Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 22, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GOOG, GOOGL | |
Entity Registrant Name | Alphabet Inc. | |
Entity Central Index Key | 0001652044 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 299,436,023 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 46,544,284 | |
Class C Capital Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 348,263,508 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 19,148 | $ 16,701 |
Marketable securities | 94,340 | 92,439 |
Total cash, cash equivalents, and marketable securities | 113,488 | 109,140 |
Accounts receivable, net of allowance of $729 and $761 | 19,149 | 20,838 |
Income taxes receivable, net | 111 | 355 |
Inventory | 1,053 | 1,107 |
Other current assets | 4,406 | 4,236 |
Total current assets | 138,207 | 135,676 |
Non-marketable investments | 14,474 | 13,859 |
Deferred income taxes | 750 | 737 |
Property and equipment, net | 60,528 | 59,719 |
Operating lease assets | 8,837 | 0 |
Intangible assets, net | 2,063 | 2,220 |
Goodwill | 17,943 | 17,888 |
Other non-current assets | 2,547 | 2,693 |
Total assets | 245,349 | 232,792 |
Current liabilities: | ||
Accounts payable | 3,710 | 4,378 |
Accrued compensation and benefits | 5,072 | 6,839 |
Accrued expenses and other current liabilities | 19,382 | 16,958 |
Accrued revenue share | 4,318 | 4,592 |
Deferred revenue | 1,667 | 1,784 |
Income taxes payable, net | 761 | 69 |
Total current liabilities | 34,910 | 34,620 |
Long-term debt | 4,066 | 4,012 |
Deferred revenue, non-current | 391 | 396 |
Income taxes payable, non-current | 11,605 | 11,327 |
Deferred income taxes | 1,282 | 1,264 |
Operating lease liabilities | 8,206 | 0 |
Other long-term liabilities | 1,417 | 3,545 |
Total liabilities | 61,877 | 55,164 |
Commitments and Contingencies (Note 10) | ||
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); 695,556 (Class A 299,242, Class B 46,636, Class C 349,678) and 694,782 (Class A 299,444, Class B 46,527, Class C 348,811) shares issued and outstanding | 46,532 | 45,049 |
Accumulated other comprehensive loss | (1,780) | (2,306) |
Retained earnings | 138,720 | 134,885 |
Total stockholders’ equity | 183,472 | 177,628 |
Total liabilities and stockholders’ equity | $ 245,349 | $ 232,792 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance | $ 761 | $ 729 |
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) | 694,782,000 | 695,556,000 |
Common stock and capital stock, shares outstanding (in shares) | 694,782,000 | 695,556,000 |
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) | 299,444,000 | 299,242,000 |
Common stock and capital stock, shares outstanding (in shares) | 299,444,000 | 299,242,000 |
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) | 46,527,000 | 46,636,000 |
Common stock and capital stock, shares outstanding (in shares) | 46,527,000 | 46,636,000 |
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) | 348,811,000 | 349,678,000 |
Common stock and capital stock, shares outstanding (in shares) | 348,811,000 | 349,678,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 36,339 | $ 31,146 |
Costs and expenses: | ||
Cost of revenues | 16,012 | 13,467 |
Research and development | 6,029 | 5,039 |
Sales and marketing | 3,905 | 3,604 |
General and administrative | 2,088 | 1,403 |
European Commission fine | 1,697 | 0 |
Total costs and expenses | 29,731 | 23,513 |
Income from operations | 6,608 | 7,633 |
Other income (expense), net | 1,538 | 2,910 |
Income before income taxes | 8,146 | 10,543 |
Provision for income taxes | 1,489 | 1,142 |
Net income | $ 6,657 | $ 9,401 |
Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 9.58 | $ 13.53 |
Diluted net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 9.50 | $ 13.33 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6,657 | $ 9,401 |
Other comprehensive income: | ||
Change in foreign currency translation adjustment | (36) | 657 |
Available-for-sale investments: | ||
Change in net unrealized gains (losses) | 719 | (208) |
Less: reclassification adjustment for net (gains) losses included in net income | 7 | 39 |
Net change (net of tax effect of $0 and $88) | 726 | (169) |
Cash flow hedges: | ||
Change in net unrealized gains (losses) | (30) | (262) |
Less: reclassification adjustment for net (gains) losses included in net income | (104) | 194 |
Net change (net of tax effect of $12 and $1) | (134) | (68) |
Other comprehensive income | 556 | 420 |
Comprehensive income | $ 7,213 | $ 9,821 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Tax expense (benefit) related to available-for-sale investments | $ 88 | $ 0 |
Tax expense (benefit) related to cash flow hedges | $ (1) | $ (12) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Statement - USD ($) shares in Thousands, $ in Millions | Total | Class A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | Accumulated other comprehensive income (loss) | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2017 | 694,783 | |||
Beginning Balance at Dec. 31, 2017 | $ 152,502 | $ 40,247 | $ (992) | $ 113,247 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common and capital stock issued (in shares) | 2,144 | |||
Common and capital stock issued | 51 | $ 51 | ||
Stock-based compensation expense | 2,457 | 2,457 | ||
Tax withholding related to vesting of restricted stock units and other | (1,136) | $ (1,136) | ||
Repurchases of capital stock (in shares) | (1,982) | |||
Repurchases of capital stock | (2,173) | $ (132) | (2,041) | |
Sale of subsidiary shares | 0 | $ 0 | ||
Net income | 9,401 | 9,401 | ||
Other comprehensive income | 420 | 420 | ||
Ending Balance (in shares) at Mar. 31, 2018 | 694,945 | |||
Ending Balance at Mar. 31, 2018 | 160,825 | $ 41,487 | (670) | 120,008 |
Beginning Balance (in shares) at Dec. 31, 2018 | 695,556 | |||
Beginning Balance at Dec. 31, 2018 | 177,628 | $ 45,049 | (2,306) | 134,885 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common and capital stock issued (in shares) | 1,912 | |||
Common and capital stock issued | 39 | $ 39 | ||
Stock-based compensation expense | 2,788 | 2,788 | ||
Tax withholding related to vesting of restricted stock units and other | (1,184) | $ (1,184) | ||
Repurchases of capital stock (in shares) | (2,686) | |||
Repurchases of capital stock | (3,025) | $ (207) | (2,818) | |
Sale of subsidiary shares | 47 | $ 47 | ||
Net income | 6,657 | 6,657 | ||
Other comprehensive income | 556 | 556 | ||
Ending Balance (in shares) at Mar. 31, 2019 | 694,782 | |||
Ending Balance at Mar. 31, 2019 | $ 183,472 | $ 46,532 | $ (1,780) | $ 138,720 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income | $ 6,657 | $ 9,401 |
Adjustments: | ||
Depreciation and impairment of property and equipment | 2,416 | 1,791 |
Amortization and impairment of intangible assets | 197 | 195 |
Stock-based compensation expense | 2,769 | 2,457 |
Deferred income taxes | (73) | (18) |
Gain on debt and equity securities, net | (1,081) | (2,992) |
Other | 22 | (257) |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 1,172 | 1,700 |
Income taxes, net | 1,068 | 782 |
Other assets | (265) | (241) |
Accounts payable | (425) | 122 |
Accrued expenses and other liabilities | (229) | (1,142) |
Accrued revenue share | (147) | (286) |
Deferred revenue | (81) | 130 |
Net cash provided by operating activities | 12,000 | 11,642 |
Investing activities | ||
Purchases of property and equipment | (4,638) | (7,299) |
Proceeds from disposals of property and equipment | 34 | 30 |
Purchases of marketable securities | (20,883) | (8,849) |
Maturities and sales of marketable securities | 21,006 | 9,351 |
Purchases of non-marketable investments | (907) | (327) |
Maturities and sales of non-marketable investments | 99 | 498 |
Acquisitions, net of cash acquired, and purchases of intangible assets | (99) | (1,250) |
Net cash used in investing activities | (5,388) | (7,846) |
Financing activities | ||
Net payments related to stock-based award activities | (1,175) | (1,158) |
Repurchases of capital stock | (3,025) | (2,173) |
Proceeds from issuance of debt, net of costs | 315 | 4,691 |
Repayments of debt | (345) | (3,378) |
Proceeds from sale of subsidiary shares | 47 | 0 |
Net cash used in financing activities | (4,183) | (2,018) |
Effect of exchange rate changes on cash and cash equivalents | 18 | 165 |
Net increase in cash and cash equivalents | 2,447 | 1,943 |
Cash and cash equivalents at beginning of period | 16,701 | 10,715 |
Cash and cash equivalents at end of period | $ 19,148 | $ 12,658 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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. Noncontrolling interests are not presented separately as the amounts are not material. All intercompany balances and transactions have been eliminated. Unaudited Interim Financial Information The Consolidated Balance Sheet as of March 31, 2019 , the Consolidated Statements of Income for the three months ended March 31, 2018 and 2019 , the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2018 and 2019 , the Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2018 and 2019 and the Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2019 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, 2019 , our results of operations for the three months ended March 31, 2018 and 2019 , and our cash flows for the three months ended March 31, 2018 and 2019 . The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 . 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, 2018 , as amended, filed with the SEC. 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 bad debt allowance, 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. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (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 model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. We will adopt ASU 2016-13 effective January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings. We are currently evaluating new credit loss models and updating our processes and controls in preparation for the adoption of ASU 2016-13. The effect on our consolidated financial statements will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. Recently adopted accounting pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease requirements in Accounting Standards Codification 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. We adopted Topic 842 effective January 1, 2019. The most significant effects of Topic 842 were the recognition of $8.0 billion of operating lease assets and $8.4 billion of operating lease liabilities and the de-recognition of $1.5 billion of build-to-suit assets and liabilities. We applied Topic 842 to all leases as of January 1, 2019 with comparative periods continuing to be reported under Topic 840. In the adoption of Topic 842, we carried forward the assessment from Topic 840 of whether our contracts contain or are leases, the classification of our leases, and remaining lease terms. Our accounting for finance leases remains substantially unchanged. The standard does not have a significant effect on our consolidated results of operations or cash flows. See Note 4 for further details. Prior Period Reclassifications |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregated Revenues 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, 2018 2019 Google properties $ 21,998 $ 25,682 Google Network Members' properties 4,644 5,038 Google advertising revenues 26,642 30,720 Google other revenues 4,354 5,449 Other Bets revenues 150 170 Total revenues (1) $ 31,146 $ 36,339 (1) Revenues include hedging gains (losses) of $(239) million and $137 million for the three months ended March 31, 2018 and 2019 , respectively, which do not represent revenues recognized from contracts with customers. The following table presents our revenues disaggregated by geography, based on the addresses of our customers (in millions, unaudited): Three Months Ended March 31, 2018 2019 United States $ 14,144 45 % $ 16,532 45 % EMEA (1) 10,474 34 11,791 33 APAC (1) 4,804 15 6,112 17 Other Americas (1) 1,724 6 1,904 5 Total revenues (2) $ 31,146 100 % $ 36,339 100 % (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, 2018 and 2019 . Deferred Revenues We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. The decrease in the deferred revenue balance for the three months ended March 31, 2019 was primarily driven by the recognition of $826 million of revenues that were included in the deferred revenue balance as of December 31, 2018 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments 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. The following tables summarize our debt securities by significant investment categories as of December 31, 2018 and March 31, 2019 (in millions): As of December 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Level 2: Time deposits (1) $ 2,202 $ 0 $ 0 $ 2,202 $ 2,202 $ 0 Government bonds 53,634 71 (414 ) 53,291 3,717 49,574 Corporate debt securities 25,383 15 (316 ) 25,082 44 25,038 Mortgage-backed and asset-backed securities 16,918 11 (324 ) 16,605 0 16,605 Total $ 98,137 $ 97 $ (1,054 ) $ 97,180 $ 5,963 $ 91,217 As of March 31, 2019 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable (unaudited) Level 2: Time deposits (1) $ 2,612 $ 0 $ 0 $ 2,612 $ 2,598 $ 14 Government bonds 54,291 195 (206 ) 54,280 4,114 50,166 Corporate debt securities 25,482 128 (109 ) 25,501 8 25,493 Mortgage-backed and asset-backed securities 16,465 36 (188 ) 16,313 0 16,313 Total $ 98,850 $ 359 $ (503 ) $ 98,706 $ 6,720 $ 91,986 (1) The majority of our time deposits are domestic deposits. We determine realized gains or losses on the sale or extinguishment of debt securities on a specific identification method. We recognized gross realized gains of $2 million and $46 million for the three months ended March 31, 2018 and 2019 , respectively. We recognized gross realized losses of $41 million and $48 million for the three months ended March 31, 2018 and 2019 , 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 $ 21,969 Due in 1 year through 5 years 57,477 Due in 5 years through 10 years 2,522 Due after 10 years 10,018 Total $ 91,986 The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2018 and March 31, 2019 , 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, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Government bonds $ 12,019 $ (85 ) $ 23,877 $ (329 ) $ 35,896 $ (414 ) Corporate debt securities 10,171 (107 ) 11,545 (209 ) 21,716 (316 ) Mortgage-backed and asset-backed securities 5,534 (75 ) 8,519 (249 ) 14,053 (324 ) Total $ 27,724 $ (267 ) $ 43,941 $ (787 ) $ 71,665 $ (1,054 ) As of March 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized (unaudited) Government bonds $ 1,089 $ (1 ) $ 24,177 $ (205 ) $ 25,266 $ (206 ) Corporate debt securities 1,503 (5 ) 13,503 (104 ) 15,006 (109 ) Mortgage-backed and asset-backed securities 899 (2 ) 10,361 (186 ) 11,260 (188 ) Total $ 3,491 $ (8 ) $ 48,041 $ (495 ) $ 51,532 $ (503 ) During the three months ended March 31, 2018 and 2019 , 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 7 The following discusses our marketable equity securities, non-marketable equity securities, gains and losses on marketable and non-marketable equity securities, as well as our equity securities accounted for under the equity method. 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. The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2018 and March 31, 2019 (in millions): As of December 31, 2018 Cash and Cash Equivalents Marketable Level 1: Money market funds $ 3,493 $ 0 Marketable equity securities 0 994 3,493 994 Level 2: Mutual funds 0 228 Total $ 3,493 $ 1,222 As of March 31, 2019 (unaudited) Cash and Cash Equivalents Marketable Securities Level 1: Money market funds $ 6,452 $ 0 Marketable equity securities (1) 0 2,115 6,452 2,115 Level 2: Mutual funds 0 239 Total $ 6,452 $ 2,354 (1) Includes an investment that was reclassified from non-marketable equity securities following the initial public offering of the issuer. Non-marketable equity securities Our non-marketable equity securities are investments in privately held companies without readily determinable market values. The carrying value of our non-marketable equity securities is adjusted to fair value for 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. Non-marketable equity securities that have been remeasured 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. 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 (in millions, unaudited): Three Months Ended March 31, 2018 2019 Unrealized gains $ 2,511 $ 456 Unrealized losses (including impairment) (23 ) (66 ) Total unrealized gain (loss) for non-marketable equity securities $ 2,488 $ 390 The following table summarizes the total carrying value of our non-marketable equity securities held as of March 31, 2019 including cumulative unrealized gains and losses (in millions, unaudited): Initial cost basis $ 8,561 Unrealized gains 4,634 Unrealized losses (including impairment) (248 ) Total carrying value at the end of the period $ 12,947 During the three months ended March 31, 2019 , included in the $12.9 billion of non-marketable equity securities, $1.4 billion were measured at fair value based on observable market transactions, resulting in a net unrealized gain of $390 million . Gains and losses on marketable and non-marketable equity securities Gains and losses for our marketable and non-marketable equity securities are summarized below (in millions, unaudited): Three Months Ended March 31, 2018 2019 Net gain (loss) on equity securities sold during the period $ 387 $ 42 Unrealized gain (loss) on equity securities held as of the end of the period (1) 2,644 1,041 Total gain (loss) recognized in other income (expense), net $ 3,031 $ 1,083 (1) Includes $2,488 million and $390 million related to non-marketable equity securities for the three months ended March 31, 2018 and 2019 , respectively. In the table above, net gain (loss) on equity securities sold during the period reflects the difference between the sale proceeds and the carrying value of the equity securities at the beginning of the period or the purchase date, if later. The cumulative net gain measured as the sale price less the initial purchase price for equity securities sold during the period ending March 31, 2019 was $118 million . Equity securities accounted for under the Equity Method Equity securities accounted for under the equity method had a carrying value of approximately $ 1.3 billion as of December 31, 2018 and March 31, 2019 . Our share of gains and losses including impairment are included as a component of other income (expense), net. See Note 7 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 accumulated other comprehensive income (AOCI), as discussed below. Any components excluded from the assessment of hedge effectiveness are recognized in the same income statement line as the hedged item. We enter into foreign currency contracts with financial institutions to reduce the risk that our cash flows, earnings, and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We also 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, 2018 and March 31, 2019 , we received cash collateral related to the derivative instruments under our collateral security arrangements of $327 million and $518 million , respectively, which was included in other current assets. 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 $11.8 billion and $12.4 billion as of December 31, 2018 and March 31, 2019 , 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 assessment of hedge effectiveness 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, 2019 , the net accumulated gain on our foreign currency cash flow hedges before tax effect was $113 million , which 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 $2.0 billion as of both December 31, 2018 and March 31, 2019 . 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. Net Investment Hedges We use forward contracts designated as net investment hedges to hedge the foreign currency risks related to our investment in foreign subsidiaries. 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 $6.7 billion and $ 7.1 billion as of December 31, 2018 and March 31, 2019 , respectively. Gains and losses on these forward contracts are recognized in AOCI as part of the foreign currency translation adjustment. 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 $20.1 billion and $18.6 billion as of December 31, 2018 and March 31, 2019 , respectively. The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2018 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 $ 459 $ 54 $ 513 Total $ 459 $ 54 $ 513 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 5 $ 228 $ 233 Total $ 5 $ 228 $ 233 As of March 31, 2019 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 $ 475 $ 15 $ 490 Total $ 475 $ 15 $ 490 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 13 $ 348 $ 361 Total $ 13 $ 348 $ 361 The gains (losses) on derivatives in cash flow hedging and net investment hedging relationships recognized in other comprehensive income (OCI) are summarized below (in millions, unaudited): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Three Months Ended March 31, 2018 2019 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ (319 ) $ (6 ) Amount excluded from the assessment of effectiveness (7 ) (30 ) Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 0 64 Total $ (326 ) $ 28 The effect of derivative instruments on income is summarized below (in millions, unaudited): Gains (Losses) Recognized in Income Three Months Ended March 31, 2018 2019 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 $ 31,146 $ 2,910 $ 36,339 $ 1,538 Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ (247 ) $ 0 $ 128 $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 8 0 9 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 113 0 22 Derivatives designated as hedging instruments 0 (113 ) 0 (22 ) Amount excluded from the assessment of effectiveness 0 11 0 10 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 0 0 54 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Derivatives not designated as hedging instruments 0 (100 ) 0 (249 ) Total gains (losses) $ (239 ) $ (89 ) $ 137 $ (185 ) 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, 2018 and March 31, 2019 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets As of December 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 Derivatives $ 569 $ (56 ) $ 513 $ (90 ) (1) $ (307 ) $ (14 ) $ 102 As of March 31, 2019 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 $ 529 $ (39 ) $ 490 $ (85 ) (1) $ (399 ) $ (2 ) $ 4 (1) The balances as of December 31, 2018 and March 31, 2019 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, 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 Derivatives $ 289 $ (56 ) $ 233 $ (90 ) (2) $ 0 $ 0 $ 143 As of March 31, 2019 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 $ 400 $ (39 ) $ 361 $ (85 ) (2) $ 0 $ 0 $ 276 (2) The balances as of December 31, 2018 and March 31, 2019 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have entered into operating and finance lease agreements primarily for data centers, land and offices throughout the world with lease periods expiring between 2019 and 2063 . We determine if an arrangement is a lease at inception. Operating lease assets and liabilities are included on our Consolidated Balance Sheet beginning January 1, 2019. The current portion of our operating lease liabilities is included in accrued expenses and other current liabilities and the long term portion is included in operating lease liabilities. Finance lease assets are included in property and equipment, net. Finance lease liabilities are included in accrued expenses and other current liabilities or long-term debt. Operating lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in most of our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Operating lease assets also include any prepaid lease payments and lease incentives. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the base, non-cancelable, lease term when determining the lease assets and liabilities. Operating lease expense is recognized on a straight-line basis over the lease term. Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We combine fixed payments for non-lease components with our lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities. These amounts include payments affected by the Consumer Price Index, payments contingent on wind or solar production for power purchase arrangements, and payments for maintenance and utilities. Components of operating lease expense were as follows (in millions, unaudited): Three Months Ended March 31, 2019 Operating lease cost $ 398 Variable lease cost 128 Total operating lease cost $ 526 Supplemental cash flow information related to operating leases was as follows (in millions, unaudited): Three Months Ended March 31, 2019 Cash payments for operating leases $ 374 New operating lease assets obtained in exchange for operating lease liabilities $ 1,131 As of March 31, 2019 , our operating leases had a weighted average remaining lease term of 10 years and a weighted average discount rate of 2.9% . Future lease payments under operating leases as of March 31, 2019 were as follows (in millions, unaudited): Operating Leases Remainder of 2019 $ 1,071 2020 1,535 2021 1,437 2022 1,228 2023 1,070 Thereafter 4,990 Total future lease payments 11,331 Less imputed interest (1,983 ) Total lease liability balance $ 9,348 As of March 31, 2019 , we have entered into leases, primarily for data centers, land and offices, that have not yet commenced with future lease payments of $4.4 billion that are not reflected in the table above. These leases will commence between 2019 and 2022 with non-cancelable lease terms of 1 to 20 |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities (VIEs) | 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 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, 2018 and March 31, 2019 , assets that can only be used to settle obligations of these VIEs were $2.4 billion and the liabilities for which creditors only have recourse to the VIEs were $909 million and $786 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. In September 2014, AbbVie Inc. (AbbVie) and Calico entered into 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. In the second quarter of 2018, AbbVie and Calico amended the collaboration agreement resulting in an increase in total commitments. As of March 31, 2019 , AbbVie has contributed $750 million to fund the collaboration pursuant to the agreement and is committed to an additional $500 million which will be paid by the fourth quarter of 2019. As of March 31, 2019 , Calico has contributed $500 million and has committed up to an additional $750 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 for projects covered under this agreement 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. As of March 31, 2019 , we have contributed $480 million to Calico in exchange for Calico convertible preferred units and are committed to fund up to an additional $750 million on an as-needed basis and subject to certain conditions. 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 December 2018, Verily received $900 million in cash from a $1.0 billion investment round. The remaining $100 million was received in the first quarter of 2019. As of March 31, 2019 , Verily has received an aggregate amount of $1.8 billion from sales of equity securities to external investors. These transactions were accounted for as equity transactions and no gain or loss was recognized. 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 $705 million and $665 million as of December 31, 2018 and March 31, 2019 , 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, 2018 and March 31, 2019 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 and March 31, 2019 . 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) 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 (50 ) (48 ) Subtotal (1) 3,950 3,952 Finance lease obligation 62 114 Total long-term debt $ 4,012 $ 4,066 (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 $3.9 billion and $4.0 billion as of December 31, 2018 and March 31, 2019 , respectively. The fair value was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy. Credit Facility As of March 31, 2019 , we have $4.0 billion of revolving credit facilities which expire in July 2023. The interest rate for the credit facilities is determined based on a formula using certain market rates. No amounts were outstanding under the credit facilities as of December 31, 2018 and March 31, 2019 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2019 | |
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 $ 30,179 $ 30,824 Information technology assets 30,119 31,551 Construction in progress 16,838 17,203 Leasehold improvements 5,310 5,604 Furniture and fixtures 61 76 Property and equipment, gross 82,507 85,258 Less: accumulated depreciation (22,788 ) (24,730 ) Property and equipment, net $ 59,719 $ 60,528 As of December 31, 2018 and March 31, 2019 , information technology assets under finance lease with a cost basis of $648 million and $835 million , respectively, were included in property and equipment. 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 fines (1) $ 7,754 $ 9,388 Accrued customer liabilities 1,810 1,808 Other accrued expenses and current liabilities 7,394 8,186 Accrued expenses and other current liabilities $ 16,958 $ 19,382 (1) Includes the effects of foreign exchange and interest. See Note 10 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, 2017 $ (1,103 ) $ 233 $ (122 ) $ (992 ) Cumulative effect of accounting change 0 (98 ) 0 (98 ) Other comprehensive income (loss) before reclassifications 657 (208 ) (255 ) 194 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 (169 ) (68 ) 420 Balance as of March 31, 2018 $ (446 ) $ (34 ) $ (190 ) $ (670 ) 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, 2018 $ (1,884 ) $ (688 ) $ 266 $ (2,306 ) Cumulative effect of accounting change 0 0 (30 ) (30 ) Other comprehensive income (loss) before reclassifications (36 ) 719 0 683 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (30 ) (30 ) Amounts reclassified from AOCI 0 7 (104 ) (97 ) Other comprehensive income (loss) (36 ) 726 (134 ) 556 Balance as of March 31, 2019 $ (1,920 ) $ 38 $ 102 $ (1,780 ) The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income Three Months Ended March 31, AOCI Components Location 2018 2019 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (39 ) $ (2 ) Benefit (provision) for income taxes 0 (5 ) Net of tax (39 ) (7 ) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue (247 ) 128 Interest rate contracts Other income (expense), net 1 1 Benefit (provision) for income taxes 52 (25 ) Net of tax (194 ) 104 Total amount reclassified, net of tax $ (233 ) $ 97 Other Income (Expense), Net The components of other income (expense), net, were as follows (in millions, unaudited): Three Months Ended March 31, 2018 2019 Interest income $ 399 $ 522 Interest expense (1) (30 ) (35 ) Foreign currency exchange gain (loss), net (24 ) 74 Gain (loss) on debt securities, net (39 ) (2 ) Gain on equity securities, net 3,031 1,083 Performance fees (2) (632 ) (117 ) Loss and impairment from equity method investments, net (7 ) (40 ) Other 212 53 Other income (expense), net $ 2,910 $ 1,538 (1) Interest expense is net of interest capitalized of $16 million and $31 million for the three months ended March 31, 2018 and 2019 , respectively. (2) Performance fees were reclassified for the prior period from general and administrative expenses to other income (expense), net to conform with current period presentation. For further information on the reclassification and performance fees, see Notes 1 and 13 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the three months ended March 31, 2019 , we completed various acquisitions and purchases of intangible assets for total consideration of approximately $79 million . In aggregate, $39 million was attributed to intangible assets, $41 million was attributed to goodwill, and $1 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 $15 million . Pro forma results of operations for these acquisitions 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, 2019 , patents and developed technology have a weighted-average useful life of 3.7 years and trade names and other have a weighted-average useful life of 3.0 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 were as follows (in millions, unaudited): Google Other Bets Total Consolidated Balance as of December 31, 2018 $ 17,521 $ 367 $ 17,888 Acquisitions 41 0 41 Foreign currency translation and other adjustments 14 0 14 Balance as of March 31, 2019 $ 17,576 $ 367 $ 17,943 Other Intangible Assets Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 5,125 $ 3,394 $ 1,731 Customer relationships 349 308 41 Trade names and other 703 255 448 Total $ 6,177 $ 3,957 $ 2,220 As of March 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (unaudited) Patents and developed technology $ 5,093 $ 3,491 $ 1,602 Customer relationships 92 65 27 Trade names and other 703 269 434 Total $ 5,888 $ 3,825 $ 2,063 Amortization expense relating to purchased intangible assets was $195 million and $197 million for the three months ended March 31, 2018 and 2019 , respectively. As of March 31, 2019 , 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 2019 $ 520 2020 590 2021 538 2022 204 2023 7 Thereafter 204 Total $ 2,063 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters Antitrust Investigations On November 30, 2010, the EC's Directorate General for Competition opened an investigation into various antitrust-related complaints against us. 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 €2.4 billion ( $2.7 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 $2.7 billion for the fine in the second quarter of 2017. While under appeal, 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. We responded to the SO and the EC's informational requests. On July 18, 2018, the EC announced its decision that certain provisions in Google’s Android-related distribution agreements infringed European competition law. The EC decision imposed a €4.3 billion ( $5.1 billion as of June 30, 2018) fine and directed the termination of the conduct at issue. On October 9, 2018, we appealed the EC decision. On October 29, 2018, we implemented changes to certain of our Android distribution practices. We recognized a charge of $5.1 billion for the fine in the second quarter of 2018. While under appeal, 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 July 14, 2016, the EC issued an SO regarding the syndication of AdSense for Search (AFS). We responded to the SO and to the EC's informational requests. On March 20, 2019, the EC announced its decision that certain contractual provisions in agreements that Google had with AFS partners infringed European competition law. The EC decision imposed a fine of €1.5 billion ( $1.7 billion as of March 20, 2019) and directed actions related to AFS agreements, which we implemented prior to the decision. We plan to appeal the EC's decision. We recognized a charge of $1.7 billion for the fine in the first quarter of 2019. The fine is included in accrued expenses and other current liabilities on our Consolidated Balance Sheet. 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 , 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. The fine was accrued for in 2018. Patent and Intellectual Property Claims We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe 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. On May 29, 2018, we filed a petition for an en banc rehearing at the Federal Circuit, and on August 28, 2018, the Federal Circuit denied the petition. On January 24, 2019, we filed a petition to the Supreme Court of the United States to review this case. On April 29, 2019, the Supreme Court requested the views of the Solicitor General regarding our petition. 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, intellectual property, privacy, tax and related compliance, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil or criminal penalties, or other adverse consequences. Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. We record a liability when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. We expense legal fees in the period in which they are incurred. Non-Income Taxes |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchases In January 2018, the board of directors of Alphabet authorized the company to repurchase up to $8.6 billion of its Class C capital stock, which was completed during the three months ended March 31, 2019. In January 2019, the board of directors of Alphabet authorized the company to repurchase up to an additional $12.5 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, 2019 , we repurchased and subsequently retired 2.7 million shares of Alphabet Class C capital stock for an aggregate amount of $3.0 billion |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 2019 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 4,039 $ 635 $ 4,727 $ 2,865 $ 446 $ 3,346 Denominator Number of shares used in per share computation 298,449 46,956 349,347 299,042 46,582 349,245 Basic net income per share $ 13.53 $ 13.53 $ 13.53 $ 9.58 $ 9.58 $ 9.58 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 4,039 $ 635 $ 4,727 $ 2,865 $ 446 $ 3,346 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 635 0 0 446 0 0 Reallocation of undistributed earnings (57 ) (9 ) 57 (23 ) (4 ) 23 Allocation of undistributed earnings $ 4,617 $ 626 $ 4,784 $ 3,288 $ 442 $ 3,369 Denominator Number of shares used in basic computation 298,449 46,956 349,347 299,042 46,582 349,245 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 46,956 0 0 46,582 0 0 Restricted stock units and other contingently issuable shares 898 0 9,484 510 0 5,500 Number of shares used in per share computation 346,303 46,956 358,831 346,134 46,582 354,745 Diluted net income per share $ 13.33 $ 13.33 $ 13.33 $ 9.50 $ 9.50 $ 9.50 |
Compensation Plans
Compensation Plans | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Compensation Plans | Compensation Plans Stock-Based Compensation For the three months ended March 31, 2018 and 2019 , total stock-based compensation (SBC) expense was $2.5 billion and $2.9 billion , respectively, including amounts associated with awards we expect to settle in Alphabet stock of $2.5 billion and $2.8 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, 2019 (unaudited): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2018 18,467,678 $ 936.96 Granted 10,078,174 $ 1,053.10 Vested (2,830,657 ) $ 872.80 Forfeited/canceled (474,577 ) $ 968.80 Unvested as of March 31, 2019 25,240,618 $ 989.93 As of March 31, 2019 , there was $23.6 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 realized investment returns. We recognize compensation expense based on the estimated payouts, which may result in expense recognized before investment returns are realized. For the three months ended March 31, 2018 and 2019 , performance fees of $632 million and $117 million , respectively, primarily related to gains on equity securities (for further information on gains on equity securities, see Note 3) were accrued and recorded as a component of other income (expense), net. Performance fees for prior periods have been reclassified from general and administrative expenses to other income (expense), net to conform with current period presentation. For further information see Note 1 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the three months ended March 31, 2018 and 2019 was 10.8% and 18.3% , respectively. The increase is primarily due to a release of our deferred tax asset valuation allowance related to the gains on equity securities in the three months ended March 31, 2018 and the non-deductible EC fine in the three months ended March 31, 2019 . Our effective tax rate for the three months ended March 31, 2019 was lower than the U.S. federal statutory rate, primarily due to foreign earnings taxed at lower rates and partially offset by the impact from the EC fine that is not tax deductible. Our effective tax rate for the three months ended March 31, 2018 was lower than the U.S. federal statutory rate, primarily due to foreign earnings taxed at lower rates and the effects from a release of our deferred tax asset valuation allowance related to the gains on equity securities. 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 $4.8 billion as of December 31, 2018 and March 31, 2019 , respectively. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $2.9 billion and $3.0 billion as of December 31, 2018 and March 31, 2019 , respectively. For information regarding non-income taxes, see Note 10 |
Information about Segments and
Information about Segments and Geographic Areas | 3 Months Ended |
Mar. 31, 2019 | |
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, hardware, Google Cloud, Google Maps, Google Play, Search, and YouTube. Our technical infrastructure is 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 Access, Calico, CapitalG, GV, Verily, Waymo, and X, among others. 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. Information about segments during the periods presented were as follows (in millions, unaudited): Three Months Ended March 31, 2018 2019 Revenues: Google $ 30,996 $ 36,169 Other Bets 150 170 Total revenues $ 31,146 $ 36,339 Three Months Ended March 31, 2018 2019 Operating income (loss): Google $ 8,368 $ 9,325 Other Bets (571 ) (868 ) Reconciling items (1) (164 ) (1,849 ) Total income from operations $ 7,633 $ 6,608 (1) Reconciling items are primarily comprised of the EC fine for the three months ended March 31, 2019 as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments for all periods presented. Performance fees previously included in reconciling items were reclassified for the prior period from general and administrative expenses to other income (expense), net to conform with current period presentation. For further information on the reclassification, see Note 1 . Three Months Ended March 31, 2018 2019 Capital expenditures: Google $ 7,669 $ 4,534 Other Bets 55 59 Reconciling items (2) (425 ) 45 Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 7,299 $ 4,638 (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, 2018 2019 Stock-based compensation: Google $ 2,304 $ 2,612 Other Bets 112 123 Reconciling items (3) 41 34 Total stock-based compensation (4) $ 2,457 $ 2,769 Depreciation, amortization, and impairment: Google $ 1,901 $ 2,529 Other Bets 85 84 Total depreciation, amortization, and impairment $ 1,986 $ 2,613 (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 $ 74,882 $ 81,160 International 22,234 25,982 Total long-lived assets $ 97,116 $ 107,142 For revenues by geography, see Note 2 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
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. |
Basis of Consolidation | Basis of ConsolidationThe consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the variable interest and voting models. Noncontrolling interests are not presented separately as the amounts are not material. All intercompany balances and transactions have been eliminated. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The Consolidated Balance Sheet as of March 31, 2019 , the Consolidated Statements of Income for the three months ended March 31, 2018 and 2019 , the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2018 and 2019 , the Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2018 and 2019 and the Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and 2019 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, 2019 , our results of operations for the three months ended March 31, 2018 and 2019 , and our cash flows for the three months ended March 31, 2018 and 2019 . The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 . 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, 2018 , as amended, filed with the SEC. |
Use of Estimates | Use of EstimatesPreparation 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 bad debt allowance, 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (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 model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. We will adopt ASU 2016-13 effective January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings. We are currently evaluating new credit loss models and updating our processes and controls in preparation for the adoption of ASU 2016-13. The effect on our consolidated financial statements will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. Recently adopted accounting pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease requirements in Accounting Standards Codification 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. We adopted Topic 842 effective January 1, 2019. The most significant effects of Topic 842 were the recognition of $8.0 billion of operating lease assets and $8.4 billion of operating lease liabilities and the de-recognition of $1.5 billion of build-to-suit assets and liabilities. We applied Topic 842 to all leases as of January 1, 2019 with comparative periods continuing to be reported under Topic 840. In the adoption of Topic 842, we carried forward the assessment from Topic 840 of whether our contracts contain or are leases, the classification of our leases, and remaining lease terms. Our accounting for finance leases remains substantially unchanged. The standard does not have a significant effect on our consolidated results of operations or cash flows. See Note 4 for further details. |
Prior Period Reclassifications | Prior Period ReclassificationsCertain amounts in prior periods have been reclassified to conform with current period presentation. Performance fees have been reclassified for all periods from general and administrative expenses to other income (expense), net to align with the presentation of the investment gains and losses on which the performance fees are based. See Note 13 for further details. |
Revenue Recognition | Deferred Revenues |
Fair Value of Financial Instruments | Debt SecuritiesWe 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. Equity Investments The following discusses our marketable equity securities, non-marketable equity securities, gains and losses on marketable and non-marketable equity securities, as well as our equity securities accounted for under the equity method. Marketable equity securities |
Segment Reporting | 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. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [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, 2018 2019 Google properties $ 21,998 $ 25,682 Google Network Members' properties 4,644 5,038 Google advertising revenues 26,642 30,720 Google other revenues 4,354 5,449 Other Bets revenues 150 170 Total revenues (1) $ 31,146 $ 36,339 (1) Revenues include hedging gains (losses) of $(239) million and $137 million for the three months ended March 31, 2018 and 2019 |
Revenue by geographic location | The following table presents our revenues disaggregated by geography, based on the addresses of our customers (in millions, unaudited): Three Months Ended March 31, 2018 2019 United States $ 14,144 45 % $ 16,532 45 % EMEA (1) 10,474 34 11,791 33 APAC (1) 4,804 15 6,112 17 Other Americas (1) 1,724 6 1,904 5 Total revenues (2) $ 31,146 100 % $ 36,339 100 % (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, 2018 and 2019 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale debt securities | The following tables summarize our debt securities by significant investment categories as of December 31, 2018 and March 31, 2019 (in millions): As of December 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Level 2: Time deposits (1) $ 2,202 $ 0 $ 0 $ 2,202 $ 2,202 $ 0 Government bonds 53,634 71 (414 ) 53,291 3,717 49,574 Corporate debt securities 25,383 15 (316 ) 25,082 44 25,038 Mortgage-backed and asset-backed securities 16,918 11 (324 ) 16,605 0 16,605 Total $ 98,137 $ 97 $ (1,054 ) $ 97,180 $ 5,963 $ 91,217 As of March 31, 2019 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable (unaudited) Level 2: Time deposits (1) $ 2,612 $ 0 $ 0 $ 2,612 $ 2,598 $ 14 Government bonds 54,291 195 (206 ) 54,280 4,114 50,166 Corporate debt securities 25,482 128 (109 ) 25,501 8 25,493 Mortgage-backed and asset-backed securities 16,465 36 (188 ) 16,313 0 16,313 Total $ 98,850 $ 359 $ (503 ) $ 98,706 $ 6,720 $ 91,986 (1) The majority of our time deposits are domestic deposits. |
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 $ 21,969 Due in 1 year through 5 years 57,477 Due in 5 years through 10 years 2,522 Due after 10 years 10,018 Total $ 91,986 |
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, 2018 and March 31, 2019 , 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, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Government bonds $ 12,019 $ (85 ) $ 23,877 $ (329 ) $ 35,896 $ (414 ) Corporate debt securities 10,171 (107 ) 11,545 (209 ) 21,716 (316 ) Mortgage-backed and asset-backed securities 5,534 (75 ) 8,519 (249 ) 14,053 (324 ) Total $ 27,724 $ (267 ) $ 43,941 $ (787 ) $ 71,665 $ (1,054 ) As of March 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized (unaudited) Government bonds $ 1,089 $ (1 ) $ 24,177 $ (205 ) $ 25,266 $ (206 ) Corporate debt securities 1,503 (5 ) 13,503 (104 ) 15,006 (109 ) Mortgage-backed and asset-backed securities 899 (2 ) 10,361 (186 ) 11,260 (188 ) Total $ 3,491 $ (8 ) $ 48,041 $ (495 ) $ 51,532 $ (503 ) |
Marketable equity securities | The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2018 and March 31, 2019 (in millions): As of December 31, 2018 Cash and Cash Equivalents Marketable Level 1: Money market funds $ 3,493 $ 0 Marketable equity securities 0 994 3,493 994 Level 2: Mutual funds 0 228 Total $ 3,493 $ 1,222 As of March 31, 2019 (unaudited) Cash and Cash Equivalents Marketable Securities Level 1: Money market funds $ 6,452 $ 0 Marketable equity securities (1) 0 2,115 6,452 2,115 Level 2: Mutual funds 0 239 Total $ 6,452 $ 2,354 (1) |
Summary of unrealized gains and losses for non-marketable equity securities | 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 (in millions, unaudited): Three Months Ended March 31, 2018 2019 Unrealized gains $ 2,511 $ 456 Unrealized losses (including impairment) (23 ) (66 ) Total unrealized gain (loss) for non-marketable equity securities $ 2,488 $ 390 The following table summarizes the total carrying value of our non-marketable equity securities held as of March 31, 2019 including cumulative unrealized gains and losses (in millions, unaudited): Initial cost basis $ 8,561 Unrealized gains 4,634 Unrealized losses (including impairment) (248 ) Total carrying value at the end of the period $ 12,947 |
Gains and losses on equity securities | Gains and losses for our marketable and non-marketable equity securities are summarized below (in millions, unaudited): Three Months Ended March 31, 2018 2019 Net gain (loss) on equity securities sold during the period $ 387 $ 42 Unrealized gain (loss) on equity securities held as of the end of the period (1) 2,644 1,041 Total gain (loss) recognized in other income (expense), net $ 3,031 $ 1,083 (1) Includes $2,488 million and $390 million related to non-marketable equity securities for the three months ended March 31, 2018 and 2019 |
Schedule of derivative instruments | The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2018 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 $ 459 $ 54 $ 513 Total $ 459 $ 54 $ 513 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 5 $ 228 $ 233 Total $ 5 $ 228 $ 233 As of March 31, 2019 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 $ 475 $ 15 $ 490 Total $ 475 $ 15 $ 490 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 13 $ 348 $ 361 Total $ 13 $ 348 $ 361 |
Schedule of gain (loss) on derivative instruments | The gains (losses) on derivatives in cash flow hedging and net investment hedging relationships recognized in other comprehensive income (OCI) are summarized below (in millions, unaudited): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Three Months Ended March 31, 2018 2019 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ (319 ) $ (6 ) Amount excluded from the assessment of effectiveness (7 ) (30 ) Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 0 64 Total $ (326 ) $ 28 The effect of derivative instruments on income is summarized below (in millions, unaudited): Gains (Losses) Recognized in Income Three Months Ended March 31, 2018 2019 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 $ 31,146 $ 2,910 $ 36,339 $ 1,538 Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ (247 ) $ 0 $ 128 $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 8 0 9 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 113 0 22 Derivatives designated as hedging instruments 0 (113 ) 0 (22 ) Amount excluded from the assessment of effectiveness 0 11 0 10 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 0 0 54 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Derivatives not designated as hedging instruments 0 (100 ) 0 (249 ) Total gains (losses) $ (239 ) $ (89 ) $ 137 $ (185 ) |
Offsetting assets | As of December 31, 2018 and March 31, 2019 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets As of December 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 Derivatives $ 569 $ (56 ) $ 513 $ (90 ) (1) $ (307 ) $ (14 ) $ 102 As of March 31, 2019 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 $ 529 $ (39 ) $ 490 $ (85 ) (1) $ (399 ) $ (2 ) $ 4 (1) The balances as of December 31, 2018 and March 31, 2019 |
Offsetting liabilities | Offsetting of Liabilities As of December 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 Derivatives $ 289 $ (56 ) $ 233 $ (90 ) (2) $ 0 $ 0 $ 143 As of March 31, 2019 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 $ 400 $ (39 ) $ 361 $ (85 ) (2) $ 0 $ 0 $ 276 (2) The balances as of December 31, 2018 and March 31, 2019 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Operating Lease Expense | Components of operating lease expense were as follows (in millions, unaudited): Three Months Ended March 31, 2019 Operating lease cost $ 398 Variable lease cost 128 Total operating lease cost $ 526 |
Supplemental Cash Flow Information | Supplemental cash flow information related to operating leases was as follows (in millions, unaudited): Three Months Ended March 31, 2019 Cash payments for operating leases $ 374 New operating lease assets obtained in exchange for operating lease liabilities $ 1,131 |
Future Minimum Operating Lease Payments | Future lease payments under operating leases as of March 31, 2019 were as follows (in millions, unaudited): Operating Leases Remainder of 2019 $ 1,071 2020 1,535 2021 1,437 2022 1,228 2023 1,070 Thereafter 4,990 Total future lease payments 11,331 Less imputed interest (1,983 ) Total lease liability balance $ 9,348 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The total outstanding long-term debt is summarized below (in millions): As of As of (unaudited) 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 (50 ) (48 ) Subtotal (1) 3,950 3,952 Finance lease obligation 62 114 Total long-term debt $ 4,012 $ 4,066 (1) |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 $ 30,179 $ 30,824 Information technology assets 30,119 31,551 Construction in progress 16,838 17,203 Leasehold improvements 5,310 5,604 Furniture and fixtures 61 76 Property and equipment, gross 82,507 85,258 Less: accumulated depreciation (22,788 ) (24,730 ) Property and equipment, net $ 59,719 $ 60,528 |
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 fines (1) $ 7,754 $ 9,388 Accrued customer liabilities 1,810 1,808 Other accrued expenses and current liabilities 7,394 8,186 Accrued expenses and other current liabilities $ 16,958 $ 19,382 (1) Includes the effects of foreign exchange and interest. See Note 10 |
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, 2017 $ (1,103 ) $ 233 $ (122 ) $ (992 ) Cumulative effect of accounting change 0 (98 ) 0 (98 ) Other comprehensive income (loss) before reclassifications 657 (208 ) (255 ) 194 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 (169 ) (68 ) 420 Balance as of March 31, 2018 $ (446 ) $ (34 ) $ (190 ) $ (670 ) 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, 2018 $ (1,884 ) $ (688 ) $ 266 $ (2,306 ) Cumulative effect of accounting change 0 0 (30 ) (30 ) Other comprehensive income (loss) before reclassifications (36 ) 719 0 683 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (30 ) (30 ) Amounts reclassified from AOCI 0 7 (104 ) (97 ) Other comprehensive income (loss) (36 ) 726 (134 ) 556 Balance as of March 31, 2019 $ (1,920 ) $ 38 $ 102 $ (1,780 ) |
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 Statements of Income Three Months Ended March 31, AOCI Components Location 2018 2019 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (39 ) $ (2 ) Benefit (provision) for income taxes 0 (5 ) Net of tax (39 ) (7 ) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue (247 ) 128 Interest rate contracts Other income (expense), net 1 1 Benefit (provision) for income taxes 52 (25 ) Net of tax (194 ) 104 Total amount reclassified, net of tax $ (233 ) $ 97 |
Schedule of other income (expense), net | The components of other income (expense), net, were as follows (in millions, unaudited): Three Months Ended March 31, 2018 2019 Interest income $ 399 $ 522 Interest expense (1) (30 ) (35 ) Foreign currency exchange gain (loss), net (24 ) 74 Gain (loss) on debt securities, net (39 ) (2 ) Gain on equity securities, net 3,031 1,083 Performance fees (2) (632 ) (117 ) Loss and impairment from equity method investments, net (7 ) (40 ) Other 212 53 Other income (expense), net $ 2,910 $ 1,538 (1) Interest expense is net of interest capitalized of $16 million and $31 million for the three months ended March 31, 2018 and 2019 , respectively. (2) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of goodwill | Changes in the carrying amount of goodwill for the three months ended March 31, 2019 were as follows (in millions, unaudited): Google Other Bets Total Consolidated Balance as of December 31, 2018 $ 17,521 $ 367 $ 17,888 Acquisitions 41 0 41 Foreign currency translation and other adjustments 14 0 14 Balance as of March 31, 2019 $ 17,576 $ 367 $ 17,943 |
Information regarding purchased intangible assets | Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 5,125 $ 3,394 $ 1,731 Customer relationships 349 308 41 Trade names and other 703 255 448 Total $ 6,177 $ 3,957 $ 2,220 As of March 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (unaudited) Patents and developed technology $ 5,093 $ 3,491 $ 1,602 Customer relationships 92 65 27 Trade names and other 703 269 434 Total $ 5,888 $ 3,825 $ 2,063 |
Expected amortization expense related to purchased intangible assets | As of March 31, 2019 , 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 2019 $ 520 2020 590 2021 538 2022 204 2023 7 Thereafter 204 Total $ 2,063 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 2019 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 4,039 $ 635 $ 4,727 $ 2,865 $ 446 $ 3,346 Denominator Number of shares used in per share computation 298,449 46,956 349,347 299,042 46,582 349,245 Basic net income per share $ 13.53 $ 13.53 $ 13.53 $ 9.58 $ 9.58 $ 9.58 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 4,039 $ 635 $ 4,727 $ 2,865 $ 446 $ 3,346 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 635 0 0 446 0 0 Reallocation of undistributed earnings (57 ) (9 ) 57 (23 ) (4 ) 23 Allocation of undistributed earnings $ 4,617 $ 626 $ 4,784 $ 3,288 $ 442 $ 3,369 Denominator Number of shares used in basic computation 298,449 46,956 349,347 299,042 46,582 349,245 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 46,956 0 0 46,582 0 0 Restricted stock units and other contingently issuable shares 898 0 9,484 510 0 5,500 Number of shares used in per share computation 346,303 46,956 358,831 346,134 46,582 354,745 Diluted net income per share $ 13.33 $ 13.33 $ 13.33 $ 9.50 $ 9.50 $ 9.50 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 (unaudited): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2018 18,467,678 $ 936.96 Granted 10,078,174 $ 1,053.10 Vested (2,830,657 ) $ 872.80 Forfeited/canceled (474,577 ) $ 968.80 Unvested as of March 31, 2019 25,240,618 $ 989.93 |
Information about Segments an_2
Information about Segments and Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 2019 Revenues: Google $ 30,996 $ 36,169 Other Bets 150 170 Total revenues $ 31,146 $ 36,339 Three Months Ended March 31, 2018 2019 Operating income (loss): Google $ 8,368 $ 9,325 Other Bets (571 ) (868 ) Reconciling items (1) (164 ) (1,849 ) Total income from operations $ 7,633 $ 6,608 (1) Reconciling items are primarily comprised of the EC fine for the three months ended March 31, 2019 as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments for all periods presented. Performance fees previously included in reconciling items were reclassified for the prior period from general and administrative expenses to other income (expense), net to conform with current period presentation. For further information on the reclassification, see Note 1 . Three Months Ended March 31, 2018 2019 Capital expenditures: Google $ 7,669 $ 4,534 Other Bets 55 59 Reconciling items (2) (425 ) 45 Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 7,299 $ 4,638 (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, 2018 2019 Stock-based compensation: Google $ 2,304 $ 2,612 Other Bets 112 123 Reconciling items (3) 41 34 Total stock-based compensation (4) $ 2,457 $ 2,769 Depreciation, amortization, and impairment: Google $ 1,901 $ 2,529 Other Bets 85 84 Total depreciation, amortization, and impairment $ 1,986 $ 2,613 (3) Reconciling items represent corporate administrative costs that are not allocated to individual segments. (4) |
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 $ 74,882 $ 81,160 International 22,234 25,982 Total long-lived assets $ 97,116 $ 107,142 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 8,837 | $ 0 | |
Total lease liability balance | 9,348 | ||
Derecognition of lease liability | (1,417) | (3,545) | |
Derecognition of build to suit asset | $ (60,528) | $ (59,719) | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 8,000 | ||
Total lease liability balance | 8,400 | ||
Construction in progress | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Derecognition of lease liability | 1,500 | ||
Derecognition of build to suit asset | $ 1,500 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue recognized during period | $ 826 |
Revenues (Revenue by Segment) (
Revenues (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 36,339 | $ 31,146 |
Revenues | ||
Segment Reporting Information [Line Items] | ||
Hedging gains (losses) included in consolidated revenue | 137 | (239) |
Segment Reporting Information [Line Items] | ||
Revenue | 5,449 | 4,354 |
Google | Google properties | ||
Segment Reporting Information [Line Items] | ||
Revenue | 25,682 | 21,998 |
Google | Google Network Members' properties | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,038 | 4,644 |
Google | Google advertising revenues | ||
Segment Reporting Information [Line Items] | ||
Revenue | 30,720 | 26,642 |
Other Bets | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 170 | $ 150 |
Revenues (Revenue by Geographic
Revenues (Revenue by Geographic Location) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 36,339 | $ 31,146 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 16,532 | 14,144 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 11,791 | 10,474 |
APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 6,112 | 4,804 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 1,904 | $ 1,724 |
Geographic Concentration Risk | Sales Revenue, Net | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 100.00% | 100.00% |
Geographic Concentration Risk | Sales Revenue, Net | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 45.00% | 45.00% |
Geographic Concentration Risk | Sales Revenue, Net | EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 33.00% | 34.00% |
Geographic Concentration Risk | Sales Revenue, Net | APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 17.00% | 15.00% |
Geographic Concentration Risk | Sales Revenue, Net | Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 5.00% | 6.00% |
Financial Instruments (Debt Sec
Financial Instruments (Debt Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31) | ||
Cash and Cash Equivalents | $ 6,452 | $ 3,493 |
Fair Value | 91,986 | |
Level 2 | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31) | ||
Adjusted Cost | 98,850 | 98,137 |
Gross Unrealized Gains | 359 | 97 |
Gross Unrealized Losses | (503) | (1,054) |
Fair Value | 98,706 | 97,180 |
Cash and Cash Equivalents | 6,720 | 5,963 |
Fair Value | 91,986 | 91,217 |
Level 2 | Time deposits | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31) | ||
Adjusted Cost | 2,612 | 2,202 |
Fair Value | 2,612 | 2,202 |
Cash and Cash Equivalents | 2,598 | 2,202 |
Fair Value | 14 | 0 |
Level 2 | Government bonds | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31) | ||
Adjusted Cost | 54,291 | 53,634 |
Gross Unrealized Gains | 195 | 71 |
Gross Unrealized Losses | (206) | (414) |
Fair Value | 54,280 | 53,291 |
Cash and Cash Equivalents | 4,114 | 3,717 |
Fair Value | 50,166 | 49,574 |
Level 2 | Corporate debt securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31) | ||
Adjusted Cost | 25,482 | 25,383 |
Gross Unrealized Gains | 128 | 15 |
Gross Unrealized Losses | (109) | (316) |
Fair Value | 25,501 | 25,082 |
Cash and Cash Equivalents | 8 | 44 |
Fair Value | 25,493 | 25,038 |
Level 2 | Mortgage-backed and asset-backed securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] (Deprecated 2018-01-31) | ||
Adjusted Cost | 16,465 | 16,918 |
Gross Unrealized Gains | 36 | 11 |
Gross Unrealized Losses | (188) | (324) |
Fair Value | 16,313 | 16,605 |
Cash and Cash Equivalents | 0 | 0 |
Fair Value | $ 16,313 | $ 16,605 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financial Instruments and Fair Value [Line Items] | |||
Gross realized gains on the sale of our marketable securities | $ 46,000,000 | $ 2,000,000 | |
Gross realized losses on the sale of our marketable securities | 48,000,000 | 41,000,000 | |
Other-than-temporary impairment losses recognized | 0 | $ 0 | |
Fair value of non-marketable equity securities | 12,947,000,000 | ||
Net unrealized gain on equity securities | 4,634,000,000 | ||
Equity securities, sales price in excess of purchase price | 118,000,000 | ||
Equity method investments | 1,300,000,000 | $ 1,300,000,000 | |
Cash collateral received from derivative financial instruments | 518,000,000 | 327,000,000 | |
Foreign currency gain (loss) to be reclassified during next 12 months | 113,000,000 | ||
Cash Flow Hedging Relationship | Foreign exchange contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Notional amount of derivative | $ 12,400,000,000 | 11,800,000,000 | |
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 | $ 2,000,000,000 | 2,000,000,000 | |
Net Investment Hedges | Foreign exchange contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Notional amount of derivative | 7,100,000,000 | 6,700,000,000 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Notional amount of derivative | 18,600,000,000 | $ 20,100,000,000 | |
Valuation, Market Approach | |||
Financial Instruments and Fair Value [Line Items] | |||
Fair value of non-marketable equity securities | 1,400,000,000 | ||
Net unrealized gain on equity securities | $ 390,000,000 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Due in 1 year | $ 21,969 |
Due in 1 year through 5 years | 57,477 |
Due in 5 years through 10 years | 2,522 |
Due after 10 years | 10,018 |
Total | $ 91,986 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 3,491 | $ 27,724 |
Less than 12 Months, Unrealized Loss | (8) | (267) |
12 Months or Greater, Fair Value | 48,041 | 43,941 |
12 Months or Greater, Unrealized Loss | (495) | (787) |
Total Fair Value | 51,532 | 71,665 |
Total Unrealized Loss | (503) | (1,054) |
Government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,089 | 12,019 |
Less than 12 Months, Unrealized Loss | (1) | (85) |
12 Months or Greater, Fair Value | 24,177 | 23,877 |
12 Months or Greater, Unrealized Loss | (205) | (329) |
Total Fair Value | 25,266 | 35,896 |
Total Unrealized Loss | (206) | (414) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,503 | 10,171 |
Less than 12 Months, Unrealized Loss | (5) | (107) |
12 Months or Greater, Fair Value | 13,503 | 11,545 |
12 Months or Greater, Unrealized Loss | (104) | (209) |
Total Fair Value | 15,006 | 21,716 |
Total Unrealized Loss | (109) | (316) |
Mortgage-backed and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 899 | 5,534 |
Less than 12 Months, Unrealized Loss | (2) | (75) |
12 Months or Greater, Fair Value | 10,361 | 8,519 |
12 Months or Greater, Unrealized Loss | (186) | (249) |
Total Fair Value | 11,260 | 14,053 |
Total Unrealized Loss | $ (188) | $ (324) |
Financial Instruments (Marketab
Financial Instruments (Marketable Equity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 6,452 | $ 3,493 |
Marketable Securities | 2,354 | 1,222 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 6,452 | 3,493 |
Marketable Securities | 2,115 | 994 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 6,720 | 5,963 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 6,452 | 3,493 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | $ 239 | $ 228 |
Financial Instruments (Measurem
Financial Instruments (Measurement Alternative Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Adjustments to Carrying Value of Non-Marketable Equity Securities | ||
Unrealized gains | $ 456 | $ 2,511 |
Unrealized losses (including impairment) | (66) | (23) |
Total unrealized gain (loss) for non-marketable equity securities | 390 | 2,488 |
Initial cost basis | 8,561 | |
Unrealized gains | 4,634 | |
Unrealized losses (including impairment) | (248) | |
Total carrying value at the end of the period | 12,947 | |
Equity Securities, FV-NI, Gain (Loss), Alternative [Abstract] | ||
Net gain (loss) on equity securities sold during the period | 42 | 387 |
Unrealized gain (loss) on equity securities held as of the end of the period(1) | 1,041 | 2,644 |
Total gain (loss) recognized in other income (expense), net | $ 1,083 | $ 3,031 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Assets: | ||
Derivative Assets | $ 529 | $ 569 |
Derivative Liabilities: | ||
Derivative Liabilities | 400 | 289 |
Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 490 | 513 |
Derivative Liabilities: | ||
Derivative Liabilities | 361 | 233 |
Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 490 | 513 |
Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 361 | 233 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 475 | 459 |
Derivative Liabilities: | ||
Derivative Liabilities | 13 | 5 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 475 | 459 |
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 | 13 | 5 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 15 | 54 |
Derivative Liabilities: | ||
Derivative Liabilities | 348 | 228 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 15 | 54 |
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 | $ 348 | $ 228 |
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, 2019 | Mar. 31, 2018 | |
Derivatives in Net Investment Hedging Relationship: | ||
Revenues | $ 36,339 | $ 31,146 |
Other income (expense), net | 1,538 | 2,910 |
Revenues | ||
Foreign exchange contracts | ||
Total gains (losses) | 137 | (239) |
Other income (expense), net | ||
Foreign exchange contracts | ||
Total gains (losses) | (185) | (89) |
Foreign exchange contracts | ||
Derivatives in Net Investment Hedging Relationship: | ||
Total | 28 | (326) |
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 | (249) | (100) |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | ||
Derivatives in Cash Flow Hedging Relationship | ||
Amount included in the assessment of effectiveness | (6) | (319) |
Amount excluded from the assessment of effectiveness | (30) | (7) |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||
Foreign exchange contracts | ||
Amount of gains (losses) reclassified from AOCI to income | 128 | (247) |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 9 | 8 |
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 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | ||
Derivatives in Net Investment Hedging Relationship: | ||
Amount included in the assessment of effectiveness | 64 | 0 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | Revenues | ||
Net Investment Hedge, Foreign Exchange Contracts [Abstract] | ||
Amount excluded from the assessment of effectiveness | 0 | 0 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | Other income (expense), net | ||
Net Investment Hedge, Foreign Exchange Contracts [Abstract] | ||
Amount excluded from the assessment of effectiveness | 54 | 0 |
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 | 22 | 113 |
Derivatives designated as hedging instruments | (22) | (113) |
Amount excluded from the assessment of effectiveness | $ 10 | $ 11 |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting of Assets | ||
Gross Amounts of Recognized Assets | $ 529 | $ 569 |
Gross Amounts Offset in the Consolidated Balance Sheets | (39) | (56) |
Net Presented in the Consolidated Balance Sheets | 490 | 513 |
Financial Instruments | (85) | (90) |
Cash Collateral Received | (399) | (307) |
Non-Cash Collateral Received | (2) | (14) |
Net Assets Exposed | 4 | 102 |
Offsetting of Liabilities | ||
Gross Amounts of Recognized Liabilities | 400 | 289 |
Gross Amounts Offset in the Consolidated Balance Sheets | (39) | (56) |
Net Presented in the Consolidated Balance Sheets | 361 | 233 |
Financial Instruments | (85) | (90) |
Cash Collateral Pledged | 0 | 0 |
Non-Cash Collateral Pledged | 0 | 0 |
Net Liabilities | $ 276 | $ 143 |
Leases Components of Operating
Leases Components of Operating Lease Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 398 |
Variable lease cost | 128 |
Total operating lease cost | $ 526 |
Leases Narrative (Details)
Leases Narrative (Details) $ in Billions | Mar. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 10 years |
Weighted average discount rate | 2.90% |
Operating leases not yet commenced, future minimum lease payments | $ 4.4 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, non-cancelable lease term | 1 year |
Finance lease, non-cancelable lease term | 0 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, non-cancelable lease term | 20 years |
Finance lease, non-cancelable lease term | 0 years |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash payments for operating leases | $ 374 |
New operating lease assets obtained in exchange for operating lease liabilities | $ 1,131 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remainder of 2019 | $ 1,071 |
2020 | 1,535 |
2021 | 1,437 |
2022 | 1,228 |
2023 | 1,070 |
Thereafter | 4,990 |
Total future minimum lease payments | 11,331 |
Less imputed interest | (1,983) |
Total lease liability balance | $ 9,348 |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 27 Months Ended |
Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2019 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Assets not available for use | $ 2,400 | $ 2,400 | $ 2,400 |
Liabilities with no recourse | 909 | 786 | 786 |
Variable Interest Entity, Primary Beneficiary | Verily | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Cash received from transaction | 900 | 100 | |
Amount of investment | 1,000 | 1,800 | |
Calico | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Accumulated payments for other commitments | 480 | 480 | |
Research and development arrangement | AbbVie Inc | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Accumulated payments for other commitments | 750 | 750 | |
Research commitments | 500 | 500 | |
Research and development arrangement | Calico | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Accumulated payments for other commitments | 500 | 500 | |
Research commitments | 750 | 750 | |
Commitment to Invest | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research commitments | 750 | 750 | |
Renewable Energy Investments | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Carrying value | 705 | 665 | 665 |
Maximum exposure | $ 705 | $ 665 | $ 665 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | |||||
Apr. 30, 2016USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2016USD ($) | Feb. 28, 2014USD ($) | May 31, 2011USD ($)Tranche | |
Debt Instrument [Line Items] | ||||||
Commercial paper | $ 0 | $ 0 | ||||
Estimated fair value of long-term debt | $ 4,000,000,000 | 3,900,000,000 | ||||
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 |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Long-Term Debt | ||
Unamortized discount for the Notes above | $ (48) | $ (50) |
Subtotal | 3,952 | 3,950 |
Finance lease obligation under ASC 840 | 62 | |
Finance lease obligation | 114 | |
Total long-term debt | 4,066 | 4,012 |
3.625% Notes due on May 19, 2021 | ||
Long-Term Debt | ||
Long-term debt | $ 1,000 | 1,000 |
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 |
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 Statem_3
Supplemental Financial Statement Information (Property and Equipment) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 85,258 | $ 82,507 |
Less: accumulated depreciation | (24,730) | (22,788) |
Property and equipment, net | 60,528 | 59,719 |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 30,824 | 30,179 |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 31,551 | 30,119 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 17,203 | 16,838 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 5,604 | 5,310 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 76 | 61 |
Information Technology Assets Held Under Finance Leases | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 835 | $ 648 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Components Disclosure [Abstract] | ||
European Commission fines | $ 9,388 | $ 7,754 |
Accrued customer liabilities | 1,808 | 1,810 |
Other accrued expenses and current liabilities | 8,186 | 7,394 |
Accrued expenses and other current liabilities | $ 19,382 | $ 16,958 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
Components of AOCI, net of tax | ||||
Beginning Balance | $ 177,628 | $ 152,502 | ||
Cumulative effect of accounting change | $ (34) | $ (697) | ||
Other comprehensive income (loss) before reclassifications | 683 | 194 | ||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | (30) | (7) | ||
Amounts reclassified from AOCI | (97) | 233 | ||
Other comprehensive income (loss) | 556 | 420 | ||
Ending Balance | 183,472 | 160,825 | ||
Foreign Currency Translation Adjustments | ||||
Components of AOCI, net of tax | ||||
Beginning Balance | (1,884) | (1,103) | ||
Other comprehensive income (loss) before reclassifications | (36) | 657 | ||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Other comprehensive income (loss) | (36) | 657 | ||
Ending Balance | (1,920) | (446) | ||
Unrealized Gains (Losses) on Available-for-Sale Investments | ||||
Components of AOCI, net of tax | ||||
Beginning Balance | (688) | 233 | ||
Other comprehensive income (loss) before reclassifications | 719 | (208) | ||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 | ||
Amounts reclassified from AOCI | 7 | 39 | ||
Other comprehensive income (loss) | 726 | (169) | ||
Ending Balance | 38 | (34) | ||
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Components of AOCI, net of tax | ||||
Beginning Balance | 266 | (122) | ||
Other comprehensive income (loss) before reclassifications | 0 | (255) | ||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | (30) | (7) | ||
Amounts reclassified from AOCI | (104) | 194 | ||
Other comprehensive income (loss) | (134) | (68) | ||
Ending Balance | 102 | (190) | ||
Total | ||||
Components of AOCI, net of tax | ||||
Beginning Balance | (2,306) | (992) | ||
Cumulative effect of accounting change | (30) | (98) | ||
Ending Balance | $ (1,780) | $ (670) | ||
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustments | ||||
Components of AOCI, net of tax | ||||
Cumulative effect of accounting change | 0 | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Available-for-Sale Investments | ||||
Components of AOCI, net of tax | ||||
Cumulative effect of accounting change | (98) | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Components of AOCI, net of tax | ||||
Cumulative effect of accounting change | 0 | |||
Accounting Standards Update 2016-01 | Total | ||||
Components of AOCI, net of tax | ||||
Cumulative effect of accounting change | $ (98) | |||
Accounting Standards Update 2018-02 | Foreign Currency Translation Adjustments | ||||
Components of AOCI, net of tax | ||||
Cumulative effect of accounting change | 0 | |||
Accounting Standards Update 2018-02 | Unrealized Gains (Losses) on Available-for-Sale Investments | ||||
Components of AOCI, net of tax | ||||
Cumulative effect of accounting change | 0 | |||
Accounting Standards Update 2018-02 | Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Components of AOCI, net of tax | ||||
Cumulative effect of accounting change | (30) | |||
Accounting Standards Update 2018-02 | Total | ||||
Components of AOCI, net of tax | ||||
Cumulative effect of accounting change | $ (30) |
Supplemental Financial Statem_6
Supplemental Financial Statement Information (Effects on Net Income of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | $ 36,339 | $ 31,146 |
Other income (expense), net | 1,538 | 2,910 |
Benefit (provision) for income taxes | (1,489) | (1,142) |
Net income | 6,657 | 9,401 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 97 | (233) |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | Unrealized gains (losses) on available-for-sale investments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | (2) | (39) |
Benefit (provision) for income taxes | (5) | 0 |
Net income | (7) | (39) |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | Unrealized gains (losses) on cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 104 | (194) |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | Unrealized gains (losses) on cash flow hedges | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | 128 | (247) |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements 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 | $ (25) | $ 52 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information (Schedule of Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Balance Sheet Components Disclosure [Abstract] | ||
Interest income | $ 522 | $ 399 |
Interest expense | (35) | (30) |
Foreign currency exchange losses, net | 74 | (24) |
Gain (loss) on debt securities, net | (2) | (39) |
Gain on equity securities, net | 1,083 | 3,031 |
Performance fees | (117) | (632) |
Loss and impairment from equity method investments, net | (40) | (7) |
Other | 53 | 212 |
Other income (expense), net | 1,538 | 2,910 |
Interest costs capitalized | $ 31 | $ 16 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 17,943 | $ 17,888 |
Other acquisitions | ||
Business Acquisition [Line Items] | ||
Total consideration | 79 | |
Acquired intangible assets | 39 | |
Goodwill | 41 | |
Net liabilities assumed | 1 | |
Amount of goodwill expected to be deductible for tax purposes | $ 15 | |
Other acquisitions | Patents and developed technology | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 3 years 8 months 12 days | |
Other acquisitions | Trade names and other | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 3 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill Rolforward) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2018 | $ 17,888 |
Acquisitions | 41 |
Foreign currency translation and other adjustments | 14 |
Balance as of March 31, 2019 | 17,943 |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2018 | 17,521 |
Acquisitions | 41 |
Foreign currency translation and other adjustments | 14 |
Balance as of March 31, 2019 | 17,576 |
Other Bets | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2018 | 367 |
Acquisitions | 0 |
Foreign currency translation and other adjustments | 0 |
Balance as of March 31, 2019 | $ 367 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 5,888 | $ 6,177 | |
Accumulated Amortization | 3,825 | 3,957 | |
Net Carrying Amount | 2,063 | 2,220 | |
Patents and developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 5,093 | 5,125 | |
Accumulated Amortization | 3,491 | 3,394 | |
Net Carrying Amount | 1,602 | 1,731 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 92 | 349 | |
Accumulated Amortization | 65 | 308 | |
Net Carrying Amount | 27 | 41 | |
Trade names and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 703 | 703 | |
Accumulated Amortization | 269 | 255 | |
Net Carrying Amount | 434 | $ 448 | |
Acquisition-related intangible assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquisition-related intangible assets | $ 197 | $ 195 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2019 | $ 520 |
2020 | 590 |
2021 | 538 |
2022 | 204 |
2023 | 7 |
Thereafter | 204 |
Total | $ 2,063 |
Contingencies (Details)
Contingencies (Details) $ in Millions, € in Billions | Mar. 20, 2019USD ($) | Jun. 27, 2017USD ($) | Jun. 27, 2017EUR (€) | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) |
Loss Contingencies [Line Items] | ||||||||||
European Commission fine | $ 1,697 | $ 0 | ||||||||
European Commission Antitrust Investigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
European Commission fine | $ 1,700 | $ 2,700 | € 2.4 | $ 1,700 | € 1.5 | $ 5,100 | $ 21 | $ 2,700 | $ 5,100 | € 4.3 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 31, 2019 | Jan. 31, 2018 | |
Stockholders Equity Note [Line Items] | ||||
Repurchases of capital stock | $ 3,025,000,000 | $ 2,173,000,000 | ||
Class C Capital Stock | Share Repurchase Program | ||||
Stockholders Equity Note [Line Items] | ||||
Authorized share repurchase amount | $ 12,500,000,000 | $ 8,600,000,000 | ||
Repurchases of capital stock (in shares) | 2.7 | |||
Repurchases of capital stock | $ 3,000,000,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Denominator | ||
Basic net income per share (in dollars per share) | $ 9.58 | $ 13.53 |
Weighted-average effect of dilutive securities | ||
Diluted net income per share (in dollars per share) | $ 9.50 | $ 13.33 |
Class A Common Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 2,865 | $ 4,039 |
Denominator | ||
Number of shares used in basic computation (shares) | 299,042 | 298,449 |
Basic net income per share (in dollars per share) | $ 9.58 | $ 13.53 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 2,865 | $ 4,039 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 446 | 635 |
Reallocation of undistributed earnings | (23) | (57) |
Allocation of undistributed earnings | $ 3,288 | $ 4,617 |
Denominator | ||
Number of shares used in basic computation (shares) | 299,042 | 298,449 |
Weighted-average effect of dilutive securities | ||
Conversion of Class B to Class A common shares outstanding (shares) | 46,582 | 46,956 |
Number of shares used in per share computation (shares) | 346,134 | 346,303 |
Diluted net income per share (in dollars per share) | $ 9.50 | $ 13.33 |
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) | 510 | 898 |
Class B Common Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 446 | $ 635 |
Denominator | ||
Number of shares used in basic computation (shares) | 46,582 | 46,956 |
Basic net income per share (in dollars per share) | $ 9.58 | $ 13.53 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 446 | $ 635 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings | (4) | (9) |
Allocation of undistributed earnings | $ 442 | $ 626 |
Denominator | ||
Number of shares used in basic computation (shares) | 46,582 | 46,956 |
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) | 46,582 | 46,956 |
Diluted net income per share (in dollars per share) | $ 9.50 | $ 13.33 |
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 | $ 3,346 | $ 4,727 |
Denominator | ||
Number of shares used in basic computation (shares) | 349,245 | 349,347 |
Basic net income per share (in dollars per share) | $ 9.58 | $ 13.53 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 3,346 | $ 4,727 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings | 23 | 57 |
Allocation of undistributed earnings | $ 3,369 | $ 4,784 |
Denominator | ||
Number of shares used in basic computation (shares) | 349,245 | 349,347 |
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) | 354,745 | 358,831 |
Diluted net income per share (in dollars per share) | $ 9.50 | $ 13.33 |
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) | 5,500 | 9,484 |
Compensation Plans (Narrative)
Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stockholders Equity Note [Line Items] | ||
Stock-based compensation expense | $ 2,900 | $ 2,500 |
Awards expected to be settled with stock | 2,769 | 2,457 |
Performance fees | 117 | $ 632 |
Restricted Stock Units (RSUs) | ||
Stockholders Equity Note [Line Items] | ||
Unrecognized compensation cost | $ 23,600 | |
Weighted average recognition period for unrecognized stock-based compensation expense | 2 years 9 months 18 days |
Compensation Plans (Unvested Re
Compensation Plans (Unvested Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Unvested restricted stock units - number of shares | |
Unvested at beginning of period (in shares) | shares | 18,467,678 |
Granted (in shares) | shares | 10,078,174 |
Vested (in shares) | shares | (2,830,657) |
Forfeited/canceled (in shares) | shares | (474,577) |
Unvested at end of period (in shares) | shares | 25,240,618 |
Unvested restricted stock units - weighted-average grant-date fair value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 936.96 |
Granted (in dollars per share) | $ / shares | 1,053.10 |
Vested (in dollars per share) | $ / shares | 872.80 |
Forfeited/canceled (in dollars per share) | $ / shares | 968.80 |
Unvested at end of period (in dollars per share) | $ / shares | $ 989.93 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 18.30% | 10.80% | |
Gross unrecognized tax benefits | $ 4.8 | $ 4.7 | |
Unrecognized tax benefits that would impact effective tax rate | $ 3 | $ 2.9 |
Information about Segments an_3
Information about Segments and Geographic Areas (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 36,339 | $ 31,146 |
Segment Reporting Information [Line Items] | ||
Revenues | 36,169 | 30,996 |
Other Bets | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 170 | $ 150 |
Information about Segments an_4
Information about Segments and Geographic Areas (Operating Income (Loss) by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | $ 6,608 | $ 7,633 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 9,325 | 8,368 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | (868) | (571) |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | $ (1,849) | $ (164) |
Information about Segments an_5
Information about Segments and Geographic Areas (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 4,638 | $ 7,299 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 4,534 | 7,669 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 59 | 55 |
Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 45 | $ (425) |
Information about Segments an_6
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, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | $ 2,769 | $ 2,457 |
Depreciation, amortization and impairment | 2,613 | 1,986 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | 2,612 | 2,304 |
Depreciation, amortization and impairment | 2,529 | 1,901 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | 123 | 112 |
Depreciation, amortization and impairment | 84 | 85 |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | $ 34 | $ 41 |
Information about Segments an_7
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 107,142 | $ 97,116 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 81,160 | 74,882 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 25,982 | $ 22,234 |
Uncategorized Items - goog10-qq
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (599,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,000,000) |