Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 19, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37580 | |
Entity Registrant Name | Alphabet Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1767919 | |
Entity Address, Address Line One | 1600 Amphitheatre Parkway | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94043 | |
City Area Code | 650 | |
Local Phone Number | 253-0000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001652044 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $0.001 par value | |
Trading Symbol | GOOGL | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 300,763,622 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 44,359,838 | |
Class C Capital Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class C Capital Stock, $0.001 par value | |
Trading Symbol | GOOG | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 313,376,417 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 20,886 | $ 20,945 |
Marketable securities | 113,084 | 118,704 |
Total cash, cash equivalents, and marketable securities | 133,970 | 139,649 |
Accounts receivable, net | 34,703 | 39,304 |
Income taxes receivable, net | 919 | 966 |
Inventory | 1,369 | 1,170 |
Other current assets | 6,892 | 7,054 |
Total current assets | 177,853 | 188,143 |
Non-marketable securities | 30,544 | 29,549 |
Deferred income taxes | 1,388 | 1,284 |
Property and equipment, net | 104,218 | 97,599 |
Operating lease assets | 12,992 | 12,959 |
Intangible assets, net | 1,313 | 1,417 |
Goodwill | 23,010 | 22,956 |
Other non-current assets | 5,778 | 5,361 |
Total assets | 357,096 | 359,268 |
Current liabilities: | ||
Accounts payable | 3,436 | 6,037 |
Accrued compensation and benefits | 9,803 | 13,889 |
Accrued expenses and other current liabilities | 33,051 | 31,236 |
Accrued revenue share | 8,116 | 8,996 |
Deferred revenue | 3,198 | 3,288 |
Income taxes payable, net | 4,344 | 808 |
Total current liabilities | 61,948 | 64,254 |
Long-term debt | 14,791 | 14,817 |
Deferred revenue, non-current | 499 | 535 |
Income taxes payable, non-current | 9,406 | 9,176 |
Deferred income taxes | 2,843 | 5,257 |
Operating lease liabilities | 11,363 | 11,389 |
Other long-term liabilities | 2,242 | 2,205 |
Total liabilities | 103,092 | 107,633 |
Contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Class A, Class B, and Class C 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); 662,121 (Class A 300,737, Class B 44,665, Class C 316,719) and 658,763 (Class A 300,763, Class B 44,404, Class C 313,596) shares issued and outstanding | 62,832 | 61,774 |
Accumulated other comprehensive income (loss) | (4,049) | (1,623) |
Retained earnings | 195,221 | 191,484 |
Total stockholders’ equity | 254,004 | 251,635 |
Total liabilities and stockholders’ equity | $ 357,096 | $ 359,268 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Stockholders’ equity: | ||
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) | 658,763,000 | 662,121,000 |
Common stock and capital stock, shares outstanding (in shares) | 658,763,000 | 662,121,000 |
Class A Common Stock | ||
Stockholders’ equity: | ||
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) | 300,763,000 | 300,737,000 |
Common stock and capital stock, shares outstanding (in shares) | 300,763,000 | 300,737,000 |
Class B Common Stock | ||
Stockholders’ equity: | ||
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) | 44,404,000 | 44,665,000 |
Common stock and capital stock, shares outstanding (in shares) | 44,404,000 | 44,665,000 |
Class C Capital Stock | ||
Stockholders’ equity: | ||
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) | 313,596,000 | 316,719,000 |
Common stock and capital stock, shares outstanding (in shares) | 313,596,000 | 316,719,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 68,011 | $ 55,314 |
Costs and expenses: | ||
Cost of revenues | 29,599 | 24,103 |
Research and development | 9,119 | 7,485 |
Sales and marketing | 5,825 | 4,516 |
General and administrative | 3,374 | 2,773 |
Total costs and expenses | 47,917 | 38,877 |
Income from operations | 20,094 | 16,437 |
Other income (expense), net | (1,160) | 4,846 |
Income before income taxes | 18,934 | 21,283 |
Provision for income taxes | 2,498 | 3,353 |
Net income | $ 16,436 | $ 17,930 |
Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 24.90 | $ 26.63 |
Diluted net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 24.62 | $ 26.29 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 16,436 | $ 17,930 |
Other comprehensive loss: | ||
Change in foreign currency translation adjustment | 39 | (423) |
Available-for-sale investments: | ||
Change in net unrealized gains (losses) | (2,478) | (488) |
Less: reclassification adjustment for net (gains) losses included in net income | 148 | 11 |
Net change, net of income tax benefit (expense) of $135 and $633 | (2,330) | (477) |
Cash flow hedges: | ||
Change in net unrealized gains (losses) | 114 | 179 |
Less: reclassification adjustment for net (gains) losses included in net income | (249) | 85 |
Net change, net of income tax benefit (expense) of $(50) and $44 | (135) | 264 |
Other comprehensive loss | (2,426) | (636) |
Comprehensive income | $ 14,010 | $ 17,294 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Income tax benefit (expense) related to available-for-sale investments | $ 633 | $ 135 |
Income tax benefit (expense) related to cash flow hedges | $ 44 | $ (50) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Class A, Class B, Class C Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2020 | 675,222 | |||
Beginning Balance at Dec. 31, 2020 | $ 222,544 | $ 58,510 | $ 633 | $ 163,401 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock issued (in shares) | 1,569 | |||
Stock issued | 6 | $ 6 | ||
Stock-based compensation expense | 3,788 | 3,788 | ||
Tax withholding related to vesting of restricted stock units and other | (2,234) | $ (2,234) | ||
Repurchases of stock (in shares) | (5,697) | |||
Repurchases of stock | (11,395) | $ (644) | (10,751) | |
Sale of interest in consolidated entities | 10 | $ 10 | ||
Net income | 17,930 | 17,930 | ||
Other comprehensive income (loss) | (636) | (636) | ||
Ending Balance (in shares) at Mar. 31, 2021 | 671,094 | |||
Ending Balance at Mar. 31, 2021 | 230,013 | $ 59,436 | (3) | 170,580 |
Beginning Balance (in shares) at Dec. 31, 2021 | 662,121 | |||
Beginning Balance at Dec. 31, 2021 | 251,635 | $ 61,774 | (1,623) | 191,484 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock issued (in shares) | 1,555 | |||
Stock issued | 7 | $ 7 | ||
Stock-based compensation expense | 4,547 | 4,547 | ||
Tax withholding related to vesting of restricted stock units and other | (2,895) | $ (2,895) | ||
Repurchases of stock (in shares) | (4,913) | |||
Repurchases of stock | (13,300) | $ (601) | (12,699) | |
Net income | 16,436 | 16,436 | ||
Other comprehensive income (loss) | (2,426) | (2,426) | ||
Ending Balance (in shares) at Mar. 31, 2022 | 658,763 | |||
Ending Balance at Mar. 31, 2022 | $ 254,004 | $ 62,832 | $ (4,049) | $ 195,221 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net income | $ 16,436 | $ 17,930 |
Adjustments: | ||
Depreciation and impairment of property and equipment | 3,591 | 2,525 |
Amortization and impairment of intangible assets | 191 | 228 |
Stock-based compensation expense | 4,504 | 3,745 |
Deferred income taxes | (2,090) | 1,100 |
(Gain) loss on debt and equity securities, net | 1,437 | (4,751) |
Other | 140 | (255) |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 4,364 | 2,794 |
Income taxes, net | 3,820 | 785 |
Other assets | (776) | 7 |
Accounts payable | (2,373) | (982) |
Accrued expenses and other liabilities | (3,216) | (3,530) |
Accrued revenue share | (828) | (444) |
Deferred revenue | (94) | 137 |
Net cash provided by operating activities | 25,106 | 19,289 |
Investing activities | ||
Purchases of property and equipment | (9,786) | (5,942) |
Purchases of marketable securities | (28,462) | (36,426) |
Maturities and sales of marketable securities | 29,779 | 39,248 |
Purchases of non-marketable securities | (776) | (646) |
Maturities and sales of non-marketable securities | 12 | 19 |
Acquisitions, net of cash acquired, and purchases of intangible assets | (173) | (1,666) |
Other investing activities | 355 | 30 |
Net cash used in investing activities | (9,051) | (5,383) |
Financing activities | ||
Net payments related to stock-based award activities | (2,916) | (2,184) |
Repurchases of stock | (13,300) | (11,395) |
Proceeds from issuance of debt, net of costs | 16,422 | 900 |
Repayments of debt | (16,420) | (937) |
Proceeds from sale of interest in consolidated entities, net | 0 | 10 |
Net cash used in financing activities | (16,214) | (13,606) |
Effect of exchange rate changes on cash and cash equivalents | 100 | (143) |
Net increase (decrease) in cash and cash equivalents | (59) | 157 |
Cash and cash equivalents at beginning of period | 20,945 | 26,465 |
Cash and cash equivalents at end of period | $ 20,886 | $ 26,622 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations Google was incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. In 2015, we implemented a holding company reorganization, and as a result, Alphabet Inc. ("Alphabet") became the successor issuer to Google. We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide customers with infrastructure and platform services and collaboration tools; sales of other products and services, such as apps and in-app purchases, digital content products, and hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV. Basis of Consolidation The consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the variable interest and voting models. All intercompany balances and transactions have been eliminated. Unaudited Interim Financial Information These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP), and in our opinion, include all adjustments of a normal recurring nature necessary for fair financial statement presentation. Interim results are not necessarily indicative of the results to be expected for the full year ending December 31, 2022. We have made 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. These consolidated financial statements and other information presented in this Form 10-Q 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, 2021 filed with the SEC. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition The following table presents revenues disaggregated by type (in millions). Three Months Ended March 31, 2021 2022 Google Search & other $ 31,879 $ 39,618 YouTube ads 6,005 6,869 Google Network 6,800 8,174 Google advertising 44,684 54,661 Google other 6,494 6,811 Google Services total 51,178 61,472 Google Cloud 4,047 5,821 Other Bets 198 440 Hedging gains (losses) (109) 278 Total revenues $ 55,314 $ 68,011 The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions): Three Months Ended March 31, 2021 2022 United States $ 25,032 45 % $ 31,733 47 % EMEA (1) 17,031 31 20,317 30 APAC (1) 10,455 19 11,841 17 Other Americas (1) 2,905 5 3,842 6 Hedging gains (losses) (109) 0 278 0 Total revenues $ 55,314 100 % $ 68,011 100 % (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America ("Other Americas"). Revenue Backlog and Deferred Revenues As of March 31, 2022, we had $50.5 billion of remaining performance obligations (“revenue backlog”), primarily related to Google Cloud, and expect to recogniz e approximately half of this amount as revenues over the next 24 months with the remaining to be recognized thereafter. Our revenue backlog represents commitments in customer contracts for future services that have not yet been recognized as revenues. The amount and timing of revenue recognition for these commitments is largely driven by when our customers utilize services and our ability to deliver in accordance with relevant contract terms, which could affect our estimate of revenue backlog and when we expect to recognize such as revenues. Revenue backlog includes related deferred revenue currently recorded as well as amounts that will be invoiced in future periods and excludes contracts with an original expected term of one year or less and cancellable contracts. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. Deferred revenues primarily relate to Google Cloud and Google other. Total deferred revenue as of December 31, 2021 was $3.8 billion, of which $1.4 billion was recognized as revenues during the three months ended March 31, 2022. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Debt Securities We classify our marketable debt securities, which are accounted for as available-for-sale, within Level 2 in the fair value hierarchy because we use quoted market prices to the extent available or alternative pricing sources and models utilizing market observable inputs to determine fair value. For certain marketable debt securities, we have elected the fair value option for which changes in fair value are recorded in other income (expense), net. The fair value option was elected for these securities to align with the unrealized gains and losses from related derivative contracts. Unrealized net losses related to debt securities still held where we have elected the fair value option were $35 million and $236 million as of December 31, 2021 and March 31, 2022, respectively. As of December 31, 2021 and March 31, 2022, the fair value of these debt securities was $4.7 billion and $5.6 billion , respectively. The following tables summarize debt securities, for which we did not elect the fair value option, by significant investment categories (in millions): As of December 31, 2021 Adjusted Gross Gross Fair Cash and Cash Marketable Level 2: Time deposits (1) $ 5,133 $ 0 $ 0 $ 5,133 $ 5,133 $ 0 Government bonds 53,288 258 (238) 53,308 5 53,303 Corporate debt securities 35,605 194 (223) 35,576 12 35,564 Mortgage-backed and asset-backed securities 18,829 96 (112) 18,813 0 18,813 Total $ 112,855 $ 548 $ (573) $ 112,830 $ 5,150 $ 107,680 As of March 31, 2022 Adjusted Gross Gross Fair Cash and Cash Marketable Level 2: Time deposits (1) $ 4,690 $ 0 $ 0 $ 4,690 $ 4,690 $ 0 Government bonds 50,485 58 (1,365) 49,178 0 49,178 Corporate debt securities 36,621 30 (1,043) 35,608 10 35,598 Mortgage-backed and asset-backed securities 18,852 6 (594) 18,264 0 18,264 Total $ 110,648 $ 94 $ (3,002) $ 107,740 $ 4,700 $ 103,040 (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 $135 million and $40 million for the three months ended March 31, 2021 and 2022, respectively. We recognized gross realized losses of $136 million and $271 million for the three months ended March 31, 2021 and 2022, respectively. We reflect these gains and losses as a component of other income (expense), net. The following table summarizes the estimated fair value of investments in marketable debt securities by stated contractual maturity dates (in millions): As of Due in 1 year or less $ 15,516 Due in 1 year through 5 years 75,938 Due in 5 years through 10 years 4,755 Due after 10 years 12,245 Total $ 108,454 The following tables present fair values and gross unrealized losses recorded to AOCI, 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, 2021 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 32,843 $ (236) $ 71 $ (2) $ 32,914 $ (238) Corporate debt securities 22,737 (152) 303 (5) 23,040 (157) Mortgage-backed and asset-backed securities 11,502 (106) 248 (6) 11,750 (112) Total $ 67,082 $ (494) $ 622 $ (13) $ 67,704 $ (507) As of March 31, 2022 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 37,948 $ (1,203) $ 3,909 $ (162) $ 41,857 $ (1,365) Corporate debt securities 27,403 (879) 2,572 (164) 29,975 (1,043) Mortgage-backed and asset-backed securities 15,415 (532) 1,101 (62) 16,516 (594) Total $ 80,766 $ (2,614) $ 7,582 $ (388) $ 88,348 $ (3,002) During the three months ended March 31, 2021 and 2022, we did not recognize significant credit losses and the ending allowance balances for credit losses were immaterial as of December 31, 2021 and March 31, 2022. See Note 6 for further details on other income (expense), net. 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. 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. Our non-marketable equity securities are investments in privately held companies without readily determinable market values. The carrying value of our non-marketable equity securities is adjusted to fair value upon observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). Non-marketable equity securities that have been remeasured during the period based on observable transactions are classified within Level 2 or Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3. Gains and losses on marketable and non-marketable equity securities Gains and losses reflected in other income (expense), net, for marketable and non-marketable equity securities are summarized below (in millions): Three Months Ended March 31, 2021 2022 Net gain (loss) on equity securities sold during the period $ 201 $ (74) Net unrealized gain (loss) on equity securities held as of the end of the period 4,636 (996) Total gain (loss) recognized in other income (expense), net $ 4,837 $ (1,070) 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. Cumulative net gains (losses) on equity securities sold during the period, which is summarized in the following table (in millions), represents the total net gains (losses) recognized after the initial purchase date of the equity security. While these net gains may have been reflected in periods prior to the period of sale, we believe they are important supplemental information as they reflect the economic net gains on the securities sold during the period. Cumulative net gains are calculated as the difference between the sale price and the initial purchase price for the equity security sold during the period. Equity Securities Sold Three Months Ended March 31, 2021 2022 Total sale price $ 725 $ 364 Total initial cost 357 260 Cumulative net gains $ 368 $ 104 Carrying value of marketable and non-marketable equity securities The carrying value is measured as the total initial cost plus the cumulative net gain (loss). The carrying values for marketable and non-marketable equity securities are summarized below (in millions): As of December 31, 2021 Marketable Securities Non-Marketable Securities Total Total initial cost $ 4,211 $ 15,135 $ 19,346 Cumulative net gain (loss) (1) 3,587 12,436 16,023 Carrying value (2) $ 7,798 $ 27,571 $ 35,369 (1) Non-marketable equity securities cumulative net gain (loss) is comprised of $14.1 billion gains and $1.7 billion losses (including impairment). (2) The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.4 billion is included within other non-current assets. As of March 31, 2022 Marketable Securities Non-Marketable Securities Total Total initial cost $ 4,549 $ 15,770 $ 20,319 Cumulative net gain (loss) (1) 1,586 12,882 14,468 Carrying value (2) $ 6,135 $ 28,652 $ 34,787 (1) Non-marketable equity securities cumulative net gain (loss) is comprised of $14.9 billion gains and $2.1 billion losses (including impairment). (2) The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.5 billion is included within other non-current assets. Marketable equity securities The following table summarizes marketable equity securities measured at fair value by significant investment categories (in millions): As of December 31, 2021 As of March 31, 2022 Cash and Cash Equivalents Marketable Cash and Cash Equivalents Marketable Level 1: Money market funds $ 7,499 $ 0 $ 7,820 $ 0 Marketable equity securities (1)(2) 0 7,447 0 5,877 7,499 7,447 7,820 5,877 Level 2: Mutual funds 0 351 0 258 Total $ 7,499 $ 7,798 $ 7,820 $ 6,135 (1) The balance as of December 31, 2021 includes investments that were reclassified from non-marketable equity securities following the commencement of public market trading of the issuers or acquisition by public entities (certain investments are subject to short-term lock-up restrictions). (2) As of December 31, 2021 and March 31, 2022 the long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.4 billion and $1.5 billion , respectively, is included within other non-current assets. Non-marketable equity securities The following is a summary of unrealized gains and losses recorded in other income (expense), net, which are included as adjustments to the carrying value of non-marketable equity securities held as of the end of the period (in millions): Three Months Ended March 31, 2021 2022 Unrealized gains on non-marketable equity securities $ 4,678 $ 838 Unrealized losses on non-marketable equity securities (including impairment) (2) (378) Total unrealized gain (loss) recognized on non-marketable equity securities $ 4,676 $ 460 During the three months ended March 31, 2022, included in the $28.7 billion of non-marketable equity securities held as of the end of the period, $3.1 billion were measured at fair value resulting in a net unrealized gain of $0.5 billion. Equity securities accounted for under the Equity Method As of December 31, 2021 and March 31, 2022, equity securities accounted for under the equity method had a carrying value of approximately $ 1.5 billion and $1.4 billion , respectively. Our share of gains and losses, including impairments, are included as a component of other income (expense), net, in the Consolidated Statements of Income. See Note 6 for further details on other income (expense), net. Derivative Financial Instruments We enter into derivative instruments to manage risks relating to our ongoing business operations. The primary risk managed with derivative instruments is foreign exchange risk. We use foreign currency contracts to reduce the risk that our cash flows, earnings, and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We also enter into derivative instruments to partially offset our exposure to other risks and enhance investment returns. We recognize derivative instruments as either assets or liabilities in the Consolidated Balance Sheets at fair value and classify the derivatives primarily within Level 2 in the fair value hierarchy. We present our collar contracts (an option strategy comprised of a combination of purchased and written options) at net fair values where both the purchased and written options are with the same counterparty. For other derivative contracts, we present at gross fair values. We primarily record changes in the fair value in the Consolidated Statements of Income as either other income (expense), net, or revenues, or in the Consolidated Balance Sheets in AOCI, as discussed below. We enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. Further, we enter into collateral security arrangements that provide for collateral to be received or pledged when the net fair value of certain financial instruments fluctuates from contractually established thresholds. Cash collateral received related to derivative instruments under our collateral security arrangements are included in other current assets with a corresponding liability. Cash and non-cash collateral pledged related to derivative instruments under our collateral security arrangements are included in other current assets. Cash Flow Hedges We designate foreign currency forward and option contracts (including collars) as cash flow hedges to hedge certain f orecasted revenue transactions denominated in currencies other than the U.S. dollar. These contracts have maturities of 24 months or less. Cash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and subsequently reclassified to revenue when the hedged item is recognized in earnings. We exclude the change in 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. If the hedged transactions become probable of not occurring, the corresponding amounts in AOCI are reclassified to other income (expense), net in the period of de-designation. As of March 31, 2022, the net accumulated gain on our foreign currency cash flow hedges before tax effect was $356 million, which is expected to be reclassified from AOCI into earnings within the next 12 months. Fair Value Hedges We designate foreign currency forward contracts as fair value hedges to hedge foreign currency risks for our investments denominated in currencies other than the U.S. dollar. Fair value hedge amounts included in the assessment of hedge effectiveness are recognized in other income (expense), net, along with the offsetting gains and losses of the related hedged items. We exclude changes in forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in other income (expense), net. Net Investment Hedges We designate foreign currency forward contracts as net investment hedges to hedge the foreign currency risks related to our investment in foreign subsidiaries. Net investment hedge amounts included in the assessment of hedge effectiveness are recognized in AOCI along with the foreign currency translation adjustment. We exclude changes in forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in other income (expense), net. Other Derivatives Other derivatives not designated as hedging instruments consist primarily of foreign currency forward contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. Gains and losses on these contracts, as well as the related costs, are recognized in other income (expense), net, along with the foreign currency gains and losses on monetary assets and liabilities. We also use derivatives not designated as hedging instruments to manage risks relating to interest rates, commodity prices, credit exposures and to enhance investment returns. Additionally, from time to time, we enter into derivatives to hedge the market price risk on certain of our marketable equity securities. Gains (losses) arising from these derivatives are reflected within the "other" component of other income (expense), net and the offsetting recognized gains (losses) on the marketable equity securities are reflected within the gain (loss) on equity securities, net component of other income (expense), net. See Note 6 for further details on other income (expense), net. The gross notional amounts of outstanding derivative instruments were as follows (in millions): As of December 31, 2021 As of March 31, 2022 Derivatives Designated as Hedging Instruments: Foreign exchange contracts Cash flow hedges $ 16,362 $ 17,817 Fair value hedges $ 2,556 $ 2,438 Net investment hedges $ 10,159 $ 9,933 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts $ 41,031 $ 42,338 Other contracts $ 4,275 $ 6,052 The fair values of outstanding derivative instruments were as follows (in millions): As of December 31, 2021 Balance Sheet Location Fair Value of Fair Value of Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 867 $ 42 $ 909 Other contracts Other current and non-current assets 0 52 52 Total $ 867 $ 94 $ 961 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 8 $ 452 $ 460 Other contracts Accrued expenses and other liabilities, current and non-current 0 121 121 Total $ 8 $ 573 $ 581 As of March 31, 2022 Balance Sheet Location Fair Value of Fair Value of Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 705 $ 26 $ 731 Other contracts Other current and non-current assets 0 76 76 Total $ 705 $ 102 $ 807 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 163 $ 404 $ 567 Other contracts Accrued expenses and other liabilities, current and non-current 0 76 76 Total $ 163 $ 480 $ 643 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): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Three Months Ended March 31, 2021 2022 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ 162 $ 135 Amount excluded from the assessment of effectiveness 49 (15) Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 378 149 Total $ 589 $ 269 The effect of derivative instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income Three Months Ended March 31, 2021 2022 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 $ 55,314 $ 4,846 $ 68,011 $ (1,160) Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ (105) $ 0 $ 297 $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach (4) 0 (19) 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 0 0 13 Derivatives designated as hedging instruments 0 0 0 (12) Amount excluded from the assessment of effectiveness 0 2 0 1 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 20 0 12 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts 0 (340) 0 (247) Other Contracts 0 323 0 38 Total gains (losses) $ (109) $ 5 $ 278 $ (195) Offsetting of Derivatives The gross amounts of derivative instruments subject to master netting arrangements with various counterparties, and cash and non-cash collateral received and pledged under such agreements were as follows (in millions): Offsetting of Assets As of December 31, 2021 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 $ 999 $ (38) $ 961 $ (434) (1) $ (394) $ (12) $ 121 As of March 31, 2022 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 $ 894 $ (87) $ 807 $ (427) (1) $ (310) $ 0 $ 70 (1) The balances as of December 31, 2021 and March 31, 2022 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, 2021 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 $ 619 $ (38) $ 581 $ (434) (2) $ (4) $ (110) $ 33 As of March 31, 2022 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 $ 730 $ (87) $ 643 $ (427) (2) $ (5) $ (49) $ 162 (2) The balances as of December 31, 2021 and March 31, 2022 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Variable Interest Entities (VIE
Variable Interest Entities (VIE) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities (VIE) | Variable Interest Entities (VIE) Consolidated VIEs We consolidate VIEs in which we hold a variable interest and are the primary beneficiary. The results of operations and financial position of these VIEs are included in our consolidated financial statements. For certain consolidated VIEs, their assets are not available to us and their creditors do not have recourse to us. As of December 31, 2021 and March 31, 2022, assets that can only be used to settle obligations of these VIEs were $6.0 billion and $5.5 billion , respectively, and the liabilities for which creditors only have recourse to the VIEs were $2.5 billion and $2.4 billion, respectively . As of December 31, 2021 and March 31, 2022, total noncontrolling interests (NCI), including redeemable noncontrolling interests (RNCI), in our consolidated subsidiaries was $4.3 billion for both periods. NCI and RNCI are included within additional paid-in capital. Net loss attributable to noncontrolling intere sts was not material for an y period presented and is included within the "other" component of other income (expense), net. See Note 6 for further details on other income (expense), net. Unconsolidated VIEs We have investments in VIEs in which we are not the primary beneficiary. These VIEs include private companies that are primarily early stage companies and certain renewable energy entities in which activities involve power generation using renewable sources. We have determined that the governance structures of these entities do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of operations and financial position of these VIEs are not included in our consolidated financial statements. We account for these investments as non-marketable equity securities or equity method investments. The maximum exposure of these unconsolidated VIEs is generally based on the current carrying value of the investments and any future funding commitments. We have determined that the single source of our exposure to these VIEs is our capital investments in them. The carrying value and maximum exposure of these unconsolidated VIEs were $2.7 billion and $2.9 billion, respectively, as of December 31, 2021 and $2.8 billion and $2.9 billion, respectively, as of March 31, 2022. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt We have a debt financing program of up to $10.0 billion through the issuance of commercial paper. Net proceeds from this program are used for general corporate purposes. We had no commercial paper outstanding as of December 31, 2021 and March 31, 2022. Our short-term debt balance also includes the current portion of certain long-term debt. Long-Term Debt Total outstanding debt is summarized below (in millions, except percentages): Maturity Coupon Rate Effective Interest Rate As of December 31, 2021 As of Debt 2014-2020 Notes Issuances 2024 - 2060 0.45% - 3.38% 0.57% - 3.38% $ 13,000 $ 13,000 Future finance lease payments, net and other (1) 2,086 2,125 Total debt 15,086 15,125 Unamortized discount and debt issuance costs (156) (153) Less: Current portion future finance lease payments, net and other current debt (1)(2) (113) (181) Total long-term debt $ 14,817 $ 14,791 (1) Future finance lease payments are net of imputed interest. (2) Total current portion of long-term debt is included within other accrued expenses and current liabilities. See Note 6. The notes in the table above are fixed-rate senior unsecured obligations and generally rank equally with each other. We may redeem the notes at any time in whole or in part at specified redemption prices. The effective interest rates are based on proceeds received with interest payable semi-annually. The total estimated fair value of the outstanding notes was approximately $12.4 billion and $11.4 billion as of December 31, 2021 and March 31, 2022, 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, 2022, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2022 and $6.0 billion expiring in April 2026 . In April 2022, we entered into a new $4.0 billion credit facility expiring in April 2023 . The interest rates for all credit facilities are determined based on a formula using certain market rates, as well as our progress toward the achievement of certain sustainability goals. No amounts were outstanding under the credit facilities as of December 31, 2021 and March 31, 2022. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Components Disclosure [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Accounts Receivable The allowance for credit losses on accounts receivable was $550 million and $578 million as of December 31, 2021 and March 31, 2022, respectively. Property and Equipment, Net Property and equipment, net, consisted of the following (in millions): As of As of Land and buildings $ 58,881 $ 62,869 Information technology assets 55,606 57,628 Construction in progress 23,172 25,555 Leasehold improvements 9,146 9,912 Furniture and fixtures 208 213 Property and equipment, gross 147,013 156,177 Less: accumulated depreciation (49,414) (51,959) Property and equipment, net $ 97,599 $ 104,218 Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following (in millions): As of As of European Commission fines (1) $ 9,799 $ 9,670 Accrued customer liabilities 3,505 3,171 Accrued purchases of property and equipment 2,415 3,175 Current operating lease liabilities 2,189 2,267 Other accrued expenses and current liabilities 13,328 14,768 Accrued expenses and other current liabilities $ 31,236 $ 33,051 (1) Includes the effects of foreign exchange and interest. See Note 9 for further details. Accumulated Other Comprehensive Income (Loss) Components of AOCI, net of income tax, were as follows (in millions): 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, 2020 $ (864) $ 1,612 $ (115) $ 633 Other comprehensive income (loss) before reclassifications (423) (488) 130 (781) Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 49 49 Amounts reclassified from AOCI 0 11 85 96 Other comprehensive income (loss) (423) (477) 264 (636) Balance as of March 31, 2021 $ (1,287) $ 1,135 $ 149 $ (3) 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, 2021 $ (2,306) $ 236 $ 447 $ (1,623) Other comprehensive income (loss) before reclassifications 39 (2,478) 129 (2,310) Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (15) (15) Amounts reclassified from AOCI 0 148 (249) (101) Other comprehensive income (loss) 39 (2,330) (135) (2,426) Balance as of March 31, 2022 $ (2,267) $ (2,094) $ 312 $ (4,049) The effects on net income of amounts reclassified from AOCI were as follows (in millions): Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income Three Months Ended March 31, AOCI Components Location 2021 2022 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (14) $ (190) Benefit (provision) for income taxes 3 42 Net of income tax (11) (148) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue (105) 297 Interest rate contracts Other income (expense), net 1 2 Benefit (provision) for income taxes 19 (50) Net of income tax (85) 249 Total amount reclassified, net of income tax $ (96) $ 101 Other Income (Expense), Net Components of other income (expense), net, were as follows (in millions): Three Months Ended March 31, 2021 2022 Interest income $ 345 $ 414 Interest expense (1) (76) (83) Foreign currency exchange gain (loss), net 113 (73) Gain (loss) on debt securities, net (86) (367) Gain (loss) on equity securities, net 4,837 (1,070) Performance fees (665) 233 Income (loss) and impairment from equity method investments, net 5 (89) Other 373 (125) Other income (expense), net $ 4,846 $ (1,160) (1) Interest expense is net of interest capitalized of $47 million and $34 million for the three months ended March 31, 2021 and 2022, respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Pending Acquisition of Mandiant In March 2022, we entered into an agreement to acquire Mandiant, a leader in dynamic cyber defense and response, for $23.00 per share, in an all-cash transaction valued at approximately $5.4 billion, net of cash and debt. The acquisition of Mandiant is subject to customary closing conditions, including the receipt of regulatory and Mandiant stockholder approvals, and is expected to close later this year. Upon the close of the acquisition, Mandiant will be part of the Google Cloud segment. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 were as follows (in millions): Google Services Google Cloud Other Bets Total Balance as of December 31, 2021 $ 19,826 $ 2,337 $ 793 $ 22,956 Acquisitions 9 86 0 95 Foreign currency translation and other adjustments (36) (4) (1) (41) Balance as of March 31, 2022 $ 19,799 $ 2,419 $ 792 $ 23,010 Other Intangible Assets Information regarding purchased intangible assets was as follows (in millions): As of December 31, 2021 Gross Accumulated Net Patents and developed technology $ 4,786 $ 4,112 $ 674 Customer relationships 506 140 366 Trade names and other 534 295 239 Total definite-lived intangible assets 5,826 4,547 1,279 Indefinite-lived intangible assets 138 — 138 Total intangible assets $ 5,964 $ 4,547 $ 1,417 As of March 31, 2022 Gross Accumulated Net Patents and developed technology $ 4,613 $ 4,080 $ 533 Customer relationships 506 166 340 Trade names and other 418 109 309 Total definite-lived intangible assets 5,537 4,355 1,182 Indefinite-lived intangible assets 131 0 131 Total intangible assets $ 5,668 $ 4,355 $ 1,313 For all intangible assets acquired and purchased during the three months ended March 31, 2022, patents and developed technology have a weighted -average useful lif e of 3.7 years, and trade names and other have a weighted-average useful life of 5.6 years . Amortization expense relating to purchased intangible assets was $217 million and $191 million for the three months ended March 31, 2021 and 2022, respectively. Expected amortization expense related to purchased intangible assets held as of March 31, 2022 was as follows (in millions): Remainder of 2022 $ 363 2023 274 2024 244 2025 116 2026 71 Thereafter 114 Total $ 1,182 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Indemnifications In the normal course of business, including to facilitate transactions in our services and products and corporate activities, we indemnify certain parties, including advertisers, Google Network partners, customers of Google Cloud offerings, lessors, and service providers with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our officers and directors, and our bylaws contain similar indemnification obligations to our agents. It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows, or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of March 31, 2022, we did not have any material indemnification claims that were probable or reasonably possible. 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 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 to the General Court, and on September 27, 2017, we implemented product changes to bring shopping ads into compliance with the EC's decision. We recognized a charge of $2.7 billion for the fine in the second quarter of 2017. On November 10, 2021, the General Court rejected our appeal, and we subsequently filed an appeal with the European Court of Justice on January 20, 2022. On July 18, 2018, the EC announced its decision that certain provisions in Google’s Android-related distribution agreements 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, which remains pending. 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. On March 20, 2019, the EC announced its decision that certain contractual provisions in agreements that Google had with AdSense for Search 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 AdSense for Search partners' agreements, which we implemented prior to the decision. On June 4, 2019, we appealed the EC decision, which remains pending. We recognized a charge of $1.7 billion for the fine in the first quarter of 2019. While each EC decision is under appeal, we included the fines in accrued expenses and other current liabilities on our Consolidated Balance Sheets as we provided bank guarantees (in lieu of a cash payment) for the fines. From time to time we are subject to formal and informal inquiries and investigations on competition matters by regulatory authorities in the United States (U.S.), Europe, and other jurisdictions. In August 2019, we began receiving civil investigative demands from the U.S. Department of Justice (DOJ) requesting information and documents relating to our prior antitrust investigations and certain aspects of our business. The DOJ and a number of state Attorneys General filed a lawsuit on October 20, 2020 alleging that Google violated U.S. antitrust laws relating to Search and Search advertising. Separately, on December 16, 2020, a number of state Attorneys General filed an antitrust complaint against Google in the U.S. District Court for the Eastern District of Texas, alleging that Google violated U.S. antitrust laws as well as state deceptive trade laws relating to its advertising technology. On June 22, 2021, the EC opened a formal investigation into Google's advertising technology business practices. On July 7, 2021, a number of state Attorneys General filed an antitrust complaint against us in the U.S. District Court for the Northern District of California, alleging that Google’s operation of Android and Google Play violated U.S. antitrust laws and state antitrust and consumer protection laws. We believe these complaints are without merit and will defend ourselves vigorously. The DOJ, state Attorneys General, and EC continue their investigations into certain aspects of our business. We continue to cooperate with federal and state regulators in the U.S., the EC, and other regulators around the world. Patent and Intellectual Property Claims We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe others' intellectual property rights. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services. As a result, we may have to change our business practices and develop non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to litigate intellectual property disputes because an ultimate loss in an ITC action can result in a prohibition on importing infringing products into the U.S. Because the U.S. is an important market, a prohibition on importation could have an adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating workarounds that may limit certain features of our products. Furthermore, many of our agreements with our customers and partners require us to indemnify them against certain intellectual property infringement claims, which would increase our costs as a result of defending such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims. In addition, our customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely affect our business. Other We are also regularly subject to claims, suits, regulatory and government investigations, other proceedings, and consent decrees involving competition, intellectual property, privacy and cybersecurity, tax and related compliance, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters. For example, we currently have a number of privacy investigations and suits ongoing in multiple jurisdictions. Such claims, suits, regulatory and government investigations, other proceedings, and consent decrees could result in substantial fines and penalties, injunctive relief, ongoing auditing and monitoring obligations, changes to our products and services, alterations to our business models and operations, and collateral related civil litigation or other adverse consequences, all of which could harm our business, reputation, financial condition, and operating results. We have ongoing legal matters in Russia. We do not believe these ongoing legal matters will have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. Certain outstanding matters include speculative, substantial or indeterminate monetary amounts. We record a liability when we believe that it is probable that a loss has been incurred, and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as appropriate. Significant judgment is required to determine both the likelihood of there being and the estimated amount of a loss related to such matters. With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. We expense legal fees in the period in which they are incurred. Non-Income Taxes We are under audit by various domestic and foreign tax authorities with regards to non-income tax matters. The subject matter of non-income tax audits primarily arises from disputes on the tax treatment and tax rate applied to the sale of our products and services in these jurisdictions and the tax treatment of certain employee benefits. We accrue non-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. Due to the inherent complexity and uncertainty of these matters and judicial process in certain jurisdictions, the final outcome may be materially different from our expectations. For information regarding income tax contingencies, see Note 13. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchases In April 2021, the Board of Directors of Alphabet authorized the company to repurchase up to $50.0 billion of its Class C stock. In July 2021, the Board of Directors of Alphabet approved an amendment to the April 2021 authorization, permitting the company to repurchase both Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading prices and volumes of the Class A and Class C shares. As of March 31, 2022, $4.1 billion remains available for Class A and Class C share repurchases under the amended authorization. In accordance with the authorizations of the Board of Directors of Alphabet, during the three months ended March 31, 2022, we repurchased and subsequently retired 4.9 million aggregate shares for $13.3 billion. Of the aggregate amount repurchased and subsequently retired during the three months ended March 31, 2022, 0.2 million shares were Class A stock for $660 million and 4.7 million shares were Class C stock for $12.6 billion. In April 2022, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion of its Class A and Class C shares in a manner deemed in the best interest of the company and its stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading prices and volumes of the Class A and Class C shares. Repurchases are executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The repurchase program does not have an expiration date. Stock Split Effected in Form of Stock Dividend (“Stock Split”) On February 1, 2022, the company announced that the Board of Directors had approved and declared a 20-for-one stock split in the form of a one-time special stock dividend on each share of the company’s Class A, Class B, and Class C stock. The Stock Split is subject to stockholder approval of an amendment to the company’s Amended and Restated Certificate of Incorporation to increase the number of authorized shares of Class A, Class B, and Class C stock to accommodate the Stock Split. If approval is obtained, each of the company’s stockholders of record at the close of business on July 1, 2022 (the “Record Date”), will receive, after the close of business on July 15, 2022, a dividend of 19 additional shares of the same class of stock for every share held by such stockholder as of the Record Date. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2022 | |
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, Class B, and Class C stock (in millions, except share amounts which are reflected in thousands, and per share amounts): Three Months Ended March 31, 2021 2022 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 8,011 $ 1,221 $ 8,698 $ 7,481 $ 1,109 $ 7,846 Denominator Number of shares used in per share computation 300,800 45,840 326,580 300,478 44,535 315,158 Basic net income per share $ 26.63 $ 26.63 $ 26.63 $ 24.90 $ 24.90 $ 24.90 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 8,011 $ 1,221 $ 8,698 $ 7,481 $ 1,109 $ 7,846 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,221 0 0 1,109 0 0 Reallocation of undistributed earnings (119) (16) 119 (95) (12) 95 Allocation of undistributed earnings $ 9,113 $ 1,205 $ 8,817 $ 8,495 $ 1,097 $ 7,941 Denominator Number of shares used in basic computation 300,800 45,840 326,580 300,478 44,535 315,158 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A shares outstanding 45,840 0 0 44,535 0 0 Restricted stock units and other contingently issuable shares 18 0 8,833 5 0 7,375 Number of shares used in per share computation 346,658 45,840 335,413 345,018 44,535 322,533 Diluted net income per share $ 26.29 $ 26.29 $ 26.29 $ 24.62 $ 24.62 $ 24.62 For the periods presented above, the net income per share amounts are the same for Class A, Class B, and Class C stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Amended and Restated Certificate of Incorporation of Alphabet Inc. |
Compensation Plans
Compensation Plans | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Compensation Plans | Compensation Plans Stock-Based Compensation For the three months ended March 31, 2021 and 2022, total stock-based compensation (SBC) expense was $3.8 billion and $4.5 billion , including amou nts associated with awards we expect to settle in Alphabet stock o f $3.7 billion an d $4.4 billion , r espectively. Stock-Based Award Activities The following table summarizes the activities for unvested Alphabet restricted stock units (RSUs) for the three months ended March 31, 2022: Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2021 16,894,713 $ 1,626.13 Granted 6,698,922 $ 2,758.02 Vested (2,431,649) $ 1,691.60 Forfeited/canceled (536,815) $ 1,848.92 Unvested as of March 31, 2022 20,625,171 $ 1,980.24 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents provision for income taxes (in millions, except for effective tax rate): Three Months Ended March 31, 2021 2022 Income before provision for income taxes $ 21,283 $ 18,934 Provision for income taxes $ 3,353 $ 2,498 Effective tax rate 15.8 % 13.2 % 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. Total gross unrecognized tax benefits were $5.2 billion and $5.4 billion as of December 31, 2021 and March 31, 2022, respectively. Total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $3.7 billion and $3.9 billion as of December 31, 2021 and March 31, 2022, respectively. For information regarding non-income taxes, see Note 9. |
Information about Segments and
Information about Segments and Geographic Areas | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Information about Segments and Geographic Areas | Information about Segments and Geographic Areas We report our segment results as Google Services, Google Cloud, and Other Bets: • Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; sales of apps and in-app purchases, digital content products, and hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV. • Google Cloud includes Google’s infrastructure and platform services, collaboration tools, and other services for enterprise customers. Google Cloud generates revenues from fees received for Google Cloud Platform services, Google Workspace collaboration tools, and other enterprise services. • Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of health technology and internet services. Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering activities, and hardware, as well as certain operating expenses are directly attributable to our segments. Due to the integrated nature of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are managed centrally at a consolidated level. The associated costs, including depreciation and impairment, are allocated to operating segments as a service cost generally based on usage or headcount. Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, including certain fines and settlements, as well as costs associated with certain shared R&D activities. Additionally, hedging gains (losses) related to revenue are included in corporate costs. Our operating segments are not evaluated using asset information. The following table presents information about segments (in millions): Three Months Ended March 31, 2021 2022 Revenues: Google Services $ 51,178 $ 61,472 Google Cloud 4,047 5,821 Other Bets 198 440 Hedging gains (losses) (109) 278 Total revenues $ 55,314 $ 68,011 Three Months Ended March 31, 2021 2022 Operating income (loss): Google Services $ 19,546 $ 22,920 Google Cloud (974) (931) Other Bets (1,145) (1,155) Corporate costs, unallocated (990) (740) Total income from operations $ 16,437 $ 20,094 For revenues by geography, see Note 2. The following table presents long-lived assets by geographic area, which includes property and equipment, net and operating lease assets (in millions): As of As of Long-lived assets: United States $ 80,207 $ 85,341 International 30,351 31,869 Total long-lived assets $ 110,558 $ 117,210 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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. All intercompany balances and transactions have been eliminated. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP), and in our opinion, include all adjustments of a normal recurring nature necessary for fair financial statement presentation. Interim results are not necessarily indicative of the results to be expected for the full year ending December 31, 2022. We have made 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. These consolidated financial statements and other information presented in this Form 10-Q 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, 2021 filed with the SEC. |
Revenue Backlog and Deferred Revenues | Revenue Backlog and Deferred Revenues As of March 31, 2022, we had $50.5 billion of remaining performance obligations (“revenue backlog”), primarily related to Google Cloud, and expect to recogniz e approximately half of this amount as revenues over the next 24 months with the remaining to be recognized thereafter. Our revenue backlog represents commitments in customer contracts for future services that have not yet been recognized as revenues. The amount and timing of revenue recognition for these commitments is largely driven by when our customers utilize services and our ability to deliver in accordance with relevant contract terms, which could affect our estimate of revenue backlog and when we expect to recognize such as revenues. Revenue backlog includes related deferred revenue currently recorded as well as amounts that will be invoiced in future periods and excludes contracts with an original expected term of one year or less and cancellable contracts. We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. Deferred revenues primarily relate to Google Cloud and Google other. Total deferred revenue as of December 31, 2021 was $3.8 billion, of which $1.4 billion was recognized as revenues during the three months ended March 31, 2022. |
Fair Value of Financial Instruments | Debt Securities We classify our marketable debt securities, which are accounted for as available-for-sale, within Level 2 in the fair value hierarchy because we use quoted market prices to the extent available or alternative pricing sources and models utilizing market observable inputs to determine fair value. 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. 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. Our non-marketable equity securities are investments in privately held companies without readily determinable market values. The carrying value of our non-marketable equity securities is adjusted to fair value upon observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). Non-marketable equity securities that have been remeasured during the period based on observable transactions are classified within Level 2 or Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3. |
Consolidated VIEs | We consolidate VIEs in which we hold a variable interest and are the primary beneficiary. The results of operations and financial position of these VIEs are included in our consolidated financial statements. |
Segment Reporting | We report our segment results as Google Services, Google Cloud, and Other Bets: • Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; sales of apps and in-app purchases, digital content products, and hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV. • Google Cloud includes Google’s infrastructure and platform services, collaboration tools, and other services for enterprise customers. Google Cloud generates revenues from fees received for Google Cloud Platform services, Google Workspace collaboration tools, and other enterprise services. • Other Bets is a combination of multiple operating segments that are not individually material. Revenues from Other Bets are generated primarily from the sale of health technology and internet services. Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering activities, and hardware, as well as certain operating expenses are directly attributable to our segments. Due to the integrated nature of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are managed centrally at a consolidated level. The associated costs, including depreciation and impairment, are allocated to operating segments as a service cost generally based on usage or headcount. Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, including certain fines and settlements, as well as costs associated with certain shared R&D activities. Additionally, hedging gains (losses) related to revenue are included in corporate costs. Our operating segments are not evaluated using asset information. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by revenue source | The following table presents revenues disaggregated by type (in millions). Three Months Ended March 31, 2021 2022 Google Search & other $ 31,879 $ 39,618 YouTube ads 6,005 6,869 Google Network 6,800 8,174 Google advertising 44,684 54,661 Google other 6,494 6,811 Google Services total 51,178 61,472 Google Cloud 4,047 5,821 Other Bets 198 440 Hedging gains (losses) (109) 278 Total revenues $ 55,314 $ 68,011 |
Revenue by geographic location | The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions): Three Months Ended March 31, 2021 2022 United States $ 25,032 45 % $ 31,733 47 % EMEA (1) 17,031 31 20,317 30 APAC (1) 10,455 19 11,841 17 Other Americas (1) 2,905 5 3,842 6 Hedging gains (losses) (109) 0 278 0 Total revenues $ 55,314 100 % $ 68,011 100 % (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America ("Other Americas"). |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale debt securities | The following tables summarize debt securities, for which we did not elect the fair value option, by significant investment categories (in millions): As of December 31, 2021 Adjusted Gross Gross Fair Cash and Cash Marketable Level 2: Time deposits (1) $ 5,133 $ 0 $ 0 $ 5,133 $ 5,133 $ 0 Government bonds 53,288 258 (238) 53,308 5 53,303 Corporate debt securities 35,605 194 (223) 35,576 12 35,564 Mortgage-backed and asset-backed securities 18,829 96 (112) 18,813 0 18,813 Total $ 112,855 $ 548 $ (573) $ 112,830 $ 5,150 $ 107,680 As of March 31, 2022 Adjusted Gross Gross Fair Cash and Cash Marketable Level 2: Time deposits (1) $ 4,690 $ 0 $ 0 $ 4,690 $ 4,690 $ 0 Government bonds 50,485 58 (1,365) 49,178 0 49,178 Corporate debt securities 36,621 30 (1,043) 35,608 10 35,598 Mortgage-backed and asset-backed securities 18,852 6 (594) 18,264 0 18,264 Total $ 110,648 $ 94 $ (3,002) $ 107,740 $ 4,700 $ 103,040 (1) The majority of our time deposits are domestic deposits. |
Investments by maturity date | The following table summarizes the estimated fair value of investments in marketable debt securities by stated contractual maturity dates (in millions): As of Due in 1 year or less $ 15,516 Due in 1 year through 5 years 75,938 Due in 5 years through 10 years 4,755 Due after 10 years 12,245 Total $ 108,454 |
Schedule of unrealized loss on debt securities | The following tables present fair values and gross unrealized losses recorded to AOCI, 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, 2021 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 32,843 $ (236) $ 71 $ (2) $ 32,914 $ (238) Corporate debt securities 22,737 (152) 303 (5) 23,040 (157) Mortgage-backed and asset-backed securities 11,502 (106) 248 (6) 11,750 (112) Total $ 67,082 $ (494) $ 622 $ (13) $ 67,704 $ (507) As of March 31, 2022 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 37,948 $ (1,203) $ 3,909 $ (162) $ 41,857 $ (1,365) Corporate debt securities 27,403 (879) 2,572 (164) 29,975 (1,043) Mortgage-backed and asset-backed securities 15,415 (532) 1,101 (62) 16,516 (594) Total $ 80,766 $ (2,614) $ 7,582 $ (388) $ 88,348 $ (3,002) |
Gains and losses on equity securities | Gains and losses reflected in other income (expense), net, for marketable and non-marketable equity securities are summarized below (in millions): Three Months Ended March 31, 2021 2022 Net gain (loss) on equity securities sold during the period $ 201 $ (74) Net unrealized gain (loss) on equity securities held as of the end of the period 4,636 (996) Total gain (loss) recognized in other income (expense), net $ 4,837 $ (1,070) |
Cumulative net gains on equity securities sold | Cumulative net gains (losses) on equity securities sold during the period, which is summarized in the following table (in millions), represents the total net gains (losses) recognized after the initial purchase date of the equity security. While these net gains may have been reflected in periods prior to the period of sale, we believe they are important supplemental information as they reflect the economic net gains on the securities sold during the period. Cumulative net gains are calculated as the difference between the sale price and the initial purchase price for the equity security sold during the period. Equity Securities Sold Three Months Ended March 31, 2021 2022 Total sale price $ 725 $ 364 Total initial cost 357 260 Cumulative net gains $ 368 $ 104 |
Summary of unrealized gains and losses for marketable and non-marketable equity securities | The carrying values for marketable and non-marketable equity securities are summarized below (in millions): As of December 31, 2021 Marketable Securities Non-Marketable Securities Total Total initial cost $ 4,211 $ 15,135 $ 19,346 Cumulative net gain (loss) (1) 3,587 12,436 16,023 Carrying value (2) $ 7,798 $ 27,571 $ 35,369 (1) Non-marketable equity securities cumulative net gain (loss) is comprised of $14.1 billion gains and $1.7 billion losses (including impairment). (2) The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.4 billion is included within other non-current assets. As of March 31, 2022 Marketable Securities Non-Marketable Securities Total Total initial cost $ 4,549 $ 15,770 $ 20,319 Cumulative net gain (loss) (1) 1,586 12,882 14,468 Carrying value (2) $ 6,135 $ 28,652 $ 34,787 (1) Non-marketable equity securities cumulative net gain (loss) is comprised of $14.9 billion gains and $2.1 billion losses (including impairment). (2) The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.5 billion is included within other non-current assets. |
Marketable equity securities | The following table summarizes marketable equity securities measured at fair value by significant investment categories (in millions): As of December 31, 2021 As of March 31, 2022 Cash and Cash Equivalents Marketable Cash and Cash Equivalents Marketable Level 1: Money market funds $ 7,499 $ 0 $ 7,820 $ 0 Marketable equity securities (1)(2) 0 7,447 0 5,877 7,499 7,447 7,820 5,877 Level 2: Mutual funds 0 351 0 258 Total $ 7,499 $ 7,798 $ 7,820 $ 6,135 (1) The balance as of December 31, 2021 includes investments that were reclassified from non-marketable equity securities following the commencement of public market trading of the issuers or acquisition by public entities (certain investments are subject to short-term lock-up restrictions). (2) As of December 31, 2021 and March 31, 2022 the long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.4 billion and $1.5 billion , respectively, is included within other non-current assets. |
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, which are included as adjustments to the carrying value of non-marketable equity securities held as of the end of the period (in millions): Three Months Ended March 31, 2021 2022 Unrealized gains on non-marketable equity securities $ 4,678 $ 838 Unrealized losses on non-marketable equity securities (including impairment) (2) (378) Total unrealized gain (loss) recognized on non-marketable equity securities $ 4,676 $ 460 |
Schedule of gross notional amounts of derivative instruments | The gross notional amounts of outstanding derivative instruments were as follows (in millions): As of December 31, 2021 As of March 31, 2022 Derivatives Designated as Hedging Instruments: Foreign exchange contracts Cash flow hedges $ 16,362 $ 17,817 Fair value hedges $ 2,556 $ 2,438 Net investment hedges $ 10,159 $ 9,933 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts $ 41,031 $ 42,338 Other contracts $ 4,275 $ 6,052 |
Schedule of derivative instruments | The fair values of outstanding derivative instruments were as follows (in millions): As of December 31, 2021 Balance Sheet Location Fair Value of Fair Value of Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 867 $ 42 $ 909 Other contracts Other current and non-current assets 0 52 52 Total $ 867 $ 94 $ 961 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 8 $ 452 $ 460 Other contracts Accrued expenses and other liabilities, current and non-current 0 121 121 Total $ 8 $ 573 $ 581 As of March 31, 2022 Balance Sheet Location Fair Value of Fair Value of Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 705 $ 26 $ 731 Other contracts Other current and non-current assets 0 76 76 Total $ 705 $ 102 $ 807 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 163 $ 404 $ 567 Other contracts Accrued expenses and other liabilities, current and non-current 0 76 76 Total $ 163 $ 480 $ 643 |
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): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Three Months Ended March 31, 2021 2022 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ 162 $ 135 Amount excluded from the assessment of effectiveness 49 (15) Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 378 149 Total $ 589 $ 269 The effect of derivative instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income Three Months Ended March 31, 2021 2022 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 $ 55,314 $ 4,846 $ 68,011 $ (1,160) Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ (105) $ 0 $ 297 $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach (4) 0 (19) 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 0 0 13 Derivatives designated as hedging instruments 0 0 0 (12) Amount excluded from the assessment of effectiveness 0 2 0 1 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 20 0 12 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts 0 (340) 0 (247) Other Contracts 0 323 0 38 Total gains (losses) $ (109) $ 5 $ 278 $ (195) |
Offsetting assets | Offsetting of Assets As of December 31, 2021 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 $ 999 $ (38) $ 961 $ (434) (1) $ (394) $ (12) $ 121 As of March 31, 2022 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 $ 894 $ (87) $ 807 $ (427) (1) $ (310) $ 0 $ 70 |
Offsetting liabilities | Offsetting of Liabilities As of December 31, 2021 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 $ 619 $ (38) $ 581 $ (434) (2) $ (4) $ (110) $ 33 As of March 31, 2022 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 $ 730 $ (87) $ 643 $ (427) (2) $ (5) $ (49) $ 162 (2) The balances as of December 31, 2021 and March 31, 2022 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Total outstanding debt is summarized below (in millions, except percentages): Maturity Coupon Rate Effective Interest Rate As of December 31, 2021 As of Debt 2014-2020 Notes Issuances 2024 - 2060 0.45% - 3.38% 0.57% - 3.38% $ 13,000 $ 13,000 Future finance lease payments, net and other (1) 2,086 2,125 Total debt 15,086 15,125 Unamortized discount and debt issuance costs (156) (153) Less: Current portion future finance lease payments, net and other current debt (1)(2) (113) (181) Total long-term debt $ 14,817 $ 14,791 (1) Future finance lease payments are net of imputed interest. (2) Total current portion of long-term debt is included within other accrued expenses and current liabilities. See Note 6. |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Components Disclosure [Abstract] | |
Property and equipment, net | Property and equipment, net, consisted of the following (in millions): As of As of Land and buildings $ 58,881 $ 62,869 Information technology assets 55,606 57,628 Construction in progress 23,172 25,555 Leasehold improvements 9,146 9,912 Furniture and fixtures 208 213 Property and equipment, gross 147,013 156,177 Less: accumulated depreciation (49,414) (51,959) Property and equipment, net $ 97,599 $ 104,218 |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following (in millions): As of As of European Commission fines (1) $ 9,799 $ 9,670 Accrued customer liabilities 3,505 3,171 Accrued purchases of property and equipment 2,415 3,175 Current operating lease liabilities 2,189 2,267 Other accrued expenses and current liabilities 13,328 14,768 Accrued expenses and other current liabilities $ 31,236 $ 33,051 (1) Includes the effects of foreign exchange and interest. See Note 9 for further details. |
Components of accumulated other comprehensive income | Components of AOCI, net of income tax, were as follows (in millions): 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, 2020 $ (864) $ 1,612 $ (115) $ 633 Other comprehensive income (loss) before reclassifications (423) (488) 130 (781) Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 49 49 Amounts reclassified from AOCI 0 11 85 96 Other comprehensive income (loss) (423) (477) 264 (636) Balance as of March 31, 2021 $ (1,287) $ 1,135 $ 149 $ (3) 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, 2021 $ (2,306) $ 236 $ 447 $ (1,623) Other comprehensive income (loss) before reclassifications 39 (2,478) 129 (2,310) Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (15) (15) Amounts reclassified from AOCI 0 148 (249) (101) Other comprehensive income (loss) 39 (2,330) (135) (2,426) Balance as of March 31, 2022 $ (2,267) $ (2,094) $ 312 $ (4,049) |
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): Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income Three Months Ended March 31, AOCI Components Location 2021 2022 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (14) $ (190) Benefit (provision) for income taxes 3 42 Net of income tax (11) (148) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue (105) 297 Interest rate contracts Other income (expense), net 1 2 Benefit (provision) for income taxes 19 (50) Net of income tax (85) 249 Total amount reclassified, net of income tax $ (96) $ 101 |
Schedule of other income (expense), net | Components of other income (expense), net, were as follows (in millions): Three Months Ended March 31, 2021 2022 Interest income $ 345 $ 414 Interest expense (1) (76) (83) Foreign currency exchange gain (loss), net 113 (73) Gain (loss) on debt securities, net (86) (367) Gain (loss) on equity securities, net 4,837 (1,070) Performance fees (665) 233 Income (loss) and impairment from equity method investments, net 5 (89) Other 373 (125) Other income (expense), net $ 4,846 $ (1,160) (1) Interest expense is net of interest capitalized of $47 million and $34 million for the three months ended March 31, 2021 and 2022, respectively. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of goodwill | Changes in the carrying amount of goodwill for the three months ended March 31, 2022 were as follows (in millions): Google Services Google Cloud Other Bets Total Balance as of December 31, 2021 $ 19,826 $ 2,337 $ 793 $ 22,956 Acquisitions 9 86 0 95 Foreign currency translation and other adjustments (36) (4) (1) (41) Balance as of March 31, 2022 $ 19,799 $ 2,419 $ 792 $ 23,010 |
Information regarding purchased intangible assets | Information regarding purchased intangible assets was as follows (in millions): As of December 31, 2021 Gross Accumulated Net Patents and developed technology $ 4,786 $ 4,112 $ 674 Customer relationships 506 140 366 Trade names and other 534 295 239 Total definite-lived intangible assets 5,826 4,547 1,279 Indefinite-lived intangible assets 138 — 138 Total intangible assets $ 5,964 $ 4,547 $ 1,417 As of March 31, 2022 Gross Accumulated Net Patents and developed technology $ 4,613 $ 4,080 $ 533 Customer relationships 506 166 340 Trade names and other 418 109 309 Total definite-lived intangible assets 5,537 4,355 1,182 Indefinite-lived intangible assets 131 0 131 Total intangible assets $ 5,668 $ 4,355 $ 1,313 |
Expected amortization expense related to purchased intangible assets | Remainder of 2022 $ 363 2023 274 2024 244 2025 116 2026 71 Thereafter 114 Total $ 1,182 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, Class B, and Class C stock (in millions, except share amounts which are reflected in thousands, and per share amounts): Three Months Ended March 31, 2021 2022 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 8,011 $ 1,221 $ 8,698 $ 7,481 $ 1,109 $ 7,846 Denominator Number of shares used in per share computation 300,800 45,840 326,580 300,478 44,535 315,158 Basic net income per share $ 26.63 $ 26.63 $ 26.63 $ 24.90 $ 24.90 $ 24.90 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 8,011 $ 1,221 $ 8,698 $ 7,481 $ 1,109 $ 7,846 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,221 0 0 1,109 0 0 Reallocation of undistributed earnings (119) (16) 119 (95) (12) 95 Allocation of undistributed earnings $ 9,113 $ 1,205 $ 8,817 $ 8,495 $ 1,097 $ 7,941 Denominator Number of shares used in basic computation 300,800 45,840 326,580 300,478 44,535 315,158 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A shares outstanding 45,840 0 0 44,535 0 0 Restricted stock units and other contingently issuable shares 18 0 8,833 5 0 7,375 Number of shares used in per share computation 346,658 45,840 335,413 345,018 44,535 322,533 Diluted net income per share $ 26.29 $ 26.29 $ 26.29 $ 24.62 $ 24.62 $ 24.62 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of restricted stock activity | The following table summarizes the activities for unvested Alphabet restricted stock units (RSUs) for the three months ended March 31, 2022: Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2021 16,894,713 $ 1,626.13 Granted 6,698,922 $ 2,758.02 Vested (2,431,649) $ 1,691.60 Forfeited/canceled (536,815) $ 1,848.92 Unvested as of March 31, 2022 20,625,171 $ 1,980.24 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes and effective tax rate | The following table presents provision for income taxes (in millions, except for effective tax rate): Three Months Ended March 31, 2021 2022 Income before provision for income taxes $ 21,283 $ 18,934 Provision for income taxes $ 3,353 $ 2,498 Effective tax rate 15.8 % 13.2 % |
Information about Segments an_2
Information about Segments and Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment information by segment | The following table presents information about segments (in millions): Three Months Ended March 31, 2021 2022 Revenues: Google Services $ 51,178 $ 61,472 Google Cloud 4,047 5,821 Other Bets 198 440 Hedging gains (losses) (109) 278 Total revenues $ 55,314 $ 68,011 Three Months Ended March 31, 2021 2022 Operating income (loss): Google Services $ 19,546 $ 22,920 Google Cloud (974) (931) Other Bets (1,145) (1,155) Corporate costs, unallocated (990) (740) Total income from operations $ 16,437 $ 20,094 |
Schedule of long-lived assets by geographic area | The following table presents long-lived assets by geographic area, which includes property and equipment, net and operating lease assets (in millions): As of As of Long-lived assets: United States $ 80,207 $ 85,341 International 30,351 31,869 Total long-lived assets $ 110,558 $ 117,210 |
Revenues (Revenue by Segment) (
Revenues (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 68,011 | $ 55,314 |
Hedging gains (losses) | 278 | (109) |
Google Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 61,472 | 51,178 |
Google Services | Google Search & other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 39,618 | 31,879 |
Google Services | YouTube ads | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,869 | 6,005 |
Google Services | Google Network | ||
Segment Reporting Information [Line Items] | ||
Revenues | 8,174 | 6,800 |
Google Services | Google advertising | ||
Segment Reporting Information [Line Items] | ||
Revenues | 54,661 | 44,684 |
Google Services | Google other | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6,811 | 6,494 |
Google Cloud | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,821 | 4,047 |
Other Bets | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 440 | $ 198 |
Revenues (Revenue by Geographic
Revenues (Revenue by Geographic Location) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 68,011 | $ 55,314 |
Hedging gains (losses) | 278 | (109) |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 31,733 | 25,032 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 20,317 | 17,031 |
APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 11,841 | 10,455 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 3,842 | $ 2,905 |
Geographic Concentration Risk | Revenue Benchmark | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 100.00% | 100.00% |
Geographic Concentration Risk | Revenue Benchmark | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 47.00% | 45.00% |
Geographic Concentration Risk | Revenue Benchmark | EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 30.00% | 31.00% |
Geographic Concentration Risk | Revenue Benchmark | APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 17.00% | 19.00% |
Geographic Concentration Risk | Revenue Benchmark | Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 6.00% | 5.00% |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Total deferred revenue | $ 3.8 | |
Deferred revenue recognized during period | $ 1.4 | |
Revenue not yet recognized | $ 50.5 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of revenue recognition | 24 months | |
Expected timing of revenue recognition, percentage | 50.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of revenue recognition | ||
Expected timing of revenue recognition, percentage | 50.00% |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financial Instruments and Fair Value [Line Items] | |||
Fair value of debt securities with fair value option elected | $ 5,600,000,000 | $ 4,700,000,000 | |
Gross realized gains on the sale of our marketable securities | 40,000,000 | $ 135,000,000 | |
Gross realized losses on the sale of our marketable securities | 271,000,000 | 136,000,000 | |
Other-than-temporary impairment losses recognized | 0 | $ 0 | |
Non-marketable equity securities | 28,652,000,000 | 27,571,000,000 | |
Cumulative net gain of non-marketable securities | 14,900,000,000 | 14,100,000,000 | |
Equity method investments | 1,400,000,000 | 1,500,000,000 | |
Foreign currency gain (loss) to be reclassified during next 12 months | 356,000,000 | ||
Debt Securities | |||
Financial Instruments and Fair Value [Line Items] | |||
Net gain on debt securities with fair value option elected | $ (236,000,000) | $ (35,000,000) | |
Cash flow hedges | Foreign exchange contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Foreign exchange option contracts, maximum maturities | 24 months | ||
Valuation, Market Approach | |||
Financial Instruments and Fair Value [Line Items] | |||
Non-marketable equity securities | $ 3,100,000,000 | ||
Cumulative net gain of non-marketable securities | $ 500,000,000 |
Financial Instruments (Debt Sec
Financial Instruments (Debt Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Cash and Cash Equivalents | $ 7,820 | $ 7,499 |
Fair Value | 108,454 | |
Level 2 | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 110,648 | 112,855 |
Gross Unrealized Gains | 94 | 548 |
Gross Unrealized Losses | (3,002) | (573) |
Fair Value | 107,740 | 112,830 |
Cash and Cash Equivalents | 4,700 | 5,150 |
Fair Value | 103,040 | 107,680 |
Level 2 | Time deposits | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 4,690 | 5,133 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 4,690 | 5,133 |
Cash and Cash Equivalents | 4,690 | 5,133 |
Fair Value | 0 | 0 |
Level 2 | Government bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 50,485 | 53,288 |
Gross Unrealized Gains | 58 | 258 |
Gross Unrealized Losses | (1,365) | (238) |
Fair Value | 49,178 | 53,308 |
Cash and Cash Equivalents | 0 | 5 |
Fair Value | 49,178 | 53,303 |
Level 2 | Corporate debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 36,621 | 35,605 |
Gross Unrealized Gains | 30 | 194 |
Gross Unrealized Losses | (1,043) | (223) |
Fair Value | 35,608 | 35,576 |
Cash and Cash Equivalents | 10 | 12 |
Fair Value | 35,598 | 35,564 |
Level 2 | Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 18,852 | 18,829 |
Gross Unrealized Gains | 6 | 96 |
Gross Unrealized Losses | (594) | (112) |
Fair Value | 18,264 | 18,813 |
Cash and Cash Equivalents | 0 | 0 |
Fair Value | $ 18,264 | $ 18,813 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Fair Value Disclosures [Abstract] | |
Due in 1 year or less | $ 15,516 |
Due in 1 year through 5 years | 75,938 |
Due in 5 years through 10 years | 4,755 |
Due after 10 years | 12,245 |
Total | $ 108,454 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 80,766 | $ 67,082 |
Less than 12 Months, Unrealized Loss | (2,614) | (494) |
12 Months or Greater, Fair Value | 7,582 | 622 |
12 Months or Greater, Unrealized Loss | (388) | (13) |
Total Fair Value | 88,348 | 67,704 |
Total Unrealized Loss | (3,002) | (507) |
Government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 37,948 | 32,843 |
Less than 12 Months, Unrealized Loss | (1,203) | (236) |
12 Months or Greater, Fair Value | 3,909 | 71 |
12 Months or Greater, Unrealized Loss | (162) | (2) |
Total Fair Value | 41,857 | 32,914 |
Total Unrealized Loss | (1,365) | (238) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 27,403 | 22,737 |
Less than 12 Months, Unrealized Loss | (879) | (152) |
12 Months or Greater, Fair Value | 2,572 | 303 |
12 Months or Greater, Unrealized Loss | (164) | (5) |
Total Fair Value | 29,975 | 23,040 |
Total Unrealized Loss | (1,043) | (157) |
Mortgage-backed and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 15,415 | 11,502 |
Less than 12 Months, Unrealized Loss | (532) | (106) |
12 Months or Greater, Fair Value | 1,101 | 248 |
12 Months or Greater, Unrealized Loss | (62) | (6) |
Total Fair Value | 16,516 | 11,750 |
Total Unrealized Loss | $ (594) | $ (112) |
Financial Instruments (Measurem
Financial Instruments (Measurement Alternative Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Gains and Losses on Marketable and Non-Marketable Equity Securities | ||
Net gain (loss) on equity securities sold during the period | $ (74) | $ 201 |
Net unrealized gain (loss) on equity securities held as of the end of the period | (996) | 4,636 |
Total gain (loss) recognized in other income (expense), net | $ (1,070) | $ 4,837 |
Financial Instruments (Carrying
Financial Instruments (Carrying Amount of Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Total sale price | $ 364 | $ 725 | |
Total initial cost | 260 | 357 | |
Cumulative net gains | 104 | $ 368 | |
Marketable Securities | |||
Total initial cost | 4,549 | $ 4,211 | |
Cumulative net gain (loss) | 1,586 | 3,587 | |
Carrying value | 6,135 | 7,798 | |
Non-Marketable Securities | |||
Total initial cost | 15,770 | 15,135 | |
Cumulative net gain (loss) | 12,882 | 12,436 | |
Carrying value | 28,652 | 27,571 | |
Total | |||
Total initial cost | 20,319 | 19,346 | |
Cumulative net gain (loss) | 14,468 | 16,023 | |
Carrying value | 34,787 | 35,369 | |
Cumulative net gain of non-marketable securities | 14,900 | 14,100 | |
Unrealized loss of non-marketable securities | (2,100) | (1,700) | |
Other Noncurrent Assets | |||
Marketable Securities | |||
Carrying value | $ 1,500 | $ 1,400 |
Financial Instruments (Marketab
Financial Instruments (Marketable Equity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 7,820 | $ 7,499 |
Marketable Equity Securities | 6,135 | 7,798 |
Marketable Securities | 6,135 | 7,798 |
Other Noncurrent Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Equity Securities | 1,500 | 1,400 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 7,820 | 7,499 |
Marketable Equity Securities | 5,877 | 7,447 |
Marketable Securities | 5,877 | 7,447 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 4,700 | 5,150 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 7,820 | 7,499 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Equity Securities | $ 258 | $ 351 |
Financial Instruments (Non-Mark
Financial Instruments (Non-Marketable Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Unrealized gains on non-marketable equity securities | $ 838 | $ 4,678 |
Unrealized losses on non-marketable equity securities (including impairment) | (378) | (2) |
Total unrealized gain (loss) recognized on non-marketable equity securities | $ 460 | $ 4,676 |
Financial Instruments (Derivati
Financial Instruments (Derivative Notional Amounts) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments: | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 17,817 | $ 16,362 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments: | Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 2,438 | 2,556 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments: | Net investment hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 9,933 | 10,159 |
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 42,338 | 41,031 |
Other contracts | Derivatives Not Designated as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 6,052 | $ 4,275 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Assets: | ||
Derivative Assets | $ 894 | $ 999 |
Derivative Liabilities: | ||
Derivative Liabilities | 730 | 619 |
Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 807 | 961 |
Derivative Liabilities: | ||
Derivative Liabilities | 643 | 581 |
Level 2 | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 731 | |
Level 2 | Other current and non-current assets | Foreign exchange contracts | ||
Derivative Assets: | ||
Derivative Assets | 909 | |
Level 2 | Other current and non-current assets | Other contracts | ||
Derivative Assets: | ||
Derivative Assets | 76 | 52 |
Level 2 | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 567 | |
Level 2 | Accrued expenses and other liabilities, current and non-current | Foreign exchange contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | 460 | |
Level 2 | Accrued expenses and other liabilities, current and non-current | Other contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | 76 | 121 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 705 | 867 |
Derivative Liabilities: | ||
Derivative Liabilities | 163 | 8 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 705 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Other current and non-current assets | Foreign exchange contracts | ||
Derivative Assets: | ||
Derivative Assets | 867 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Other current and non-current assets | Other contracts | ||
Derivative Assets: | ||
Derivative Assets | 0 | 0 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 163 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | Foreign exchange contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | 8 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | Other contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 102 | 94 |
Derivative Liabilities: | ||
Derivative Liabilities | 480 | 573 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 26 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Other current and non-current assets | Foreign exchange contracts | ||
Derivative Assets: | ||
Derivative Assets | 42 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Other current and non-current assets | Other contracts | ||
Derivative Assets: | ||
Derivative Assets | 76 | 52 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 404 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | Foreign exchange contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | 452 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | Other contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | $ 76 | $ 121 |
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, 2022 | Mar. 31, 2021 | |
Foreign exchange contracts | ||
Revenues | $ 68,011 | $ 55,314 |
Other income (expense), net | (1,160) | 4,846 |
Revenues | ||
Foreign exchange contracts | ||
Total gains (losses) | 278 | (109) |
Other income (expense), net | ||
Foreign exchange contracts | ||
Total gains (losses) | (195) | 5 |
Foreign exchange contracts | ||
Foreign exchange contracts | ||
Total | 269 | 589 |
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 | (247) | (340) |
Other derivatives | Revenues | Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments | 0 | 0 |
Other derivatives | Other income (expense), net | Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments | 38 | 323 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | ||
Foreign exchange contracts | ||
Amount included in the assessment of effectiveness | 135 | 162 |
Amount excluded from the assessment of effectiveness | (15) | 49 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||
Foreign exchange contracts | ||
Amount of gains (losses) reclassified from AOCI to income | 297 | (105) |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | (19) | (4) |
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 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 | 13 | 0 |
Derivatives designated as hedging instruments | (12) | 0 |
Amount excluded from the assessment of effectiveness | 1 | 2 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | ||
Foreign exchange contracts | ||
Amount included in the assessment of effectiveness | 149 | 378 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | Revenues | ||
Foreign exchange contracts | ||
Amount excluded from the assessment of effectiveness | 0 | 0 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | Other income (expense), net | ||
Foreign exchange contracts | ||
Amount excluded from the assessment of effectiveness | $ 12 | $ 20 |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting of Assets | ||
Gross Amounts of Recognized Assets | $ 894 | $ 999 |
Gross Amounts Offset in the Consolidated Balance Sheets | (87) | (38) |
Net Presented in the Consolidated Balance Sheets | 807 | 961 |
Financial Instruments | (427) | (434) |
Cash Collateral Received | (310) | (394) |
Non-Cash Collateral Received | 0 | (12) |
Net Assets Exposed | 70 | 121 |
Offsetting of Liabilities | ||
Gross Amounts of Recognized Liabilities | 730 | 619 |
Gross Amounts Offset in the Consolidated Balance Sheets | (87) | (38) |
Net Presented in the Consolidated Balance Sheets | 643 | 581 |
Financial Instruments | (427) | (434) |
Cash Collateral Pledged | (5) | (4) |
Non-Cash Collateral Pledged | (49) | (110) |
Net Liabilities | $ 162 | $ 33 |
Variable Interest Entities (V_2
Variable Interest Entities (VIE) (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Assets not available for use | $ 357,096 | $ 359,268 |
Liabilities with no recourse | 103,092 | 107,633 |
Noncontrolling interest | 4,300 | 4,300 |
Unconsolidated VIE, carrying value | 2,800 | 2,700 |
Maximum exposure | 2,900 | 2,900 |
Nonrecourse | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liabilities with no recourse | 2,400 | 2,500 |
Asset Pledged as Collateral | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets not available for use | $ 5,500 | $ 6,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Apr. 26, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Commercial paper | $ 0 | $ 0 | |
Estimated fair value of long-term debt | 11,400,000,000 | 12,400,000,000 | |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Short-term debt, maximum borrowing capacity | 10,000,000,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing on lines of credit | 10,000,000,000 | ||
Line of credit drawn | 0 | $ 0 | |
Revolving Credit Facility | Credit Facility Due April 2022 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing on lines of credit | 4,000,000,000 | ||
Revolving Credit Facility | Credit Facility Due April 2026 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing on lines of credit | $ 6,000,000,000 | ||
Revolving Credit Facility | Credit Facility Due April 2023 | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Maximum borrowing on lines of credit | $ 4,000,000,000 |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt | ||
Future finance lease payments, net | $ 2,125 | $ 2,086 |
Total debt | 15,125 | 15,086 |
Unamortized discount and debt issuance costs | (153) | (156) |
Less: Current portion of future finance lease payments, net | (181) | (113) |
Long-term debt | 14,791 | 14,817 |
2014-2020 Notes Issuances | ||
Debt | ||
Notes issuances | $ 13,000 | $ 13,000 |
2014-2020 Notes Issuances | Minimum | ||
Debt | ||
Coupon Rate | 0.45% | |
Effective Interest Rate | 0.57% | |
2014-2020 Notes Issuances | Maximum | ||
Debt | ||
Coupon Rate | 3.38% | |
Effective Interest Rate | 3.38% |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Allowance for credit losses on accounts receivable | $ 578 | $ 550 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Property and Equipment) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 156,177 | $ 147,013 |
Less: accumulated depreciation | (51,959) | (49,414) |
Property and equipment, net | 104,218 | 97,599 |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 62,869 | 58,881 |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 57,628 | 55,606 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 25,555 | 23,172 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 9,912 | 9,146 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 213 | $ 208 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Components Disclosure [Abstract] | ||
European Commission fines | $ 9,670 | $ 9,799 |
Accrued customer liabilities | 3,171 | 3,505 |
Accrued purchases of property and equipment | 3,175 | 2,415 |
Current operating lease liabilities | 2,267 | 2,189 |
Other accrued expenses and current liabilities | 14,768 | 13,328 |
Accrued expenses and other current liabilities | $ 33,051 | $ 31,236 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Components of AOCI, net of tax | ||
Beginning Balance | $ 251,635 | $ 222,544 |
Other comprehensive income (loss) before reclassifications | (2,310) | (781) |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | (15) | 49 |
Amounts reclassified from AOCI | (101) | 96 |
Other comprehensive income (loss) | (2,426) | (636) |
Ending Balance | 254,004 | 230,013 |
Total | ||
Components of AOCI, net of tax | ||
Beginning Balance | (1,623) | 633 |
Ending Balance | (4,049) | (3) |
Foreign Currency Translation Adjustments | ||
Components of AOCI, net of tax | ||
Beginning Balance | (2,306) | (864) |
Other comprehensive income (loss) before reclassifications | 39 | (423) |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | 39 | (423) |
Ending Balance | (2,267) | (1,287) |
Unrealized Gains (Losses) on Available-for-Sale Investments | ||
Components of AOCI, net of tax | ||
Beginning Balance | 236 | 1,612 |
Other comprehensive income (loss) before reclassifications | (2,478) | (488) |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 |
Amounts reclassified from AOCI | 148 | 11 |
Other comprehensive income (loss) | (2,330) | (477) |
Ending Balance | (2,094) | 1,135 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Components of AOCI, net of tax | ||
Beginning Balance | 447 | (115) |
Other comprehensive income (loss) before reclassifications | 129 | 130 |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | (15) | 49 |
Amounts reclassified from AOCI | (249) | 85 |
Other comprehensive income (loss) | (135) | 264 |
Ending Balance | $ 312 | $ 149 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information (Effects on Net Income of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | $ 68,011 | $ 55,314 |
Other income (expense), net | (1,160) | 4,846 |
Benefit (provision) for income taxes | (2,498) | (3,353) |
Net income | 16,436 | 17,930 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 101 | (96) |
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 | (190) | (14) |
Benefit (provision) for income taxes | 42 | 3 |
Net income | (148) | (11) |
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] | ||
Benefit (provision) for income taxes | (50) | 19 |
Net income | 249 | (85) |
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 | 297 | (105) |
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 | $ 2 | $ 1 |
Supplemental Financial Statem_8
Supplemental Financial Statement Information (Schedule of Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Balance Sheet Components Disclosure [Abstract] | ||
Interest income | $ 414 | $ 345 |
Interest expense | (83) | (76) |
Foreign currency exchange losses, net | (73) | 113 |
Gain (loss) on debt securities, net | (367) | (86) |
Gain (loss) on equity securities, net | (1,070) | 4,837 |
Performance fees | 233 | (665) |
Income (loss) and impairment from equity method investments, net | (89) | 5 |
Other | (125) | 373 |
Other income (expense), net | (1,160) | 4,846 |
Interest costs capitalized | $ 34 | $ 47 |
Acquisitions (Details)
Acquisitions (Details) - Mandiant $ / shares in Units, $ in Millions | 1 Months Ended |
Mar. 31, 2022USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Share price (in dollars per share) | $ / shares | $ 23 |
Consideration transferred | $ | $ 5,400 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2021 | $ 22,956 |
Acquisitions | 95 |
Foreign currency translation and other adjustments | (41) |
Balance as of March 31, 2022 | 23,010 |
Google Services | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2021 | 19,826 |
Acquisitions | 9 |
Foreign currency translation and other adjustments | (36) |
Balance as of March 31, 2022 | 19,799 |
Google Cloud | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2021 | 2,337 |
Acquisitions | 86 |
Foreign currency translation and other adjustments | (4) |
Balance as of March 31, 2022 | 2,419 |
Other Bets | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2021 | 793 |
Acquisitions | 0 |
Foreign currency translation and other adjustments | (1) |
Balance as of March 31, 2022 | $ 792 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,537 | $ 5,826 |
Accumulated Amortization | 4,355 | 4,547 |
Total definite-lived intangible assets | 1,182 | 1,279 |
Intangible assets, gross carrying amount | 5,668 | 5,964 |
Intangible assets, net carrying amount | 1,313 | 1,417 |
Indefinite-lived intangible assets | 131 | 138 |
Patents and developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,613 | 4,786 |
Accumulated Amortization | 4,080 | 4,112 |
Total definite-lived intangible assets | 533 | 674 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 506 | 506 |
Accumulated Amortization | 166 | 140 |
Total definite-lived intangible assets | 340 | 366 |
Trade names and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 418 | 534 |
Accumulated Amortization | 109 | 295 |
Total definite-lived intangible assets | $ 309 | $ 239 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2022 | $ 363 | |
2023 | 274 | |
2024 | 244 | |
2025 | 116 | |
2026 | 71 | |
Thereafter | 114 | |
Total definite-lived intangible assets | $ 1,182 | $ 1,279 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Patents and developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 3 years 8 months 12 days | |
Trade names and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 5 years 7 months 6 days | |
Acquisition-related intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquisition-related intangible assets | $ 191 | $ 217 |
Contingencies (Details)
Contingencies (Details) € in Billions, $ in Billions | Mar. 20, 2019EUR (€) | Mar. 20, 2019USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 27, 2017EUR (€) | Jun. 27, 2017USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) |
European Commission Antitrust Investigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, loss in period | € 1.5 | $ 1.7 | € 4.3 | $ 5.1 | € 2.4 | $ 2.7 | $ 1.7 | $ 5.1 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) shares in Millions | Feb. 01, 2022 | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Apr. 26, 2022USD ($) | Apr. 30, 2021USD ($) |
Stockholders Equity Note [Line Items] | |||||
Repurchases of capital stock | $ 13,300,000,000 | $ 11,395,000,000 | |||
Stock split | 20 | ||||
Share Repurchase Program | |||||
Stockholders Equity Note [Line Items] | |||||
Remaining amount available for repurchase | $ 4,100,000,000 | ||||
Repurchases of capital stock (in shares) | shares | 4.9 | ||||
Repurchases of capital stock | $ 13,300,000,000 | ||||
Class C Capital Stock | Share Repurchase Program | |||||
Stockholders Equity Note [Line Items] | |||||
Authorized share repurchase amount | $ 50,000,000,000 | ||||
Repurchases of capital stock (in shares) | shares | 4.7 | ||||
Repurchases of capital stock | $ 12,600,000,000 | ||||
Class C Capital Stock | Share Repurchase Program | Subsequent Event | |||||
Stockholders Equity Note [Line Items] | |||||
Authorized share repurchase amount | $ 70,000,000,000 | ||||
Class A Capital Stock | Share Repurchase Program | |||||
Stockholders Equity Note [Line Items] | |||||
Repurchases of capital stock (in shares) | shares | 0.2 | ||||
Repurchases of capital stock | $ 660,000,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Denominator | ||
Basic net income per share (in dollars per share) | $ 24.90 | $ 26.63 |
Weighted-average effect of dilutive securities | ||
Diluted net income per share (in dollars per share) | $ 24.62 | $ 26.29 |
Class A Common Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 7,481 | $ 8,011 |
Denominator | ||
Number of shares used in basic computation (shares) | 300,478 | 300,800 |
Basic net income per share (in dollars per share) | $ 24.90 | $ 26.63 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 7,481 | $ 8,011 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 1,109 | 1,221 |
Reallocation of undistributed earnings | (95) | (119) |
Allocation of undistributed earnings | $ 8,495 | $ 9,113 |
Denominator | ||
Number of shares used in basic computation (shares) | 300,478 | 300,800 |
Weighted-average effect of dilutive securities | ||
Conversion of Class B to Class A common shares outstanding (shares) | 44,535 | 45,840 |
Number of shares used in per share computation (shares) | 345,018 | 346,658 |
Diluted net income per share (in dollars per share) | $ 24.62 | $ 26.29 |
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) | 5 | 18 |
Class B Common Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 1,109 | $ 1,221 |
Denominator | ||
Number of shares used in basic computation (shares) | 44,535 | 45,840 |
Basic net income per share (in dollars per share) | $ 24.90 | $ 26.63 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 1,109 | $ 1,221 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings | (12) | (16) |
Allocation of undistributed earnings | $ 1,097 | $ 1,205 |
Denominator | ||
Number of shares used in basic computation (shares) | 44,535 | 45,840 |
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) | 44,535 | 45,840 |
Diluted net income per share (in dollars per share) | $ 24.62 | $ 26.29 |
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 | $ 7,846 | $ 8,698 |
Denominator | ||
Number of shares used in basic computation (shares) | 315,158 | 326,580 |
Basic net income per share (in dollars per share) | $ 24.90 | $ 26.63 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 7,846 | $ 8,698 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings | 95 | 119 |
Allocation of undistributed earnings | $ 7,941 | $ 8,817 |
Denominator | ||
Number of shares used in basic computation (shares) | 315,158 | 326,580 |
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) | 322,533 | 335,413 |
Diluted net income per share (in dollars per share) | $ 24.62 | $ 26.29 |
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) | 7,375 | 8,833 |
Compensation Plans (Narrative)
Compensation Plans (Narrative) (Details) - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 4.5 | $ 3.8 |
Awards expected to be settled with stock | 4.4 | $ 3.7 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 38.9 | |
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, 2022$ / sharesshares | |
Unvested restricted stock units - number of shares | |
Unvested at beginning of period (in shares) | shares | 16,894,713 |
Granted (in shares) | shares | 6,698,922 |
Vested (in shares) | shares | (2,431,649) |
Forfeited/canceled (in shares) | shares | (536,815) |
Unvested at end of period (in shares) | shares | 20,625,171 |
Unvested restricted stock units - weighted-average grant-date fair value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 1,626.13 |
Granted (in dollars per share) | $ / shares | 2,758.02 |
Vested (in dollars per share) | $ / shares | 1,691.6 |
Forfeited/canceled (in dollars per share) | $ / shares | 1,848.92 |
Unvested at end of period (in dollars per share) | $ / shares | $ 1,980.24 |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income before provision for income taxes | $ 18,934 | $ 21,283 |
Provision for income taxes | $ 2,498 | $ 3,353 |
Effective tax rate | 13.20% | 15.80% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | Mar. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits | $ 5.4 | $ 5.2 |
Unrecognized tax benefits that would impact effective tax rate | $ 3.9 | $ 3.7 |
Information about Segments an_3
Information about Segments and Geographic Areas (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 68,011 | $ 55,314 |
Hedging gains (losses) | 278 | (109) |
Google Services | ||
Segment Reporting Information [Line Items] | ||
Revenues | 61,472 | 51,178 |
Google Cloud | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,821 | 4,047 |
Other Bets | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 440 | $ 198 |
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, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | $ 20,094 | $ 16,437 |
Operating Segments | Google Services | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 22,920 | 19,546 |
Operating Segments | Google Cloud | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | (931) | (974) |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | (1,155) | (1,145) |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | $ (740) | $ (990) |
Information about Segments an_5
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 117,210 | $ 110,558 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 85,341 | 80,207 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 31,869 | $ 30,351 |