Cover Page
Cover Page - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jul. 18, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 | 2023 | |
Document Fiscal Period Focus | Q2 | |
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 | 5,933 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 875 | |
Class C Capital Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class C Capital Stock, $0.001 par value | |
Trading Symbol | GOOG | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 5,801 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 25,929 | $ 21,879 |
Marketable securities | 92,403 | 91,883 |
Total cash, cash equivalents, and marketable securities | 118,332 | 113,762 |
Accounts receivable, net | 38,804 | 40,258 |
Inventory | 2,231 | 2,670 |
Other current assets | 9,421 | 8,105 |
Total current assets | 168,788 | 164,795 |
Non-marketable securities | 31,224 | 30,492 |
Deferred income taxes | 9,357 | 5,261 |
Property and equipment, net | 121,208 | 112,668 |
Operating lease assets | 14,469 | 14,381 |
Intangible assets, net | 1,966 | 2,084 |
Goodwill | 29,210 | 28,960 |
Other non-current assets | 6,822 | 6,623 |
Total assets | 383,044 | 365,264 |
Current liabilities: | ||
Accounts payable | 5,313 | 5,128 |
Accrued compensation and benefits | 11,260 | 14,028 |
Accrued expenses and other current liabilities | 49,300 | 37,866 |
Accrued revenue share | 7,990 | 8,370 |
Deferred revenue | 3,846 | 3,908 |
Total current liabilities | 77,709 | 69,300 |
Long-term debt | 13,705 | 14,701 |
Deferred revenue, non-current | 667 | 599 |
Income taxes payable, non-current | 8,753 | 9,258 |
Deferred income taxes | 558 | 514 |
Operating lease liabilities | 12,746 | 12,501 |
Other long-term liabilities | 1,765 | 2,247 |
Total liabilities | 115,903 | 109,120 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value per share, 100 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: 300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,849 (Class A 5,964, Class B 883, Class C 6,002) and 12,629 (Class A 5,934, Class B 876, Class C 5,819) shares issued and outstanding | 72,248 | 68,184 |
Accumulated other comprehensive income (loss) | (5,991) | (7,603) |
Retained earnings | 200,884 | 195,563 |
Total stockholders’ equity | 267,141 | 256,144 |
Total liabilities and stockholders’ equity | $ 383,044 | $ 365,264 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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) | 300,000,000,000 | 300,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 12,629,000,000 | 12,849,000,000 |
Common stock and capital stock, shares outstanding (in shares) | 12,629,000,000 | 12,849,000,000 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock and capital stock, shares authorized (in shares) | 180,000,000,000 | 180,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 5,934,000,000 | 5,964,000,000 |
Common stock and capital stock, shares outstanding (in shares) | 5,934,000,000 | 5,964,000,000 |
Class B Common Stock | ||
Stockholders’ equity: | ||
Common stock and capital stock, shares authorized (in shares) | 60,000,000,000 | 60,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 876,000,000 | 883,000,000 |
Common stock and capital stock, shares outstanding (in shares) | 876,000,000 | 883,000,000 |
Class C Capital Stock | ||
Stockholders’ equity: | ||
Common stock and capital stock, shares authorized (in shares) | 60,000,000,000 | 60,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 5,819,000,000 | 6,002,000,000 |
Common stock and capital stock, shares outstanding (in shares) | 5,819,000,000 | 6,002,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 74,604 | $ 69,685 | $ 144,391 | $ 137,696 |
Costs and expenses: | ||||
Cost of revenues | 31,916 | 30,104 | 62,528 | 59,703 |
Research and development | 10,588 | 9,841 | 22,056 | 18,960 |
Sales and marketing | 6,781 | 6,630 | 13,314 | 12,455 |
General and administrative | 3,481 | 3,657 | 7,240 | 7,031 |
Total costs and expenses | 52,766 | 50,232 | 105,138 | 98,149 |
Income from operations | 21,838 | 19,453 | 39,253 | 39,547 |
Other income (expense), net | 65 | (439) | 855 | (1,599) |
Income before income taxes | 21,903 | 19,014 | 40,108 | 37,948 |
Provision for income taxes | 3,535 | 3,012 | 6,689 | 5,510 |
Net income | $ 18,368 | $ 16,002 | $ 33,419 | $ 32,438 |
Basic net income per share of Class A, Class B, and Class C stock (in dollars per share) | $ 1.45 | $ 1.22 | $ 2.63 | $ 2.46 |
Diluted net income per share of Class A, Class B, and Class C stock (in dollars per share) | $ 1.44 | $ 1.21 | $ 2.61 | $ 2.44 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,368 | $ 16,002 | $ 33,419 | $ 32,438 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | 235 | (1,665) | 831 | (1,626) |
Available-for-sale investments: | ||||
Change in net unrealized gains (losses) | (570) | (926) | 296 | (3,404) |
Less: reclassification adjustment for net (gains) losses included in net income | 198 | 233 | 490 | 381 |
Net change, net of income tax benefit (expense) of $227, $106, $860 and $(224) | (372) | (693) | 786 | (3,023) |
Cash flow hedges: | ||||
Change in net unrealized gains (losses) | 151 | 915 | 77 | 1,029 |
Less: reclassification adjustment for net (gains) losses included in net income | (5) | (336) | (82) | (585) |
Net change, net of income tax benefit (expense) of $(113), $(11), $(69) and $19 | 146 | 579 | (5) | 444 |
Other comprehensive income (loss) | 9 | (1,779) | 1,612 | (4,205) |
Comprehensive income | $ 18,377 | $ 14,223 | $ 35,031 | $ 28,233 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Income tax benefit (expense) related to available-for-sale investments | $ 106 | $ 227 | $ (224) | $ 860 |
Income tax benefit (expense) related to cash flow hedges | $ (11) | $ (113) | $ 19 | $ (69) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ 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, 2021 | 13,242 | |||
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) | 67 | |||
Stock issued | $ 8 | |||
Stock-based compensation expense | 9,370 | 9,370 | ||
Tax withholding related to vesting of restricted stock units and other | (5,330) | $ (5,329) | (1) | |
Repurchases of stock (in shares) | (231) | |||
Repurchases of stock | (28,497) | $ (1,421) | (27,076) | |
Net income | 32,438 | 32,438 | ||
Other comprehensive income (loss) | (4,205) | (4,205) | ||
Ending Balance (in shares) at Jun. 30, 2022 | 13,078 | |||
Ending Balance at Jun. 30, 2022 | 255,419 | $ 64,402 | (5,828) | 196,845 |
Beginning Balance (in shares) at Mar. 31, 2022 | 13,175 | |||
Beginning Balance at Mar. 31, 2022 | $ 254,004 | $ 62,832 | (4,049) | 195,221 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock issued (in shares) | 36 | |||
Stock issued | $ 1 | |||
Stock-based compensation expense | 4,823 | 4,823 | ||
Tax withholding related to vesting of restricted stock units and other | (2,435) | $ (2,434) | (1) | |
Repurchases of stock (in shares) | (133) | |||
Repurchases of stock | (15,197) | $ (820) | (14,377) | |
Net income | 16,002 | 16,002 | ||
Other comprehensive income (loss) | (1,779) | (1,779) | ||
Ending Balance (in shares) at Jun. 30, 2022 | 13,078 | |||
Ending Balance at Jun. 30, 2022 | 255,419 | $ 64,402 | (5,828) | 196,845 |
Beginning Balance (in shares) at Dec. 31, 2022 | 12,849 | |||
Beginning Balance at Dec. 31, 2022 | 256,144 | $ 68,184 | (7,603) | 195,563 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock issued (in shares) | 68 | |||
Stock-based compensation expense | 11,128 | $ 11,128 | ||
Tax withholding related to vesting of restricted stock units and other | (4,924) | $ (4,924) | ||
Repurchases of stock (in shares) | (288) | |||
Repurchases of stock | (30,238) | $ (2,140) | (28,098) | |
Net income | 33,419 | 33,419 | ||
Other comprehensive income (loss) | 1,612 | 1,612 | ||
Ending Balance (in shares) at Jun. 30, 2023 | 12,629 | |||
Ending Balance at Jun. 30, 2023 | 267,141 | $ 72,248 | (5,991) | 200,884 |
Beginning Balance (in shares) at Mar. 31, 2023 | 12,722 | |||
Beginning Balance at Mar. 31, 2023 | $ 260,894 | $ 70,269 | (6,000) | 196,625 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock issued (in shares) | 38 | |||
Stock-based compensation expense | $ 5,815 | 5,815 | ||
Tax withholding related to vesting of restricted stock units and other | (2,831) | $ (2,831) | ||
Repurchases of stock (in shares) | (131) | |||
Repurchases of stock | (15,114) | $ (1,005) | (14,109) | |
Net income | 18,368 | 18,368 | ||
Other comprehensive income (loss) | 9 | 9 | ||
Ending Balance (in shares) at Jun. 30, 2023 | 12,629 | |||
Ending Balance at Jun. 30, 2023 | $ 267,141 | $ 72,248 | $ (5,991) | $ 200,884 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Net income | $ 33,419 | $ 32,438 |
Adjustments: | ||
Depreciation and impairment of property and equipment | 6,339 | 7,289 |
Amortization and impairment of intangible assets | 244 | 392 |
Stock-based compensation expense | 11,058 | 9,286 |
Deferred income taxes | (4,269) | (4,237) |
Loss (gain) on debt and equity securities, net | 425 | 2,478 |
Other | 650 | 202 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable, net | 1,506 | 2,395 |
Income taxes, net | 8,520 | (253) |
Other assets | (1,259) | (1,621) |
Accounts payable | 14 | (1,172) |
Accrued expenses and other liabilities | (4,037) | (1,719) |
Accrued revenue share | (418) | (942) |
Deferred revenue | (17) | (8) |
Net cash provided by operating activities | 52,175 | 44,528 |
Investing activities | ||
Purchases of property and equipment | (13,177) | (16,614) |
Purchases of marketable securities | (35,589) | (50,199) |
Maturities and sales of marketable securities | 37,049 | 55,374 |
Purchases of non-marketable securities | (1,513) | (1,264) |
Maturities and sales of non-marketable securities | 181 | 125 |
Acquisitions, net of cash acquired, and purchases of intangible assets | (340) | (1,236) |
Other investing activities | (357) | 576 |
Net cash used in investing activities | (13,746) | (13,238) |
Financing activities | ||
Net payments related to stock-based award activities | (4,725) | (5,180) |
Repurchases of stock | (29,526) | (28,497) |
Proceeds from issuance of debt, net of costs | 8,050 | 29,228 |
Repayments of debt | (8,207) | (29,582) |
Proceeds from sale of interest in consolidated entities, net | 5 | 0 |
Net cash used in financing activities | (34,403) | (34,031) |
Effect of exchange rate changes on cash and cash equivalents | 24 | (268) |
Net increase (decrease) in cash and cash equivalents | 4,050 | (3,009) |
Cash and cash equivalents at beginning of period | 21,879 | 20,945 |
Cash and cash equivalents at end of period | $ 25,929 | $ 17,936 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
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 enterprise customers with infrastructure and platform services as well as communication and collaboration tools; sales of other products and services, such as apps and in-app purchases, and hardware; and fees received for subscription-based products. Basis of Consolidation The consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the variable interest and voting models. 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, 2023. 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, 2022 filed with the SEC. Change in Accounting Estimate In January 2023, we completed an assessment of the useful lives of our servers and network equipment and adjusted the estimated useful life of our servers from four years to six years and the estimated useful life of certain network equipment from five years to six years. This change in accounting estimate was effective beginning in fiscal year 2023. Based on the carrying value of servers and certain network equipment as of December 31, 2022, and those placed in service during the six months ended June 30, 2023, the effect of this change in estimate was a reduction in depreciation expense of $966 million and $2.0 billion and an increase in net income of $752 million and $1.5 billion, or $0.06 and $0.12 per basic and $0.06 and $0.12 per diluted share, for the three and six months ended June 30, 2023, respectively. Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregated Revenues The following table presents revenues disaggregated by type (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Google Search & other $ 40,689 $ 42,628 $ 80,307 $ 82,987 YouTube ads 7,340 7,665 14,209 14,358 Google Network 8,259 7,850 16,433 15,346 Google advertising 56,288 58,143 110,949 112,691 Google other 6,553 8,142 13,364 15,555 Google Services total 62,841 66,285 124,313 128,246 Google Cloud 6,276 8,031 12,097 15,485 Other Bets 193 285 633 573 Hedging gains (losses) 375 3 653 87 Total revenues $ 69,685 $ 74,604 $ 137,696 $ 144,391 The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 United States $ 32,727 47 % $ 35,073 47 % $ 64,460 47 % $ 67,937 47 % EMEA (1) 20,533 29 22,289 30 40,850 30 43,367 30 APAC (1) 11,710 17 12,728 17 23,551 17 24,409 17 Other Americas (1) 4,340 6 4,511 6 8,182 6 8,591 6 Hedging gains (losses) 375 1 3 0 653 0 87 0 Total revenues $ 69,685 100 % $ 74,604 100 % $ 137,696 100 % $ 144,391 100 % (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America ("Other Americas"). Revenue Backlog As of June 30, 2023, we had $60.6 billion of remaining performance obligations (“revenue backlog”), primarily related to Google Cloud. Our revenue backlog represents commitments in customer contracts for future services that have not yet been recognized as revenue. The amount and timing of revenue recognition for these commitments is largely driven by our ability to deliver in accordance with relevant contract terms and when our customers utilize services, which could affect our estimate of revenue backlog and when we expect to recognize such as revenue. We expect to recognize approximately half of the revenue backlog as revenues over t he next 24 months with the remaining to be recognized thereafter. 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. Deferred Revenues 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, 2022 was $4.5 billion, of which $2.1 billion was recognized as revenues during the six months ended June 30, 2023. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Measurements Investments Measured at Fair Value on a Recurring Basis Cash, cash equivalents, and marketable equity securities are measured at fair value and classified within Level 1 and Level 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. Debt securities are measured at fair value and classified 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. The following tables summarize our cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions): As of December 31, 2022 Fair Value Hierarchy Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Fair value changes recorded in other comprehensive income Time deposits Level 2 $ 5,297 $ 0 $ 0 $ 5,297 $ 5,293 $ 4 Government bonds Level 2 41,036 64 (2,045) 39,055 283 38,772 Corporate debt securities Level 2 28,578 8 (1,569) 27,017 1 27,016 Mortgage-backed and asset-backed securities Level 2 16,176 5 (1,242) 14,939 0 14,939 Total investments with fair value change reflected in other comprehensive income (1) $ 91,087 $ 77 $ (4,856) $ 86,308 $ 5,577 $ 80,731 Fair value adjustments recorded in net income Money market funds Level 1 $ 7,234 $ 7,234 $ 0 Current marketable equity securities (2) Level 1 4,013 0 4,013 Mutual funds Level 2 339 0 339 Government bonds Level 2 1,877 440 1,437 Corporate debt securities Level 2 3,744 65 3,679 Mortgage-backed and asset-backed securities Level 2 1,686 2 1,684 Total investments with fair value change recorded in net income $ 18,893 $ 7,741 $ 11,152 Cash 0 8,561 0 Total $ 91,087 $ 77 $ (4,856) $ 105,201 $ 21,879 $ 91,883 (1) Represents gross unrealized gains and losses for debt securities recorded to accumulated other comprehensive income (AOCI). (2) The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $803 million as of December 31, 2022 is included within other non-current assets. As of June 30, 2023 Fair Value Hierarchy Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Fair value changes recorded in other comprehensive income Time deposits Level 2 $ 2,913 $ 0 $ 0 $ 2,913 $ 2,913 $ 0 Government bonds Level 2 45,339 49 (1,588) 43,800 2,481 41,319 Corporate debt securities Level 2 23,480 8 (1,162) 22,326 0 22,326 Mortgage-backed and asset-backed securities Level 2 18,047 4 (1,092) 16,959 0 16,959 Total investments with fair value change reflected in other comprehensive income (1) $ 89,779 $ 61 $ (3,842) $ 85,998 $ 5,394 $ 80,604 Fair value adjustments recorded in net income Money market funds Level 1 $ 9,472 $ 9,472 $ 0 Current marketable equity securities (2) Level 1 4,088 0 4,088 Mutual funds Level 2 315 0 315 Government bonds Level 2 2,158 546 1,612 Corporate debt securities Level 2 3,831 2 3,829 Mortgage-backed and asset-backed securities Level 2 1,955 0 1,955 Total investments with fair value change recorded in net income $ 21,819 $ 10,020 $ 11,799 Cash 0 10,515 0 Total $ 89,779 $ 61 $ (3,842) $ 107,817 $ 25,929 $ 92,403 (1) Represents gross unrealized gains and losses for debt securities recorded to AOCI. (2) The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $892 million as of June 30, 2023 is included within other non-current assets Investments Measured at Fair Value on a Nonrecurring Basis 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. 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. Debt Securities The following table summarizes the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates (in millions): As of Due in 1 year or less $ 15,403 Due in 1 year through 5 years 43,749 Due in 5 years through 10 years 15,162 Due after 10 years 13,686 Total $ 88,000 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, 2022 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 21,039 $ (1,004) $ 13,438 $ (1,041) $ 34,477 $ (2,045) Corporate debt securities 11,228 (440) 15,125 (1,052) 26,353 (1,492) Mortgage-backed and asset-backed securities 7,725 (585) 6,964 (657) 14,689 (1,242) Total $ 39,992 $ (2,029) $ 35,527 $ (2,750) $ 75,519 $ (4,779) As of June 30, 2023 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 19,195 $ (580) $ 13,976 $ (1,008) $ 33,171 $ (1,588) Corporate debt securities 3,915 (69) 17,573 (1,008) 21,488 (1,077) Mortgage-backed and asset-backed securities 6,352 (153) 10,095 (939) 16,447 (1,092) Total $ 29,462 $ (802) $ 41,644 $ (2,955) $ 71,106 $ (3,757) We determine realized gains or losses on the sale or extinguishment of debt securities on a specific identification method. The following table summarizes gains and losses for debt securities, reflected as a component of other income (expense), net (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Unrealized gain (loss) on fair value option debt securities $ (367) $ (24) $ (569) $ 121 Gross realized gain on debt securities 29 28 69 85 Gross realized loss on debt securities (368) (303) (639) (795) (Increase) decrease in allowance for credit losses (84) (5) (18) (8) Total gain (loss) on debt securities recognized in other income (expense), net $ (790) $ (304) $ (1,157) $ (597) Equity Investments The carrying value of equity securities is measured as the total initial cost plus the cumulative net gain (loss). 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. The carrying values for marketable and non-marketable equity securities are summarized below (in millions): As of December 31, 2022 As of June 30, 2023 Marketable Equity Securities Non-Marketable Equity Securities Total Marketable Equity Securities Non-Marketable Equity Securities Total Total initial cost $ 5,764 $ 16,157 $ 21,921 $ 5,647 $ 17,261 $ 22,908 Cumulative net gain (loss) (1) (608) 12,372 11,764 (352) 11,868 11,516 Carrying value $ 5,156 $ 28,529 $ 33,685 $ 5,295 $ 29,129 $ 34,424 (1) Non-marketable equity securities cumulative net gain (loss) is comprised of $16.8 billion gains and $4.5 billion losses (including impairments) as of December 31, 2022 and $17.8 billion gains and $5.9 billion losses (including impairments) as of June 30, 2023. Gains and Losses on Marketable and Non-marketable Equity Securities Gains and losses (including impairments), net, for marketable and non-marketable equity securities included in other income (expense), net are summarized below (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Realized net gain (loss) on equity securities sold during the period $ 26 $ 87 $ (230) $ 292 Unrealized net gain (loss) on marketable equity securities (1,188) 397 (2,462) 349 Unrealized net gain (loss) on non-marketable equity securities (1) 911 (689) 1,371 (469) Total gain (loss) on equity securities in other income (expense), net $ (251) $ (205) $ (1,321) $ 172 (1) Unrealized gain (loss) on non-marketable equity securities accounted for under the measurement alternative is comprised of $2.2 billion and $75 million of upward adjustments and $1.3 billion and $789 million of downward adjustments (including impairments) for three months ended June 30, 2022 and 2023, respectively, and $3.0 billion and $989 million of upward adjustments and $1.6 billion and $1.5 billion of downward adjustments (including impairments) for the six months ended June 30, 2022 and 2023, respectively. In the table above, realized 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 sold during the period. While these net gains (losses) 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 (losses) on the securities sold during the period. Cumulative net gains (losses) 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 Six Months Ended June 30, June 30, 2022 2023 2022 2023 Total sale price $ 645 $ 427 $ 1,335 $ 739 Total initial cost 168 156 428 367 Cumulative net gain (loss) $ 477 $ 271 $ 907 $ 372 Equity Securities Accounted for Under the Equity Method As of December 31, 2022 and June 30, 2023 equity securities accounted for under the equity method had a carrying value of approximately $1.5 billion for both periods. 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 use derivative instruments to manage risks relating to our ongoing business operations. The primary risk managed 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 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 and present all other derivatives at gross fair values. The accounting treatment for derivatives is based on the intended use and hedge designation. Cash Flow Hedges We designate foreign currency forward and option contracts (including collars) as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. These contracts have maturities of 24 months or les s. 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 forward points and time value from our assessment of hedge effectiveness and amortize them on a straight-line basis over the life of the hedging instrument in revenues. The difference between fair value changes of the excluded component and the amount amortized to revenues is recorded in AOCI. As of June 30, 2023 t he net accumulated gain on our foreign currency cash flow hedges before tax effect w as $24 million , which is expected to be reclassified from AOCI into revenues 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 marketable securities 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 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 forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in other income (expense), net. Other Derivatives We enter into foreign currency forward and option contracts that are not designated as hedging instruments 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 derivatives that are not designated as accounting hedges are primarily recorded 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. From time to time, we enter into derivatives to hedge the market price risk on certain of our marketable equity securities. Gains and losses arising from other derivatives are primarily reflected within the “other” component of other income (expense), net. See Note 6 for further details. The gross notional amounts of outstanding derivative instruments were as follows (in millions): As of December 31, 2022 As of June 30, 2023 Derivatives designated as hedging instruments: Foreign exchange contracts Cash flow hedges $ 15,972 $ 15,823 Fair value hedges $ 2,117 $ 1,472 Net investment hedges $ 8,751 $ 9,371 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 34,979 $ 34,185 Other contracts $ 7,932 $ 9,133 The fair values of outstanding derivative instruments were as follows (in millions): As of December 31, 2022 As of June 30, 2023 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Derivatives designated as hedging instruments: Foreign exchange contracts $ 271 $ 556 $ 228 $ 201 Derivatives not designated as hedging instruments: Foreign exchange contracts 365 207 130 136 Other contracts 40 47 39 67 Total derivatives not designated as hedging instruments 405 254 169 203 Total $ 676 $ 810 $ 397 $ 404 (1) Derivative assets are recorded as other current and non-current assets in the Consolidated Balance Sheets. (2) Derivative liabilities are recorded as accrued expenses and other liabilities, current and non-current in the Consolidated Balance Sheets. The gains (losses) on derivatives in cash flow hedging and net investment hedging relationships recognized in other comprehensiv e income (OCI) are summarized below (in millions): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Derivatives in cash flow hedging relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ 1,131 $ 77 $ 1,266 $ (61) Amount excluded from the assessment of effectiveness (39) 80 (54) 127 Derivatives in net investment hedging relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 509 (59) 658 (274) Total $ 1,601 $ 98 $ 1,870 $ (208) The table below presents the gains (losses) of our derivatives on the Consolidated Statements of Income: (in millions): Gains (Losses) Recognized in Income Three Months Ended June 30, 2022 2023 Revenues Other income (expense), net Revenues Other income (expense), net Total amounts in the Consolidated Statements of Income $ 69,685 $ (439) $ 74,604 $ 65 Effect of cash flow hedges: Foreign exchange contracts Amount reclassified from AOCI to income $ 400 $ 0 $ (2) $ 0 Amount excluded from the assessment of effectiveness (amortized) (24) 0 6 0 Effect of fair value hedges: Foreign exchange contracts Hedged items 0 (136) 0 22 Derivatives designated as hedging instruments 0 136 0 (22) Amount excluded from the assessment of effectiveness 0 2 0 5 Effect of net investment hedges: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 28 0 72 Effect of non designated hedges: Foreign exchange contracts 0 (149) 0 124 Other contracts 0 86 0 (4) Total gains (losses) $ 376 $ (33) $ 4 $ 197 Gains (Losses) Recognized in Income Six Months Ended June 30, 2022 2023 Revenues Other income (expense), net Revenues Other income (expense), net Total amounts in the Consolidated Statements of Income $ 137,696 $ (1,599) $ 144,391 $ 855 Effect of cash flow hedges: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ 697 $ 0 $ 86 $ 0 Amount excluded from the assessment of effectiveness (amortized) (43) 0 2 0 Effect of fair value hedges: Foreign exchange contracts Hedged items 0 (123) 0 54 Derivatives designated as hedging instruments 0 124 0 (54) Amount excluded from the assessment of effectiveness 0 3 0 10 Effect of net investment hedges: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 40 0 123 Effect of non designated hedges: Foreign exchange contracts 0 (396) 0 154 Other Contracts 0 124 0 (1) Total gains (losses) $ 654 $ (228) $ 88 $ 286 Offsetting of Derivatives We enter into master netting arrangements and collateral security arrangements to reduce credit risk. Cash collateral received related to derivative instruments under our collateral security arrangements are included in other current assets liability 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): As of December 31, 2022 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments (1) Cash and Non-Cash Collateral Received or Pledged Net Amounts Derivatives assets $ 760 $ (84) $ 676 $ (463) $ (132) $ 81 Derivatives liabilities $ 894 $ (84) $ 810 $ (463) $ (28) $ 319 As of June 30, 2023 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments (1) Cash and Non-Cash Collateral Received or Pledged Net Amounts Derivatives assets $ 444 $ (47) $ 397 $ (138) $ (226) $ 33 Derivatives liabilities $ 451 $ (47) $ 404 $ (138) $ (34) $ 232 (1) The balances as of December 31, 2022 and June 30, 2023 were related to derivatives allowed to be net settled in accordance with our master netting agreements. |
Variable Interest Entities (VIE
Variable Interest Entities (VIE) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022 and June 30, 2023, assets that can only be used to settle obligations of these VIEs were $4.1 billion and $3.1 billion, respectively, and the liabilities for which creditors only have recourse to the VIEs were $2.6 billion for both periods. We may continue to fund ongoing operations of certain VIEs that are included within Other Bets. Total noncontrolling interests (NCI) in our consolidated subsidiaries were $3.8 billion and $3.6 billion as of December 31, 2022 and June 30, 2023, respectively, of which $1.1 billion is redeemable noncontrolling interest (RNCI) for both periods. NCI and RNCI are included within additional paid-in capital. Net loss attributable to noncontrolling interests was not material for an y period presented and is included within the "other" component of OI&E. See Note 6 for further details on OI&E. 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 $2.8 billion, respectively, as of December 31, 2022 and $3.0 billion and $3.0 billion, respectively, as of June 30, 2023. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
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 c ommercial paper outstanding as of December 31, 2022 and June 30, 2023. 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, 2022 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) 2,142 2,159 Total debt 15,142 15,159 Unamortized discount and debt issuance costs (143) (137) Less: Current portion of long-term notes (2) 0 (999) Less: Current portion future finance lease payments, net and other current debt (1)(2) (298) (318) Total long-term debt $ 14,701 $ 13,705 (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 for further details. 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 $9.9 billion and $10.1 billion as of December 31, 2022 and June 30, 2023, 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 June 30, 2023, we had $10.0 billion of revolving credit facilities of which $4.0 billion expires in April 2024 and $6.0 billion expires in April 2028. 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 amoun ts were outstanding under the credit facilities as of December 31, 2022 and June 30, 2023. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 6 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Components Disclosure [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Accounts Receivable The allowance for credit losses on accounts receivable was $754 million and $836 million as of December 31, 2022 and June 30, 2023, respectively. Property and Equipment, Net Property and equipment, net, co nsisted of the following (in millions): As of As of Land and buildings $ 66,897 $ 68,890 Information technology assets 66,267 71,592 Construction in progress 27,657 32,019 Leasehold improvements 10,575 11,286 Furniture and fixtures 314 338 Property and equipment, gross 171,710 184,125 Less: accumulated depreciation (59,042) (62,917) Property and equipment, net $ 112,668 $ 121,208 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) $ 9,106 $ 9,446 Income taxes payable, net (2) 1,632 10,870 Accrued customer liabilities 3,619 3,498 Accrued purchases of property and equipment 3,019 3,380 Current operating lease liabilities 2,477 2,663 Other accrued expenses and current liabilities 18,013 19,443 Accrued expenses and other current liabilities $ 37,866 $ 49,300 (1) While each EC decision is under appeal, the fines are included in accrued expenses and other current liabilities on our Consolidated Balance Sheets, as we provided bank guarantees (in lieu of a cash payment) for the fines. Amounts include the effects of foreign exchange and interest. See Note 9 for further details. (2) Income taxes payable, net as of the quarter ended June 30, 2023 includes balances related to the 2023 Internal Revenue Service (IRS) payment deferral relief made available to taxpayers headquartered in designated counties in California. 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, 2021 $ (2,306) $ 236 $ 447 $ (1,623) Other comprehensive income (loss) before reclassifications (1,626) (3,404) 1,083 (3,947) Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (54) (54) Amounts reclassified from AOCI 0 381 (585) (204) Other comprehensive income (loss) (1,626) (3,023) 444 (4,205) Balance as of June 30, 2022 $ (3,932) $ (2,787) $ 891 $ (5,828) 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, 2022 $ (4,142) $ (3,477) $ 16 $ (7,603) Other comprehensive income (loss) before reclassifications 831 296 (50) 1,077 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 127 127 Amounts reclassified from AOCI 0 490 (82) 408 Other comprehensive income (loss) 831 786 (5) 1,612 Balance as of June 30, 2023 $ (3,311) $ (2,691) $ 11 $ (5,991) 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 Six Months Ended June 30, June 30, AOCI Components Location 2022 2023 2022 2023 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (299) $ (254) $ (489) $ (628) Benefit (provision) for income taxes 66 56 108 138 Net of income tax (233) (198) (381) (490) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue 400 (2) 697 86 Interest rate contracts Other income (expense), net 1 1 3 3 Benefit (provision) for income taxes (65) 6 (115) (7) Net of income tax 336 5 585 82 Total amount reclassified, net of income tax $ 103 $ (193) $ 204 $ (408) Other Income (Expense), Net Components of OI&E were as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Interest income $ 486 $ 892 $ 900 $ 1,689 Interest expense (1) (83) (43) (166) (123) Foreign currency exchange gain (loss), net (260) (268) (333) (478) Gain (loss) on debt securities, net (790) (304) (1,157) (597) Gain (loss) on equity securities, net (251) (205) (1,321) 172 Performance fees 318 5 551 123 Income (loss) and impairment from equity method investments, net (118) (106) (207) (157) Other 259 94 134 226 Other income (expense), net $ (439) $ 65 $ (1,599) $ 855 (1) Interest expense is net of interest capitalized of $37 million and $47 million for the three months ended June 30, 2022 and 2023, respectively, and $71 million and $87 million for the six months ended June 30, 2022 and 2023, respectively. |
Workforce Reduction and Other I
Workforce Reduction and Other Initiatives | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Workforce Reduction and Other Initiatives | Workforce Reduction and Other Initiatives We have a company-wide effort underway to re-engineer our cost base. As part of this program, in January 2023, we announced a reduction of our workforce. A s a result, total employee severance and related charges recorded during the six months ended June 30, 2023 were $2.0 billion, of which $2.0 billion and $1 million were recorded during the three months ended March 31, 2023 and June 30, 2023, respectively. In addition, we are taking actions to optimize our global office space. As a result, total charges recorded during the six months ended June 30, 2023 were $633 million, of which $564 million and $69 million were recorded during the three months ended March 31, 2023 and June 30, 2023, respectively. We may incur additional charges in the future as we further evaluate our real estate needs. These severance and office space charges are included within our consolidated statements of income as follows (in millions): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Severance and Related (1) Office Space Total Severance and Related (1) Office Space Total Cost of revenues $ (1) $ 20 $ 19 $ 460 $ 240 $ 700 Research and development (3) 14 11 832 261 1,093 Sales and marketing (1) 23 22 444 58 502 General and administrative 6 12 18 259 74 333 Total charges $ 1 $ 69 $ 70 $ 1,995 $ 633 $ 2,628 (1) Severance includes amounts to be settled in cash, accounted for as one-time involuntary employee termination benefits, and stock based compensation For segment reporting, the substantial majority of these charges are included within unallocated corporate costs in our segment results. For the six months ended June 30, 2023, changes in liabilities resulting from the severance charges and related accruals were as follows (in millions): Severance and Related Balance as of December 31, 2022 $ 0 Charges (1) 1,566 Cash payments (1,423) Balance as of June 30, 2023 (2) $ 143 (1) Excludes non-cash stock-based compensation of $429 million. (2) Included in Accrued compensation and benefits on the consolidated balance sheets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
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 six months ended June 30, 2023 were as follows (in millions): Google Services Google Cloud Other Bets Total Balance as of December 31, 2022 $ 20,847 $ 7,205 $ 908 $ 28,960 Acquisitions 240 0 0 240 Foreign currency translation and other adjustments 37 1 (28) 10 Balance as of June 30, 2023 $ 21,124 $ 7,206 $ 880 $ 29,210 Other Intangible Assets Information regarding intangible assets was as follows (in millions): As of December 31, 2022 As of June 30, 2023 Gross Accumulated Net Gross Accumulated Net Patents and developed technology $ 1,164 $ 354 $ 810 $ 1,181 $ 420 $ 761 Customer relationships 862 235 627 884 306 578 Trade names and other 527 120 407 536 145 391 Total definite-lived intangible assets 2,553 709 1,844 2,601 871 1,730 Indefinite-lived intangible assets 240 0 240 236 0 236 Total intangible assets $ 2,793 $ 709 $ 2,084 $ 2,837 $ 871 $ 1,966 Amortization expense relating to intangible assets was $201 million and $118 million for the three months ended June 30, 2022 and 2023, respectively, and $392 million and $244 million for the six months ended June 30, 2022 and 2023, respectively. Expected amortization expense of definite-lived intangible assets held as of June 30, 2023 was as follows (in millions): Remainder of 2023 $ 239 2024 468 2025 338 2026 261 2027 176 Thereafter 248 Total $ 1,730 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments We have content licensing agreements with future fixed or minimum guaranteed commitments of $11.5 billion as of June 30, 2023, of which the majority is paid over seven years ending in the first quarter of 2030. 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, distribution partners, customers of Google Cloud offerings, lessors, and service providers with respect to certain matters. We have agreed to defend and/or 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, 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 June 30, 2023, we did not have any material indemnification claims that were probable or reasonably possible. Legal Matters 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. Certain outstanding matters seek speculative, substantial or indeterminate monetary amounts, substantial changes to our business practices and products, or structural remedies. Significant judgment is required to determine both the likelihood of there being a loss and the estimated amount of a loss related to such matters, and we may be unable to estimate the reasonably possible loss or range of losses. The outcomes of outstanding legal matters are inherently unpredictable and subject to significant uncertainties, and could, either individually or in aggregate, have a material adverse effect. We expense legal fees in the period in which they are incurred. 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, and on October 29, 2018, we implemented changes to certain of our Android distribution practices. On September 14, 2022, the General Court reduced the fine from €4.3 billion to €4.1 billion. We subsequently filed an appeal with the European Court of Justice. In 2018, we recognized a charge of $5.1 billion for the fine, which we reduced by $217 million in 2022. 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. From time to time we are subject to formal and informal inquiries and investigations on various competition matters by regulatory authorities in the U.S., Europe, and other jurisdictions globally. For example: • 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 in the U.S. District Court for the District of Columbia on October 20, 2020 alleging that Google violated U.S. antitrust laws relating to Search and Search advertising, and a trial is scheduled for September 2023. Further, in June 2022, the Australian Competition and Consumer Commission (ACCC) and the United Kingdom's Competition and Markets Authority (CMA) each opened an investigation into Search distribution practices. • On December 16, 2020, a number of state Attorneys General filed an antitrust complaint 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. Additionally, on January 24, 2023, the DOJ, along with a number of state Attorneys General, filed an antitrust complaint in the U.S. District Court for the Eastern District of Virginia alleging that Google’s digital advertising technology products violate U.S. antitrust laws, and on April 17, 2023, a number of additional state Attorneys General joined the complaint. The EC, the CMA, and the ACCC each opened a formal investigation into Google's advertising technology business practices on June 22, 2021, May 25, 2022, and June 29, 2022, respectively. On June 14, 2023, the EC issued a Statement of Objections (SO) informing Google of its preliminary view that Google violated European antitrust laws relating to its advertising technology. We will respond to the SO by December 31, 2023. • On July 7, 2021, a number of state Attorneys General filed an antitrust complaint 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. In May 2022, the EC and the CMA each opened investigations into Google Play’s business practices. Korean regulators are investigating Google Play's billing practices, most recently opening a formal review in May 2022 of Google's compliance with the new app store billing regulations. We believe these complaints are without merit and will defend ourselves vigorously. 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 subject to claims, lawsuits, regulatory and government investigations, other proceedings, and consent orders involving competition, intellectual property, data privacy and security, 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 lawsuits ongoing in multiple jurisdictions. We also periodically have data incidents that we report to relevant regulators as required by law. Such claims, lawsuits, regulatory and government investigations, other proceedings, and consent orders could result in substantial fines and penalties, injunctive relief, ongoing monitoring and auditing 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 relating to Russia. For example, civil judgments that include compounding penalties have been imposed upon us in connection with disputes regarding the termination of accounts, including those of sanctioned parties. We do not believe these ongoing legal matters will have a material adverse effect. 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 | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchases In the three and six months ended June 30, 2023, we repurchased $15.1 billion and $30.2 billion, respectively, of Alphabet's Class A and Class C shares. In April 2022, the Board of Directors of Alphabet authorized the company to repurchase up to $70.0 billion of its Class A and Class C shares. The repurchases from the April 2022 authorization were completed during the second quarter of 2023. In April 2023, 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. As of June 30, 2023, $68.1 billion remains available for Class A and Class C share repurchases. The follo wing table presents Class A and Class C shares repurchased and subsequently retired (in millions): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Shares Amount Shares Amount Class A share repurchases 17 $ 1,908 37 $ 3,919 Class C share repurchases 114 13,206 251 26,319 Total share repurchases (1) 131 $ 15,114 288 $ 30,238 (1) Shares repurchased include unsettled repurchases as of June 30, 2023. Class A and Class C shares are repurchased 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. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2023 | |
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 per share amounts): Three Months Ended June 30, 2022 2023 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 7,329 $ 1,081 $ 7,592 $ 8,600 $ 1,275 $ 8,493 Denominator Number of shares used in per share computation 6,015 887 6,231 5,931 879 5,858 Basic net income per share $ 1.22 $ 1.22 $ 1.22 $ 1.45 $ 1.45 $ 1.45 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 7,329 $ 1,081 $ 7,592 $ 8,600 $ 1,275 $ 8,493 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,081 0 0 1,275 0 0 Reallocation of undistributed earnings (68) (9) 68 (75) (10) 75 Allocation of undistributed earnings $ 8,342 $ 1,072 $ 7,660 $ 9,800 $ 1,265 $ 8,568 Denominator Number of shares used in basic computation 6,015 887 6,231 5,931 879 5,858 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A shares outstanding 887 0 0 879 0 0 Restricted stock units and other contingently issuable shares 0 0 106 0 0 96 Number of shares used in per share computation 6,902 887 6,337 6,810 879 5,954 Diluted net income per share $ 1.21 $ 1.21 $ 1.21 $ 1.44 $ 1.44 $ 1.44 Six Months Ended June 30, 2022 2023 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 14,812 $ 2,190 $ 15,436 $ 15,597 $ 2,311 $ 15,511 Denominator Number of shares used in per share computation 6,013 889 6,266 5,939 880 5,906 Basic net income per share $ 2.46 $ 2.46 $ 2.46 $ 2.63 $ 2.63 $ 2.63 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 14,812 $ 2,190 $ 15,436 $ 15,597 $ 2,311 $ 15,511 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 2,190 0 0 2,311 0 0 Reallocation of undistributed earnings (162) (21) 162 (96) (12) 96 Allocation of undistributed earnings $ 16,840 $ 2,169 $ 15,598 $ 17,812 $ 2,299 $ 15,607 Denominator Number of shares used in basic computation 6,013 889 6,266 5,939 880 5,906 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A shares outstanding 889 0 0 880 0 0 Restricted stock units and other contingently issuable shares 0 0 127 0 0 69 Number of shares used in per share computation 6,902 889 6,393 6,819 880 5,975 Diluted net income per share $ 2.44 $ 2.44 $ 2.44 $ 2.61 $ 2.61 $ 2.61 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 | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Compensation Plans | Compensation Plans Stock-Based Compensation For the three months ended June 30, 2022 and 2023, total stock-based compensation (SBC) expense was $4.9 billion and $5.4 billion, including amounts associated with awards we expect to settle in Alphabet stock of $4.6 billion and $5.6 billion, respectively. For the six months ended June 30, 2022 and 2023, total SBC expense was $9.4 billion and $10.7 billion, including amounts associated with awards we expect to settle in Alphabet stock of $9.0 billion and $10.7 billion, respectively. During the six months ended June 30, 2023, total SBC expense includes $429 million associated with workforce reduction costs, of which $412 million and $17 million were recorded during the three months ended March 31, 2023 and June 30, 2023 , respectively. See Note 7 for further information. Stock-Based Award Activities The following table summarizes the activities for unvested Alphabet restricted stock units (RSUs) for the six months ended June 30, 2023 (in millions, except per share amounts): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2022 324 $ 107.98 Granted 246 $ 95.30 Vested (109) $ 99.65 Forfeited/canceled (19) $ 108.30 Unvested as of June 30, 2023 442 $ 102.97 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
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 Six Months Ended June 30, June 30, 2022 2023 2022 2023 Income before provision for income taxes $ 19,014 $ 21,903 $ 37,948 $ 40,108 Provision for income taxes $ 3,012 $ 3,535 $ 5,510 $ 6,689 Effective tax rate 15.8 % 16.1 % 14.5 % 16.7 % 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. The total amount of gross unrecognized tax benefits was $7.1 billion and $8.8 billion as of December 31, 2022 and June 30, 2023, respectively, of which $5.3 billion and $6.7 billion, if recognized, |
Information about Segments and
Information about Segments and Geographic Areas | 6 Months Ended |
Jun. 30, 2023 | |
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, and hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV. • Google Cloud includes 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 communication and 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. These costs, including the associated depreciation and impairment, are allocated to operating segments as a service cost generally based on usage, headcount, or revenue. Reflecting DeepMind's increasing collaboration with Google Services, Google Cloud, and Other Bets, beginning in the first quarter of 2023 DeepMind is reported as part of Alphabet's unallocated corporate costs instead of within Other Bets. Additionally, beginning in the first quarter of 2023, we updated and simplified our cost allocation methodologies to provide our business leaders with increased transparency for decision-making. Prior periods have been recast to conform to the current presentation. As announced on April 20, 2023, we brought together part of Google Research (the Brain team) and DeepMind to significantly accelerate our progress in artificial intelligence (AI). The group, called Google DeepMind, is reported within Alphabet's unallocated corporate costs prospectively beginning in the second quarter of 2023. Previously, the Brain team was included within Google Services. Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include AI-focused shared R&D activities; corporate initiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements. Charges associated with reductions in our workforce and office space announced in January 2023 are not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments. Our operating segments are not evaluated using asset information. The following table presents information about our segments (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Revenues: Google Services $ 62,841 $ 66,285 $ 124,313 $ 128,246 Google Cloud 6,276 8,031 12,097 15,485 Other Bets 193 285 633 573 Hedging gains (losses) 375 3 653 87 Total revenues $ 69,685 $ 74,604 $ 137,696 $ 144,391 Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Operating income (loss): Google Services $ 21,621 $ 23,454 $ 43,594 $ 45,191 Google Cloud (590) 395 (1,296) 586 Other Bets (1,339) (813) (2,174) (2,038) Corporate costs, unallocated (239) (1,198) (577) (4,486) Total income from operations $ 19,453 $ 21,838 $ 39,547 $ 39,253 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 $ 93,565 $ 99,714 International 33,484 35,963 Total long-lived assets $ 127,049 $ 135,677 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 18,368 | $ 16,002 | $ 33,419 | $ 32,438 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Amie Thuener O-Toole [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Amie Thuener O’Toole, Vice President, Corporate Controller and Principal Accounting Officer, adopted a new trading plan on May 31, 2023 (with the first trade under the new plan scheduled for September 5, 2023). The trading plan will be effective until September 9, 2024 to sell an aggregate of (i) 2,904 shares of Class C Capital Stock, plus (ii) 50% of the (net) shares resulting from the vesting of 32,093 additional (gross) Class C Capital Stock during the plan period (net shares are net of tax withholding). |
Name | Amie Thuener O’Toole |
Title | Vice President, Corporate Controller and Principal Accounting Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 31, 2023 |
Arrangement Duration | 467 days |
Kent Walker [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Kent Walker, President, Global Affairs, Chief Legal Officer and Secretary, effected a trading plan modification by terminating a trading plan on May 30, 2023, originally adopted on May 28, 2022, and adopting a new trading plan on May 31, 2023 (with the first trade under the new plan scheduled for September 5, 2023). The trading plan will be effective until February 27, 2026 to sell 100% of the (net) shares resulting from the vesting of 511,048 (gross) Class C Capital Stock during the plan period (net shares are net of tax withholding)*. |
Name | Kent Walker |
Title | President, Global Affairs, Chief Legal Officer and Secretary |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 31, 2023 |
Rule 10b5-1 Arrangement Terminated | false |
Arrangement Duration | 1003 days |
Aggregate Available | 511,048 |
Amie Thuener O'Toole Trading Arrangement. Tranche One [Member] | Amie Thuener O-Toole [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 2,904 |
Amie Thuener O'Toole Trading Arrangement, Tranche Two [Member] | Amie Thuener O-Toole [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 32,093 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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. We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide enterprise customers with infrastructure and platform services as well as communication and collaboration tools; sales of other products and services, such as apps and in-app purchases, and hardware; and fees received for subscription-based products. |
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. 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, 2023. 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, 2022 filed with the SEC. |
Revenue Backlog and Deferred Revenues | Revenue Backlog As of June 30, 2023, we had $60.6 billion of remaining performance obligations (“revenue backlog”), primarily related to Google Cloud. Our revenue backlog represents commitments in customer contracts for future services that have not yet been recognized as revenue. The amount and timing of revenue recognition for these commitments is largely driven by our ability to deliver in accordance with relevant contract terms and when our customers utilize services, which could affect our estimate of revenue backlog and when we expect to recognize such as revenue. We expect to recognize approximately half of the revenue backlog as revenues over t he next 24 months with the remaining to be recognized thereafter. 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. Deferred Revenues |
Fair Value Measurements and Financial Instruments | Cash, cash equivalents, and marketable equity securities are measured at fair value and classified within Level 1 and Level 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. Debt securities are measured at fair value and classified 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. |
Consolidated VIEs | Consolidated VIEsWe 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, and hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV. • Google Cloud includes 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 communication and 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. These costs, including the associated depreciation and impairment, are allocated to operating segments as a service cost generally based on usage, headcount, or revenue. Reflecting DeepMind's increasing collaboration with Google Services, Google Cloud, and Other Bets, beginning in the first quarter of 2023 DeepMind is reported as part of Alphabet's unallocated corporate costs instead of within Other Bets. Additionally, beginning in the first quarter of 2023, we updated and simplified our cost allocation methodologies to provide our business leaders with increased transparency for decision-making. Prior periods have been recast to conform to the current presentation. As announced on April 20, 2023, we brought together part of Google Research (the Brain team) and DeepMind to significantly accelerate our progress in artificial intelligence (AI). The group, called Google DeepMind, is reported within Alphabet's unallocated corporate costs prospectively beginning in the second quarter of 2023. Previously, the Brain team was included within Google Services. Certain costs are not allocated to our segments because they represent Alphabet-level activities. These costs primarily include AI-focused shared R&D activities; corporate initiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and legal costs, including certain fines and settlements. Charges associated with reductions in our workforce and office space announced in January 2023 are not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not allocated to our segments. Our operating segments are not evaluated using asset information. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by revenue source | The following table presents revenues disaggregated by type (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Google Search & other $ 40,689 $ 42,628 $ 80,307 $ 82,987 YouTube ads 7,340 7,665 14,209 14,358 Google Network 8,259 7,850 16,433 15,346 Google advertising 56,288 58,143 110,949 112,691 Google other 6,553 8,142 13,364 15,555 Google Services total 62,841 66,285 124,313 128,246 Google Cloud 6,276 8,031 12,097 15,485 Other Bets 193 285 633 573 Hedging gains (losses) 375 3 653 87 Total revenues $ 69,685 $ 74,604 $ 137,696 $ 144,391 |
Revenue by geographic location | The following table presents revenues disaggregated by geography, based on the addresses of our customers (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 United States $ 32,727 47 % $ 35,073 47 % $ 64,460 47 % $ 67,937 47 % EMEA (1) 20,533 29 22,289 30 40,850 30 43,367 30 APAC (1) 11,710 17 12,728 17 23,551 17 24,409 17 Other Americas (1) 4,340 6 4,511 6 8,182 6 8,591 6 Hedging gains (losses) 375 1 3 0 653 0 87 0 Total revenues $ 69,685 100 % $ 74,604 100 % $ 137,696 100 % $ 144,391 100 % (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) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Marketable equity securities | The following tables summarize our cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions): As of December 31, 2022 Fair Value Hierarchy Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Fair value changes recorded in other comprehensive income Time deposits Level 2 $ 5,297 $ 0 $ 0 $ 5,297 $ 5,293 $ 4 Government bonds Level 2 41,036 64 (2,045) 39,055 283 38,772 Corporate debt securities Level 2 28,578 8 (1,569) 27,017 1 27,016 Mortgage-backed and asset-backed securities Level 2 16,176 5 (1,242) 14,939 0 14,939 Total investments with fair value change reflected in other comprehensive income (1) $ 91,087 $ 77 $ (4,856) $ 86,308 $ 5,577 $ 80,731 Fair value adjustments recorded in net income Money market funds Level 1 $ 7,234 $ 7,234 $ 0 Current marketable equity securities (2) Level 1 4,013 0 4,013 Mutual funds Level 2 339 0 339 Government bonds Level 2 1,877 440 1,437 Corporate debt securities Level 2 3,744 65 3,679 Mortgage-backed and asset-backed securities Level 2 1,686 2 1,684 Total investments with fair value change recorded in net income $ 18,893 $ 7,741 $ 11,152 Cash 0 8,561 0 Total $ 91,087 $ 77 $ (4,856) $ 105,201 $ 21,879 $ 91,883 (1) Represents gross unrealized gains and losses for debt securities recorded to accumulated other comprehensive income (AOCI). (2) The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $803 million as of December 31, 2022 is included within other non-current assets. As of June 30, 2023 Fair Value Hierarchy Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities Fair value changes recorded in other comprehensive income Time deposits Level 2 $ 2,913 $ 0 $ 0 $ 2,913 $ 2,913 $ 0 Government bonds Level 2 45,339 49 (1,588) 43,800 2,481 41,319 Corporate debt securities Level 2 23,480 8 (1,162) 22,326 0 22,326 Mortgage-backed and asset-backed securities Level 2 18,047 4 (1,092) 16,959 0 16,959 Total investments with fair value change reflected in other comprehensive income (1) $ 89,779 $ 61 $ (3,842) $ 85,998 $ 5,394 $ 80,604 Fair value adjustments recorded in net income Money market funds Level 1 $ 9,472 $ 9,472 $ 0 Current marketable equity securities (2) Level 1 4,088 0 4,088 Mutual funds Level 2 315 0 315 Government bonds Level 2 2,158 546 1,612 Corporate debt securities Level 2 3,831 2 3,829 Mortgage-backed and asset-backed securities Level 2 1,955 0 1,955 Total investments with fair value change recorded in net income $ 21,819 $ 10,020 $ 11,799 Cash 0 10,515 0 Total $ 89,779 $ 61 $ (3,842) $ 107,817 $ 25,929 $ 92,403 (1) Represents gross unrealized gains and losses for debt securities recorded to AOCI. |
Investments by maturity date | The following table summarizes the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates (in millions): As of Due in 1 year or less $ 15,403 Due in 1 year through 5 years 43,749 Due in 5 years through 10 years 15,162 Due after 10 years 13,686 Total $ 88,000 |
Fair value of gross unrealized losses recorded to AOCI | 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, 2022 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 21,039 $ (1,004) $ 13,438 $ (1,041) $ 34,477 $ (2,045) Corporate debt securities 11,228 (440) 15,125 (1,052) 26,353 (1,492) Mortgage-backed and asset-backed securities 7,725 (585) 6,964 (657) 14,689 (1,242) Total $ 39,992 $ (2,029) $ 35,527 $ (2,750) $ 75,519 $ (4,779) As of June 30, 2023 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 19,195 $ (580) $ 13,976 $ (1,008) $ 33,171 $ (1,588) Corporate debt securities 3,915 (69) 17,573 (1,008) 21,488 (1,077) Mortgage-backed and asset-backed securities 6,352 (153) 10,095 (939) 16,447 (1,092) Total $ 29,462 $ (802) $ 41,644 $ (2,955) $ 71,106 $ (3,757) |
Available-for-sale debt securities | The following table summarizes gains and losses for debt securities, reflected as a component of other income (expense), net (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Unrealized gain (loss) on fair value option debt securities $ (367) $ (24) $ (569) $ 121 Gross realized gain on debt securities 29 28 69 85 Gross realized loss on debt securities (368) (303) (639) (795) (Increase) decrease in allowance for credit losses (84) (5) (18) (8) Total gain (loss) on debt securities recognized in other income (expense), net $ (790) $ (304) $ (1,157) $ (597) |
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, 2022 As of June 30, 2023 Marketable Equity Securities Non-Marketable Equity Securities Total Marketable Equity Securities Non-Marketable Equity Securities Total Total initial cost $ 5,764 $ 16,157 $ 21,921 $ 5,647 $ 17,261 $ 22,908 Cumulative net gain (loss) (1) (608) 12,372 11,764 (352) 11,868 11,516 Carrying value $ 5,156 $ 28,529 $ 33,685 $ 5,295 $ 29,129 $ 34,424 (1) Non-marketable equity securities cumulative net gain (loss) is comprised of $16.8 billion gains and $4.5 billion losses (including impairments) as of December 31, 2022 and $17.8 billion gains and $5.9 billion losses (including impairments) as of June 30, 2023. |
Gains and losses on equity securities | Gains and losses (including impairments), net, for marketable and non-marketable equity securities included in other income (expense), net are summarized below (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Realized net gain (loss) on equity securities sold during the period $ 26 $ 87 $ (230) $ 292 Unrealized net gain (loss) on marketable equity securities (1,188) 397 (2,462) 349 Unrealized net gain (loss) on non-marketable equity securities (1) 911 (689) 1,371 (469) Total gain (loss) on equity securities in other income (expense), net $ (251) $ (205) $ (1,321) $ 172 (1) Unrealized gain (loss) on non-marketable equity securities accounted for under the measurement alternative is comprised of $2.2 billion and $75 million of upward adjustments and $1.3 billion and $789 million of downward adjustments (including impairments) for three months ended June 30, 2022 and 2023, respectively, and $3.0 billion and $989 million of upward adjustments and $1.6 billion and $1.5 billion of downward adjustments (including impairments) for the six months ended June 30, 2022 and 2023, respectively. In the table above, realized 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 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 sold during the period. While these net gains (losses) 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 (losses) on the securities sold during the period. Cumulative net gains (losses) 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 Six Months Ended June 30, June 30, 2022 2023 2022 2023 Total sale price $ 645 $ 427 $ 1,335 $ 739 Total initial cost 168 156 428 367 Cumulative net gain (loss) $ 477 $ 271 $ 907 $ 372 |
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, 2022 As of June 30, 2023 Derivatives designated as hedging instruments: Foreign exchange contracts Cash flow hedges $ 15,972 $ 15,823 Fair value hedges $ 2,117 $ 1,472 Net investment hedges $ 8,751 $ 9,371 Derivatives not designated as hedging instruments: Foreign exchange contracts $ 34,979 $ 34,185 Other contracts $ 7,932 $ 9,133 |
Schedule of derivative instruments | The fair values of outstanding derivative instruments were as follows (in millions): As of December 31, 2022 As of June 30, 2023 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Derivatives designated as hedging instruments: Foreign exchange contracts $ 271 $ 556 $ 228 $ 201 Derivatives not designated as hedging instruments: Foreign exchange contracts 365 207 130 136 Other contracts 40 47 39 67 Total derivatives not designated as hedging instruments 405 254 169 203 Total $ 676 $ 810 $ 397 $ 404 (1) Derivative assets are recorded as other current and non-current assets in the Consolidated Balance Sheets. (2) Derivative liabilities are recorded as accrued expenses and other liabilities, current and non-current in the Consolidated Balance Sheets. |
Schedule of gain (loss) on derivative instruments | The gains (losses) on derivatives in cash flow hedging and net investment hedging relationships recognized in other comprehensiv e income (OCI) are summarized below (in millions): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Derivatives in cash flow hedging relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ 1,131 $ 77 $ 1,266 $ (61) Amount excluded from the assessment of effectiveness (39) 80 (54) 127 Derivatives in net investment hedging relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 509 (59) 658 (274) Total $ 1,601 $ 98 $ 1,870 $ (208) The table below presents the gains (losses) of our derivatives on the Consolidated Statements of Income: (in millions): Gains (Losses) Recognized in Income Three Months Ended June 30, 2022 2023 Revenues Other income (expense), net Revenues Other income (expense), net Total amounts in the Consolidated Statements of Income $ 69,685 $ (439) $ 74,604 $ 65 Effect of cash flow hedges: Foreign exchange contracts Amount reclassified from AOCI to income $ 400 $ 0 $ (2) $ 0 Amount excluded from the assessment of effectiveness (amortized) (24) 0 6 0 Effect of fair value hedges: Foreign exchange contracts Hedged items 0 (136) 0 22 Derivatives designated as hedging instruments 0 136 0 (22) Amount excluded from the assessment of effectiveness 0 2 0 5 Effect of net investment hedges: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 28 0 72 Effect of non designated hedges: Foreign exchange contracts 0 (149) 0 124 Other contracts 0 86 0 (4) Total gains (losses) $ 376 $ (33) $ 4 $ 197 Gains (Losses) Recognized in Income Six Months Ended June 30, 2022 2023 Revenues Other income (expense), net Revenues Other income (expense), net Total amounts in the Consolidated Statements of Income $ 137,696 $ (1,599) $ 144,391 $ 855 Effect of cash flow hedges: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ 697 $ 0 $ 86 $ 0 Amount excluded from the assessment of effectiveness (amortized) (43) 0 2 0 Effect of fair value hedges: Foreign exchange contracts Hedged items 0 (123) 0 54 Derivatives designated as hedging instruments 0 124 0 (54) Amount excluded from the assessment of effectiveness 0 3 0 10 Effect of net investment hedges: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 40 0 123 Effect of non designated hedges: Foreign exchange contracts 0 (396) 0 154 Other Contracts 0 124 0 (1) Total gains (losses) $ 654 $ (228) $ 88 $ 286 |
Offsetting assets | 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): As of December 31, 2022 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments (1) Cash and Non-Cash Collateral Received or Pledged Net Amounts Derivatives assets $ 760 $ (84) $ 676 $ (463) $ (132) $ 81 Derivatives liabilities $ 894 $ (84) $ 810 $ (463) $ (28) $ 319 As of June 30, 2023 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments (1) Cash and Non-Cash Collateral Received or Pledged Net Amounts Derivatives assets $ 444 $ (47) $ 397 $ (138) $ (226) $ 33 Derivatives liabilities $ 451 $ (47) $ 404 $ (138) $ (34) $ 232 (1) The balances as of December 31, 2022 and June 30, 2023 were related to derivatives allowed to be net settled in accordance with our master netting agreements. |
Offsetting liabilities | 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): As of December 31, 2022 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments (1) Cash and Non-Cash Collateral Received or Pledged Net Amounts Derivatives assets $ 760 $ (84) $ 676 $ (463) $ (132) $ 81 Derivatives liabilities $ 894 $ (84) $ 810 $ (463) $ (28) $ 319 As of June 30, 2023 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Financial Instruments (1) Cash and Non-Cash Collateral Received or Pledged Net Amounts Derivatives assets $ 444 $ (47) $ 397 $ (138) $ (226) $ 33 Derivatives liabilities $ 451 $ (47) $ 404 $ (138) $ (34) $ 232 (1) The balances as of December 31, 2022 and June 30, 2023 were related to derivatives allowed to be net settled in accordance with our master netting agreements. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2022 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) 2,142 2,159 Total debt 15,142 15,159 Unamortized discount and debt issuance costs (143) (137) Less: Current portion of long-term notes (2) 0 (999) Less: Current portion future finance lease payments, net and other current debt (1)(2) (298) (318) Total long-term debt $ 14,701 $ 13,705 (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 for further details. |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Components Disclosure [Abstract] | |
Property and equipment, net | Property and equipment, net, co nsisted of the following (in millions): As of As of Land and buildings $ 66,897 $ 68,890 Information technology assets 66,267 71,592 Construction in progress 27,657 32,019 Leasehold improvements 10,575 11,286 Furniture and fixtures 314 338 Property and equipment, gross 171,710 184,125 Less: accumulated depreciation (59,042) (62,917) Property and equipment, net $ 112,668 $ 121,208 |
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) $ 9,106 $ 9,446 Income taxes payable, net (2) 1,632 10,870 Accrued customer liabilities 3,619 3,498 Accrued purchases of property and equipment 3,019 3,380 Current operating lease liabilities 2,477 2,663 Other accrued expenses and current liabilities 18,013 19,443 Accrued expenses and other current liabilities $ 37,866 $ 49,300 (1) While each EC decision is under appeal, the fines are included in accrued expenses and other current liabilities on our Consolidated Balance Sheets, as we provided bank guarantees (in lieu of a cash payment) for the fines. Amounts include the effects of foreign exchange and interest. See Note 9 for further details. (2) Income taxes payable, net as of the quarter ended June 30, 2023 includes balances related to the 2023 Internal Revenue Service (IRS) payment deferral relief made available to taxpayers headquartered in designated counties in California. |
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, 2021 $ (2,306) $ 236 $ 447 $ (1,623) Other comprehensive income (loss) before reclassifications (1,626) (3,404) 1,083 (3,947) Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (54) (54) Amounts reclassified from AOCI 0 381 (585) (204) Other comprehensive income (loss) (1,626) (3,023) 444 (4,205) Balance as of June 30, 2022 $ (3,932) $ (2,787) $ 891 $ (5,828) 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, 2022 $ (4,142) $ (3,477) $ 16 $ (7,603) Other comprehensive income (loss) before reclassifications 831 296 (50) 1,077 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 127 127 Amounts reclassified from AOCI 0 490 (82) 408 Other comprehensive income (loss) 831 786 (5) 1,612 Balance as of June 30, 2023 $ (3,311) $ (2,691) $ 11 $ (5,991) |
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 Six Months Ended June 30, June 30, AOCI Components Location 2022 2023 2022 2023 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (299) $ (254) $ (489) $ (628) Benefit (provision) for income taxes 66 56 108 138 Net of income tax (233) (198) (381) (490) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue 400 (2) 697 86 Interest rate contracts Other income (expense), net 1 1 3 3 Benefit (provision) for income taxes (65) 6 (115) (7) Net of income tax 336 5 585 82 Total amount reclassified, net of income tax $ 103 $ (193) $ 204 $ (408) |
Schedule of other income (expense), net | Components of OI&E were as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Interest income $ 486 $ 892 $ 900 $ 1,689 Interest expense (1) (83) (43) (166) (123) Foreign currency exchange gain (loss), net (260) (268) (333) (478) Gain (loss) on debt securities, net (790) (304) (1,157) (597) Gain (loss) on equity securities, net (251) (205) (1,321) 172 Performance fees 318 5 551 123 Income (loss) and impairment from equity method investments, net (118) (106) (207) (157) Other 259 94 134 226 Other income (expense), net $ (439) $ 65 $ (1,599) $ 855 (1) Interest expense is net of interest capitalized of $37 million and $47 million for the three months ended June 30, 2022 and 2023, respectively, and $71 million and $87 million for the six months ended June 30, 2022 and 2023, respectively. |
Workforce Reduction and Other_2
Workforce Reduction and Other Initiatives (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring charges included within the statement of income | These severance and office space charges are included within our consolidated statements of income as follows (in millions): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Severance and Related (1) Office Space Total Severance and Related (1) Office Space Total Cost of revenues $ (1) $ 20 $ 19 $ 460 $ 240 $ 700 Research and development (3) 14 11 832 261 1,093 Sales and marketing (1) 23 22 444 58 502 General and administrative 6 12 18 259 74 333 Total charges $ 1 $ 69 $ 70 $ 1,995 $ 633 $ 2,628 (1) Severance includes amounts to be settled in cash, accounted for as one-time involuntary employee termination benefits, and stock based compensation |
Schedule of charges in liabilities resulting from workforce reduction and other accruals | For the six months ended June 30, 2023, changes in liabilities resulting from the severance charges and related accruals were as follows (in millions): Severance and Related Balance as of December 31, 2022 $ 0 Charges (1) 1,566 Cash payments (1,423) Balance as of June 30, 2023 (2) $ 143 (1) Excludes non-cash stock-based compensation of $429 million. (2) Included in Accrued compensation and benefits on the consolidated balance sheets. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of goodwill | Changes in the carrying amount of goodwill for the six months ended June 30, 2023 were as follows (in millions): Google Services Google Cloud Other Bets Total Balance as of December 31, 2022 $ 20,847 $ 7,205 $ 908 $ 28,960 Acquisitions 240 0 0 240 Foreign currency translation and other adjustments 37 1 (28) 10 Balance as of June 30, 2023 $ 21,124 $ 7,206 $ 880 $ 29,210 |
Information regarding purchased intangible assets | Information regarding intangible assets was as follows (in millions): As of December 31, 2022 As of June 30, 2023 Gross Accumulated Net Gross Accumulated Net Patents and developed technology $ 1,164 $ 354 $ 810 $ 1,181 $ 420 $ 761 Customer relationships 862 235 627 884 306 578 Trade names and other 527 120 407 536 145 391 Total definite-lived intangible assets 2,553 709 1,844 2,601 871 1,730 Indefinite-lived intangible assets 240 0 240 236 0 236 Total intangible assets $ 2,793 $ 709 $ 2,084 $ 2,837 $ 871 $ 1,966 |
Expected amortization expense related to purchased intangible assets | Expected amortization expense of definite-lived intangible assets held as of June 30, 2023 was as follows (in millions): Remainder of 2023 $ 239 2024 468 2025 338 2026 261 2027 176 Thereafter 248 Total $ 1,730 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of shares repurchased | The follo wing table presents Class A and Class C shares repurchased and subsequently retired (in millions): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Shares Amount Shares Amount Class A share repurchases 17 $ 1,908 37 $ 3,919 Class C share repurchases 114 13,206 251 26,319 Total share repurchases (1) 131 $ 15,114 288 $ 30,238 (1) Shares repurchased include unsettled repurchases as of June 30, 2023. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 per share amounts): Three Months Ended June 30, 2022 2023 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 7,329 $ 1,081 $ 7,592 $ 8,600 $ 1,275 $ 8,493 Denominator Number of shares used in per share computation 6,015 887 6,231 5,931 879 5,858 Basic net income per share $ 1.22 $ 1.22 $ 1.22 $ 1.45 $ 1.45 $ 1.45 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 7,329 $ 1,081 $ 7,592 $ 8,600 $ 1,275 $ 8,493 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,081 0 0 1,275 0 0 Reallocation of undistributed earnings (68) (9) 68 (75) (10) 75 Allocation of undistributed earnings $ 8,342 $ 1,072 $ 7,660 $ 9,800 $ 1,265 $ 8,568 Denominator Number of shares used in basic computation 6,015 887 6,231 5,931 879 5,858 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A shares outstanding 887 0 0 879 0 0 Restricted stock units and other contingently issuable shares 0 0 106 0 0 96 Number of shares used in per share computation 6,902 887 6,337 6,810 879 5,954 Diluted net income per share $ 1.21 $ 1.21 $ 1.21 $ 1.44 $ 1.44 $ 1.44 Six Months Ended June 30, 2022 2023 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 14,812 $ 2,190 $ 15,436 $ 15,597 $ 2,311 $ 15,511 Denominator Number of shares used in per share computation 6,013 889 6,266 5,939 880 5,906 Basic net income per share $ 2.46 $ 2.46 $ 2.46 $ 2.63 $ 2.63 $ 2.63 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 14,812 $ 2,190 $ 15,436 $ 15,597 $ 2,311 $ 15,511 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 2,190 0 0 2,311 0 0 Reallocation of undistributed earnings (162) (21) 162 (96) (12) 96 Allocation of undistributed earnings $ 16,840 $ 2,169 $ 15,598 $ 17,812 $ 2,299 $ 15,607 Denominator Number of shares used in basic computation 6,013 889 6,266 5,939 880 5,906 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A shares outstanding 889 0 0 880 0 0 Restricted stock units and other contingently issuable shares 0 0 127 0 0 69 Number of shares used in per share computation 6,902 889 6,393 6,819 880 5,975 Diluted net income per share $ 2.44 $ 2.44 $ 2.44 $ 2.61 $ 2.61 $ 2.61 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of restricted stock activity | The following table summarizes the activities for unvested Alphabet restricted stock units (RSUs) for the six months ended June 30, 2023 (in millions, except per share amounts): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2022 324 $ 107.98 Granted 246 $ 95.30 Vested (109) $ 99.65 Forfeited/canceled (19) $ 108.30 Unvested as of June 30, 2023 442 $ 102.97 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 Six Months Ended June 30, June 30, 2022 2023 2022 2023 Income before provision for income taxes $ 19,014 $ 21,903 $ 37,948 $ 40,108 Provision for income taxes $ 3,012 $ 3,535 $ 5,510 $ 6,689 Effective tax rate 15.8 % 16.1 % 14.5 % 16.7 % |
Information about Segments an_2
Information about Segments and Geographic Areas (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment information by segment | The following table presents information about our segments (in millions): Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Revenues: Google Services $ 62,841 $ 66,285 $ 124,313 $ 128,246 Google Cloud 6,276 8,031 12,097 15,485 Other Bets 193 285 633 573 Hedging gains (losses) 375 3 653 87 Total revenues $ 69,685 $ 74,604 $ 137,696 $ 144,391 Three Months Ended Six Months Ended June 30, June 30, 2022 2023 2022 2023 Operating income (loss): Google Services $ 21,621 $ 23,454 $ 43,594 $ 45,191 Google Cloud (590) 395 (1,296) 586 Other Bets (1,339) (813) (2,174) (2,038) Corporate costs, unallocated (239) (1,198) (577) (4,486) Total income from operations $ 19,453 $ 21,838 $ 39,547 $ 39,253 |
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 $ 93,565 $ 99,714 International 33,484 35,963 Total long-lived assets $ 127,049 $ 135,677 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jan. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||||||
Net income | $ 18,368 | $ 16,002 | $ 33,419 | $ 32,438 | ||
Basic net income per share (in dollars per share) | $ 1.45 | $ 1.22 | $ 2.63 | $ 2.46 | ||
Diluted net income per share (in dollars per share) | $ 1.44 | $ 1.21 | $ 2.61 | $ 2.44 | ||
Service Life | ||||||
Class of Stock [Line Items] | ||||||
Reduction in depreciation expense | $ 966 | $ 2,000 | ||||
Net income | $ 752 | $ 1,500 | ||||
Basic net income per share (in dollars per share) | $ 0.06 | $ 0.12 | ||||
Diluted net income per share (in dollars per share) | $ 0.06 | $ 0.12 | ||||
Server Equipment | ||||||
Class of Stock [Line Items] | ||||||
Useful life | 6 years | 4 years | ||||
Network Equipment | ||||||
Class of Stock [Line Items] | ||||||
Useful life | 6 years | 5 years |
Revenues - Revenue by Segment (
Revenues - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 74,604 | $ 69,685 | $ 144,391 | $ 137,696 |
Hedging gains (losses) | 3 | 375 | 87 | 653 |
Google Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 66,285 | 62,841 | 128,246 | 124,313 |
Google Services | Google Search & other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 42,628 | 40,689 | 82,987 | 80,307 |
Google Services | YouTube ads | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,665 | 7,340 | 14,358 | 14,209 |
Google Services | Google Network | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,850 | 8,259 | 15,346 | 16,433 |
Google Services | Google advertising | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 58,143 | 56,288 | 112,691 | 110,949 |
Google Services | Google other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,142 | 6,553 | 15,555 | 13,364 |
Google Cloud | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,031 | 6,276 | 15,485 | 12,097 |
Other Bets | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 285 | $ 193 | $ 573 | $ 633 |
Revenues - Revenue by Geographi
Revenues - Revenue by Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 74,604 | $ 69,685 | $ 144,391 | $ 137,696 |
Hedging gains (losses) | 3 | 375 | 87 | 653 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 35,073 | 32,727 | 67,937 | 64,460 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 22,289 | 20,533 | 43,367 | 40,850 |
APAC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 12,728 | 11,710 | 24,409 | 23,551 |
Other Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 4,511 | $ 4,340 | $ 8,591 | $ 8,182 |
Revenue Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 100% | 100% | 100% | |
Revenue Benchmark | Geographic Concentration Risk | United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 47% | 47% | 47% | |
Revenue Benchmark | Geographic Concentration Risk | EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 29% | 30% | 30% | |
Revenue Benchmark | Geographic Concentration Risk | APAC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 17% | 17% | 17% | |
Revenue Benchmark | Geographic Concentration Risk | Other Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 6% | 6% | 6% | |
Revenue Benchmark | Revenue by Geographic Location and Type | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 100% | |||
Revenue Benchmark | Revenue by Geographic Location and Type | Hedging gains (losses) | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 0% | 1% | 0% | 0% |
Revenue Benchmark | Revenue by Geographic Location and Type | United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 47% | |||
Revenue Benchmark | Revenue by Geographic Location and Type | EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 30% | |||
Revenue Benchmark | Revenue by Geographic Location and Type | APAC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 17% | |||
Revenue Benchmark | Revenue by Geographic Location and Type | Other Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of total revenue | 6% |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Billions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue not yet recognized | $ 60.6 | |
Total deferred revenue | $ 4.5 | |
Deferred revenue recognized during period | $ 2.1 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of revenue recognition | 24 months | |
Expected timing of revenue recognition, percentage | 50% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of revenue recognition | ||
Expected timing of revenue recognition, percentage | 50% |
Financial Instruments - Marketa
Financial Instruments - Marketable Securities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Fair Value | $ 107,817 | $ 105,201 |
Marketable securities | 92,403 | 91,883 |
Cash | 10,515 | 8,561 |
Cash and cash equivalents | 25,929 | 21,879 |
Long-term portion of marketable equity securities | 892 | 803 |
Net Income | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Fair Value | 21,819 | 18,893 |
Cash and Cash Equivalents | 10,020 | 7,741 |
Marketable securities | 11,799 | 11,152 |
Level 2 | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 89,779 | 91,087 |
Gross Unrealized Gains | 61 | 77 |
Gross Unrealized Losses | (3,842) | (4,856) |
Level 2 | Other Comprehensive Income (Loss) | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 89,779 | 91,087 |
Gross Unrealized Gains | 61 | 77 |
Gross Unrealized Losses | (3,842) | (4,856) |
Fair Value | 85,998 | 86,308 |
Cash and Cash Equivalents | 5,394 | 5,577 |
Marketable securities | 80,604 | 80,731 |
Level 2 | Time deposits | Other Comprehensive Income (Loss) | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 2,913 | 5,297 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,913 | 5,297 |
Cash and Cash Equivalents | 2,913 | 5,293 |
Marketable securities | 0 | 4 |
Level 2 | Mutual funds | Net Income | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Fair Value | 315 | 339 |
Cash and Cash Equivalents | 0 | 0 |
Marketable securities | 315 | 339 |
Level 2 | Government bonds | Other Comprehensive Income (Loss) | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 45,339 | 41,036 |
Gross Unrealized Gains | 49 | 64 |
Gross Unrealized Losses | (1,588) | (2,045) |
Fair Value | 43,800 | 39,055 |
Cash and Cash Equivalents | 2,481 | 283 |
Marketable securities | 41,319 | 38,772 |
Level 2 | Government bonds | Net Income | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Fair Value | 2,158 | 1,877 |
Cash and Cash Equivalents | 546 | 440 |
Marketable securities | 1,612 | 1,437 |
Level 2 | Corporate debt securities | Other Comprehensive Income (Loss) | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 23,480 | 28,578 |
Gross Unrealized Gains | 8 | 8 |
Gross Unrealized Losses | (1,162) | (1,569) |
Fair Value | 22,326 | 27,017 |
Cash and Cash Equivalents | 0 | 1 |
Marketable securities | 22,326 | 27,016 |
Level 2 | Corporate debt securities | Net Income | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Fair Value | 3,831 | 3,744 |
Cash and Cash Equivalents | 2 | 65 |
Marketable securities | 3,829 | 3,679 |
Level 2 | Mortgage-backed and asset-backed securities | Other Comprehensive Income (Loss) | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 18,047 | 16,176 |
Gross Unrealized Gains | 4 | 5 |
Gross Unrealized Losses | (1,092) | (1,242) |
Fair Value | 16,959 | 14,939 |
Cash and Cash Equivalents | 0 | 0 |
Marketable securities | 16,959 | 14,939 |
Level 2 | Mortgage-backed and asset-backed securities | Net Income | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Fair Value | 1,955 | 1,686 |
Cash and Cash Equivalents | 0 | 2 |
Marketable securities | 1,955 | 1,684 |
Level 1 | Money market funds | Net Income | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Fair Value | 9,472 | 7,234 |
Cash and Cash Equivalents | 9,472 | 7,234 |
Marketable securities | 0 | 0 |
Level 1 | Current marketable equity securities | Net Income | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Fair Value | 4,088 | 4,013 |
Cash and Cash Equivalents | 0 | 0 |
Marketable securities | $ 4,088 | $ 4,013 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financial Instruments and Fair Value [Line Items] | |||||
Non-marketable equity securities | $ 29,129 | $ 29,129 | $ 28,529 | ||
Gross realized gain on debt securities | 28 | $ 29 | 85 | $ 69 | |
Gross realized losses on the sale of our marketable securities | 303 | $ 368 | 795 | $ 639 | |
Equity method investments | 1,500 | 1,500 | $ 1,500 | ||
Foreign currency gain to be reclassified during next 12 months | $ 24 | $ 24 | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets | |||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities | |||
Cash flow hedges | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Foreign exchange option contracts, maximum maturities | 24 months | 24 months | |||
Valuation, Market Approach | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Non-marketable equity securities | $ 1,500 | $ 1,500 |
Financial Instruments - Contrac
Financial Instruments - Contractual Maturity Date of Marketable Debt Securities (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Due in 1 year or less | $ 15,403 |
Due in 1 year through 5 years | 43,749 |
Due in 5 years through 10 years | 15,162 |
Due after 10 years | 13,686 |
Total | $ 88,000 |
Financial Instruments - Gross U
Financial Instruments - Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 29,462 | $ 39,992 |
Less than 12 Months, Unrealized Loss | (802) | (2,029) |
12 Months or Greater, Fair Value | 41,644 | 35,527 |
12 Months or Greater, Unrealized Loss | (2,955) | (2,750) |
Total Fair Value | 71,106 | 75,519 |
Total Unrealized Loss | (3,757) | (4,779) |
Government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 19,195 | 21,039 |
Less than 12 Months, Unrealized Loss | (580) | (1,004) |
12 Months or Greater, Fair Value | 13,976 | 13,438 |
12 Months or Greater, Unrealized Loss | (1,008) | (1,041) |
Total Fair Value | 33,171 | 34,477 |
Total Unrealized Loss | (1,588) | (2,045) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 3,915 | 11,228 |
Less than 12 Months, Unrealized Loss | (69) | (440) |
12 Months or Greater, Fair Value | 17,573 | 15,125 |
12 Months or Greater, Unrealized Loss | (1,008) | (1,052) |
Total Fair Value | 21,488 | 26,353 |
Total Unrealized Loss | (1,077) | (1,492) |
Mortgage-backed and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 6,352 | 7,725 |
Less than 12 Months, Unrealized Loss | (153) | (585) |
12 Months or Greater, Fair Value | 10,095 | 6,964 |
12 Months or Greater, Unrealized Loss | (939) | (657) |
Total Fair Value | 16,447 | 14,689 |
Total Unrealized Loss | $ (1,092) | $ (1,242) |
Financial Instruments - Summary
Financial Instruments - Summary of gains and losses for Debt Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Unrealized gain (loss) on fair value option debt securities | $ (24) | $ (367) | $ 121 | $ (569) |
Gross realized gain on debt securities | 28 | 29 | 85 | 69 |
Gross realized loss on debt securities | (303) | (368) | (795) | (639) |
(Increase) decrease in allowance for credit losses | (5) | (84) | (8) | (18) |
Total gain (loss) on debt securities recognized in other income (expense), net | $ (304) | $ (790) | $ (597) | $ (1,157) |
Financial Instruments - Carryin
Financial Instruments - Carrying Values for Marketable and Non-marketable Equity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Marketable Equity Securities | ||
Total initial cost | $ 5,647 | $ 5,764 |
Cumulative net gain (loss) | (352) | (608) |
Carrying value | 5,295 | 5,156 |
Non-Marketable Equity Securities | ||
Total initial cost | 17,261 | 16,157 |
Cumulative net gain (loss) | 11,868 | 12,372 |
Carrying value | 29,129 | 28,529 |
Total | ||
Total initial cost | 22,908 | 21,921 |
Cumulative net gain (loss) | 11,516 | 11,764 |
Carrying value | 34,424 | 33,685 |
Cumulative net gain of non-marketable securities | 17,800 | 16,800 |
Unrealized loss of non-marketable securities | $ 5,900 | $ 4,500 |
Financial Instruments - Gains a
Financial Instruments - Gains and Losses on Marketable and Non-marketable Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Realized net gain (loss) on equity securities sold during the period | $ 87 | $ 26 | $ 292 | $ (230) |
Unrealized net gain (loss) on marketable equity securities | 397 | (1,188) | 349 | (2,462) |
Unrealized net gain (loss) on non-marketable equity securities | (689) | 911 | (469) | 1,371 |
Gain (loss) on equity securities, net | (205) | (251) | 172 | (1,321) |
Non-marketable securities upward adjustment | 75 | 2,200 | 989 | 3,000 |
Non-marketable securities, downward adjustment | $ 789 | $ 1,300 | $ 1,500 | $ 1,600 |
Financial Instruments - Cumulat
Financial Instruments - Cumulative Net Gains on Equity Securities Sold (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||||
Total sale price | $ 427 | $ 645 | $ 739 | $ 1,335 |
Total initial cost | 156 | 168 | 367 | 428 |
Cumulative net gain (loss) | $ 271 | $ 477 | $ 372 | $ 907 |
Financial Instruments - Gross N
Financial Instruments - Gross Notional Amounts of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Foreign exchange contracts | Derivatives designated as hedging instruments: | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 15,823 | $ 15,972 |
Foreign exchange contracts | Derivatives designated as hedging instruments: | Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 1,472 | 2,117 |
Foreign exchange contracts | Derivatives designated as hedging instruments: | Net investment hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 9,371 | 8,751 |
Foreign exchange contracts | Derivatives not designated as hedging instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 34,185 | 34,979 |
Other contracts | Derivatives not designated as hedging instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 9,133 | $ 7,932 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values of Outstanding Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Assets: | ||
Assets | $ 397 | $ 676 |
Derivative Liabilities: | ||
Liabilities | 404 | 810 |
Derivatives designated as hedging instruments: | Foreign exchange contracts | ||
Derivative Assets: | ||
Assets | 228 | 271 |
Derivative Liabilities: | ||
Liabilities | 201 | 556 |
Derivatives not designated as hedging instruments: | ||
Derivative Assets: | ||
Assets | 169 | 405 |
Derivative Liabilities: | ||
Liabilities | 203 | 254 |
Derivatives not designated as hedging instruments: | Other contracts | ||
Derivative Assets: | ||
Assets | 39 | 40 |
Derivative Liabilities: | ||
Liabilities | 67 | 47 |
Derivatives not designated as hedging instruments: | Foreign exchange contracts | ||
Derivative Assets: | ||
Assets | 130 | 365 |
Derivative Liabilities: | ||
Liabilities | $ 136 | $ 207 |
Financial Instruments - Effect
Financial Instruments - Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign exchange contracts | ||||
Revenues | $ 74,604 | $ 69,685 | $ 144,391 | $ 137,696 |
Other income (expense), net | 65 | (439) | 855 | (1,599) |
Revenues | ||||
Foreign exchange contracts | ||||
Total gains (losses) | 4 | 376 | 88 | 654 |
Other income (expense), net | ||||
Foreign exchange contracts | ||||
Total gains (losses) | 197 | (33) | 286 | (228) |
Foreign exchange contracts | ||||
Foreign exchange contracts | ||||
Total | 98 | 1,601 | (208) | 1,870 |
Foreign exchange contracts | Revenues | Not Designated as Hedging Instrument | ||||
Foreign exchange contracts | ||||
Derivatives not designated as hedging instruments | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Other income (expense), net | Not Designated as Hedging Instrument | ||||
Foreign exchange contracts | ||||
Derivatives not designated as hedging instruments | 124 | (149) | 154 | (396) |
Other derivatives | Revenues | Not Designated as Hedging Instrument | ||||
Foreign exchange contracts | ||||
Derivatives not designated as hedging instruments | 0 | 0 | 0 | 0 |
Other derivatives | Other income (expense), net | Not Designated as Hedging Instrument | ||||
Foreign exchange contracts | ||||
Derivatives not designated as hedging instruments | (4) | 86 | (1) | 124 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | ||||
Foreign exchange contracts | ||||
Amount included in the assessment of effectiveness | 77 | 1,131 | (61) | 1,266 |
Amount excluded from the assessment of effectiveness | 80 | (39) | 127 | (54) |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||||
Foreign exchange contracts | ||||
Amount of gains (losses) reclassified from AOCI to income | (2) | 400 | 86 | 697 |
Amount excluded from the assessment of effectiveness (amortized) | 6 | (24) | 2 | (43) |
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 | 0 | 0 |
Amount excluded from the assessment of effectiveness (amortized) | 0 | 0 | 0 | 0 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Revenues | ||||
Foreign exchange contracts | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Amount excluded from the assessment of effectiveness | 0 | 0 | 0 | 0 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Other income (expense), net | ||||
Foreign exchange contracts | ||||
Hedged items | 22 | (136) | 54 | (123) |
Derivatives designated as hedging instruments | (22) | 136 | (54) | 124 |
Amount excluded from the assessment of effectiveness | 5 | 2 | 10 | 3 |
Derivatives in net investment hedging relationship: | Foreign exchange contracts | ||||
Foreign exchange contracts | ||||
Amount included in the assessment of effectiveness | (59) | 509 | (274) | 658 |
Derivatives in net investment hedging relationship: | Foreign exchange contracts | Revenues | ||||
Foreign exchange contracts | ||||
Amount excluded from the assessment of effectiveness | 0 | 0 | 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 | $ 72 | $ 28 | $ 123 | $ 40 |
Financial Instruments - Offsett
Financial Instruments - Offsetting of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives assets | ||
Gross Amounts Recognized | $ 444 | $ 760 |
Gross Amounts Offset in the Consolidated Balance Sheets | (47) | (84) |
Net Amounts Presented in the Consolidated Balance Sheets | 397 | 676 |
Financial Instruments | (138) | (463) |
Cash and Non-Cash Collateral Received or Pledged | (226) | (132) |
Net Amounts | 33 | 81 |
Derivatives liabilities | ||
Gross Amounts Recognized | 451 | 894 |
Gross Amounts Offset in the Consolidated Balance Sheets | (47) | (84) |
Net Amounts Presented in the Consolidated Balance Sheets | 404 | 810 |
Financial Instruments | (138) | (463) |
Cash and Non-Cash Collateral Received or Pledged | (34) | (28) |
Net Amounts | $ 232 | $ 319 |
Variable Interest Entities (V_2
Variable Interest Entities (VIE) - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Assets not available for use | $ 383,044 | $ 365,264 |
Liabilities with no recourse | 115,903 | 109,120 |
Noncontrolling interest | 3,600 | 3,800 |
Redeemable noncontrolling interest | 1,100 | 1,100 |
Unconsolidated VIE, carrying value | 3,000 | 2,700 |
Maximum exposure | 3,000 | 2,800 |
Nonrecourse | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liabilities with no recourse | 2,600 | 2,600 |
Asset Pledged as Collateral | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Assets not available for use | $ 3,100 | $ 4,100 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Commercial paper | $ 0 | $ 0 |
Estimated fair value of long-term debt | 10,100,000,000 | 9,900,000,000 |
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 2026 | ||
Debt Instrument [Line Items] | ||
Maximum borrowing on lines of credit | 6,000,000,000 | |
Revolving Credit Facility | Credit Facility Due April 2023 | ||
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Debt | ||
Future finance lease payments, net and other | $ 2,159 | $ 2,142 |
Total debt | 15,159 | 15,142 |
Unamortized discount and debt issuance costs | (137) | (143) |
Less: Current portion of long-term notes | (999) | 0 |
Less: Current portion of future finance lease payments, net and other current debt | (318) | (298) |
Long-term debt | $ 13,705 | 14,701 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | |
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Components Disclosure [Abstract] | ||
Allowance for credit losses on accounts receivable | $ 836 | $ 754 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Property and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 184,125 | $ 171,710 |
Less: accumulated depreciation | (62,917) | (59,042) |
Property and equipment, net | 121,208 | 112,668 |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 68,890 | 66,897 |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 71,592 | 66,267 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 32,019 | 27,657 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 11,286 | 10,575 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 338 | $ 314 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Balance Sheet Components Disclosure [Abstract] | ||
European Commission fines | $ 9,446 | $ 9,106 |
Income taxes payable, net | 10,870 | 1,632 |
Accrued customer liabilities | 3,498 | 3,619 |
Accrued purchases of property and equipment | 3,380 | 3,019 |
Current operating lease liabilities | 2,663 | 2,477 |
Other accrued expenses and current liabilities | 19,443 | 18,013 |
Accrued expenses and other current liabilities | $ 49,300 | $ 37,866 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Components of AOCI, net of tax | ||
Beginning Balance | $ 256,144 | $ 251,635 |
Other comprehensive income (loss) before reclassifications | 1,077 | (3,947) |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 127 | (54) |
Amounts reclassified from AOCI | 408 | (204) |
Other comprehensive income (loss) | 1,612 | (4,205) |
Ending Balance | 267,141 | 255,419 |
Total | ||
Components of AOCI, net of tax | ||
Beginning Balance | (7,603) | (1,623) |
Ending Balance | (5,991) | (5,828) |
Foreign Currency Translation Adjustments | ||
Components of AOCI, net of tax | ||
Beginning Balance | (4,142) | (2,306) |
Other comprehensive income (loss) before reclassifications | 831 | (1,626) |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | 831 | (1,626) |
Ending Balance | (3,311) | (3,932) |
Unrealized Gains (Losses) on Available-for-Sale Investments | ||
Components of AOCI, net of tax | ||
Beginning Balance | (3,477) | 236 |
Other comprehensive income (loss) before reclassifications | 296 | (3,404) |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 |
Amounts reclassified from AOCI | 490 | 381 |
Other comprehensive income (loss) | 786 | (3,023) |
Ending Balance | (2,691) | (2,787) |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Components of AOCI, net of tax | ||
Beginning Balance | 16 | 447 |
Other comprehensive income (loss) before reclassifications | (50) | 1,083 |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 127 | (54) |
Amounts reclassified from AOCI | (82) | (585) |
Other comprehensive income (loss) | (5) | 444 |
Ending Balance | $ 11 | $ 891 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information - Effects on Net Income of Amounts Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | $ 74,604 | $ 69,685 | $ 144,391 | $ 137,696 |
Other income (expense), net | 65 | (439) | 855 | (1,599) |
Benefit (provision) for income taxes | (3,535) | (3,012) | (6,689) | (5,510) |
Net of income tax | 18,368 | 16,002 | 33,419 | 32,438 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of income tax | (193) | 103 | (408) | 204 |
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 | (254) | (299) | (628) | (489) |
Benefit (provision) for income taxes | 56 | 66 | 138 | 108 |
Net of income tax | (198) | (233) | (490) | (381) |
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 | 6 | (65) | (7) | (115) |
Net of income tax | 5 | 336 | 82 | 585 |
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 | (2) | 400 | 86 | 697 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | Unrealized gains (losses) on cash flow hedges | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | $ 1 | $ 1 | $ 3 | $ 3 |
Supplemental Financial Statem_8
Supplemental Financial Statement Information - Schedule of Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Balance Sheet Components Disclosure [Abstract] | ||||
Interest income | $ 892 | $ 486 | $ 1,689 | $ 900 |
Interest expense | (43) | (83) | (123) | (166) |
Foreign currency exchange gain (loss), net | (268) | (260) | (478) | (333) |
Gain (loss) on debt securities, net | (304) | (790) | (597) | (1,157) |
Gain (loss) on equity securities, net | (205) | (251) | 172 | (1,321) |
Performance fees | 5 | 318 | 123 | 551 |
Income (loss) and impairment from equity method investments, net | (106) | (118) | (157) | (207) |
Other | 94 | 259 | 226 | 134 |
Other income (expense), net | 65 | (439) | 855 | (1,599) |
Interest costs capitalized | $ 47 | $ 37 | $ 87 | $ 71 |
Workforce Reduction and Other_3
Workforce Reduction and Other Initiatives - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Charges | $ 70 | $ 2,628 | |
Severance and Related | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | 1 | $ 2,000 | 1,995 |
Office Space | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges | $ 69 | $ 564 | $ 633 |
Workforce Reduction and Other_4
Workforce Reduction and Other Initiatives - Charges Included Within the Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||
Total charges | $ 70 | $ 2,628 | |
Cost of revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 19 | 700 | |
Research and development | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 11 | 1,093 | |
Sales and marketing | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 22 | 502 | |
General and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 18 | 333 | |
Severance and Related | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 1 | $ 2,000 | 1,995 |
Severance and Related | Cost of revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | (1) | 460 | |
Severance and Related | Research and development | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | (3) | 832 | |
Severance and Related | Sales and marketing | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | (1) | 444 | |
Severance and Related | General and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 6 | 259 | |
Office Space | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 69 | $ 564 | 633 |
Office Space | Cost of revenues | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 20 | 240 | |
Office Space | Research and development | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 14 | 261 | |
Office Space | Sales and marketing | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | 23 | 58 | |
Office Space | General and administrative | |||
Restructuring Cost and Reserve [Line Items] | |||
Total charges | $ 12 | $ 74 |
Workforce Reduction and Other_5
Workforce Reduction and Other Initiatives - Changes to Restructuring and Other Accruals (Details) - Severance and Related $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of beginning period | $ 0 |
Charges | 1,566 |
Cash payments | (1,423) |
Balance as of ending period | 143 |
Non-cash stock-based compensation | $ 429 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2022 | $ 28,960 |
Acquisitions | 240 |
Foreign currency translation and other adjustments | 10 |
Balance as of June 30, 2023 | 29,210 |
Google Services | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2022 | 20,847 |
Acquisitions | 240 |
Foreign currency translation and other adjustments | 37 |
Balance as of June 30, 2023 | 21,124 |
Google Cloud | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2022 | 7,205 |
Acquisitions | 0 |
Foreign currency translation and other adjustments | 1 |
Balance as of June 30, 2023 | 7,206 |
Other Bets | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2022 | 908 |
Acquisitions | 0 |
Foreign currency translation and other adjustments | (28) |
Balance as of June 30, 2023 | $ 880 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Acquisition-Related Intangible Assets that are being Amortized (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,601 | $ 2,553 |
Accumulated Amortization | 871 | 709 |
Net Carrying Amount | 1,730 | 1,844 |
Intangible assets, gross carrying amount | 2,837 | 2,793 |
Intangible assets, net carrying amount | 1,966 | 2,084 |
Indefinite-lived intangible assets | 236 | 240 |
Patents and developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,181 | 1,164 |
Accumulated Amortization | 420 | 354 |
Net Carrying Amount | 761 | 810 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 884 | 862 |
Accumulated Amortization | 306 | 235 |
Net Carrying Amount | 578 | 627 |
Trade names and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 536 | 527 |
Accumulated Amortization | 145 | 120 |
Net Carrying Amount | $ 391 | $ 407 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Expected Amortization Expense for Acquisition-Related Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2023 | $ 239 | |
2024 | 468 | |
2025 | 338 | |
2026 | 261 | |
2027 | 176 | |
Thereafter | 248 | |
Net Carrying Amount | $ 1,730 | $ 1,844 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Acquisition-related intangible assets | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 118 | $ 201 | $ 244 | $ 392 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions, € in Billions | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 14, 2022 EUR (€) | Mar. 20, 2019 USD ($) | Mar. 20, 2019 EUR (€) | Jun. 30, 2018 USD ($) | Jun. 30, 2018 EUR (€) | Jun. 27, 2017 USD ($) | Jun. 27, 2017 EUR (€) | Jun. 30, 2023 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||
Purchase obligation | $ 11,500 | |||||||||
European Commission Antitrust Investigation | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, loss in period | € 4.1 | $ 1,700 | € 1.5 | $ 5,100 | € 4.3 | $ 2,700 | € 2.4 | $ 1,700 | $ 5,100 | |
Loss contingency, loss adjustment | $ 217 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Apr. 30, 2023 | Apr. 30, 2022 | |
Stockholders Equity Note [Line Items] | ||||||
Repurchases of capital stock | $ 15,114,000,000 | $ 15,197,000,000 | $ 30,238,000,000 | $ 28,497,000,000 | ||
Share Repurchase Program | ||||||
Stockholders Equity Note [Line Items] | ||||||
Repurchases of capital stock | $ 15,114,000,000 | $ 30,238,000,000 | ||||
Repurchases of capital stock (in shares) | 131 | 288 | ||||
Class A & C Capital Stock | Share Repurchase Program | ||||||
Stockholders Equity Note [Line Items] | ||||||
Authorized share repurchase amount | $ 70,000,000,000 | $ 70,000,000,000 | ||||
Remaining amount available for repurchase | $ 68,100,000,000 | $ 68,100,000,000 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stockholders Equity Note [Line Items] | ||||
Repurchases of capital stock | $ 15,114 | $ 15,197 | $ 30,238 | $ 28,497 |
Share Repurchase Program | ||||
Stockholders Equity Note [Line Items] | ||||
Repurchases of capital stock (in shares) | 131 | 288 | ||
Repurchases of capital stock | $ 15,114 | $ 30,238 | ||
Share Repurchase Program | Class A Capital Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Repurchases of capital stock (in shares) | 17 | 37 | ||
Repurchases of capital stock | $ 1,908 | $ 3,919 | ||
Share Repurchase Program | Class C Capital Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Repurchases of capital stock (in shares) | 114 | 251 | ||
Repurchases of capital stock | $ 13,206 | $ 26,319 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Denominator | ||||
Basic net income per share (in dollars per share) | $ 1.45 | $ 1.22 | $ 2.63 | $ 2.46 |
Weighted-average effect of dilutive securities | ||||
Diluted net income per share (in dollars per share) | $ 1.44 | $ 1.21 | $ 2.61 | $ 2.44 |
Class A Common Stock | ||||
Numerator | ||||
Allocation of undistributed earnings | $ 8,600 | $ 7,329 | $ 15,597 | $ 14,812 |
Denominator | ||||
Number of shares used in basic computation (shares) | 5,931 | 6,015 | 5,939 | 6,013 |
Basic net income per share (in dollars per share) | $ 1.45 | $ 1.22 | $ 2.63 | $ 2.46 |
Numerator | ||||
Allocation of undistributed earnings for basic computation | $ 8,600 | $ 7,329 | $ 15,597 | $ 14,812 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 1,275 | 1,081 | 2,311 | 2,190 |
Reallocation of undistributed earnings | (75) | (68) | (96) | (162) |
Allocation of undistributed earnings | $ 9,800 | $ 8,342 | $ 17,812 | $ 16,840 |
Denominator | ||||
Number of shares used in basic computation (shares) | 5,931 | 6,015 | 5,939 | 6,013 |
Weighted-average effect of dilutive securities | ||||
Conversion of Class B to Class A common shares outstanding (shares) | 879 | 887 | 880 | 889 |
Restricted stock units and other contingently issuable shares (shares) | 0 | 0 | ||
Number of shares used in per share computation (shares) | 6,810 | 6,902 | 6,819 | 6,902 |
Diluted net income per share (in dollars per share) | $ 1.44 | $ 1.21 | $ 2.61 | $ 2.44 |
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) | 0 | 0 | ||
Class B Common Stock | ||||
Numerator | ||||
Allocation of undistributed earnings | $ 1,275 | $ 1,081 | $ 2,311 | $ 2,190 |
Denominator | ||||
Number of shares used in basic computation (shares) | 879 | 887 | 880 | 889 |
Basic net income per share (in dollars per share) | $ 1.45 | $ 1.22 | $ 2.63 | $ 2.46 |
Numerator | ||||
Allocation of undistributed earnings for basic computation | $ 1,275 | $ 1,081 | $ 2,311 | $ 2,190 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 | 0 |
Reallocation of undistributed earnings | (10) | (9) | (12) | (21) |
Allocation of undistributed earnings | $ 1,265 | $ 1,072 | $ 2,299 | $ 2,169 |
Denominator | ||||
Number of shares used in basic computation (shares) | 879 | 887 | 880 | 889 |
Weighted-average effect of dilutive securities | ||||
Conversion of Class B to Class A common shares outstanding (shares) | 0 | 0 | 0 | 0 |
Restricted stock units and other contingently issuable shares (shares) | 0 | 0 | ||
Number of shares used in per share computation (shares) | 879 | 887 | 880 | 889 |
Diluted net income per share (in dollars per share) | $ 1.44 | $ 1.21 | $ 2.61 | $ 2.44 |
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 | $ 8,493 | $ 7,592 | $ 15,511 | $ 15,436 |
Denominator | ||||
Number of shares used in basic computation (shares) | 5,858 | 6,231 | 5,906 | 6,266 |
Basic net income per share (in dollars per share) | $ 1.45 | $ 1.22 | $ 2.63 | $ 2.46 |
Numerator | ||||
Allocation of undistributed earnings for basic computation | $ 8,493 | $ 7,592 | $ 15,511 | $ 15,436 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 | 0 |
Reallocation of undistributed earnings | 75 | 68 | 96 | 162 |
Allocation of undistributed earnings | $ 8,568 | $ 7,660 | $ 15,607 | $ 15,598 |
Denominator | ||||
Number of shares used in basic computation (shares) | 5,858 | 6,231 | 5,906 | 6,266 |
Weighted-average effect of dilutive securities | ||||
Conversion of Class B to Class A common shares outstanding (shares) | 0 | 0 | 0 | 0 |
Restricted stock units and other contingently issuable shares (shares) | 69 | 127 | ||
Number of shares used in per share computation (shares) | 5,954 | 6,337 | 5,975 | 6,393 |
Diluted net income per share (in dollars per share) | $ 1.44 | $ 1.21 | $ 2.61 | $ 2.44 |
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) | 96 | 106 |
Compensation Plans - Narrative
Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 5,400 | $ 4,900 | $ 10,700 | $ 9,400 | |
Awards expected to be settled with stock | 5,600 | $ 4,600 | 10,700 | 9,000 | |
Non-cash stock-based compensation | 11,058 | $ 9,286 | |||
Severance and Related | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Non-cash stock-based compensation | 17 | $ 412 | 429 | ||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 43,600 | $ 43,600 | |||
Weighted average recognition period for unrecognized stock-based compensation expense | 2 years 9 months 18 days |
Compensation Plans - Unvested R
Compensation Plans - Unvested Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) shares in Millions | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Unvested restricted stock units - number of shares | |
Unvested at beginning of period (in shares) | shares | 324 |
Granted (in shares) | shares | 246 |
Vested (in shares) | shares | (109) |
Forfeited/canceled (in shares) | shares | (19) |
Unvested at end of period (in shares) | shares | 442 |
Unvested restricted stock units - weighted-average grant-date fair value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 107.98 |
Granted (in dollars per share) | $ / shares | 95.30 |
Vested (in dollars per share) | $ / shares | 99.65 |
Forfeited/canceled (in dollars per share) | $ / shares | 108.30 |
Unvested at end of period (in dollars per share) | $ / shares | $ 102.97 |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income before provision for income taxes | $ 21,903 | $ 19,014 | $ 40,108 | $ 37,948 |
Provision for income taxes | $ 3,535 | $ 3,012 | $ 6,689 | $ 5,510 |
Effective tax rate | 16.10% | 15.80% | 16.70% | 14.50% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Billions | Jun. 30, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits | $ 8.8 | $ 7.1 |
Unrecognized tax benefits that would impact effective tax rate | $ 6.7 | $ 5.3 |
Information about Segments an_3
Information about Segments and Geographic Areas - Revenue by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 74,604 | $ 69,685 | $ 144,391 | $ 137,696 |
Hedging gains (losses) | 3 | 375 | 87 | 653 |
Google Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 66,285 | 62,841 | 128,246 | 124,313 |
Google Cloud | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,031 | 6,276 | 15,485 | 12,097 |
Other Bets | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 285 | $ 193 | $ 573 | $ 633 |
Information about Segments an_4
Information about Segments and Geographic Areas - Operating Income (Loss) by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | $ 21,838 | $ 19,453 | $ 39,253 | $ 39,547 |
Operating Segments | Google Services | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | 23,454 | 21,621 | 45,191 | 43,594 |
Operating Segments | Google Cloud | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | 395 | (590) | 586 | (1,296) |
Operating Segments | Other Bets | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | (813) | (1,339) | (2,038) | (2,174) |
Reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | $ (1,198) | $ (239) | $ (4,486) | $ (577) |
Information about Segments an_5
Information about Segments and Geographic Areas - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 135,677 | $ 127,049 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 99,714 | 93,565 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 35,963 | $ 33,484 |