Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 18, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GOOG, GOOGL | |
Entity Registrant Name | Alphabet Inc. | |
Entity Central Index Key | 1,652,044 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 298,656,198 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 46,940,340 | |
Class C Capital Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 348,952,225 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 12,658 | $ 10,715 |
Marketable securities | 90,227 | 91,156 |
Total cash, cash equivalents, and marketable securities | 102,885 | 101,871 |
Accounts receivable, net of allowance of $674 and $536 | 16,777 | 18,336 |
Income taxes receivable, net | 37 | 369 |
Inventory | 636 | 749 |
Other current assets | 3,426 | 2,983 |
Total current assets | 123,761 | 124,308 |
Non-marketable investments | 10,976 | 7,813 |
Deferred income taxes | 678 | 680 |
Property and equipment, net | 48,845 | 42,383 |
Intangible assets, net | 2,809 | 2,692 |
Goodwill | 17,862 | 16,747 |
Other non-current assets | 2,004 | 2,672 |
Total assets | 206,935 | 197,295 |
Current liabilities: | ||
Accounts payable | 3,526 | 3,137 |
Short-term debt | 1,329 | 0 |
Accrued compensation and benefits | 3,812 | 4,581 |
Accrued expenses and other current liabilities | 10,065 | 10,177 |
Accrued revenue share | 3,723 | 3,975 |
Deferred revenue | 1,596 | 1,432 |
Income taxes payable, net | 1,343 | 881 |
Total current liabilities | 25,394 | 24,183 |
Long-term debt | 3,973 | 3,969 |
Deferred revenue, non-current | 315 | 340 |
Income taxes payable, non-current | 12,885 | 12,812 |
Deferred income taxes | 394 | 430 |
Other long-term liabilities | 3,149 | 3,059 |
Total liabilities | 46,110 | 44,793 |
Commitments and Contingencies (Note 9) | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 694,783 (Class A 298,470, Class B 46,972, Class C 349,341) and 694,945 (Class A 298,652, Class B 46,940, Class C 349,353) shares issued and outstanding | 41,487 | 40,247 |
Accumulated other comprehensive loss | (670) | (992) |
Retained earnings | 120,008 | 113,247 |
Total stockholders’ equity | 160,825 | 152,502 |
Total liabilities and stockholders’ equity | $ 206,935 | $ 197,295 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance | $ 536 | $ 674 |
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 15,000,000,000 | 15,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 694,945,000 | 694,783,000 |
Common stock and capital stock, shares outstanding (in shares) | 694,945,000 | 694,783,000 |
Class A Common Stock | ||
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 298,652,000 | 298,470,000 |
Common stock and capital stock, shares outstanding (in shares) | 298,652,000 | 298,470,000 |
Class B Common Stock | ||
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 46,940,000 | 46,972,000 |
Common stock and capital stock, shares outstanding (in shares) | 46,940,000 | 46,972,000 |
Class C Capital Stock | ||
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 349,353,000 | 349,341,000 |
Common stock and capital stock, shares outstanding (in shares) | 349,353,000 | 349,341,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 31,146 | $ 24,750 |
Costs and expenses: | ||
Cost of revenues | 13,467 | 9,795 |
Research and development | 5,039 | 3,942 |
Sales and marketing | 3,604 | 2,644 |
General and administrative | 2,035 | 1,801 |
Total costs and expenses | 24,145 | 18,182 |
Income from operations | 7,001 | 6,568 |
Other income (expense), net | 3,542 | 251 |
Income before income taxes | 10,543 | 6,819 |
Provision for income taxes | 1,142 | 1,393 |
Net income | $ 9,401 | $ 5,426 |
Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 13.53 | $ 7.85 |
Diluted net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 13.33 | $ 7.73 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,401 | $ 5,426 |
Other comprehensive income: | ||
Change in foreign currency translation adjustment | 657 | 451 |
Available-for-sale investments: | ||
Change in net unrealized gains (losses) | (208) | 139 |
Less: reclassification adjustment for net (gains) losses included in net income | 39 | 25 |
Net change (net of tax effect of $0 and $0) | (169) | 164 |
Cash flow hedges: | ||
Change in net unrealized gains (losses) | (262) | (229) |
Less: reclassification adjustment for net (gains) losses included in net income | 194 | (153) |
Net change (net of tax effect of $149 and $12) | (68) | (382) |
Other comprehensive income | 420 | 233 |
Comprehensive income | $ 9,821 | $ 5,659 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Tax expense (benefit) related to available-for-sale investments | $ 0 | $ 0 |
Tax expense (benefit) related to cash flow hedges | $ 12 | $ (149) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 9,401 | $ 5,426 |
Adjustments: | ||
Depreciation and impairment of property and equipment | 1,791 | 1,287 |
Amortization and impairment of intangible assets | 195 | 216 |
Stock-based compensation expense | 2,457 | 2,009 |
Deferred income taxes | (18) | 613 |
(Gain) loss on debt and equity securities, net | (2,992) | 19 |
Other | (257) | 57 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 1,700 | 1,267 |
Income taxes, net | 782 | 510 |
Other assets | (241) | (128) |
Accounts payable | 122 | 103 |
Accrued expenses and other liabilities | (1,142) | (1,868) |
Accrued revenue share | (286) | (74) |
Deferred revenue | 130 | 111 |
Net cash provided by operating activities | 11,642 | 9,548 |
Investing activities | ||
Purchases of property and equipment | (7,299) | (2,508) |
Proceeds from disposals of property and equipment | 30 | 41 |
Purchases of marketable securities | (8,849) | (20,119) |
Maturities and sales of marketable securities | 9,351 | 19,362 |
Purchases of non-marketable investments | (327) | (354) |
Maturities and sales of non-marketable investments | 498 | 78 |
Acquisitions, net of cash acquired, and purchases of intangible assets | (1,250) | (101) |
Proceeds from collection of notes receivable | 0 | 750 |
Net cash used in investing activities | (7,846) | (2,851) |
Financing activities | ||
Net payments related to stock-based award activities | (1,158) | (1,009) |
Repurchases of capital stock | (2,173) | (1,127) |
Proceeds from issuance of debt, net of costs | 4,691 | 0 |
Repayments of debt | (3,378) | (18) |
Proceeds from sale of subsidiary shares | 0 | 480 |
Net cash used in financing activities | (2,018) | (1,674) |
Effect of exchange rate changes on cash and cash equivalents | 165 | 191 |
Net increase in cash and cash equivalents | 1,943 | 5,214 |
Cash and cash equivalents at beginning of period | 10,715 | 12,918 |
Cash and cash equivalents at end of period | $ 12,658 | $ 18,132 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and 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 primarily by delivering relevant, cost-effective online advertising. Basis of Consolidation The consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the variable interest and voting models. All intercompany balances and transactions have been eliminated. Unaudited Interim Financial Information The Consolidated Balance Sheets as of March 31, 2018 , the Consolidated Statements of Income for the three months ended March 31, 2017 and 2018 , the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2018 , and the Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2018 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of March 31, 2018 , our results of operations for the three months ended March 31, 2017 and 2018 , and our cash flows for the three months ended March 31, 2017 and 2018 . The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 . These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the SEC on February 5, 2018. 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. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable, sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Fair Value of Financial Instruments Our financial assets and liabilities that are measured at fair value on a recurring basis include cash equivalents, marketable securities, derivative contracts, and non-marketable debt securities. Our financial assets that are measured at fair value on a nonrecurring basis include non-marketable equity securities measured at fair value when observable price changes are identified or are impaired. Other financial assets and liabilities are carried at cost with fair value disclosed, if required. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 - Unobservable inputs that are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease requirements in Accounting Standards Codification (ASC) Topic 840, "Leases." Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. As currently issued, entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. There are additional optional practical expedients that an entity may elect to apply. Based on our current portfolio of leases, approximately $8 billion of lease assets and liabilities would be recognized on our balance sheet, primarily relating to real estate. We are in the process of implementing changes to our systems and processes in conjunction with our review of lease agreements. We will adopt Topic 842 effective January 1, 2019 and expect to elect certain available transitional practical expedients. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. We are currently in the process of evaluating the effect of the adoption of ASU 2016-13 on our consolidated financial statements. Recently adopted accounting pronouncements In January 2016, the FASB issued Accounting Standards Update No. 2016-01 (ASU 2016-01) "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. We adopted ASU 2016-01 as of January 1, 2018 using the modified retrospective method for our marketable equity securities and the prospective method for our non-marketable equity securities. This resulted in a $98 million reclassification of net unrealized gains from accumulated other comprehensive income (AOCI) to opening retained earnings. We have elected to use the measurement alternative for our non-marketable equity securities, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. The adoption of ASU 2016-01 increases the volatility of our other income (expense), net, as a result of the remeasurement of our equity securities. For further information on unrealized gains from equity securities, see Note 3 . In October 2016, the FASB issued Accounting Standards Update No. 2016-16 (ASU 2016-16) "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory." ASU 2016-16 generally accelerates the recognition of income tax consequences for asset transfers between entities under common control. We adopted ASU 2016-16 as of January 1, 2018 using a modified retrospective transition method, resulting in a $701 million reclassification of unrecognized income tax effects related to asset transfers that occurred prior to adoption from other current and non-current assets to opening retained earnings. Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenues | Revenues Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table presents our revenues disaggregated by revenue source (in millions, unaudited). Sales and usage-based taxes are excluded from revenues. Three Months Ended March 31, 2017 2018 Google properties $ 17,403 $ 21,998 Google Network Members' properties 4,008 4,644 Google advertising revenues 21,411 26,642 Google other revenues 3,207 4,354 Other Bets revenues 132 150 Total revenues (1) $ 24,750 $ 31,146 (1) Revenues include hedging gains (losses) of $217 million and $(239) million for the three months ended March 31, 2017 and 2018 , respectively, which do not represent revenues recognized from contracts with customers. The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in millions, unaudited): Three Months Ended March 31, 2017 2018 United States $ 11,769 $ 14,144 EMEA (1) 8,091 10,474 APAC (1) 3,619 4,804 Other Americas (1) 1,271 1,724 Total revenues (2) $ 24,750 $ 31,146 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas). (2) Revenues include hedging gains (losses) for the three months ended March 31, 2017 and 2018 . Advertising Revenues We generate revenues primarily by delivering advertising on Google properties and Google Network Members’ properties. Google properties revenues consist primarily of advertising revenues generated on Google.com, the Google Search app, and other Google owned and operated properties like Gmail, Google Maps, Google Play, and YouTube. Google Network Members’ properties revenues consist primarily of advertising revenues generated on Google Network Members’ properties. Our customers generally purchase advertising inventory through AdWords, DoubleClick AdExchange, and DoubleClick Bid Manager, among others. We offer advertising on a cost-per-click basis, which means that an advertiser pays us only when a user clicks on an ad on Google properties or Google Network Members' properties or when a user views certain YouTube engagement ads. For these customers, we recognize revenue each time a user clicks on the ad or when a user views the ad for a specified period of time. We also offer advertising on other bases such as cost-per-impression, which means an advertiser pays us based on the number of times their ads are displayed on Google properties or Google Network Members’ properties. For these customers, we recognize revenue each time an ad is displayed. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. For ads placed on Google Network Members’ properties, we evaluate whether we are the principal (i.e., report revenues on a gross basis) or agent (i.e., report revenues on a net basis). Generally, we report advertising revenues for ads placed on Google Network Members’ properties on a gross basis, that is, the amounts billed to our customers are recorded as revenues, and amounts paid to Google Network Members are recorded as cost of revenues. Where we are the principal, we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory before it is transferred to our customers, and is further supported by us being primarily responsible to our customers and having a level of discretion in establishing pricing. Other Revenues Google other revenues and Other Bets revenues consist primarily of revenues from: • Apps, in-app purchases, and digital content in the Google Play store; • Google Cloud offerings; • Hardware; and • Other miscellaneous products and services. As it relates to Google other revenues, the most significant judgment is determining whether we are the principal or agent for app sales and in-app purchases through the Google Play store. We report revenues from these transactions on a net basis because our performance obligation is to facilitate a transaction between app developers and end users, for which we earn a commission. Consequently, the portion of the gross amount billed to end users that is remitted to app developers is not reflected as revenues. Arrangements with Multiple Performance Obligations Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost plus margin. Deferred Revenues We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. The increase in the deferred revenue balance for the three months ended March 31, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $647 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2017 . Our payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Debt Securities We classify our marketable debt securities 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. We reclassified our U.S. government notes included in marketable debt securities from Level 1 to Level 2 within the fair value hierarchy as these securities are priced based on a combination of quoted prices for identical or similar instruments in active markets and models with significant observable market inputs. Prior period amounts have been reclassified to conform with current period presentation. The vast majority of our government bond holdings are highly liquid U.S. government notes. We classify our non-marketable debt securities as Level 3 in the fair value hierarchy because they are primarily preferred stock and convertible notes issued by private companies without quoted market prices. To estimate the fair value of our non-marketable debt securities, we use a combination of valuation methodologies, including market and income approaches based on prior transaction prices; estimated timing, probability, and amount of cash flows; and illiquidity considerations. Financial information of private companies may not be available and consequently we will estimate the fair value based on the best available information at the measurement date. The following tables summarize our debt securities by significant investment categories as of December 31, 2017 and March 31, 2018 (in millions): As of December 31, 2017 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Non-Marketable Level 2: Time deposits (1) $ 359 $ 0 $ 0 $ 359 $ 357 $ 2 $ 0 Government bonds (2) 51,548 10 (406 ) 51,152 1,241 49,911 0 Corporate debt securities 24,269 21 (135 ) 24,155 126 24,029 0 Mortgage-backed and asset-backed securities 16,789 13 (180 ) 16,622 0 16,622 0 92,965 44 (721 ) 92,288 1,724 90,564 0 Level 3: Non-marketable debt securities 1,083 811 0 1,894 0 0 1,894 Total $ 94,048 $ 855 $ (721 ) $ 94,182 $ 1,724 $ 90,564 $ 1,894 As of March 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Non-Marketable (unaudited) Level 2: Time deposits (1) $ 187 $ 0 $ 0 $ 187 $ 186 $ 1 $ 0 Government bonds (2) 50,187 14 (563 ) 49,638 110 49,528 0 Corporate debt securities 24,305 10 (361 ) 23,954 43 23,911 0 Mortgage-backed and asset-backed securities 16,309 9 (348 ) 15,970 0 15,970 0 90,988 33 (1,272 ) 89,749 339 89,410 0 Level 3: Non-marketable debt securities 1,030 1,204 0 2,234 0 0 2,234 Total $ 92,018 $ 1,237 $ (1,272 ) $ 91,983 $ 339 $ 89,410 $ 2,234 (1) The majority of our time deposits are foreign deposits. (2) Government bonds is comprised primarily of U.S. government notes, and also includes U.S. government agencies, foreign government bonds and municipal securities. We determine realized gains or losses on the sale of debt securities on a specific identification method. We recognized gross realized gains of $145 million and $2 million for the three months ended March 31, 2017 and 2018 , respectively. We recognized gross realized losses of $170 million and $41 million for the three months ended March 31, 2017 and 2018 , respectively. We reflect these gains and losses as a component of other income (expense), net, in the Consolidated Statements of Income. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions, unaudited): As of Due in 1 year $ 17,262 Due in 1 year through 5 years 57,937 Due in 5 years through 10 years 2,325 Due after 10 years 11,886 Total $ 89,410 The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2017 and March 31, 2018 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions): As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Government bonds (1) $ 28,836 $ (211 ) $ 17,660 $ (195 ) $ 46,496 $ (406 ) Corporate debt securities 18,300 (114 ) 1,710 (21 ) 20,010 (135 ) Mortgage-backed and asset-backed securities 11,061 (105 ) 3,449 (75 ) 14,510 (180 ) Total $ 58,197 $ (430 ) $ 22,819 $ (291 ) $ 81,016 $ (721 ) As of March 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized (unaudited) Government bonds (1) $ 29,080 $ (358 ) $ 15,054 $ (205 ) $ 44,134 $ (563 ) Corporate debt securities 19,731 (327 ) 1,653 (34 ) 21,384 (361 ) Mortgage-backed and asset-backed securities 11,108 (230 ) 3,242 (118 ) 14,350 (348 ) Total $ 59,919 $ (915 ) $ 19,949 $ (357 ) $ 79,868 $ (1,272 ) (1) Government bonds is comprised primarily of U.S. government notes, and also includes U.S. government agencies, foreign government bonds and municipal securities. During the three months ended March 31, 2017 and 2018 , we did no t recognize any significant other-than-temporary impairment losses. Losses on impairment are included as a component of other income (expense), net, in the Consolidated Statements of Income. See Note 6 for further details on other income (expense), net. The following table presents a reconciliation for our non-marketable debt securities measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) (in millions, unaudited): Three Months Ended March 31, 2017 2018 Beginning balance $ 1,165 $ 1,894 Total net gains (losses) Included in earnings 0 (21 ) Included in other comprehensive income 65 393 Purchases 64 2 Sales (1 ) 0 Settlements (3 ) (34 ) Ending balance $ 1,290 $ 2,234 Equity Investments Marketable equity securities Our marketable equity securities are publicly traded stocks or funds measured at fair value and classified within Level 1 and 2 in the fair value hierarchy because we use quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets. Prior to January 1, 2018, we accounted for the majority of our marketable equity securities at fair value with unrealized gains and losses recognized in accumulated other comprehensive income on the balance sheet. Realized gains and losses on marketable equity securities sold or impaired were recognized in other income (expense), net. On January 1, 2018, we adopted ASU 2016-01 which changed the way we account for marketable equity securities. Our marketable equity securities are measured at fair value and starting January 1, 2018 unrealized gains and losses are recognized in other income (expense), net. Upon adoption, we reclassified $98 million net unrealized gains related to marketable equity securities from accumulated other comprehensive income to opening retained earnings. The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2017 and March 31, 2018 (in millions): As of December 31, 2017 Cash and Cash Equivalents Marketable Level 1: Money market and other funds $ 1,833 $ 0 Marketable equity securities 0 340 1,833 340 Level 2: Mutual funds (1) 0 252 Total $ 1,833 $ 592 (1) The fair value option was elected for mutual funds with gains (losses) recognized in other income (expense), net. As of March 31, 2018 (unaudited) Cash and Cash Equivalents Marketable Securities Level 1: Money market and other funds $ 4,020 $ 0 Marketable equity securities 0 581 4,020 581 Level 2: Mutual funds 0 236 Total $ 4,020 $ 817 Non-marketable equity securities Our non-marketable equity securities are investments in privately held companies without readily determinable market values. Prior to January 1, 2018, we accounted for our non-marketable equity securities at cost less impairment. Realized gains and losses on non-marketable securities sold or impaired were recognized in other income (expense), net. As of December 31, 2017 , non-marketable equity securities accounted for under the cost method had a carrying value of $ 4.5 billion and a fair value of approximately $ 8.8 billion . On January 1, 2018, we adopted ASU 2016-01 which changed the way we account for non-marketable securities. We now adjust the carrying value of our non-marketable equity securities to fair value upon observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in other income (expense), net. Because we adopted ASU 2016-01 prospectively, we will recognize unrealized gains that occurred in prior periods in the first period after January 1, 2018 when there is an observable transaction for our securities. Non-marketable equity securities remeasured during the three months ended March 31, 2018 are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold. As of March 31, 2018 , non-marketable equity securities had a carrying value of approximately $7.3 billion , of which $3.6 billion was remeasured to fair value based on observable transactions during the three months ended March 31, 2018. The following is a summary of unrealized gains and losses recorded in other income (expense), net, and included as adjustments to the carrying value of non-marketable equity securities held as of March 31, 2018 (in millions, unaudited): Three Months Ended March 31, 2018 Upward adjustments (gross unrealized gains) $ 2,511 Downward adjustments (including impairment) (gross unrealized losses) (23 ) Total $ 2,488 Gains and losses on marketable and non-marketable equity securities Realized and unrealized gains and losses for our marketable and non-marketable equity securities for the three months ended March 31, 2018 are summarized below (in millions, unaudited): Three Months Ended March 31, 2018 Realized gain (loss) for equity securities sold $ 387 Unrealized gain (loss) on equity securities held 2,644 Total gain (loss) recognized in other income (expense), net $ 3,031 Investments accounted for under the Equity Method As of December 31, 2017 and March 31, 2018 , investments accounted for under the equity method had a carrying value of approximately $ 1.4 billion and $1.5 billion , respectively. Our share of gains and losses in equity method investments including impairment are included as a component of other income (expense), net, in the Consolidated Statements of Income. See Note 6 for further details on other income (expense), net. Derivative Financial Instruments We classify our foreign currency and interest rate derivative contracts primarily within Level 2 in the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments. We recognize derivative instruments as either assets or liabilities in the Consolidated Balance Sheets at fair value. We record changes in the fair value (i.e., gains or losses) of the derivatives in the Consolidated Statements of Income as either other income (expense), net, or revenues, or in the Consolidated Balance Sheets in AOCI, as discussed below. As a result of our adoption of Accounting Standard Update No. 2017-12 (ASU 2017-12) "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," the components excluded from the assessment of hedge effectiveness are recognized in the same income statement line as the hedged item beginning January 1, 2018. We enter into foreign currency contracts with financial institutions to reduce the risk that our cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. We also use interest rate derivative contracts to hedge interest rate exposures on our fixed income securities and debt issuances. Our program is not used for trading or speculative purposes. We enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. To further reduce credit risk, we enter into collateral security arrangements under which the counterparty is required to provide collateral when the net fair value of certain financial instruments fluctuates from contractually established thresholds. We can take possession of the collateral in the event of counterparty default. As of December 31, 2017 and March 31, 2018 , we received cash collateral related to the derivative instruments under our collateral security arrangements of $15 million and $84 million , respectively. Cash Flow Hedges We use foreign currency forwards and option contracts, including collars (an option strategy comprised of a combination of purchased and written options), designated as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. The notional principal of these contracts was approximately $11.7 billion and $11.6 billion as of December 31, 2017 and March 31, 2018 , respectively. These contracts have maturities of 24 months or less. For forwards and option contracts, we exclude the change in the forward points and time value from our assessment of hedge effectiveness. The initial value of the excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in revenues. The difference between fair value changes of the excluded component and the amount amortized to revenues is recorded in AOCI. We reflect the gains or losses of a cash flow hedge included in our hedge effective assessment as a component of AOCI and subsequently reclassify these gains and losses to revenues when the hedged transactions are recorded. If the hedged transactions become probable of not occurring, the corresponding amounts in AOCI are immediately reclassified to other income (expense), net. As of March 31, 2018 , the net gain or loss of our foreign currency cash flow hedges before tax effect was a net accumulated loss of $296 million , of which a net loss of $296 million is expected to be reclassified from AOCI into earnings within the next 12 months. Fair Value Hedges We use forward contracts designated as fair value hedges to hedge foreign currency risks for our investments denominated in currencies other than the U.S. dollar. We exclude changes in forward points for the forward contracts from the assessment of hedge effectiveness. We recognize changes in the excluded component in other income (expense), net. The notional principal of these contracts was $2.9 billion and $2.8 billion as of December 31, 2017 and March 31, 2018 , respectively. Gains and losses on these forward contracts are recognized in other income (expense), net, along with the offsetting gains and losses of the related hedged items. Other Derivatives Other derivatives not designated as hedging instruments consist of foreign currency forward contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the local currency of a subsidiary. We recognize gains and losses on these contracts, as well as the related costs in other income (expense), net, along with the foreign currency gains and losses on monetary assets and liabilities. The notional principal of the outstanding foreign exchange contracts was $15.2 billion and $20.7 billion as of December 31, 2017 and March 31, 2018 , respectively. The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2017 Balance Sheet Location Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 51 $ 29 $ 80 Total $ 51 $ 29 $ 80 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 230 $ 122 $ 352 Total $ 230 $ 122 $ 352 As of March 31, 2018 Balance Sheet Location Fair Value of Fair Value of Total Fair Value (unaudited) Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 37 $ 149 $ 186 Total $ 37 $ 149 $ 186 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 285 $ 120 $ 405 Total $ 285 $ 120 $ 405 The gains (losses) on derivatives in cash flow hedging relationships recognized in other comprehensive income (OCI) is summarized below (in millions, unaudited): Three Months Ended March 31, Derivatives in Cash Flow Hedging Relationship 2017 2018 Foreign exchange contracts Amount included in the assessment of effectiveness $ (313 ) $ (319 ) Amount excluded from the assessment of effectiveness 0 (7 ) Total $ (313 ) $ (326 ) The effect of derivative instruments on income is summarized below (in millions, unaudited): Gains or (Losses) Recognized in Income Three Months Ended March 31, 2017 2018 Revenues Other income (expense), net Revenues Other income (expense), net Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow and fair value hedges are recorded $ 24,750 $ 251 $ 31,146 $ 3,542 Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ 217 $ 0 $ (247 ) $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 0 0 8 0 Amount excluded from the assessment of effectiveness 0 26 0 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 51 0 113 Derivatives designated as hedging instruments 0 (51 ) 0 (113 ) Amount excluded from the assessment of effectiveness 0 4 0 11 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Derivatives not designated as hedging instruments 0 (202 ) 0 (100 ) Total gains (losses) $ 217 $ (172 ) $ (239 ) $ (89 ) Offsetting of Derivatives We present our forwards and purchased options at gross fair values in the Consolidated Balance Sheets. For foreign currency collars, we present at net fair values where both purchased and written options are with the same counterparty. Our master netting and other similar arrangements allow net settlements under certain conditions. As of December 31, 2017 and March 31, 2018 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets As of December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 102 $ (22 ) $ 80 $ (64 ) (1) $ (4 ) $ (2 ) $ 10 As of March 31, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed (unaudited) Derivatives $ 223 $ (37 ) $ 186 $ (124 ) (1) $ (58 ) $ 0 $ 4 (1) The balances as of December 31, 2017 and March 31, 2018 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. Offsetting of Liabilities As of December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 374 $ (22 ) $ 352 $ (64 ) (2) $ 0 $ 0 $ 288 As of March 31, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities (unaudited) Derivatives $ 442 $ (37 ) $ 405 $ (124 ) (2) $ 0 $ 0 $ 281 (2) The balances as of December 31, 2017 and March 31, 2018 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities (VIEs) Consolidated VIEs We consolidate VIEs in which we hold a variable interest and are the primary beneficiary. We are the primary beneficiary because we have the power to direct activities that most significantly affect their economic performance and have the obligation to absorb the majority of their losses or benefits. The results of operations and statements of 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, 2017 and March 31, 2018 , assets that can only be used to settle obligations of these VIEs were $1.7 billion and $1.5 billion , respectively, and the liabilities for which creditors do not have recourse to us were $997 million and $906 million , respectively. Calico Calico is a life science company with a mission to harness advanced technologies to increase our understanding of the biology that controls lifespan. As of March 31, 2018 , we have contributed $240 million to Calico in exchange for Calico convertible preferred units and are committed to fund an additional $490 million on an as-needed basis. In September 2014, AbbVie Inc. (AbbVie) and Calico announced a research and development collaboration agreement intended to help both companies discover, develop, and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. As of March 31, 2018 , AbbVie has contributed $750 million to fund the collaboration pursuant to the agreement, which reflects its total commitment. As of March 31, 2018 , Calico has contributed $250 million and committed up to an additional $500 million . Calico has used its scientific expertise to establish a world-class research and development facility, with a focus on drug discovery and early drug development; and AbbVie provides scientific and clinical development support and its commercial expertise to bring new discoveries to market. Both companies share costs and profits equally. AbbVie's contribution has been recorded as a liability on Calico's financial statements, which is reduced and reflected as a reduction to research and development expense as eligible research and development costs are incurred by Calico. Verily Verily is a life science company with a mission to make the world's health data useful so that people enjoy healthier lives. In 2017 , Temasek, a Singapore-based investment company, purchased a noncontrolling interest in Verily for an aggregate of $800 million in cash. The transaction is accounted for as an equity transaction and no gain or loss was recognized. Noncontrolling interest and net loss attributable to noncontrolling interest were not separately presented on our consolidated financial statements as of and for the three months ended March 31, 2018 as the amounts were not material. Unconsolidated VIEs Certain renewable energy investments included in our non-marketable equity investments accounted for under the equity method are VIEs. These entities' 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 such as setting operating budgets. Therefore, we do not consolidate these VIEs in our consolidated financial statements. The carrying value and maximum exposure of these VIEs were $896 million and $877 million as of December 31, 2017 and March 31, 2018 , respectively. The maximum exposure is based on current investments to date. We have determined the single source of our exposure to these VIEs is our capital investment in them. Other unconsolidated VIEs were not material as of December 31, 2017 and March 31, 2018 . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt We have a debt financing program of up to $5.0 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, 2017 and $1.3 billion of outstanding commercial paper recorded as short-term debt with a weighted-average interest rate of 1.7% as of March 31, 2018 . The estimated fair value of the short-term debt approximated its carrying value as of March 31, 2018 . Long-Term Debt Google issued $3.0 billion of senior unsecured notes in three tranches (collectively, 2011 Notes) in May 2011, due in 2014, 2016, and 2021, as well as $1.0 billion of senior unsecured notes (2014 Notes) in February 2014 due in 2024. In April 2016, we completed an exchange offer with eligible holders of Google’s 2011 Notes due 2021 and 2014 Notes due 2024 (collectively, the Google Notes). An aggregate principal amount of approximately $1.7 billion of the Google Notes was exchanged for approximately $1.7 billion of Alphabet notes with identical interest rate and maturity. Because the exchange was between a parent and the subsidiary company and for substantially identical notes, the change was treated as a debt modification for accounting purposes with no gain or loss recognized. In August 2016, Alphabet issued $2.0 billion of senior unsecured notes (2016 Notes) due 2026. The net proceeds from the issuance of the 2016 Notes were used for general corporate purposes, including the repayment of outstanding commercial paper. The Alphabet notes due in 2021, 2024, and 2026 rank equally with each other and are structurally subordinate to the outstanding Google Notes. The total outstanding long-term debt is summarized below (in millions): As of As of (unaudited) Long-term debt 3.625% Notes due on May 19, 2021 $ 1,000 $ 1,000 3.375% Notes due on February 25, 2024 1,000 1,000 1.998% Notes due on August 15, 2026 2,000 2,000 Unamortized discount for the Notes above (57 ) (56 ) Subtotal (1) $ 3,943 $ 3,944 Capital lease obligation 26 29 Total long-term debt $ 3,969 $ 3,973 (1) Includes the outstanding (and unexchanged) Google Notes issued in 2011 and 2014 and the Alphabet notes exchanged in 2016. The effective interest yields based on proceeds received from the outstanding notes due in 2021, 2024, and 2026 were 3.734% , 3.377% , and 2.231% , respectively, with interest payable semi-annually. We may redeem these notes at any time in whole or in part at specified redemption prices. The total estimated fair value of all outstanding notes was approximately $4.0 billion as of December 31, 2017 and $3.9 billion as of March 31, 2018 . 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. Credit Facility We have a $4.0 billion revolving credit facility which expires in February 2021. The interest rate for the credit facility is determined based on a formula using certain market rates. No amounts were outstanding under the credit facility as of December 31, 2017 and March 31, 2018 . |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Components Disclosure [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Property and Equipment, Net Property and equipment, net, consisted of the following (in millions): As of As of (unaudited) Land and buildings $ 23,183 $ 26,879 Information technology assets 21,429 23,795 Construction in progress 10,491 12,357 Leasehold improvements 4,496 4,720 Furniture and fixtures 48 50 Property and equipment, gross 59,647 67,801 Less: accumulated depreciation (17,264 ) (18,956 ) Property and equipment, net $ 42,383 $ 48,845 As of December 31, 2017 and March 31, 2018 , assets under capital lease with a cost basis of $390 million and $455 million were included in property and equipment, respectively. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following (in millions): As of As of (unaudited) European Commission fine (1) $ 2,874 $ 3,028 Accrued customer liabilities 1,489 1,457 Other accrued expenses and current liabilities 5,814 5,580 Accrued expenses and other current liabilities $ 10,177 $ 10,065 (1) Includes the effects of foreign exchange and interest. See Note 9 for further details. Accumulated Other Comprehensive Income (Loss) The components of AOCI, net of tax, were as follows (in millions, unaudited): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2016 $ (2,646 ) $ (179 ) $ 423 $ (2,402 ) Other comprehensive income (loss) before reclassifications 451 139 (229 ) 361 Amounts reclassified from AOCI 0 25 (153 ) (128 ) Other comprehensive income (loss) 451 164 (382 ) 233 Balance as of March 31, 2017 $ (2,195 ) $ (15 ) $ 41 $ (2,169 ) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2017 $ (1,103 ) $ 233 $ (122 ) $ (992 ) Other comprehensive income (loss) before reclassifications (1) 657 (306 ) (255 ) 96 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (7 ) (7 ) Amounts reclassified from AOCI 0 39 194 233 Other comprehensive income (loss) 657 (267 ) (68 ) 322 Balance as of March 31, 2018 $ (446 ) $ (34 ) $ (190 ) $ (670 ) (1) The change in unrealized gains (losses) on available-for-sale investments included a $98 million reclassification of net unrealized gains related to marketable equity securities from AOCI to opening retained earnings as a result of the adoption of ASU 2016-01 on January 1, 2018. The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income Three Months Ended March 31, AOCI Components Location 2017 2018 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (25 ) $ (39 ) Provision for income taxes 0 0 Net of tax $ (25 ) $ (39 ) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue $ 217 $ (247 ) Interest rate contracts Other income (expense), net 1 1 Benefit (provision) for income taxes (65 ) 52 Net of tax $ 153 $ (194 ) Total amount reclassified, net of tax $ 128 $ (233 ) Other Income (Expense), Net The components of other income (expense), net, were as follows (in millions, unaudited): Three Months Ended March 31, 2017 2018 Interest income $ 312 $ 399 Interest expense (1) (25 ) (30 ) Foreign currency exchange losses, net (2 ) (24 ) Loss on debt securities, net (25 ) (39 ) Gain on equity securities, net 6 3,031 Loss and impairment from equity method investments, net (49 ) (7 ) Other 34 212 Other income (expense), net $ 251 $ 3,542 (1) Interest expense is net of $7 million and $16 million of interest capitalized for the three months ended March 31, 2017 and 2018 , respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Agreement with HTC Corporation (HTC) In January 2018, we completed the acquisition of a team of engineers and a non-exclusive license of intellectual property from HTC for $1.1 billion in cash. In aggregate, $10 million was cash acquired, $165 million was attributed to intangible assets, $934 million was attributed to goodwill, and $9 million was attributed to net liabilities assumed . Goodwill, which was included in Google, is not deductible for tax purposes. We expect this transaction to accelerate Google’s ongoing hardware efforts. The transaction was accounted for as a business combination. Other Acquisitions During the three months ended March 31, 2018 , we completed other acquisitions and purchases of intangible assets for total consideration of approximately $304 million . In aggregate, $2 million was cash acquired, $159 million was attributed to intangible assets, $147 million was attributed to goodwill, and $4 million was attributed to net liabilities assumed . These acquisitions generally enhance the breadth and depth of our offerings and expand our expertise in engineering and other functional areas. The amount of goodwill expected to be deductible for tax purposes is approximately $54 million . Pro forma results of operations for these acquisitions, including HTC, have not been presented because they are not material to the consolidated results of operations, either individually or in the aggregate. For all intangible assets acquired and purchased during the three months ended March 31, 2018 , patents and developed technology have a weighted-average useful life of 3.8 years, customer relationships have a weighted-average useful life of 2.2 years, and trade names and other have a weighted-average useful life of 3.8 years. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill for the three months ended March 31, 2018 were as follows (in millions, unaudited): Google Other Bets Total Consolidated Balance as of December 31, 2017 $ 16,295 $ 452 $ 16,747 Acquisitions 1,081 0 1,081 Transfers 80 (80 ) 0 Foreign currency translation and other adjustments 36 (2 ) 34 Balance as of March 31, 2018 $ 17,492 $ 370 $ 17,862 Other Intangible Assets Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 5,260 $ 3,040 $ 2,220 Customer relationships 359 263 96 Trade names and other 544 168 376 Total $ 6,163 $ 3,471 $ 2,692 As of March 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (unaudited) Patents and developed technology $ 5,315 $ 3,066 $ 2,249 Customer relationships 376 284 92 Trade names and other 643 175 468 Total $ 6,334 $ 3,525 $ 2,809 Amortization expense relating to purchased intangible assets was $206 million and $195 million for the three months ended March 31, 2017 and 2018 , respectively. As of March 31, 2018 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter are as follows (in millions, unaudited): Remainder of 2018 $ 608 2019 704 2020 578 2021 532 2022 218 Thereafter 169 $ 2,809 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters Antitrust Investigations On November 30, 2010, the European Commission's (EC) Directorate General for Competition opened an investigation into various antitrust-related complaints against us. On April 15, 2015, the EC issued a Statement of Objections (SO) regarding the display and ranking of shopping search results and ads, to which we responded on August 27, 2015. On July 14, 2016, the EC issued a Supplementary SO regarding shopping search results and ads. On June 27, 2017, the EC announced its decision that certain actions taken by Google regarding its display and ranking of shopping search results and ads infringed European competition law. The EC decision imposed a €2.42 billion (approximately $2.74 billion as of June 27, 2017) fine. On September 11, 2017, we appealed the EC decision 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 approximately $2.74 billion for the fine in the second quarter of 2017. The fine is included 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 fine. On April 20, 2016, the EC issued an SO regarding certain Android distribution practices. On July 14, 2016, the EC issued an SO regarding the syndication of AdSense for Search. We responded to the SOs and continue to respond to the EC's informational requests. There is significant uncertainty as to the outcomes of these investigations; however, adverse decisions could result in fines and directives to alter or terminate certain conduct. Given the nature of these cases, we are unable to estimate the reasonably possible loss or ranges of loss, if any. We remain committed to working with the EC to resolve these matters. The Comision Nacional de Defensa de la Competencia in Argentina, the Competition Commission of India (CCI), Brazil's Administrative Council for Economic Defense (CADE), and the Korean Fair Trade Commission have also opened investigations into certain of our business practices. In November 2016, we responded to the CCI Director General's report with interim findings of competition law infringements regarding search and ads. On February 8, 2018, the CCI issued its final decision, including a fine of approximately $21 million that was accrued for in the current quarter, finding no violation of competition law infringement on most of the issues it investigated, but finding violations, including in the display of the “flights unit” in search results, and a contractual provision in certain direct search intermediation agreements. We have appealed the CCI decision. Patent and Intellectual Property Claims We have had patent, copyright, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe the intellectual property rights of others. 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, and may also cause us to change our business practices, and require development of 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 for a company or its suppliers in an ITC action could 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 for certain intellectual property infringement claims against them, 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. 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. 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 appeals court reversed and remanded the case for a trial on damages. We continue to review our options. We believe this lawsuit is without merit and are defending ourselves vigorously. Given the nature of this case, we are unable to estimate the reasonably possible loss or range of loss, if any, arising from this matter. Other We are also regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving competition (such as the pending EC investigations described above), intellectual property, privacy, tax, 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. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil or criminal penalties, or other adverse consequences. Certain of our outstanding legal 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 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 likelihood of there being and the estimated amount of a loss related to such matters. With respect to our outstanding legal 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 legal 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. We believe these matters are without merit and we are defending ourselves vigorously. 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 13 . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchases In October 2016, the Board of Directors of Alphabet authorized the company to repurchase up to $7.0 billion of its Class C capital stock, which was completed during the three months ended March 31, 2018 . In January 2018, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $8.6 billion of its Class C capital stock. 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. During the three months ended March 31, 2018 , we repurchased and subsequently retired 2.0 million shares of Alphabet Class C capital stock for an aggregate amount of $2.2 billion . |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands, and per share amounts, unaudited): Three Months Ended March 31, 2017 2018 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 2,331 $ 371 $ 2,724 $ 4,039 $ 635 $ 4,727 Denominator Number of shares used in per share computation 297,150 47,301 347,104 298,449 46,956 349,347 Basic net income per share $ 7.85 $ 7.85 $ 7.85 $ 13.53 $ 13.53 $ 13.53 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 2,331 $ 371 $ 2,724 $ 4,039 $ 635 $ 4,727 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 371 0 0 635 0 0 Reallocation of undistributed earnings (29 ) (5 ) 29 (57 ) (9 ) 57 Allocation of undistributed earnings $ 2,673 $ 366 $ 2,753 $ 4,617 $ 626 $ 4,784 Denominator Number of shares used in basic computation 297,150 47,301 347,104 298,449 46,956 349,347 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 47,301 0 0 46,956 0 0 Restricted stock units and other contingently issuable shares 1,419 0 9,062 898 0 9,484 Number of shares used in per share computation 345,870 47,301 356,166 346,303 46,956 358,831 Diluted net income per share $ 7.73 $ 7.73 $ 7.73 $ 13.33 $ 13.33 $ 13.33 For the periods presented above, the net income per share amounts are the same for Class A and Class B common stock and Class C capital 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. |
Compensation Plans
Compensation Plans | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Compensation Plans | Compensation Plans Stock-Based Compensation For the three months ended March 31, 2017 and 2018 , total stock-based compensation (SBC) expense was $2.1 billion and $2.5 billion , including amounts associated with awards we expect to settle in Alphabet stock of $2.0 billion and $2.5 billion , respectively. Stock-Based Award Activities The following table summarizes the activities for our unvested restricted stock units (RSUs) for the three months ended March 31, 2018 (unaudited): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2017 20,077,346 $ 712.45 Granted 9,086,353 $ 1,084.56 Vested (2,940,503 ) $ 722.72 Forfeited/canceled (367,368 ) $ 791.33 Unvested as of March 31, 2018 25,855,828 $ 840.89 As of March 31, 2018 , there was $20.0 billion of unrecognized compensation cost related to unvested employee RSUs. This amount is expected to be recognized over a weighted-average period of 2.8 years . Performance Fees We have compensation arrangements with payouts based on investment returns. We recognize compensation expense based on the estimated payouts. For the three months ended March 31, 2018, performance fees of $632 million primarily related to gains on equity securities (for further information, see Equity Investments in Note 3 ) were accrued and recorded as a component of general and administrative expenses. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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. Our total gross unrecognized tax benefits were $4.7 billion and $5.0 billion as of December 31, 2017 and March 31, 2018 , respectively. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $3.0 billion and $3.4 billion as of December 31, 2017 and March 31, 2018 , respectively. The Tax Act enacted in December 2017 introduced significant changes to U.S. income tax law. Effective 2018, the Tax Act reduced the U.S. statutory tax rate from 35% to 21% and created new taxes on certain foreign-sourced earnings and certain intercompany payments. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of December 31, 2017. As we collect and prepare necessary data, and interpret the Tax Act and any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service (IRS), and other standard-setting bodies, we may make adjustments to the provisional amounts. Those adjustments may materially affect our provision for income taxes and effective tax rate in the period in which the adjustments are made. The adjustments made in the first quarter of 2018 were not significant. The accounting for the tax effects of the Tax Act will be completed later in 2018. Our effective tax rate of 10.8% is lower than the 21% U.S. statutory rate due to the following: foreign income taxed at lower rates of 6.2% , income tax effects from a release of our deferred tax asset valuation allowance primarily related to capital investments of 4.1% , U.S. general business credit of 2.3% , and other items of 0.2% , offset by additional unrecognized tax benefits of 2.6% . In addition, we are subject to the continuous examination of our income tax returns by the IRS and other domestic and foreign tax authorities. 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 the provision for income taxes in the period such resolution occurs. We have received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend against any and all such claims as presented. While we believe it is more likely than not that our tax position will be sustained, it is reasonably possible that we will have future obligations related to these matters. For information regarding non-income taxes, see Note 9 . |
Information about Segments and
Information about Segments and Geographic Areas | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Information about Segments and Geographic Areas | Information about Segments and Geographic Areas We operate our business in multiple operating segments. Google is our only reportable segment. None of our other segments meet the quantitative thresholds to qualify as reportable segments; therefore, the other operating segments are combined and disclosed as Other Bets. Our reported segments are: • Google – Google includes our main products such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware (including Nest), Search, and YouTube. Our technical infrastructure and some newer efforts like virtual reality are also included in Google. Google generates revenues primarily from advertising; sales of apps, in-app purchases, digital content products, and hardware; and licensing and service fees, including fees received for Google Cloud offerings. • Other Bets – Other Bets is a combination of multiple operating segments that are not individually material. Other Bets includes businesses such as Access, Calico, CapitalG, Chronicle, GV, Verily, Waymo, and X. Revenues from the Other Bets are derived primarily through the sales of internet and TV services through Access as well as licensing and R&D services through Verily. Revenues, cost of revenues, and operating expenses are generally directly attributed to our segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. Our Chief Operating Decision Maker does not evaluate operating segments using asset information. In Q1 2018, Nest joined forces with Google’s hardware team. Consequently, the financial results of Nest have been reported in the Google segment, with Nest revenues reflected in Google other revenues. Prior period segment information has been recast to conform to the current period segment presentation. Consolidated financial results are not affected. Information about segments during the periods presented were as follows (in millions, unaudited): Three Months Ended March 31, 2017 2018 Revenues: Google $ 24,618 $ 30,996 Other Bets 132 150 Total revenues $ 24,750 $ 31,146 Three Months Ended March 31, 2017 2018 Operating income (loss): Google $ 7,446 $ 8,368 Other Bets (703 ) (571 ) Reconciling items (1) (175 ) (796 ) Total income from operations $ 6,568 $ 7,001 (1) Reconciling items are primarily related to performance fees for the three months ended March 31, 2018, as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments. Three Months Ended March 31, 2017 2018 Capital expenditures: Google $ 2,409 $ 7,669 Other Bets 167 55 Reconciling items (2) (68 ) (425 ) Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 2,508 $ 7,299 (2) Reconciling items are related to timing differences of payments as segment capital expenditures are on accrual basis while total capital expenditures shown on the Consolidated Statements of Cash Flow are on cash basis and other miscellaneous differences. Stock-based compensation and depreciation, amortization, and impairment are included in segment operating income (loss) as shown below (in millions, unaudited): Three Months Ended March 31, 2017 2018 Stock-based compensation: Google $ 1,882 $ 2,304 Other Bets 86 112 Reconciling items (3) 41 41 Total stock-based compensation (4) $ 2,009 $ 2,457 Depreciation, amortization, and impairment: Google $ 1,416 $ 1,901 Other Bets 87 85 Total depreciation, amortization, and impairment as presented on the Consolidated Statements of Cash Flows $ 1,503 $ 1,986 (3) Reconciling items represent corporate administrative costs that are not allocated to individual segments. (4) For purposes of segment reporting, SBC represents awards that we expect to settle in Alphabet stock. The following table presents our long-lived assets by geographic area (in millions): As of As of (unaudited) Long-lived assets: United States $ 55,113 $ 62,347 International 17,874 20,827 Total long-lived assets $ 72,987 $ 83,174 For revenues by geography, see Note 2 . |
Nature of Operations and Summ22
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | We operate our business in multiple operating segments. Google is our only reportable segment. None of our other segments meet the quantitative thresholds to qualify as reportable segments; therefore, the other operating segments are combined and disclosed as Other Bets. |
Nature of Operations | 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 primarily by delivering relevant, cost-effective online advertising. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the variable interest and voting models. All intercompany balances and transactions have been eliminated. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The Consolidated Balance Sheets as of March 31, 2018 , the Consolidated Statements of Income for the three months ended March 31, 2017 and 2018 , the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2017 and 2018 , and the Consolidated Statements of Cash Flows for the three months ended March 31, 2017 and 2018 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of March 31, 2018 , our results of operations for the three months ended March 31, 2017 and 2018 , and our cash flows for the three months ended March 31, 2017 and 2018 . The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 . These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the SEC on February 5, 2018. |
Use of Estimates | 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. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable, sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial assets and liabilities that are measured at fair value on a recurring basis include cash equivalents, marketable securities, derivative contracts, and non-marketable debt securities. Our financial assets that are measured at fair value on a nonrecurring basis include non-marketable equity securities measured at fair value when observable price changes are identified or are impaired. Other financial assets and liabilities are carried at cost with fair value disclosed, if required. Debt Securities We classify our marketable debt securities 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. We reclassified our U.S. government notes included in marketable debt securities from Level 1 to Level 2 within the fair value hierarchy as these securities are priced based on a combination of quoted prices for identical or similar instruments in active markets and models with significant observable market inputs. Prior period amounts have been reclassified to conform with current period presentation. The vast majority of our government bond holdings are highly liquid U.S. government notes. We classify our non-marketable debt securities as Level 3 in the fair value hierarchy because they are primarily preferred stock and convertible notes issued by private companies without quoted market prices. To estimate the fair value of our non-marketable debt securities, we use a combination of valuation methodologies, including market and income approaches based on prior transaction prices; estimated timing, probability, and amount of cash flows; and illiquidity considerations. Financial information of private companies may not be available and consequently we will estimate the fair value based on the best available information at the measurement date. Equity Investments Marketable equity securities Our marketable equity securities are publicly traded stocks or funds measured at fair value and classified within Level 1 and 2 in the fair value hierarchy because we use quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets. Prior to January 1, 2018, we accounted for the majority of our marketable equity securities at fair value with unrealized gains and losses recognized in accumulated other comprehensive income on the balance sheet. Realized gains and losses on marketable equity securities sold or impaired were recognized in other income (expense), net. On January 1, 2018, we adopted ASU 2016-01 which changed the way we account for marketable equity securities. Our marketable equity securities are measured at fair value and starting January 1, 2018 unrealized gains and losses are recognized in other income (expense), net. Upon adoption, we reclassified $98 million net unrealized gains related to marketable equity securities from accumulated other comprehensive income to opening retained earnings. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease requirements in Accounting Standards Codification (ASC) Topic 840, "Leases." Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. As currently issued, entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. There are additional optional practical expedients that an entity may elect to apply. Based on our current portfolio of leases, approximately $8 billion of lease assets and liabilities would be recognized on our balance sheet, primarily relating to real estate. We are in the process of implementing changes to our systems and processes in conjunction with our review of lease agreements. We will adopt Topic 842 effective January 1, 2019 and expect to elect certain available transitional practical expedients. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. We are currently in the process of evaluating the effect of the adoption of ASU 2016-13 on our consolidated financial statements. Recently adopted accounting pronouncements In January 2016, the FASB issued Accounting Standards Update No. 2016-01 (ASU 2016-01) "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. We adopted ASU 2016-01 as of January 1, 2018 using the modified retrospective method for our marketable equity securities and the prospective method for our non-marketable equity securities. This resulted in a $98 million reclassification of net unrealized gains from accumulated other comprehensive income (AOCI) to opening retained earnings. We have elected to use the measurement alternative for our non-marketable equity securities, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. The adoption of ASU 2016-01 increases the volatility of our other income (expense), net, as a result of the remeasurement of our equity securities. For further information on unrealized gains from equity securities, see Note 3 . In October 2016, the FASB issued Accounting Standards Update No. 2016-16 (ASU 2016-16) "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory." ASU 2016-16 generally accelerates the recognition of income tax consequences for asset transfers between entities under common control. We adopted ASU 2016-16 as of January 1, 2018 using a modified retrospective transition method, resulting in a $701 million reclassification of unrecognized income tax effects related to asset transfers that occurred prior to adoption from other current and non-current assets to opening retained earnings. |
Prior Period Reclassifications | Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. cost-per-click basis, which means that an advertiser pays us only when a user clicks on an ad on Google properties or Google Network Members' properties or when a user views certain YouTube engagement ads. For these customers, we recognize revenue each time a user clicks on the ad or when a user views the ad for a specified period of time. We also offer advertising on other bases such as cost-per-impression, which means an advertiser pays us based on the number of times their ads are displayed on Google properties or Google Network Members’ properties. For these customers, we recognize revenue each time an ad is displayed. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. For ads placed on Google Network Members’ properties, we evaluate whether we are the principal (i.e., report revenues on a gross basis) or agent (i.e., report revenues on a net basis). Generally, we report advertising revenues for ads placed on Google Network Members’ properties on a gross basis, that is, the amounts billed to our customers are recorded as revenues, and amounts paid to Google Network Members are recorded as cost of revenues. Where we are the principal, we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory before it is transferred to our customers, and is further supported by us being primarily responsible to our customers and having a level of discretion in establishing pricing. Other Revenues Google other revenues and Other Bets revenues consist primarily of revenues from: • Apps, in-app purchases, and digital content in the Google Play store; • Google Cloud offerings; • Hardware; and • Other miscellaneous products and services. As it relates to Google other revenues, the most significant judgment is determining whether we are the principal or agent for app sales and in-app purchases through the Google Play store. We report revenues from these transactions on a net basis because our performance obligation is to facilitate a transaction between app developers and end users, for which we earn a commission. Consequently, the portion of the gross amount billed to end users that is remitted to app developers is not reflected as revenues. Arrangements with Multiple Performance Obligations Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenues to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost plus margin. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue by revenue source | The following table presents our revenues disaggregated by revenue source (in millions, unaudited). Sales and usage-based taxes are excluded from revenues. Three Months Ended March 31, 2017 2018 Google properties $ 17,403 $ 21,998 Google Network Members' properties 4,008 4,644 Google advertising revenues 21,411 26,642 Google other revenues 3,207 4,354 Other Bets revenues 132 150 Total revenues (1) $ 24,750 $ 31,146 (1) Revenues include hedging gains (losses) of $217 million and $(239) million for the three months ended March 31, 2017 and 2018 , respectively, which do not represent revenues recognized from contracts with customers. |
Revenue by geographic location | The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in millions, unaudited): Three Months Ended March 31, 2017 2018 United States $ 11,769 $ 14,144 EMEA (1) 8,091 10,474 APAC (1) 3,619 4,804 Other Americas (1) 1,271 1,724 Total revenues (2) $ 24,750 $ 31,146 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas). (2) Revenues include hedging gains (losses) for the three months ended March 31, 2017 and 2018 . |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale securities | The following tables summarize our debt securities by significant investment categories as of December 31, 2017 and March 31, 2018 (in millions): As of December 31, 2017 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Non-Marketable Level 2: Time deposits (1) $ 359 $ 0 $ 0 $ 359 $ 357 $ 2 $ 0 Government bonds (2) 51,548 10 (406 ) 51,152 1,241 49,911 0 Corporate debt securities 24,269 21 (135 ) 24,155 126 24,029 0 Mortgage-backed and asset-backed securities 16,789 13 (180 ) 16,622 0 16,622 0 92,965 44 (721 ) 92,288 1,724 90,564 0 Level 3: Non-marketable debt securities 1,083 811 0 1,894 0 0 1,894 Total $ 94,048 $ 855 $ (721 ) $ 94,182 $ 1,724 $ 90,564 $ 1,894 As of March 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Non-Marketable (unaudited) Level 2: Time deposits (1) $ 187 $ 0 $ 0 $ 187 $ 186 $ 1 $ 0 Government bonds (2) 50,187 14 (563 ) 49,638 110 49,528 0 Corporate debt securities 24,305 10 (361 ) 23,954 43 23,911 0 Mortgage-backed and asset-backed securities 16,309 9 (348 ) 15,970 0 15,970 0 90,988 33 (1,272 ) 89,749 339 89,410 0 Level 3: Non-marketable debt securities 1,030 1,204 0 2,234 0 0 2,234 Total $ 92,018 $ 1,237 $ (1,272 ) $ 91,983 $ 339 $ 89,410 $ 2,234 (1) The majority of our time deposits are foreign deposits. (2) Government bonds is comprised primarily of U.S. government notes, and also includes U.S. government agencies, foreign government bonds and municipal securities. |
Investments by maturity date | The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions, unaudited): As of Due in 1 year $ 17,262 Due in 1 year through 5 years 57,937 Due in 5 years through 10 years 2,325 Due after 10 years 11,886 Total $ 89,410 |
Schedule of unrealized loss on debt securities | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2017 and March 31, 2018 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions): As of December 31, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Government bonds (1) $ 28,836 $ (211 ) $ 17,660 $ (195 ) $ 46,496 $ (406 ) Corporate debt securities 18,300 (114 ) 1,710 (21 ) 20,010 (135 ) Mortgage-backed and asset-backed securities 11,061 (105 ) 3,449 (75 ) 14,510 (180 ) Total $ 58,197 $ (430 ) $ 22,819 $ (291 ) $ 81,016 $ (721 ) As of March 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized (unaudited) Government bonds (1) $ 29,080 $ (358 ) $ 15,054 $ (205 ) $ 44,134 $ (563 ) Corporate debt securities 19,731 (327 ) 1,653 (34 ) 21,384 (361 ) Mortgage-backed and asset-backed securities 11,108 (230 ) 3,242 (118 ) 14,350 (348 ) Total $ 59,919 $ (915 ) $ 19,949 $ (357 ) $ 79,868 $ (1,272 ) |
Non-marketable securities | The following table presents a reconciliation for our non-marketable debt securities measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) (in millions, unaudited): Three Months Ended March 31, 2017 2018 Beginning balance $ 1,165 $ 1,894 Total net gains (losses) Included in earnings 0 (21 ) Included in other comprehensive income 65 393 Purchases 64 2 Sales (1 ) 0 Settlements (3 ) (34 ) Ending balance $ 1,290 $ 2,234 |
Marketable equity securities | As of March 31, 2018 (unaudited) Cash and Cash Equivalents Marketable Securities Level 1: Money market and other funds $ 4,020 $ 0 Marketable equity securities 0 581 4,020 581 Level 2: Mutual funds 0 236 Total $ 4,020 $ 817 The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2017 and March 31, 2018 (in millions): As of December 31, 2017 Cash and Cash Equivalents Marketable Level 1: Money market and other funds $ 1,833 $ 0 Marketable equity securities 0 340 1,833 340 Level 2: Mutual funds (1) 0 252 Total $ 1,833 $ 592 (1) The fair value option was elected for mutual funds with gains (losses) recognized in other income (expense), net. |
Summary of non-marketable equity securities | Three Months Ended March 31, 2018 Upward adjustments (gross unrealized gains) $ 2,511 Downward adjustments (including impairment) (gross unrealized losses) (23 ) Total $ 2,488 |
Gains and losses on equity securities | Three Months Ended March 31, 2018 Realized gain (loss) for equity securities sold $ 387 Unrealized gain (loss) on equity securities held 2,644 Total gain (loss) recognized in other income (expense), net $ 3,031 |
Schedule of derivative instruments | The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2017 Balance Sheet Location Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 51 $ 29 $ 80 Total $ 51 $ 29 $ 80 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 230 $ 122 $ 352 Total $ 230 $ 122 $ 352 As of March 31, 2018 Balance Sheet Location Fair Value of Fair Value of Total Fair Value (unaudited) Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 37 $ 149 $ 186 Total $ 37 $ 149 $ 186 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 285 $ 120 $ 405 Total $ 285 $ 120 $ 405 |
Schedule of gain (loss) on derivative instruments | The gains (losses) on derivatives in cash flow hedging relationships recognized in other comprehensive income (OCI) is summarized below (in millions, unaudited): Three Months Ended March 31, Derivatives in Cash Flow Hedging Relationship 2017 2018 Foreign exchange contracts Amount included in the assessment of effectiveness $ (313 ) $ (319 ) Amount excluded from the assessment of effectiveness 0 (7 ) Total $ (313 ) $ (326 ) The effect of derivative instruments on income is summarized below (in millions, unaudited): Gains or (Losses) Recognized in Income Three Months Ended March 31, 2017 2018 Revenues Other income (expense), net Revenues Other income (expense), net Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow and fair value hedges are recorded $ 24,750 $ 251 $ 31,146 $ 3,542 Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ 217 $ 0 $ (247 ) $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 0 0 8 0 Amount excluded from the assessment of effectiveness 0 26 0 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 51 0 113 Derivatives designated as hedging instruments 0 (51 ) 0 (113 ) Amount excluded from the assessment of effectiveness 0 4 0 11 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Derivatives not designated as hedging instruments 0 (202 ) 0 (100 ) Total gains (losses) $ 217 $ (172 ) $ (239 ) $ (89 ) |
Offsetting assets | As of December 31, 2017 and March 31, 2018 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets As of December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 102 $ (22 ) $ 80 $ (64 ) (1) $ (4 ) $ (2 ) $ 10 As of March 31, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed (unaudited) Derivatives $ 223 $ (37 ) $ 186 $ (124 ) (1) $ (58 ) $ 0 $ 4 (1) The balances as of December 31, 2017 and March 31, 2018 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. |
Offsetting liabilities | Offsetting of Liabilities As of December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 374 $ (22 ) $ 352 $ (64 ) (2) $ 0 $ 0 $ 288 As of March 31, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities (unaudited) Derivatives $ 442 $ (37 ) $ 405 $ (124 ) (2) $ 0 $ 0 $ 281 (2) The balances as of December 31, 2017 and March 31, 2018 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The total outstanding long-term debt is summarized below (in millions): As of As of (unaudited) Long-term debt 3.625% Notes due on May 19, 2021 $ 1,000 $ 1,000 3.375% Notes due on February 25, 2024 1,000 1,000 1.998% Notes due on August 15, 2026 2,000 2,000 Unamortized discount for the Notes above (57 ) (56 ) Subtotal (1) $ 3,943 $ 3,944 Capital lease obligation 26 29 Total long-term debt $ 3,969 $ 3,973 (1) Includes the outstanding (and unexchanged) Google Notes issued in 2011 and 2014 and the Alphabet notes exchanged in 2016. |
Supplemental Financial Statem26
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Balance Sheet Components Disclosure [Abstract] | |
Property and equipment, net | Property and equipment, net, consisted of the following (in millions): As of As of (unaudited) Land and buildings $ 23,183 $ 26,879 Information technology assets 21,429 23,795 Construction in progress 10,491 12,357 Leasehold improvements 4,496 4,720 Furniture and fixtures 48 50 Property and equipment, gross 59,647 67,801 Less: accumulated depreciation (17,264 ) (18,956 ) Property and equipment, net $ 42,383 $ 48,845 |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following (in millions): As of As of (unaudited) European Commission fine (1) $ 2,874 $ 3,028 Accrued customer liabilities 1,489 1,457 Other accrued expenses and current liabilities 5,814 5,580 Accrued expenses and other current liabilities $ 10,177 $ 10,065 (1) Includes the effects of foreign exchange and interest. See Note 9 for further details. |
Components of accumulated other comprehensive income | The components of AOCI, net of tax, were as follows (in millions, unaudited): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2016 $ (2,646 ) $ (179 ) $ 423 $ (2,402 ) Other comprehensive income (loss) before reclassifications 451 139 (229 ) 361 Amounts reclassified from AOCI 0 25 (153 ) (128 ) Other comprehensive income (loss) 451 164 (382 ) 233 Balance as of March 31, 2017 $ (2,195 ) $ (15 ) $ 41 $ (2,169 ) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2017 $ (1,103 ) $ 233 $ (122 ) $ (992 ) Other comprehensive income (loss) before reclassifications (1) 657 (306 ) (255 ) 96 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (7 ) (7 ) Amounts reclassified from AOCI 0 39 194 233 Other comprehensive income (loss) 657 (267 ) (68 ) 322 Balance as of March 31, 2018 $ (446 ) $ (34 ) $ (190 ) $ (670 ) (1) The change in unrealized gains (losses) on available-for-sale investments included a $98 million reclassification of net unrealized gains related to marketable equity securities from AOCI to opening retained earnings as a result of the adoption of ASU 2016-01 on January 1, 2018. |
Schedule of effects on net income of amounts reclassified from AOCI | The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income Three Months Ended March 31, AOCI Components Location 2017 2018 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (25 ) $ (39 ) Provision for income taxes 0 0 Net of tax $ (25 ) $ (39 ) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue $ 217 $ (247 ) Interest rate contracts Other income (expense), net 1 1 Benefit (provision) for income taxes (65 ) 52 Net of tax $ 153 $ (194 ) Total amount reclassified, net of tax $ 128 $ (233 ) |
Schedule of other income (expense), net | The components of other income (expense), net, were as follows (in millions, unaudited): Three Months Ended March 31, 2017 2018 Interest income $ 312 $ 399 Interest expense (1) (25 ) (30 ) Foreign currency exchange losses, net (2 ) (24 ) Loss on debt securities, net (25 ) (39 ) Gain on equity securities, net 6 3,031 Loss and impairment from equity method investments, net (49 ) (7 ) Other 34 212 Other income (expense), net $ 251 $ 3,542 (1) Interest expense is net of $7 million and $16 million of interest capitalized for the three months ended March 31, 2017 and 2018 , respectively. |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of goodwill | Changes in the carrying amount of goodwill for the three months ended March 31, 2018 were as follows (in millions, unaudited): Google Other Bets Total Consolidated Balance as of December 31, 2017 $ 16,295 $ 452 $ 16,747 Acquisitions 1,081 0 1,081 Transfers 80 (80 ) 0 Foreign currency translation and other adjustments 36 (2 ) 34 Balance as of March 31, 2018 $ 17,492 $ 370 $ 17,862 |
Information regarding purchased intangible assets | Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 5,260 $ 3,040 $ 2,220 Customer relationships 359 263 96 Trade names and other 544 168 376 Total $ 6,163 $ 3,471 $ 2,692 As of March 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (unaudited) Patents and developed technology $ 5,315 $ 3,066 $ 2,249 Customer relationships 376 284 92 Trade names and other 643 175 468 Total $ 6,334 $ 3,525 $ 2,809 |
Expected amortization expense related to purchased intangible assets | As of March 31, 2018 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter are as follows (in millions, unaudited): Remainder of 2018 $ 608 2019 704 2020 578 2021 532 2022 218 Thereafter 169 $ 2,809 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands, and per share amounts, unaudited): Three Months Ended March 31, 2017 2018 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 2,331 $ 371 $ 2,724 $ 4,039 $ 635 $ 4,727 Denominator Number of shares used in per share computation 297,150 47,301 347,104 298,449 46,956 349,347 Basic net income per share $ 7.85 $ 7.85 $ 7.85 $ 13.53 $ 13.53 $ 13.53 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 2,331 $ 371 $ 2,724 $ 4,039 $ 635 $ 4,727 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 371 0 0 635 0 0 Reallocation of undistributed earnings (29 ) (5 ) 29 (57 ) (9 ) 57 Allocation of undistributed earnings $ 2,673 $ 366 $ 2,753 $ 4,617 $ 626 $ 4,784 Denominator Number of shares used in basic computation 297,150 47,301 347,104 298,449 46,956 349,347 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 47,301 0 0 46,956 0 0 Restricted stock units and other contingently issuable shares 1,419 0 9,062 898 0 9,484 Number of shares used in per share computation 345,870 47,301 356,166 346,303 46,956 358,831 Diluted net income per share $ 7.73 $ 7.73 $ 7.73 $ 13.33 $ 13.33 $ 13.33 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of restricted stock activity | The following table summarizes the activities for our unvested restricted stock units (RSUs) for the three months ended March 31, 2018 (unaudited): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2017 20,077,346 $ 712.45 Granted 9,086,353 $ 1,084.56 Vested (2,940,503 ) $ 722.72 Forfeited/canceled (367,368 ) $ 791.33 Unvested as of March 31, 2018 25,855,828 $ 840.89 |
Information about Segments an30
Information about Segments and Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment information by segment | Information about segments during the periods presented were as follows (in millions, unaudited): Three Months Ended March 31, 2017 2018 Revenues: Google $ 24,618 $ 30,996 Other Bets 132 150 Total revenues $ 24,750 $ 31,146 Three Months Ended March 31, 2017 2018 Operating income (loss): Google $ 7,446 $ 8,368 Other Bets (703 ) (571 ) Reconciling items (1) (175 ) (796 ) Total income from operations $ 6,568 $ 7,001 (1) Reconciling items are primarily related to performance fees for the three months ended March 31, 2018, as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments. Three Months Ended March 31, 2017 2018 Capital expenditures: Google $ 2,409 $ 7,669 Other Bets 167 55 Reconciling items (2) (68 ) (425 ) Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 2,508 $ 7,299 (2) Reconciling items are related to timing differences of payments as segment capital expenditures are on accrual basis while total capital expenditures shown on the Consolidated Statements of Cash Flow are on cash basis and other miscellaneous differences. Stock-based compensation and depreciation, amortization, and impairment are included in segment operating income (loss) as shown below (in millions, unaudited): Three Months Ended March 31, 2017 2018 Stock-based compensation: Google $ 1,882 $ 2,304 Other Bets 86 112 Reconciling items (3) 41 41 Total stock-based compensation (4) $ 2,009 $ 2,457 Depreciation, amortization, and impairment: Google $ 1,416 $ 1,901 Other Bets 87 85 Total depreciation, amortization, and impairment as presented on the Consolidated Statements of Cash Flows $ 1,503 $ 1,986 (3) Reconciling items represent corporate administrative costs that are not allocated to individual segments. (4) For purposes of segment reporting, SBC represents awards that we expect to settle in Alphabet stock. |
Schedule of long-lived assets by geographic area | The following table presents our long-lived assets by geographic area (in millions): As of As of (unaudited) Long-lived assets: United States $ 55,113 $ 62,347 International 17,874 20,827 Total long-lived assets $ 72,987 $ 83,174 |
Nature of Operations and Summ31
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | $ 120,008 | $ 113,247 | ||
Accounting Standards Update 2016-02 | Scenario, Forecast | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease assets | $ 8,000 | |||
Lease liability | $ 8,000 | |||
Accounting Standards Update 2016-01 | Accumulated other comprehensive income | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative adjustment to equity | $ (98) | |||
Accounting Standards Update 2016-01 | Retained earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative adjustment to equity | 98 | |||
Accounting Standards Update 2016-16 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained earnings | 701 | |||
Other assets | $ (701) |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue Recognition [Abstract] | |
Deferred revenue recognized during period | $ 647 |
Revenues (Revenue by Segment) (
Revenues (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 31,146 | $ 24,750 |
Revenues | ||
Segment Reporting Information [Line Items] | ||
Hedging gains (losses) included in consolidated revenue | (239) | 217 |
Segment Reporting Information [Line Items] | ||
Revenue | 4,354 | 3,207 |
Google | Google properties | ||
Segment Reporting Information [Line Items] | ||
Revenue | 21,998 | 17,403 |
Google | Google Network Members' properties | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,644 | 4,008 |
Google | Advertising Revenue [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 26,642 | 21,411 |
Other Bets | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 150 | $ 132 |
Revenues (Revenue by Geographic
Revenues (Revenue by Geographic Location) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 31,146 | $ 24,750 |
Revenue | 31,146 | 24,750 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 14,144 | 11,769 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 10,474 | 8,091 |
APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 4,804 | 3,619 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 1,724 | $ 1,271 |
Financial Instruments (Debt Sec
Financial Instruments (Debt Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Adjusted Cost | $ 92,018 | $ 94,048 |
Gross Unrealized Gains | 1,237 | 855 |
Gross Unrealized Losses | (1,272) | (721) |
Total | 91,983 | 94,182 |
Non-marketable debt securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Investments | 2,234 | 1,894 |
Debt Securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Cash and Cash Equivalents | 339 | 1,724 |
Marketable Debt Securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Total | 89,410 | |
Investments | 89,410 | 90,564 |
Level 1 | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Cash and Cash Equivalents | 4,020 | 1,833 |
Investments | 581 | 340 |
Level 2 | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Adjusted Cost | 90,988 | 92,965 |
Gross Unrealized Gains | 33 | 44 |
Gross Unrealized Losses | (1,272) | (721) |
Total | 89,749 | 92,288 |
Cash and Cash Equivalents | 339 | 1,724 |
Investments | 89,410 | 90,564 |
Level 2 | Time deposits | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Adjusted Cost | 187 | 359 |
Total | 187 | 359 |
Cash and Cash Equivalents | 186 | 357 |
Investments | 1 | 2 |
Level 2 | Government bonds | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Adjusted Cost | 50,187 | 51,548 |
Gross Unrealized Gains | 14 | 10 |
Gross Unrealized Losses | (563) | (406) |
Total | 49,638 | 51,152 |
Cash and Cash Equivalents | 110 | 1,241 |
Investments | 49,528 | 49,911 |
Level 2 | Corporate debt securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Adjusted Cost | 24,305 | 24,269 |
Gross Unrealized Gains | 10 | 21 |
Gross Unrealized Losses | (361) | (135) |
Total | 23,954 | 24,155 |
Cash and Cash Equivalents | 43 | 126 |
Investments | 23,911 | 24,029 |
Level 2 | Mortgage-backed and asset-backed securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Adjusted Cost | 16,309 | 16,789 |
Gross Unrealized Gains | 9 | 13 |
Gross Unrealized Losses | (348) | (180) |
Total | 15,970 | 16,622 |
Investments | 15,970 | 16,622 |
Level 3 | Non-marketable debt securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Adjusted Cost | 1,030 | 1,083 |
Gross Unrealized Gains | 1,204 | 811 |
Gross Unrealized Losses | 0 | 0 |
Total | 2,234 | 1,894 |
Investments | $ 2,234 | $ 1,894 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Financial Instruments and Fair Value [Line Items] | ||||
Gross realized gains on the sale of our marketable securities | $ 2,000,000 | $ 145,000,000 | ||
Gross realized losses on the sale of our marketable securities | 41,000,000 | 170,000,000 | ||
Other-than-temporary impairment losses recognized | 0 | $ 0 | ||
Cost method investment, carrying value | $ 4,500,000,000 | |||
Cost method investment, fair value | 8,800,000,000 | |||
Equity method investments | 1,500,000,000 | 1,400,000,000 | ||
Carrying value of equity securities | 7,300,000,000 | |||
Fair value of equity securities | 3,600,000,000 | |||
Cash collateral received from derivative financial instruments | 84,000,000 | 15,000,000 | ||
Effective portion of our cash flow hedges before tax effect | 296,000,000 | |||
Foreign currency gain (loss) to be reclassified during next 12 months | 296,000,000 | |||
Cash Flow Hedging Relationship | Foreign exchange contracts | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Notional amount of derivative | $ 11,600,000,000 | 11,700,000,000 | ||
Foreign exchange option contracts, maximum maturities | 24 months | |||
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Notional amount of derivative | $ 2,800,000,000 | 2,900,000,000 | ||
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Notional amount of derivative | $ 20,700,000,000 | $ 15,200,000,000 | ||
Accumulated other comprehensive income | Accounting Standards Update 2016-01 | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Cumulative adjustment to equity | $ (98,000,000) | |||
Retained earnings | Accounting Standards Update 2016-01 | ||||
Financial Instruments and Fair Value [Line Items] | ||||
Cumulative adjustment to equity | $ 98,000,000 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 91,983 | $ 94,182 |
Marketable Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Due in 1 year | 17,262 | |
Due in 1 year through 5 years | 57,937 | |
Due in 5 years through 10 years | 2,325 | |
Due after 10 years | 11,886 | |
Total | $ 89,410 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 59,919 | $ 58,197 |
Less than 12 Months, Unrealized Loss | (915) | (430) |
12 Months or Greater, Fair Value | 19,949 | 22,819 |
12 Months or Greater, Unrealized Loss | (357) | (291) |
Total Fair Value | 79,868 | 81,016 |
Total Unrealized Loss | (1,272) | (721) |
Government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 29,080 | 28,836 |
Less than 12 Months, Unrealized Loss | (358) | (211) |
12 Months or Greater, Fair Value | 15,054 | 17,660 |
12 Months or Greater, Unrealized Loss | (205) | (195) |
Total Fair Value | 44,134 | 46,496 |
Total Unrealized Loss | (563) | (406) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 19,731 | 18,300 |
Less than 12 Months, Unrealized Loss | (327) | (114) |
12 Months or Greater, Fair Value | 1,653 | 1,710 |
12 Months or Greater, Unrealized Loss | (34) | (21) |
Total Fair Value | 21,384 | 20,010 |
Total Unrealized Loss | (361) | (135) |
Mortgage-backed and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 11,108 | 11,061 |
Less than 12 Months, Unrealized Loss | (230) | (105) |
12 Months or Greater, Fair Value | 3,242 | 3,449 |
12 Months or Greater, Unrealized Loss | (118) | (75) |
Total Fair Value | 14,350 | 14,510 |
Total Unrealized Loss | $ (348) | $ (180) |
Financial Instruments (Non-Mark
Financial Instruments (Non-Marketable Debt Securities) (Details) - Level 3 - Non-Marketable Debt Securities - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Investments Not Readily Marketable | ||
Beginning balance | $ 1,894 | $ 1,165 |
Total net gains (losses) | ||
Included in earnings | (21) | 0 |
Included in other comprehensive income | 393 | 65 |
Purchases | 2 | 64 |
Sales | 0 | (1) |
Settlements | (34) | (3) |
Ending balance | $ 2,234 | $ 1,290 |
Financial Instruments (Marketab
Financial Instruments (Marketable Equity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Level 1 | ||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Cash and Cash Equivalents | $ 4,020 | $ 1,833 |
Marketable Securities | 581 | 340 |
Level 2 | ||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Cash and Cash Equivalents | 339 | 1,724 |
Marketable Securities | 89,410 | 90,564 |
Money market and other funds | Level 1 | ||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Cash and Cash Equivalents | 4,020 | 1,833 |
Marketable equity securities | Level 1 | ||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Marketable Securities | 581 | 340 |
Mutual funds | Level 2 | ||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Marketable Securities | 236 | 252 |
Equity Securities | ||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Cash and Cash Equivalents | 4,020 | 1,833 |
Marketable Securities | $ 817 | $ 592 |
Financial Instruments (Measurem
Financial Instruments (Measurement Alternative Investments) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Adjustments to Carrying Value of Non-Marketable Equity Securities | |
Upward adjustments (gross unrealized gains) | $ 2,511 |
Downward adjustments (including impairment) (gross unrealized losses) | (23) |
Total | 2,488 |
Equity Securities, FV-NI, Gain (Loss), Alternative [Abstract] | |
Realized gain (loss) for equity securities sold | 387 |
Unrealized gain (loss) on equity securities held | 2,644 |
Total gain (loss) recognized in other income (expense), net | $ 3,031 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Assets: | ||
Derivative Assets | $ 223 | $ 102 |
Derivative Liabilities: | ||
Derivative Liabilities | 442 | 374 |
Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 186 | 80 |
Derivative Liabilities: | ||
Derivative Liabilities | 405 | 352 |
Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 186 | 80 |
Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 405 | 352 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 37 | 51 |
Derivative Liabilities: | ||
Derivative Liabilities | 285 | 230 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 37 | 51 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 285 | 230 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 149 | 29 |
Derivative Liabilities: | ||
Derivative Liabilities | 120 | 122 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 149 | 29 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | $ 120 | $ 122 |
Financial Instruments (Effect o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Revenues | $ 31,146 | $ 24,750 |
Other income (expense), net | 3,542 | 251 |
Revenues | ||
Foreign exchange contracts | ||
Total gains (losses) | (239) | 217 |
Other income (expense), net | ||
Foreign exchange contracts | ||
Total gains (losses) | (89) | (172) |
Foreign exchange contracts | Revenues | Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments | 0 | 0 |
Foreign exchange contracts | Other income (expense), net | Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments | (100) | (202) |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount included in the assessment of effectiveness | (319) | (313) |
Amount excluded from the assessment of effectiveness | (7) | 0 |
Total | (326) | (313) |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||
Foreign exchange contracts | ||
Amount of gains (losses) reclassified from AOCI to income | (247) | 217 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 8 | 0 |
Foreign exchange contracts | ||
Amount excluded from the assessment of effectiveness | 0 | 0 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Other income (expense), net | ||
Foreign exchange contracts | ||
Amount of gains (losses) reclassified from AOCI to income | 0 | 0 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 0 | 0 |
Foreign exchange contracts | ||
Amount excluded from the assessment of effectiveness | 0 | 26 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Revenues | ||
Foreign exchange contracts | ||
Hedged items | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 |
Amount excluded from the assessment of effectiveness | 0 | 0 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Other income (expense), net | ||
Foreign exchange contracts | ||
Hedged items | 113 | 51 |
Derivatives designated as hedging instruments | (113) | (51) |
Amount excluded from the assessment of effectiveness | $ 11 | $ 4 |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting of Assets | ||
Gross Amounts of Recognized Assets | $ 223 | $ 102 |
Gross Amounts Offset in the Consolidated Balance Sheets | (37) | (22) |
Net Presented in the Consolidated Balance Sheets | 186 | 80 |
Financial Instruments | (124) | (64) |
Cash Collateral Received | (58) | (4) |
Non-Cash Collateral Received | 0 | (2) |
Net Assets Exposed | 4 | 10 |
Offsetting of Liabilities | ||
Gross Amounts of Recognized Liabilities | 442 | 374 |
Gross Amounts Offset in the Consolidated Balance Sheets | (37) | (22) |
Net Presented in the Consolidated Balance Sheets | 405 | 352 |
Financial Instruments | (124) | (64) |
Cash Collateral Pledged | 0 | 0 |
Non-Cash Collateral Pledged | 0 | 0 |
Net Liabilities | $ 281 | $ 288 |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2018 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Assets not available for use | $ 1,700 | $ 1,500 |
Liabilities with no recourse | 997 | 906 |
Variable interest entity | Verily | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Consideration received | 800 | |
Calico | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Accumulated payments for other commitments | 240 | |
Commitment to Invest | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Research commitments | 490 | |
Research and development arrangement | AbbVie Inc | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Accumulated payments for other commitments | 750 | |
Research and development arrangement | Calico | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Accumulated payments for other commitments | 250 | |
Research commitments | 500 | |
Renewable Energy Investments | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Carrying value | 896 | 877 |
Maximum exposure | $ 896 | $ 877 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | |||||
Apr. 30, 2016USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Feb. 28, 2014USD ($) | May 31, 2011USD ($)Tranche | |
Debt Instrument [Line Items] | ||||||
Commercial paper | $ 1,300,000,000 | $ 0 | ||||
Estimated fair value of long-term debt | $ 3,900,000,000 | 4,000,000,000 | ||||
3.625% Notes due on May 19, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.734% | |||||
3.375% Notes due on February 25, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.377% | |||||
1.998% Notes due on August 15, 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.231% | |||||
Unsecured debt | Unsecured Senior Notes 3.375% due on February 2024 and Unsecured Senior Notes 3.625% Due May 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 1,700,000,000 | |||||
Gain (loss) on modification of debt | 0 | |||||
Unsecured debt | 2016 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 2,000,000,000 | |||||
Google | Unsecured Senior Notes 3.375% due on February 2024 and Unsecured Senior Notes 3.625% Due May 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt subject to exchange | $ 1,700,000,000 | |||||
Google | Unsecured debt | 2011 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 3,000,000,000 | |||||
Number of tranches (in tranche) | Tranche | 3 | |||||
Google | Unsecured debt | 2014 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 1,000,000,000 | |||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing on short term lines of credit | $ 5,000,000,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing on short term lines of credit | 4,000,000,000 | |||||
Line of credit drawn | $ 0 | $ 0 | ||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Weighted average interest rate | 1.70% |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Long-Term Debt | ||
Unamortized discount for the Notes above | $ (56) | $ (57) |
Subtotal | 3,944 | 3,943 |
Total long-term debt | 3,973 | 3,969 |
3.625% Notes due on May 19, 2021 | ||
Long-Term Debt | ||
Long-term debt | 1,000 | 1,000 |
Capital lease obligation | $ 29 | 26 |
Long-term debt, interest rate | 3.625% | |
3.375% Notes due on February 25, 2024 | ||
Long-Term Debt | ||
Long-term debt | $ 1,000 | 1,000 |
Total long-term debt | $ 3,973 | 3,969 |
Long-term debt, interest rate | 3.375% | |
1.998% Notes due on August 15, 2026 | ||
Long-Term Debt | ||
Long-term debt | $ 2,000 | $ 2,000 |
Long-term debt, interest rate | 1.998% |
Supplemental Financial Statem48
Supplemental Financial Statement Information (Property and Equipment) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 67,801 | $ 59,647 |
Less: accumulated depreciation | (18,956) | (17,264) |
Property and equipment, net | 48,845 | 42,383 |
Cost basis of property and equipment under capital lease | 455 | 390 |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 26,879 | 23,183 |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 23,795 | 21,429 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 12,357 | 10,491 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 4,720 | 4,496 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 50 | $ 48 |
Supplemental Financial Statem49
Supplemental Financial Statement Information (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Components Disclosure [Abstract] | ||
European Commission fine | $ 3,028 | $ 2,874 |
Accrued customer liabilities | 1,457 | 1,489 |
Other accrued expenses and current liabilities | 5,580 | 5,814 |
Accrued expenses and other current liabilities | $ 10,065 | $ 10,177 |
Supplemental Financial Statem50
Supplemental Financial Statement Information (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | |
Components of AOCI, net of tax | |||
Beginning Balance | $ 152,502 | ||
Other comprehensive income (loss) before reclassifications | 96 | $ 361 | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | (7) | ||
Amounts reclassified from AOCI | 233 | (128) | |
Other comprehensive income (loss) | 322 | 233 | |
Ending Balance | 160,825 | ||
Foreign Currency Translation Adjustments | |||
Components of AOCI, net of tax | |||
Beginning Balance | (1,103) | (2,646) | |
Other comprehensive income (loss) before reclassifications | 657 | 451 | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | |
Other comprehensive income (loss) | 657 | 451 | |
Ending Balance | (446) | (2,195) | |
Unrealized Gains (Losses) on Available-for-Sale Investments | |||
Components of AOCI, net of tax | |||
Beginning Balance | 233 | (179) | |
Other comprehensive income (loss) before reclassifications | (306) | 139 | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | ||
Amounts reclassified from AOCI | 39 | 25 | |
Other comprehensive income (loss) | (267) | 164 | |
Ending Balance | (34) | (15) | |
Unrealized Gains (Losses) on Cash Flow Hedges | |||
Components of AOCI, net of tax | |||
Beginning Balance | (122) | 423 | |
Other comprehensive income (loss) before reclassifications | (255) | (229) | |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | (7) | ||
Amounts reclassified from AOCI | 194 | (153) | |
Other comprehensive income (loss) | (68) | (382) | |
Ending Balance | (190) | 41 | |
Total | |||
Components of AOCI, net of tax | |||
Beginning Balance | (992) | (2,402) | |
Ending Balance | $ (670) | $ (2,169) | |
Accounting Standards Update 2016-01 | Retained earnings | |||
Components of AOCI, net of tax | |||
Cumulative adjustment to equity | $ 98 | ||
Accounting Standards Update 2016-01 | Total | |||
Components of AOCI, net of tax | |||
Cumulative adjustment to equity | $ (98) |
Supplemental Financial Statem51
Supplemental Financial Statement Information (Effects on Net Income of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | $ 31,146 | $ 24,750 |
Other income (expense), net | 3,542 | 251 |
Benefit (provision) for income taxes | (1,142) | (1,393) |
Net income | 9,401 | 5,426 |
Total amount reclassified, net of tax | (233) | 128 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on available-for-sale investments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | (39) | (25) |
Benefit (provision) for income taxes | 0 | 0 |
Net income | (39) | (25) |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | (194) | 153 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on cash flow hedges | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | (247) | 217 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on cash flow hedges | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | 1 | 1 |
Benefit (provision) for income taxes | $ 52 | $ (65) |
Supplemental Financial Statem52
Supplemental Financial Statement Information (Schedule of Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Balance Sheet Components Disclosure [Abstract] | ||
Interest income | $ 399 | $ 312 |
Interest expense | (30) | (25) |
Foreign currency exchange losses, net | (24) | (2) |
Loss on debt securities, net | (39) | (25) |
Gain on equity securities, net | 3,031 | 6 |
Loss and impairment from equity method investments, net | (7) | (49) |
Other | 212 | 34 |
Other income (expense), net | 3,542 | 251 |
Interest costs capitalized | $ 16 | $ 7 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 17,862 | $ 16,747 | |
HTC | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 1,100 | ||
Cash acquired | 10 | ||
Acquired intangible assets | 165 | ||
Goodwill | 934 | ||
Net liabilities assumed | $ 9 | ||
Other acquisitions | |||
Business Acquisition [Line Items] | |||
Total consideration | 304 | ||
Cash acquired | 2 | ||
Acquired intangible assets | 159 | ||
Goodwill | 147 | ||
Net liabilities assumed | 4 | ||
Amount of goodwill expected to be deductible for tax purposes | $ 54 | ||
Other acquisitions | Patents and developed technology | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful life | 3 years 10 months | ||
Other acquisitions | Customer relationships | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful life | 2 years 2 months | ||
Other acquisitions | Trade names and other | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful life | 3 years 10 months |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2017 | $ 16,747 |
Acquisitions | 1,081 |
Transfers | 0 |
Foreign currency translation and other adjustments | 34 |
Balance as of March 31, 2018 | 17,862 |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2017 | 16,295 |
Acquisitions | 1,081 |
Transfers | 80 |
Foreign currency translation and other adjustments | 36 |
Balance as of March 31, 2018 | 17,492 |
Other Bets | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2017 | 452 |
Acquisitions | 0 |
Transfers | (80) |
Foreign currency translation and other adjustments | (2) |
Balance as of March 31, 2018 | $ 370 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 6,334 | $ 6,163 | |
Accumulated Amortization | 3,525 | 3,471 | |
Net Carrying Amount | 2,809 | 2,692 | |
Patents and developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 5,315 | 5,260 | |
Accumulated Amortization | 3,066 | 3,040 | |
Net Carrying Amount | 2,249 | 2,220 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 376 | 359 | |
Accumulated Amortization | 284 | 263 | |
Net Carrying Amount | 92 | 96 | |
Trade names and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 643 | 544 | |
Accumulated Amortization | 175 | 168 | |
Net Carrying Amount | 468 | $ 376 | |
Acquisition-related intangible assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquisition-related intangible assets | $ 195 | $ 206 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2018 | $ 608 |
2,019 | 704 |
2,020 | 578 |
2,021 | 532 |
2,022 | 218 |
Thereafter | 169 |
Net Carrying Value | $ 2,809 |
Contingencies (Details)
Contingencies (Details) € in Millions, $ in Millions | Feb. 08, 2018USD ($) | Jun. 27, 2017USD ($) | Jun. 27, 2017EUR (€) |
European Commission Antitrust Investigation | |||
Loss Contingencies [Line Items] | |||
European Commission fine | $ 21 | $ 2,740 | € 2,420 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - Class C Capital Stock - Share Repurchase Program - USD ($) shares in Millions, $ in Billions | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 31, 2018 | Oct. 31, 2016 | |
Stockholders Equity Note [Line Items] | |||
Authorized share repurchase amount | $ 7 | ||
Additional authorized amount | $ 8.6 | ||
Repurchases of capital stock (in shares) | 2 | ||
Repurchases of capital stock | $ 2.2 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Denominator | ||
Basic net income per share (in dollars per share) | $ 13.53 | $ 7.85 |
Weighted-average effect of dilutive securities | ||
Diluted net income per share (in dollars per share) | $ 13.33 | $ 7.73 |
Class A Common Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 4,039 | $ 2,331 |
Denominator | ||
Number of shares used in basic computation (shares) | 298,449 | 297,150 |
Basic net income per share (in dollars per share) | $ 13.53 | $ 7.85 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 4,039 | $ 2,331 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 635 | 371 |
Reallocation of undistributed earnings | (57) | (29) |
Allocation of undistributed earnings | $ 4,617 | $ 2,673 |
Denominator | ||
Number of shares used in basic computation (shares) | 298,449 | 297,150 |
Weighted-average effect of dilutive securities | ||
Conversion of Class B to Class A common shares outstanding (shares) | 46,956 | 47,301 |
Number of shares used in per share computation (shares) | 346,303 | 345,870 |
Diluted net income per share (in dollars per share) | $ 13.33 | $ 7.73 |
Class A Common Stock | Restricted stock units and other contingently issuable shares | ||
Weighted-average effect of dilutive securities | ||
Restricted stock units and other contingently issuable shares (shares) | 898 | 1,419 |
Class B Common Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 635 | $ 371 |
Denominator | ||
Number of shares used in basic computation (shares) | 46,956 | 47,301 |
Basic net income per share (in dollars per share) | $ 13.53 | $ 7.85 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 635 | $ 371 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings | (9) | (5) |
Allocation of undistributed earnings | $ 626 | $ 366 |
Denominator | ||
Number of shares used in basic computation (shares) | 46,956 | 47,301 |
Weighted-average effect of dilutive securities | ||
Conversion of Class B to Class A common shares outstanding (shares) | 0 | 0 |
Number of shares used in per share computation (shares) | 46,956 | 47,301 |
Diluted net income per share (in dollars per share) | $ 13.33 | $ 7.73 |
Class B Common Stock | Restricted stock units and other contingently issuable shares | ||
Weighted-average effect of dilutive securities | ||
Restricted stock units and other contingently issuable shares (shares) | 0 | 0 |
Class C Capital Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 4,727 | $ 2,724 |
Denominator | ||
Number of shares used in basic computation (shares) | 349,347 | 347,104 |
Basic net income per share (in dollars per share) | $ 13.53 | $ 7.85 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 4,727 | $ 2,724 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings | 57 | 29 |
Allocation of undistributed earnings | $ 4,784 | $ 2,753 |
Denominator | ||
Number of shares used in basic computation (shares) | 349,347 | 347,104 |
Weighted-average effect of dilutive securities | ||
Conversion of Class B to Class A common shares outstanding (shares) | 0 | 0 |
Number of shares used in per share computation (shares) | 358,831 | 356,166 |
Diluted net income per share (in dollars per share) | $ 13.33 | $ 7.73 |
Class C Capital Stock | Restricted stock units and other contingently issuable shares | ||
Weighted-average effect of dilutive securities | ||
Restricted stock units and other contingently issuable shares (shares) | 9,484 | 9,062 |
Compensation Plans (Narrative)
Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stockholders Equity Note [Line Items] | ||
Stock-based compensation expense | $ 2,500 | $ 2,100 |
Awards expected to be settled with stock | 2,457 | $ 2,009 |
Performance fees | 632 | |
Restricted Stock Units (RSUs) | ||
Stockholders Equity Note [Line Items] | ||
Unrecognized compensation cost | $ 20,000 | |
Weighted average recognition period for unrecognized stock-based compensation expense | 2 years 9 months 20 days |
Compensation Plans (Unvested Re
Compensation Plans (Unvested Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Unvested restricted stock units - number of shares | |
Unvested at beginning of period (in shares) | shares | 20,077,346 |
Granted (in shares) | shares | 9,086,353 |
Vested (in shares) | shares | (2,940,503) |
Forfeited/canceled (in shares) | shares | (367,368) |
Unvested at end of period (in shares) | shares | 25,855,828 |
Unvested restricted stock units - weighted-average grant-date fair value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 712.45 |
Granted (in dollars per share) | $ / shares | 1,084.56 |
Vested (in dollars per share) | $ / shares | 722.72 |
Forfeited/canceled (in dollars per share) | $ / shares | 791.33 |
Unvested at end of period (in dollars per share) | $ / shares | $ 840.89 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits | $ 5 | $ 4.7 |
Unrecognized tax benefits that would impact effective tax rate | $ 3.4 | $ 3 |
Effective tax rate percent | 10.80% | |
Effective income tax rate reconciliation, foreign income taxed at lower rates | 6.20% | |
Effective income tax rate reconciliation, release of deferred tax asset valuation allowance | 4.10% | |
Effective income tax rate reconciliation, general business credit | 2.30% | |
Effective income tax rate reconciliation, other items | 0.20% | |
Effective income tax rate reconciliation, additional unrecognized tax benefits | 2.60% |
Information about Segments an63
Information about Segments and Geographic Areas (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 31,146 | $ 24,750 |
Segment Reporting Information [Line Items] | ||
Revenues | 30,996 | 24,618 |
Other Bets | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 150 | $ 132 |
Information about Segments an64
Information about Segments and Geographic Areas (Operating Income (Loss) by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | $ 7,001 | $ 6,568 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 8,368 | 7,446 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | (571) | (703) |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | $ (796) | $ (175) |
Information about Segments an65
Information about Segments and Geographic Areas (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 7,299 | $ 2,508 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 7,669 | 2,409 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 55 | 167 |
Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ (425) | $ (68) |
Information about Segments an66
Information about Segments and Geographic Areas (Stock-based Compensation and Depreciation, Amortization and Impairment by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | $ 2,457 | $ 2,009 |
Depreciation, amortization and impairment | 1,986 | 1,503 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | 2,304 | 1,882 |
Depreciation, amortization and impairment | 1,901 | 1,416 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | 112 | 86 |
Depreciation, amortization and impairment | 85 | 87 |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | $ 41 | $ 41 |
Information about Segments an67
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 83,174 | $ 72,987 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 62,347 | 55,113 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 20,827 | $ 17,874 |