors of this Annual Report on Form 10-K.
22

Alphabet 2023 Annual Report

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The MD&A expects the continuing shift online to benefit business and revenues, but at a slower historical pace, with competition potentially affecting revenues.

alphabet2022and2023:09ef30ef6206368b9b8155f231259306e9a0f99d189bf2af392b9b5735ffeeed · forecast

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We expect that this evolution will continue to benefit our business and our revenues, although at a slower
pace than we have experienced historically, in particular after the outsized growth in our advertising revenues during the
COVID-19 pandemic. In addition, we face increasing competition for user engagement and advertisers, which may affect
our revenues.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with “Note
about Forward-Looking Statements,” Part I, Item 1 “Business,” Part I, Item 1A “Risk Factors,” and our consolidated financial
statements and related notes included under Item 8 of this Annual Report on Form 10-K.
The following section generally discusses 2023 results compared to 2022 results. Discussion of 2022 results compared to
2021 results to the extent not included in this report can be found in Item 7 of our 2022 Annual Report on Form 10-K.

Understanding Alphabet’s Financial Results

Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud; we also report all non-Google businesses collectively as Other Bets. For additional information
on our segments, see Part I, Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in
Item 8 of this Annual Report on Form 10-K.

Trends in Our Business and Financial Effect

The continuing evolution of the online world has contributed to the growth of our business and our revenues since
inception. We expect that this evolution will continue to benefit our business and our revenues, although at a slower
pace than we have experienced historically, in particular after the outsized growth in our advertising revenues during the
COVID-19 pandemic. In addition, we face increasing competition for user engagement and advertisers, which may affect
our revenues.
• Users continue to access our products and services using diverse devices and modalities, which allows for new
advertising formats that may benefit our revenues but adversely affect our margins.

Our users are accessing our products and services via diverse devices and modalities, such as smartphones, wearables,
connected TVs, and smart home devices, and want to be able to be connected no matter where they are or what they are
doing. We are focused on expanding our products and services to stay in front of these trends in order to maintain and
grow our business.

We benefit from advertising revenues generated from different channels, including mobile, and newer advertising formats.
The margins from these channels and newer products have generally been lower than those from traditional desktop
search. Additionally, as the market for a particular device type or modality matures, our advertising revenues may be
affected. For example, changing dynamics within the global smartphone market, such as increased market saturation in
developed countries, can affect our mobile advertising revenues.

• As online advertising evolves, we continue to expand our product offerings, which may affect our monetization.
As interactions between users and advertisers change, and as online user behavior evolves, we continue to expand
our product offerings to serve these changing needs, which may affect our monetization. For example, revenues from
ads on YouTube and Google Play monetize at a lower rate than our traditional search ads. We also expect to continue
to incorporate AI innovations into our products, such as AI in Search, that could affect our monetization trends. When
developing new products and services we generally focus first on user experience and then on monetization.
26

Alphabet 2023 Annual Report

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The MD&A identifies lower margins from mobile and newer advertising formats, and possible revenue effects as device markets mature.

alphabet2022and2023:e1831b733967cc44756d2f846923956b894f1990cfecb578e8c4e1a10ed3e311 · challenge

Original source, physical page 36

The margins from these channels and newer products have generally been lower than those from traditional desktop
search. Additionally, as the market for a particular device type or modality matures, our advertising revenues may be
affected.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with “Note
about Forward-Looking Statements,” Part I, Item 1 “Business,” Part I, Item 1A “Risk Factors,” and our consolidated financial
statements and related notes included under Item 8 of this Annual Report on Form 10-K.
The following section generally discusses 2023 results compared to 2022 results. Discussion of 2022 results compared to
2021 results to the extent not included in this report can be found in Item 7 of our 2022 Annual Report on Form 10-K.

Understanding Alphabet’s Financial Results

Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud; we also report all non-Google businesses collectively as Other Bets. For additional information
on our segments, see Part I, Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in
Item 8 of this Annual Report on Form 10-K.

Trends in Our Business and Financial Effect

The continuing evolution of the online world has contributed to the growth of our business and our revenues since
inception. We expect that this evolution will continue to benefit our business and our revenues, although at a slower
pace than we have experienced historically, in particular after the outsized growth in our advertising revenues during the
COVID-19 pandemic. In addition, we face increasing competition for user engagement and advertisers, which may affect
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• Users continue to access our products and services using diverse devices and modalities, which allows for new
advertising formats that may benefit our revenues but adversely affect our margins.

Alphabet 2023 Annual Report

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The MD&A expects traffic acquisition costs to increase as revenues grow and says the TAC rate may be affected by device, geographic, partner, product, query, growth, and revenue share factors.

alphabet2022and2023:da24a0c292f2b52366b27ecaf54c618f742e57ff617d57c7fcf05e81fa97425d · forecast

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We expect TAC paid to our distribution partners and Google Network partners to increase as our revenues grow and TAC
as a percentage of our advertising revenues (“TAC rate”) to be affected by changes in device mix; geographic mix; partner
agreement terms; partner mix; the percentage of queries channeled through paid access points; product mix; the relative
revenue growth rates of advertising revenues from different channels; and revenue share terms.
We expect these trends to continue to affect our revenues and put pressure on our margins.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations

Please read the following discussion and analysis of our financial condition and results of operations together with “Note
about Forward-Looking Statements,” Part I, Item 1 “Business,” Part I, Item 1A “Risk Factors,” and our consolidated financial
statements and related notes included under Item 8 of this Annual Report on Form 10-K.
The following section generally discusses 2023 results compared to 2022 results. Discussion of 2022 results compared to
2021 results to the extent not included in this report can be found in Item 7 of our 2022 Annual Report on Form 10-K.

Understanding Alphabet’s Financial Results

Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, Google
Services and Google Cloud; we also report all non-Google businesses collectively as Other Bets. For additional information
on our segments, see Part I, Item 1 Business and Note 15 of the Notes to Consolidated Financial Statements included in
Item 8 of this Annual Report on Form 10-K.

Trends in Our Business and Financial Effect

The continuing evolution of the online world has contributed to the growth of our business and our revenues since
inception. We expect that this evolution will continue to benefit our business and our revenues, although at a slower
pace than we have experienced historically, in particular after the outsized growth in our advertising revenues during the
COVID-19 pandemic. In addition, we face increasing competition for user engagement and advertisers, which may affect
our revenues.
• Users continue to access our products and services using diverse devices and modalities, which allows for new
advertising formats that may benefit our revenues but adversely affect our margins.

Alphabet 2023 Annual Report

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The MD&A expects performance in developing markets to continue affecting results and notes that those markets initially monetize at lower rates than mature markets.

alphabet2022and2023:8c84b7ecf3b0961f041e7342b9f3292e3450ddb95bf9b0c7e729b31bb8b09f9c · forecast

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We expect that our results will continue to be affected by our performance in these markets, particularly as
low-cost mobile devices become more available. This trend could affect our revenues as developing markets initially
monetize at a lower rate than more mature markets.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part II

Part III

Part IV

We continue to make significant research and development investments in areas of strategic focus as we seek to develop
new, innovative offerings, improve our existing offerings, and rapidly and responsibly deploy AI across our businesses.
We also expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network
equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support
of AI products and services. In addition, acquisitions and strategic investments contribute to the breadth and depth of our
offerings, expand our expertise in engineering and other functional areas, and build strong partnerships around strategic
initiatives.
• We continue to face an evolving regulatory environment, and we are subject to claims, lawsuits, investigations, and
other forms of potential legal liability, which could affect our business practices and financial results.

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of
topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and caused
us to change our business practices. As these global trends continue, our cost of doing business may increase, our ability
to pursue certain business models or offer certain products or services may be limited, and we may need to change our
business practices to comply with evolving regulatory and legal matters. Examples include the antitrust complaints filed by
the U.S. Department of Justice and a number of state Attorneys General; legislative proposals and pending litigation in the
U.S., EU, and around the world that could diminish or eliminate safe harbor protection for websites and online platforms;
and the Digital Markets Act and Digital Services Act in Europe and various legislative proposals in the U.S. focused on large
technology platforms. For additional information, see Item 1A Risk Factors and Legal Matters in Note 10 of the Notes to
Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.
• Our employees are critical to our success and we expect to continue investing in them.

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The MD&A expects revenue beyond advertising to continue increasing and notes that these revenues generally carry lower margins than advertising.

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Original source, physical page 37

Revenues from cloud, consumer subscriptions, platforms, and devices, which may have differing characteristics than our
advertising revenues, have grown over time, and we expect this trend to continue as we focus on expanding our products
and services. The margins on these revenues vary significantly and are generally lower than the margins on our advertising
revenues. For example, sales of our devices adversely affect our consolidated margins due to pressures on pricing and
higher cost of sales.

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Full saved page including headers

Part I

Part II

Part III

Part IV

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new, innovative offerings, improve our existing offerings, and rapidly and responsibly deploy AI across our businesses.
We also expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network
equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support
of AI products and services. In addition, acquisitions and strategic investments contribute to the breadth and depth of our
offerings, expand our expertise in engineering and other functional areas, and build strong partnerships around strategic
initiatives.
• We continue to face an evolving regulatory environment, and we are subject to claims, lawsuits, investigations, and
other forms of potential legal liability, which could affect our business practices and financial results.

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of
topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and caused
us to change our business practices. As these global trends continue, our cost of doing business may increase, our ability
to pursue certain business models or offer certain products or services may be limited, and we may need to change our
business practices to comply with evolving regulatory and legal matters. Examples include the antitrust complaints filed by
the U.S. Department of Justice and a number of state Attorneys General; legislative proposals and pending litigation in the
U.S., EU, and around the world that could diminish or eliminate safe harbor protection for websites and online platforms;
and the Digital Markets Act and Digital Services Act in Europe and various legislative proposals in the U.S. focused on large
technology platforms. For additional information, see Item 1A Risk Factors and Legal Matters in Note 10 of the Notes to
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• Our employees are critical to our success and we expect to continue investing in them.

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The MD&A expects technical infrastructure investment to increase relative to 2023, particularly to support AI products and services.

alphabet2022and2023:9ebda0440c86dd4bb4df439bcd4d23dbb0a77f0e897409430837d81c133a8530 · forecast

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We also expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network
equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support
of AI products and services.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

We continue to make significant research and development investments in areas of strategic focus as we seek to develop
new, innovative offerings, improve our existing offerings, and rapidly and responsibly deploy AI across our businesses.
We also expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network
equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support
of AI products and services. In addition, acquisitions and strategic investments contribute to the breadth and depth of our
offerings, expand our expertise in engineering and other functional areas, and build strong partnerships around strategic
initiatives.
• We continue to face an evolving regulatory environment, and we are subject to claims, lawsuits, investigations, and
other forms of potential legal liability, which could affect our business practices and financial results.

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of
topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and caused
us to change our business practices. As these global trends continue, our cost of doing business may increase, our ability
to pursue certain business models or offer certain products or services may be limited, and we may need to change our
business practices to comply with evolving regulatory and legal matters. Examples include the antitrust complaints filed by
the U.S. Department of Justice and a number of state Attorneys General; legislative proposals and pending litigation in the
U.S., EU, and around the world that could diminish or eliminate safe harbor protection for websites and online platforms;
and the Digital Markets Act and Digital Services Act in Europe and various legislative proposals in the U.S. focused on large
technology platforms. For additional information, see Item 1A Risk Factors and Legal Matters in Note 10 of the Notes to
Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.
• Our employees are critical to our success and we expect to continue investing in them.

Alphabet 2023 Annual Report

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The MD&A warns that evolving regulatory and legal conditions may increase costs, limit business models or offerings, and require changes to business practices.

alphabet2022and2023:b364f32385374f9b639aed57a6df2d7c6da2c21d888ec8d1c54cd1262f60dd72 · challenge

Original source, physical page 37

As these global trends continue, our cost of doing business may increase, our ability
to pursue certain business models or offer certain products or services may be limited, and we may need to change our
business practices to comply with evolving regulatory and legal matters.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

We continue to make significant research and development investments in areas of strategic focus as we seek to develop
new, innovative offerings, improve our existing offerings, and rapidly and responsibly deploy AI across our businesses.
We also expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network
equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support
of AI products and services. In addition, acquisitions and strategic investments contribute to the breadth and depth of our
offerings, expand our expertise in engineering and other functional areas, and build strong partnerships around strategic
initiatives.
• We continue to face an evolving regulatory environment, and we are subject to claims, lawsuits, investigations, and
other forms of potential legal liability, which could affect our business practices and financial results.

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide range of
topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in fines and caused
us to change our business practices. As these global trends continue, our cost of doing business may increase, our ability
to pursue certain business models or offer certain products or services may be limited, and we may need to change our
business practices to comply with evolving regulatory and legal matters. Examples include the antitrust complaints filed by
the U.S. Department of Justice and a number of state Attorneys General; legislative proposals and pending litigation in the
U.S., EU, and around the world that could diminish or eliminate safe harbor protection for websites and online platforms;
and the Digital Markets Act and Digital Services Act in Europe and various legislative proposals in the U.S. focused on large
technology platforms. For additional information, see Item 1A Risk Factors and Legal Matters in Note 10 of the Notes to
Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.
• Our employees are critical to our success and we expect to continue investing in them.

Alphabet 2023 Annual Report

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Revenue fluctuations have been affected, and may continue to be affected, by foreign exchange, pricing, economic and external conditions, product launches, and seasonality.

alphabet2022and2023:22c466bc880bf9ecf38195c84702d663dec61f7a502308a3fc0ccf90124aeb3c · challenge

Original source, physical page 38

fluctuations in our revenues
have been, and may continue to be, affected by a combination of general factors, including:
• changes in foreign currency exchange rates;

• changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

• general economic conditions and various external dynamics, including geopolitical events, regulations, and other
measures and their effect on advertiser, consumer, and enterprise spending;
• new product and service launches; and
• seasonality.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Revenues and Monetization Metrics

We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers of all sizes with infrastructure and platform services as well as communication and collaboration
tools; sales of other products and services, such as apps and in-app purchases, and devices; and fees received for
consumer subscription-based products. For additional information on how we recognize revenue, see Note 1 of the Notes
to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

In addition to the long-term trends and their financial effect on our business discussed above, fluctuations in our revenues
have been, and may continue to be, affected by a combination of general factors, including:
• changes in foreign currency exchange rates;

• changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

• general economic conditions and various external dynamics, including geopolitical events, regulations, and other
measures and their effect on advertiser, consumer, and enterprise spending;
• new product and service launches; and
• seasonality.

Additionally, fluctuations in our revenues generated from advertising (“Google advertising”), revenues from other sources
(“Google subscriptions, platforms, and devices revenues”), Google Cloud, and Other Bets revenues have been, and may
continue to be, affected by other factors unique to each set of revenues, as described below.

Google Services

Google Services revenues consist of Google advertising as well as Google subscriptions, platforms, and devices revenues.

Google Advertising

Google advertising revenues are comprised of the following:

• Google Search & other, which includes revenues generated on Google search properties (including revenues from traffic
generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.), and
other Google owned and operated properties like Gmail, Google Maps, and Google Play;
• YouTube ads, which includes revenues generated on YouTube properties; and

• Google Network, which includes revenues generated on Google Network properties participating in AdMob, AdSense,
and Google Ad Manager.
We use certain metrics to track how well traffic across various properties is monetized as it relates to our advertising
revenues: paid clicks and cost-per-click pertain to traffic on Google Search & other properties, while impressions and
cost-per-impression pertain to traffic on our Google Network properties.

Paid clicks represent engagement by users and include clicks on advertisements by end-users on Google search properties
and other Google owned and operated properties including Gmail, Google Maps, and Google Play. Cost-per-click is
defined as click-driven revenues divided by our total number of paid clicks and represents the average amount we charge
advertisers for each engagement by users.
Impressions include impressions displayed to users on Google Network properties participating primarily in AdMob,
AdSense, and Google Ad Manager. Cost-per-impression is defined as impression-based and click-based revenues divided
by our total number of impressions, and represents the average amount we charge advertisers for each impression
displayed to users.
As our business evolves, we periodically review, refine, and update our methodologies for monitoring, gathering, and
counting the number of paid clicks and the number of impressions, and for identifying the revenues generated by the
corresponding click and impression activity.

28

Alphabet 2023 Annual Report

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2023 revenues were $307.4 billion, up 9% year over year, with Google Services up $19.0 billion and Google Cloud up $6.8 billion.

alphabet2022and2023:815b2e8c71fd4334deee628256859e9a9f2fafd6413b61ac12665f8323b0333a · reported_fact

Original source, physical page 41

Revenues were $307.4 billion, an increase of 9% year over year, primarily driven by an increase in Google Services
revenues of $19.0 billion, or 8%, and an increase in Google Cloud revenues of $6.8 billion, or 26%.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Provision for Income Taxes

Executive Overview

The following table summarizes our consolidated financial results (in millions, except for per share information and
percentages):
Year Ended December 31,
Consolidated revenues

2022

2023

$ Change

282,836

307,394

Cost of revenues

126,203

133,332

7,129

Operating income

74,842

84,293

9,451

Change in consolidated constant currency revenues

Operating expenses
Operating margin

(1)

Other income (expense), net

Diluted EPS

Net income

NM = Not Meaningful
(1)

81,791

26%

(3,514)

4.56

59,972

89,769

27%

1,424

5.80

73,795

24,558

% Change

10%

7,978

10%

13%

4,938

1.24

27%

13,823

23%

See “Use of Non-GAAP Constant Currency Information” below for details relating to our use of constant currency information.

• Revenues were $307.4 billion, an increase of 9% year over year, primarily driven by an increase in Google Services
revenues of $19.0 billion, or 8%, and an increase in Google Cloud revenues of $6.8 billion, or 26%.
• Total constant currency revenues, which exclude the effect of hedging, increased 10% year over year.

• Cost of revenues was $133.3 billion, an increase of 6% year over year, primarily driven by increases in content acquisition
costs, compensation expenses, and TAC. The increase in compensation expenses included charges related to employee
severance associated with the reduction in our workforce. Additionally, cost of revenues benefited from a reduction in
depreciation due to the change in estimated useful lives of our servers and network equipment.

• Operating expenses were $89.8 billion, an increase of 10% year over year, primarily driven by an increase in
compensation expenses and charges related to our office space optimization efforts. The increase in compensation
expenses was largely the result of charges related to employee severance associated with the reduction in our workforce
and an increase in SBC expense. Operating expenses benefited from the change in the estimated useful lives of our
servers and certain network equipment.

Other Information:

• In January 2023, we announced a reduction of our workforce, and as a result we recorded employee severance and
related charges of $2.1 billion for the year ended December 31, 2023. In addition, we are taking actions to optimize our
global office space. As a result, exit charges recorded during the year ended December 31, 2023, were $1.8 billion.
In addition to these exit charges, for the year ended December 31, 2023, we incurred $269 million in accelerated rent
and accelerated depreciation. For additional information, see Note 8 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.

Alphabet 2023 Annual Report

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Cost of revenues was $133.3 billion, up 6%, while operating expenses were $89.8 billion, up 10%, with severance and office optimization charges among the stated drivers.

alphabet2022and2023:5ddfc06b26c492a6eebda69a9cd7cae2fe5f298ceef58f14be7e3c439ffbb9e0 · reported_fact

Original source, physical page 41

Cost of revenues was $133.3 billion, an increase of 6% year over year, primarily driven by increases in content acquisition
costs, compensation expenses, and TAC. The increase in compensation expenses included charges related to employee
severance associated with the reduction in our workforce. Additionally, cost of revenues benefited from a reduction in
depreciation due to the change in estimated useful lives of our servers and network equipment.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Provision for Income Taxes

Executive Overview

The following table summarizes our consolidated financial results (in millions, except for per share information and
percentages):
Year Ended December 31,
Consolidated revenues

2022

2023

$ Change

282,836

307,394

Cost of revenues

126,203

133,332

7,129

Operating income

74,842

84,293

9,451

Change in consolidated constant currency revenues

Operating expenses
Operating margin

(1)

Other income (expense), net

Diluted EPS

Net income

NM = Not Meaningful
(1)

81,791

26%

(3,514)

4.56

59,972

89,769

27%

1,424

5.80

73,795

24,558

% Change

10%

7,978

10%

13%

4,938

1.24

27%

13,823

23%

See “Use of Non-GAAP Constant Currency Information” below for details relating to our use of constant currency information.

Other Information:

Alphabet 2023 Annual Report

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Alphabet recorded $2.1 billion of employee severance and related charges, $1.8 billion of office space exit charges, and $269 million of accelerated rent and depreciation in 2023.

alphabet2022and2023:6e6f3d5fb9aef35c7485577f5dbac90f471599070e26b03c57ea6eeda51185a6 · reported_fact

Original source, physical page 41

In January 2023, we announced a reduction of our workforce, and as a result we recorded employee severance and
related charges of $2.1 billion for the year ended December 31, 2023. In addition, we are taking actions to optimize our
global office space. As a result, exit charges recorded during the year ended December 31, 2023, were $1.8 billion.
In addition to these exit charges, for the year ended December 31, 2023, we incurred $269 million in accelerated rent
and accelerated depreciation.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Provision for Income Taxes

Executive Overview

The following table summarizes our consolidated financial results (in millions, except for per share information and
percentages):
Year Ended December 31,
Consolidated revenues

2022

2023

$ Change

282,836

307,394

Cost of revenues

126,203

133,332

7,129

Operating income

74,842

84,293

9,451

Change in consolidated constant currency revenues

Operating expenses
Operating margin

(1)

Other income (expense), net

Diluted EPS

Net income

NM = Not Meaningful
(1)

81,791

26%

(3,514)

4.56

59,972

89,769

27%

1,424

5.80

73,795

24,558

% Change

10%

7,978

10%

13%

4,938

1.24

27%

13,823

23%

See “Use of Non-GAAP Constant Currency Information” below for details relating to our use of constant currency information.

Other Information:

Alphabet 2023 Annual Report

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The estimated useful lives of servers and certain network equipment were changed to six years, reducing 2023 depreciation expense by $3.9 billion.

alphabet2022and2023:caeb9aba277af0ca9512433a0a2c81f4e884b78bb1302a42cfeef4227d397bb9 · reported_fact

Original source, physical page 42

In January 2023, we completed an assessment of the useful lives of our servers and network equipment, resulting in a
change in the estimated useful life of our servers and certain network equipment to six years. The effect of this change
was a reduction in depreciation expense of $3.9 billion for the year ended December 31, 2023, recognized primarily
in cost of revenues and R&D expenses.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

• In January 2023, we completed an assessment of the useful lives of our servers and network equipment, resulting in a
change in the estimated useful life of our servers and certain network equipment to six years. The effect of this change
was a reduction in depreciation expense of $3.9 billion for the year ended December 31, 2023, recognized primarily
in cost of revenues and R&D expenses. For additional information, see Note 1 of the Notes to Consolidated Financial
Statements included in Item 8 of this Annual Report on Form 10-K.

• On July 21, 2023, the IRS announced a rule change allowing taxpayers to temporarily apply the regulations in effect prior
to 2022 related to U.S. federal foreign tax credits. This announcement applies to foreign taxes paid or accrued in the
fiscal years 2022 and 2023. A cumulative one-time adjustment applicable to the prior period for this tax rule change was
recorded in 2023 and is reflected in our effective tax rate of 13.9% for the year ended December 31, 2023.
• Repurchases of Class A and Class C shares were $62.2 billion for the year ended December 31, 2023. For additional
information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on
Form 10-K.
• Operating cash flow was $101.7 billion for the year ended December 31, 2023.

• Capital expenditures, which primarily reflected investments in technical infrastructure, were $32.3 billion for the year
ended December 31, 2023.
• As of December 31, 2023, we had 182,502 employees.

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

Google Cloud

2023

175,033

31,510
31,312

224,473

237,855

253,528

272,543

1,068

1,527

34,688

26,280

Other Bets

Google Services

29,243

29,055

Google Services total

Total revenues

162,450
32,780

Google advertising

Hedging gains (losses)

2022

1,960

282,836

33,088

236

307,394

Google advertising revenues
Google Search & other

Google Search & other revenues increased $12.6 billion from 2022 to 2023. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

YouTube ads

YouTube ads revenues increased $2.3 billion from 2022 to 2023. The growth was driven by our brand and direct response
advertising products, both of which benefited from increased spending by our advertisers.

Google Network

Google Network revenues decreased $1.5 billion from 2022 to 2023, primarily driven by a decrease in Google Ad Manager
and AdSense revenues.
32

Alphabet 2023 Annual Report

Unchanged extraction record

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  "excerpt": "In January 2023, we completed an assessment of the useful lives of our servers and network equipment, resulting in a\nchange in the estimated useful life of our servers and certain network equipment to six years. The effect of this change\nwas a reduction in depreciation expense of $3.9 billion for the year ended December 31, 2023, recognized primarily\nin cost of revenues and R&D expenses.",
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Alphabet repurchased and retired $62.2 billion of Class A and Class C shares during 2023.

alphabet2022and2023:d8dbd7c64ea27ee7a2779f232b2c113f0ed7f748fd2273e44bb1580359c7d7f4 · reported_fact

Original source, physical page 42

Repurchases of Class A and Class C shares were $62.2 billion for the year ended December 31, 2023.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

Google Cloud

2023

175,033

31,510
31,312

224,473

237,855

253,528

272,543

1,068

1,527

34,688

26,280

Other Bets

Google Services

29,243

29,055

Google Services total

Total revenues

162,450
32,780

Google advertising

Hedging gains (losses)

2022

1,960

282,836

33,088

236

307,394

Google advertising revenues
Google Search & other

YouTube ads

Google Network

Google Network revenues decreased $1.5 billion from 2022 to 2023, primarily driven by a decrease in Google Ad Manager
and AdSense revenues.
32

Alphabet 2023 Annual Report

Unchanged extraction record

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Google Search and other revenues increased $12.6 billion, attributed to higher search queries, advertiser spending, and ad format and delivery improvements.

alphabet2022and2023:fbaa01bde10db83e06f16763f678a69fcac0dc97074bed40df0b1d3fe36da777 · reported_fact

Original source, physical page 42

Google Search & other revenues increased $12.6 billion from 2022 to 2023. The overall growth was driven by interrelated
factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in
advertiser spending; and improvements we have made in ad formats and delivery.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

Google Cloud

2023

175,033

31,510
31,312

224,473

237,855

253,528

272,543

1,068

1,527

34,688

26,280

Other Bets

Google Services

29,243

29,055

Google Services total

Total revenues

162,450
32,780

Google advertising

Hedging gains (losses)

2022

1,960

282,836

33,088

236

307,394

Google advertising revenues
Google Search & other

YouTube ads

Google Network

Google Network revenues decreased $1.5 billion from 2022 to 2023, primarily driven by a decrease in Google Ad Manager
and AdSense revenues.
32

Alphabet 2023 Annual Report

Unchanged extraction record

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YouTube ads revenues increased $2.3 billion, driven by brand and direct response advertising products and increased advertiser spending.

alphabet2022and2023:54fbfd6d4b5322655d16ba0e94e186c8930214ade9c165dbadb4f448ab0bd44f · reported_fact

Original source, physical page 42

YouTube ads revenues increased $2.3 billion from 2022 to 2023. The growth was driven by our brand and direct response
advertising products, both of which benefited from increased spending by our advertisers.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

Google Cloud

2023

175,033

31,510
31,312

224,473

237,855

253,528

272,543

1,068

1,527

34,688

26,280

Other Bets

Google Services

29,243

29,055

Google Services total

Total revenues

162,450
32,780

Google advertising

Hedging gains (losses)

2022

1,960

282,836

33,088

236

307,394

Google advertising revenues
Google Search & other

YouTube ads

Google Network

Google Network revenues decreased $1.5 billion from 2022 to 2023, primarily driven by a decrease in Google Ad Manager
and AdSense revenues.
32

Alphabet 2023 Annual Report

Unchanged extraction record

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  "excerpt": "YouTube ads revenues increased $2.3 billion from 2022 to 2023. The growth was driven by our brand and direct response\nadvertising products, both of which benefited from increased spending by our advertisers.",
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Google Network revenues decreased $1.5 billion, primarily because of lower Google Ad Manager and AdSense revenues.

alphabet2022and2023:8a31282bd2345a8642369867f79b3f1dab142f6098f8ebefe700a920516234ba · reported_fact

Original source, physical page 42

Google Network revenues decreased $1.5 billion from 2022 to 2023, primarily driven by a decrease in Google Ad Manager
and AdSense revenues.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Financial Results
Revenues

The following table presents revenues by type (in millions):
Year Ended December 31,
Google Search & other
YouTube ads

Google Network

Google subscriptions, platforms, and devices

Google Cloud

2023

175,033

31,510
31,312

224,473

237,855

253,528

272,543

1,068

1,527

34,688

26,280

Other Bets

Google Services

29,243

29,055

Google Services total

Total revenues

162,450
32,780

Google advertising

Hedging gains (losses)

2022

1,960

282,836

33,088

236

307,394

Google advertising revenues
Google Search & other

YouTube ads

Google Network

Google Network revenues decreased $1.5 billion from 2022 to 2023, primarily driven by a decrease in Google Ad Manager
and AdSense revenues.
32

Alphabet 2023 Annual Report

Unchanged extraction record

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  "excerpt": "Google Network revenues decreased $1.5 billion from 2022 to 2023, primarily driven by a decrease in Google Ad Manager\nand AdSense revenues.",
  "page": 42,
  "section": "Google Network",
  "target_date": null,
  "numeric_target": "$1.5 billion decrease",
  "unit": "USD",
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From 2022 to 2023, paid clicks increased 7%, cost per click increased 1%, impressions decreased 5%, and cost per impression was unchanged.

alphabet2022and2023:18349d8c43441bcb6ff7a464b85de3cda47fd52e7c893993e00ea7a14d707155 · reported_fact

Original source, physical page 43

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click)
and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from 2022 to 2023:
Google Search & other
Paid clicks change

7%

Cost-per-click change

1%

Google Network

Impressions change

(5)%

Cost-per-impression change

0%

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click)
and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from 2022 to 2023:
Google Search & other
Paid clicks change

7%

Cost-per-click change

1%

Google Network

Impressions change

(5)%

Cost-per-impression change

0%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $5.6 billion from 2022 to 2023 primarily driven by
growth in subscriptions, largely for YouTube services. The growth in YouTube services was primarily due to an increase in
paid subscribers.

Google subscriptions, platforms, and devices revenues increased $1.0 billion from 2021 to 2022 primarily driven by growth
in subscription and device revenues, partially offset by a decrease in platform revenues. The growth in subscriptions was
largely for YouTube services, primarily due to an increase in paid subscribers. The growth in device revenues was primarily
driven by increased sales of Pixel devices. The decrease in platform revenues was primarily due to Google Play, driven by
the fee structure changes we announced in 2021 as well as a decrease in buyer spending. Additionally, the overall increase
in Google subscriptions, platforms, and devices revenues was adversely affected by the unfavorable effect of foreign
currency exchange rates.

Google Cloud

Google Cloud revenues increased $6.8 billion from 2022 to 2023. Growth was primarily driven by Google Cloud Platform
followed by Google Workspace offerings. Google Cloud’s infrastructure and platform services were the largest drivers of
growth in Google Cloud Platform.

Revenues by Geography

The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of
our customers:
Year Ended December 31,
United States
EMEA
APAC

Other Americas

Hedging gains (losses)

2022

2023

29%

30%

48%
16%
6%
1%

47%
17%

6%
0%

For additional information, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.
Alphabet 2023 Annual Report

33

Unchanged extraction record

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  "category": "reported_fact",
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  "excerpt": "The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click)\nand Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from 2022 to 2023:\nGoogle Search & other\nPaid clicks change\n\n7%\n\nCost-per-click change\n\n1%\n\nGoogle Network\n\nImpressions change\n\n(5)%\n\nCost-per-impression change\n\n0%",
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Google subscriptions, platforms, and devices revenues increased $5.6 billion, primarily from subscription growth and higher YouTube paid subscribers.

alphabet2022and2023:7628482b310e275c3add8103a710f19b4de68d18a1f61294dd85a77eb4ad96e9 · reported_fact

Original source, physical page 43

Google subscriptions, platforms, and devices revenues increased $5.6 billion from 2022 to 2023 primarily driven by
growth in subscriptions, largely for YouTube services. The growth in YouTube services was primarily due to an increase in
paid subscribers.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click)
and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from 2022 to 2023:
Google Search & other
Paid clicks change

7%

Cost-per-click change

1%

Google Network

Impressions change

(5)%

Cost-per-impression change

0%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $5.6 billion from 2022 to 2023 primarily driven by
growth in subscriptions, largely for YouTube services. The growth in YouTube services was primarily due to an increase in
paid subscribers.

Google subscriptions, platforms, and devices revenues increased $1.0 billion from 2021 to 2022 primarily driven by growth
in subscription and device revenues, partially offset by a decrease in platform revenues. The growth in subscriptions was
largely for YouTube services, primarily due to an increase in paid subscribers. The growth in device revenues was primarily
driven by increased sales of Pixel devices. The decrease in platform revenues was primarily due to Google Play, driven by
the fee structure changes we announced in 2021 as well as a decrease in buyer spending. Additionally, the overall increase
in Google subscriptions, platforms, and devices revenues was adversely affected by the unfavorable effect of foreign
currency exchange rates.

Google Cloud

Google Cloud revenues increased $6.8 billion from 2022 to 2023. Growth was primarily driven by Google Cloud Platform
followed by Google Workspace offerings. Google Cloud’s infrastructure and platform services were the largest drivers of
growth in Google Cloud Platform.

Revenues by Geography

The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of
our customers:
Year Ended December 31,
United States
EMEA
APAC

Other Americas

Hedging gains (losses)

2022

2023

29%

30%

48%
16%
6%
1%

47%
17%

6%
0%

For additional information, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.
Alphabet 2023 Annual Report

33

Unchanged extraction record

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  "excerpt": "Google subscriptions, platforms, and devices revenues increased $5.6 billion from 2022 to 2023 primarily driven by\ngrowth in subscriptions, largely for YouTube services. The growth in YouTube services was primarily due to an increase in\npaid subscribers.",
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  "section": "Google subscriptions, platforms, and devices",
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Google Cloud revenues increased $6.8 billion, primarily driven by Google Cloud Platform and Google Workspace, with infrastructure and platform services the largest Google Cloud Platform growth drivers.

alphabet2022and2023:bea8064dffbc99789250bad265452b495efe19701bcf5364ae8b6174092e0c08 · reported_fact

Original source, physical page 43

Google Cloud revenues increased $6.8 billion from 2022 to 2023. Growth was primarily driven by Google Cloud Platform
followed by Google Workspace offerings. Google Cloud’s infrastructure and platform services were the largest drivers of
growth in Google Cloud Platform.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Monetization Metrics

The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click)
and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from 2022 to 2023:
Google Search & other
Paid clicks change

7%

Cost-per-click change

1%

Google Network

Impressions change

(5)%

Cost-per-impression change

0%

Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in advertiser
spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search queries resulting from
changes in user adoption and usage, primarily on mobile devices.
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product and policy changes, product mix, property mix, and
changes in foreign currency exchange rates.

Google subscriptions, platforms, and devices

Google subscriptions, platforms, and devices revenues increased $5.6 billion from 2022 to 2023 primarily driven by
growth in subscriptions, largely for YouTube services. The growth in YouTube services was primarily due to an increase in
paid subscribers.

Google subscriptions, platforms, and devices revenues increased $1.0 billion from 2021 to 2022 primarily driven by growth
in subscription and device revenues, partially offset by a decrease in platform revenues. The growth in subscriptions was
largely for YouTube services, primarily due to an increase in paid subscribers. The growth in device revenues was primarily
driven by increased sales of Pixel devices. The decrease in platform revenues was primarily due to Google Play, driven by
the fee structure changes we announced in 2021 as well as a decrease in buyer spending. Additionally, the overall increase
in Google subscriptions, platforms, and devices revenues was adversely affected by the unfavorable effect of foreign
currency exchange rates.

Google Cloud

Google Cloud revenues increased $6.8 billion from 2022 to 2023. Growth was primarily driven by Google Cloud Platform
followed by Google Workspace offerings. Google Cloud’s infrastructure and platform services were the largest drivers of
growth in Google Cloud Platform.

Revenues by Geography

The following table presents revenues by geography as a percentage of revenues, determined based on the addresses of
our customers:
Year Ended December 31,
United States
EMEA
APAC

Other Americas

Hedging gains (losses)

2022

2023

29%

30%

48%
16%
6%
1%

47%
17%

6%
0%

For additional information, see Note 2 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.
Alphabet 2023 Annual Report

33

Unchanged extraction record

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  "summary": "Google Cloud revenues increased $6.8 billion, primarily driven by Google Cloud Platform and Google Workspace, with infrastructure and platform services the largest Google Cloud Platform growth drivers.",
  "excerpt": "Google Cloud revenues increased $6.8 billion from 2022 to 2023. Growth was primarily driven by Google Cloud Platform\nfollowed by Google Workspace offerings. Google Cloud’s infrastructure and platform services were the largest drivers of\ngrowth in Google Cloud Platform.",
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Total constant currency revenues were $309.1 billion for 2023, compared with $280.9 billion of 2022 revenues excluding hedging effects.

alphabet2022and2023:8b057cf7d9208761a8a069be416b421bbc7c4d51b0b4fe66bc98ef2cf0a81500 · reported_fact

Original source, physical page 44

Total constant currency revenues of $309.1 billion for 2023 increased $28.2 billion compared to $280.9 billion in revenues, excluding
hedging effect, for 2022.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Use of Non-GAAP Constant Currency Information

International revenues, which represent a significant portion of our revenues, are generally transacted in multiple
currencies and therefore are affected by fluctuations in foreign currency exchange rates.

The effect of currency exchange rates on our business is an important factor in understanding period-to-period
comparisons. We use non-GAAP constant currency revenues (“constant currency revenues”) and non-GAAP percentage
change in constant currency revenues (“percentage change in constant currency revenues”) for financial and operational
decision-making and as a means to evaluate period-to-period comparisons. We believe the presentation of results on a
constant currency basis in addition to U.S. Generally Accepted Accounting Principles (GAAP) results helps improve the
ability to understand our performance, because it excludes the effects of foreign currency volatility that are not indicative
of our core operating results.
Constant currency information compares results between periods as if exchange rates had remained constant period
over period. We define constant currency revenues as revenues excluding the effect of foreign currency exchange rate
movements (“FX Effect”) as well as hedging activities, which are recognized at the consolidated level. We use constant
currency revenues to determine the constant currency revenue percentage change on a year-on-year basis. Constant
currency revenues are calculated by translating current period revenues using prior year comparable period exchange
rates, as well as excluding any hedging effects realized in the current period.

Constant currency revenue percentage change is calculated by determining the change in current period revenues over
prior year comparable period revenues where current period foreign currency revenues are translated using prior year
comparable period exchange rates and hedging effects are excluded from revenues of both periods.
These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP.
Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by
other companies and are not a measure of performance presented in accordance with GAAP.

The following table presents the foreign currency exchange effect on international revenues and total revenues (in millions,
except percentages):
Year Ended December 31, 2023

2023

Less FX
Effect

As
Reported

91,038

460

90,578

11%

18,974

Year Ended December 31,
United States

EMEA
APAC

Total revenues

(1)

82,062

146,286 $

0 $

51,514

(1,759)

280,876

307,158

(1,953)

1,960

236

16,976

Revenues, excluding
hedging effect
(1)

134,814
47,024

Other Americas

Hedging gains (losses)

2022

282,836

18,320

% Change from Prior Period

Constant
Currency
Revenues

307,394

146,286
53,273

(654)

309,111

Less
Hedging
Effect

Less FX
Effect

Constant
Currency
Revenues

10%

(4)%

12%

10%

(3)%

(1)%

13%
10%

10%

Total constant currency revenues of $309.1 billion for 2023 increased $28.2 billion compared to $280.9 billion in revenues, excluding
hedging effect, for 2022.

EMEA revenue growth was favorably affected by changes in foreign currency exchange rates, primarily due to the
U.S. dollar weakening relative to the Euro, partially offset by the U.S. dollar strengthening relative to the Turkish lira.

APAC revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the
U.S. dollar strengthening relative to the Japanese yen.

Other Americas revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to
the U.S. dollar strengthening relative to the Argentine peso.
34

Alphabet 2023 Annual Report

Unchanged extraction record

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  "excerpt": "Total constant currency revenues of $309.1 billion for 2023 increased $28.2 billion compared to $280.9 billion in revenues, excluding\nhedging effect, for 2022.",
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Research and development expenses increased $5.9 billion to $45.4 billion, or 15% of revenues, with compensation, office optimization, and depreciation among the stated drivers.

alphabet2022and2023:61691a279773c33e4c787d18582ce7f0ef82bf7eacacbf07420b8bf54502698f · reported_fact

Original source, physical page 45

R&D expenses increased $5.9 billion from 2022 to 2023 primarily driven by an increase in compensation expenses of
$2.9 billion, $870 million in charges related to our office space optimization efforts, and an increase in depreciation
expense of $722 million.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

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Part III

Part IV

Costs and Expenses
Cost of Revenues

The following table presents cost of revenues, including TAC (in millions, except percentages):

TAC

$

Total cost of revenues

$

Other cost of revenues
Total cost of revenues as a percentage of revenues

2021

Year Ended December 31,
2022

2023

45,566

$

48,955

$

50,886

110,939

$

126,203

$

133,332

65,373

43%

77,248
45%

82,446
43%

Cost of revenues increased $7.1 billion from 2022 to 2023 due to an increase in other cost of revenues and TAC of
$5.2 billion and $1.9 billion, respectively.

The increase in TAC from 2022 to 2023 was largely due to an increase in TAC paid to distribution partners, primarily driven
by growth in revenues subject to TAC. The TAC rate decreased from 21.8% to 21.4% from 2022 to 2023 primarily due to a
revenue mix shift from Google Network properties to Google Search & other properties. The TAC rate on Google Search &
other revenues and the TAC rate on Google Network revenues were both substantially consistent from 2022 to 2023.
The increase in other cost of revenues from 2022 to 2023 was primarily due to increases in content acquisition costs,
largely for YouTube, and compensation expenses, which included $479 million of charges related to employee severance
associated with the reduction in our workforce. Additionally, other cost of revenues benefited from a reduction in
depreciation expense due to the change in estimated useful lives of our servers and network equipment.
The increase in other cost of revenues of $11.9 billion from 2021 to 2022 was primarily due to increases in device costs,
compensation expenses, depreciation, and equipment-related expenses.

Research and Development

The following table presents R&D expenses (in millions, except percentages):
Year Ended December 31,
Research and development expenses

Research and development expenses as a percentage of revenues

$

2022

39,500

14%

$

2023

45,427

15%

R&D expenses increased $5.9 billion from 2022 to 2023 primarily driven by an increase in compensation expenses of
$2.9 billion, $870 million in charges related to our office space optimization efforts, and an increase in depreciation
expense of $722 million. The $2.9 billion increase in compensation expenses was largely the result of a 4% increase in
average headcount, after adjusting for roles affected by the reduction in our workforce, and an increase in SBC expense.
Additionally, the increase in compensation expenses included $848 million in employee severance charges associated with
the reduction in our workforce. The $722 million increase in depreciation expense reflected an offsetting benefit of the
change in the estimated useful lives of our servers and network equipment.

Alphabet 2023 Annual Report

35

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  "excerpt": "R&D expenses increased $5.9 billion from 2022 to 2023 primarily driven by an increase in compensation expenses of\n$2.9 billion, $870 million in charges related to our office space optimization efforts, and an increase in depreciation\nexpense of $722 million.",
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Sales and marketing expenses increased $1.4 billion, primarily from a $1.6 billion increase in compensation expenses partially offset by a $441 million decrease in advertising and promotional activities.

alphabet2022and2023:0dca8efaa57d64d96d3b11ee2a0b1dd29312f95563a3e93c422fb06bc3aecd5b · reported_fact

Original source, physical page 46

Sales and marketing expenses increased $1.4 billion from 2022 to 2023, primarily driven by an increase in compensation
expenses of $1.6 billion, partially offset by a decrease in advertising and promotional activities of $441 million.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Sales and Marketing

The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
Sales and marketing expenses

Sales and marketing expenses as a percentage of revenues

$

2022

26,567

9%

$

2023

27,917

9%

Sales and marketing expenses increased $1.4 billion from 2022 to 2023, primarily driven by an increase in compensation
expenses of $1.6 billion, partially offset by a decrease in advertising and promotional activities of $441 million. The
$1.6 billion increase in compensation expenses was largely the result of $497 million in employee severance charges
associated with the reduction in our workforce in addition to a combination of other factors, none of which were individually
significant.

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
General and administrative expenses

General and administrative expenses as a percentage of revenues

$

2022

15,724

6%

2023

$

16,425

General and administrative expenses increased $701 million from 2022 to 2023, primarily driven by an increase in
compensation expenses of $416 million, which was largely the result of $264 million in employee severance charges
associated with the reduction in our workforce in addition to a combination of other factors, none of which were
individually significant.

5%

Segment Profitability

The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2022

Operating income (loss):
Google Services

$

Google Cloud
Other Bets

Alphabet-level activities

(1,922)

$

(4,636)

(1)

Total income from operations

(1)

82,699

$

(1,299)

74,842

2023
95,858

1,716

(4,095)

$

(9,186)

84,293

In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $2.0 billion and $236 million
in 2022 and 2023, respectively. For the year ended December 31, 2023, Alphabet-level activities include charges related to the reduction
in force and our office space optimization efforts totaling $3.9 billion. In addition, for the year ended December 31, 2023, we incurred
$269 million in accelerated rent and accelerated depreciation. For additional information relating to our workforce reduction and other
initiatives, see Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. For
additional information relating to our segments, see Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Google Services

Google Services operating income increased $13.2 billion from 2022 to 2023. The increase in operating income was
primarily driven by an increase in revenues, partially offset by an increase in content acquisition costs and compensation
expenses including an increase in SBC expense. Additionally, operating income benefited from a reduction in costs driven
by the change in the estimated useful lives of our servers and certain network equipment.
36

Alphabet 2023 Annual Report

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General and administrative expenses increased $701 million, primarily from a $416 million increase in compensation expenses.

alphabet2022and2023:f50b1653ba5927aa9c3d248bc5e1b5d066cefad2c954a478ed13b756faeb8301 · reported_fact

Original source, physical page 46

General and administrative expenses increased $701 million from 2022 to 2023, primarily driven by an increase in
compensation expenses of $416 million, which was largely the result of $264 million in employee severance charges
associated with the reduction in our workforce in addition to a combination of other factors, none of which were
individually significant.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Sales and Marketing

The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
Sales and marketing expenses

Sales and marketing expenses as a percentage of revenues

$

2022

26,567

9%

$

2023

27,917

9%

Sales and marketing expenses increased $1.4 billion from 2022 to 2023, primarily driven by an increase in compensation
expenses of $1.6 billion, partially offset by a decrease in advertising and promotional activities of $441 million. The
$1.6 billion increase in compensation expenses was largely the result of $497 million in employee severance charges
associated with the reduction in our workforce in addition to a combination of other factors, none of which were individually
significant.

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
General and administrative expenses

General and administrative expenses as a percentage of revenues

$

2022

15,724

6%

2023

$

16,425

General and administrative expenses increased $701 million from 2022 to 2023, primarily driven by an increase in
compensation expenses of $416 million, which was largely the result of $264 million in employee severance charges
associated with the reduction in our workforce in addition to a combination of other factors, none of which were
individually significant.

5%

Segment Profitability

The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2022

Operating income (loss):
Google Services

$

Google Cloud
Other Bets

Alphabet-level activities

(1,922)

$

(4,636)

(1)

Total income from operations

(1)

82,699

$

(1,299)

74,842

2023
95,858

1,716

(4,095)

$

(9,186)

84,293

In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $2.0 billion and $236 million
in 2022 and 2023, respectively. For the year ended December 31, 2023, Alphabet-level activities include charges related to the reduction
in force and our office space optimization efforts totaling $3.9 billion. In addition, for the year ended December 31, 2023, we incurred
$269 million in accelerated rent and accelerated depreciation. For additional information relating to our workforce reduction and other
initiatives, see Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. For
additional information relating to our segments, see Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Google Services

Google Services operating income increased $13.2 billion from 2022 to 2023. The increase in operating income was
primarily driven by an increase in revenues, partially offset by an increase in content acquisition costs and compensation
expenses including an increase in SBC expense. Additionally, operating income benefited from a reduction in costs driven
by the change in the estimated useful lives of our servers and certain network equipment.
36

Alphabet 2023 Annual Report

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Google Services operating income increased $13.2 billion from 2022 to 2023.

alphabet2022and2023:35f6c8975850f6502890c9b03ba46f7d60f3786f790fb6b88cd6e2cc7d9d5906 · reported_fact

Original source, physical page 46

Google Services operating income increased $13.2 billion from 2022 to 2023. The increase in operating income was
primarily driven by an increase in revenues, partially offset by an increase in content acquisition costs and compensation
expenses including an increase in SBC expense.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Sales and Marketing

The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
Sales and marketing expenses

Sales and marketing expenses as a percentage of revenues

$

2022

26,567

9%

$

2023

27,917

9%

Sales and marketing expenses increased $1.4 billion from 2022 to 2023, primarily driven by an increase in compensation
expenses of $1.6 billion, partially offset by a decrease in advertising and promotional activities of $441 million. The
$1.6 billion increase in compensation expenses was largely the result of $497 million in employee severance charges
associated with the reduction in our workforce in addition to a combination of other factors, none of which were individually
significant.

General and Administrative

The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
General and administrative expenses

General and administrative expenses as a percentage of revenues

$

2022

15,724

6%

2023

$

16,425

General and administrative expenses increased $701 million from 2022 to 2023, primarily driven by an increase in
compensation expenses of $416 million, which was largely the result of $264 million in employee severance charges
associated with the reduction in our workforce in addition to a combination of other factors, none of which were
individually significant.

5%

Segment Profitability

The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2022

Operating income (loss):
Google Services

$

Google Cloud
Other Bets

Alphabet-level activities

(1,922)

$

(4,636)

(1)

Total income from operations

(1)

82,699

$

(1,299)

74,842

2023
95,858

1,716

(4,095)

$

(9,186)

84,293

In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $2.0 billion and $236 million
in 2022 and 2023, respectively. For the year ended December 31, 2023, Alphabet-level activities include charges related to the reduction
in force and our office space optimization efforts totaling $3.9 billion. In addition, for the year ended December 31, 2023, we incurred
$269 million in accelerated rent and accelerated depreciation. For additional information relating to our workforce reduction and other
initiatives, see Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. For
additional information relating to our segments, see Note 15 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Google Services

Google Services operating income increased $13.2 billion from 2022 to 2023. The increase in operating income was
primarily driven by an increase in revenues, partially offset by an increase in content acquisition costs and compensation
expenses including an increase in SBC expense. Additionally, operating income benefited from a reduction in costs driven
by the change in the estimated useful lives of our servers and certain network equipment.
36

Alphabet 2023 Annual Report

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  "category": "reported_fact",
  "summary": "Google Services operating income increased $13.2 billion from 2022 to 2023.",
  "excerpt": "Google Services operating income increased $13.2 billion from 2022 to 2023. The increase in operating income was\nprimarily driven by an increase in revenues, partially offset by an increase in content acquisition costs and compensation\nexpenses including an increase in SBC expense.",
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Google Cloud reported $1.7 billion of operating income in 2023 compared with a $1.9 billion operating loss in 2022.

alphabet2022and2023:4d316c8c66a6b6d2a98929c497e568b5891b5a49fc9b12ea2e730c972ed6374b · reported_fact

Original source, physical page 47

Google Cloud operating income of $1.7 billion for 2023 compared to an operating loss of $1.9 billion for 2022 represents an
increase of $3.6 billion.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Google Cloud

Google Cloud operating income of $1.7 billion for 2023 compared to an operating loss of $1.9 billion for 2022 represents an
increase of $3.6 billion. The increase in operating income was primarily driven by an increase in revenues, partially offset by
an increase in compensation expenses largely driven by headcount growth. Additionally, operating income benefited from a
reduction in costs driven by the change in the estimated useful lives of our servers and certain network equipment.

Other Bets

Other Bets operating loss decreased $541 million from 2022 to 2023 primarily due to growth in revenues as well as a
reduction in valuation-based compensation liabilities related to Other Bet companies.

Other Income (Expense), Net

The following table presents OI&E, (in millions):
Year Ended December 31,
Interest income

Interest expense

$

Foreign currency exchange gain (loss), net
Gain (loss) on debt securities, net

Performance fees

(357)

$

3,865

(308)

(1,238)

(3,455)

392

(1,215)
257

(337)
$

2023

(654)

798

Income (loss) and impairment from equity method investments, net
Other income (expense), net

2,174

(2,064)

Gain (loss) on equity securities, net

Other

2022

381

(3,514)

(628)
$

299

1,424

OI&E, net increased $4.9 billion from 2022 to 2023. The increase was primarily due to fluctuations in the value of equity
securities reflecting market driven changes in the value of our marketable equity securities, investment specific event
driven changes in our non-marketable equity securities, and increased interest income due to interest rates.

For additional information, see Note 7 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Provision for Income Taxes

The following table presents provision for income taxes (in millions, except for effective tax rate):
Year Ended December 31,
Income before provision for income taxes
Provision for income taxes
Effective tax rate

$
$

2022

71,328
11,356

15.9%

$
$

2023

85,717
11,922

13.9%

In 2023, the Internal Revenue Services (IRS) issued a rule change allowing taxpayers to temporarily apply the regulations
in effect prior to 2022 related to U.S. federal foreign tax credits, as well as a separate rule change with interim guidance on
the capitalization and amortization of R&D expenses. A cumulative one-time adjustment applicable to the prior period for
these tax rule changes was recorded in 2023.
The effective tax rate decreased from 2022 to 2023, reflecting the effect of the two tax rule changes described above,
particularly the change related to foreign tax credits. The effect of these tax rule changes was partially offset by changes
in uncertain tax benefits and a decrease in the U.S. federal Foreign Derived Intangible Income tax deduction.

Alphabet 2023 Annual Report

37

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  "excerpt": "Google Cloud operating income of $1.7 billion for 2023 compared to an operating loss of $1.9 billion for 2022 represents an\nincrease of $3.6 billion.",
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Other Bets operating loss decreased $541 million from 2022 to 2023, attributed to revenue growth and lower valuation-based compensation liabilities.

alphabet2022and2023:6b04aa6e76fac01153130d5030c6d2892f984dbf77df2035903913af4ece343d · reported_fact

Original source, physical page 47

Other Bets operating loss decreased $541 million from 2022 to 2023 primarily due to growth in revenues as well as a
reduction in valuation-based compensation liabilities related to Other Bet companies.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Google Cloud

Google Cloud operating income of $1.7 billion for 2023 compared to an operating loss of $1.9 billion for 2022 represents an
increase of $3.6 billion. The increase in operating income was primarily driven by an increase in revenues, partially offset by
an increase in compensation expenses largely driven by headcount growth. Additionally, operating income benefited from a
reduction in costs driven by the change in the estimated useful lives of our servers and certain network equipment.

Other Bets

Other Bets operating loss decreased $541 million from 2022 to 2023 primarily due to growth in revenues as well as a
reduction in valuation-based compensation liabilities related to Other Bet companies.

Other Income (Expense), Net

The following table presents OI&E, (in millions):
Year Ended December 31,
Interest income

Interest expense

$

Foreign currency exchange gain (loss), net
Gain (loss) on debt securities, net

Performance fees

(357)

$

3,865

(308)

(1,238)

(3,455)

392

(1,215)
257

(337)
$

2023

(654)

798

Income (loss) and impairment from equity method investments, net
Other income (expense), net

2,174

(2,064)

Gain (loss) on equity securities, net

Other

2022

381

(3,514)

(628)
$

299

1,424

OI&E, net increased $4.9 billion from 2022 to 2023. The increase was primarily due to fluctuations in the value of equity
securities reflecting market driven changes in the value of our marketable equity securities, investment specific event
driven changes in our non-marketable equity securities, and increased interest income due to interest rates.

For additional information, see Note 7 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

Provision for Income Taxes

The following table presents provision for income taxes (in millions, except for effective tax rate):
Year Ended December 31,
Income before provision for income taxes
Provision for income taxes
Effective tax rate

$
$

2022

71,328
11,356

15.9%

$
$

2023

85,717
11,922

13.9%

In 2023, the Internal Revenue Services (IRS) issued a rule change allowing taxpayers to temporarily apply the regulations
in effect prior to 2022 related to U.S. federal foreign tax credits, as well as a separate rule change with interim guidance on
the capitalization and amortization of R&D expenses. A cumulative one-time adjustment applicable to the prior period for
these tax rule changes was recorded in 2023.
The effective tax rate decreased from 2022 to 2023, reflecting the effect of the two tax rule changes described above,
particularly the change related to foreign tax credits. The effect of these tax rule changes was partially offset by changes
in uncertain tax benefits and a decrease in the U.S. federal Foreign Derived Intangible Income tax deduction.

Alphabet 2023 Annual Report

37

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Alphabet expects its effective tax rate and cash tax payments could increase in future years as more jurisdictions enact global minimum tax legislation.

alphabet2022and2023:9a0fea52a73b0e1c424840619deb2e73acb1c9dda34711ec592294e8e0e4e623 · forecast

Original source, physical page 48

As additional jurisdictions enact such legislation, we expect our
effective tax rate and cash tax payments could increase in future years.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

The OECD is coordinating negotiations among more than 140 countries with the goal of achieving consensus around
substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of
15%. While various countries have implemented the legislation as of January 1, 2024, we do not expect a resulting material
change to our income tax provision for the 2024 fiscal year. As additional jurisdictions enact such legislation, we expect our
effective tax rate and cash tax payments could increase in future years.

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

As of December 31, 2023, we had $110.9 billion in cash, cash equivalents, and short-term marketable securities. Cash
equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government
bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.

Sources, Uses of Cash and Related Trends

Year Ended December 31,

Net cash provided by operating activities

Net cash used in financing activities

Net cash used in investing activities

Cash Provided by Operating Activities

2022

91,495

(20,298)

(69,757)

2023

101,746

(72,093)

(27,063)

consumer subscriptions and the sale of apps and in-app purchases and devices. In Google Cloud we generate
cash through consumption-based fees and subscriptions for infrastructure, platform, collaboration tools, and other
cloud services.

Our primary uses of cash from operating activities include payments to distribution and Google Network partners, to
employees for compensation, and to content providers. Other uses of cash from operating activities include payments to
suppliers for devices, to tax authorities for income taxes, and other general corporate expenditures.
Net cash provided by operating activities increased from 2022 to 2023 due to the increase in cash received from
customers, partially offset by increases in cash paid for cost of revenues and operating expenses.

Cash Used in Investing Activities

Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and non-marketable
securities. Cash used in investing activities consists primarily of purchases of marketable and non-marketable securities,
purchases of property and equipment, and payments for acquisitions.
Net cash used in investing activities increased from 2022 to 2023 due to a decrease in maturities and sales of marketable
securities, partially offset by a decrease in payments for acquisitions.

Cash Used in Financing Activities

Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of
interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net payments
related to stock-based award activities, and repayments of debt.
Net cash used in financing activities increased from 2022 to 2023 due to an increase in repurchases of stock.
38

Alphabet 2023 Annual Report

Unchanged extraction record

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Cash, cash equivalents, and short-term marketable securities totaled $110.9 billion at December 31, 2023.

alphabet2022and2023:2911f26dee67f49eb31b870c177a0dca215ae5897f00ea8eeb68739dc0148871 · reported_fact

Original source, physical page 48

As of December 31, 2023, we had $110.9 billion in cash, cash equivalents, and short-term marketable securities.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

The OECD is coordinating negotiations among more than 140 countries with the goal of achieving consensus around
substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of
15%. While various countries have implemented the legislation as of January 1, 2024, we do not expect a resulting material
change to our income tax provision for the 2024 fiscal year. As additional jurisdictions enact such legislation, we expect our
effective tax rate and cash tax payments could increase in future years.

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

Sources, Uses of Cash and Related Trends

Year Ended December 31,

Net cash provided by operating activities

Net cash used in financing activities

Net cash used in investing activities

Cash Provided by Operating Activities

2022

91,495

(20,298)

(69,757)

2023

101,746

(72,093)

(27,063)

Cash Used in Investing Activities

Cash Used in Financing Activities

Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of
interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net payments
related to stock-based award activities, and repayments of debt.
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38

Alphabet 2023 Annual Report

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Alphabet describes investing for long-term business growth as the continuing primary use of capital.

alphabet2022and2023:d56039b42644752a44d53f9e6a49b2534cb0a5b9c0c09e59356f7f0a393b6a55 · aspiration

Original source, physical page 48

The primary use of capital continues to be to invest for the long-term growth of the business.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

The OECD is coordinating negotiations among more than 140 countries with the goal of achieving consensus around
substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of
15%. While various countries have implemented the legislation as of January 1, 2024, we do not expect a resulting material
change to our income tax provision for the 2024 fiscal year. As additional jurisdictions enact such legislation, we expect our
effective tax rate and cash tax payments could increase in future years.

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

Sources, Uses of Cash and Related Trends

Year Ended December 31,

Net cash provided by operating activities

Net cash used in financing activities

Net cash used in investing activities

Cash Provided by Operating Activities

2022

91,495

(20,298)

(69,757)

2023

101,746

(72,093)

(27,063)

Cash Used in Investing Activities

Cash Used in Financing Activities

Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of
interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net payments
related to stock-based award activities, and repayments of debt.
Net cash used in financing activities increased from 2022 to 2023 due to an increase in repurchases of stock.
38

Alphabet 2023 Annual Report

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Alphabet expects existing liquidity sources to fund operating activities and cash commitments for at least the next 12 months and thereafter for the foreseeable future.

alphabet2022and2023:836e95072bb3cef32e2f250baf7d070eda1610c2d6888e2fc212d288b70cc9cb · forecast

Original source, physical page 49

We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months and thereafter for the foreseeable future.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Liquidity and Material Cash Requirements

We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and financing
activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing
activities for at least the next 12 months and thereafter for the foreseeable future.

Capital Expenditures and Leases

We make investments in land and buildings for data centers and offices and information technology assets through
purchases of property and equipment and lease arrangements to provide capacity for the growth of our services and
products.

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

• technical infrastructure, which consists of our investments in servers and network equipment for computing, storage,
and networking requirements for ongoing business activities, including AI, (collectively referred to as our information
technology assets) and data center land and building construction; and
• office facilities, ground-up development projects, and building improvements (also referred to as “fit-outs”).

Construction in progress consists primarily of technical infrastructure and office facilities which have not yet been placed
in service. The time frame from date of purchase to placement in service of these assets may extend from months to
years. For example, our data center construction projects are generally multi-year projects with multiple phases, where we
acquire land and buildings, construct buildings, and secure and install information technology assets.
During the years ended December 31, 2022 and 2023, we spent $31.5 billion and $32.3 billion on capital expenditures,
respectively. We expect to increase, relative to 2023, our investment in our technical infrastructure, including
servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in
particular in support of AI products and services. Depreciation of our property and equipment commences when the
deployment of such assets are completed and are ready for our intended use. Land is not depreciated. For the years
ended December 31, 2022 and 2023, our depreciation on property and equipment were $13.5 billion and $11.9 billion,
respectively.

Leases

For the years ended December 31, 2022 and 2023, we recognized total operating lease assets of $4.4 billion and
$2.9 billion, respectively. As of December 31, 2023, the amount of total future lease payments under operating leases, which
had a weighted average remaining lease term of eight years, was $17.7 billion, of which $3.2 billion is short-term. As of
December 31, 2023, we have entered into leases that have not yet commenced with future short-term and long-term lease
payments of $657 million and $3.3 billion, that are not yet recorded on our Consolidated Balance Sheets. These leases will
commence between 2024 and 2026 with non-cancelable lease terms of one to 25 years.
For the years ended December 31, 2022 and 2023, our operating lease expenses (including variable lease costs) were
$3.7 billion and $4.5 billion, respectively. Finance lease costs were not material for the years ended December 31, 2022 and
2023. For additional information, see Note 4 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K.

Financing

We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper. Net
proceeds from this program are used for general corporate purposes. As of December 31, 2023, we had no commercial
paper outstanding.

As of December 31, 2023, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2024 and $6.0 billion
expiring in April 2028. The interest rates for all credit facilities are determined based on a formula using certain market
rates, as well as our progress toward the achievement of certain sustainability goals. No amounts have been borrowed
under the credit facilities.

Alphabet 2023 Annual Report

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Alphabet expects to increase investment in technical infrastructure relative to 2023, particularly to support AI products and services.

alphabet2022and2023:abe69293ba205b9320b569691f1ed54773cb36eb4ca5862e1a7d7032617ffb30 · forecast

Original source, physical page 49

We expect to increase, relative to 2023, our investment in our technical infrastructure, including
servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in
particular in support of AI products and services.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

Part IV

Liquidity and Material Cash Requirements

Capital Expenditures and Leases

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

Leases

Financing

Alphabet 2023 Annual Report

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Alphabet disclosed $17.7 billion of future operating lease payments, plus leases not yet commenced with $657 million of short-term and $3.3 billion of long-term payments commencing between 2024 and 2026.

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As of December 31, 2023, the amount of total future lease payments under operating leases, which
had a weighted average remaining lease term of eight years, was $17.7 billion, of which $3.2 billion is short-term. As of
December 31, 2023, we have entered into leases that have not yet commenced with future short-term and long-term lease
payments of $657 million and $3.3 billion, that are not yet recorded on our Consolidated Balance Sheets. These leases will
commence between 2024 and 2026 with non-cancelable lease terms of one to 25 years.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part II

Part III

Part IV

Liquidity and Material Cash Requirements

Capital Expenditures and Leases

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

Leases

Financing

Alphabet 2023 Annual Report

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Alphabet states that the one-time transition tax payable will be paid in annual interest-free installments through 2025; $2.1 billion was short-term at December 31, 2023.

alphabet2022and2023:b5603bc84d878796efdb0062ab93d35691c54e48f4f68567b8c373fb416c96b8 · measurable_promise

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As of December 31, 2023, we had income taxes payable of $4.2 billion, of which $2.1 billion was short-term, related to a
one-time transition tax payable incurred as a result of the U.S. Tax Cuts and Jobs Act (“Tax Act”). As permitted by the Tax
Act, we will pay the transition tax in annual interest-free installments through 2025.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

As of December 31, 2023, we had senior unsecured notes outstanding with a total carrying value of $12.9 billion with
short-term and long-term future interest payments of $214 million and $3.6 billion, respectively. For additional information,
see Note 6 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

We primarily utilize contract manufacturers for the assembly of our servers used in our technical infrastructure and
devices we sell. We have agreements where we may purchase components directly from suppliers and then supply these
components to contract manufacturers for use in the assembly of the servers and devices. Certain of these arrangements
result in a portion of the cash received from and paid to the contract manufacturers to be presented as financing activities
in the Consolidated Statements of Cash Flows included in Item 8 of this Annual Report on Form 10-K.

Share Repurchase Program

During 2023 we repurchased and subsequently retired 528 million shares for $62.2 billion.

In April 2023, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion
of its Class A and Class C shares. As of December 31, 2023, $36.3 billion remains available for Class A and Class C share
repurchases.
The following table presents Class A and Class C shares repurchased and subsequently retired (in millions):
Year Ended December 31, 2022
Class A share repurchases

Class C share repurchases
Total share repurchases

(1)

Shares
61

530

469

Amount
6,719

52,577

59,296

Year Ended December 31, 2023
Shares
78

528

450

Amount
9,316

52,868

62,184

Shares repurchased include unsettled repurchases as of December 31, 2023.

For additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

European Commission Fines

In 2017, 2018 and 2019, the EC announced decisions that certain actions taken by Google infringed European competition
law and imposed fines of €2.4 billion ($2.7 billion as of June 27, 2017), €4.3 billion ($5.1 billion as of June 30, 2018), and
€1.5 billion ($1.7 billion as of March 20, 2019), respectively. On September 14, 2022, the General Court reduced the 2018 fine
from €4.3 billion to €4.1 billion. We subsequently filed an appeal to the European Court of Justice.

While each EC decision is under appeal, we included the fines in accrued expenses and other current liabilities on our
Consolidated Balance Sheets as we provided bank guarantees (in lieu of a cash payment) for the fines. For additional information,
see Note 10 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Taxes

As of December 31, 2023, we had income taxes payable of $4.2 billion, of which $2.1 billion was short-term, related to a
one-time transition tax payable incurred as a result of the U.S. Tax Cuts and Jobs Act (“Tax Act”). As permitted by the Tax
Act, we will pay the transition tax in annual interest-free installments through 2025. We also have long-term taxes payable
of $6.3 billion primarily related to uncertain tax positions as of December 31, 2023.

Purchase Commitments and Other Contractual Obligations

As of December 31, 2023, we had material purchase commitments and other contractual obligations of $45.9 billion, of
which $31.6 billion was short-term. These amounts primarily consist of purchase orders for certain technical infrastructure
as well as the non-cancelable portion or the minimum cancellation fee in certain agreements related to commitments to
purchase licenses, including content licenses, inventory and network capacity. For those agreements with variable terms,
we do not estimate the non-cancelable obligation beyond any minimum quantities and/or pricing as of December 31,
2023. In certain instances, the amount of our contractual obligations may change based on the expected timing of
order fulfillment from our suppliers. For more information related to our content licenses, see Note 10 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
40

Alphabet 2023 Annual Report

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The Alphabet Board authorized up to an additional $70.0 billion of share repurchases, with $36.3 billion available at December 31, 2023.

alphabet2022and2023:57467a9b75ec21429c86b30a6568173e26b0169a36e3cb89485164183ca4c640 · reported_fact

Original source, physical page 50

In April 2023, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion
of its Class A and Class C shares. As of December 31, 2023, $36.3 billion remains available for Class A and Class C share
repurchases.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

Part IV

Share Repurchase Program

During 2023 we repurchased and subsequently retired 528 million shares for $62.2 billion.

Class C share repurchases
Total share repurchases

(1)

Shares
61

530

469

Amount
6,719

52,577

59,296

Year Ended December 31, 2023
Shares
78

528

450

Amount
9,316

52,868

62,184

Shares repurchased include unsettled repurchases as of December 31, 2023.

For additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K.

European Commission Fines

Taxes

Purchase Commitments and Other Contractual Obligations

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Material purchase commitments and other contractual obligations totaled $45.9 billion, of which $31.6 billion was short-term.

alphabet2022and2023:0708cfc2a139af8aa820f8952c4d7cb8e0e606e88eec64251afe65cad5b8bed6 · reported_fact

Original source, physical page 50

As of December 31, 2023, we had material purchase commitments and other contractual obligations of $45.9 billion, of
which $31.6 billion was short-term.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Share Repurchase Program

During 2023 we repurchased and subsequently retired 528 million shares for $62.2 billion.

Class C share repurchases
Total share repurchases

(1)

Shares
61

530

469

Amount
6,719

52,577

59,296

Year Ended December 31, 2023
Shares
78

528

450

Amount
9,316

52,868

62,184

Shares repurchased include unsettled repurchases as of December 31, 2023.

For additional information, see Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
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European Commission Fines

Taxes

Purchase Commitments and Other Contractual Obligations

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Alphabet states that actual results could differ materially from accounting estimates because of uncertainties.

alphabet2022and2023:1070c2b1c631a0859357a631797dc386994f3d04a17e3f579a558f0610b78ab9 · challenge

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Preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions
that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results
could differ materially from these estimates due to uncertainties.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Alphabet Inc.
Notes to Consolidated Financial Statements

Note 1. Summary of Significant Accounting Policies
Nature of Operations

Google was incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. In
2015, we implemented a holding company reorganization, and as a result, Alphabet Inc. ("Alphabet") became the successor
issuer to Google.
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers with infrastructure and platform services as well as communication and collaboration tools; sales
of other products and services, such as fees received for consumer subscription-based products, apps and in-app
purchases, and devices.

Basis of Consolidation

The consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the
variable interest and voting models. Intercompany balances and transactions have been eliminated.

Use of Estimates

Preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions
that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results
could differ materially from these estimates due to uncertainties. On an ongoing basis, we evaluate our estimates, including
those related to the allowance for credit losses; content licenses; contingent liabilities; fair values of financial instruments
and goodwill; income taxes; inventory; and useful lives of property and equipment, among others. We base our estimates
on assumptions, both historical and forward looking, that are believed to be reasonable, and the results of which form the
basis for making judgments about the carrying values of assets and liabilities.
In January 2023, we completed an assessment of the useful lives of our servers and network equipment and adjusted the
estimated useful life of our servers from four years to six years and the estimated useful life of certain network equipment
from five years to six years. This change in accounting estimate was effective beginning in fiscal year 2023. Based on the
carrying value of servers and certain network equipment as of December 31, 2022, and those placed in service during
the year ended December 31, 2023, the effect of this change in estimate was a reduction in depreciation expense of
$3.9 billion and an increase in net income of $3.0 billion, or $0.24 per basic and $0.24 per diluted share, for the year ended
December 31, 2023.

Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to our customers, and the
collectibility of an amount that we expect in exchange for those goods or services is probable. Sales and other similar taxes
are excluded from revenues.

Advertising Revenues

We generate advertising revenues primarily by delivering advertising on:

• Google Search and other properties, including revenues from traffic generated by search distribution partners who use
Google.com as their default search in browsers, toolbars, etc. and other Google owned and operated properties like
Gmail, Google Maps, and Google Play;
• YouTube properties; and

• Google Network properties, including revenues from Google Network properties participating in AdMob, AdSense, and
Google Ad Manager.
Our customers generally purchase advertising inventory through Google Ads, Google Ad Manager, Google Display &
Video 360, and Google Marketing Platform, among others.
54

Alphabet 2023 Annual Report

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Alphabet reports possible exposure to losses exceeding recorded amounts in legal and regulatory matters, and such amounts could be material.

alphabet2022and2023:457a33b3201d428d05f9383387f2493fc65bcf5b42545788fc150bf81f704eef · challenge

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Until the final resolution of such matters, there may be an exposure to loss in excess of the amount
recorded, and such amounts could be material.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

The provision for income taxes includes the effect of reserve provisions and changes to reserves as well as the related net
interest and penalties. In addition, we are subject to the continuous examination of our income tax returns by the IRS and
other tax authorities which may assert assessments against us. We regularly assess the likelihood of adverse outcomes
resulting from these examinations and assessments to determine the adequacy of our provision for income taxes.

Loss Contingencies

We are regularly subject to claims, lawsuits, regulatory and government investigations, other proceedings, and
consent orders involving competition, intellectual property, privacy, data security, tax and related compliance, labor
and employment, commercial disputes, content generated by our users, goods and services offered by advertisers
or publishers using our platforms, personal injury consumer protection, and other matters. Certain of these matters
include speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe
that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a
loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss in Note 10 of
the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Change in Accounting Estimate

In January 2023, we completed an assessment of the useful lives of our servers and network equipment resulting in a
change in the estimated useful life of our servers and certain network equipment to six years. This change in accounting
estimate was effective beginning fiscal year 2023. For additional information, see Note 1 of the Notes to Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Item 7A. Quantitative and Qualitative Disclosures About
Market Risk

We are exposed to financial market risks, including changes in foreign currency exchange rates, interest rates, and equity
investment risks.

Foreign Currency Exchange Risk

We transact business globally in multiple currencies. International revenues, as well as costs and expenses denominated
in foreign currencies, expose us to the risk of fluctuations in foreign currency exchange rates against the U.S. dollar.
As discussed below, we enter into derivative instruments to hedge foreign currency risk. Principal currencies hedged
included the Australian dollar, British pound, Canadian dollar, Euro, and Japanese yen. For the purpose of analyzing foreign
currency exchange risk, we considered the historical trends in foreign currency exchange rates and determined that it was
reasonably possible that adverse changes in exchange rates of 10% could be experienced.
We use foreign currency forward and option contracts to offset the foreign exchange risk on assets and liabilities
denominated in currencies other than the functional currency of the subsidiary. These forward and option contracts
reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on our assets and liabilities.
The foreign currency gains and losses on these assets and liabilities are recorded in OI&E, which are offset by the gains
and losses on the forward and option contracts.
If an adverse 10% foreign currency exchange rate change was applied to total monetary assets, liabilities, and
commitments denominated in currencies other than the functional currencies at the balance sheet date, it would
have resulted in an adverse effect on income before income taxes of approximately $136 million and $503 million as of
December 31, 2022 and 2023, respectively, after consideration of the effect of foreign exchange contracts in place for the
years ended December 31, 2022 and 2023.

Alphabet 2023 Annual Report

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  "excerpt": "Until the final resolution of such matters, there may be an exposure to loss in excess of the amount\nrecorded, and such amounts could be material.",
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A hypothetical adverse 10% foreign exchange rate change would have produced an approximately $503 million adverse effect on 2023 pretax income after considering hedges.

alphabet2022and2023:1cd3a442181047cfdcbeddbdfd5dc7078a8b1f9b7c63304aaba086f21dd76523 · challenge

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If an adverse 10% foreign currency exchange rate change was applied to total monetary assets, liabilities, and
commitments denominated in currencies other than the functional currencies at the balance sheet date, it would
have resulted in an adverse effect on income before income taxes of approximately $136 million and $503 million as of
December 31, 2022 and 2023, respectively, after consideration of the effect of foreign exchange contracts in place for the
years ended December 31, 2022 and 2023.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Loss Contingencies

Change in Accounting Estimate

Item 7A. Quantitative and Qualitative Disclosures About
Market Risk

We are exposed to financial market risks, including changes in foreign currency exchange rates, interest rates, and equity
investment risks.

Foreign Currency Exchange Risk

Alphabet 2023 Annual Report

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The estimated one-day loss in fair value of marketable debt securities for the interest rate risk category was $296 million at December 31, 2023.

alphabet2022and2023:f92b9f1506968082af54ae9299d983e134717d8cac72db1b703901e1f5677956 · challenge

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The estimated one-day loss in fair value of marketable debt securities as of December 31, 2022 and
2023 are shown below (in millions):
As of December 31,
Risk category - interest rate

$

2022
256

$

2023
296

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

We use foreign currency forward and option contracts, including collars (an option strategy comprised of a combination
of purchased and written options) to protect forecasted U.S. dollar-equivalent earnings from changes in foreign currency
exchange rates. When the U.S. dollar strengthens, gains from foreign currency forward and option contacts reduce the
foreign currency losses related to our earnings. When the U.S. dollar weakens, losses from foreign currency forward and
option contracts offset the foreign currency gains related to our earnings. These hedging contracts reduce, but do not
entirely eliminate, the effect of foreign currency exchange rate movements. We designate these contracts as cash flow
hedges for accounting purposes. We reflect the gains or losses of foreign currency spot rate changes as a component of
accumulated other comprehensive income (AOCI) and subsequently reclassify them into revenues to offset the hedged
exposures as they occur.

If the U.S. dollar weakened by 10% as of December 31, 2022 and 2023, the amount recorded in AOCI related to our cash
flow hedges before tax effect would have been approximately $1.3 billion and $1.5 billion lower as of December 31, 2022 and
2023, respectively. The change in the value recorded in AOCI would be expected to offset a corresponding foreign currency
change in forecasted hedged revenues when recognized.
We use foreign exchange forward contracts designated as net investment hedges to hedge the foreign currency risks
related to investment in foreign subsidiaries. These forward contracts serve to offset the foreign currency translation risk
from our foreign operations.
If the U.S. dollar weakened by 10%, the amount recorded in cumulative translation adjustment (CTA) within AOCI related
to our net investment hedges before tax effect would have been approximately $903 million and $946 million lower
as of December 31, 2022 and 2023, respectively. The change in value recorded in CTA would be expected to offset a
corresponding foreign currency translation gain or loss from our investment in foreign subsidiaries.

Interest Rate Risk

Our Corporate Treasury investment strategy is to achieve a return that will allow us to preserve capital and maintain
liquidity. We invest primarily in debt securities, including government bonds, corporate debt securities, mortgage-backed
and asset-backed securities, money market and other funds, time deposits, and interest rate derivatives. By policy, we
limit the amount of credit exposure to any one issuer. Our investments in both fixed rate and floating rate interest earning
securities carry a degree of interest rate risk. Fixed rate securities may have their fair market value adversely affected
due to a rise in interest rates, while floating rate securities may produce less income than predicted if interest rates fall.
Unrealized gains or losses on our marketable debt securities are primarily due to interest rate fluctuations as compared
to interest rates at the time of purchase. For certain fixed and variable rate debt securities, we have elected the fair
value option for which changes in fair value are recorded in OI&E. We measure securities for which we have not elected
the fair value option at fair value with gains and losses recorded in AOCI until the securities are sold, less any expected
credit losses.
We use value-at-risk (VaR) analysis to determine the potential effect of fluctuations in interest rates on the value of our
marketable debt security portfolio. The VaR is the expected loss in fair value, for a given confidence interval, for our
investment portfolio due to adverse movements in interest rates. We use a variance/covariance VaR model with 95%
confidence interval. The estimated one-day loss in fair value of marketable debt securities as of December 31, 2022 and
2023 are shown below (in millions):
As of December 31,
Risk category - interest rate

2022
256

2023
296

12-Month Average
As of December 31,
$

2022
198

2023
271

Actual future gains and losses associated with our marketable debt security portfolio may differ materially from the
sensitivity analyses performed as of December 31, 2022 and 2023 due to the inherent limitations associated with predicting
the timing and amount of changes in interest rates and our actual exposures and positions. VaR analysis is not intended to
represent actual losses but is used as a risk estimation.

Alphabet 2023 Annual Report

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A hypothetical adverse 10% price change would decrease the fair value of marketable equity securities by $597 million at December 31, 2023.

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A hypothetical
adverse price change of 10% on our December 31, 2023 balance would decrease the fair value of marketable equity
securities by $597 million.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Equity Investment Risk

Our marketable and non-marketable equity securities are subject to a wide variety of market-related risks that could
substantially reduce or increase the fair value of our holdings.
Our marketable equity securities are publicly traded stocks or funds and our non-marketable equity securities are
investments in privately held companies, some of which are in the startup or development stages.

We record marketable equity securities not accounted for under the equity method at fair value based on readily
determinable market values, of which publicly traded stocks and mutual funds are subject to market price volatility, and
represent $5.2 billion and $6.0 billion of our investments as of December 31, 2022 and 2023, respectively. A hypothetical
adverse price change of 10% on our December 31, 2023 balance would decrease the fair value of marketable equity
securities by $597 million. From time to time, we may enter into derivatives to hedge the market price risk on certain of our
marketable equity securities.
Our non-marketable equity securities not accounted for under the equity method are adjusted to fair value for
observable transactions for identical or similar investments of the same issuer or impairment (referred to as the
measurement alternative). The fair value measured at the time of the observable transaction is not necessarily an
indication of the current fair value as of the balance sheet date. These investments, especially those that are in the
early stages, are inherently risky because the technologies or products these companies have under development are
typically in the early phases and may never materialize, and they may experience a decline in financial condition, which
could result in a loss of a substantial part of our investment in these companies. Valuations of our equity investments
in private companies are inherently more complex due to the lack of readily available market data and observable
transactions at lower valuations could result in significant losses. In addition, global economic conditions could result in
additional volatility. The success of our investment in any private company is also typically dependent on the likelihood
of our ability to realize appreciation in the value of investments through liquidity events such as public offerings,
acquisitions, private sales or other market events. Changes in the valuation of non-marketable equity securities may
not directly correlate with changes in valuation of marketable equity securities. As of December 31, 2022 and 2023, the
carrying value of our non-marketable equity securities, which were accounted for under the measurement alternative,
was $28.5 billion and $28.8 billion, respectively.

The carrying values of our equity method investments, which totaled approximately $1.7 billion as of December 31, 2022
and 2023, generally do not fluctuate based on market price changes. However, these investments could be impaired if the
carrying value exceeds the fair value and is not expected to recover.
For additional information about our equity investments, see Note 1 and Note 3 of the Notes to Consolidated Financial
Statements included in Item 8 of this Annual Report on Form 10-K.

44

Alphabet 2023 Annual Report

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Alphabet describes early-stage non-marketable equity investments as inherently risky because underlying technologies or products may never materialize and losses could be substantial.

alphabet2022and2023:d8a2fbd1df77210c8d4ab99c68422fabc58e2cea82e303e38740c04bf11e3c55 · challenge

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These investments, especially those that are in the
early stages, are inherently risky because the technologies or products these companies have under development are
typically in the early phases and may never materialize, and they may experience a decline in financial condition, which
could result in a loss of a substantial part of our investment in these companies.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Equity Investment Risk

Our marketable and non-marketable equity securities are subject to a wide variety of market-related risks that could
substantially reduce or increase the fair value of our holdings.
Our marketable equity securities are publicly traded stocks or funds and our non-marketable equity securities are
investments in privately held companies, some of which are in the startup or development stages.

We record marketable equity securities not accounted for under the equity method at fair value based on readily
determinable market values, of which publicly traded stocks and mutual funds are subject to market price volatility, and
represent $5.2 billion and $6.0 billion of our investments as of December 31, 2022 and 2023, respectively. A hypothetical
adverse price change of 10% on our December 31, 2023 balance would decrease the fair value of marketable equity
securities by $597 million. From time to time, we may enter into derivatives to hedge the market price risk on certain of our
marketable equity securities.
Our non-marketable equity securities not accounted for under the equity method are adjusted to fair value for
observable transactions for identical or similar investments of the same issuer or impairment (referred to as the
measurement alternative). The fair value measured at the time of the observable transaction is not necessarily an
indication of the current fair value as of the balance sheet date. These investments, especially those that are in the
early stages, are inherently risky because the technologies or products these companies have under development are
typically in the early phases and may never materialize, and they may experience a decline in financial condition, which
could result in a loss of a substantial part of our investment in these companies. Valuations of our equity investments
in private companies are inherently more complex due to the lack of readily available market data and observable
transactions at lower valuations could result in significant losses. In addition, global economic conditions could result in
additional volatility. The success of our investment in any private company is also typically dependent on the likelihood
of our ability to realize appreciation in the value of investments through liquidity events such as public offerings,
acquisitions, private sales or other market events. Changes in the valuation of non-marketable equity securities may
not directly correlate with changes in valuation of marketable equity securities. As of December 31, 2022 and 2023, the
carrying value of our non-marketable equity securities, which were accounted for under the measurement alternative,
was $28.5 billion and $28.8 billion, respectively.

The carrying values of our equity method investments, which totaled approximately $1.7 billion as of December 31, 2022
and 2023, generally do not fluctuate based on market price changes. However, these investments could be impaired if the
carrying value exceeds the fair value and is not expected to recover.
For additional information about our equity investments, see Note 1 and Note 3 of the Notes to Consolidated Financial
Statements included in Item 8 of this Annual Report on Form 10-K.

44

Alphabet 2023 Annual Report

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Outstanding legal matters may seek substantial monetary amounts, changes to business practices or products, or structural remedies, with outcomes described as inherently unpredictable.

alphabet2022and2023:43f3279ed086c99e3aa674c1b81d7879ac465801368fa466f27bd2b60d6b640b · challenge

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Certain outstanding matters seek speculative, substantial or indeterminate monetary amounts, substantial changes to our
business practices and products, or structural remedies. Significant judgment is required to determine both the likelihood
of there being a loss and the estimated amount of a loss related to such matters, and we may be unable to estimate the
reasonably possible loss or range of losses. The outcomes of outstanding legal matters are inherently unpredictable and
subject to significant uncertainties, and could, either individually or in aggregate, have a material adverse effect.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Legal Matters

Antitrust Investigations

On November 30, 2010, the EC’s Directorate General for Competition opened an investigation into various antitrust-related
complaints against us.

OnJune27,2017,theECannounceditsdecisionthatcertainactionstaken by Google regardingitsdisplay and rankingof
shoppingsearchresultsandadsinfringedEuropeancompetitionlaw.TheECdecision imposed a €2.4billion($2.7billionas
of June 27, 2017) fine.On September 11, 2017, we appealed the EC decision to the General Court, and on September 27, 2017,
we implemented product changes to bring shopping ads into compliance with the EC’s decision. We recognized a charge of
$2.7billion forthefineinthesecondquarterof2017.OnNovember10,2021, the GeneralCourtrejectedourappeal,andwe
subsequently filed an appeal with the European Court of Justice on January 20, 2022.
On July 18, 2018, the EC announced its decision that certain provisions in Google’s Android-related distribution agreements
infringedEuropeancompetitionlaw.TheECdecisionimposeda€4.3billion($5.1billionas of June 30,2018)fineand
directedtheterminationoftheconductatissue.On October9,2018, weappealedtheECdecision,andonOctober29,
2018, we implemented changes to certain of our Android distribution practices. On September 14, 2022, the General Court
reducedthefinefrom€4.3billionto€4.1 billion.Wesubsequently filedanappealwiththeEuropean Courtof Justice.In
2018,werecognizedachargeof$5.1 billion forthefine,whichwereducedby$217 millionin2022.

OnMarch20,2019,theECannounceditsdecisionthatcertaincontractual provisionsinagreementsthatGoogle hadwith
AdSenseforSearchpartnersinfringedEuropeancompetitionlaw.TheECdecisionimposeda fineof€1.5billion($1.7billion
asofMarch 20,2019)anddirectedactionsrelatedto AdSensefor Search partners’agreements,whichweimplemented
priortothedecision. OnJune4,2019,weappealedtheECdecision. Werecognizedacharge of$1.7billion forthefinein
the firstquarterof2019.
From time to time we are subject to formal and informal inquiries and investigations on various competition matters by
regulatory authorities in the U.S., Europe, and other jurisdictions globally. Examples, for which given their nature we cannot
estimate a possible loss, include:
• InAugust2019,webeganreceivingcivilinvestigativedemands fromtheU.S.DepartmentofJustice(DOJ)requesting
information and documents relating to our prior antitrust investigations and certain aspects of our business. The
DOJ and a number of state Attorneys General filed a lawsuit in the U.S. District Court for the District of Columbia on
October 20, 2020 alleging that Google violated U.S. antitrust laws relating to Search and Search advertising. The trial
ended on November 16, 2023, and we expect a decision in 2024. Further, in June 2022, the Australian Competition and
Consumer Commission (ACCC) and the United Kingdom’s Competition and Markets Authority (CMA) each opened an
investigation into Search distribution practices.

• On December 16, 2020, a number of state Attorneys General filed an antitrust complaint in the U.S. District Court for the
Eastern District of Texas, alleging that Google violated U.S. antitrust laws as well as state deceptive trade laws relating
to its advertising technology, and a trial is scheduled for March 2025. Additionally, on January 24, 2023, the DOJ, along
with a number of state Attorneys General, filed an antitrust complaint in the U.S. District Court for the Eastern District of
Virginia alleging that Google’s digital advertising technology products violate U.S. antitrust laws, and on April 17, 2023,
a number of additional state Attorneys General joined the complaint. The EC, the CMA, and the ACCC each opened
Alphabet 2023 Annual Report

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Alphabet stated that a decision was expected in 2024 in the U.S. Department of Justice and state Attorneys General Search antitrust lawsuit.

alphabet2022and2023:78370d6f5f14d2d8345cb1abe32bb7c351a135efad4714fd98518ee5c9e3a55b · forecast

Original source, physical page 87

The trial
ended on November 16, 2023, and we expect a decision in 2024.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

Full saved page including headers

Part I

Part II

Part III

Part IV

Legal Matters

Antitrust Investigations

On November 30, 2010, the EC’s Directorate General for Competition opened an investigation into various antitrust-related
complaints against us.

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Alphabet says it will defend the legal claims vigorously and continue cooperating with regulators.

alphabet2022and2023:3dd8ff101ff42d487c2f6c7a361e2d10ebe2f8ab8946d03cd8b3725536825bbd · aspiration

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We believe we have strong arguments against these claims and will defend ourselves vigorously. We continue to cooperate
with federal and state regulators in the U.S., the EC, and other regulators around the world.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

Part IV

a formal investigation into Google’s advertising technology business practices on June 22, 2021, May 25, 2022, and
June 29,2022,respectively.OnJune14,2023,theECissuedaStatementof Objections(SO)informing Googleofits
preliminary view that Google violated European antitrust laws relating to its advertising technology. We responded to the
SO on December 1, 2023.

• OnJuly7, 2021,anumberofstateAttorneysGeneral filedanantitrustcomplaintintheU.S.District Courtfor theNorthern
District of California, alleging that Google’s operation of Android and Google Play violated U.S. antitrust laws and state
antitrust and consumer protection laws. In September 2023, we reached a settlement in principle with 50 state Attorneys
General and three territories. The U.S. District Court subsequently vacated the trial date with the states, and any final
approval of the settlement is expected to occur in 2024. In May 2022, the EC and the CMA each opened investigations
into Google Play’s business practices. Korean regulators are investigating Google Play’s billing practices, including a
formal review in May 2022 of Google’s compliance with the new app store billing regulations.

We believe we have strong arguments against these claims and will defend ourselves vigorously. We continue to cooperate
with federal and state regulators in the U.S., the EC, and other regulators around the world.

Privacy Matters

We are subject to a number of privacy-related laws and regulations, and we currently are party to a number of privacy
investigations and lawsuits ongoing in multiple jurisdictions. For example, there are ongoing investigations and litigation
in the U.S. and the EU, including those relating to our collection and use of location information and advertising practices,
which could result in significant fines, judgments, and product changes.

Patent and Intellectual Property Claims

We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that certain of
our products, services, and technologies infringe others’ intellectual property rights. Adverse results in these lawsuits may
sinclude awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from
offering certain features, functionalities, products, or services. As a result, we may have to change our business practices
and develop non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm
our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to
litigate intellectual property disputes because an ultimate loss in an ITC action can result in a prohibition on importing
infringing products into the U.S. Because the U.S. is an important market, a prohibition on importation could have an
adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating
workarounds that may limit certain features of our products.

Furthermore, many of our agreements with our customers and partners require us to indemnify them against certain
intellectual property infringement claims, which would increase our costs as a result of defending such claims, and may
require that we pay significant damages if there were an adverse ruling in any such claims. In addition, our customers and
partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which
could result in loss of revenues and adversely affect our business.

Other

We are subject to claims, lawsuits, regulatory and government investigations, other proceedings, and consent orders
involving competition, intellectual property, data security, tax and related compliance, labor and employment, commercial
disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms,
personal injury, consumer protection, and other matters. For example, in December 2023, a California jury delivered a
verdict in Epic Games v. Google finding that Google violated antitrust laws related to Google Play’s business. The presiding
judge will determine remedies in 2024, and the range of potential remedies vary widely. We plan to appeal. We also
periodically have data incidents that we report to relevant regulators as required by law.
These claims, consent orders, lawsuits, regulatory and government investigations, and other proceedings could result in
substantial fines and penalties, injunctive relief, ongoing monitoring and auditing obligations, changes to our products
and services, alterations to our business models and operations, and collateral related civil litigation or other adverse
consequences, all of which could harm our business, reputation, financial condition, and operating results.

We have ongoing legal matters relating to Russia. For example, civil judgments that include compounding penalties have
been imposed upon us in connection with disputes regarding the termination of accounts, including those of sanctioned
parties. We do not believe these ongoing legal matters will have a material adverse effect.
78

Alphabet 2023 Annual Report

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Alphabet reports ongoing privacy investigations and litigation in the U.S. and EU that could result in fines, judgments and product changes.

alphabet2022and2023:f58ccfc9168af9525a8beb4a013699945d934dd6d817cb473d6d4ac4ac46d343 · challenge

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there are ongoing investigations and litigation
in the U.S. and the EU, including those relating to our collection and use of location information and advertising practices,
which could result in significant fines, judgments, and product changes.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part III

Part IV

Privacy Matters

We are subject to a number of privacy-related laws and regulations, and we currently are party to a number of privacy
investigations and lawsuits ongoing in multiple jurisdictions. For example, there are ongoing investigations and litigation
in the U.S. and the EU, including those relating to our collection and use of location information and advertising practices,
which could result in significant fines, judgments, and product changes.

Patent and Intellectual Property Claims

We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that certain of
our products, services, and technologies infringe others’ intellectual property rights. Adverse results in these lawsuits may
sinclude awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from
offering certain features, functionalities, products, or services. As a result, we may have to change our business practices
and develop non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm
our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to
litigate intellectual property disputes because an ultimate loss in an ITC action can result in a prohibition on importing
infringing products into the U.S. Because the U.S. is an important market, a prohibition on importation could have an
adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating
workarounds that may limit certain features of our products.

Other

Alphabet 2023 Annual Report

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Alphabet reports an adverse jury verdict in Epic Games v. Google, with remedies to be determined in 2024, and states that it plans to appeal.

alphabet2022and2023:b8dcc65d85359a833594390696841b92b653f7539bef83b6634b3bbead2f96e8 · challenge

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in December 2023, a California jury delivered a
verdict in Epic Games v. Google finding that Google violated antitrust laws related to Google Play’s business. The presiding
judge will determine remedies in 2024, and the range of potential remedies vary widely. We plan to appeal.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part I

Part II

Part III

Part IV

Privacy Matters

We are subject to a number of privacy-related laws and regulations, and we currently are party to a number of privacy
investigations and lawsuits ongoing in multiple jurisdictions. For example, there are ongoing investigations and litigation
in the U.S. and the EU, including those relating to our collection and use of location information and advertising practices,
which could result in significant fines, judgments, and product changes.

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sinclude awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from
offering certain features, functionalities, products, or services. As a result, we may have to change our business practices
and develop non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm
our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to
litigate intellectual property disputes because an ultimate loss in an ITC action can result in a prohibition on importing
infringing products into the U.S. Because the U.S. is an important market, a prohibition on importation could have an
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Alphabet combined part of Google Research's Brain team and DeepMind into Google DeepMind, reported within Alphabet-level activities beginning in the second quarter of 2023.

alphabet2022and2023:356e650a4c973eb21c973858fc10c199eecfa9126f972af3ef1735b8f3e25cca · reported_fact

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As announced on April 20, 2023, we brought together part of Google Research (the Brain team) and DeepMind to
significantly accelerate our progress in artificial intelligence (AI). The group, called Google DeepMind, is reported within
Alphabet-level activities prospectively beginning in the second quarter of 2023.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Note 15. Information about Segments and Geographic Areas
We report our segment results as Google Services, Google Cloud, and Other Bets:

• Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play,
Search, and YouTube. Google Services generates revenues primarily from advertising; fees received for consumer
subscription-based products such as YouTube TV, YouTube Music and Premium, and NFL Sunday Ticket; the sale of apps
and in-app purchases and devices.
• Google Cloud includes infrastructure and platform services, collaboration tools, and other services for enterprise
customers. Google Cloud generates revenues primarily from consumption-based fees and subscriptions received
for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise
services.

Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering activities, and
devices, as well as certain operating expenses are directly attributable to our segments. Due to the integrated nature
of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are managed centrally at a
consolidated level. These costs, including the associated depreciation and impairment, are allocated to operating segments
as a service cost generally based on usage, headcount, or revenue.
Reflecting DeepMind’s increasing collaboration with Google Services, Google Cloud, and Other Bets, beginning in the
first quarter of 2023 DeepMind is reported as part of Alphabet-level activities instead of within Other Bets. Additionally,
beginning in the first quarter of 2023, we updated and simplified our cost allocation methodologies to provide our business
leaders with increased transparency for decision-making. Prior periods have been recast to conform to the current
presentation.
As announced on April 20, 2023, we brought together part of Google Research (the Brain team) and DeepMind to
significantly accelerate our progress in artificial intelligence (AI). The group, called Google DeepMind, is reported within
Alphabet-level activities prospectively beginning in the second quarter of 2023. Previously, the Brain team was included
within Google Services.

Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily
include AI-focused shared R&D activities, including development costs of our general AI models; corporate initiatives such
as our philanthropic activities; corporate shared costs such as certain finance, human resource, and legal costs, including
certain fines and settlements. Charges associated with reductions in our workforce and office space during 2023 were not
allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments.
Our operating segments are not evaluated using asset information.

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Alphabet reports ongoing IRS examination of 2016 through 2021 tax returns, foreign tax assessments and continued defense of those claims.

alphabet2022and2023:fe758cb44f01e3e1ee3347db68969ced0663eab18e727ab25389cc7f3dff2b95 · challenge

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The IRS is currently examining our 2016 through 2021 tax returns. We have also received
tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We
continue to defend such claims as presented.
The tax years 2016 through 2022 remain subject to examination by the appropriate governmental agencies for Irish tax
purposes.

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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Part IV

Uncertain Tax Positions

The following table summarizes the activity related to our gross unrecognized tax benefits (in millions):
Year Ended December 31,

Beginning gross unrecognized tax benefits

Increases related to prior year tax positions

2021

3,837
529

2022

5,158
253

2023

7,055

740

Decreases related to prior year tax positions

(263)

(437)

(682)

Increases related to current year tax positions

1,384

2,221

2,346

Decreases related to settlement with tax authorities
Ending gross unrecognized tax benefits

(329)

5,158

(140)

7,055

(21)

9,438

AsofDecember 31,2022and2023,weaccrued$346 millionand$622millionininterest andpenaltiesinprovision for
income taxes, respectively.

We file income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. Our two major tax
jurisdictions are the U.S. federal and Ireland. We are subject to the continuous examination of our income tax returns by
the IRS and other tax authorities. The IRS is currently examining our 2016 through 2021 tax returns. We have also received
tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We
continue to defend such claims as presented.
The tax years 2016 through 2022 remain subject to examination by the appropriate governmental agencies for Irish tax
purposes. There are other ongoing audits in various other jurisdictions that are not material to our financial statements.

We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However,
the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a
manner not consistent with management’s expectations, we could be required to adjust our provision for income taxes in
the period such resolutions occur. Although the timing of resolution, settlement, and closure of audits is not certain, it is
reasonably possible that our unrecognized tax benefits from certain U.S. federal, state, and non U.S. tax positions could
decrease by approximately$700 million inthenext 12months.Positionsthatmayberesolved include various U.S. and
non-U.S. matters.

Alphabet 2023 Annual Report

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Sundar Pichai describes continued AI, subscriptions and Cloud progress and expresses an intention to build on that progress.

alphabet2022and2023:1186dab046ca36844a77932bd102be5517a9cf778cab561ab34c0445cda81904 · aspiration

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Since it was published, we’ve continued to make
incredible progress in building and deploying AI
across all of our products, including Search, Cloud,
and YouTube. We’re also growing our subscriptions
business and seeing great momentum across
our Cloud business to bring AI advances to
organizations around the world. Thanks to our
stockholders, who have supported us and our
mission over the last 25 years – looking forward
to so much more to come!

Alphabet 2023 Annual Report. Container publication metadata: 2024-04-26 (not a statement date). Metadata review: agent_reported_not_independently_verified.

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A note from Sundar,
April 2024
In 2023, we celebrated our 25th birthday as a
company. I wrote a letter in September 2023 to
mark the occasion, reflecting on a quarter century
of technological progress. I believe it’s a great
celebration of all we’ve achieved as a company over
the past 25 years – so we’re reprinting it here.
Since it was published, we’ve continued to make
incredible progress in building and deploying AI
across all of our products, including Search, Cloud,
and YouTube. We’re also growing our subscriptions
business and seeing great momentum across
our Cloud business to bring AI advances to
organizations around the world. Thanks to our
stockholders, who have supported us and our
mission over the last 25 years – looking forward
to so much more to come!

Directors and executive
officers as of January 2024
Directors

Executive officers

Stockholder information

Larry Page
Co-Founder

Sundar Pichai
Chief Executive Officer
Alphabet and Google

For further information about
Alphabet Inc., contact:

Sergey Brin
Co-Founder
Sundar Pichai
Chief Executive Officer
Alphabet and Google
John L. Hennessy
Chair of the Board of Directors
Former President
Stanford University
Frances H. Arnold
Linus Pauling Professor of
Chemical Engineering,
Bioengineering and Biochemistry
California Institute of Technology
R. Martin “Marty” Chávez
Partner and Vice Chairman
Sixth Street Partners
L. John Doerr
General Partner and Chair
Kleiner Perkins
Roger W. Ferguson Jr.
Former President and
Chief Executive Officer
TIAA
K. Ram Shriram
Managing Partner
Sherpalo Ventures
Robin L. Washington
Former Executive Vice President and
Chief Financial Officer
Gilead Sciences

Ruth M. Porat
President and Chief Investment Officer;
Chief Financial Officer
Alphabet and Google
Prabhakar Raghavan
Senior Vice President
Knowledge and Information
Google
Philipp Schindler
Senior Vice President
Chief Business Officer
Google
Kent Walker
President, Global Affairs,
Chief Legal Officer and Secretary
Alphabet and Google

Investor Relations
Alphabet Inc.
1600 Amphitheatre Parkway
Mountain View, California 94043
investor-relations@abc.xyz
You may also reach us by visiting the
investor relations portion of our website at:
abc.xyz/investor/
Alphabet’s stock (GOOG, GOOGL) trades
on the Nasdaq Global Select Market
Transfer Agent and Registrar
First Class/Registered/Certified Mail:
Computershare Investor Services
P.O. Box 43006
Providence, RI 02940-3006
Courier Services:
Computershare Investor Services
150 Royall Street, Suite 101
Canton, MA 02021
Shareholder Services Numbers:
(866) 298-8535 (toll-free within the USA,
U.S. territories, and Canada) or
(781) 575-2879
Investor Centre™ Portal:
computershare.com/investor
Independent Registered
Public Accounting Firm
Ernst & Young LLP

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  "page": 107,
  "section": "A note from Sundar, April 2024",
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Alphabet aspires to advance AI and develop more capable and useful AI.

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We believe that AI is a foundational and transformational technology that will provide compelling and helpful
benefits to people and society through its capacity to assist, complement, empower, and inspire people in almost every
field of human endeavor. As an information and computer science company, we will continue to be at the forefront of
advancing the frontier of AI. Through our path-breaking and field-defining research and development, we responsibly
and boldly develop more capable and useful AI every day.

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Table of Contents

Alphabet Inc.

Moonshots
Many companies get comfortable doing what they have always done, making only incremental changes. This
incrementalism leads to irrelevance over time, especially in technology, where change tends to be revolutionary, not
evolutionary. People thought we were crazy when we acquired YouTube and Android and when we launched Chrome,
but those efforts have matured into major platforms for digital video and mobile devices and a safer, popular browser.
We continue to look toward the future and to invest for the long term within each of our segments. As we said in the
original founders' letter, we will not shy away from high-risk, high-reward projects that we believe in, as they are the
key to our long-term success.
The power of AI
We believe that AI is a foundational and transformational technology that will provide compelling and helpful
benefits to people and society through its capacity to assist, complement, empower, and inspire people in almost every
field of human endeavor. As an information and computer science company, we will continue to be at the forefront of
advancing the frontier of AI. Through our path-breaking and field-defining research and development, we responsibly
and boldly develop more capable and useful AI every day.
AI already powers Google’s core products that help billions of people every day and has been at the foundation of
our core ads quality systems for years, helping large and small businesses all over the world to produce and run
effective and efficient ad campaigns that help grow their businesses. AI makes it possible to search in new languages,
with multiple inputs, such as using images and text at the same time with the Google App. Some of our most popular
products at Google — including Lens and Translate — were built entirely using artificial intelligence technologies such
as optical character recognition and machine learning. Google Cloud continues to build AI into numerous solutions that
our customers can use to develop AI-powered applications — including processing documents, images, and translation
— to understand and analyze data more efficiently, and to use packaged solutions for a variety of industries. In all
these examples, AI significantly enhances the usefulness and multiplies the value of these products and services to
people and organizations.
Our view is that AI is now, and more than ever, critical to delivering on our mission. As we bring our breakthrough
AI innovations into the real world to assist people and benefit society everywhere, we are also pursuing further
advancements that will help to unlock scientific discoveries and to tackle humanity's greatest challenges and
opportunities.
Privacy and security
We make it a priority to protect the privacy and security of our products, users, and customers, even if there are
near-term financial consequences. We do this by continuously investing in building products that are secure by default;
strictly upholding responsible data practices that emphasize privacy by design; and building easy-to-use settings that
put people in control. We are continually enhancing these efforts over time, whether by enabling users to auto-delete
their data, giving them new tools, such as My Ad Center, to control their ad experience, or advancing anti-malware,
anti-phishing, and password security features.
Google
For reporting purposes Google comprises two segments: Google Services and Google Cloud.
Google Services
Serving our users
We have always been committed to building helpful products that can improve the lives of millions of people
worldwide. Our product innovations are what make our services widely used, and our brand one of the most
recognized in the world. Google Services' core products and platforms include ads, Android, Chrome, hardware,
Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube, with broad and growing
adoption by users around the world.
Our products and services have come a long way since the company was founded more than two decades ago.
Rather than the ten blue links in our early search results, users can now get direct answers to their questions using
their computer or mobile device, their own voice, a photo, or an image, making it quicker, easier, and more natural to
find what they are looking for. Of the searches we see every day, 15% are new.
This drive to make information more accessible and helpful has led us over the years to improve the discovery
and creation of digital content both on the web and through platforms like Google Play and YouTube. People are
consuming many forms of digital content, including watching videos, playing games, listening to music, reading books,

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Alphabet stated a 2030 goal to operate on carbon-free energy continuously throughout the year.

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become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a
year;

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Alphabet Inc.

To accelerate the transition to a carbon-free and circular economy, in 2020, we launched our third decade of
climate action, and we are now working toward a new set of ambitious goals. By 2030, we aim to:
•

achieve net-zero emissions across all of our operations and value chain, including our consumer hardware
products;

•

become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a
year;

•

enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions; and

•

help more than 500 cities and local governments reduce an aggregate of 1 gigaton (one billion tons) of carbon
emissions annually.

We also aim to maximize the reuse of finite resources across our operations, products, and supply chains and to
enable others to do the same.
We are committed to helping people make more sustainable choices by empowering them with technology. We
introduced eco-friendly routing in Google Maps; new features to book flights or purchase appliances that have lower
carbon footprints; and when people come to Google Search with questions about climate change, we show information
from authoritative sources like the United Nations.
To benefit the people and places where we operate, we have set goals to replenish more water than we consume
by 2030 and to support water security in communities where we operate. We are focused on three areas: enhancing
our stewardship of water resources across Google offices and data centers; replenishing our water use and improving
watershed health and ecosystems in water-stressed communities; and sharing technology and tools that help
everyone predict, prevent, and recover from water stress. At Google we remain steadfast in our commitment to
sustainability, and we will continue to lead and encourage others to join us in improving the health of our planet. We
are proud of what we have achieved so far, and we are energized to help move the world closer to a more sustainable
and carbon-free future for all.
More information on our approach to sustainability can be found in our annual sustainability reports, including
Google’s Environmental Report. The contents of our sustainability reports are not incorporated by reference into this
Annual Report on Form 10-K or in any other report or document we file with the SEC. For additional information about
risks and uncertainties applicable to our commitments to attain certain sustainability goals, see Risk Factors in Item 1A
of this Annual Report on Form 10-K.
Culture and Workforce
We are a company of curious, talented, and passionate people. We embrace collaboration and creativity, and
encourage the iteration of ideas to address complex challenges in technology and society.
Our people are critical for our continued success, so we work hard to create an environment where employees
can have fulfilling careers, and be happy, healthy, and productive. We offer industry-leading benefits and programs to
take care of the diverse needs of our employees and their families, including opportunities for career growth and
development, resources to support their financial health, and access to excellent healthcare choices. Our competitive
compensation programs help us to attract and retain top candidates, and we will continue to invest in recruiting
talented people to technical and non-technical roles, and rewarding them well. We provide a variety of high quality
training and support to managers to build and strengthen their capabilities-–ranging from courses for new managers, to
learning resources that help them provide feedback and manage performance, to coaching and individual support.
At Alphabet we are committed to making diversity, equity, and inclusion part of everything we do and to growing a
workforce that is representative of the users we serve. More information on Google’s approach to diversity can be
found in our annual diversity reports, available publicly at diversity.google. The contents of our diversity reports are not
incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the
SEC.
As of December 31, 2022, Alphabet had 190,234 employees. We have work councils and statutory employee
representation obligations in certain countries, and we are committed to supporting protected labor rights, maintaining
an open culture, and listening to all employees. Supporting healthy and open dialogue is central to how we work, and
we communicate information about the company through multiple internal channels to our employees.
When necessary we contract with businesses around the world to provide specialized services where we do not
have appropriate in-house expertise or resources, often in fields that require specialized training like cafe operations,
content moderation, customer support, and physical security. We also contract with temporary staffing agencies when
we need to cover short-term leaves, when we have spikes in business needs, or when we need to quickly incubate
8

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Alphabet stated a 2030 goal to enable 5 gigawatts of new carbon-free energy through investments.

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enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions;

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•

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Alphabet stated a 2030 goal to help more than 500 cities and local governments reduce carbon emissions by an aggregate 1 gigaton annually.

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help more than 500 cities and local governments reduce an aggregate of 1 gigaton (one billion tons) of carbon
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achieve net-zero emissions across all of our operations and value chain, including our consumer hardware
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•

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•

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Alphabet stated a goal to replenish more water than it consumes by 2030.

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To benefit the people and places where we operate, we have set goals to replenish more water than we consume
by 2030 and to support water security in communities where we operate.

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achieve net-zero emissions across all of our operations and value chain, including our consumer hardware
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•

become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a
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•

enable 5 gigawatts of new carbon-free energy through investments in our key manufacturing regions; and

•

help more than 500 cities and local governments reduce an aggregate of 1 gigaton (one billion tons) of carbon
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Alphabet reported more than $100 billion invested in research and development over the last five years.

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We are continually innovating and building new products
and features that will help our users, partners, customers, and communities and have invested more than $100 billion
in research and development in the last five years in support of these efforts.

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Alphabet Inc.

•

the expected timing, amount, and effect of Alphabet Inc.'s share repurchases;

•

our long-term sustainability and diversity goals;

•

the unpredictability of the ongoing broader economic effects resulting from the war in Ukraine on our future
financial results;

•

the expected financial effect of our announced workforce reduction and office space optimization;

•

our expectation that the change in estimated useful life of servers and certain network equipment will have a
favorable effect on our 2023 operating results;

as well as other statements regarding our future operations, financial condition and prospects, and business strategies.
Forward-looking statements may appear throughout this report and other documents we file with the Securities and
Exchange Commission (SEC), including without limitation, the following sections: Part I, Item 1 "Business;" Part I, Item
1A "Risk Factors;" and Part II, Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of
Operations." Forward-looking statements generally can be identified by words such as "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "predicts," "projects," "will be," "will continue," "may," "could," "will likely
result," and similar expressions. These forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from
those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include,
but are not limited to, those discussed in this Annual Report on Form 10-K, and in particular, the risks discussed in Part
I, Item 1A, "Risk Factors" of this report and those discussed in other documents we file with the SEC. We undertake no
obligation to revise or publicly release the results of any revision to these forward-looking statements, except as
required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements.
As used herein, "Alphabet," "the company," "we," "us," "our," and similar terms include Alphabet Inc. and its
subsidiaries, unless the context indicates otherwise.
"Alphabet," "Google," and other trademarks of ours appearing in this report are our property. We do not intend our
use or display of other companies' trade names or trademarks to imply an endorsement or sponsorship of us by such
companies, or any relationship with any of these companies.
PART I
ITEM 1.

BUSINESS

Overview
As our founders Larry and Sergey wrote in the original founders' letter, "Google is not a conventional company.
We do not intend to become one." That unconventional spirit has been a driving force throughout our history, inspiring
us to tackle big problems and invest in moonshots, such as our long-term opportunities in artificial intelligence (AI). We
continue this work under the leadership of Alphabet and Google CEO Sundar Pichai.
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments,
Google Services and Google Cloud; we also report all non-Google businesses collectively as Other Bets. Alphabet's
structure is about helping each of our businesses prosper through strong leaders and independence.
Access and technology for everyone
The Internet is one of the world’s most powerful equalizers; it propels ideas, people and businesses large and
small. Our mission to organize the world’s information and make it universally accessible and useful is as relevant
today as it was when we were founded in 1998. Since then, we have evolved from a company that helps people find
answers to a company that also helps people get things done.
We are focused on building an even more helpful Google for everyone, and we aspire to give everyone the tools
they need to increase their knowledge, health, happiness, and success. Google Search helps people find information
and make sense of the world in more natural and intuitive ways, with trillions of searches on Google every year.
YouTube provides people with entertainment, information, and opportunities to learn something new. Google Assistant
offers the best way to get things done seamlessly across different devices, providing intelligent help throughout a
person's day, no matter where they are. Google Cloud helps customers solve today’s business challenges, improve
productivity, reduce costs, and unlock new growth engines. We are continually innovating and building new products
and features that will help our users, partners, customers, and communities and have invested more than $100 billion
in research and development in the last five years in support of these efforts.

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Alphabet reported 190,234 employees as of December 31, 2022.

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As of December 31, 2022, Alphabet had 190,234 employees.

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•

become the first major company to run on carbon-free energy 24 hours a day, seven days a week, 365 days a
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•

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•

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Alphabet warned that investments in new businesses, products, services, and technologies may not be commercially viable or generate an adequate return.

alphabet2022and2023:65d3214ae3dab20739ac85aef60a7209e8c8f2d224f449a7401e9aa182600e14 · challenge

Original source, physical page 11

Such investments ultimately may not be
commercially viable or may not result in an adequate return of capital and, in pursuing new strategies, we may incur
unanticipated liabilities.

Full saved page including headers

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Alphabet Inc.

(such as increased numbers of users or customers, new sales leads, increased brand awareness, or more effective
monetization) than their available alternatives. Changes to our advertising policies and data privacy practices, as well
as changes to other companies’ advertising and/or data privacy practices have in the past, and may in the future, affect
the advertising that we are able to provide. In addition, technologies have been developed that make customized ads
more difficult or that block the display of ads altogether, and some providers of online services have integrated these
technologies that could potentially impair the availability and functionality of third-party digital advertising. Failing to
provide superior value or deliver advertisements effectively and competitively could harm our business, reputation,
financial condition, and operating results.
In addition, expenditures by advertisers tend to correlate with overall economic conditions. Adverse
macroeconomic conditions have affected, and may in the future affect, the demand for advertising, resulting in
fluctuations in the amounts our advertisers spend on advertising, which could harm our financial condition and
operating results.
We face intense competition. If we do not continue to innovate and provide products and services that
are useful to users, customers, and other partners, we may not remain competitive, which could harm our
business, financial condition, and operating results.
Our business environment is rapidly evolving and intensely competitive. Our businesses face changing
technologies, shifting user needs, and frequent introductions of rival products and services. To compete successfully,
we must accurately anticipate technology developments and deliver innovative, relevant and useful products, services,
and technologies in a timely manner. As our businesses evolve, the competitive pressure to innovate will encompass a
wider range of products and services. We must continue to invest significant resources in R&D, including through
acquisitions, in order to enhance our technology and new and existing products and services.
We have many competitors in different industries. Our current and potential domestic and international
competitors range from large and established companies to emerging start-ups. Some competitors have longer
operating histories and well established relationships in various sectors. They can use their experience and resources
in ways that could affect our competitive position, including by making acquisitions, continuing to invest heavily in R&D
and in talent, initiating intellectual property and competition claims (whether or not meritorious), and continuing to
compete for users, advertisers, customers, and content providers. Further, discrepancies in enforcement of existing
laws may enable our lesser known competitors to aggressively interpret those laws without commensurate scrutiny,
thereby affording them competitive advantages. Our competitors may also be able to innovate and provide products
and services faster than we can or may foresee the need for products and services before us.
Our financial condition and operating results may also suffer if our products and services are not responsive to the
evolving needs and desires of our users, advertisers, publishers, customers, and content providers. As new and
existing technologies continue to develop, competitors and new entrants may be able to offer experiences that are, or
that are seen to be, substantially similar to or better than ours. These technologies could reduce usage of our products
and services, and force us to compete in different ways and expend significant resources to develop and operate equal
or better products and services. Competitors’ success in providing compelling products and services or in attracting
and retaining users, advertisers, publishers, customers, and content providers could harm our financial condition and
operating results.
Our ongoing investment in new businesses, products, services, and technologies is inherently risky, and
could divert management attention and harm our business, financial condition, and operating results.
We have invested and expect to continue to invest in new businesses, products, services, and technologies. The
investments that we are making across our businesses, such as in AI, reflect our ongoing efforts to innovate and
provide products and services that are useful to users, advertisers, publishers, customers, and content providers. Our
investments span a wide range of industries beyond online advertising. Such investments ultimately may not be
commercially viable or may not result in an adequate return of capital and, in pursuing new strategies, we may incur
unanticipated liabilities. These endeavors may involve significant risks and uncertainties, including diversion of
resources and management attention from current operations and the use of alternative investment, governance, or
compensation structures that may fail to adequately align incentives across the company or otherwise accomplish their
objectives.
Within Google Services, we continue to invest heavily in hardware, including our smartphones, home devices,
and wearables, which is a highly competitive market with frequent introduction of new products and services, rapid
adoption of technological advancements by competitors, short product life cycles, evolving industry standards,
continual improvement in performance characteristics, and price and feature sensitivity on the part of consumers and
businesses. There can be no assurance we will be able to provide hardware that competes effectively.

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Alphabet reported regular cyber attacks and unauthorized access attempts against its systems.

alphabet2022and2023:916ee70ad94ddba055e0230e994ad86556207ac2c479d2ee9d34986dffc28bd3 · challenge

Original source, physical page 16

We experience cyber attacks and other attempts to gain unauthorized access to our systems on a regular basis.

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Alphabet Inc.

Our products and services involve the storage, handling, and transmission of proprietary and other sensitive
information. Software bugs, theft, misuse, defects, vulnerabilities in our products and services, and security breaches
expose us to a risk of loss or improper use and disclosure of such information, which could result in litigation and other
potential liabilities, including regulatory fines and penalties, as well as reputational harm. Additionally, our products
incorporate highly technical and complex technologies, and thus our technologies and software have contained, and
are likely in the future to contain, undetected errors, bugs, and/or vulnerabilities. We have in the past discovered, and
may in the future discover, some errors in our software code only after we have released the code. Systems and
control failures, security breaches, failure to comply with our privacy policies, and/or inadvertent disclosure of user data
could result in government and legal exposure, seriously harm our reputation, brand, and business, and impair our
ability to attract and retain users or customers. Such incidents have occurred in the past and may continue to occur
due to the scale and nature of our products and services. While there is no guarantee that such incidents will not cause
significant damage, we expect to continue to expend significant resources to maintain security protections that limit the
effect of bugs, theft, misuse, and security vulnerabilities or breaches.
We experience cyber attacks and other attempts to gain unauthorized access to our systems on a regular basis.
Cyber attacks continue to evolve in sophistication and volume, and inherently may be difficult to detect for long periods
of time. We have seen, and will continue to see, industry-wide software supply chain vulnerabilities, such as the Log4j
vulnerability reported in December 2021, which could affect our or other parties’ systems. We expect to continue to
experience such incidents or vulnerabilities in the future. Our efforts to address undesirable activity on our platform
may also increase the risk of retaliatory attack. In addition, we face the risk of cyber attacks by nation-states and statesponsored actors. These attacks may target us or our customers, particularly our public sector customers (including
federal, state, and local governments). Geopolitical tensions or armed conflicts, such as the ongoing conflict in
Ukraine, may increase these risks.
We may experience security issues, whether due to employee or insider error or malfeasance, system errors, or
vulnerabilities in our or other parties’ systems. While we may not determine some of these issues to be material at the
time they occur and may remedy them quickly, there is no guarantee that these issues will not ultimately result in
significant legal, financial, and reputational harm, including government inquiries, enforcement actions, litigation, and
negative publicity. There is also no guarantee that a series of issues may not be determined to be material at a later
date in the aggregate, even if they may not be material individually at the time of their occurrence. Because the
techniques used to obtain unauthorized access to, disable or degrade service provided by or otherwise sabotage
systems change frequently and often are recognized only after being launched against a target, even taking all
reasonable precautions, including those required by law, we have been unable in the past and may continue to be
unable to anticipate or detect attacks or vulnerabilities or implement adequate preventative measures.
Further, if any partners with whom we share user or other customer information fail to implement adequate datasecurity practices, fail to comply with our terms and policies, or otherwise suffer a network or other security breach, our
users’ data may be improperly accessed, used, or disclosed. If an actual or perceived breach of our or our business
partners’ or service providers’ security occurs, the market perception of the effectiveness of our security measures
would be harmed, we could lose users and customers, our trade secrets or those of our business partners may be
compromised, and we may be exposed to significant legal and financial risks, including legal claims (which may
include class-action litigation) and regulatory actions, fines, and penalties. Any of the foregoing consequences could
harm our business, reputation, financial condition, and operating results.
While we have dedicated significant resources to privacy and security incident response capabilities, including
dedicated worldwide incident response teams, our response process, particularly during times of a natural disaster or
pandemic, may not be adequate, may fail to accurately assess the severity of an incident, may not be fast enough to
prevent or limit harm, or may fail to sufficiently remediate an incident. As a result, we may suffer significant legal,
reputational, or financial exposure, which could harm our business, financial condition, and operating results.
For additional information, see also our risk factor on privacy and data protection regulations under ‘Risks Related
to Laws, Regulations, and Policies’ below.
Our ongoing investments in safety, security, and content review will likely continue to identify abuse of
our platforms and misuse of user data.
In addition to our efforts to prevent and mitigate cyber attacks, we are making significant investments in safety,
security, and review efforts to combat misuse of our services and unauthorized access to user data by third parties,
including investigation and review of platform applications that could access the information of users of our services.
As a result of these efforts, we have in the past discovered, and may in the future discover, incidents of unnecessary
access to or misuse of user data or other undesirable activity by third parties. However, we may not have discovered,
and may in the future not discover, all such incidents or activity, whether as a result of our data limitations, including

15

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Alphabet stated that its ESG goals are complex and ambitious and may not be achieved.

alphabet2022and2023:eafdf4b030c47711808bd8bfbf10155db56372300b31acac1daf93e9370655e7 · challenge

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The implementation of these goals and
initiatives may require considerable investments, and our goals, with all of their contingencies, dependencies, and in
certain cases, reliance on third-party verification and/or performance, are complex and ambitious, may change, and we
cannot guarantee that we will achieve them.

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•

Alphabet Inc.

The EU’s Digital Markets Act, which will require in-scope companies to obtain user consent for combining data
across certain products and require search engines to share anonymized data with rival companies, among
other changes.

Further, we are subject to evolving laws and regulations that dictate whether, how, and under what circumstances
we can transfer, process and/or receive personal data. Previously available transfer mechanisms, such as the EU-U.S.
and the Swiss-U.S. Privacy Shield frameworks, were invalidated in 2020, and other bases for data transfer and
storage, such as Standard Contractual Clauses, remain subject to ongoing review in ways that may require us to adapt
our existing contractual arrangements. The validity of various data transfer mechanisms remains subject to legal,
regulatory, and political developments in both Europe and the U.S., including the potential adoption of the U.S.-EU
Data Privacy Framework. Until the U.S.-EU Data Privacy Framework is adopted by the EU, the legal uncertainty and
ongoing enforcement action from supervisory authorities related to cross-border transfers of personal data, could harm
our ability to process and transfer personal data outside of the European Economic Area and could in turn harm our
ability to provide, and our customers’ ability to use, some of our products and services.
We face, and may continue to face, intellectual property and other claims that could be costly to defend,
result in significant damage awards or other costs (including indemnification awards), and limit our ability to
use certain technologies.
We, like other internet, technology, and media companies, are frequently subject to litigation based on allegations
of infringement or other violations of intellectual property rights, including patent, copyright, trade secrets, and
trademarks. Parties have also sought broad injunctive relief against us by filing claims in U.S. and international courts
and the U.S. International Trade Commission (ITC) for exclusion and cease-and-desist orders. In addition, patentholding companies may frequently seek to generate income from patents they have obtained by bringing claims
against us. As we continue to expand our business, the number of intellectual property claims against us has increased
and may continue to increase as we develop and acquire new products, services, and technologies.
Adverse results in any of these lawsuits may include awards of monetary damages, costly royalty or licensing
agreements (if licenses are available at all), or orders limiting our ability to sell our products and services in the U.S. or
elsewhere, including by preventing us from offering certain features, functionalities, products, or services in certain
jurisdictions. They may also cause us to change our business practices in ways that could result in a loss of revenues
for us and otherwise harm our business.
Many of our agreements with our customers and partners, including certain suppliers, require us to defend
against certain intellectual property infringement claims and in some cases indemnify them for certain intellectual
property infringement claims against them, which could result in increased costs for defending such claims or
significant damages if there were an adverse ruling in any such claims. Such customers and partners may also
discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could
result in loss of revenues and harm our business. Moreover, intellectual property indemnities provided to us by our
suppliers, when obtainable, may not cover all damages and losses suffered by us and our customers arising from
intellectual property infringement claims. Furthermore, in connection with our divestitures, we have agreed, and may in
the future agree, to provide indemnification for certain potential liabilities, including those associated with intellectual
property claims. Regardless of their merits, intellectual property claims are often time consuming and expensive to
litigate or settle. To the extent such claims are successful, they could harm our business, including our product and
service offerings, financial condition, and operating results.
Expectations relating to environmental, social, and governance (ESG) considerations could expose us to
potential liabilities, increased costs, and reputational harm.
We are subject to laws, regulations, and other measures that govern a wide range of topics, including those
related to matters beyond our core products and services. For instance, new laws, regulations, policies, and
international accords relating to ESG matters, including sustainability, climate change, human capital, and diversity, are
being developed and formalized in Europe, the U.S., and elsewhere, which may entail specific, target-driven
frameworks and/or disclosure requirements. We have implemented robust ESG programs, adopted reporting
frameworks and principles, and announced a number of goals and initiatives. The implementation of these goals and
initiatives may require considerable investments, and our goals, with all of their contingencies, dependencies, and in
certain cases, reliance on third-party verification and/or performance, are complex and ambitious, may change, and we
cannot guarantee that we will achieve them. Any failure, or perceived failure, by us to adhere to our public statements,
comply fully with developing interpretations of ESG laws and regulations, or meet evolving and varied stakeholder
expectations and standards could harm our business, reputation, financial condition, and operating results.
We could be subject to changes in tax rates, the adoption of new U.S. or international tax legislation, or
exposure to additional tax liabilities.
19

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Alphabet anticipated that revenue growth could decline and operating margin could face downward pressure.

alphabet2022and2023:86aa9de1a665b9fd0052e2c9670fc7df9ab9d384158117056dcba79275111cda · forecast

Original source, physical page 12

Our revenue growth rate could decline over time, and we anticipate downward pressure on our operating
margin in the future.

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Alphabet Inc.

Within Google Cloud, we devote significant resources to develop and deploy our enterprise-ready cloud services,
including Google Cloud Platform and Google Workspace. We are incurring costs to build and maintain infrastructure to
support cloud computing services, invest in cybersecurity, and hire talent, particularly to support and scale our sales
force. At the same time, our competitors are rapidly developing and deploying cloud-based services. Pricing and
delivery models are competitive and constantly evolving, and we may not attain sufficient scale and profitability to
achieve our business objectives. Further, our business with public sector customers may present additional risks,
including regulatory compliance risks. For instance, we may be subject to government audits and cost reviews, and
any failure to comply or any deficiencies found may expose us to legal, financial, and/or reputational risks. Evolving
laws and regulations may require us to make new capital investments, build new products, and seek partners to deliver
localized services in other countries, and we may not be able to meet sovereign operating requirements.
Within Other Bets, we are investing significantly in the areas of health, life sciences, and transportation, among
others. These investment areas face intense competition from large, experienced, and well-funded competitors, and
our offerings, many of which involve the development of new and emerging technologies, may not be successful, or be
able to compete effectively or operate at sufficient levels of profitability.
In addition, new and evolving products and services, including those that use AI, require significant investment
and raise ethical, technological, legal, regulatory, and other challenges, which may negatively affect our brands and
demand for our products and services. Because all of these investment areas are inherently risky, no assurance can
be given that such strategies and offerings will be successful or will not harm our reputation, financial condition, and
operating results.
Our revenue growth rate could decline over time, and we anticipate downward pressure on our operating
margin in the future.
Our revenue growth rate could decline over time as a result of a number of factors, including changes in the
devices and modalities used to access our products and services; changes in geographic mix; deceleration or declines
in advertiser spending; competition; customer usage and demand for our products; decreases in our pricing of our
products and services; ongoing product and policy changes; and shifts to lower priced products and services.
In addition, we may also experience downward pressure on our operating margin resulting from a variety of
factors, such as the continued expansion of our business into new fields, including products and services such as
hardware, Google Cloud, and subscription products, as well as significant investments in Other Bets, all of which may
have margins lower than those we generate from advertising. In particular, margins on our hardware products have
had, and may continue to have, an adverse affect on our consolidated margins due to pressures on pricing and higher
cost of sales. We may also experience downward pressure on our operating margins from increasing regulations,
increasing competition, and increasing costs for many aspects of our business. Further, certain of our costs and
expenses are generally less variable in nature and may not correlate to changes in revenue. Additionally, in
conjunction with our efforts to re-engineer costs, we may not be able to execute these efforts in a timely manner or
these efforts may not be successful. Due to these factors and the evolving nature of our business, our historical
revenue growth rate and historical operating margin may not be indicative of our future performance. For additional
information, see Trends in Our Business and Financial Effect and Revenues and Monetization Metrics in Part II, Item 7
of this Annual Report on Form 10-K.
Our intellectual property rights are valuable, and any inability to protect them could reduce the value of
our products, services, and brands as well as affect our ability to compete.
Our patents, trademarks, trade secrets, copyrights, and other intellectual property rights are important assets for
us. Various events outside of our control pose a threat to our intellectual property rights, as well as to our products,
services, and technologies. For example, effective intellectual property protection may not be available in every country
in which our products and services are distributed or made available through the Internet. Also, the efforts we have
taken to protect our proprietary rights may not be sufficient or effective. Although we seek to obtain patent protection
for our innovations, it is possible we may not be able to protect some of these innovations. Moreover, we may not have
adequate patent or copyright protection for certain innovations that later turn out to be important. There is always the
possibility that the scope of the protection gained will be insufficient or that an issued patent may be deemed invalid or
unenforceable.
We also seek to maintain certain intellectual property as trade secrets. The secrecy of such trade secrets and
other sensitive information could be compromised, which could cause us to lose the competitive advantage resulting
from these trade secrets. We also face risks associated with our trademarks. For example, there is a risk that the word
“Google” could become so commonly used that it becomes synonymous with the word “search.” Some courts have
ruled that "Google" is a protectable trademark, but it is possible that other courts, particularly those outside of the U.S.,

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Alphabet expected the shift from offline to online activity to continue benefiting revenue, but at a slower historical pace.

alphabet2022and2023:4e0bfe705770c85def119a70c9bef8455485d130d0534b1b3674a953881f1b17 · forecast

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The continuing shift from an offline to online world has contributed to the growth of our business and our revenues
since inception. We expect that this shift to an online world will continue to benefit our business and our revenues,
although at a slower pace than we have experienced historically, in particular after the outsized growth in our
advertising revenues during the COVID-19 pandemic.

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ITEM 7.

Alphabet Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

Please read the following discussion and analysis of our financial condition and results of operations together with
“Note about Forward-Looking Statements,” Part I, Item 1 "Business," Part I, Item 1A "Risk Factors," and our
consolidated financial statements and related notes included under Item 8 of this Annual Report on Form 10-K.
We have omitted discussion of 2020 results where it would be redundant to the discussion previously included in
Item 7 of our 2021 Annual Report on Form 10-K.
Understanding Alphabet’s Financial Results
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments,
Google Services and Google Cloud; we also report all non-Google businesses collectively as Other Bets. For further
details on our segments, see Part I, Item 1 “Business” and Note 15 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.
Trends in Our Business and Financial Effect
The following long-term trends have contributed to the results of our consolidated operations, and we anticipate
that they will continue to affect our future results:
•

Users' behaviors and advertising continue to shift online as the digital economy evolves.

The continuing shift from an offline to online world has contributed to the growth of our business and our revenues
since inception. We expect that this shift to an online world will continue to benefit our business and our revenues,
although at a slower pace than we have experienced historically, in particular after the outsized growth in our
advertising revenues during the COVID-19 pandemic. In addition, we face increasing competition for user engagement
and advertisers, which may affect our revenues.
• Users continue to access our products and services using diverse devices and modalities, which
allows for new advertising formats that may benefit our revenues but adversely affect our margins.
Our users are accessing the Internet via diverse devices and modalities, such as smartphones, wearables, and
smart home devices, and want to be able to be connected no matter where they are or what they are doing. We are
focused on expanding our products and services to stay in front of these trends in order to maintain and grow our
business.
We benefit from advertising revenues generated from different channels, including mobile, and newer advertising
formats. The margins from these channels and newer products have generally been lower than those from traditional
desktop search. Additionally, as the market for a particular device type or modality matures, our advertising revenues
may be affected. For example, growth in the global smartphone market has slowed due to various factors, including
increased market saturation in developed countries, which can affect our mobile advertising revenues.
We expect TAC paid to our distribution partners and Google Network partners to increase as our revenues grow
and TAC as a percentage of our advertising revenues ("TAC rate") to be affected by changes in device mix; geographic
mix; partner mix; partner agreement terms; the percentage of queries channeled through paid access points; product
mix; the relative revenue growth rates of advertising revenues from different channels; and revenue share terms.
We expect these trends to continue to affect our revenues and put pressure on our margins.
• As online advertising evolves, we continue to expand our product offerings, which may affect our
monetization.
As interactions between users and advertisers change, and as online user behavior evolves, we continue to
expand our product offerings to serve these changing needs, which may affect our monetization. For example,
revenues from ads on YouTube and Google Play monetize at a lower rate than our traditional search ads. We also may
develop new products incorporating AI innovations that could affect our monetization trends. Additionally, when
developing new products and services we generally focus first on user experience before prioritizing monetization.
• As users in developing economies increasingly come online, our revenues from international markets
continue to increase, and may require continued investments. In addition, movements in foreign exchange
rates affect such revenues.
The shift to online, as well as the advent of the multi-device world, has brought opportunities outside of the U.S.,
including in emerging markets, such as India. We continue to invest heavily and develop localized versions of our
products and advertising programs relevant to our users in these markets. This has led to a trend of increased

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  "excerpt": "The continuing shift from an offline to online world has contributed to the growth of our business and our revenues\nsince inception. We expect that this shift to an online world will continue to benefit our business and our revenues,\nalthough at a slower pace than we have experienced historically, in particular after the outsized growth in our\nadvertising revenues during the COVID-19 pandemic.",
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Alphabet expected traffic acquisition costs to increase with revenue growth and to pressure margins.

alphabet2022and2023:273cb5008204b74ce1fafedab5759abf0d7b75b9c03beaba90d112fe25c5bbe5 · forecast

Original source, physical page 27

We expect TAC paid to our distribution partners and Google Network partners to increase as our revenues grow
and TAC as a percentage of our advertising revenues ("TAC rate") to be affected by changes in device mix; geographic
mix; partner mix; partner agreement terms; the percentage of queries channeled through paid access points; product
mix; the relative revenue growth rates of advertising revenues from different channels; and revenue share terms.
We expect these trends to continue to affect our revenues and put pressure on our margins.

Full saved page including headers

Table of Contents

ITEM 7.

Alphabet Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

Please read the following discussion and analysis of our financial condition and results of operations together with
“Note about Forward-Looking Statements,” Part I, Item 1 "Business," Part I, Item 1A "Risk Factors," and our
consolidated financial statements and related notes included under Item 8 of this Annual Report on Form 10-K.
We have omitted discussion of 2020 results where it would be redundant to the discussion previously included in
Item 7 of our 2021 Annual Report on Form 10-K.
Understanding Alphabet’s Financial Results
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments,
Google Services and Google Cloud; we also report all non-Google businesses collectively as Other Bets. For further
details on our segments, see Part I, Item 1 “Business” and Note 15 of the Notes to Consolidated Financial Statements
included in Item 8 of this Annual Report on Form 10-K.
Trends in Our Business and Financial Effect
The following long-term trends have contributed to the results of our consolidated operations, and we anticipate
that they will continue to affect our future results:
•

Users' behaviors and advertising continue to shift online as the digital economy evolves.

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Alphabet expected developing market performance to continue affecting results, with initially lower monetization than mature markets.

alphabet2022and2023:b22e99de4d25f4636acdb02df1dfe9f5cb16106b4bacda56fbd68b5f379a7975 · forecast

Original source, physical page 28

revenues from emerging markets. We expect that our results will continue to be affected by our performance in these
markets, particularly as low-cost mobile devices become more available. This trend could affect our revenues as
developing markets initially monetize at a lower rate than more mature markets.

Full saved page including headers

Table of Contents

Alphabet Inc.

revenues from emerging markets. We expect that our results will continue to be affected by our performance in these
markets, particularly as low-cost mobile devices become more available. This trend could affect our revenues as
developing markets initially monetize at a lower rate than more mature markets.
International revenues represent a significant portion of our revenues and are subject to fluctuations in foreign
currency exchange rates relative to the U.S. dollar. While we have a foreign exchange risk management program
designed to reduce our exposure to these fluctuations, this program does not fully offset their effect on our revenues
and earnings.
• The revenues that we derive from non-advertising products and services are increasing and may
adversely affect our margins.
Non-advertising revenues have grown over time, and we expect this trend to continue as we focus on expanding
our products and services. The margins on these revenues vary significantly and are generally lower than the margins
on our advertising revenues. In particular margins on our hardware products adversely affect our consolidated margins
due to pressures on pricing and higher cost of sales.
• As we continue to serve our users and expand our businesses, we will invest heavily in operating and
capital expenditures.
We continue to make significant research and development investments in areas of strategic focus as we seek to
develop new, innovative offerings and improve our existing offerings across our businesses. We also expect to
continue to invest in our technical infrastructure, including servers, network equipment, and data centers, to support
the growth of our business and our long-term initiatives, in particular in support of AI. In addition acquisitions and
strategic investments contribute to the breadth and depth of our offerings, expand our expertise in engineering and
other functional areas, and build strong partnerships around strategic initiatives. For example, in September 2022 we
closed the acquisition of Mandiant to help expand our offerings in dynamic cyber defense and response.
• We face continuing changes in regulatory conditions, laws, and public policies, which could affect our
business practices and financial results.
Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide
range of topics and related legal matters have resulted in fines and caused us to change our business practices. As
these global trends continue, our cost of doing business may increase, our ability to pursue certain business models or
offer certain products or services may be limited, and we may need to change our business practices. Examples
include the antitrust complaints filed by the U.S. Department of Justice and a number of state Attorneys General;
pending litigation in the U.S., EU, and around the world that could diminish or eliminate safe harbor protection for
websites and online platforms; and the Digital Markets Act and Digital Services Act in Europe and various legislative
proposals in the U.S. focused on large technology platforms. For additional information see Item 1A Risk Factors and
Legal Matters in Note 10 of the Notes to Consolidated Financial Statements included in Part II, Item 8.
•

Our employees are critical to our success and we expect to continue investing in them.

Our employees are among our best assets and are critical for our continued success. We expect to continue
hiring talented employees around the globe and to provide competitive compensation programs. For additional
information see Culture and Workforce in Part I, Item 1 “Business.”
Revenues and Monetization Metrics
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers of all sizes with infrastructure and platform services as well as communication and collaboration
tools; sales of other products and services, such as apps and in-app purchases, and hardware; and fees received for
subscription-based products. For details on how we recognize revenue, see Note 1 of the Notes to Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K.
In addition to the long-term trends and their financial effect on our business noted above, fluctuations in our
revenues have been and may continue to be affected by a combination of factors, including:
•

changes in foreign currency exchange rates;

•

changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

•

general economic conditions and various external dynamics, including geopolitical events, regulations, and
other measures and their effect on advertiser, consumer, and enterprise spending;

•

new product and service launches; and

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Alphabet expected non-advertising revenue to continue growing, with generally lower margins than advertising revenue.

alphabet2022and2023:8048174b876e72eae9fa8dcbe12a7005966346f84371d60163247e10b5f2287f · forecast

Original source, physical page 28

Non-advertising revenues have grown over time, and we expect this trend to continue as we focus on expanding
our products and services. The margins on these revenues vary significantly and are generally lower than the margins
on our advertising revenues.

Full saved page including headers

Table of Contents

Alphabet Inc.

Our employees are critical to our success and we expect to continue investing in them.

Our employees are among our best assets and are critical for our continued success. We expect to continue
hiring talented employees around the globe and to provide competitive compensation programs. For additional
information see Culture and Workforce in Part I, Item 1 “Business.”
Revenues and Monetization Metrics
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers of all sizes with infrastructure and platform services as well as communication and collaboration
tools; sales of other products and services, such as apps and in-app purchases, and hardware; and fees received for
subscription-based products. For details on how we recognize revenue, see Note 1 of the Notes to Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K.
In addition to the long-term trends and their financial effect on our business noted above, fluctuations in our
revenues have been and may continue to be affected by a combination of factors, including:
•

changes in foreign currency exchange rates;

•

changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

•

general economic conditions and various external dynamics, including geopolitical events, regulations, and
other measures and their effect on advertiser, consumer, and enterprise spending;

•

new product and service launches; and

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Alphabet expected to continue investing in R&D, technical infrastructure, AI initiatives, acquisitions, and strategic investments.

alphabet2022and2023:69dee133952496e2370dc51d09786bcaba2f179e32ced14cecbcb5093aae61b6 · forecast

Original source, physical page 28

We continue to make significant research and development investments in areas of strategic focus as we seek to
develop new, innovative offerings and improve our existing offerings across our businesses. We also expect to
continue to invest in our technical infrastructure, including servers, network equipment, and data centers, to support
the growth of our business and our long-term initiatives, in particular in support of AI. In addition acquisitions and
strategic investments contribute to the breadth and depth of our offerings, expand our expertise in engineering and
other functional areas, and build strong partnerships around strategic initiatives.

Full saved page including headers

Table of Contents

Alphabet Inc.

Our employees are critical to our success and we expect to continue investing in them.

Our employees are among our best assets and are critical for our continued success. We expect to continue
hiring talented employees around the globe and to provide competitive compensation programs. For additional
information see Culture and Workforce in Part I, Item 1 “Business.”
Revenues and Monetization Metrics
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers of all sizes with infrastructure and platform services as well as communication and collaboration
tools; sales of other products and services, such as apps and in-app purchases, and hardware; and fees received for
subscription-based products. For details on how we recognize revenue, see Note 1 of the Notes to Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K.
In addition to the long-term trends and their financial effect on our business noted above, fluctuations in our
revenues have been and may continue to be affected by a combination of factors, including:
•

changes in foreign currency exchange rates;

•

changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

•

general economic conditions and various external dynamics, including geopolitical events, regulations, and
other measures and their effect on advertiser, consumer, and enterprise spending;

•

new product and service launches; and

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Alphabet expected regulatory and legal developments to increase costs, limit some business models or offerings, and require business practice changes.

alphabet2022and2023:fc4d73f9bec637abfe0e03fcc6a58f44b4873c669ff97ce5723cab95352d1383 · forecast

Original source, physical page 28

Changes in social, political, economic, tax, and regulatory conditions or in laws and policies governing a wide
range of topics and related legal matters have resulted in fines and caused us to change our business practices. As
these global trends continue, our cost of doing business may increase, our ability to pursue certain business models or
offer certain products or services may be limited, and we may need to change our business practices.

Full saved page including headers

Table of Contents

Alphabet Inc.

Our employees are critical to our success and we expect to continue investing in them.

Our employees are among our best assets and are critical for our continued success. We expect to continue
hiring talented employees around the globe and to provide competitive compensation programs. For additional
information see Culture and Workforce in Part I, Item 1 “Business.”
Revenues and Monetization Metrics
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers of all sizes with infrastructure and platform services as well as communication and collaboration
tools; sales of other products and services, such as apps and in-app purchases, and hardware; and fees received for
subscription-based products. For details on how we recognize revenue, see Note 1 of the Notes to Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K.
In addition to the long-term trends and their financial effect on our business noted above, fluctuations in our
revenues have been and may continue to be affected by a combination of factors, including:
•

changes in foreign currency exchange rates;

•

changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

•

general economic conditions and various external dynamics, including geopolitical events, regulations, and
other measures and their effect on advertiser, consumer, and enterprise spending;

•

new product and service launches; and

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Alphabet expected to continue hiring globally and providing competitive compensation programs.

alphabet2022and2023:c06d8812eb87d3879a1a16e83a0b4a82b62b6abc29c454b2dee471984bca927b · forecast

Original source, physical page 28

Our employees are among our best assets and are critical for our continued success. We expect to continue
hiring talented employees around the globe and to provide competitive compensation programs.

Full saved page including headers

Table of Contents

Alphabet Inc.

Our employees are critical to our success and we expect to continue investing in them.

Our employees are among our best assets and are critical for our continued success. We expect to continue
hiring talented employees around the globe and to provide competitive compensation programs. For additional
information see Culture and Workforce in Part I, Item 1 “Business.”
Revenues and Monetization Metrics
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide
enterprise customers of all sizes with infrastructure and platform services as well as communication and collaboration
tools; sales of other products and services, such as apps and in-app purchases, and hardware; and fees received for
subscription-based products. For details on how we recognize revenue, see Note 1 of the Notes to Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K.
In addition to the long-term trends and their financial effect on our business noted above, fluctuations in our
revenues have been and may continue to be affected by a combination of factors, including:
•

changes in foreign currency exchange rates;

•

changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives;

•

general economic conditions and various external dynamics, including geopolitical events, regulations, and
other measures and their effect on advertiser, consumer, and enterprise spending;

•

new product and service launches; and

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Alphabet reported 2022 revenue of $282.8 billion, up 10%, with Google Services up 7% and Google Cloud up 37%.

alphabet2022and2023:a67136a8f682d386be88fc2b7dbbbdedcbae0507d4f847a56989248457daf808 · reported_fact

Original source, physical page 31

Revenues were $282.8 billion, an increase of 10% year over year, primarily driven by an increase in Google
Services revenues of $16.0 billion, or 7%, and an increase in Google Cloud revenues of $7.1 billion, or 37%.

Full saved page including headers

Table of Contents

Alphabet Inc.

The main components of our sales and marketing expenses are:
•

compensation expenses for employees engaged in sales and marketing, sales support, and certain customer
service functions; and

•

spending relating to our advertising and promotional activities in support of our products and services.
The main components of our general and administrative expenses are:

•

compensation expenses for employees in finance, human resources, information technology, legal, and other
administrative support functions;

•

expenses relating to legal matters, including fines and settlements; and

•

third-party services fees, including audit, consulting, outside legal, and other outsourced administrative
services.

Other Income (Expense), Net
Other income (expense), net primarily consists of interest income (expense), the effect of foreign currency
exchange gains (losses), net gains (losses) and impairment on our marketable and non-marketable securities,
performance fees, and income (loss) and impairment from our equity method investments.
For additional details, including how we account for our investments and factors that can drive fluctuations in the
value of our investments, see Note 1 and Note 3 of the Notes to Consolidated Financial Statements included in Part II,
Item 8 of this Annual Report on Form 10-K as well as Item 7A, “Quantitative and Qualitative Disclosures About Market
Risk”.
Provision for Income Taxes
Provision for income taxes represents the estimated amount of federal, state, and foreign income taxes incurred
in the U.S. and the many jurisdictions in which we operate. The provision includes the effect of reserve provisions and
changes to reserves that are considered appropriate as well as the related net interest and penalties.
For additional details, including a reconciliation of the U.S. federal statutory rate to our effective tax rate, see Note
14 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Executive Overview
The following table summarizes our consolidated financial results (in millions, except for per share information
and percentages):
Year Ended December 31,
2021

2022

$ Change

% Change

Consolidated revenues
Change in consolidated constant currency revenues(1)

$

257,637 $

282,836 $

25,199

10 %
14 %

Cost of revenues
Operating expenses

$
$

110,939 $
67,984 $

126,203 $
81,791 $

15,264
13,807

14 %
20 %

Operating income
Operating margin

$

78,714 $
31 %

74,842 $
26 %

(3,872)

(5)%
(5)%

Other income (expense), net

$

12,020 $

(3,514) $

(15,534)

(129)%

Net income

$

76,033 $

59,972 $

(16,061)

(21)%

Diluted EPS

$

5.61 $

4.56 $

(1.05)

(19)%

(1)

See "Use of Non-GAAP Constant Currency Measures" below for details relating to our use of constant currency information.

•

Revenues were $282.8 billion, an increase of 10% year over year, primarily driven by an increase in Google
Services revenues of $16.0 billion, or 7%, and an increase in Google Cloud revenues of $7.1 billion, or 37%.

•

Total constant currency revenues, which exclude the effect of hedging, increased 14% year over year.

30

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Alphabet reported closing the Mandiant acquisition on September 12, 2022 for $6.1 billion and adding more than 2,600 employees.

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On September 12, 2022, we closed the acquisition of Mandiant for a total purchase price of $6.1 billion and
added more than 2,600 employees. Mandiant's financial results are reported within Google Cloud as of the
acquisition date.

Full saved page including headers

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Alphabet Inc.

•

Cost of revenues was $126.2 billion, an increase of 14% year over year, primarily driven by an increase in
other costs of revenues.

•

Operating expenses were $81.8 billion, an increase of 20% year over year, primarily driven by increases in
compensation expenses due to headcount growth, third-party service fees, and advertising and promotional
expenses.

Other information:
•

On September 12, 2022, we closed the acquisition of Mandiant for a total purchase price of $6.1 billion and
added more than 2,600 employees. Mandiant's financial results are reported within Google Cloud as of the
acquisition date. See Note 8 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K for additional information.

•

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retroactively adjusted to reflect the effects of the Stock Split. See Note 11 of the Notes to Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K for additional information.

•

Beginning in the first quarter of 2022, we suspended the vast majority of our commercial activities in Russia
and effectively ceased business activities of our Russian entity. The ongoing effect of these direct actions on
our financial results was not material. The broader economic effects resulting from the war in Ukraine on our
future financial results may be unpredictable.

•

Repurchases of Class A and Class C shares were $59.3 billion for the year ended December 31, 2022. See
Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form
10-K for additional information.

•

Operating cash flow was $91.5 billion for the year ended December 31, 2022.

•

Capital expenditures, which primarily reflected investments in technical infrastructure, were $31.5 billion for the
year ended December 31, 2022.

•

As of December 31, 2022, we had 190,234 employees.

Additionally, looking ahead to fiscal year 2023:
•

In January 2023, we announced a reduction of our workforce of approximately 12,000 roles. We expect to
incur employee severance and related charges of $1.9 billion to $2.3 billion, the majority of which will be
recognized in the first quarter of 2023.
In addition, we are taking actions to optimize our global office space. As a result we expect to incur exit costs
relating to office space reductions of approximately $0.5 billion in the first quarter of 2023. We may incur
additional charges in the future as we further evaluate our real estate needs.

•

In January 2023, we completed an assessment of the useful lives of our servers and network equipment,
resulting in a change in the estimated useful life of our servers and certain network equipment to six years,
which we expect to result in a reduction of depreciation of approximately $3.4 billion for the full fiscal year 2023
for assets in service as of December 31, 2022, recorded primarily in cost of revenues and R&D expenses.

•

As AI is critical to delivering our mission of bringing our breakthrough innovations into the real world, beginning
in January 2023, we will update our segment reporting relating to certain of Alphabet's AI activities. DeepMind,
previously reported within Other Bets, will be reported as part of Alphabet's corporate costs, reflecting its
increasing collaboration with Google Services, Google Cloud, and Other Bets. Prior periods will be recast to
conform to the revised presentation. See Note 15 of the Notes to Consolidated Financial Statements included
in Item 8 of this Annual Report on Form 10-K for information relating to our segments.

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Alphabet reported suspending most commercial activity in Russia beginning in the first quarter of 2022 and effectively ceasing Russian entity business activity.

alphabet2022and2023:62c852ee4faf751a6649df29eb10734d2b575f99c282a24e16a4105a8fe95073 · reported_fact

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Beginning in the first quarter of 2022, we suspended the vast majority of our commercial activities in Russia
and effectively ceased business activities of our Russian entity. The ongoing effect of these direct actions on
our financial results was not material.

Full saved page including headers

Table of Contents

Alphabet Inc.

•

Cost of revenues was $126.2 billion, an increase of 14% year over year, primarily driven by an increase in
other costs of revenues.

•

Other information:
•

•

Operating cash flow was $91.5 billion for the year ended December 31, 2022.

•

Capital expenditures, which primarily reflected investments in technical infrastructure, were $31.5 billion for the
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•

As of December 31, 2022, we had 190,234 employees.

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Alphabet reported $59.3 billion of Class A and Class C share repurchases in 2022.

alphabet2022and2023:47c200ad3bf888a299ee53fde683b94b8d9aeb83a6e2d7e479f0d580d6d22386 · reported_fact

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Repurchases of Class A and Class C shares were $59.3 billion for the year ended December 31, 2022.

Full saved page including headers

Table of Contents

Alphabet Inc.

•

Cost of revenues was $126.2 billion, an increase of 14% year over year, primarily driven by an increase in
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•

Other information:
•

•

Operating cash flow was $91.5 billion for the year ended December 31, 2022.

•

Capital expenditures, which primarily reflected investments in technical infrastructure, were $31.5 billion for the
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•

As of December 31, 2022, we had 190,234 employees.

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Alphabet reported $91.5 billion of operating cash flow in 2022.

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Operating cash flow was $91.5 billion for the year ended December 31, 2022.

Full saved page including headers

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Alphabet Inc.

•

Cost of revenues was $126.2 billion, an increase of 14% year over year, primarily driven by an increase in
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•

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•

•

Operating cash flow was $91.5 billion for the year ended December 31, 2022.

•

Capital expenditures, which primarily reflected investments in technical infrastructure, were $31.5 billion for the
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•

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Alphabet reported $31.5 billion of 2022 capital expenditures, primarily for technical infrastructure.

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Capital expenditures, which primarily reflected investments in technical infrastructure, were $31.5 billion for the
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•

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•

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•

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•

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•

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Alphabet announced a workforce reduction of approximately 12,000 roles and expected $1.9 billion to $2.3 billion of severance and related charges, mostly in the first quarter of 2023.

alphabet2022and2023:4fa98f1e33af67c1197ea84bb6975c896526b35ad0e93d5697663062ef8709c4 · forecast

Original source, physical page 32

In January 2023, we announced a reduction of our workforce of approximately 12,000 roles. We expect to
incur employee severance and related charges of $1.9 billion to $2.3 billion, the majority of which will be
recognized in the first quarter of 2023.

Full saved page including headers

Table of Contents

Alphabet Inc.

•

Cost of revenues was $126.2 billion, an increase of 14% year over year, primarily driven by an increase in
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•

Other information:
•

•

Operating cash flow was $91.5 billion for the year ended December 31, 2022.

•

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•

As of December 31, 2022, we had 190,234 employees.

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Alphabet expected approximately $0.5 billion of office space reduction exit costs in the first quarter of 2023 and noted possible additional future charges.

alphabet2022and2023:43952ad83586db758e7fba30062d411fd4a39f1f3921e1a7f5e061f7506c0fe7 · forecast

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In addition, we are taking actions to optimize our global office space. As a result we expect to incur exit costs
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additional charges in the future as we further evaluate our real estate needs.

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Alphabet changed the estimated useful life of certain servers and network equipment to six years and expected approximately $3.4 billion of lower depreciation for fiscal 2023.

alphabet2022and2023:0ddbf542a42da907a231a033da74960bd183dc70711fdeb3197cf885274a813c · forecast

Original source, physical page 32

In January 2023, we completed an assessment of the useful lives of our servers and network equipment,
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Alphabet Inc.

•

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•

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•

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•

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•

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Alphabet planned to update segment reporting for certain AI activities beginning in January 2023 and move DeepMind reporting to corporate costs.

alphabet2022and2023:190bb6d229591461e83ec0913b786ef4074e41df4c97b60cdf98510208bedf51 · forecast

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As AI is critical to delivering our mission of bringing our breakthrough innovations into the real world, beginning
in January 2023, we will update our segment reporting relating to certain of Alphabet's AI activities. DeepMind,
previously reported within Other Bets, will be reported as part of Alphabet's corporate costs, reflecting its
increasing collaboration with Google Services, Google Cloud, and Other Bets. Prior periods will be recast to
conform to the revised presentation.

Full saved page including headers

Table of Contents

Alphabet Inc.

•

Cost of revenues was $126.2 billion, an increase of 14% year over year, primarily driven by an increase in
other costs of revenues.

•

Other information:
•

•

Operating cash flow was $91.5 billion for the year ended December 31, 2022.

•

Capital expenditures, which primarily reflected investments in technical infrastructure, were $31.5 billion for the
year ended December 31, 2022.

•

As of December 31, 2022, we had 190,234 employees.

Additionally, looking ahead to fiscal year 2023:
•

•

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  "summary": "Alphabet planned to update segment reporting for certain AI activities beginning in January 2023 and move DeepMind reporting to corporate costs.",
  "excerpt": "As AI is critical to delivering our mission of bringing our breakthrough innovations into the real world, beginning\nin January 2023, we will update our segment reporting relating to certain of Alphabet's AI activities. DeepMind,\npreviously reported within Other Bets, will be reported as part of Alphabet's corporate costs, reflecting its\nincreasing collaboration with Google Services, Google Cloud, and Other Bets. Prior periods will be recast to\nconform to the revised presentation.",
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  "target_date": "beginning in January 2023",
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Alphabet reported Google Search and other revenue growth of $13.5 billion from 2021 to 2022, with growth affected by foreign exchange rates.

alphabet2022and2023:9a4dc51b8a95048ccf923851c8ece71f015a814a15a68c83380dc18f0336c28d · reported_fact

Original source, physical page 33

Google Search & other revenues increased $13.5 billion from 2021 to 2022. The growth was driven by
interrelated factors including increases in search queries resulting from growth in user adoption and usage, primarily
on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Growth was adversely affected by the unfavorable effect of foreign currency exchange rates.

Full saved page including headers

Table of Contents

Alphabet Inc.

Financial Results
Revenues
The following table presents revenues by type (in millions):
Year Ended December 31,
2021

Google Search & other
YouTube ads
Google Network

Google advertising
Google other
Google Services total
Google Cloud
Other Bets
Hedging gains (losses)
Total revenues

148,951
28,845
31,701
209,497
28,032
237,529
19,206
753
149
257,637

2022

162,450
29,243
32,780
224,473
29,055
253,528
26,280
1,068
1,960
282,836

Google Services
Google advertising revenues
Google Search & other
Google Search & other revenues increased $13.5 billion from 2021 to 2022. The growth was driven by
interrelated factors including increases in search queries resulting from growth in user adoption and usage, primarily
on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Growth was adversely affected by the unfavorable effect of foreign currency exchange rates.
YouTube ads
YouTube ads revenues increased $398 million from 2021 to 2022. The growth was driven by our brand
advertising products followed by direct response products, both of which benefited from increased spending by our
advertisers as well as improvements to ad formats and delivery. Growth was adversely affected by the unfavorable
effect of foreign currency exchange rates.
Google Network
Google Network revenues increased $1.1 billion from 2021 to 2022. The growth was primarily driven by strength
in AdSense and AdMob. Growth was adversely affected by the unfavorable effect of foreign currency exchange rates.
Monetization Metrics
Paid clicks and cost-per-click
The following table presents changes in paid clicks and cost-per-click (expressed as a percentage) from 2021 to
2022:
Paid clicks change
Cost-per-click change

10 %
(1)%

Paid clicks increased from 2021 to 2022 driven by a number of interrelated factors, including an increase in
search queries resulting from growth in user adoption and usage, primarily on mobile devices; growth in advertiser
spending; and improvements we have made in ad formats and delivery.
Cost-per-click decreased from 2021 to 2022 driven by a number of interrelated factors including changes in
device mix, geographic mix, advertiser spending, ongoing product changes, and property mix, as well as the
unfavorable effect of foreign currency exchange rates.

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  "excerpt": "Google Search & other revenues increased $13.5 billion from 2021 to 2022. The growth was driven by\ninterrelated factors including increases in search queries resulting from growth in user adoption and usage, primarily\non mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.\nGrowth was adversely affected by the unfavorable effect of foreign currency exchange rates.",
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Alphabet reported a $15.3 billion increase in cost of revenues and a 22% TAC rate in both 2021 and 2022.

alphabet2022and2023:467d10f8c81d6af39c467bc902e475ee06f67fe6a5354c86dd77566795de497f · reported_fact

Original source, physical page 35

Cost of revenues increased $15.3 billion from 2021 to 2022. The increase was due to an increase in other cost of
revenues and TAC of $11.9 billion and $3.4 billion, respectively.
The increase in TAC from 2021 to 2022 was due to an increase in TAC paid to distribution partners and to Google
Network partners, primarily driven by growth in revenues subject to TAC. The TAC rate was 22% in both 2021 and
2022.

Full saved page including headers

Table of Contents

Alphabet Inc.

Constant currency revenue percentage change is calculated by determining the change in current period
revenues over prior year comparable period revenues where current period foreign currency revenues are translated
using prior year comparable period exchange rates and hedging effects are excluded from revenues of both periods.
These results should be considered in addition to, not as a substitute for, results reported in accordance with
GAAP. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures
used by other companies and are not a measure of performance presented in accordance with GAAP.
The following table presents the foreign exchange effect on international revenues and total revenues (in millions,
except percentages):
Year Ended December 31, 2022
% Change from Prior Period
Year Ended December 31,
2021
United States

117,854

2022
$

134,814

Less FX
Effect

Constant
Currency
Revenues

As
Reported

Less
Hedging
Effect

Constant
Currency
Revenues

Less FX
Effect

$ 134,814

14 %

EMEA

79,107

82,062

(8,979)

91,041

(11)%

15 %

APAC

46,123

47,024

(3,915)

50,939

(8)%

10 %

Other Americas

14,404

16,976

(430)

17,406

18 %

(3)%

21 %

Revenues, excluding hedging effect

257,488

280,876

(13,324)

294,200

(5)%

14 %

149

1,960
$ 294,200

10 %

(5)%

14 %

Hedging gains (losses)
Total revenues(1)
(1)

257,637

282,836

Total constant currency revenues of $294.2 billion for 2022 increased $36.7 billion compared to $257.5 billion in revenues,
excluding hedging effect for 2021.

EMEA revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to
the U.S. dollar strengthening relative to the Euro and the British pound.
APAC revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to
the U.S. dollar strengthening relative to the Japanese yen and the Australian dollar.
Other Americas growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to
the U.S. dollar strengthening relative to the Argentine peso.
Costs and Expenses
Cost of Revenues
The following table presents cost of revenues, including TAC (in millions, except percentages):
Year Ended December 31,
2021

TAC
Other cost of revenues
Total cost of revenues
Total cost of revenues as a percentage of revenues

$
$

45,566 $
65,373
110,939 $
43 %

2022

48,955
77,248
126,203
45 %

Cost of revenues increased $15.3 billion from 2021 to 2022. The increase was due to an increase in other cost of
revenues and TAC of $11.9 billion and $3.4 billion, respectively.
The increase in TAC from 2021 to 2022 was due to an increase in TAC paid to distribution partners and to Google
Network partners, primarily driven by growth in revenues subject to TAC. The TAC rate was 22% in both 2021 and
2022. The TAC rate on Google Search & other revenues and the TAC rate on Google Network revenues were both
substantially consistent from 2021 to 2022.
The increase in other cost of revenues from 2021 to 2022 was primarily due to increases in data center costs and
other operations costs as well as hardware costs.

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Alphabet reported a $7.9 billion increase in R&D expenses, including $5.4 billion higher compensation expenses and $704 million higher third-party service fees.

alphabet2022and2023:39edef94bae67f42e4d6e188923de24c16e9fedb11ee692fff9cc0c81133df03 · reported_fact

Original source, physical page 36

R&D expenses increased $7.9 billion from 2021 to 2022 primarily driven by an increase in compensation
expenses of $5.4 billion, largely resulting from a 21% increase in average headcount, and an increase in third-party
service fees of $704 million.

Full saved page including headers

Table of Contents

Alphabet Inc.

Research and Development
The following table presents R&D expenses (in millions, except percentages):
Year Ended December 31,
2021

Research and development expenses
Research and development expenses as a percentage of revenues

$

31,562 $
12 %

2022

39,500
14 %

R&D expenses increased $7.9 billion from 2021 to 2022 primarily driven by an increase in compensation
expenses of $5.4 billion, largely resulting from a 21% increase in average headcount, and an increase in third-party
service fees of $704 million.
Sales and Marketing
The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
2021

Sales and marketing expenses
Sales and marketing expenses as a percentage of revenues

$

22,912 $
9%

2022

26,567
9%

Sales and marketing expenses increased $3.7 billion from 2021 to 2022, primarily driven by an increase in
compensation expenses of $1.8 billion, largely resulting from a 19% increase in average headcount, and an increase in
advertising and promotional activities of $1.3 billion.
General and Administrative
The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
2021

General and administrative expenses
General and administrative expenses as a percentage of revenues

$

13,510 $
5%

2022

15,724
6%

General and administrative expenses increased $2.2 billion from 2021 to 2022. The increase was primarily driven
by an increase in compensation expenses of $1.1 billion, largely resulting from a 21% increase in average headcount,
and an increase in third-party services fees of $815 million. In addition, there was a $551 million increase to the
allowance for credit losses for accounts receivable, as the prior year comparable period reflected a decline in the
allowance.
Segment Profitability
The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2021

Operating income (loss):
Google Services
Google Cloud
Other Bets
Corporate costs, unallocated(1)
Total income from operations
(1)

$

$

91,855 $
(3,099)
(5,281)
(4,761)
78,714 $

2022

86,572
(2,968)
(6,083)
(2,679)
74,842

Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, including
certain fines and settlements, as well as costs associated with certain shared R&D activities. Additionally, hedging gains
(losses) related to revenue are included in corporate costs and totaled $149 million and $2.0 billion in 2021 and 2022,
respectively.

Google Services
Google Services operating income decreased $5.3 billion from 2021 to 2022. The decrease in operating income
was primarily driven by increases in compensation expenses and TAC, partially offset by growth in revenues.
35

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Alphabet reported Google Services operating income decreased by $5.3 billion from 2021 to 2022.

alphabet2022and2023:bbb600571aba1f59650fe616210b726925e2e530183a8466421fc6a9cfcaadda · reported_fact

Original source, physical page 36

Google Services operating income decreased $5.3 billion from 2021 to 2022. The decrease in operating income
was primarily driven by increases in compensation expenses and TAC, partially offset by growth in revenues.

Full saved page including headers

Table of Contents

Alphabet Inc.

Research and Development
The following table presents R&D expenses (in millions, except percentages):
Year Ended December 31,
2021

Research and development expenses
Research and development expenses as a percentage of revenues

$

31,562 $
12 %

2022

39,500
14 %

R&D expenses increased $7.9 billion from 2021 to 2022 primarily driven by an increase in compensation
expenses of $5.4 billion, largely resulting from a 21% increase in average headcount, and an increase in third-party
service fees of $704 million.
Sales and Marketing
The following table presents sales and marketing expenses (in millions, except percentages):
Year Ended December 31,
2021

Sales and marketing expenses
Sales and marketing expenses as a percentage of revenues

$

22,912 $
9%

2022

26,567
9%

Sales and marketing expenses increased $3.7 billion from 2021 to 2022, primarily driven by an increase in
compensation expenses of $1.8 billion, largely resulting from a 19% increase in average headcount, and an increase in
advertising and promotional activities of $1.3 billion.
General and Administrative
The following table presents general and administrative expenses (in millions, except percentages):
Year Ended December 31,
2021

General and administrative expenses
General and administrative expenses as a percentage of revenues

$

13,510 $
5%

2022

15,724
6%

General and administrative expenses increased $2.2 billion from 2021 to 2022. The increase was primarily driven
by an increase in compensation expenses of $1.1 billion, largely resulting from a 21% increase in average headcount,
and an increase in third-party services fees of $815 million. In addition, there was a $551 million increase to the
allowance for credit losses for accounts receivable, as the prior year comparable period reflected a decline in the
allowance.
Segment Profitability
The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2021

Operating income (loss):
Google Services
Google Cloud
Other Bets
Corporate costs, unallocated(1)
Total income from operations
(1)

$

$

91,855 $
(3,099)
(5,281)
(4,761)
78,714 $

2022

86,572
(2,968)
(6,083)
(2,679)
74,842

Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, including
certain fines and settlements, as well as costs associated with certain shared R&D activities. Additionally, hedging gains
(losses) related to revenue are included in corporate costs and totaled $149 million and $2.0 billion in 2021 and 2022,
respectively.

Google Services
Google Services operating income decreased $5.3 billion from 2021 to 2022. The decrease in operating income
was primarily driven by increases in compensation expenses and TAC, partially offset by growth in revenues.
35

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Alphabet reported $113.8 billion in cash, cash equivalents, and short-term marketable securities as of December 31, 2022.

alphabet2022and2023:1c6516e7305fb27a131597e28dfedf830254f1735106f0783322324748536fa1 · reported_fact

Original source, physical page 37

As of December 31, 2022, we had $113.8 billion in cash, cash equivalents, and short-term marketable securities.

Full saved page including headers

Table of Contents

Alphabet Inc.

Google Cloud
Google Cloud operating loss decreased $131 million from 2021 to 2022. The decrease in operating loss was
primarily driven by growth in revenues, partially offset by an increase in compensation expenses.
Other Bets
Other Bets operating loss increased $802 million from 2021 to 2022. The increase in operating loss was primarily
driven by increases in compensation expenses, partially offset by growth in revenues.
Other Income (Expense), Net
The following table presents other income (expense), net, (in millions):
Year Ended December 31,
2021

Other income (expense), net

12,020

2022

(3,514)

Other income (expense), net, decreased $15.5 billion from 2021 to 2022 primarily due to changes in gains and
losses on equity securities and performance fees. In 2022, $3.2 billion of net unrealized losses were recognized on
marketable equity securities and $1.5 billion of net realized losses were recognized on debt securities. These losses
were partially offset by interest income of $2.2 billion and reversals of previously accrued performance fees related to
certain investments of $798 million. In 2021, $9.8 billion of net unrealized gains were recognized on non-marketable
equity securities and $1.5 billion of interest income was recognized, partially offset by $1.9 billion of accrued
performance fees related to certain investments.
See Note 7 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form
10-K for further information.
Provision for Income Taxes
The following table presents provision for income taxes (in millions, except for effective tax rate):
Year Ended December 31,
2021

Income before provision for income taxes
Provision for income taxes
Effective tax rate

$
$

90,734 $
14,701 $
16.2 %

2022

71,328
11,356
15.9 %

The effective tax rate decreased from 2021 to 2022, primarily driven by the effects of capitalization and
amortization of R&D expenses in 2022 as required by the 2017 Tax Cuts and Jobs Act generating an increase in the
U.S. federal Foreign Derived Intangible Income tax deduction. The decrease was partially offset by a decrease in pretax earnings, including in countries that have lower statutory rates and a decrease in the stock-based compensation
related tax benefit. See Note 14 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual
Report on Form 10-K for further information.
Financial Condition
Cash, Cash Equivalents, and Marketable Securities
As of December 31, 2022, we had $113.8 billion in cash, cash equivalents, and short-term marketable securities.
Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid
government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity
securities.
Sources, Uses of Cash, and Related Trends
Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow
that we generate from operations. The primary use of capital continues to be to invest for the long-term growth of the
business. We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to
stockholders.

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For 2022, net cash provided by operating activities was $91,495 million, net cash used in investing activities was $20,298 million, and net cash used in financing activities was $69,757 million.

alphabet2022and2023:f2b18322f6626086e6ee71cb31beb2b1af1d4ce330aac24594a835553aff27ca · reported_fact

Original source, physical page 38

The following table presents our cash flows (in millions):
Year Ended December 31,
2021

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities

$
$
$

91,652 $
(35,523) $
(61,362) $

2022

91,495
(20,298)
(69,757)

Full saved page including headers

Table of Contents

Alphabet Inc.

The following table presents our cash flows (in millions):
Year Ended December 31,
2021

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities

$
$
$

91,652 $
(35,523) $
(61,362) $

2022

91,495
(20,298)
(69,757)

Cash Provided by Operating Activities
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, Google Network properties, and YouTube properties. Additionally, we generate cash through sales of apps
and in-app purchases, and hardware; and licensing and service fees, including fees received for Google Cloud
offerings and subscription-based products.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners,
to employees for compensation, and to content providers. Other uses of cash from operating activities include
payments to suppliers for hardware, to tax authorities for income taxes, and other general corporate expenditures.
Net cash provided by operating activities decreased from 2021 to 2022 primarily due to the net effect of an
increase in cash received from revenues, offset by increases in cash paid for cost of revenues and operating expenses
and an increase in tax payments driven by the effects of capitalization and amortization of R&D expenses beginning in
2022 as required by the 2017 Tax Cuts and Jobs Act.
Cash Used in Investing Activities
Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and nonmarketable securities, purchases of property and equipment, and payments for acquisitions.
Net cash used in investing activities decreased from 2021 to 2022 as a result of a decrease in net purchases of
and maturities and sales of marketable securities, partially offset by an increase in purchases of property and
equipment.
Cash Used in Financing Activities
Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the
sale of interest in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net
payments related to stock-based award activities, and repayments of debt.
Net cash used in financing activities increased from 2021 to 2022 primarily due to an increase in repurchases of
stock.
Liquidity and Material Cash Requirements
We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and
financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and
financing activities for at least the next 12 months and thereafter for the foreseeable future.
Capital Expenditures and Leases
We make investments in land and buildings for data centers and offices and information technology assets
through purchases of property and equipment and lease arrangements to provide capacity for the growth of our
services and products.
Capital Expenditures
Our capital investments in property and equipment consist primarily of the following major categories:
•

technical infrastructure, which consists of our investments in servers and network equipment for computing,
storage, and networking requirements for ongoing business activities, including AI, (collectively referred to as
our information technology assets) and data center land and building construction; and

•

office facilities, ground-up development projects, and building improvements (also referred to as "fit-outs").

Construction in progress consists primarily of technical infrastructure and office facilities which have not yet been
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37

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Alphabet attributed the 2021 to 2022 decrease in operating cash flow primarily to higher cash paid for costs, operating expenses, and taxes, partly offset by higher cash received from revenues.

alphabet2022and2023:d23dfe068038156bf97d835dd3cb41ca5d28ec0afd36b7581e98cfaedaf33df4 · reported_fact

Original source, physical page 38

Net cash provided by operating activities decreased from 2021 to 2022 primarily due to the net effect of an
increase in cash received from revenues, offset by increases in cash paid for cost of revenues and operating expenses
and an increase in tax payments driven by the effects of capitalization and amortization of R&D expenses beginning in
2022 as required by the 2017 Tax Cuts and Jobs Act.

Full saved page including headers

Table of Contents

Alphabet Inc.

The following table presents our cash flows (in millions):
Year Ended December 31,
2021

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities

$
$
$

91,652 $
(35,523) $
(61,362) $

2022

91,495
(20,298)
(69,757)

Cash Provided by Operating Activities
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, Google Network properties, and YouTube properties. Additionally, we generate cash through sales of apps
and in-app purchases, and hardware; and licensing and service fees, including fees received for Google Cloud
offerings and subscription-based products.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners,
to employees for compensation, and to content providers. Other uses of cash from operating activities include
payments to suppliers for hardware, to tax authorities for income taxes, and other general corporate expenditures.
Net cash provided by operating activities decreased from 2021 to 2022 primarily due to the net effect of an
increase in cash received from revenues, offset by increases in cash paid for cost of revenues and operating expenses
and an increase in tax payments driven by the effects of capitalization and amortization of R&D expenses beginning in
2022 as required by the 2017 Tax Cuts and Jobs Act.
Cash Used in Investing Activities
Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and nonmarketable securities, purchases of property and equipment, and payments for acquisitions.
Net cash used in investing activities decreased from 2021 to 2022 as a result of a decrease in net purchases of
and maturities and sales of marketable securities, partially offset by an increase in purchases of property and
equipment.
Cash Used in Financing Activities
Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the
sale of interest in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net
payments related to stock-based award activities, and repayments of debt.
Net cash used in financing activities increased from 2021 to 2022 primarily due to an increase in repurchases of
stock.
Liquidity and Material Cash Requirements
We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and
financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and
financing activities for at least the next 12 months and thereafter for the foreseeable future.
Capital Expenditures and Leases
We make investments in land and buildings for data centers and offices and information technology assets
through purchases of property and equipment and lease arrangements to provide capacity for the growth of our
services and products.
Capital Expenditures
Our capital investments in property and equipment consist primarily of the following major categories:
•

technical infrastructure, which consists of our investments in servers and network equipment for computing,
storage, and networking requirements for ongoing business activities, including AI, (collectively referred to as
our information technology assets) and data center land and building construction; and

•

office facilities, ground-up development projects, and building improvements (also referred to as "fit-outs").

Construction in progress consists primarily of technical infrastructure and office facilities which have not yet been
placed in service. The time frame from date of purchase to placement in service of these assets may extend from
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alphabet2022and2023:a2a2c1d5e2ec908e3cbcaa54ee07285618403cb3ac8e297f4abf442498831f45 · forecast

Original source, physical page 38

We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and
financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and
financing activities for at least the next 12 months and thereafter for the foreseeable future.

Full saved page including headers

Table of Contents

Alphabet Inc.

The following table presents our cash flows (in millions):
Year Ended December 31,
2021

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities

$
$
$

91,652 $
(35,523) $
(61,362) $

2022

91,495
(20,298)
(69,757)

Cash Provided by Operating Activities
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, Google Network properties, and YouTube properties. Additionally, we generate cash through sales of apps
and in-app purchases, and hardware; and licensing and service fees, including fees received for Google Cloud
offerings and subscription-based products.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners,
to employees for compensation, and to content providers. Other uses of cash from operating activities include
payments to suppliers for hardware, to tax authorities for income taxes, and other general corporate expenditures.
Net cash provided by operating activities decreased from 2021 to 2022 primarily due to the net effect of an
increase in cash received from revenues, offset by increases in cash paid for cost of revenues and operating expenses
and an increase in tax payments driven by the effects of capitalization and amortization of R&D expenses beginning in
2022 as required by the 2017 Tax Cuts and Jobs Act.
Cash Used in Investing Activities
Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and nonmarketable securities, purchases of property and equipment, and payments for acquisitions.
Net cash used in investing activities decreased from 2021 to 2022 as a result of a decrease in net purchases of
and maturities and sales of marketable securities, partially offset by an increase in purchases of property and
equipment.
Cash Used in Financing Activities
Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the
sale of interest in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net
payments related to stock-based award activities, and repayments of debt.
Net cash used in financing activities increased from 2021 to 2022 primarily due to an increase in repurchases of
stock.
Liquidity and Material Cash Requirements
We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and
financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and
financing activities for at least the next 12 months and thereafter for the foreseeable future.
Capital Expenditures and Leases
We make investments in land and buildings for data centers and offices and information technology assets
through purchases of property and equipment and lease arrangements to provide capacity for the growth of our
services and products.
Capital Expenditures
Our capital investments in property and equipment consist primarily of the following major categories:
•

technical infrastructure, which consists of our investments in servers and network equipment for computing,
storage, and networking requirements for ongoing business activities, including AI, (collectively referred to as
our information technology assets) and data center land and building construction; and

•

office facilities, ground-up development projects, and building improvements (also referred to as "fit-outs").

Construction in progress consists primarily of technical infrastructure and office facilities which have not yet been
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37

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Alphabet says its land, building, and information technology investments are intended to provide capacity for growth of its services and products.

alphabet2022and2023:209e83c01abf96d5477d0686139f4e5baeb7118669569cc400597a2e2103bd62 · aspiration

Original source, physical page 38

We make investments in land and buildings for data centers and offices and information technology assets
through purchases of property and equipment and lease arrangements to provide capacity for the growth of our
services and products.

Full saved page including headers

Table of Contents

Alphabet Inc.

The following table presents our cash flows (in millions):
Year Ended December 31,
2021

Net cash provided by operating activities
Net cash used in investing activities
Net cash used in financing activities

$
$
$

91,652 $
(35,523) $
(61,362) $

2022

91,495
(20,298)
(69,757)

Cash Provided by Operating Activities
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other
properties, Google Network properties, and YouTube properties. Additionally, we generate cash through sales of apps
and in-app purchases, and hardware; and licensing and service fees, including fees received for Google Cloud
offerings and subscription-based products.
Our primary uses of cash from operating activities include payments to distribution and Google Network partners,
to employees for compensation, and to content providers. Other uses of cash from operating activities include
payments to suppliers for hardware, to tax authorities for income taxes, and other general corporate expenditures.
Net cash provided by operating activities decreased from 2021 to 2022 primarily due to the net effect of an
increase in cash received from revenues, offset by increases in cash paid for cost of revenues and operating expenses
and an increase in tax payments driven by the effects of capitalization and amortization of R&D expenses beginning in
2022 as required by the 2017 Tax Cuts and Jobs Act.
Cash Used in Investing Activities
Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and nonmarketable securities, purchases of property and equipment, and payments for acquisitions.
Net cash used in investing activities decreased from 2021 to 2022 as a result of a decrease in net purchases of
and maturities and sales of marketable securities, partially offset by an increase in purchases of property and
equipment.
Cash Used in Financing Activities
Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the
sale of interest in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net
payments related to stock-based award activities, and repayments of debt.
Net cash used in financing activities increased from 2021 to 2022 primarily due to an increase in repurchases of
stock.
Liquidity and Material Cash Requirements
We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and
financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and
financing activities for at least the next 12 months and thereafter for the foreseeable future.
Capital Expenditures and Leases
We make investments in land and buildings for data centers and offices and information technology assets
through purchases of property and equipment and lease arrangements to provide capacity for the growth of our
services and products.
Capital Expenditures
Our capital investments in property and equipment consist primarily of the following major categories:
•

technical infrastructure, which consists of our investments in servers and network equipment for computing,
storage, and networking requirements for ongoing business activities, including AI, (collectively referred to as
our information technology assets) and data center land and building construction; and

•

office facilities, ground-up development projects, and building improvements (also referred to as "fit-outs").

Construction in progress consists primarily of technical infrastructure and office facilities which have not yet been
placed in service. The time frame from date of purchase to placement in service of these assets may extend from
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37

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Capital expenditures increased from $24.6 billion in 2021 to $31.5 billion in 2022; depreciation and impairment expenses increased from $11.6 billion to $15.3 billion.

alphabet2022and2023:1297a384678141289e45a781af21e3b446a0575e4a36f4325e8483a693d84b6f · reported_fact

Original source, physical page 39

During the years ended December 31, 2021 and 2022, we spent $24.6 billion and $31.5 billion on capital
expenditures, respectively. Depreciation of our property and equipment commences when the deployment of such
assets are completed and are ready for our intended use. Land is not depreciated. For the years ended December 31,
2021 and 2022, our depreciation and impairment expenses on property and equipment were $11.6 billion and $15.3
billion, respectively.

Full saved page including headers

Table of Contents

Alphabet Inc.

phases, where we acquire qualified land and buildings, construct buildings, and secure and install information
technology assets.
During the years ended December 31, 2021 and 2022, we spent $24.6 billion and $31.5 billion on capital
expenditures, respectively. Depreciation of our property and equipment commences when the deployment of such
assets are completed and are ready for our intended use. Land is not depreciated. For the years ended December 31,
2021 and 2022, our depreciation and impairment expenses on property and equipment were $11.6 billion and $15.3
billion, respectively.
Leases
For the years ended December 31, 2021 and 2022, we recognized total operating lease assets of $3.0 billion and
$4.4 billion, respectively. As of December 31, 2022, the amount of total future lease payments under operating leases,
which had a weighted average remaining lease term of 8 years, was $17.4 billion, of which $3.0 billion is short-term. As
of December 31, 2022, we have entered into leases that have not yet commenced with future short-term and long-term
lease payments of $630 million and $3.1 billion that are not yet recorded on our Consolidated Balance Sheets. These
leases will commence between 2023 and 2026 with non-cancelable lease terms of 1 to 25 years.
For the years ended December 31, 2021 and 2022, our operating lease expenses (including variable lease costs)
were $3.4 billion and $3.7 billion, respectively. Finance lease costs were not material for the years ended
December 31, 2021 and 2022. See Note 4 of the Notes to Consolidated Financial Statements included in Item 8 of this
Annual Report on Form 10-K for further information on leases.
Financing
We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper. Net
proceeds from this program are used for general corporate purposes. As of December 31, 2022, we had no
commercial paper outstanding.
As of December 31, 2022, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2023 and
$6.0 billion expiring in April 2026. The interest rates for all credit facilities are determined based on a formula using
certain market rates, as well as our progress toward the achievement of certain sustainability goals. No amounts have
been borrowed under the credit facilities.
As of December 31, 2022, we had senior unsecured notes outstanding with a total carrying value of $12.9 billion
with short-term and long-term future interest payments of $231 million and $3.8 billion, respectively. See Note 6 of the
Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for further
information on our debt.
We primarily utilize contract manufacturers for the assembly of our servers used in our technical infrastructure
and hardware products we sell. We have agreements where we may purchase components directly from suppliers and
then supply these components to contract manufacturers for use in the assembly of the servers and hardware
products. Certain of these arrangements result in a portion of the cash received from and paid to the contract
manufacturers to be presented as financing activities in the Consolidated Statements of Cash Flows included in Item 8
of this Annual Report on From 10-K.
Share Repurchase Program
In April 2022, the Board of Directors of Alphabet authorized the company to repurchase up to $70.0 billion of its
Class A and Class C shares. As of December 31, 2022, $28.1 billion remains available for Class A and Class C share
repurchases. In accordance with the authorization of the Board of Directors of Alphabet, during 2022 we repurchased
and subsequently retired 530 million shares for $59.3 billion. Of the aggregate amount repurchased and subsequently
retired, 61 million shares were Class A stock for $6.7 billion and 469 million shares were Class C stock for $52.6 billion.
See Note 11 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
European Commission Fines
In 2017, 2018 and 2019, the EC announced decisions that certain actions taken by Google infringed European
competition law and imposed fines of €2.4 billion ($2.7 billion as of June 27, 2017), €4.3 billion ($5.1 billion as of
June 30, 2018), and €1.5 billion ($1.7 billion as of March 20, 2019), respectively. On September 14, 2022, the General
Court reduced the 2018 fine from €4.3 billion to €4.1 billion. We subsequently filed an appeal to the European Court of
Justice. In 2018 we recognized a charge of $5.1 billion for the fine, which we reduced by $217 million in 2022.
While each EC decision is under appeal, we included the fines in accrued expenses and other current liabilities
on our Consolidated Balance Sheets as we provided bank guarantees (in lieu of a cash payment) for the fines. For

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At December 31, 2022, future operating lease payments totaled $17.4 billion, including $3.0 billion short-term, with an 8-year weighted average remaining lease term.

alphabet2022and2023:cf3ee635229b40bec306b5082806ef7e5fc2d01f559d44463b0a2276e5749e03 · reported_fact

Original source, physical page 39

As of December 31, 2022, the amount of total future lease payments under operating leases,
which had a weighted average remaining lease term of 8 years, was $17.4 billion, of which $3.0 billion is short-term.

Full saved page including headers

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Alphabet Inc.

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  "category": "reported_fact",
  "summary": "At December 31, 2022, future operating lease payments totaled $17.4 billion, including $3.0 billion short-term, with an 8-year weighted average remaining lease term.",
  "excerpt": "As of December 31, 2022, the amount of total future lease payments under operating leases,\nwhich had a weighted average remaining lease term of 8 years, was $17.4 billion, of which $3.0 billion is short-term.",
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  "target_date": "December 31, 2022",
  "numeric_target": "$17.4 billion, including $3.0 billion short-term",
  "unit": "future operating lease payments",
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Leases not yet commenced had $630 million of short-term and $3.1 billion of long-term future payments, with commencement between 2023 and 2026 and non-cancelable terms of 1 to 25 years.

alphabet2022and2023:bb5f79775b43e1498230beee7a64b228d7d31aa829e58a5650c286e185325b2b · measurable_promise

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As
of December 31, 2022, we have entered into leases that have not yet commenced with future short-term and long-term
lease payments of $630 million and $3.1 billion that are not yet recorded on our Consolidated Balance Sheets. These
leases will commence between 2023 and 2026 with non-cancelable lease terms of 1 to 25 years.

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Alphabet Inc.

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Alphabet had a $10.0 billion commercial paper program with no outstanding balance and $10.0 billion of revolving credit facilities expiring in April 2023 and April 2026, with no amounts borrowed.

alphabet2022and2023:3fddeb32e1e1b3aac2a221b50ee5fb9476cd0c7475a8e57e84801ece8e44b308 · reported_fact

Original source, physical page 39

We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper. Net
proceeds from this program are used for general corporate purposes. As of December 31, 2022, we had no
commercial paper outstanding.
As of December 31, 2022, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2023 and
$6.0 billion expiring in April 2026. The interest rates for all credit facilities are determined based on a formula using
certain market rates, as well as our progress toward the achievement of certain sustainability goals. No amounts have
been borrowed under the credit facilities.

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Alphabet Inc.

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Alphabet's Board authorized up to $70.0 billion of Class A and Class C share repurchases; $28.1 billion remained available at December 31, 2022, and 530 million shares were repurchased and retired during 2022 for $59.3 billion.

alphabet2022and2023:658d72aada5fa79989b9095d94d64215b8b277abb2541b391add5f2e4890b5e2 · reported_fact

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In April 2022, the Board of Directors of Alphabet authorized the company to repurchase up to $70.0 billion of its
Class A and Class C shares. As of December 31, 2022, $28.1 billion remains available for Class A and Class C share
repurchases. In accordance with the authorization of the Board of Directors of Alphabet, during 2022 we repurchased
and subsequently retired 530 million shares for $59.3 billion.

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Alphabet reported three European Commission competition fines, with the 2018 fine reduced from €4.3 billion to €4.1 billion and the matter appealed to the European Court of Justice.

alphabet2022and2023:e565fc03bdc0fccdec9a646b3866e2c453721553f641523bcc075b676e3636b4 · challenge

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In 2017, 2018 and 2019, the EC announced decisions that certain actions taken by Google infringed European
competition law and imposed fines of €2.4 billion ($2.7 billion as of June 27, 2017), €4.3 billion ($5.1 billion as of
June 30, 2018), and €1.5 billion ($1.7 billion as of March 20, 2019), respectively. On September 14, 2022, the General
Court reduced the 2018 fine from €4.3 billion to €4.1 billion. We subsequently filed an appeal to the European Court of
Justice. In 2018 we recognized a charge of $5.1 billion for the fine, which we reduced by $217 million in 2022.

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Alphabet stated it would pay the Tax Act transition tax in annual interest-free installments through 2025; related short-term and long-term tax payables were $1.6 billion and $4.2 billion.

alphabet2022and2023:48545c09b2bfc96ecb52b266c41680f884f7fc9b170b986df50d9826b6f0f64d · measurable_promise

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As of December 31, 2022, we had short-term and long-term income taxes payable of $1.6 billion and $4.2 billion
related to a one-time transition tax payable incurred as a result of the U.S. Tax Cuts and Jobs Act ("Tax Act"). As
permitted by the Tax Act, we will pay the transition tax in annual interest-free installments through 2025.

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Alphabet Inc.

further details, see Note 10 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report
on Form 10-K.
Taxes
As of December 31, 2022, we had short-term and long-term income taxes payable of $1.6 billion and $4.2 billion
related to a one-time transition tax payable incurred as a result of the U.S. Tax Cuts and Jobs Act ("Tax Act"). As
permitted by the Tax Act, we will pay the transition tax in annual interest-free installments through 2025. We also have
taxes payable of $5.1 billion primarily related to uncertain tax positions as of December 31, 2022.
Purchase Commitments
As of December 31, 2022, we had material non-cancelable contractual obligations of $32.0 billion, of which $17.3
billion was short-term. These amounts represent the non-cancelable portion of agreements or the minimum
cancellation fee and are primarily related to commitments to purchase licenses, technical infrastructure, inventory, and
network capacity. For those agreements with variable terms, we do not estimate the non-cancelable obligation beyond
any minimum quantities and/or pricing as of December 31, 2022.
In addition we regularly enter into multi-year, non-cancellable agreements to purchase renewable energy and
energy attributes, such as renewable energy certificates. These agreements do not include a minimum dollar
commitment. The amounts to be paid under these agreements are based on the actual volumes to be generated and
are not readily determinable.
Critical Accounting Estimates
We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make
estimates and assumptions. Our critical accounting estimates are those estimates that involve a significant level of
uncertainty at the time the estimate was made, and changes in them have had or are reasonably likely to have a
material effect on our financial condition or results of operations. Accordingly, actual results could differ materially from
our estimates. We base our estimates on past experience and other assumptions that we believe are reasonable
under the circumstances, and we evaluate these estimates on an ongoing basis. We have reviewed our critical
accounting estimates with the Audit and Compliance Committee of our Board of Directors.
See Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form
10-K for a summary of significant accounting policies and the effect on our financial statements.
Fair Value Measurements of Non-Marketable Equity Securities
We measure certain financial instruments at fair value on a nonrecurring basis, consisting primarily of our nonmarketable equity securities. These investments are accounted for under the measurement alternative method ("the
measurement alternative") and are measured at cost, less impairment, subject to upward and downward adjustments
resulting from observable price changes for identical or similar investments of the same issuer. These adjustments
require quantitative assessments of the fair value of our securities, which may require the use of unobservable inputs.
Pricing adjustments are determined by using various valuation methodologies and involve the use of estimates using
the best information available, which may include cash flow projections or other available market data.
Non-marketable equity securities are also evaluated for impairment, based on qualitative factors including the
companies' financial and liquidity position and access to capital resources, among others. When indicators of
impairment exist, we prepare quantitative measurements of the fair value of our equity investments using a market
approach or an income approach, which requires judgment and the use of unobservable inputs, including discount
rates, investee revenues and costs, and comparable market data of private and public companies, among others.
When the quantitative remeasurements of fair value indicate an impairment exists, we write down the investment to its
current fair value.
We also have compensation arrangements with payouts based on realized returns from certain investments, i.e.
performance fees. We record compensation expense based on the estimated payouts on an ongoing basis, which may
result in expense recognized before investment returns are realized and compensation is paid and may require the use
of unobservable inputs.
Property and Equipment
We assess the reasonableness of the useful lives of our property and equipment periodically as well as when
other changes occur, such as when there are changes to ongoing business operations, changes in the planned use
and utilization of assets, or technological advancements, that could indicate a change in the period over which we
expect to benefit from the assets.

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At December 31, 2022, material non-cancelable contractual obligations totaled $32.0 billion, including $17.3 billion short-term, primarily for licenses, infrastructure, inventory, and network capacity.

alphabet2022and2023:f0be7ea9273b8524b9ff62750c982912cd6bafb49d682bc0578c86704d5505ff · measurable_promise

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As of December 31, 2022, we had material non-cancelable contractual obligations of $32.0 billion, of which $17.3
billion was short-term. These amounts represent the non-cancelable portion of agreements or the minimum
cancellation fee and are primarily related to commitments to purchase licenses, technical infrastructure, inventory, and
network capacity. For those agreements with variable terms, we do not estimate the non-cancelable obligation beyond
any minimum quantities and/or pricing as of December 31, 2022.

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Alphabet regularly enters multi-year, non-cancellable renewable energy and energy attribute agreements without minimum dollar commitments; amounts depend on generated volumes and are not readily determinable.

alphabet2022and2023:205340c9e381260b63e3a96e9fdf96b7c915ff36a3d6f8db09a404e4719384d5 · reported_fact

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In addition we regularly enter into multi-year, non-cancellable agreements to purchase renewable energy and
energy attributes, such as renewable energy certificates. These agreements do not include a minimum dollar
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Alphabet Inc.

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Alphabet stated that critical accounting estimates involve significant uncertainty and that actual results could differ materially from estimates.

alphabet2022and2023:06a6c1ea13b9522279470828ac8635f52f684570560ceeee97c05b28a88b79a7 · challenge

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Our critical accounting estimates are those estimates that involve a significant level of
uncertainty at the time the estimate was made, and changes in them have had or are reasonably likely to have a
material effect on our financial condition or results of operations. Accordingly, actual results could differ materially from
our estimates.

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Alphabet Inc.

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Alphabet stated that final tax outcomes could differ from recorded amounts and affect the tax provision and effective tax rate.

alphabet2022and2023:6ac738cf70efeb0443590f8d2ea039cd080ee559b18f3eb5407c6634c9042fd9 · challenge

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Although we believe we have adequately
reserved for our uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not
be different. To the extent that the final tax outcome of these matters is different than the amounts recorded, such
differences will affect the provision for income taxes and the effective tax rate in the period in which such determination
is made.

Full saved page including headers

Table of Contents

Alphabet Inc.

Income Taxes
We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating
our uncertain tax positions and determining our provision for income taxes.
Recording an uncertain tax position involves various qualitative considerations, including evaluation of
comparable and resolved tax exposures, applicability of tax laws, and likelihood of settlement. We evaluate uncertain
tax positions periodically, considering changes in facts and circumstances, such as new regulations or recent judicial
opinions, as well as the status of audit activities by taxing authorities. Although we believe we have adequately
reserved for our uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not
be different. To the extent that the final tax outcome of these matters is different than the amounts recorded, such
differences will affect the provision for income taxes and the effective tax rate in the period in which such determination
is made.
The provision for income taxes includes the effect of reserve provisions and changes to reserves that are
considered appropriate as well as the related net interest and penalties. In addition, we are subject to the continuous
examination of our income tax returns by the Internal Revenue Services (IRS) and other tax authorities which may
assert assessments against us. We regularly assess the likelihood of adverse outcomes resulting from these
examinations and assessments to determine the adequacy of our provision for income taxes.
Loss Contingencies
We are regularly subject to claims, lawsuits, regulatory and government investigations, other proceedings, and
consent orders involving competition, intellectual property, data privacy and security, tax and related compliance, labor
and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or
publishers using our platforms, personal injury consumer protection, and other matters. Certain of these matters
include speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe
that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a
loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss in Note 10 of
the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
We evaluate, on a regular basis, developments in our legal matters that could affect the amount of liability that
has been previously accrued, and the matters and related reasonably possible losses disclosed, and make
adjustments and changes to our disclosures as appropriate. Significant judgment is required to determine both the
likelihood and the estimated amount of a loss related to such matters. Until the final resolution of such matters, there
may be an exposure to loss in excess of the amount recorded, and such amounts could be material.
Change in Accounting Estimate
In January 2023, we completed an assessment of the useful lives of our servers and network equipment, resulting
in a change in the estimated useful life of our servers and certain network equipment to six years, which we expect to
result in a reduction of depreciation of approximately $3.4 billion for the full fiscal year 2023 for assets in service as of
December 31, 2022, recorded primarily in cost of revenues and R&D expenses. See Note 1 of the Notes to
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for information relating to the
useful lives of our servers and network equipment.
ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to financial market risks, including changes in foreign currency exchange rates, interest rates,
and equity investment risks.
Foreign Currency Exchange Risk
We transact business globally in multiple currencies. International revenues, as well as costs and expenses
denominated in foreign currencies, expose us to the risk of fluctuations in foreign currency exchange rates against the
U.S. dollar. Principal currencies hedged included the Australian dollar, British pound, Canadian dollar, Euro, and
Japanese yen. For the purpose of analyzing foreign currency exchange risk, we considered the historical trends in
foreign currency exchange rates and determined that it was reasonably possible that adverse changes in exchange
rates of 10% could be experienced.
We use foreign currency forward and option contracts to offset the foreign exchange risk on assets and liabilities
denominated in currencies other than the functional currency of the subsidiary. These forward and option contracts
reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on our assets and
liabilities. The foreign currency gains and losses on these assets and liabilities are recorded in other income (expense),
net, which are offset by the gains and losses on the forward and option contracts.

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Alphabet stated that unresolved legal matters may expose it to losses exceeding recorded amounts, and those amounts could be material.

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Until the final resolution of such matters, there
may be an exposure to loss in excess of the amount recorded, and such amounts could be material.

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Alphabet Inc.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Following a January 2023 assessment, Alphabet expected approximately $3.4 billion lower depreciation for full fiscal year 2023 for assets in service at December 31, 2022.

alphabet2022and2023:c47eff1f2677a935132c829eaad43e7404ccc071f633c570d496dfd12f7fa2bc · forecast

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In January 2023, we completed an assessment of the useful lives of our servers and network equipment, resulting
in a change in the estimated useful life of our servers and certain network equipment to six years, which we expect to
result in a reduction of depreciation of approximately $3.4 billion for the full fiscal year 2023 for assets in service as of
December 31, 2022, recorded primarily in cost of revenues and R&D expenses.

Full saved page including headers

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Alphabet Inc.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Alphabet's sensitivity analysis estimated that an adverse 10% foreign currency exchange rate change would have produced an approximately $136 million adverse effect on 2022 income before taxes after hedging.

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If an adverse 10% foreign currency exchange rate change was applied to total monetary assets, liabilities, and
commitments denominated in currencies other than the functional currencies at the balance sheet date, it would have
resulted in an adverse effect on income before income taxes of approximately $285 million and $136 million as of
December 31, 2021 and 2022, respectively, after consideration of the effect of foreign exchange contracts in place for
the years ended December 31, 2021 and 2022.

Full saved page including headers

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Alphabet Inc.

If an adverse 10% foreign currency exchange rate change was applied to total monetary assets, liabilities, and
commitments denominated in currencies other than the functional currencies at the balance sheet date, it would have
resulted in an adverse effect on income before income taxes of approximately $285 million and $136 million as of
December 31, 2021 and 2022, respectively, after consideration of the effect of foreign exchange contracts in place for
the years ended December 31, 2021 and 2022.
We use foreign currency forward and option contracts, including collars (an option strategy comprised of a
combination of purchased and written options) to protect forecasted U.S. dollar-equivalent earnings from changes in
foreign currency exchange rates. When the U.S. dollar strengthens, gains from foreign currency forward and option
contacts reduce the foreign currency losses related to our earnings. When the U.S. dollar weakens, losses from foreign
currency forward and option contracts offset the foreign currency gains related to our earnings. These hedging
contracts reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements. We designate
these contracts as cash flow hedges for accounting purposes. We reflect the gains or losses of foreign currency spot
rate changes as a component of accumulated other comprehensive income (AOCI) and subsequently reclassify them
into revenues to offset the hedged exposures as they occur.
If the U.S. dollar weakened by 10% as of December 31, 2021 and 2022, the amount recorded in AOCI related to
our cash flow hedges before tax effect would have been approximately $1.3 billion lower for both December 31, 2021
and 2022. The change in the value recorded in AOCI would be expected to offset a corresponding foreign currency
change in forecasted hedged revenues when recognized.
We use foreign exchange forward contracts designated as net investment hedges to hedge the foreign currency
risks related to investment in foreign subsidiaries. These forward contracts serve to offset the foreign currency
translation risk from our foreign operations.
If the U.S. dollar weakened by 10%, the amount recorded in cumulative translation adjustment (CTA) within AOCI
related to our net investment hedges before tax effect would have been approximately $975 million and $903 million
lower as of December 31, 2021 and 2022, respectively. The change in value recorded in CTA would be expected to
offset a corresponding foreign currency translation gain or loss from our investment in foreign subsidiaries.
Interest Rate Risk
Our Corporate Treasury investment strategy is to achieve a return that will allow us to preserve capital and
maintain liquidity. We invest primarily in debt securities, including government bonds, corporate debt securities,
mortgage-backed and asset-backed securities, money market and other funds, time deposits, and interest rate
derivatives. By policy, we limit the amount of credit exposure to any one issuer. Our investments in both fixed rate and
floating rate interest earning securities carry a degree of interest rate risk. Fixed rate securities may have their fair
market value adversely affected due to a rise in interest rates, while floating rate securities may produce less income
than predicted if interest rates fall. Unrealized gains or losses on our marketable debt securities are primarily due to
interest rate fluctuations as compared to interest rates at the time of purchase. For certain fixed and variable rate debt
securities, we have elected the fair value option for which changes in fair value are recorded in other income
(expense), net. We measure securities for which we have not elected the fair value option at fair value with gains and
losses recorded in AOCI until the securities are sold, less any expected credit losses.
We use value-at-risk (VaR) analysis to determine the potential effect of fluctuations in interest rates on the value
of our marketable debt security portfolio. The VaR is the expected loss in fair value, for a given confidence interval, for
our investment portfolio due to adverse movements in interest rates. We use a variance/covariance VaR model with
95% confidence interval. The estimated one-day loss in fair value of marketable debt securities as of December 31,
2021 and 2022 are shown below (in millions):
12-Month Average
As of December 31,

As of December 31,
2021

Risk category - interest rate

2022

139

2021

256

2022

148

198

Actual future gains and losses associated with our marketable debt security portfolio may differ materially from the
sensitivity analyses performed as of December 31, 2021 and 2022 due to the inherent limitations associated with
predicting the timing and amount of changes in interest rates and our actual exposures and positions. VaR analysis is
not intended to represent actual losses but is used as a risk estimation.
Equity Investment Risk
Our marketable and non-marketable equity securities are subject to a wide variety of market-related risks that
could substantially reduce or increase the fair value of our holdings.

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Corporate Treasury's investment strategy was to achieve a return that would preserve capital and maintain liquidity.

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Our Corporate Treasury investment strategy is to achieve a return that will allow us to preserve capital and
maintain liquidity.

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Alphabet Inc.

As of December 31,
2021

Risk category - interest rate

2022

139

2021

256

2022

148

198

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A hypothetical adverse 10% price change on marketable equity securities at December 31, 2022 would reduce fair value by $516 million.

alphabet2022and2023:af6168f4a1ed1412a203bcb62c7c78afdbb0e39acdb7faa401617ecb0c3244b1 · challenge

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We record marketable equity securities not accounted for under the equity method at fair value based on readily
determinable market values, of which publicly traded stocks and mutual funds are subject to market price volatility, and
represent $7.8 billion and $5.2 billion of our investments as of December 31, 2021 and 2022, respectively. A
hypothetical adverse price change of 10% on our December 31, 2022 balance would decrease the fair value of
marketable equity securities by $516 million.

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Alphabet Inc.

Our marketable equity securities are publicly traded stocks or funds and our non-marketable equity securities are
investments in privately held companies, some of which are in the startup or development stages.
We record marketable equity securities not accounted for under the equity method at fair value based on readily
determinable market values, of which publicly traded stocks and mutual funds are subject to market price volatility, and
represent $7.8 billion and $5.2 billion of our investments as of December 31, 2021 and 2022, respectively. A
hypothetical adverse price change of 10% on our December 31, 2022 balance would decrease the fair value of
marketable equity securities by $516 million. From time to time, we may enter into derivatives to hedge the market
price risk on certain of our marketable equity securities.
Our non-marketable equity securities not accounted for under the equity method are adjusted to fair value for
observable transactions for identical or similar investments of the same issuer or impairment (referred to as the
measurement alternative). The fair value measured at the time of the observable transaction is not necessarily an
indication of the current fair value as of the balance sheet date. These investments, especially those that are in the
early stages, are inherently risky because the technologies or products these companies have under development are
typically in the early phases and may never materialize, and they may experience a decline in financial condition,
which could result in a loss of a substantial part of our investment in these companies. Valuations of our equity
investments in private companies are inherently more complex due to the lack of readily available market data and
observable transactions at lower valuations could result in significant losses. In addition, global economic conditions
could result in additional volatility. The success of our investment in any private company is also typically dependent on
the likelihood of our ability to realize appreciation in the value of investments through liquidity events such as public
offerings, acquisitions, private sales or other market events. Changes in the valuation of non-marketable equity
securities may not directly correlate with changes in valuation of marketable equity securities. As of December 31,
2021 and 2022, the carrying value of our non-marketable equity securities, which were accounted for under the
measurement alternative, was $27.6 billion and $28.5 billion, respectively.
The carrying values of our equity method investments, which totaled approximately $1.5 billion as of
December 31, 2021 and 2022, generally do not fluctuate based on market price changes. However, these investments
could be impaired if the carrying value exceeds the fair value and is not expected to recover.
For further information about our equity investments, see Note 1 and Note 3 of the Notes to Consolidated
Financial Statements included in Item 8 of this Annual Report on Form 10-K.

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Alphabet expected to recognize approximately half of its revenue backlog over the next 24 months and the remainder thereafter.

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The amount and timing of revenue recognition for these
commitments is largely driven by our ability to deliver in accordance with relevant contract terms and when our
customers utilize services, which could affect our estimate of revenue backlog and when we expect to recognize such
as revenue. We expect to recognize approximately half of the revenue backlog as revenues over the next 24 months
with the remaining to be recognized thereafter.

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Table of Contents

Note 2.

Alphabet Inc.

Revenues

Disaggregated Revenues
The following table presents revenues disaggregated by type (in millions):
Year Ended December 31,
2020

Google Search & other
YouTube ads
Google Network

$

Google advertising
Google other
Google Services total
Google Cloud
Other Bets
Hedging gains (losses)
Total revenues

$

104,062
19,772
23,090
146,924
21,711
168,635
13,059
657
176
182,527

2021

$

$

148,951
28,845
31,701
209,497
28,032
237,529
19,206
753
149
257,637

2022

$

$

162,450
29,243
32,780
224,473
29,055
253,528
26,280
1,068
1,960
282,836

No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2020,
2021, or 2022.
The following table presents revenues disaggregated by geography, based on the addresses of our customers (in
millions):
Year Ended December 31,

United States
EMEA(1)
APAC(1)
Other Americas(1)
Hedging gains (losses)
Total revenues
(1)

2020

2021

2022

85,014
55,370
32,550
9,417
176
$ 182,527

47 % $ 117,854
30
79,107
18
46,123
5
14,404
0
149
100 % $ 257,637

46 % $ 134,814
31
82,062
18
47,024
5
16,976
0
1,960
100 % $ 282,836

$

48 %
29
16
6
1
100 %

Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America ("Other
Americas").

Revenue Backlog
As of December 31, 2022, we had $64.3 billion of remaining performance obligations (“revenue backlog”),
primarily related to Google Cloud. Our revenue backlog represents commitments in customer contracts for future
services that have not yet been recognized as revenue. The amount and timing of revenue recognition for these
commitments is largely driven by our ability to deliver in accordance with relevant contract terms and when our
customers utilize services, which could affect our estimate of revenue backlog and when we expect to recognize such
as revenue. We expect to recognize approximately half of the revenue backlog as revenues over the next 24 months
with the remaining to be recognized thereafter. Revenue backlog includes related deferred revenue currently recorded
as well as amounts that will be invoiced in future periods, and excludes contracts with an original expected term of one
year or less and cancellable contracts.
Deferred Revenue
We record deferred revenues when cash payments are received or due in advance of our performance, including
amounts which are refundable. Deferred revenues primarily relate to Google Cloud and Google other. Total deferred
revenue as of December 31, 2021 was $3.8 billion, of which $2.5 billion was recognized as revenues for the year
ending December 31, 2022.

59

Unchanged extraction record

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  "excerpt": "The amount and timing of revenue recognition for these\ncommitments is largely driven by our ability to deliver in accordance with relevant contract terms and when our\ncustomers utilize services, which could affect our estimate of revenue backlog and when we expect to recognize such\nas revenue. We expect to recognize approximately half of the revenue backlog as revenues over the next 24 months\nwith the remaining to be recognized thereafter.",
  "page": 60,
  "section": "Note 2. Revenues - Revenue Backlog",
  "target_date": "over the next 24 months; remaining thereafter",
  "numeric_target": "approximately half",
  "unit": "revenue backlog",
  "attribution": "Alphabet Inc.",
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Alphabet closed the Mandiant acquisition on September 12, 2022 for a total purchase price of $6.1 billion, including cash and debt.

alphabet2022and2023:f9f4ccdec77bfe7d6d50c67d37b91e2fb286984a82e964902187f3b7ba976d1e · reported_fact

Original source, physical page 73

On September 12, 2022 we closed the acquisition of Mandiant for a total purchase price of $6.1 billion,
including cash and debt.

Full saved page including headers

Table of Contents

Alphabet Inc.

Other Income (Expense), Net
Components of OI&E were as follows (in millions):
Year Ended December 31,
2020

Interest income
Interest expense(1)
Foreign currency exchange gain (loss), net
Gain (loss) on debt securities, net
Gain (loss) on equity securities, net
Performance fees
Income (loss) and impairment from equity method investments, net
Other
Other income (expense), net
(1)

$

$

2021

1,865 $
(135)
(344)
725
5,592
(609)
401
(637)
6,858 $

2022

1,499 $
(346)
(240)
(110)
12,380
(1,908)
334
411
12,020 $

2,174
(357)
(654)
(2,064)
(3,455)
798
(337)
381
(3,514)

Interest expense is net of interest capitalized of $218 million, $163 million, and $128 million for the years ended December 31,
2020, 2021, and 2022, respectively.

Note 8.

Acquisitions

Mandiant Acquisition
On September 12, 2022 we closed the acquisition of Mandiant for a total purchase price of $6.1 billion,
including cash and debt. The purchase price excludes post acquisition compensation arrangements. Mandiant's
dynamic cyber defense, threat intelligence and incident response services are expected to enhance Google Cloud's
security offerings. The financial results of Mandiant have been included within the Google Cloud segment as of the
close of the acquisition.
The purchase price was allocated as follows (in millions):
Intangible assets
Goodwill(1)
Net assets acquired(2)
Total purchase price
(1)

(2)

$

840
4,772
489
6,101

$

Goodwill was recorded in the Google Cloud segment and primarily attributable to synergies expected to arise after the
acquisition. Goodwill is not deductible for tax purposes.
Includes $706 million of acquired cash.

Intangible assets acquired as of the acquisition date were as follows:
Amount
(in millions)

Patents and developed technology
Customer relationships
Trade names and other
Total intangible assets

$

$

72

349
366
125
840

Weighted-Average
Useful Life
(in years)

4.8
8.0
5.9

Unchanged extraction record

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  "target_date": "September 12, 2022",
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Alphabet stated that Mandiant's services were expected to enhance Google Cloud's security offerings.

alphabet2022and2023:512496129d2f8f3bfc3e7a2014133d50801e38c30076c80f52815ef617a51661 · forecast

Original source, physical page 73

Mandiant's
dynamic cyber defense, threat intelligence and incident response services are expected to enhance Google Cloud's
security offerings.

Full saved page including headers

Table of Contents

Alphabet Inc.

Other Income (Expense), Net
Components of OI&E were as follows (in millions):
Year Ended December 31,
2020

Interest income
Interest expense(1)
Foreign currency exchange gain (loss), net
Gain (loss) on debt securities, net
Gain (loss) on equity securities, net
Performance fees
Income (loss) and impairment from equity method investments, net
Other
Other income (expense), net
(1)

$

$

2021

1,865 $
(135)
(344)
725
5,592
(609)
401
(637)
6,858 $

2022

1,499 $
(346)
(240)
(110)
12,380
(1,908)
334
411
12,020 $

2,174
(357)
(654)
(2,064)
(3,455)
798
(337)
381
(3,514)

Interest expense is net of interest capitalized of $218 million, $163 million, and $128 million for the years ended December 31,
2020, 2021, and 2022, respectively.

Note 8.

Acquisitions

Mandiant Acquisition
On September 12, 2022 we closed the acquisition of Mandiant for a total purchase price of $6.1 billion,
including cash and debt. The purchase price excludes post acquisition compensation arrangements. Mandiant's
dynamic cyber defense, threat intelligence and incident response services are expected to enhance Google Cloud's
security offerings. The financial results of Mandiant have been included within the Google Cloud segment as of the
close of the acquisition.
The purchase price was allocated as follows (in millions):
Intangible assets
Goodwill(1)
Net assets acquired(2)
Total purchase price
(1)

(2)

$

840
4,772
489
6,101

$

Goodwill was recorded in the Google Cloud segment and primarily attributable to synergies expected to arise after the
acquisition. Goodwill is not deductible for tax purposes.
Includes $706 million of acquired cash.

Intangible assets acquired as of the acquisition date were as follows:
Amount
(in millions)

Patents and developed technology
Customer relationships
Trade names and other
Total intangible assets

$

$

72

349
366
125
840

Weighted-Average
Useful Life
(in years)

4.8
8.0
5.9

Unchanged extraction record

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Content licensing agreements had $12.3 billion of future fixed or minimum guaranteed commitments, with the majority payable over seven years beginning in 2023.

alphabet2022and2023:b53a030e27fcef831747e0d129be4598416726805063ccb0b33c1eb9aaf7d775 · measurable_promise

Original source, physical page 74

We have content licensing agreements with future fixed or minimum guaranteed commitments of $12.3 billion as
of December 31, 2022, of which the majority will be paid over seven years commencing in 2023.

Full saved page including headers

Table of Contents

Note 9.

Alphabet Inc.

Goodwill and Other Intangible Assets

Goodwill
Changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2022 were as follows (in
millions):
Google
Services

Balance as of December 31, 2020
Acquisitions
Foreign currency translation and other adjustments
Balance as of December 31, 2021
Acquisitions
Foreign currency translation and other adjustments
Balance as of December 31, 2022

$

Google Cloud

18,517 $
1,325
(16)
19,826
1,176
(155)
20,847 $

$

Other Bets

1,957 $
382
(2)
2,337
4,876
(8)
7,205 $

Total

701 $
103
(11)
793
119
(4)
908 $

21,175
1,810
(29)
22,956
6,171
(167)
28,960

Other Intangible Assets
Information regarding intangible assets was as follows (in millions):
As of December 31, 2021

Gross
Carrying
Amount

Patents and developed
technology
Customer relationships
Trade names and other
Total definite-lived intangible
assets
Indefinite-lived intangible assets
Total intangible assets

$ 4,786
506
534
5,826
138
$ 5,964

As of December 31, 2022

Accumulated
Amortization

Net
Carrying
Amount

$

4,112
140
295

$

4,547
0
4,547

1,279
2,553
138
240
$ 1,417 $ 2,793 $

$

Gross
Carrying
Amount

Accumulated
Amortization

674 $ 1,164 $
366
862
239
527

Net
Carrying
Value

354 $
235
120

810
627
407

WeightedAverage
Remaining
Useful Life
(in years)

3.2
5.0
6.3

709
1,844
0
240
709 $ 2,084

For the year ended December 31, 2022, $4.5 billion of intangible assets that were fully amortized have been
removed from gross intangible assets and accumulated amortization.
Amortization expense relating to intangible assets was $774 million, $875 million, and $642 million for the years
ended December 31, 2020, 2021, and 2022, respectively.
Expected amortization expense of definite-lived intangible assets held as of December 31, 2022 was as follows
(in millions):
2023
2024
2025
2026
2027
Thereafter

$

$
Note 10.

463
444
314
235
152
236
1,844

Commitments and contingencies

Commitments
We have content licensing agreements with future fixed or minimum guaranteed commitments of $12.3 billion as
of December 31, 2022, of which the majority will be paid over seven years commencing in 2023.

73

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Alphabet stated that it believed antitrust complaints were without merit, would defend vigorously, and would continue cooperating with regulators.

alphabet2022and2023:cfa841578d2eab6e649226c05a2a58b6c0bf68e7be1638225b56ad94e9f1f2ac · challenge

Original source, physical page 76

We believe these complaints are without merit and will defend ourselves vigorously. We continue to cooperate
with federal and state regulators in the U.S., the EC, and other regulators around the world.

Full saved page including headers

Table of Contents

Alphabet Inc.

•

In August 2019, we began receiving civil investigative demands from the U.S. Department of Justice (DOJ)
requesting information and documents relating to our prior antitrust investigations and certain aspects of our
business. The DOJ and a number of state Attorneys General filed a lawsuit on October 20, 2020 alleging that
Google violated U.S. antitrust laws relating to Search and Search advertising. Further, in June 2022, the
Australian Competition and Consumer Commission (ACCC) and the United Kingdom's Competition and
Markets Authority (CMA) each opened an investigation into Search distribution practices.

•

On December 16, 2020, a number of state Attorneys General filed an antitrust complaint in the U.S. District
Court for the Eastern District of Texas, alleging that Google violated U.S. antitrust laws as well as state
deceptive trade laws relating to its advertising technology. Additionally, on January 24, 2023, the DOJ, along
with a number of state Attorneys General, filed an antitrust complaint alleging that Google’s digital advertising
technology products violate U.S. antitrust laws. The EC, the CMA, and the ACCC each opened a formal
investigation into Google's advertising technology business practices on June 22, 2021, May 25, 2022, and
June 29, 2022, respectively.

•

On July 7, 2021, a number of state Attorneys General filed an antitrust complaint in the U.S. District Court for
the Northern District of California, alleging that Google’s operation of Android and Google Play violated U.S.
antitrust laws and state antitrust and consumer protection laws. In May 2022, the EC and the CMA each
opened investigations into Google Play’s business practices. Korean regulators are investigating Google Play's
billing practices, most recently opening a formal review in May 2022 of Google's compliance with the new app
store billing regulations.

We believe these complaints are without merit and will defend ourselves vigorously. We continue to cooperate
with federal and state regulators in the U.S., the EC, and other regulators around the world.
Patent and Intellectual Property Claims
We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that
certain of our products, services, and technologies infringe others' intellectual property 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 features, functionalities, products, or services. As a result, we may have to change
our business practices and develop non-infringing products or technologies, which could result in a loss of revenues for
us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly
become an important forum to litigate intellectual property disputes because an ultimate loss in an ITC action can
result in a prohibition on importing infringing products into the U.S. Because the U.S. is an important market, a
prohibition on importation could have an adverse effect on us, including preventing us from importing many important
products into the U.S. or necessitating workarounds that may limit certain features of our products.
Furthermore, many of our agreements with our customers and partners require us to indemnify them against
certain intellectual property infringement claims, which would increase our costs as a result of defending such claims,
and may require that we pay significant damages if there were an adverse ruling in any such claims. In addition, our
customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions
or otherwise, which could result in loss of revenues and adversely affect our business.
Other
We are subject to claims, lawsuits, regulatory and government investigations, other proceedings, and consent
orders involving competition, intellectual property, data privacy and security, tax and related compliance, labor and
employment, commercial disputes, content generated by our users, goods and services offered by advertisers or
publishers using our platforms, personal injury, consumer protection, and other matters. For example, we currently
have a number of privacy investigations and lawsuits ongoing in multiple jurisdictions. We also periodically have data
incidents that we report to relevant regulators as required by law. Such claims, lawsuits, regulatory and government
investigations, other proceedings, and consent orders could result in substantial fines and penalties, injunctive relief,
ongoing monitoring and auditing obligations, changes to our products and services, alterations to our business models
and operations, and collateral related civil litigation or other adverse consequences, all of which could harm our
business, reputation, financial condition, and operating results.
We have ongoing legal matters relating to Russia. For example, civil judgments that include compounding
penalties have been imposed upon us in connection with disputes regarding the termination of accounts, including
those of sanctioned parties. We do not believe these ongoing legal matters will have a material adverse effect.

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  "excerpt": "We believe these complaints are without merit and will defend ourselves vigorously. We continue to cooperate\nwith federal and state regulators in the U.S., the EC, and other regulators around the world.",
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Alphabet reported that intellectual property claims could result in substantial damages, costly licensing agreements, or orders preventing certain products, features, or services.

alphabet2022and2023:479d22c3217610c69b650049d4590185c4669e180589ac2790244e556a0b2504 · challenge

Original source, physical page 76

Adverse results in these
lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders
preventing us from offering certain features, functionalities, products, or services.

Full saved page including headers

Table of Contents

Alphabet Inc.

•

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Alphabet stated that unrecognized tax benefits could decrease by approximately $1.8 billion in the next 12 months, while timing of resolution and audit closure was uncertain.

alphabet2022and2023:9abe134c31a63d00b8d7b7b40326278f3cff2ef9a3a9d325a5a2a921e9093dd2 · forecast

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Although the timing of resolution, settlement, and closure of audits is
not certain, it is reasonably possible that our unrecognized tax benefits from certain U.S. federal, state, and non U.S.
tax positions could decrease by approximately $1.8 billion in the next 12 months. Positions that may be resolved
include various U.S. and non-U.S. matters.

Full saved page including headers

Table of Contents

Alphabet Inc.

Uncertain Tax Positions
The following table summarizes the activity related to our gross unrecognized tax benefits (in millions):
Year Ended December 31,
2020

Beginning gross unrecognized tax benefits
Increases related to prior year tax positions
Decreases related to prior year tax positions
Decreases related to settlement with tax authorities
Increases related to current year tax positions
Ending gross unrecognized tax benefits

3,377 $
372
(557)
(45)
690
3,837 $

2021

3,837 $
529
(263)
(329)
1,384
5,158 $

2022

5,158
253
(437)
(140)
2,221
7,055

We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating
our uncertain tax positions and determining our provision for income taxes. The total amount of gross unrecognized tax
benefits was $3.8 billion, $5.2 billion, and $7.1 billion as of December 31, 2020, 2021, and 2022, respectively, of which
$2.6 billion, $3.7 billion, and $5.3 billion, if recognized, would affect our effective tax rate, respectively.
As of December 31, 2021 and 2022, we accrued $270 million and $346 million in interest and penalties in
provision for income taxes, respectively.
We file income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. Our two
major tax jurisdictions are the U.S. federal and Ireland. We are subject to the continuous examination of our income tax
returns by the IRS and other tax authorities. The IRS is currently examining our 2016 through 2018 tax returns. We
have also received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or
permanent establishment. We continue to defend any and all such claims as presented.
The tax years 2015 through 2021 remain subject to examination by the appropriate governmental agencies for
Irish tax purposes. There are other ongoing audits in various other jurisdictions that are not material to our financial
statements.
We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the
adequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax
authorities and the effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.
We believe that an adequate provision has been made for any adjustments that may result from tax examinations.
However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are
resolved in a manner not consistent with management's expectations, we could be required to adjust our provision for
income taxes in the period such resolutions occur. Although the timing of resolution, settlement, and closure of audits is
not certain, it is reasonably possible that our unrecognized tax benefits from certain U.S. federal, state, and non U.S.
tax positions could decrease by approximately $1.8 billion in the next 12 months. Positions that may be resolved
include various U.S. and non-U.S. matters.
Note 15.

Information about Segments and Geographic Areas

We report our segment results as Google Services, Google Cloud, and Other Bets:
•

Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps,
Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; sales of
apps and in-app purchases, and hardware; and fees received for subscription-based products such as
YouTube Premium and YouTube TV.

•

Google Cloud includes infrastructure and platform services, collaboration tools, and other services for
enterprise customers. Google Cloud generates revenues from fees received for Google Cloud Platform
services, Google Workspace communication and collaboration tools, and other enterprise services.

•

Other Bets is a combination of multiple operating segments that are not individually material. Revenues from
Other Bets are generated primarily from the sale of health technology and internet services.

Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering
activities, and hardware, as well as certain operating expenses are directly attributable to our segments. Due to the
integrated nature of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are
managed centrally at a consolidated level. The associated costs, including depreciation and impairment, are allocated
to operating segments as a service cost generally based on usage or headcount.
82

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Alphabet expected to recognize $32.8 billion of unrecognized compensation cost related to unvested RSUs over a weighted-average period of 2.6 years.

alphabet2022and2023:91ae99ec6e7a1bfee129fcea7b5f3618b68f41164e424d112f796d9bb6c553bf · forecast

Original source, physical page 80

As of December 31, 2022, there was $32.8 billion of unrecognized compensation cost related to unvested RSUs.
This amount is expected to be recognized over a weighted-average period of 2.6 years.

Full saved page including headers

Table of Contents

Note 13.

Alphabet Inc.

Compensation Plans

Stock Plans
Our stock plans include the Alphabet Amended and Restated 2021 Stock Plan ("Alphabet 2021 Stock Plan") and
Other Bet stock-based plans. Under our stock plans, RSUs and other types of awards may be granted. Under the
Alphabet 2021 Stock Plan, an RSU award is an agreement to issue shares of our Class C stock at the time the award
vests. RSUs generally vest over four years contingent upon employment on the vesting date.
As of December 31, 2022, there were 706 million shares of Class C stock reserved for future issuance under the
Alphabet 2021 Stock Plan.
Stock-Based Compensation
For the years ended December 31, 2020, 2021, and 2022, total stock-based compensation expense was $13.4
billion, $15.7 billion, and $19.5 billion, including amounts associated with awards we expect to settle in Alphabet stock
of $12.8 billion, $15.0 billion, and $18.8 billion, respectively.
For the years ended December 31, 2020, 2021, and 2022, we recognized tax benefits on total stock-based
compensation expense, which are reflected in the provision for income taxes in the Consolidated Statements of
Income, of $2.7 billion, $3.1 billion, and $3.9 billion, respectively.
For the years ended December 31, 2020, 2021, and 2022, tax benefit realized related to awards vested or
exercised during the period was $3.6 billion, $5.9 billion, and $4.7 billion, respectively. These amounts do not include
the indirect effects of stock-based awards, which primarily relate to the R&D tax credit.
Stock-Based Award Activities
The following table summarizes the activities for unvested Alphabet RSUs for the year ended December 31, 2022
(in millions, except per share amounts):
Unvested Restricted Stock Units
WeightedAverage
Grant-Date
Fair Value

Number of
Shares

Unvested as of December 31, 2021

338
227
(213)
(28)
324

Granted
Vested
Forfeited/canceled
Unvested as of December 31, 2022

$
$
$
$
$

81.31
127.22
87.53
97.10
107.98

The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2020 and
2021 was $70.40 and $97.46, respectively. Total fair value of RSUs, as of their respective vesting dates, during the
years ended December 31, 2020, 2021, and 2022, were $17.8 billion, $28.8 billion, and $23.9 billion, respectively.
As of December 31, 2022, there was $32.8 billion of unrecognized compensation cost related to unvested RSUs.
This amount is expected to be recognized over a weighted-average period of 2.6 years.
Note 14.

Income Taxes

Income from continuing operations before income taxes consisted of the following (in millions):
Year Ended December 31,
2020

Domestic operations
Foreign operations
Total

$
$

37,576
10,506
48,082

2021

$
$

77,016
13,718
90,734

2022

$
$

61,307
10,021
71,328

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In January 2023, Alphabet announced a workforce reduction of approximately 12,000 roles.

alphabet2022and2023:89afa75c6338c7c873755935118852d58599ab7de28248fda7718322753accaf · reported_fact

Original source, physical page 84

In January 2023, we announced a reduction of our workforce of approximately 12,000 roles.

Full saved page including headers

Table of Contents

Alphabet Inc.

Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and
legal, including certain fines and settlements, as well as costs associated with certain shared R&D activities.
Additionally, hedging gains (losses) related to revenue are included in corporate costs.
As AI is critical to delivering our mission of bringing our breakthrough innovations into the real world, beginning in
January 2023, we will update our segment reporting relating to certain of Alphabet's AI activities. DeepMind, previously
reported within Other Bets, will be reported as part of Alphabet's corporate costs, reflecting its increasing collaboration
with Google Services, Google Cloud, and Other Bets. Prior periods will be recast to conform to the revised
presentation.
Our operating segments are not evaluated using asset information.
The following table presents information about our segments (in millions):
Year Ended December 31,
2020

Revenues:
Google Services
Google Cloud
Other Bets
Hedging gains (losses)
Total revenues
Operating income (loss):
Google Services
Google Cloud
Other Bets
Corporate costs, unallocated
Total income from operations

$
$

2021

168,635
13,059
657
176
182,527

54,606 $
(5,607)
(4,476)
(3,299)
41,224 $

2022

237,529
19,206
753
149
257,637

253,528
26,280
1,068
1,960
282,836

91,855 $
(3,099)
(5,281)
(4,761)
78,714 $

86,572
(2,968)
(6,083)
(2,679)
74,842

For revenues by geography see Note 2.
The following table presents long-lived assets by geographic area, which includes property and equipment, net
and operating lease assets (in millions):
As of December 31,
2021

Long-lived assets:
United States
International
Total long-lived assets
Note 16.

$
$

80,207
30,351
110,558

2022

$
$

93,565
33,484
127,049

Subsequent Event

In January 2023, we announced a reduction of our workforce of approximately 12,000 roles. We expect to
incur employee severance and related charges of $1.9 billion to $2.3 billion, the majority of which will be recognized in
the first quarter of 2023.
In addition, we are taking actions to optimize our global office space. As a result we expect to incur exit costs
relating to office space reductions of approximately $0.5 billion in the first quarter of 2023. We may incur additional
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Alphabet expected employee severance and related charges of $1.9 billion to $2.3 billion, with the majority recognized in the first quarter of 2023.

alphabet2022and2023:66e8049baf39786dbd9c271a42a3db218a1f1b187d4c9c707d149cb037219f3d · forecast

Original source, physical page 84

We expect to
incur employee severance and related charges of $1.9 billion to $2.3 billion, the majority of which will be recognized in
the first quarter of 2023.

Full saved page including headers

Table of Contents

Alphabet Inc.

$
$

2021

168,635
13,059
657
176
182,527

54,606 $
(5,607)
(4,476)
(3,299)
41,224 $

2022

237,529
19,206
753
149
257,637

253,528
26,280
1,068
1,960
282,836

91,855 $
(3,099)
(5,281)
(4,761)
78,714 $

86,572
(2,968)
(6,083)
(2,679)
74,842

Long-lived assets:
United States
International
Total long-lived assets
Note 16.

$
$

80,207
30,351
110,558

2022

$
$

93,565
33,484
127,049

Subsequent Event

In January 2023, we announced a reduction of our workforce of approximately 12,000 roles. We expect to
incur employee severance and related charges of $1.9 billion to $2.3 billion, the majority of which will be recognized in
the first quarter of 2023.
In addition, we are taking actions to optimize our global office space. As a result we expect to incur exit costs
relating to office space reductions of approximately $0.5 billion in the first quarter of 2023. We may incur additional
charges in the future as we further evaluate our real estate needs.

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Alphabet expected approximately $0.5 billion of office-space exit costs in the first quarter of 2023 and warned that additional charges may arise.

alphabet2022and2023:0c6c2b257a72bae7fea6adb8df9357152d7c9df8a6402fe79cf8cc2333ac3a53 · forecast

Original source, physical page 84

In addition, we are taking actions to optimize our global office space. As a result we expect to incur exit costs
relating to office space reductions of approximately $0.5 billion in the first quarter of 2023. We may incur additional
charges in the future as we further evaluate our real estate needs.

Full saved page including headers

Table of Contents

Alphabet Inc.

$
$

2021

168,635
13,059
657
176
182,527

54,606 $
(5,607)
(4,476)
(3,299)
41,224 $

2022

237,529
19,206
753
149
257,637

253,528
26,280
1,068
1,960
282,836

91,855 $
(3,099)
(5,281)
(4,761)
78,714 $

86,572
(2,968)
(6,083)
(2,679)
74,842

Long-lived assets:
United States
International
Total long-lived assets
Note 16.

$
$

80,207
30,351
110,558

2022

$
$

93,565
33,484
127,049

Subsequent Event

In January 2023, we announced a reduction of our workforce of approximately 12,000 roles. We expect to
incur employee severance and related charges of $1.9 billion to $2.3 billion, the majority of which will be recognized in
the first quarter of 2023.
In addition, we are taking actions to optimize our global office space. As a result we expect to incur exit costs
relating to office space reductions of approximately $0.5 billion in the first quarter of 2023. We may incur additional
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Alphabet management concluded that internal control over financial reporting was effective as of December 31, 2022.

alphabet2022and2023:c5b918140a6b418448493d34b3ef6ed0a44121deefca84a4962caa01126ce93d · reported_fact

Original source, physical page 85

Based on this evaluation, management concluded that our internal control over financial reporting was effective as of
December 31, 2022. Management reviewed the results of its assessment with our Audit and Compliance Committee.

Full saved page including headers

Table of Contents

ITEM 9.

Alphabet Inc.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

None.
ITEM 9A.

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our chief executive officer and chief financial officer, evaluated the
effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the
end of the period covered by this Annual Report on Form 10-K.
Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of December 31,
2022, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to
provide reasonable assurance that information we are required to disclose in reports that we file or submit under the
Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules
and forms, and that such information is accumulated and communicated to our management, including our chief
executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting that occurred during the quarter
ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting, as defined in Rule 13a-15(f) of the Exchange Act. Our management conducted an evaluation of the
effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework).
Based on this evaluation, management concluded that our internal control over financial reporting was effective as of
December 31, 2022. Management reviewed the results of its assessment with our Audit and Compliance Committee.
The effectiveness of our internal control over financial reporting as of December 31, 2022 has been audited by Ernst &
Young LLP, an independent registered public accounting firm, as stated in its report which is included in Item 8 of this
Annual Report on Form 10-K.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls
and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the
desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there
are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible
controls and procedures relative to their costs.
ITEM 9B.

OTHER INFORMATION

As previously disclosed, Google LLC, a subsidiary of Alphabet, filed notifications with the Russian Federal
Security Service as required pursuant to Russian encryption product import controls for the purpose of enabling the
import of certain software in Russia. The information provided pursuant to Section 13(r) of the Exchange Act in Part II,
Item 5 of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 is incorporated herein by
reference.
ITEM 9C.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

84

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Item 16 states that the Form 10-K Summary is none.

alphabet2022and2023:7a34f2e413d0e349eaf0529f1d2ac553b0ca51c270e836bab46caa6b14b8ae87 · reported_fact

Original source, physical page 90

ITEM 16.

Alphabet Inc.

FORM 10-K SUMMARY

None.

Full saved page including headers

Table of Contents

ITEM 16.

Alphabet Inc.

FORM 10-K SUMMARY

None.

89

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The annual report was signed on behalf of Alphabet Inc. by Sundar Pichai, Chief Executive Officer, dated February 2, 2023.

alphabet2022and2023:d45680ffdc934f2facc7b5a9220f24e2f8b3bf6cf96f2dd3e95f6cb66d541e0a · reported_fact

Original source, physical page 91

Date: February 2, 2023
ALPHABET INC.
/S/
By:

SUNDAR PICHAI
Sundar Pichai

Chief Executive Officer
(Principal Executive Officer of the Registrant)

Full saved page including headers

Table of Contents

Alphabet Inc.

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has
duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 2, 2023
ALPHABET INC.
/S/
By:

SUNDAR PICHAI
Sundar Pichai

Chief Executive Officer
(Principal Executive Officer of the Registrant)

POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes
and appoints Sundar Pichai and Ruth M. Porat, jointly and severally, his or her attorney-in-fact, with the power of
substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and
to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange
Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or
substitutes, may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been
signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

90

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The report states that Sundar Pichai and Ruth M. Porat were appointed jointly and severally as attorneys-in-fact to sign amendments to the annual report and related filings.

alphabet2022and2023:8c31ca32375959c070eaf13a646dfa2e1d7daba27eea452cc672e23002fbbcaa · reported_fact

Original source, physical page 91

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes
and appoints Sundar Pichai and Ruth M. Porat, jointly and severally, his or her attorney-in-fact, with the power of
substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and
to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange
Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or
substitutes, may do or cause to be done by virtue hereof.

Full saved page including headers

Table of Contents

Alphabet Inc.

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has
duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 2, 2023
ALPHABET INC.
/S/
By:

SUNDAR PICHAI
Sundar Pichai

Chief Executive Officer
(Principal Executive Officer of the Registrant)

POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes
and appoints Sundar Pichai and Ruth M. Porat, jointly and severally, his or her attorney-in-fact, with the power of
substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and
to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange
Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or
substitutes, may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been
signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

90

Unchanged extraction record

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Coverage and limits

Five-year annual-source expansion. Original v1 statements and limitations remain preserved on their entries.
Automated curation and presentation proposals require analyst review.
Annual reports alone do not recover every quarterly guidance revision or original disclosure.
Composite annual-report publication metadata remains agent-reported. In particular, the FY2025 discovery used an annual-meeting listing date; it is not accepted as the original statement or first-disclosure date.
One FY2025 legal passage is a separately labeled offline source supplement, retaining the appeal sentence missing from the rejected automated candidate.
FY2026 statements embedded in the FY2025 annual report remain in evidence, outside this completed-year timeline.
Curation is explicit interpretation, not new source evidence or independent corroboration.
Quote presence is verified; semantic review status is a recorded assertion, not proof of truth.
Uncurated claims and archive gaps remain unresolved. No aggregate score or delivery rate is calculated.
Company delivery does not establish returns on capital, personal honesty, or individual causation.
Partial achievement and qualitative resolution require further structured evidence; they are not inferred.

Uncurated records, shared citations and source gaps

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    "alphabet2025:a9b2a31d90fec3f85d9c7b09d6b9b21627ce8a0910eb123a8f88d244664fde9b",
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    "alphabet2025:bbdff676591c612c061ac6e917c8b3bca5c26610e4cf3f420a2b73d96d74b6ec",
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    "alphabet2025:bf907d3094ad75a8127abac4f379bd320c30361deb8d67ed66e476de7f486da9",
    "alphabet2025:c6bf8b53bcc75a9b054ea9c88ce52ad1e680113b3603db38aa51aa9b1e09c767",
    "alphabet2025:c8e28df1fd6abed3f07decee1043d487d0dfe61ce3c3ed98bd7e3b9e2ce6af04",
    "alphabet2025:c94d677cd8261b8be14c24ff84f3c3c64a4afc868382c3bc3e3c36eb68b0f230",
    "alphabet2025:cba0b70b4428fc77b7b95159b3600c3d3e11f6b4a0edc3957ebd2cd5e8ff1fac",
    "alphabet2025:cfc9303c7d18eca32c0948b69f1ecd69d9c0d42aff2320ad471dff3fdeab5995",
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    "alphabet2025:d530ac9497b8972a88f77271f5c8456b027e4590422dcea9e2c322dfdc119af0",
    "alphabet2025:d5fd14f7243aaec605fb59f558eead7eec9ca505fe679e104e404d3eece8c17a",
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    "alphabet2025:e4208fb23f3a16177a0d9195d7ba12d1f3825f0126747622e96e3ba3b0de3af8",
    "alphabet2025:ee80348a432caba0b17b82b7ce58f98eedb22afffdb312b9c420e1c7c8c400ff",
    "alphabet2025:f625e7c471d534bc8bdeee6f42a26ac9c06cca63ae62aa7c96d3f053498eb7ba",
    "alphabet2025:f89c303837b0404083214afab8f4ae4e96cae3facfa537e30fce0ebafedc59a1",
    "alphabet2025:fbc37d88936f8ce1a0fa8b71de7d4855795ce7b2911e21ac22217d95d9633e96"
  ],
  "shared_claim_refs": {
    "alphabet2024:0089984fbe10352cdd454aa80510790044df1e19b86338785add78042933ae8c": [
      "april-2024-buyback-authorization",
      "repurchases-fy2024"
    ],
    "alphabet2022and2023:6e6f3d5fb9aef35c7485577f5dbac90f471599070e26b03c57ea6eeda51185a6": [
      "workforce-announcement-2023",
      "severance-fy2023"
    ]
  }
}

[
  {
    "id": "alphabet2024",
    "path": "../../../data/live-alphabet-2024/evidence.json",
    "sha256": "0580461ab1062107c7c45535f27d0be36adab4db36980c176c55795ef2fb9747",
    "resolved_path": "data/live-alphabet-2024/evidence.json",
    "collection_status": "partial",
    "gaps": [
      "6 candidate quotes could not be verified after parser correction"
    ]
  },
  {
    "id": "alphabet2025",
    "path": "../../../data/live-alphabet-2021-2025-additions/evidence.json",
    "sha256": "010b9c7b02fdb8a2741c3936add7ed10ac95e177c47f08980f47082695646c1c",
    "resolved_path": "data/live-alphabet-2021-2025-additions/evidence.json",
    "collection_status": "partial",
    "gaps": [
      "Date uncertainty: the issuer listing gives \"June 5, 2026\", the PDF contains \"A note from Sundar, April 2026\", and the SEC 10-K filing date is 2026-02-05. The issuer listing date is used as publication_date; the other dates are retained as evidence and are not treated as the report publication date.",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2025 Annual Report: rejected claim with unsupported excerpt or page",
      "The issuer-hosted PDF is marked April 2024, but its exact publication date is not explicit. The related SEC filing metadata records the Form 10-K filing date as 2024-01-31.",
      "Document collection failed (HTTPError, 403): https://abc.xyz/assets/14/28/9731263f4143acbaa9fcbf352be3/goog023-alphabet-2023-annual-report-web-1.pdf",
      "No usable primary report collected",
      "Document collection failed (ValueError, unclassified): https://abc.xyz/assets/investor/static/pdf/20230203_alphabet_10K.pdf",
      "No usable primary report collected",
      "Document collection failed (ValueError, unclassified): https://abc.xyz/assets/investor/static/pdf/20220202_alphabet_10K.pdf?cache=fc81690",
      "No usable primary report collected"
    ]
  },
  {
    "id": "alphabet2025supplement",
    "path": "../../../data/derived/alphabet-source-supplement-v1/evidence.json",
    "sha256": "c7b0753cb84cccd2c77888c407e2916ee23e5c5cccbdab1dc2509667cc953542",
    "resolved_path": "data/derived/alphabet-source-supplement-v1/evidence.json",
    "collection_status": "partial",
    "gaps": []
  },
  {
    "id": "alphabet2021",
    "path": "../../../data/live-alphabet-2021-recovery/evidence.json",
    "sha256": "085417f783ee96f24e7e69297c68f2ae3180c4f725494ebf409df65cf0e17ee5",
    "resolved_path": "data/live-alphabet-2021-recovery/evidence.json",
    "collection_status": "partial",
    "gaps": [
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. 2021 Annual Report on Form 10-K: rejected claim with unsupported excerpt or page"
    ]
  },
  {
    "id": "alphabet2022and2023",
    "path": "../../../data/live-alphabet-2022-2023-recovery/evidence.json",
    "sha256": "5f9ff177db1d8780b81219491bd9995d8e6d9ed15d02d28141ab3a27f08ce06e",
    "resolved_path": "data/live-alphabet-2022-2023-recovery/evidence.json",
    "collection_status": "partial",
    "gaps": [
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet 2023 Annual Report: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page",
      "Alphabet Inc. Form 10-K Annual Report for Fiscal Year Ended December 31, 2022: rejected claim with unsupported excerpt or page"
    ]
  }
]

Canonical metric definitions

[
  {
    "id": "alphabet.capital_expenditures.plan.v1",
    "definition": "Capital expenditures in the CEO letter; cash versus accrual definition unresolved.",
    "unit": "USD billion",
    "accounting_basis": null,
    "scope": "Alphabet consolidated",
    "measurement_basis": "period_total"
  },
  {
    "id": "alphabet.repurchase_authorization.v1",
    "definition": "Ceiling of additional authorized Class A and C repurchases; not cash spent.",
    "unit": "USD billion",
    "accounting_basis": "board_authorization",
    "scope": "Alphabet consolidated",
    "measurement_basis": "authorization_ceiling"
  },
  {
    "id": "alphabet.repurchase_cash.v1",
    "definition": "Reported amount spent on Class A and Class C repurchases during the fiscal year.",
    "unit": "USD billion",
    "accounting_basis": "reported_repurchase_amount",
    "scope": "Alphabet consolidated",
    "measurement_basis": "period_total"
  },
  {
    "id": "alphabet.dividend_cash.v1",
    "definition": "Total cash dividends paid to Class A, B and C stockholders in the fiscal year.",
    "unit": "USD billion",
    "accounting_basis": "cash_paid",
    "scope": "Alphabet consolidated",
    "measurement_basis": "period_total"
  },
  {
    "id": "alphabet.operating_margin.v1",
    "definition": "Consolidated operating income divided by consolidated revenue.",
    "unit": "percent",
    "accounting_basis": "US_GAAP",
    "scope": "Alphabet consolidated",
    "measurement_basis": "period_ratio"
  },
  {
    "id": "alphabet.operating_expense.v1",
    "definition": "Consolidated operating expenses, excluding cost of revenues.",
    "unit": "USD billion",
    "accounting_basis": "US_GAAP",
    "scope": "Alphabet consolidated",
    "measurement_basis": "period_total"
  },
  {
    "id": "alphabet.employees.v1",
    "definition": "Employees reported at the fiscal year end.",
    "unit": "employees",
    "accounting_basis": "reported_employee_count",
    "scope": "Alphabet consolidated",
    "measurement_basis": "point_in_time"
  },
  {
    "id": "alphabet.content_licensing_obligation.v1",
    "definition": "Future fixed or minimum guaranteed content licensing commitments outstanding.",
    "unit": "USD billion",
    "accounting_basis": "contractual_commitment",
    "scope": "Alphabet consolidated",
    "measurement_basis": "point_in_time"
  },
  {
    "id": "alphabet.capital_expenditures.reported.v1",
    "definition": "Reported annual capital expenditure spending in the annual report narrative; rounded to USD billions.",
    "unit": "USD billion",
    "accounting_basis": "reported_capex_spending",
    "scope": "Alphabet consolidated",
    "measurement_basis": "period_total"
  },
  {
    "id": "alphabet.revenue.v1",
    "definition": "Consolidated annual revenue reported under US GAAP, narrative amounts rounded to USD billions; not a run rate or segment revenue.",
    "unit": "USD billion",
    "accounting_basis": "US_GAAP",
    "scope": "Alphabet consolidated",
    "measurement_basis": "period_total"
  }
]

Curation SHA-256: 216d85ecfd0b978ded4293724aa06a7432d2eea7400e81b367a8bf779f8afc13. Prior ledger SHA-256: 901aa3bd31efc013a3964bb80078e064871e6ae1b7add90f976e5efcebeafab7