Google 8-K Google Announces Fourth Quarter and Fiscal Year 2010

Exhibit 99.3

Google Inc.

CONSOLIDATED BALANCE SHEETS

(In millions)

	As of December 31, 2009*		As of December 31, 2010
			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	10,198	$	13,630
Marketable securities		14,287		21,345
Accounts receivable, net of allowance		3,178		4,252
Receivable under reverse repurchase agreements		—		750
Deferred income taxes, net		644		259
Income taxes receivable, net		23		—
Prepaid revenue share, expenses and other assets		837		1,326
Total current assets		29,167		41,562
Prepaid revenue share, expenses and other assets, non-current		415		442
Deferred income taxes, net, non-current		263		265
Non-marketable equity securities		129		523
Property and equipment, net		4,845		7,759
Intangible assets, net		775		1,044
Goodwill		4,903		6,256
Total assets	$	40,497	$	57,851
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	216	$	483
Short-term debt		—		3,465
Accrued compensation and benefits		982		1,410
Accrued expenses and other current liabilities		570		961
Accrued revenue share		694		885
Securities lending payable		—		2,361
Deferred revenue		285		394
Income taxes payable, net		—		37
Total current liabilities		2,747		9,996
Deferred revenue, non-current		42		35
Income taxes payable, non-current		1,392		1,200
Other long-term liabilities		312		379
Stockholders’ equity:
Common stock and additional paid-in capital		15,817		18,235
Accumulated other comprehensive income		105		138
Retained earnings		20,082		27,868
Total stockholders’ equity		36,004		46,241
Total liabilities and stockholders’ equity	$	40,497	$	57,851

* Derived from audited financial statements.

Google Inc.

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except share amounts which are reflected in thousands and per share amounts)

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2009		2010		2009*		2010
	(unaudited)						(unaudited)
Revenues	$	6,674	$	8,440	$	23,651	$	29,321
Costs and expenses:
Cost of revenues (including stock-based compensation expense of $6, $45, $47, $67)		2,408		2,946		8,844		10,417
Research and development (including stock-based compensation expense of $179, $224, $725, $861)		736		1,051		2,843		3,762
Sales and marketing (including stock-based compensation expense of $52, $76, $231, $261)		583		902		1,984		2,799
General and administrative (including stock-based compensation expense of $39, $51, $161, $187)		466		559		1,668		1,962
Total costs and expenses		4,193		5,458		15,339		18,940
Income from operations		2,481		2,982		8,312		10,381
Interest and other income, net		88		160		69		415
Income before income taxes		2,569		3,142		8,381		10,796
Provision for income taxes		595		599		1,861		2,291
Net income	$	1,974	$	2,543	$	6,520	$	8,505
Net income per share - basic	$	6.22	$	7.95	$	20.62	$	26.69
Net income per share - diluted	$	6.13	$	7.81	$	20.41	$	26.31
Shares used in per share calculation - basic		317,237		319,946		316,221		318,702
Shares used in per share calculation - diluted		322,163		325,536		319,416		323,251

* Derived from audited financial statements.

Google Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2009			2010			2009*			2010
	(unaudited)									(unaudited)
Operating activities
Net income	$	1,974		$	2,543		$	6,520		$	8,505
Adjustments:
Depreciation and amortization of property and equipment		297			280			1,240			1,067
Amortization of intangibles and other assets		68			101			284			329
Stock-based compensation expense		276			396			1,164			1,376
Excess tax benefits from stock-based award activities		(26	)		(51	)		(90	)		(94	)
Deferred income taxes		20			(14	)		(268	)		9
Other		6			(5	)		(20	)		(12	)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable		(377	)		(673	)		(504	)		(1,129	)
Income taxes, net		120			397			217			102
Prepaid revenue share, expenses and other assets		(51	)		(59	)		262			(414	)
Accounts payable		25			(42	)		34			272
Accrued expenses and other liabilities		257			429			243			745
Accrued revenue share		101			145			158			214
Deferred revenue		41			79			76			111
Net cash provided by operating activities		2,731			3,526			9,316			11,081
Investing activities
Purchases of property and equipment		(221	)		(2,545	)		(810	)		(4,018	)
Purchases of marketable securities		(9,552	)		(6,396	)		(29,139	)		(43,985	)
Maturities and sales of marketable securities		5,087			6,730			22,103			37,099
Investments in non-marketable equity securities		(19	)		(55	)		(65	)		(320	)
Cash collateral received (returned) related to securities lending		—			(500	)		—			2,361
Investments in reverse repurchase agreements		—			125			—			(750	)
Acquisitions, net of cash acquired, and purchases of intangibles and other assets		(68	)		(208	)		(108	)		(1,067	)
Net cash used in investing activities		(4,773	)		(2,849	)		(8,019	)		(10,680	)
Financing activities
Net proceeds related to stock-based award activities		132			359			143			294
Excess tax benefits from stock-based award activities		26			51			90			94
Repurchase of common stock in connection with acquisitions		—			—			—			(801	)
Proceeds from issuance of short-term debt		—			2,702			—			5,246
Repayments of short-term debt		—			(1,360	)		—			(1,783	)
Net cash provided by financing activities		158			1,752			233			3,050
Effect of exchange rate changes on cash and cash equivalents		(5	)		(56	)		11			(19	)
Net increase (decrease) in cash and cash equivalents		(1,889	)		2,373			1,541			3,432
Cash and cash equivalents at beginning of period		12,087			11,257			8,657			10,198
Cash and cash equivalents at end of period	$	10,198		$	13,630		$	10,198		$	13,630

* Derived from audited financial statements.

The following table presents our revenues by revenue source (in millions, unaudited):

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2009		2010		2009		2010
Advertising revenues:
Google web sites	$	4,421	$	5,672	$	15,723	$	19,444
Google Network web sites		2,044		2,495		7,166		8,792
Total advertising revenues		6,465		8,167		22,889		28,236
Other revenues		209		273		762		1,085
Revenues	$	6,674	$	8,440	$	23,651	$	29,321

The following table presents our revenues, by revenue source, as a percentage of total revenues (unaudited):

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2009			2010			2009			2010
Advertising revenues:
Google web sites		66	%		67	%		67	%		66	%
Google Network web sites		31	%		30	%		30	%		30	%
Total advertising revenues		97	%		97	%		97	%		96	%
Other revenues		3	%		3	%		3	%		4	%
Revenues		100	%		100	%		100	%		100	%