Google 8-K Google Announces First Quarter 2012 Results and Proposal for New Class of Stock

Exhibit 99.2

Google Inc.

CONSOLIDATED BALANCE SHEETS

(In millions)

	As of December 31, 2011*		As of March 31, 2012
			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	9,983	$	23,108
Marketable securities		34,643		26,208
Accounts receivable, net of allowance		5,427		5,163
Receivable under reverse repurchase agreements		745		550
Deferred income taxes, net		215		51
Prepaid revenue share, expenses and other assets		1,745		1,779
Total current assets		52,758		56,859
Prepaid revenue share, expenses and other assets, non-current		499		664
Non-marketable equity securities		790		880
Property and equipment, net		9,603		9,875
Intangible assets, net		1,578		1,541
Goodwill		7,346		7,325
Total assets	$	72,574	$	77,144
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	588	$	760
Short-term debt		1,218		2,468
Accrued compensation and benefits		1,818		1,017
Accrued expenses and other current liabilities		1,370		1,248
Accrued revenue share		1,168		1,164
Securities lending payable		2,007		2,252
Deferred revenue		547		594
Income taxes payable, net		197		239
Total current liabilities		8,913		9,742
Long-term debt		2,986		2,987
Deferred revenue, non-current		44		42
Income taxes payable, non-current		1,693		1,787
Deferred income taxes, net, non-current		287		384
Other long-term liabilities		506		490
Stockholders’ equity:
Common stock and additional paid-in capital		20,264		20,795
Accumulated other comprehensive income		276		422
Retained earnings		37,605		40,495
Total stockholders’ equity		58,145		61,712
Total liabilities and stockholders’ equity	$	72,574	$	77,144

* 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 March 31,
	2011		2012
	(unaudited)
Revenues:	$	8,575	$	10,645
Costs and expenses:
Costs of revenues(1)		2,936		3,789
Research and development(1)		1,226		1,441
Sales and marketing(1)		1,026		1,269
General and administrative(1)		591		757
Charge related to the resolution of Department of Justice investigation		500		—
Total costs and expenses		6,279		7,256
Income from operations		2,296		3,389
Interest and other income, net		96		156
Income before income taxes		2,392		3,545
Provision for income taxes		594		655
Net income	$	1,798	$	2,890
Net income per share - basic	$	5.59	$	8.88
Net income per share - diluted	$	5.51	$	8.75
Shares used in per share calculation - basic		321,527		325,299
Shares used in per share calculation - diluted		326,383		330,136
(1)      Includes stock-based compensation expense as follows:
Costs of revenues	$	49	$	74
Research and development		237		299
Sales and marketing		78		97
General and administrative		68		86

Google Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

	Three Months Ended March 31,
	2011			2012
	(unaudited)
Operating activities
Net income	$	1,798		$	2,890
Adjustments:
Depreciation and amortization of property and equipment		301			378
Amortization of intangible and other assets		100			133
Stock-based compensation expense		432			556
Excess tax benefits from stock-based award activities		(24	)		(28	)
Deferred income taxes		289			354
Gain on marketable equity securities		—			(44	)
Other		36			(24	)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable		181			301
Income taxes, net		73			143
Prepaid revenue share, expenses and other assets		(78	)		(308	)
Accounts payable		27			169
Accrued expenses and other liabilities		37			(855	)
Accrued revenue share		(33	)		(11	)
Deferred revenue		33			40
Net cash provided by operating activities		3,172			3,694
Investing activities
Purchases of property and equipment		(890	)		(607	)
Purchases of marketable securities		(7,591	)		(8,688	)
Maturities and sales of marketable securities		4,645			17,201
Investments in non-marketable equity securities		(131	)		(103	)
Cash collateral received (returned) related to securities lending		(481	)		245
Maturities of reverse repurchase agreements		175			195
Acquisitions, net of cash acquired, and purchases of intangible and other assets		(148	)		(92	)
Net cash provided by (used in) investing activities		(4,421	)		8,151
Financing activities
Net proceeds (payments) related to stock-based award activities		116			(47	)
Excess tax benefits from stock-based award activities		24			28
Proceeds from issuance of debt, net of costs		2,184			3,149
Repayments of debt		(2,435	)		(1,900	)
Net cash provided by (used in) financing activities		(111	)		1,230
Effect of exchange rate changes on cash and cash equivalents		145			50
Net increase (decrease) in cash and cash equivalents		(1,215	)		13,125
Cash and cash equivalents at beginning of period		13,630			9,983
Cash and cash equivalents at end of period	$	12,415		$	23,108

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

	Three Months Ended March 31,
	2011		2012
Advertising revenues:
Google websites	$	5,879	$	7,312
Google Network Members’ websites		2,427		2,913
Total advertising revenues		8,306		10,225
Other revenues		269		420
Revenues	$	8,575	$	10,645

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

	Three Months Ended March 31,
	2011			2012
Advertising revenues:
Google websites		69	%		69	%
Google Network Members’ websites		28	%		27	%
Total advertising revenues		97	%		96	%
Other revenues		3	%		4	%
Revenues		100	%		100	%