Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 01, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GOOG, GOOGL | ||
Entity Registrant Name | Alphabet Inc. | ||
Entity Central Index Key | 1,652,044 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 0 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 292,580,627 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 50,199,837 | ||
Class C Capital Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 345,539,303 | ||
Google Inc. | |||
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Google Inc. | ||
Entity Central Index Key | 1,288,776 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Entity Public Float | $ 311,000,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 16,549 | $ 18,347 |
Marketable securities | 56,517 | 46,048 |
Total cash, cash equivalents, and marketable securities (including securities loaned of $4,058 and $4,531) | 73,066 | 64,395 |
Accounts receivable, net of allowance of $225 and $296 | 11,556 | 9,383 |
Receivable under reverse repurchase agreements | 450 | 875 |
Income taxes receivable, net | 1,903 | 591 |
Prepaid revenue share, expenses and other assets | 3,139 | 3,412 |
Total current assets | 90,114 | 78,656 |
Prepaid revenue share, expenses and other assets, non-current | 3,181 | 3,187 |
Non-marketable investments | 5,183 | 3,079 |
Deferred income taxes | 251 | 176 |
Property and equipment, net | 29,016 | 23,883 |
Intangible assets, net | 3,847 | 4,607 |
Goodwill | 15,869 | 15,599 |
Total assets | 147,461 | 129,187 |
Current liabilities: | ||
Accounts payable | 1,931 | 1,715 |
Short-term debt | 3,225 | 2,009 |
Accrued compensation and benefits | 3,539 | 3,069 |
Accrued expenses and other current liabilities | 4,768 | 4,408 |
Accrued revenue share | 2,329 | 1,952 |
Securities lending payable | 2,428 | 2,778 |
Deferred revenue | 788 | 752 |
Income taxes payable, net | 302 | 96 |
Total current liabilities | 19,310 | 16,779 |
Long-term debt | 1,995 | 3,228 |
Deferred revenue, non-current | 151 | 104 |
Income taxes payable, non-current | 3,663 | 3,340 |
Deferred income taxes | 189 | 758 |
Other long-term liabilities | $ 1,822 | $ 1,118 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock | $ 0 | $ 0 |
Class A and Class B common stock, and Class C capital stock and additional paid-in capital | 32,982 | 28,767 |
Accumulated other comprehensive income (loss) | (1,874) | 27 |
Retained earnings | 89,223 | 75,066 |
Total stockholders’ equity | 120,331 | 103,860 |
Total liabilities and stockholders’ equity | 147,461 | 129,187 |
Google Inc. | ||
Current assets: | ||
Cash and cash equivalents | 16,549 | 18,347 |
Marketable securities | 56,517 | 46,048 |
Total cash, cash equivalents, and marketable securities (including securities loaned of $4,058 and $4,531) | 73,066 | 64,395 |
Accounts receivable, net of allowance of $225 and $296 | 11,556 | 9,383 |
Receivable under reverse repurchase agreements | 450 | 875 |
Income taxes receivable, net | 1,903 | 591 |
Prepaid revenue share, expenses and other assets | 3,139 | 3,412 |
Total current assets | 90,114 | 78,656 |
Prepaid revenue share, expenses and other assets, non-current | 3,181 | 3,187 |
Non-marketable investments | 5,183 | 3,079 |
Deferred income taxes | 251 | 176 |
Property and equipment, net | 29,016 | 23,883 |
Intangible assets, net | 3,847 | 4,607 |
Goodwill | 15,869 | 15,599 |
Total assets | 147,461 | 129,187 |
Current liabilities: | ||
Accounts payable | 1,931 | 1,715 |
Short-term debt | 3,225 | 2,009 |
Accrued compensation and benefits | 3,539 | 3,069 |
Accrued expenses and other current liabilities | 4,768 | 4,408 |
Accrued revenue share | 2,329 | 1,952 |
Securities lending payable | 2,428 | 2,778 |
Deferred revenue | 788 | 752 |
Income taxes payable, net | 302 | 96 |
Total current liabilities | 19,310 | 16,779 |
Long-term debt | 1,995 | 3,228 |
Deferred revenue, non-current | 151 | 104 |
Income taxes payable, non-current | 3,663 | 3,340 |
Deferred income taxes | 189 | 758 |
Other long-term liabilities | $ 1,822 | $ 1,118 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock | $ 0 | $ 0 |
Class A and Class B common stock, and Class C capital stock and additional paid-in capital | 31,313 | 28,767 |
Accumulated other comprehensive income (loss) | (1,874) | 27 |
Retained earnings | 90,892 | 75,066 |
Total stockholders’ equity | 120,331 | 103,860 |
Total liabilities and stockholders’ equity | $ 147,461 | $ 129,187 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Total cash, cash equivalents, and marketable securities, securities loaned | $ 4,531,000,000 | $ 4,058,000,000 |
Accounts receivable, allowance | $ 296,000,000 | $ 225,000,000 |
Convertible preferred stock, par value per share (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, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 15,000,000,000 | 15,000,000,000 |
Common stock, par value (in USD per share) | $ 687,000 | $ 680,000 |
Common stock, shares issued (in shares) | 687,348,000 | 680,172,000 |
Common stock, shares outstanding (in shares) | 687,348,000 | 680,172,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock, par value (in USD per share) | $ 292,000 | $ 287,000 |
Common stock, shares issued (in shares) | 292,297,000 | 286,560,000 |
Common stock, shares outstanding (in shares) | 292,297,000 | 286,560,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (in USD per share) | $ 50,000 | $ 53,000 |
Common stock, shares issued (in shares) | 50,295,000 | 53,213,000 |
Common stock, shares outstanding (in shares) | 50,295,000 | 53,213,000 |
Class C Capital Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (in USD per share) | $ 345,000 | $ 340,000 |
Common stock, shares issued (in shares) | 344,756,000 | 340,399,000 |
Common stock, shares outstanding (in shares) | 344,756,000 | 340,399,000 |
Google Inc. | ||
Total cash, cash equivalents, and marketable securities, securities loaned | $ 4,531,000,000 | $ 4,058,000,000 |
Accounts receivable, allowance | $ 296,000,000 | $ 225,000,000 |
Convertible preferred stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 500 | 100,000,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 1,500 | 15,000,000,000 |
Common stock, par value (in USD per share) | $ 0 | $ 680,000 |
Common stock, shares issued (in shares) | 300 | 680,172,000 |
Common stock, shares outstanding (in shares) | 300 | 680,172,000 |
Google Inc. | Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 500 | 9,000,000,000 |
Common stock, par value (in USD per share) | $ 0 | $ 287,000 |
Common stock, shares issued (in shares) | 100 | 286,560,000 |
Common stock, shares outstanding (in shares) | 100 | 286,560,000 |
Google Inc. | Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 500 | 3,000,000,000 |
Common stock, par value (in USD per share) | $ 0 | $ 53,000 |
Common stock, shares issued (in shares) | 100 | 53,213,000 |
Common stock, shares outstanding (in shares) | 100 | 53,213,000 |
Google Inc. | Class C Capital Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 500 | 3,000,000,000 |
Common stock, par value (in USD per share) | $ 0 | $ 340,000 |
Common stock, shares issued (in shares) | 100 | 340,399,000 |
Common stock, shares outstanding (in shares) | 100 | 340,399,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | $ 74,989 | $ 66,001 | $ 55,519 |
Costs and expenses: | |||
Cost of revenues | 28,164 | 25,691 | 21,993 |
Research and development | 12,282 | 9,832 | 7,137 |
Sales and marketing | 9,047 | 8,131 | 6,554 |
General and administrative | 6,136 | 5,851 | 4,432 |
Total costs and expenses | 55,629 | 49,505 | 40,116 |
Income from operations | 19,360 | 16,496 | 15,403 |
Other income (expense), net | 291 | 763 | 496 |
Income from continuing operations before income taxes | 19,651 | 17,259 | 15,899 |
Provision for income taxes | 3,303 | 3,639 | 2,739 |
Net income from continuing operations | 16,348 | 13,620 | 13,160 |
Net income (loss) from discontinued operations | 0 | 516 | (427) |
Net income | 16,348 | 14,136 | 12,733 |
Less: Adjustment Payment to Class C capital stockholders | 522 | 0 | 0 |
Net income available to all stockholders | $ 15,826 | $ 14,136 | $ 12,733 |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - basic: | |||
Continuing operations (in USD per share) | $ 20.15 | $ 19.77 | |
Net income (loss) per share - basic (in USD per share) | 20.91 | 19.13 | |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | |||
Continuing operations (in USD per share) | 19.82 | 19.42 | |
Net income (loss) per share - diluted (in USD per share) | 20.57 | 18.79 | |
Common Class A and Common Class B | |||
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - basic: | |||
Continuing operations (in USD per share) | $ 23.11 | 20.15 | 19.77 |
Discontinued operations (in USD per share) | 0 | 0.76 | (0.64) |
Net income (loss) per share - basic (in USD per share) | 23.11 | 20.91 | 19.13 |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | |||
Continuing operations (in USD per share) | 22.84 | 19.82 | 19.42 |
Discontinued operations (in USD per share) | 0 | 0.75 | (0.63) |
Net income (loss) per share - diluted (in USD per share) | $ 22.84 | $ 20.57 | $ 18.79 |
Class C Capital Stock | |||
Costs and expenses: | |||
Net income from continuing operations | $ 7,935 | $ 6,813 | $ 6,580 |
Net income (loss) from discontinued operations | 0 | 258 | (214) |
Less: Adjustment Payment to Class C capital stockholders | (522) | ||
Net income available to all stockholders | $ 8,457 | $ 7,071 | $ 6,366 |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - basic: | |||
Continuing operations (in USD per share) | $ 24.63 | $ 20.15 | $ 19.77 |
Discontinued operations (in USD per share) | 0 | 0.76 | (0.64) |
Net income (loss) per share - basic (in USD per share) | 24.63 | 20.91 | 19.13 |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | |||
Continuing operations (in USD per share) | 24.34 | 19.82 | 19.42 |
Discontinued operations (in USD per share) | 0 | 0.75 | (0.63) |
Net income (loss) per share - diluted (in USD per share) | $ 24.34 | $ 20.57 | $ 18.79 |
Google Inc. | |||
Revenues | $ 74,989 | $ 66,001 | $ 55,519 |
Costs and expenses: | |||
Cost of revenues | 28,164 | 25,691 | 21,993 |
Research and development | 12,282 | 9,832 | 7,137 |
Sales and marketing | 9,047 | 8,131 | 6,554 |
General and administrative | 6,136 | 5,851 | 4,432 |
Total costs and expenses | 55,629 | 49,505 | 40,116 |
Income from operations | 19,360 | 16,496 | 15,403 |
Other income (expense), net | 291 | 763 | 496 |
Income from continuing operations before income taxes | 19,651 | 17,259 | 15,899 |
Provision for income taxes | 3,303 | 3,639 | 2,739 |
Net income from continuing operations | 16,348 | 13,620 | 13,160 |
Net income (loss) from discontinued operations | 0 | 516 | (427) |
Net income | 16,348 | 14,136 | 12,733 |
Less: Adjustment Payment to Class C capital stockholders | 522 | 0 | 0 |
Net income available to all stockholders | $ 15,826 | $ 14,136 | $ 12,733 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 16,348 | $ 14,136 | $ 12,733 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (1,067) | (996) | 89 |
Available-for-sale investments: | |||
Change in net unrealized gains (losses) | (715) | 505 | (392) |
Less: reclassification adjustment for net (gains) losses included in net income | 208 | (134) | (162) |
Net change (net of tax effect of $212, $60, and $29) | (507) | 371 | (554) |
Cash flow hedges: | |||
Change in net unrealized gains | 676 | 651 | 112 |
Less: reclassification adjustment for net gains included in net income | (1,003) | (124) | (60) |
Net change (net of tax effect of $30, $196, and $115) | (327) | 527 | 52 |
Other comprehensive loss | (1,901) | (98) | (413) |
Comprehensive income | 14,447 | 14,038 | 12,320 |
Google Inc. | |||
Net income | 16,348 | 14,136 | 12,733 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (1,067) | (996) | 89 |
Available-for-sale investments: | |||
Change in net unrealized gains (losses) | (715) | 505 | (392) |
Less: reclassification adjustment for net (gains) losses included in net income | 208 | (134) | (162) |
Net change (net of tax effect of $212, $60, and $29) | (507) | 371 | (554) |
Cash flow hedges: | |||
Change in net unrealized gains | 676 | 651 | 112 |
Less: reclassification adjustment for net gains included in net income | (1,003) | (124) | (60) |
Net change (net of tax effect of $30, $196, and $115) | (327) | 527 | 52 |
Other comprehensive loss | (1,901) | (98) | (413) |
Comprehensive income | $ 14,447 | $ 14,038 | $ 12,320 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax effect related to available-for-sale investments | $ (29) | $ 60 | $ (212) |
Tax effect related to cash flow hedges | (115) | 196 | 30 |
Google Inc. | |||
Tax effect related to available-for-sale investments | (29) | 60 | (212) |
Tax effect related to cash flow hedges | $ (115) | $ 196 | $ 30 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Class A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Google Inc. | Google Inc.Class A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | Google Inc.Accumulated Other Comprehensive Income (Loss) | Google Inc.Retained Earnings | Class C Capital Stock | Class C Capital StockClass A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | Class C Capital StockAccumulated Other Comprehensive Income (Loss) | Class C Capital StockRetained Earnings | Class C Capital StockGoogle Inc. | Class C Capital StockGoogle Inc.Class A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | Class C Capital StockGoogle Inc.Accumulated Other Comprehensive Income (Loss) | Class C Capital StockGoogle Inc.Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2012 | 659,958 | 659,958 | ||||||||||||||
Beginning Balance at Dec. 31, 2012 | $ 71,570 | $ 22,835 | $ 538 | $ 48,197 | $ 71,570 | $ 22,835 | $ 538 | $ 48,197 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued (in shares) | 11,706 | 11,706 | ||||||||||||||
Common stock issued | 1,174 | $ 1,174 | 0 | 0 | 1,174 | $ 1,174 | 0 | 0 | ||||||||
Stock-based compensation expense | 3,343 | 3,343 | 0 | 0 | 3,343 | 3,343 | 0 | 0 | ||||||||
Stock-based compensation tax benefits | 449 | 449 | 0 | 0 | 449 | 449 | 0 | 0 | ||||||||
Tax withholding related to vesting of restricted stock units | (1,879) | (1,879) | 0 | 0 | (1,879) | (1,879) | 0 | 0 | ||||||||
Net income | 12,733 | 0 | 0 | 12,733 | 12,733 | 0 | 0 | 12,733 | ||||||||
Other comprehensive loss | (413) | 0 | (413) | 0 | (413) | 0 | (413) | 0 | ||||||||
Ending Balance at Dec. 31, 2013 | 86,977 | $ 25,922 | 125 | 60,930 | 86,977 | $ 25,922 | 125 | 60,930 | ||||||||
Ending Balance (in shares) at Dec. 31, 2013 | 671,664 | 671,664 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued (in shares) | 8,508 | 8,508 | ||||||||||||||
Common stock issued | 465 | $ 465 | 0 | 0 | 465 | $ 465 | 0 | 0 | ||||||||
Stock-based compensation expense | 4,279 | 4,279 | 0 | 0 | 4,279 | 4,279 | 0 | 0 | ||||||||
Stock-based compensation tax benefits | 625 | 625 | 0 | 0 | 625 | 625 | 0 | 0 | ||||||||
Tax withholding related to vesting of restricted stock units | (2,524) | (2,524) | 0 | 0 | (2,524) | (2,524) | 0 | 0 | ||||||||
Net income | 14,136 | 0 | 0 | 14,136 | 14,136 | 0 | 0 | 14,136 | ||||||||
Other comprehensive loss | (98) | 0 | (98) | 0 | (98) | 0 | (98) | 0 | ||||||||
Ending Balance at Dec. 31, 2014 | 103,860 | $ 28,767 | 27 | 75,066 | 103,860 | $ 28,767 | 27 | 75,066 | ||||||||
Ending Balance (in shares) at Dec. 31, 2014 | 680,172 | 680,172 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common stock issued (in shares) | 8,714 | 6,659 | ||||||||||||||
Common stock issued | 664 | $ 664 | 0 | 0 | 331 | $ 331 | 0 | 0 | ||||||||
Stock-based compensation expense | 5,151 | 5,151 | 0 | 0 | 5,151 | 5,151 | 0 | 0 | ||||||||
Stock-based compensation tax benefits | 815 | 815 | 0 | 0 | 815 | 815 | 0 | 0 | ||||||||
Tax withholding related to vesting of restricted stock units | (2,779) | $ (2,779) | 0 | 0 | (1,954) | $ (1,954) | 0 | 0 | ||||||||
Repurchases of capital stock (in shares) | (2,391) | (687,684) | ||||||||||||||
Repurchases of capital stock | (1,780) | $ (111) | 0 | (1,669) | 0 | $ 0 | 0 | 0 | ||||||||
Capital transactions with Alphabet | (2,272) | (2,272) | 0 | 0 | ||||||||||||
Adjustment Payment to Class C capital stockholders (in shares) | 853 | 853 | ||||||||||||||
Adjustment Payment to Class C capital stockholders | $ (47) | $ 475 | $ 0 | $ (522) | $ (47) | $ 475 | $ 0 | $ (522) | ||||||||
Net income | 16,348 | 0 | 0 | 16,348 | 16,348 | 0 | 0 | 16,348 | ||||||||
Other comprehensive loss | (1,901) | 0 | (1,901) | 0 | (1,901) | 0 | (1,901) | 0 | ||||||||
Ending Balance at Dec. 31, 2015 | $ 120,331 | $ 32,982 | $ (1,874) | $ 89,223 | $ 120,331 | $ 31,313 | $ (1,874) | $ 90,892 | ||||||||
Ending Balance (in shares) at Dec. 31, 2015 | 687,348 | 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net income | $ 16,348 | $ 14,136 | $ 12,733 |
Adjustments: | |||
Depreciation and impairment of property and equipment | 4,132 | 3,523 | 2,781 |
Amortization and impairment of intangible assets | 931 | 1,456 | 1,158 |
Stock-based compensation expense | 5,203 | 4,279 | 3,343 |
Excess tax benefits from stock-based award activities | (548) | (648) | (481) |
Deferred income taxes | (179) | (104) | (437) |
Gain on divestiture of business | 0 | (740) | (700) |
(Gain) loss on marketable and non-marketable investments, net | 334 | (390) | (166) |
Other | 212 | 192 | 272 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (2,094) | (1,641) | (1,307) |
Income taxes, net | (179) | 591 | 588 |
Prepaid revenue share, expenses and other assets | (318) | 459 | (930) |
Accounts payable | 203 | 436 | 605 |
Accrued expenses and other liabilities | 1,597 | 757 | 713 |
Accrued revenue share | 339 | 245 | 254 |
Deferred revenue | 43 | (175) | 233 |
Net cash provided by operating activities | 26,024 | 22,376 | 18,659 |
Investing activities | |||
Purchases of property and equipment | (9,915) | (10,959) | (7,358) |
Purchases of marketable securities | (74,368) | (56,310) | (45,444) |
Maturities and sales of marketable securities | 62,905 | 51,315 | 38,314 |
Purchases of non-marketable investments | (2,172) | (1,227) | (569) |
Cash collateral related to securities lending | (350) | 1,403 | (299) |
Investments in reverse repurchase agreements | 425 | (775) | 600 |
Proceeds from divestiture of business | 0 | 386 | 2,525 |
Acquisitions, net of cash acquired, and purchases of intangibles and other assets | (236) | (4,888) | (1,448) |
Net cash used in investing activities | (23,711) | (21,055) | (13,679) |
Financing activities | |||
Net payments related to stock-based award activities | (2,375) | (2,069) | (781) |
Excess tax benefits from stock-based award activities | 548 | 648 | 481 |
Adjustment Payment to Class C capital stockholders | (47) | 0 | 0 |
Repurchases of capital stock | (1,780) | 0 | 0 |
Proceeds from issuance of debt, net of costs | 13,705 | 11,625 | 10,768 |
Repayments of debt | (13,728) | (11,643) | (11,325) |
Net cash used in financing activities | (3,677) | (1,439) | (857) |
Effect of exchange rate changes on cash and cash equivalents | (434) | (433) | (3) |
Net increase (decrease) in cash and cash equivalents | (1,798) | (551) | 4,120 |
Cash and cash equivalents at beginning of period | 18,347 | 18,898 | 14,778 |
Cash and cash equivalents at end of period | 16,549 | 18,347 | 18,898 |
Supplemental disclosures of cash flow information | |||
Cash paid for taxes | 3,338 | 2,819 | 1,932 |
Cash paid for interest | 96 | 86 | 72 |
Google Inc. | |||
Operating activities | |||
Net income | 16,348 | 14,136 | 12,733 |
Adjustments: | |||
Depreciation and impairment of property and equipment | 4,132 | 3,523 | 2,781 |
Amortization and impairment of intangible assets | 931 | 1,456 | 1,158 |
Stock-based compensation expense | 5,203 | 4,279 | 3,343 |
Excess tax benefits from stock-based award activities | (548) | (648) | (481) |
Deferred income taxes | (179) | (104) | (437) |
Gain on divestiture of business | 0 | (740) | (700) |
(Gain) loss on marketable and non-marketable investments, net | 334 | (390) | (166) |
Other | 212 | 192 | 272 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (2,094) | (1,641) | (1,307) |
Income taxes, net | (179) | 591 | 588 |
Prepaid revenue share, expenses and other assets | (318) | 459 | (930) |
Accounts payable | 203 | 436 | 605 |
Accrued expenses and other liabilities | 1,597 | 757 | 713 |
Accrued revenue share | 339 | 245 | 254 |
Deferred revenue | 43 | (175) | 233 |
Net cash provided by operating activities | 26,024 | 22,376 | 18,659 |
Investing activities | |||
Purchases of property and equipment | (9,915) | (10,959) | (7,358) |
Purchases of marketable securities | (74,368) | (56,310) | (45,444) |
Maturities and sales of marketable securities | 62,905 | 51,315 | 38,314 |
Purchases of non-marketable investments | (2,172) | (1,227) | (569) |
Cash collateral related to securities lending | (350) | 1,403 | (299) |
Investments in reverse repurchase agreements | 425 | (775) | 600 |
Proceeds from divestiture of business | 0 | 386 | 2,525 |
Acquisitions, net of cash acquired, and purchases of intangibles and other assets | (236) | (4,888) | (1,448) |
Net cash used in investing activities | (23,711) | (21,055) | (13,679) |
Financing activities | |||
Net payments related to stock-based award activities | (1,612) | (2,069) | (781) |
Excess tax benefits from stock-based award activities | 548 | 648 | 481 |
Adjustment Payment to Class C capital stockholders | (47) | 0 | 0 |
Capital transactions with Alphabet | 2,543 | 0 | 0 |
Proceeds from issuance of debt, net of costs | 13,705 | 11,625 | 10,768 |
Repayments of debt | (13,728) | (11,643) | (11,325) |
Net cash used in financing activities | (3,677) | (1,439) | (857) |
Effect of exchange rate changes on cash and cash equivalents | (434) | (433) | (3) |
Net increase (decrease) in cash and cash equivalents | (1,798) | (551) | 4,120 |
Cash and cash equivalents at beginning of period | 18,347 | 18,898 | 14,778 |
Cash and cash equivalents at end of period | 16,549 | 18,347 | 18,898 |
Supplemental disclosures of cash flow information | |||
Cash paid for taxes | 3,338 | 2,819 | 1,932 |
Cash paid for interest | $ 96 | $ 86 | $ 72 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations We were incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. We generate revenues primarily by delivering relevant, cost-effective online advertising. On April 17, 2013, we sold the Motorola Home business (Motorola Home) to Arris Group, Inc. (Arris). The financial results of Motorola Home are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income for the year ended December 31, 2013. See Note 9 for further discussion of the sale. On April 2, 2014, we completed a two -for-one stock split effected in the form of a stock dividend (the Stock Split). All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the Stock Split. See Note 12 for additional information about the Stock Split. On October 29, 2014, we sold the Motorola Mobile business (Motorola Mobile) to Lenovo Group Limited (Lenovo). The financial results of Motorola Mobile are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income for the years ended December 31, 2013 and 2014. See Note 9 for further discussion of the sale. On August 10, 2015, we announced plans to create a new public holding company, Alphabet Inc. (Alphabet), and a new operating structure. On October 2, 2015, we implemented the holding company reorganization, and as a result, Alphabet became the successor issuer to Google Inc. (Google). The implementation of the holding company reorganization on October 2, 2015 was accounted for as a merger under common control. Alphabet has recognized the assets and liabilities of Google at carryover basis. The consolidated financial statements of Alphabet present comparative information for prior years on a combined basis, as if both Alphabet and Google were under common control for all periods presented. The consolidated financial statements and notes thereto are being presented in a combined report being filed by two separate registrants: Alphabet and Google. The Consolidated Statements of Stockholders’ Equity and Consolidated Statements of Cash Flows are the only statements with differences between Alphabet and Google. The differences relate to transactions between Alphabet and Google which are accounted for as capital transactions. Refer to Note 13 for additional information. Basis of Consolidation The consolidated financial statements of Alphabet and Google include the accounts of Alphabet and Google, respectively, and all wholly owned subsidiaries as well as all variable interest entities where we are the primary beneficiary. All intercompany balances and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Revenue Recognition The following table presents our revenues by segment and revenue source (in millions): Year Ended December 31, 2013 2014 2015 Google segment Google websites $ 37,422 $ 45,085 $ 52,357 Google Network Members' websites (1) 13,650 14,539 15,033 Google advertising revenues 51,072 59,624 67,390 Google other revenues (1) 4,435 6,050 7,151 Google segment revenues $ 55,507 $ 65,674 $ 74,541 Other Bets Other Bets revenues $ 12 $ 327 $ 448 Consolidated revenues $ 55,519 $ 66,001 $ 74,989 (1) Prior period amounts have been adjusted to reflect the reclassification primarily related to DoubleClick ad serving software revenues from Google other revenues to Advertising Revenues from Google Network Members' websites to conform with current period presentation. We generate revenues primarily by delivering performance and brand advertising. Performance advertising creates and delivers relevant ads that users will click, leading to direct engagement with advertisers. Brand advertising enhances users’ awareness of and affinity with advertisers’ products and services, through videos, text, images, and other ads that run across various devices. Google AdWords is our auction-based advertising program that enables performance advertisers to place text-based and display ads on Google websites and our Google Network Members’ websites. Google AdSense refers to the online programs through which we distribute our advertisers’ AdWords ads for display on our Google Network Members’ websites. Most of our customers pay us on a cost-per-click basis, which means that an advertiser pays us only when a user engages with the ads by clicking on an ad on Google websites or Google Network Members' websites or by viewing YouTube engagement ads like TrueView (counted as an engagement when the user chooses not to skip the ad). We also offer advertising on a cost-per-impression basis that enables our brand advertisers to pay us based on the number of times their ads display on Google websites and our Google Network Members’ websites as specified by the advertisers. Revenue from advertising is recognized when the services have been provided or delivered, the fees we charge are fixed or determinable, we and our advertisers or other customers understand the specific nature and terms of the agreed upon transactions, and collectability is reasonably assured. We recognize as revenues the fees charged to advertisers each time a user clicks on one of the ads that appears next to the search results or content on Google websites or our Google Network Members’ websites. For those advertisers using our cost-per-impression pricing, we recognize as revenues the fees charged to advertisers each time their ads are displayed on Google websites or our Google Network Members’ websites. We report our Google AdSense revenues and traffic acquisition costs due to our Google Network Members on a gross basis principally because we are the primary obligor to our advertisers. Revenue from hardware sales to end customers or through distribution channels is generally recognized when products have been shipped, risk of loss has transferred to the customer, objective evidence exists that customer acceptance provisions have been met, no significant obligations remain and allowances for discounts, price protection, returns and customer incentives can be reasonably and reliably estimated. Revenues are reported net of these allowances. Where these allowances cannot be reasonably and reliably estimated, we recognize revenue at the time the product sells through the distribution channel to the end customer or when the return period elapsed, as applicable. For the sale of certain third-party products and services, we evaluate whether it is appropriate to recognize revenue based on the gross amount billed to the customers or the net amount earned as revenue share. Generally, when we record revenue on a gross basis, we are the primary obligor in a transaction, and have also considered other factors, including whether we are subject to inventory risk or have latitude in establishing prices. For multi-element arrangements, including those that contain software essential to hardware products’ functionality and services, we allocate revenue to each unit of accounting based on their relative selling prices. In such circumstances, we use a hierarchy to determine the selling prices to be used for allocating revenue: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price, and (iii) best estimate of the selling price (ESP). VSOE generally exists only when we sell the deliverable separately and is the price actually charged by us for that deliverable. ESPs reflect our best estimates of what the selling price of the deliverable would be if it was sold regularly on a stand-alone basis. We record deferred revenues when cash payments are received in advance of our performance in the underlying agreement on the accompanying Consolidated Balance Sheets. Cost of Revenues Cost of revenues consists of traffic acquisition costs which are the advertising revenues shared with our Google Network Members and the amounts paid to our distribution partners who distribute our browser or otherwise direct search queries to our website. Additionally, other costs of revenues includes the following: • The expenses associated with the operation of our data centers (including depreciation, labor, energy, and bandwidth costs); • Content acquisition costs primarily related to payments to certain content providers from whom we license their video and other content for distribution on YouTube and Google Play (we share most of the fees these sales generate with content providers or pay a fixed fee to these content providers); • Credit card and other transaction fees related to processing customer transactions; • Stock-based compensation expense; • Revenue share payments to mobile carriers; • Inventory costs for hardware we sell; and • Amortization of certain intangible assets. Stock-based Compensation Restricted stock units (RSUs) are measured based on the fair market value of the underlying stock on the date of grant. Shares are issued on the vesting dates net of the minimum statutory tax withholding to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding. We record the liability for withholding amounts to be paid by us primarily as a reduction to additional paid-in capital when paid. For stock option awards, we determined fair value using the Black-Scholes-Merton (BSM) option pricing model on the date of grant . Stock-based compensation includes awards we expect to settle in Alphabet stock as well as awards we will ultimately settle in cash. We recognize stock-based compensation, less an estimate for forfeitures, using the straight-line method over the requisite service period. Additionally, stock-based compensation for liability classified awards reflect changes in fair value during the requisite service period. We include as part of cash flows from financing activities the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for options exercised and RSUs vested during the period. During the years ended December 31, 2013 , 2014 , and 2015 , the amount of cash received from the exercise of stock options was $1,174 million , $465 million , and $393 million , respectively. We have elected to account for the indirect effects of stock-based awards -- primarily the research and development tax credit -- through the Consolidated Statements of Income. Total direct tax benefit realized, including the excess tax benefit, from stock-based award activities during the years ended December 31, 2013 , 2014 , and 2015 , was $1,195 million , $1,356 million , and $1,544 million , respectively. Certain Risks and Concentrations Our revenues are primarily derived from online advertising, the market for which is highly competitive and rapidly changing. In addition, our revenues are generated from a multitude of vertical market segments in countries around the world. Significant changes in this industry or changes in customer buying or advertiser spending behavior could adversely affect our operating results. We are subject to concentrations of credit risk principally from cash and cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable. Cash equivalents and marketable securities consist primarily of time deposits, money market and other funds, including cash collateral received related to our securities lending program, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments and municipalities in the U.S., corporate securities, agency mortgage-backed securities, and asset-backed securities. Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts receivable are typically unsecured and are derived from revenues earned from customers located around the world. In 2013 , 2014 , and 2015 , we generated approximately 46% , 45% , and 46% of our revenues from customers based in the U.S., with the majority of revenues from customers outside of the U.S. located in Europe and Japan. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend, but generally we do not require collateral from our customers. We maintain reserves for estimated credit losses and these losses have generally been within our expectations. No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2013 , 2014 , or 2015 . Fair Value of Financial Instruments Our financial assets and financial liabilities that include cash equivalents, marketable securities, foreign currency and interest rate derivative contracts, and non-marketable debt securities are measured and recorded at fair value on a recurring basis. We measure certain financial assets at fair value for disclosure purposes, as well as, on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 - Unobservable inputs that are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Cash, Cash Equivalents, and Marketable Securities We invest all excess cash primarily in debt securities including those of the U.S. government and its agencies, corporate debt securities, agency mortgage-backed securities, money market and other funds, municipal securities, time deposits, asset backed securities, and debt instruments issued by foreign governments. We classify all investments that are readily convertible to known amounts of cash and have stated maturities of three months or less from the date of purchase as cash equivalents and those with stated maturities of greater than three months as marketable securities. We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as available-for-sale. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell these securities prior to their stated maturities. As we view these securities as available to support current operations, we classify highly liquid securities with maturities beyond 12 months as current assets under the caption marketable securities in the accompanying Consolidated Balance Sheets. We carry these securities at fair value, and report the unrealized gains and losses, net of taxes, as a component of stockholders’ equity, except for unrealized losses determined to be other-than-temporary, which we record within other income (expense), net. We determine any realized gains or losses on the sale of marketable securities on a specific identification method, and we record such gains and losses as a component of other income (expense), net. Non-Marketable Investments We have accounted for non-marketable equity investments either under the equity or cost method. Investments through which we exercise significant influence but do not have control over the investee are accounted for under the equity method. Investments through which we are not able to exercise significant influence over the investee are accounted for under the cost method. We have accounted for our non-marketable investments that meet the definition of a debt security as available-for-sale securities. Since these securities do not have contractual maturity dates and we do not intend to liquidate them in the next 12 months, we have classified them as non-current assets on the accompanying Consolidated Balance Sheet. Variable Interest Entities We make a determination at the start of each arrangement whether an entity in which we have made an investment is considered a Variable Interest Entity (“VIE”). We consolidate VIEs in which we have a controlling financial interest. If we do not have a controlling financial interest in a VIE, we account for the investment under either the equity or cost method. Impairment of Marketable and Non-Marketable Investments We periodically review our marketable and non-marketable investments for impairment. If we conclude that any of these investments are impaired, we determine whether such impairment is other-than-temporary. Factors we consider to make such determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and our intent to sell. For debt securities, we also consider whether (1) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result of credit losses. If any impairment is considered other-than-temporary, we will write down the asset to its fair value and record the corresponding charge as other income (expense), net. Accounts Receivable We record accounts receivable at the invoiced amount and we normally do not charge interest. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review the accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. We also maintain a sales allowance to reserve for potential credits issued to customers. We determine the amount of the reserve based on historical credits issued. Property and Equipment We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets, generally two to five years. We depreciate buildings over periods up to 25 years. We amortize leasehold improvements over the shorter of the remaining lease term or the estimated useful lives of the assets. Construction in progress is the construction or development of property and equipment that have not yet been placed in service for our intended use. Depreciation for equipment commences once it is placed in service and depreciation for buildings and leasehold improvements commences once they are ready for our intended use. Land is not depreciated. Software Development Costs We expense software development costs, including costs to develop software products or the software component of products to be marketed to external users, before technological feasibility is reached. Technological feasibility is typically reached shortly before the release of such products and as a result, development costs that meet the criteria for capitalization were not material for the periods presented. Software development costs also include costs to develop software to be used solely to meet internal needs and cloud based applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Costs capitalized for developing such software applications were not material for the periods presented. Business Combinations We include the results of operations of the businesses that we acquire as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets We review property and equipment, long-term prepayments and intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. In 2014, we recorded impairments of intangible assets, including an impairment of $378 million in the third quarter of 2014 related to a patent licensing royalty asset. Impairments of intangible assets were not material in 2015. We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. We test our goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. No goodwill impairment has been identified in any of the years presented. Intangible assets with definite lives are amortized over their estimated useful lives. We amortize our acquired intangible assets on a straight-line basis with definite lives over periods ranging from one to twelve years. Income Taxes We account for income taxes using the asset and liability method, under which we recognize the amount of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. We measure current and deferred tax assets and liabilities based on provisions of enacted tax law. We evaluate the realization of our deferred tax assets based on all available evidence and establish a valuation allowance to reduce deferred tax assets when it is more-likely-than-not that they will not be realized. We recognize the financial statement effects of a tax position when it is more-likely-than not that, based on technical merits, the position will be sustained upon examination. The tax benefits of the position recognized in the financial statements are then measured based on the largest amount of benefit that is greater than 50% likely to be realized upon settlement with a taxing authority. In addition, we recognize interest and penalties related to unrecognized tax benefits as a component of the income tax provision. Foreign Currency Generally, the functional currency of our international subsidiaries is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average rates for the annual period derived from month-end exchange rates for revenues, costs, and expenses. We record translation gains and losses in accumulated other comprehensive income as a component of stockholders’ equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange losses in other income (expense), net. Advertising and Promotional Expenses We expense advertising and promotional costs in the period in which they are incurred. For the years ended December 31, 2013 , 2014 and 2015 , advertising and promotional expenses totaled approximately $2,389 million , $3,004 million , and $3,186 million . Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. In June 2014, the FASB issued Accounting Standards Update No. 2014-10 (ASU 2014-10) "Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation." ASU 2014-10 removes the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification (ASC) thereby removing the financial reporting distinction between development stage entities and other reporting entities. The additional elimination of related consolidation guidance will require companies with interests in development stage entities to reassess whether such entities are variable interest entities under ASC Topic 810, Consolidation. We will adopt this standard in the first quarter of 2016 on a retrospective basis. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. We will adopt this standard in the first quarter of 2016 on a retrospective basis. We do not expect the adoption of this standard to have a material impact on our consolidated statement of operations or consolidated balance sheet, but it may result in additional disclosures. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (ASU 2015-17) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. We have early adopted this standard in the fourth quarter of 2015 on a retrospective basis. Prior periods have been retrospectively adjusted. As a result of the adoption of ASU 2015-17, the Company made the following adjustments to the 2014 balance sheet: a $1,322 million decrease to current deferred tax assets, a $83 million increase to noncurrent deferred tax asset, a $26 million decrease to current deferred tax liability, and a decrease of $1,213 million to noncurrent deferred tax liability. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 (ASU 2016-01) "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. With respect to our consolidated financial statements, the most significant impact relates to the accounting for equity investments. It will impact the disclosure and presentation of financial assets and liabilities. ASU 2016-01 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. Early adoption by public entities is permitted only for certain provisions. We are currently in the process of evaluating the impact of the adoption of this standard on our consolidated financial statements. Revision of Previously Issued Financial Statements In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities, and as a consequence, we revised our income tax expense for periods beginning in 2008 through the first quarter of 2015 in the cumulative amount of $711 million . We evaluated the materiality of the income tax expense impact quantitatively and qualitatively and concluded it was not material to any of the prior periods impacted and that correction of income tax expense as an out of period adjustment in the quarter ended June 30, 2015 would not be material to our consolidated financial statements for the year ending December 31, 2015. Consolidated revenues are not impacted. We elected to revise previously issued consolidated financial statements for the periods impacted. Refer to Note 17 for additional information. Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments We classify our cash equivalents and marketable securities within Level 1 or Level 2 in the fair value hierarchy because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. We classify our foreign currency and interest rate derivative contracts primarily within Level 2 in the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments. Cash, Cash Equivalents, and Marketable Securities The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of December 31, 2014 and 2015 (in millions): As of December 31, 2014 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Marketable Cash $ 9,863 $ 0 $ 0 $ 9,863 $ 9,863 $ 0 Level 1: Money market and other funds 2,532 0 0 2,532 2,532 0 U.S. government notes 15,320 37 (4 ) 15,353 1,128 14,225 Marketable equity securities 988 428 (64 ) 1,352 0 1,352 18,840 465 (68 ) 19,237 3,660 15,577 Level 2: Time deposits (1) 2,409 0 0 2,409 2,309 100 Money market and other funds (2) 1,762 0 0 1,762 1,762 0 Fixed-income bond funds (3) 385 0 (38 ) 347 0 347 U.S. government agencies 2,327 8 (1 ) 2,334 750 1,584 Foreign government bonds 1,828 22 (10 ) 1,840 0 1,840 Municipal securities 3,370 33 (6 ) 3,397 3 3,394 Corporate debt securities 11,499 114 (122 ) 11,491 0 11,491 Agency mortgage-backed securities 8,196 109 (42 ) 8,263 0 8,263 Asset-backed securities 3,456 1 (5 ) 3,452 0 3,452 35,232 287 (224 ) 35,295 4,824 30,471 Total $ 63,935 $ 752 $ (292 ) $ 64,395 $ 18,347 $ 46,048 As of December 31, 2015 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Cash $ 7,380 $ 0 $ 0 $ 7,380 $ 7,380 $ 0 Level 1: Money market and other funds 5,623 0 0 5,623 5,623 0 U.S. government notes 20,922 27 (48 ) 20,901 258 20,643 Marketable equity securities 692 155 0 847 0 847 27,237 182 (48 ) 27,371 5,881 21,490 Level 2: Time deposits (1) 3,223 0 0 3,223 2,012 1,211 Money market and other funds (2) 1,140 0 0 1,140 1,140 0 Fixed-income bond funds (3) 219 0 0 219 0 219 U.S. government agencies 1,367 2 (3 ) 1,366 0 1,366 Foreign government bonds 2,242 14 (23 ) 2,233 0 2,233 Municipal securities 3,812 47 (4 ) 3,855 0 3,855 Corporate debt securities 13,809 53 (278 ) 13,584 136 13,448 Agency mortgage-backed securities 9,680 48 (57 ) 9,671 0 9,671 Asset-backed securities 3,032 0 (8 ) 3,024 0 3,024 38,524 164 (373 ) 38,315 3,288 35,027 Total $ 73,141 $ 346 $ (421 ) $ 73,066 $ 16,549 $ 56,517 (1) The majority of our time deposits are foreign deposits. (2) The balances as of December 31, 2014 and 2015 were related to cash collateral received in connection with our securities lending program, which was invested in reverse repurchase agreements maturing within three months. See section titled "Securities Lending Program" below for further discussion of this program. (3) Fixed-inco me bond funds consist of mutual funds that primarily invest in corporate and government bonds. We determine realized gains or losses on the marketable securities on a specific identification method. We recognized gross realized gains of $416 million , $238 million , and $357 million for the years ended December 31, 2013, 2014, and 2015. We recognized gross realized losses of $258 million , $85 million , and $565 million for the years ended December 31, 2013, 2014, and 2015. We reflect these gains and losses as a component of other income (expense), net, in the accompanying Consolidated Statements of Income. The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): As of December 31, 2015 Due in 1 year $ 7,900 Due in 1 year through 5 years 30,141 Due in 5 years through 10 years 7,199 Due after 10 years 10,211 Total $ 55,451 The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2014 and 2015 , 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, 2014 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government notes $ 4,490 $ (4 ) $ 0 $ 0 $ 4,490 $ (4 ) U.S. government agencies 830 (1 ) 0 0 830 (1 ) Foreign government bonds 255 (7 ) 43 (3 ) 298 (10 ) Municipal securities 877 (3 ) 174 (3 ) 1,051 (6 ) Corporate debt securities 5,851 (112 ) 225 (10 ) 6,076 (122 ) Agency mortgage-backed securities 609 (1 ) 2,168 (41 ) 2,777 (42 ) Asset-backed securities 2,388 (4 ) 174 (1 ) 2,562 (5 ) Fixed-income bond funds 347 (38 ) 0 0 347 (38 ) Marketable equity securities 690 (64 ) 0 0 690 (64 ) Total $ 16,337 $ (234 ) $ 2,784 $ (58 ) $ 19,121 $ (292 ) As of December 31, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized U.S. government notes $ 13,757 $ (48 ) $ 0 $ 0 $ 13,757 $ (48 ) U.S. government agencies 864 (3 ) 0 0 864 (3 ) Foreign government bonds 885 (18 ) 36 (5 ) 921 (23 ) Municipal securities 1,116 (3 ) 41 (1 ) 1,157 (4 ) Corporate debt securities 9,192 (202 ) 784 (76 ) 9,976 (278 ) Agency mortgage-backed securities 5,783 (34 ) 721 (23 ) 6,504 (57 ) Asset-backed securities 2,508 (7 ) 386 (1 ) 2,894 (8 ) Total $ 34,105 $ (315 ) $ 1,968 $ (106 ) $ 36,073 $ (421 ) During the years ended December 31, 2013 and 2014 , we did not recognize any other-than-temporary impairment loss. During the year ended December 31, 2015 , we recognized $281 million of other-than-temporary impairment losses related to our marketable equity securities and fixed-income bond funds. Those losses are included in gains (losses) on marketable securities, net as a component of other income (expense), net, in the accompanying Consolidated Statements of Income. See Note 10 for further details on other income (expense), net. Securities Lending Program From time to time, we enter into securities lending agreements with financial institutions to enhance investment income. We loan certain securities which are collateralized in the form of cash or securities. Cash collateral is usually invested in reverse repurchase agreements which are collateralized in the form of securities. We classify loaned securities as cash equivalents or marketable securities and record the cash collateral as an asset with a corresponding liability in the accompanying Consolidated Balance Sheets. We classify reverse repurchase agreements maturing within three months as cash equivalents and those longer than three months as receivable under reverse repurchase agreements in the accompanying Consolidated Balance Sheets. For security collateral received, we do not record an asset or liability except in the event of counterparty default. Our securities lending transactions were accounted for as secured borrowings with significant investment categories as follows (in millions): As of December 31, 2015 Remaining Contractual Maturity of the Agreements Securities Lending Transactions Overnight and Continuous Up to 30 days 30 - 90 Days Greater Than 90 Days Total U.S. government notes $ 1,322 $ 31 $ 0 $ 306 $ 1,659 U.S. government agencies 504 77 0 0 581 Corporate debt securities 188 0 0 0 188 Total $ 2,014 $ 108 $ 0 $ 306 $ 2,428 Gross amount of recognized liabilities for securities lending in offsetting disclosure $ 2,428 Amounts related to agreements not included in securities lending in offsetting disclosure $ 0 Derivative Financial Instruments We recognize derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. We record changes in the fair value (i.e., gains or losses) of the derivatives in the accompanying Consolidated Statements of Income as other income (expense), net, as part of revenues, or as a component of accumulated other comprehensive income (AOCI) in the accompanying Consolidated Balance Sheets, as discussed below. We enter into foreign currency contracts with financial institutions to reduce the risk that our cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. We use certain interest rate derivative contracts to hedge interest rate exposures on our fixed income securities and debt. Our program is not used for trading or speculative purposes. We enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. To further reduce credit risk, we enter into collateral security arrangements under which the counterparty is required to provide collateral when the net fair value of certain financial instruments fluctuates from contractually established thresholds. We can take possession of the collateral in the event of counterparty default. As of December 31, 2014 and 2015 , we received cash collateral related to the derivative instruments under our collateral security arrangements of $268 million and $192 million . Cash Flow Hedges We use options designated as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. The notional principal of these contracts was approximately $13.6 billion and $16.4 billion as of December 31, 2014 and 2015 . These foreign exchange contracts have maturities of 36 months or less. In 2012, we entered into forward-starting interest rate swaps with a total notional amount of $1.0 billion and terms calling for us to receive interest at a variable rate and to pay interest at a fixed rate, that effectively locked in an interest rate on our anticipated debt issuance of $1.0 billion in 2014. We issued $1.0 billion of unsecured senior notes in February 2014 (See details in Note 4 ). As a result, we terminated the forward-starting interest rate swaps upon the debt issuance. The cash gain associated with the termination is reported within Operating Activities in the Consolidated Statement of Cash Flows for the year ended December 31, 2014, consistent with the impact of the hedged item. We reflect gain or loss on the effective portion of a cash flow hedge as a component of AOCI and subsequently reclassify cumulative gains and losses to revenues or interest expense when the hedged transactions are recorded. If the hedged transactions become probable of not occurring, the corresponding amounts in AOCI would be immediately reclassified to other income (expense), net. Further, we exclude the change in the time value of the options from our assessment of hedge effectiveness. We record the premium paid or time value of an option on the date of purchase as an asset. Thereafter, we recognize changes to this time value in other income (expense), net. As of December 31, 2015 , the effective portion of our cash flow hedges before tax effect was $375 million , of which $293 million is expected to be reclassified from AOCI into earnings within the next 12 months. Fair Value Hedges We use forward contracts designated as fair value hedges to hedge foreign currency risks for our investments denominated in currencies other than the U.S. dollar. We exclude changes in the time value for forward contracts from the assessment of hedge effectiveness. The notional principal of these contracts was $1.5 billion and $1.8 billion as of December 31, 2014 and 2015 . We use interest rate swaps designated as fair value hedges to hedge interest rate risk for certain fixed rate securities. The notional principal of these contracts was $175 million and $295 million as of December 31, 2014 and 2015 . Gains and losses on these forward contracts and interest rate swaps are recognized in other income (expense), net, along with the offsetting losses and gains of the related hedged items. Other Derivatives Other derivatives not designated as hedging instruments consist of forward and option contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the local currency of a subsidiary. We recognize gains and losses on these contracts, as well as the related costs in other income (expense), net, along with the foreign currency gains and losses on monetary assets and liabilities. The notional principal of foreign exchange contracts outstanding was $6.2 billion and $7.5 billion as of December 31, 2014 and 2015 . We also use exchange-traded interest rate futures contracts and “To Be Announced” (TBA) forward purchase commitments of mortgage-backed assets to hedge interest rate risks on certain fixed income securities. The TBA contracts meet the definition of derivative instruments in cases where physical delivery of the assets is not taken at the earliest available delivery date. Our interest rate futures and TBA contracts (together interest rate contracts) are not designated as hedging instruments. We recognize gains and losses on these contracts, as well as the related costs, in other income (expense), net. The gains and losses are generally economically offset by unrealized gains and losses in the underlying available-for-sale securities, which are recorded as a component of AOCI until the securities are sold or other-than-temporarily impaired, at which time the amounts are moved from AOCI into other income (expense), net. The total notional amounts of interest rate contracts outstanding were $150 million and $50 million as of December 31, 2014 and 2015 . The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2014 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Prepaid revenue share, expenses and other assets, current and non-current $ 851 $ 0 $ 851 Interest rate contracts Prepaid revenue share, expenses and other assets, current and non-current 1 0 1 Total $ 852 $ 0 $ 852 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other current liabilities $ 0 $ 3 $ 3 Interest rate contracts Accrued expenses and other liabilities, current and non-current 1 0 1 Total $ 1 $ 3 $ 4 As of December 31, 2015 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Prepaid revenue share, expenses and other assets, current and non-current $ 626 $ 2 $ 628 Total $ 626 $ 2 $ 628 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other current liabilities $ 1 $ 13 $ 14 Interest rate contracts Accrued expenses and other liabilities, current and non-current 2 0 2 Total $ 3 $ 13 $ 16 The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) is summarized below (in millions): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) Year Ended December 31, Derivatives in Cash Flow Hedging Relationship 2013 2014 2015 Foreign exchange contracts $ 92 $ 929 $ 964 Interest rate contracts 86 (31 ) 0 Total $ 178 $ 898 $ 964 Gains Reclassified from AOCI into Income (Effective Portion) Year Ended December 31, Derivatives in Cash Flow Hedging Relationship Location 2013 2014 2015 Foreign exchange contracts Revenues $ 95 $ 171 $ 1,399 Interest rate contracts Other income (expense), net 0 4 5 Total $ 95 $ 175 $ 1,404 Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) (1) Year Ended December 31, Derivatives in Cash Flow Hedging Relationship Location 2013 2014 2015 Foreign exchange contracts Other income (expense), net $ (280 ) $ (279 ) $ (297 ) Interest rate contracts Other income (expense), net 0 4 0 Total $ (280 ) $ (275 ) $ (297 ) (1) Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented. The effect of derivative instruments in fair value hedging relationships on income is summarized below (in millions): Gains (Losses) Recognized in Income on Derivatives (2) Year Ended December 31, Derivatives in Fair Value Hedging Relationship Location 2013 2014 2015 Foreign Exchange Hedges: Foreign exchange contracts Other income (expense), net $ 16 $ 115 $ 170 Hedged item Other income (expense), net (25 ) (123 ) (176 ) Total $ (9 ) $ (8 ) $ (6 ) Interest Rate Hedges: Interest rate contracts Other income (expense), net $ 0 $ 0 $ (2 ) Hedged item Other income (expense), net 0 0 2 Total $ 0 $ 0 $ 0 (2) Losses related to the amount excluded from effectiveness testing of the hedges were $9 million , $8 million , and $6 million for the years ended December 31, 2013 , 2014 , and 2015 . The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income on Derivatives Year Ended December 31, Derivatives Not Designated As Hedging Instruments Location 2013 2014 2015 Foreign exchange contracts Other income (expense), net, and net loss from discontinued operations $ 118 $ 237 $ 198 Interest rate contracts Other income (expense), net 4 2 1 Total $ 122 $ 239 $ 199 Offsetting of Derivatives, Securities Lending, and Reverse Repurchase Agreements We present our derivatives, securities lending and reverse repurchase agreements at gross fair values in the Consolidated Balance Sheets. However, our master netting and other similar arrangements allow net settlements under certain conditions. As of December 31, 2014 and 2015 , information related to these offsetting arrangements was as follows (in millions): Offsetting of Assets As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 852 $ 0 $ 852 $ (1 ) (1) $ (251 ) $ (412 ) $ 188 Reverse repurchase agreements 2,637 0 2,637 (2) 0 0 (2,637 ) 0 Total $ 3,489 $ 0 $ 3,489 $ (1 ) $ (251 ) $ (3,049 ) $ 188 As of December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 628 $ 0 $ 628 $ (13 ) (1) $ (189 ) $ (214 ) $ 212 Reverse repurchase agreements 1,590 0 1,590 (2) 0 0 (1,590 ) 0 Total $ 2,218 $ 0 $ 2,218 $ (13 ) $ (189 ) $ (1,804 ) $ 212 (1) The balances as of December 31, 2014 and 2015 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. (2) The balances as of December 31, 2014 and 2015 included $1,762 million and $1,140 million recorded in cash and cash equivalents, respectively, and $875 million and $450 million recorded in receivable under reverse repurchase agreements, respectively. Offsetting of Liabilities As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 4 $ 0 $ 4 $ (1 ) (3) $ 0 $ 0 $ 3 Securities lending agreements 2,778 0 2,778 0 0 (2,740 ) 38 Total $ 2,782 $ 0 $ 2,782 $ (1 ) $ 0 $ (2,740 ) $ 41 As of December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 16 $ 0 $ 16 $ (13 ) (3) $ (3 ) $ 0 $ 0 Securities lending agreements 2,428 0 2,428 0 0 (2,401 ) 27 Total $ 2,444 $ 0 $ 2,444 $ (13 ) $ (3 ) $ (2,401 ) $ 27 (3) The balances as of December 31, 2014 and 2015 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Non-Marketable Investments
Non-Marketable Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments, All Other Investments [Abstract] | |
Non-Marketable Investments | Non-Marketable Investments Our non-marketable investments include non-marketable equity investments and non-marketable debt securities. Non-Marketable Equity Investments Our non-marketable equity investments are investments we have made in privately-held companies accounted for under the equity or cost method and are not required to be consolidated under the variable interest or voting models. As of December 31, 2014 and 2015 , these investments accounted for under the equity method had a carrying value of approximately $1.3 billion and $1.6 billion , respectively, and those investments accounted for under the cost method had a carrying value of $1.8 billion and $2.6 billion , respectively. For investments accounted for under the cost method, the fair value was approximately $7.5 billion as of December 31, 2015 . The fair value of the cost method investments are primarily determined from data leveraging private-market transactions and are classified within Level 3 in the fair value hierarchy. We periodically review our non-marketable equity investments for impairment. No material impairments were recognized for the years ended December 31, 2013 , 2014 , and 2015 . Our share of gains and losses in equity method investments for the year ended December 31, 2015 was a net loss of approximately $227 million and not material for the years ended December 31, 2013 and 2014 . We reflect these losses as a component of other income (expense), net, in the accompanying Consolidated Statements of Income. We determined that certain renewable energy investments included in our non-marketable equity investments are VIEs. However, we do not consolidate these entities in our financial statements because we do not have the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and account for those investments under the equity method. Our involvement with investments in renewable energy relate to our equity investments in entities whose activities involve power generation. We have determined that the governance structures of these entities do not allow us to direct the activities that would significantly impact the entity's economic performance such as setting operating budgets. The carrying value of our renewable energy investments accounted for under the equity method that are VIEs is $302 million as of December 31, 2015 with the maximum exposure of $316 million . The maximum exposure is based on current investments to date plus future funding commitments. We have determined the single source of our exposure to these VIE’s is our capital investment in these entities. We periodically reassess whether we are the primary beneficiary of a VIE. The reassessment process considers whether we have acquired the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. We also reconsider whether entities previously determined not to be VIEs have become VIEs, based on changes in facts and circumstances including changes in contractual arrangements and capital structure. Non-Marketable Debt Securities Our non-marketable debt securities are primarily preferred stock that are redeemable at our option and convertible notes issued by private companies. These debt securities do not have readily determinable market values and are categorized accordingly as Level 3 in the fair value hierarchy. To estimate the fair value of these securities, we use a combination of valuation methodologies, including market and income approaches based on prior transaction prices; estimated timing, probability, and amount of cash flows; and illiquidity considerations. Financial information of private companies may not be available and consequently we will estimate the value based on the best available information at the measurement date. We estimate a range of fair values based on valuation approaches noted above and as of December 31, 2014 and 2015 , the fair value recorded on the Consolidated Balance Sheets for individual investments is within the range. No material impairments were recognized for the years ended December 31, 2013 , 2014 , and 2015 . The following table presents a reconciliation for our assets measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) (in millions): Level 3 Balance as of December 31, 2014 $ 90 Purchases, issuances, and settlements (1) 934 Balance as of December 31, 2015 $ 1,024 (1) Purchases of securities included our $900 million investment in SpaceX, a space exploration and space transport company, made during January 2015. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt We have a debt financing program of up to $3.0 billion through the issuance of commercial paper. Net proceeds from this program are used for general corporate purposes. As of December 31, 2014 and 2015 , we had $2.0 billion of outstanding commercial paper recorded as short-term debt with a weighted-average interest rate of 0.1% and 0.2% , respectively. In conjunction with this program, we have a $3.0 billion revolving credit facility expiring in July 2016. The interest rate for the credit facility is determined based on a formula using certain market rates. As of December 31, 2014 and 2015 , we were in compliance with the financial covenant in the credit facility, and no amounts were outstanding under the credit facility as of December 31, 2014 and 2015 . The estimated fair value of the short-term debt approximated its carrying value as of December 31, 2014 and 2015 . Long-Term Debt We issued $1.0 billion of unsecured senior notes (the "2014 Notes") in February 2014 and $3.0 billion of unsecured senior notes in three tranches (collectively, the "2011 Notes") in May 2011. We used the net proceeds from the issuance of the 2011 Notes to repay a portion of our outstanding commercial paper and for general corporate purposes. We used the net proceeds from the issuance of the 2014 Notes for the repayment of the portion of the principal amount of our 2011 Notes which matured on May 19, 2014 and for general corporate purposes. The total outstanding Notes are summarized below (in millions): As of As of Short-Term Portion of Long-Term Debt 2.125% Notes due on May 19, 2016 $ 0 $ 1,000 Capital Lease Obligation 10 225 Total Short-Term Portion of Long-Term Debt $ 10 $ 1,225 Long-Term Debt 2.125% Notes due on May 19, 2016 $ 1,000 $ 0 3.625% Notes due on May 19, 2021 1,000 1,000 3.375% Notes due on February 25, 2024 1,000 1,000 Unamortized discount for the Notes above (8 ) (5 ) Subtotal 2,992 1,995 Capital Lease Obligation 236 0 Total Long-Term Debt $ 3,228 $ 1,995 The effective interest yields of the Notes due in 2016, 2021, and 2024 were 2.241% , 3.734% , and 3.377% , respectively. Interest on the 2011 and 2014 Notes is payable semi-annually. The 2011 and 2014 Notes rank equally with each other and with all of our other senior unsecured and unsubordinated indebtedness from time to time outstanding. We may redeem the 2011 and 2014 Notes at any time in whole or in part at specified redemption prices. We are not subject to any financial covenants under the 2011 Notes or the 2014 Notes. The total estimated fair value of the 2011 and 2014 Notes was approximately $3.1 billion at both December 31, 2014 and 2015 . The fair value of the outstanding 2011 and 2014 Notes was determined based on observable market prices in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy. In August 2013, we entered into a capital lease obligation on certain property expiring in 2028. We intend to exercise the option to purchase the property in 2016, and as such the long term portion of the capital lease obligation was reclassified as short term. The effective rate of the capital lease obligation approximates the market rate. The estimated fair value of the capital lease obligation approximated its carrying value as of December 31, 2014 and 2015 . As of December 31, 2015 , aggregate future principal payments for long-term debt (including short-term portion of long-term debt) and capital lease obligation were as follows (in millions): Years Ending 2016 $ 1,225 2017 0 2018 0 2019 0 Thereafter 2,000 Total $ 3,225 In January 2016, the board of directors of Alphabet authorized the company to issue up to $5.0 billion of commercial paper from time to time and to enter into a $4.0 billion revolving credit facility to replace Google's existing $3.0 billion revolving credit facility. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment, Net Property and equipment, net, consisted of the following (in millions): As of December 31, 2014 As of December 31, 2015 Land and buildings $ 13,326 $ 16,518 Information technology assets 10,918 13,645 Construction in progress 6,555 7,324 Leasehold improvements 1,868 2,576 Furniture and fixtures 79 83 Property and equipment, gross 32,746 40,146 Less: accumulated depreciation and amortization (8,863 ) (11,130 ) Property and equipment, net $ 23,883 $ 29,016 Property under capital lease with a cost basis of $258 million was included in land and buildings as of December 31, 2015 . Prepaid Revenue Share, Expenses and Other Assets, Non-Current Note Receivable In connection with the sale of our Motorola Mobile business on October 29, 2014 (see Note 9 for additional information), we received an interest-free, three -year prepayable promissory note (the "Note Receivable") due October 2017 from Lenovo. The Note Receivable is included in prepaid revenue share, expenses and other assets, non-current, on our Consolidated Balance Sheets. Based on the general market conditions and the credit quality of Lenovo, we discounted the Note Receivable at an effective interest rate of 4.5% . The outstanding balances are shown in the table below (in millions): As of As of Principal of the Note Receivable $ 1,500 $ 1,448 Less: unamortized discount for the Note Receivable (175 ) (112 ) Total $ 1,325 $ 1,336 As of December 31, 2014 and 2015 , we did not recognize a valuation allowance on the Note Receivable. Accumulated Other Comprehensive Income The components of AOCI, net of tax, were as follows (in millions): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains on Cash Flow Hedges Total Balance as of December 31, 2012 $ (73 ) $ 604 $ 7 $ 538 Other comprehensive income (loss) before reclassifications 89 (392 ) 112 (191 ) Amounts reclassified from AOCI 0 (162 ) (60 ) (222 ) Other comprehensive income (loss) 89 (554 ) 52 (413 ) Balance as of December 31, 2013 $ 16 $ 50 $ 59 $ 125 Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains on Cash Flow Hedges Total Balance as of December 31, 2013 $ 16 $ 50 $ 59 $ 125 Other comprehensive income (loss) before reclassifications (996 ) 505 651 160 Amounts reclassified from AOCI 0 (134 ) (124 ) (258 ) Other comprehensive income (loss) (996 ) 371 527 (98 ) Balance as of December 31, 2014 $ (980 ) $ 421 $ 586 $ 27 Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains on Cash Flow Hedges Total Balance as of December 31, 2014 $ (980 ) $ 421 $ 586 $ 27 Other comprehensive income (loss) before reclassifications (1,067 ) (715 ) 676 (1,106 ) Amounts reclassified from AOCI 0 208 (1,003 ) (795 ) Other comprehensive income (loss) (1,067 ) (507 ) (327 ) (1,901 ) Balance as of December 31, 2015 $ (2,047 ) $ (86 ) $ 259 $ (1,874 ) The effects on net income of amounts reclassified from AOCI were as follows (in millions): Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income Year Ended December 31, AOCI Components Location 2013 2014 2015 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ 158 $ 153 $ (208 ) Net Income (loss) from discontinued operations 43 0 0 Provision for income taxes (39 ) (19 ) 0 Net of tax $ 162 $ 134 $ (208 ) Unrealized gains on cash flow hedges Foreign exchange contracts Revenue $ 95 $ 171 $ 1,399 Interest rate contracts Other income (expense), net 0 4 5 Provision for income taxes (35 ) (51 ) (401 ) Net of tax $ 60 $ 124 $ 1,003 Total amount reclassified, net of tax $ 222 $ 258 $ 795 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2015 Acquisitions bebop Technologies In December 2015, we completed the acquisition of bebop Technologies Inc. (bebop), a company with a cloud-based development platform focused on enterprise applications. The fair value of total consideration transferred in connection with the close was $272 million , of which $1 million was paid in cash and $271 million was paid in the form of Alphabet Class C capital stock. We issued a total of approximately 514 thousand shares of Alphabet Class C capital stock in relation to this acquisition, part of which will be accounted for as compensation expense. The fair value of the shares of capital stock issued was determined based on the closing market price of Alphabet's Class C capital stock as of the close date. The Class C capital stock issued by Alphabet in connection with the acquisition was treated as a capital contribution from Alphabet to Google. We expect the acquisition will help us provide a new platform to build and maintain enterprise applications. As part of the acquisition, Diane Greene, the former CEO of bebop and a member of our Board of Directors, has joined Google. Of the total purchase price of $272 million , $28 million was cash acquired, $59 million was attributed to intangible assets, $206 million was attributed to goodwill, and $21 million was attributed to net liabilities assumed . The goodwill of $206 million is primarily attributable to the synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. Other Acquisitions During the year ended December 31, 2015 , we completed other acquisitions and purchases of intangible assets for total consideration of approximately $263 million . In aggregate, $4 million was cash acquired, $88 million was attributed to intangible assets, $138 million was attributed to goodwill, and $33 million was attributed to net assets acquired . These acquisitions generally enhance the breadth and depth of our offerings, as well as expanding our expertise in engineering and other functional areas. The amount of goodwill expected to be deductible for tax purposes is approximately $20 million . Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated results of operations, either individually or in aggregate. For all acquisitions and purchases completed during the year ended December 31, 2015 , patents and developed technology have a weighted-average useful life of 4.1 years, customer relationships have a weighted-average useful life of 4.0 years, and trade names and other have a weighted-average useful life of 6.8 years. 2014 Acquisitions Nest In February 2014, we completed the acquisition of Nest Labs, Inc. (Nest), a company whose mission is to reinvent devices in the home such as thermostats and smoke alarms. Prior to this transaction, we had an approximately 12% ownership interest in Nest. The acquisition is expected to enhance Google's suite of products and services and allow Nest to continue to innovate upon devices in the home, making them more useful, intuitive, and thoughtful, and to reach more users in more countries. Of the total $2.6 billion purchase price and the fair value of our previously held equity interest of $152 million , $51 million was cash acquired, $430 million was attributed to intangible assets, $2.3 billion was attributed to goodwill, and $84 million was attributed to net liabilities assumed . The goodwill of $2.3 billion is primarily attributable to synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. This transaction is considered a “step acquisition” under GAAP whereby our ownership interest in Nest held before the acquisition was remeasured to fair value at the date of the acquisition. Such fair value was estimated by using discounted cash flow valuation methodologies. Inputs used in the methodologies primarily included projected future cash flows, discounted at a rate commensurate with the risk involved. The gain of $103 million as a result of remeasurement is included in other income (expense), net, on our Consolidated Statements of Income for the year ended December 31, 2014. Dropcam In July 2014, Nest completed the acquisition of Dropcam, Inc. (Dropcam), a company that enables consumers and businesses to monitor their homes and offices via video, for approximately $517 million in cash. With Dropcam on board, Nest expects to continue to reinvent products that will help shape the future of the connected home. Of the total purchase price of $517 million , $11 million was cash acquired, $55 million was attributed to intangible assets, $452 million was attributed to goodwill, and $1 million was attributed to net liabilities assumed . The goodwill of $452 million is primarily attributable to synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. Skybox In August 2014, we completed the acquisition of Skybox Imaging, Inc. (Skybox), a satellite imaging company, for approximately $478 million in cash. We expect the acquisition to keep Google Maps accurate with up-to-date imagery and, over time, improve internet access and disaster relief. Of the total purchase price of $478 million , $6 million was cash acquired, $69 million was attributed to intangible assets, $388 million was attributed to goodwill, and $15 million was attributed to net assets acquired . The goodwill of $388 million is primarily attributable to the synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. Other Acquisitions During the year ended December 31, 2014 , we completed other acquisitions and purchases of intangible assets for total consideration of approximately $1,466 million , which includes the fair value of our previously held equity interest of $33 million . In aggregate, $65 million was cash acquired, $405 million was attributed to intangible assets, $1,045 million was attributed to goodwill, and $49 million was attributed to net liabilities assumed . These acquisitions generally enhance the breadth and depth of our offerings, as well as expanding our expertise in engineering and other functional areas. The amount of goodwill expected to be deductible for tax purposes is approximately $55 million . Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated results of operations, either individually or in aggregate. For all acquisitions and purchases completed during the year ended December 31, 2014 , patents and developed technology have a weighted-average useful life of 5.1 years, customer relationships have a weighted-average useful life of 4.5 years, and trade names and other have a weighted-average useful life of 6.9 years. |
Collaboration Agreement
Collaboration Agreement | 12 Months Ended |
Dec. 31, 2015 | |
Research and Development [Abstract] | |
Collaboration Agreement | Collaboration Agreement On September 18, 2013, we announced the formation of Calico, a life science company with a mission to harness advanced technologies to increase our understanding of the biology that controls lifespan. Calico's results of operations and statement of financial position are included in our consolidated financial statements. As of December 31, 2015 , Google has contributed $240 million to Calico in exchange for Calico convertible preferred units. As of December 31, 2015 , Google has also committed to fund an additional $490 million on an as-needed basis. In September 2014, AbbVie Inc. (AbbVie) and Calico announced a research and development collaboration intended to help both companies discover, develop, and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. As of December 31, 2015 , AbbVie has contributed $750 million to fund the collaboration pursuant to the agreement, which reflects its total commitment. As of December 31, 2015 , Calico has contributed $ 250 million and committed up to an additional $ 500 million . Calico will use its scientific expertise to establish a world-class research and development facility, with a focus on drug discovery and early drug development; and AbbVie will provide scientific and clinical development support and its commercial expertise to bring new discoveries to market. Both companies will share costs and profits equally. AbbVie's contribution has been recorded as a liability on Calico's financial statements, which is reduced and reflected as a reduction to research and development expense as eligible research and development costs are incurred by Calico over the next few years. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill In conjunction with the Alphabet reorganization we are implementing a new operating structure. Consequently, beginning in the fourth quarter of 2015, we have multiple operating segments and reporting units, representing the individual businesses run separately under the Alphabet structure. Refer to Note 16 for further information. In conjunction with the changes to reporting units, we allocated goodwill to each reporting unit based on their relative fair values. The changes in the carrying amount of goodwill allocated to our disclosed segments for the years ended December 31, 2014 and 2015 were as follows (in millions): Google Other Bets Total Consolidated Balance as of December 31, 2013 $ 11,492 $ — $ 11,492 Acquisitions 4,208 — 4,208 Dispositions (43 ) — (43 ) Foreign currency translation and other adjustments (58 ) — (58 ) Balance as of December 31, 2014 $ 15,599 $ — $ 15,599 Acquisitions 139 — 139 Foreign currency translation and other adjustments (71 ) — (71 ) Allocation in the fourth quarter of 2015 (416 ) 416 — Acquisitions 201 4 205 Foreign currency translation and other adjustments 4 (7 ) (3 ) Balance as of December 31, 2015 $ 15,456 $ 413 $ 15,869 Other Intangible Assets Information regarding our purchased intangible assets is as follows (in millions): As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 6,547 $ 2,513 $ 4,034 Customer relationships 1,410 1,168 242 Trade names and other 696 365 331 Total $ 8,653 $ 4,046 $ 4,607 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 6,592 $ 3,213 $ 3,379 Customer relationships 1,343 1,201 142 Trade names and other 795 469 326 Total $ 8,730 $ 4,883 $ 3,847 Patents and developed technology, customer relationships, and trade names and other have weighted-average useful lives from the date of purchase of 7.8 years, 6.0 years, and 5.4 years, respectively. Amortization expense relating to our purchased intangible assets was $1,011 million , $1,079 million , and $892 million for the years ended December 31, 2013 , 2014 , and 2015 . During the year ended December 31, 2014, we recorded an impairment charge in other cost of revenues of $378 million related to a patent licensing royalty asset acquired in connection with the Motorola acquisition, which we retained subsequent to the sale of Motorola Mobile. The asset was determined to be impaired due to prolonged decreased royalty payments and unpaid interest owed and was written down to its fair value. Fair value was determined based on a discounted cash flow method and reflects estimated future cash flows associated with the patent licensing royalty asset at the measurement date and falls within level 3 in fair value hierarchy. Impairments of intangible assets were not material for the year ended December 31, 2015 . As of December 31, 2015 , expected amortization expense for our purchased intangible assets for each of the next five years and thereafter was as follows (in millions): 2016 $ 806 2017 724 2018 637 2019 528 2020 434 Thereafter 718 $ 3,847 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Motorola Mobile On October 29, 2014, we closed the sale of the Motorola Mobile business to Lenovo for a total purchase price of approximately $2.9 billion , including $1.4 billion paid at close, comprised of $660 million in cash and $750 million in Lenovo ordinary shares ( 519.1 million shares). The remaining $1.5 billion was paid in the form of an interest-free, three -year prepayable promissory note. We maintain ownership of the vast majority of the Motorola Mobile patent portfolio, including pre-closing patent applications and invention disclosures, which we licensed to Motorola Mobile for its continued operations. Additionally, in connection with the sale, we agreed to indemnify Lenovo for certain potential liabilities of the Motorola Mobile business, for which we recorded an indemnification liability of $130 million . The sale resulted in a gain of $740 million , net of tax, which was presented as part of net income from discontinued operations in the Consolidated Statements of Income for the year ended December 31, 2014. Incremental to this net gain, we recognized additional income of $254 million , net of tax, in connection with certain IP licensing arrangements between the parties, included as part of net income from discontinued operations on the Consolidated Statements of Income for the year ended December 31, 2014. The financial results of Motorola Mobile through the date of divestiture are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income. The following table presents financial results of the Motorola Mobile business included in net income (loss) from discontinued operations for the years ended December 31, 2013 and 2014 (in millions): Year Ended December 31, 2013 2014 (1) Revenues $ 4,306 $ 5,486 Loss from discontinued operations before income taxes (1,403 ) (177 ) Benefits from/(Provision for) income taxes 270 (47 ) Gain on disposal 0 740 Net (loss) income from discontinued operations $ (1,133 ) $ 516 (1) The operating results of Motorola Mobile were included in our Consolidated Statements of Income from January 1, 2014 through October 29, 2014, the date of divestiture. The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions): Assets: Cash and cash equivalents $ 160 Accounts receivable 1,103 Inventories 217 Prepaid expenses and other current assets 357 Prepaid expenses and other assets, non-current 290 Property and equipment, net 542 Intangible assets, net 985 Goodwill 43 Total assets $ 3,697 Liabilities: Accounts payable $ 1,238 Accrued compensation and benefits 163 Accrued expenses and other current liabilities 10 Deferred revenue, current 165 Other long-term liabilities 250 Total liabilities $ 1,826 Motorola Home On April 17, 2013, we sold the Motorola Home business to Arris for consideration of approximately $2,412 million in cash, including cash of $2,238 million received at the date of close and certain post-close adjustments of $174 million received in the third quarter of 2013, and approximately $175 million in Arris' common stock ( 10.6 million shares). Subsequent to the transaction, we own approximately 7.8% of the outstanding shares of Arris. Additionally, in connection with the disposition, we agreed to indemnify Arris for potential liability from certain intellectual property infringement litigation, for which we recorded an indemnification liability of $175 million , the majority of which was settled subsequent to the disposition. The disposition resulted in a net gain of $757 million , which was presented as part of net income from discontinued operations in the Consolidated Statements of Income for the year ended December 31, 2013. The financial results of Motorola Home through the date of divestiture are presented as net income (loss) from discontinued operations on the Consolidated Statement of Income. The following table presents financial results of the Motorola Home business included in net income (loss) from discontinued operations for the year ended December 31, 2013 (in millions): Year Ended December 31, 2013 (1) Revenues $ 804 Loss from discontinued operations before income taxes (67 ) Benefits from income taxes 16 Gain on disposal 757 Net income from discontinued operations $ 706 (1) The operating results of Motorola Home were included in our Consolidated Statements of Income from January 1, 2013 through April 17, 2013, the date of divestiture. The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions): Assets: Accounts receivable $ 424 Inventories 228 Deferred income taxes, net 144 Prepaid and other current assets 152 Property and equipment, net 282 Intangible assets, net 701 Other assets, non-current 182 Total assets $ 2,113 Liabilities: Accounts payable $ 169 Accrued expenses and other liabilities 289 Total liabilities $ 458 |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net The components of other income (expense), net, were as follows (in millions): Year Ended December 31, 2013 2014 2015 Interest income $ 766 $ 746 $ 999 Interest expense (81 ) (101 ) (104 ) Gain (loss) on marketable securities, net 158 153 (208 ) Foreign currency exchange losses, net (1) (379 ) (402 ) (422 ) Gain (loss) on non-marketable investments, net 8 237 (126 ) Loss on divestiture of businesses (2) (57 ) 0 0 Other 81 130 152 Other income (expense), net $ 496 $ 763 $ 291 (1) Our foreign currency exchange losses,net are related to the option premium costs and forward points for our foreign currency hedging contracts, our foreign exchange transaction gains and losses from the conversion of the transaction currency to the functional currency, offset by the foreign currency hedging contract losses and gains. The net foreign currency transaction losses were $121 million , $107 million , and $123 million in 2013 , 2014 , and 2015 , respectively. (2) Gain on divestiture of Motorola Home business was included in net income (loss) from discontinued operations for the year ended December 31, 2013. Gain on divestiture of Motorola Mobile business was included in net income (loss) from discontinued operations for the year ended December 31, 2014. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases We have entered into various non-cancelable operating lease agreements for certain of our offices, facilities, land, and data centers throughout the world with original lease periods expiring primarily between 2016 and 2063 . We are committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis. As of December 31, 2015 , future minimum payments under non-cancelable operating leases, net of sublease income amounts, were as follows over each of the next five years and thereafter (in millions): Operating Leases Sub-lease Income Net Operating Leases 2016 672 26 646 2017 794 13 781 2018 796 4 792 2019 769 3 766 2020 719 3 716 Thereafter 3,706 1 3,705 Total minimum payments $ 7,456 $ 50 $ 7,406 Certain leases have adjustments for market provisions. Amounts in the above table represent our best estimates of future payments to be made under these leases. We entered into certain non-cancelable lease agreements with original lease periods expiring between 2021 and 2032 where we are the deemed owner for accounting purposes of new construction projects. Future minimum lease payments under such leases total approximately $678 million , of which $422 million is included on the Consolidated Balance Sheet as of December 31, 2015 . These amounts are presented as an asset and corresponding non-current liability, which represents our estimate of construction costs incurred to date. They have been excluded from the table above. Rent expense under operating leases, including co-location arrangements, was $465 million , $570 million , and $734 million in 2013 , 2014 , and 2015 . Purchase Obligations As of December 31, 2015 , we had $1.7 billion of other non-cancelable contractual obligations, primarily related to data center operations and facility build-outs, video and other content licensing revenue sharing arrangements, as well as certain inventory purchase commitments. Letters of Credit As of December 31, 2015 , we had unused letters of credit for $752 million . Indemnifications In the normal course of business, to facilitate transactions in our services and products, we indemnify certain parties, including advertisers, Google Network Members, and lessors with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our officers and directors, and our bylaws contain similar indemnification obligations to our agents. It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows, or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of December 31, 2015 , we did not have any material indemnification claims that were probable or reasonably possible. As part of the sale of Motorola Home and Motorola Mobile businesses, we issued indemnifications for certain potential liabilities. Please see Note 9 for additional information. Legal Matters Antitrust Investigations On November 30, 2010, the European Commission's (EC) Directorate General for Competition opened an investigation into various antitrust-related complaints against us. On April 15, 2015, the EC issued a Statement of Objections (SO) regarding the display and ranking of shopping search results. The EC also opened a formal investigation into Android. We responded to the SO on August 27, 2015 and will continue to cooperate with the EC. The Comision Nacional de Defensa de la Competencia in Argentina, the Competition Commission of India (CCI), Brazil's Council for Economic Defense (CADE), the Canadian Competition Bureau (CCB), and the Federal Antimonopoly Service (FAS) of the Russian Federation have also opened investigations into certain of our business practices. In August 2015, we received the CCI Director General's report with interim findings of competition law infringements regarding search and ads. In September 2015, FAS found that there has been a competition law infringement in Android mobile distribution. We will respond to the CCI's report and have filed an appeal of the FAS decision. In July 2015, the Taiwan Fair Trade Commission informed us that it was closing its antitrust investigations of our business practices. The state attorney general from Mississippi issued subpoenas in 2011 and 2012 in an antitrust investigation of our business practices. We have responded to those subpoenas, and we remain willing to cooperate with them if they have any further information requests. Patent and Intellectual Property Claims We have had patent, copyright, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe the intellectual property rights of others. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services, and may also cause us to change our business practices, and require development of non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to litigate intellectual property disputes because an ultimate loss for a company or its suppliers in an ITC action could result in a prohibition on importing infringing products into the U.S. Since the U.S. is an important market, a prohibition on importation could have an adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating workarounds that may limit certain features of our products. Furthermore, many of our agreements with our customers and partners require us to indemnify them for certain intellectual property infringement claims against them, which would increase our costs as a result of defending such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims. Our customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely impact our business. Other We are also regularly subject to claims, suits, government investigations, and other proceedings involving competition (such as the pending EC investigations described above), intellectual property, privacy, tax, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters. Such claims, suits, government investigations, and other proceedings could result in fines, civil or criminal penalties, or other adverse consequences. Certain of our outstanding legal matters include speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss. We evaluate, on a monthly basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. With respect to our outstanding legal matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. We expense legal fees in the period in which they are incurred. Taxes We are under audit by the Internal Revenue Service (IRS) and various other domestic and foreign tax authorities with regards to income tax and indirect tax matters. We have reserved for potential adjustments to our provision for income taxes and accrual of indirect taxes that may result from examinations by, or any negotiated agreements with, these tax authorities, and we believe that the final outcome of these examinations or agreements will not have a material effect on our results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state, and foreign income tax liabilities and indirect tax liabilities are less than the ultimate assessment, it would result in a further charge to expense. Please see Note 15 for additional information regarding contingencies related to our income taxes. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Alphabet We compute net income per share of Class A and Class B common stock and Class C capital stock using the two-class method. Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of stock options, restricted stock units, and other contingently issuable shares. The dilutive effect of outstanding stock options, restricted stock units, and other contingently issuable shares is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares. The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock and Class C capital stock are identical, except with respect to voting. Further, there are a number of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude our board of directors from declaring or paying unequal per share dividends on our Class A and Class B common stock and Class C capital stock. Specifically, Delaware law provides that amendments to our certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a given class of stock must be approved by the class of stock adversely affected by the proposed amendment. In addition, our certificate of incorporation provides that before any such amendment may be put to a stockholder vote, it must be approved by the unanimous consent of our board of directors. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares and Class C capital stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. The net income per share amounts are the same for Class A and Class B common stock and Class C capital stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. Further, as we assume the conversion of Class B common stock in the computation of the diluted net income per share of Class A common stock, the undistributed earnings are equal to net income for that computation. Stock Split Effected In Form of Stock Dividend In January 2014, our board of directors approved the distribution of shares of Class C capital stock as a dividend to our holders of Class A and Class B common stock (the Stock Split). The Stock Split had a record date of March 27, 2014 and a payment date of April 2, 2014. In the second quarter of 2015, in accordance with a settlement of litigation involving the authorization to distribute Class C capital stock, at the close of trading on April 2, 2015, the last trading day of the 365 day period following the first date the Class C shares traded on NASDAQ (Lookback Period), we determined that a payment (the Adjustment Payment) in the amount of $522 million was due to Class C capital stockholders. The amount of the Adjustment Payment was based on the percentage difference that developed between the volume-weighted average price of Class A and Class C shares during the Lookback Period, as supplied by NASDAQ Data-on-Demand, and was payable to holders of Class C capital stock as of the end of the Lookback Period in cash, Class A common stock, Class C capital stock, or a combination thereof, at the discretion of our board of directors. On April 22, 2015, our board of directors approved the Adjustment Payment in shares of Class C capital stock, and cash in lieu of any fractional shares of Class C capital stock. In May 2015, the Adjustment Payment was made, resulting in the issuance of approximately 853 thousand shares of Class C capital stock, with $475 million reflected in additional-paid in capital and $47 million of cash in lieu of fractional shares of Class C capital stock. In the year ended December 31, 2015, the Adjustment Payment was allocated to the numerator for calculating net income per share of Class C capital stock from net income available to all stockholders and the remaining undistributed earnings were allocated on a pro rata basis to Class A and Class B common stock and Class C capital stock based on the number of shares used in the per share computation for each class of stock. The weighted-average share impact of the Adjustment Payment is included in the denominator of both basic and diluted net income per share computations for the year ended December 31, 2015. In the years ended December 31, 2013 and 2014, the net income per share amounts are the same for Class A and Class B common stock and Class C capital stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with our Amended and Restated Certificate of Incorporation of Alphabet Inc. The par value per share of our shares of Class A and Class B common stock remained unchanged at $0.001 per share after the Stock Split. On the effective date of the Stock Split, a transfer between retained earnings and common stock occurred in an amount equal to the $0.001 par value of the Class C capital stock that was issued. Share and per share amounts for the prior periods presented below have been retroactively adjusted to reflect the Stock Split. Computation of Net Income Per Share The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): Year Ended December 31, 2013 Class A Class B Class C Basic net income (loss) per share: Numerator Allocation of undistributed earnings - continuing operations $ 5,407 $ 1,173 $ 6,580 Allocation of undistributed earnings - discontinued operations (175 ) (38 ) (214 ) Total $ 5,232 $ 1,135 $ 6,366 Denominator Number of shares used in per share computation 273,518 59,328 332,846 Basic net income (loss) per share: Continuing operations $ 19.77 $ 19.77 $ 19.77 Discontinued operations (0.64 ) (0.64 ) (0.64 ) Basic net income per share $ 19.13 $ 19.13 $ 19.13 Diluted net income (loss) per share: Numerator Allocation of undistributed earnings for basic computation - continuing operations $ 5,407 $ 1,173 $ 6,580 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,173 0 0 Reallocation of undistributed earnings 0 (21 ) 0 Allocation of undistributed earnings - continuing operations $ 6,580 $ 1,152 $ 6,580 Allocation of undistributed earnings for basic computation - discontinued operations (175 ) (38 ) (214 ) Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares (38 ) 0 0 Reallocation of undistributed earnings (1 ) 1 1 Allocation of undistributed earnings - discontinued operations $ (214 ) $ (37 ) $ (213 ) Denominator Number of shares used in basic computation 273,518 59,328 332,846 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 59,328 0 0 Employee stock options 2,748 4 2,748 Restricted stock units and other contingently issuable shares 3,215 0 3,215 Number of shares used in per share computation 338,809 59,332 338,809 Diluted net income (loss) per share: Continuing operations $ 19.42 $ 19.42 $ 19.42 Discontinued operations (0.63 ) (0.63 ) (0.63 ) Diluted net income per share $ 18.79 $ 18.79 $ 18.79 Year Ended December 31, 2014 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings - continuing operations $ 5,700 $ 1,107 $ 6,813 Allocation of undistributed earnings - discontinued operations 216 42 258 Total $ 5,916 $ 1,149 $ 7,071 Denominator Number of shares used in per share computation 282,877 54,928 338,130 Basic net income per share: Continuing operations $ 20.15 $ 20.15 $ 20.15 Discontinued operations 0.76 0.76 0.76 Basic net income per share $ 20.91 $ 20.91 $ 20.91 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation - continuing operations $ 5,700 $ 1,107 $ 6,813 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,107 0 0 Reallocation of undistributed earnings (20 ) (18 ) 20 Allocation of undistributed earnings - continuing operations $ 6,787 $ 1,089 $ 6,833 Allocation of undistributed earnings for basic computation - discontinued operations 216 42 258 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 42 0 0 Reallocation of undistributed earnings (1 ) (1 ) 1 Allocation of undistributed earnings - discontinued operations $ 257 $ 41 $ 259 Denominator Number of shares used in basic computation 282,877 54,928 338,130 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 54,928 0 0 Employee stock options 2,057 0 2,038 Restricted stock units and other contingently issuable shares 2,515 0 4,525 Number of shares used in per share computation 342,377 54,928 344,693 Diluted net income per share: Continuing operations $ 19.82 $ 19.82 $ 19.82 Discontinued operations 0.75 0.75 0.75 Diluted net income per share $ 20.57 $ 20.57 $ 20.57 Year Ended December 31, 2015 Class A Class B Class C Basic net income per share: Numerator Adjustment Payment to Class C capital stockholders - continuing operations $ 0 $ 0 $ 522 Allocation of undistributed earnings - continuing operations 6,695 1,196 7,935 Allocation of undistributed earnings - discontinued operations 0 0 0 Total $ 6,695 $ 1,196 $ 8,457 Denominator Number of shares used in per share computation 289,640 51,745 343,241 Basic net income per share: Continuing operations $ 23.11 $ 23.11 $ 24.63 Discontinued operations 0.00 0.00 0.00 Basic net income per share $ 23.11 $ 23.11 $ 24.63 Diluted net income per share: Numerator Adjustment Payment to Class C capital stockholders - continuing operations $ 0 $ 0 $ 522 Allocation of undistributed earnings for basic computation - continuing operations $ 6,695 $ 1,196 $ 7,935 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,196 0 0 Reallocation of undistributed earnings (39 ) (14 ) 39 Allocation of undistributed earnings - continuing operations 7,852 1,182 7,974 Allocation of undistributed earnings for basic computation - discontinued operations 0 0 0 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 0 0 0 Reallocation of undistributed earnings 0 0 0 Allocation of undistributed earnings - discontinued operations $ 0 $ 0 $ 0 Denominator Number of shares used in basic computation 289,640 51,745 343,241 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 51,745 0 0 Employee stock options 1,475 0 1,428 Restricted stock units and other contingently issuable shares 920 0 4,481 Number of shares used in per share computation 343,780 51,745 349,150 Diluted net income per share: Continuing operations $ 22.84 $ 22.84 $ 24.34 Discontinued operations 0.00 0.00 0.00 Diluted net income per share $ 22.84 $ 22.84 $ 24.34 Google Net income per share for Google is not required as its shares are not publicly traded. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Alphabet Reorganization On October 2, 2015, Google implemented a legal reorganization, which resulted in Alphabet owning all of the outstanding stock of Google. Consequently, Google became a direct, wholly owned subsidiary of Alphabet. Each share of each class of Google stock issued and outstanding immediately prior to the legal reorganization automatically converted into an equivalent corresponding share of Alphabet stock, and Google’s stockholders immediately prior to the consummation of the legal reorganization became stockholders of Alphabet. As a result of the reorganization, on October 2, 2015, the Fourth Amended and Restated Certificate of Incorporation of Google was amended to decrease the authorized number of shares of Class A common stock, Class B common stock and Class C capital stock, par value $0.001 per share, from 9 billion shares, 3 billion shares and 3 billion shares, respectively, to 500 shares of each class of stock, respectively. Additionally, the authorized number of shares of preferred stock, par value $0.001 per share, was decreased from 100 million shares to 500 shares. As of December 31, 2015 , Google had 100 shares of Class A common stock, 100 shares of Class B common stock, and 100 shares of Class C capital stock outstanding, of which Alphabet was the sole owner. Alphabet Convertible Preferred Stock Our board of directors has authorized 100 million shares of convertible preferred stock, $0.001 par value, issuable in series. As of December 31, 2014 and 2015 , there were no shares issued or outstanding. Alphabet Class A and Class B Common Stock and Class C Capital Stock Our board of directors has authorized three classes of stock, Class A and Class B common stock, and Class C capital stock. The rights of the holders of each class of our common and capital stock are identical, except with respect to voting. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share. Class C capital stock has no voting rights, except as required by applicable law. Shares of Class B common stock may be converted at any time at the option of the stockholder and automatically convert upon sale or transfer to Class A common stock. Stock Plans As a result of the Alphabet reorganization, on October 2, 2015, Google transferred to Alphabet, and Alphabet assumed, sponsorship of all of Google's stock plans along with all of Google's rights and obligations under each plan. During the year ended December 31, 2014 , shares reserved for future grants under the 2004 Stock Plan expired and we began granting awards from the 2012 Stock Plan (“Stock Plan”). Under our Stock Plan, RSUs or stock options may be granted. An RSU award is an agreement to issue shares of our publicly traded stock at the time the award vests. Incentive and non-qualified stock options, or rights to purchase common stock, are generally granted for a term of 10 years. Options and RSUs granted to participants under the Stock Plan generally vest over four years contingent upon employment or service with us on the vesting date. As of December 31, 2015 , there were 23,336,944 shares of stock reserved for future issuance under our Stock Plan. Stock-Based Compensation The following table presents our aggregate stock-based compensation expense by type of costs and expenses per the Consolidated Statements of Income (in millions): Year Ended December 31, 2013 2014 2015 Cost of revenues $ 469 $ 535 $ 806 Research and development 1,641 2,200 2,687 Sales and marketing 552 715 899 General and administrative 465 725 861 Discontinued operations 216 104 0 Total stock-based compensation expense $ 3,343 $ 4,279 $ 5,253 For the years ended December 31, 2013 , 2014 , and 2015 , we recognized tax benefits on total stock-based compensation expense from continuing operations of $685 million , $867 million , and $1,133 million , respectively, and from discontinued operations of $59 million , $30 million and $0 million , respectively. In addition, as a result of the Tax Court ruling in Altera Corp. v. Commissioner, we have recorded a tax benefit of $522 million related to 2015 stock-based compensation expense that will be subject to reimbursement of cost share payments if the tax court's opinion is sustained. Refer to Note 15 for more detail regarding the Altera case. Of the total stock-based compensation expense from continuing operations recognized in the years ended December 31, 2013 , 2014 , and 2015 , $0 million , $0 million , and $50 million , respectively, was associated with awards ultimately settled in cash. Awards which will be ultimately settled in cash are classified as liabilities in our Consolidated Balance Sheets. Stock-based compensation associated with Alphabet equity awards granted to Google employees in the fourth quarter ended December 31, 2015, was treated as a capital contribution from Alphabet to Google. Stock-based compensation associated with equity awards for the years ended December 31, 2013 , 2014 and 2015 are presented as stock-based compensation expense in Alphabet's and Google's Consolidated Statements of Stockholders' Equity. Alphabet Stock-Based Award Activities The following table summarizes the activities for our options for the year ended December 31, 2015 : Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) (1) Balance as of December 31, 2014 7,240,419 $ 215.56 Granted 0 N/A Exercised (2,072,550 ) $ 189.64 Forfeited/canceled (268,886 ) $ 310.47 Balance as of December 31, 2015 4,898,983 $ 221.31 3.7 $ 2,682 Exercisable as of December 31, 2015 4,462,847 $ 212.02 3.4 $ 2,484 Exercisable as of December 31, 2015 and expected to vest thereafter (2) 4,846,996 $ 220.29 3.6 $ 2,658 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock prices of $778.01 and $758.88 of our Class A common stock and Class C capital stock, respectively, on December 31, 2015 . (2) Options expected to vest reflect an estimated forfeiture rate. The total grant date fair value of stock options vested during 2013 , 2014 and 2015 was $223 million , $94 million , and $33 million . The aggregate intrinsic value of all options and warrants exercised during 2013 , 2014 and 2015 was $1,793 million , $589 million , and $867 million . These amounts do not include the aggregate sales price of options sold under our Transferable Stock Options (TSO) program, which was discontinued as of November 29, 2013. As of December 31, 2015 , there was $12 million of unrecognized compensation cost related to outstanding employee stock options. This amount is expected to be recognized over a weighted-average period of 0.6 years . To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation expense related to these awards will be different from our expectations. The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2015 : Unvested Restricted Stock Units Number of Shares Weighted- Average Grant-Date Fair Value Unvested as of December 31, 2014 24,619,549 $ 487.80 Granted 14,415,740 $ 546.46 Vested (11,182,606 ) $ 442.01 Forfeited/canceled (2,111,497 ) $ 481.37 Unvested as of December 31, 2015 25,741,186 $ 531.74 Expected to vest after December 31, 2015 (1) 22,672,837 $ 531.74 (1) RSUs expected to vest reflect an estimated forfeiture rate. As of December 31, 2015 , there was $11.1 billion of unrecognized compensation cost related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 2.7 years . To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation expense related to these awards will be different from our expectations. Share Repurchases In October 2015, the board of directors of Alphabet authorized the company to repurchase up to $5,099,019,513.59 of its Class C capital stock, commencing in the fourth quarter of 2015. The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through the use of 10b5-1 plans. The repurchase program does not have an expiration date. As of December 31, 2015 , we repurchased and subsequently retired approximately 2,391 thousand shares of Alphabet Class C capital stock for an aggregate amount of approximately $1,780 million . Alphabet's share repurchases in the year ended December 31, 2015 were funded by Google via a return of capital to Alphabet. In January 2016, the board of directors of Alphabet authorized the company to repurchase an additional amount of approximately 514 thousand shares. Google Stockholders' Equity As a result of the Alphabet reorganization, Google has recorded various intercompany activities during the fourth quarter ended December 31, 2015 as capital transactions, which are reflected in Google's Consolidated Statements of Stockholders' Equity. Refer to Stock-Based Compensation and Share Repurchases section above, and Note 6 , for descriptions of certain activities. Additionally, subsequent to the reorganization, shares withheld to satisfy employee withholding tax obligations and cash received from the exercise of stock options were recorded as capital transactions between Alphabet and Google and are reflected as such in Google's Consolidated Statements of Stockholders' Equity. |
401(k) Plans
401(k) Plans | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
401(k) Plans | 401(k) Plans We have two 401(k) Savings Plans (401(k) Plans) that qualify as deferred salary arrangements under Section 401(k) of the Internal Revenue Code. Under these 401(k) Plans, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. We contributed approximately $202 million , $259 million , and $309 million for the years ended December 31, 2013 , 2014 , and 2015 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from continuing operations before income taxes included income from domestic operations of $7,651 million , $8,894 million , and $8,271 million for the years ended December 31, 2013 , 2014 , and 2015 , and income from foreign operations of $8,248 million , $8,365 million , and $11,380 million for the years ended December 31, 2013 , 2014 , and 2015 . The provision for income taxes consists of the following (in millions): Year Ended December 31, 2013 2014 2015 Current: Federal $ 2,394 $ 2,716 $ 3,235 State 127 157 (397 ) Foreign 711 774 723 Total 3,232 3,647 3,561 Deferred: Federal (421 ) 29 (198 ) State 0 6 (43 ) Foreign (72 ) (43 ) (17 ) Total (493 ) (8 ) (258 ) Provision for income taxes $ 2,739 $ 3,639 $ 3,303 The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows (in millions): Year Ended December 31, 2013 2014 2015 Expected provision at federal statutory tax rate (35%) $ 5,567 $ 6,041 $ 6,878 State taxes, net of federal benefit 133 132 (291 ) Change in valuation allowance (641 ) (164 ) (65 ) Foreign rate differential (2,482 ) (2,109 ) (2,624 ) Federal research credit (433 ) (318 ) (407 ) Basis difference in investment of Arris 644 0 0 Other adjustments (49 ) 57 (188 ) Provision for income taxes $ 2,739 $ 3,639 $ 3,303 A retroactive and permanent reinstatement of the federal research credit was signed into law on December 18, 2015 in accordance with the Protecting Americans from Tax Hikes Act of 2015. As such, our effective tax rate for 2015 reflects the benefit of the 2015 federal research and development tax credit. A retroactive extension of the 2012 federal research and development credit was signed into law on January 2, 2013 in accordance with The American Taxpayer Act of 2012. The benefit of $189 million related to the 2012 federal research and development credit is included in the year ended December 31, 2013. Our effective tax rate for 2015 included a discrete tax benefit related to refunds and reductions in uncertain tax positions due to the resolution of a multi-year tax audit in the U.S. Our effective tax rate is impacted by earnings realized in foreign jurisdictions with statutory tax rates lower than the federal statutory tax rate. Substantially all of the income from foreign operations was earned by an Irish subsidiary. We have not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as of December 31, 2015 because we intend to permanently reinvest such earnings outside the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of December 31, 2015 , the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $58.3 billion . Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. On July 27, 2015, the United States Tax Court, in an opinion in Altera Corp. v. Commissioner, invalidated the portion of the Treasury regulations issued under IRC Section 482 requiring related-party participants in a cost sharing arrangement to share stock-based compensation costs. The U.S. Tax Court issued the final decision on December 28, 2015. The government has 90 days from the final decision date to file a notice of appeal. At this time, the U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. We have evaluated the opinion and have recorded a tax benefit of $3.5 billion related to reimbursement of cost share payments for the previously shared stock-based compensation costs. In addition, we have recorded a tax liability of $3.5 billion for the U.S. tax cost of potential repatriation of the associated contingent foreign earnings because at this time we cannot reasonably conclude that the Company has the ability and the intent to indefinitely reinvest these contingent earnings. The net impact to our consolidated financial statements is not material. We will continue to monitor developments related to the case and the potential impact on our consolidated financial statements. Deferred Income Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows (in millions): As of December 31, 2014 2015 Deferred tax assets: Stock-based compensation expense $ 376 $ 534 State taxes 133 119 Investment loss 133 144 Legal settlement accruals 175 101 Accrued employee benefits 671 832 Accruals and reserves not currently deductible 175 245 Net operating losses 207 230 Tax credits 262 503 Basis difference in investment of Arris 1,347 1,357 Prepaid cost sharing 0 3,468 Other 243 337 Total deferred tax assets 3,722 7,870 Valuation allowance (1,659 ) (1,732 ) Total deferred tax assets net of valuation allowance 2,063 6,138 Deferred tax liabilities: Depreciation and amortization (852 ) (1,126 ) Identified intangibles (965 ) (787 ) Mark-to-market investments (273 ) (93 ) Renewable energy investments (430 ) (529 ) Foreign earnings 0 (3,468 ) Other (125 ) (73 ) Total deferred tax liabilities (2,645 ) (6,076 ) Net deferred tax liabilities $ (582 ) $ 62 As of December 31, 2015 , our federal and state net operating loss carryforwards for income tax purposes were approximately $482 million and $443 million . If not utilized, the federal net operating loss carryforwards will begin to expire in 2021 and the state net operating loss carryforwards will begin to expire in 2016. The net operating loss carryforwards are subject to various annual limitations under the tax laws of the different jurisdictions. Our foreign net operating loss carryforwards for income tax purposes were $263 million that can be carried over indefinitely. As of December 31, 2015 , our California research and development credit carryforwards for income tax purposes were approximately $1,044 million that can be carried over indefinitely. We believe the state tax credit is not likely to be realized. Our foreign tax credit carryforwards for income tax purposes were approximately $223 million that will start to expire in 2025. We believe it is more likely than not that all of the foreign tax credit will be realized. As of December 31, 2015 , we maintained a valuation allowance with respect to certain of our deferred tax assets relating primarily to investment losses that are capital in nature, California deferred tax assets, and certain foreign net operating losses that we believe are not likely to be realized. We established a deferred tax asset for the book-to-tax basis difference in our investments in Arris shares received from the sale of the Motorola Home business to Arris in 2013. Since any future losses to be recognized upon the sale of Arris shares will be capital losses, a valuation allowance has been recorded against this deferred tax asset to the extent such deferred tax asset is not covered by capital gains generated as of 2015. We reassess the valuation allowance quarterly and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. As a result of the Altera opinion, we have recorded a deferred tax asset of $3.5 billion and a deferred tax liability of $3.5 billion . Refer to above for more details on the Altera case. Uncertain Tax Positions The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2013 to December 31, 2015 (in millions): Balance as of January 1, 2013 $ 1,907 Increases related to prior year tax positions 158 Decreases related to prior year tax positions (37 ) Decreases related to settlement with tax authorities (78 ) Increases related to current year tax positions 552 Balance as of December 31, 2013 2,502 Increases related to prior year tax positions 66 Decreases related to prior year tax positions (44 ) Decreases related to settlement with tax authorities (1 ) Increases related to current year tax positions 771 Balance as of December 31, 2014 3,294 Increases related to prior year tax positions 224 Decreases related to prior year tax positions (176 ) Decreases related to settlement with tax authorities (27 ) Increases related to current year tax positions 852 Balance as of December 31, 2015 $ 4,167 The total amount of gross unrecognized tax benefits was $2,502 million , $3,294 million , and $4,167 million as of December 31, 2013 , 2014 , and 2015 , respectively, of which, $2,309 million , $2,909 million , and $3,614 million , if recognized, would affect our effective tax rate. As of December 31, 2014 and 2015 , we had accrued $239 million and $348 million in interest and penalties in provision for income taxes. We file income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions, our two major tax jurisdictions are the U.S. federal and Ireland. We are subject to the continuous examination of our income tax returns by the IRS and other tax authorities. The IRS completed its examination of our 2003 through 2006 tax years; all issues have been settled except for one which we have filed an appeal with the IRS and plan to litigate in court. The IRS is currently in examination of our 2007 through 2012 tax years. We have also received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend any and all such claims as presented. Our 2013, 2014, and 2015 tax years remain subject to examination by the IRS for U.S. federal tax purposes, and our 2011 through 2015 tax years remain subject to examination by the appropriate governmental agencies for Irish tax purposes. There are other ongoing audits in various other jurisdictions that are not material to our financial statements. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner not consistent with management's expectations, we could be required to adjust our provision for income taxes in the period such resolution occurs. Although the timing of resolution, settlement, closure of audits is not certain, we do not believe it is reasonably possible that our unrecognized tax benefits will materially change in the next 12 months. |
Information about Segments and
Information about Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Information about Segments and Geographic Areas | Information about Segments and Geographic Areas In conjunction with the Alphabet reorganization, in the fourth quarter of 2015, we implemented legal and operational changes in how our Chief Operating Decision Maker (CODM) manages our businesses, including resource allocation and performance assessment. Consequently, we have multiple operating segments, representing the individual businesses run separately under the Alphabet structure. Google is our only reportable segment. None of our other segments meet the quantitative thresholds to qualify as reportable segments; therefore, the operating segments are combined and disclosed below as Other Bets. All prior-period amounts have been adjusted retrospectively to reflect the reportable segment change. Our reported segments are described below: • Google – Google includes our main internet products such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, Google Play as well as hardware products we sell, such as Chromecast, Chromebooks and Nexus. Our technical infrastructure and newer efforts like Virtual Reality are also included in Google. Google generates revenues primarily from advertising, sales of digital content, apps and cloud services, as well as sales of Google branded hardware. • Other Bets – Other Bets is a combination of multiple operating segments that are not individually material. Other Bets includes businesses such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X, and other initiatives. Revenues from the Other Bets is derived primarily through the sales of Nest hardware products, internet and TV services through Google Fiber and licensing and R&D services through Verily. Revenue, cost of revenue, and operating expenses are generally directly attributed to our segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. Our CODM does not evaluate operating segments using asset information. Information about segments during the periods presented were as follows (in millions): Year Ended December 31, 2013 2014 2015 Revenues: Google $ 55,507 $ 65,674 $ 74,541 Other Bets 12 327 448 Total revenues $ 55,519 $ 66,001 $ 74,989 Year Ended December 31, 2013 2014 2015 Segment operating income (loss): Google $ 16,260 $ 19,011 $ 23,425 Other Bets (527 ) (1,942 ) (3,567 ) Reconciling items (1) (330 ) (573 ) (498 ) Total income from operations $ 15,403 $ 16,496 $ 19,360 (1) Reconciling items are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. Year Ended December 31, 2013 2014 2015 Capital expenditures: Google $ 7,006 $ 11,173 $ 8,849 Other Bets 187 501 869 Reconciling items (2) 165 (715 ) 197 Total capital expenditures as presented in Consolidated Statements of Cash Flow $ 7,358 $ 10,959 $ 9,915 (2) Reconciling items are primarily related to timing differences of payments as segment capital expenditures are on accrual basis while total capital expenditures shown on the Consolidated Statements of Cash Flow are on cash basis, capital expenditures of Motorola Mobile and Home, and other miscellaneous differences. Stock-based compensation and depreciation, amortization and impairment are included in segment operating income (loss) as below (in millions): Year Ended December 31, 2013 2014 2015 Stock-based compensation: Google $ 2,911 $ 3,677 $ 4,587 Other Bets 124 347 498 Reconciling items (3) 92 151 118 Total stock based compensation, excluding discontinued operations (4) $ 3,127 $ 4,175 $ 5,203 Depreciation, amortization and impairment: Google $ 3,668 $ 4,778 $ 4,839 Other Bets 24 148 203 Reconciling items (5) 247 53 21 Total depreciation, amortization and impairment as presented in Consolidated Statements of Cash Flow $ 3,939 $ 4,979 $ 5,063 (3) Reconciling items represent corporate administrative costs that are not allocated to individual segments. (4) For purposes of segment reporting, we define SBC as awards accounted for under FASB ASC Topic 718 that we expect to settle in stock. SBC does not include expenses related to awards that we will ultimately settle in cash. Amounts exclude SBC from discontinued operations . (5) Reconciling items primarily represent depreciation, amortization and impairment related to Motorola Mobile and Motorola Home. Revenues by geography are based on the billing addresses of our customers. The following tables set forth revenues and long-lived assets by geographic area (in millions): Year Ended December 31, 2013 2014 2015 Revenues: United States $ 25,587 $ 29,482 $ 34,810 United Kingdom 5,600 6,483 7,067 Rest of the world 24,332 30,036 33,112 Total revenues $ 55,519 $ 66,001 $ 74,989 As of As of Long-lived assets: United States $ 37,421 $ 43,686 International 13,110 13,661 Total long-lived assets $ 50,531 $ 57,347 |
Revision of Previously Issued F
Revision of Previously Issued Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities, and as a consequence, we revised our income tax expense for periods beginning in 2008 through the first quarter of 2015 in the cumulative amount of $711 million . We have evaluated the materiality of the income tax expense impact quantitatively and qualitatively and concluded it was not material to any of the prior periods impacted and that correction of income tax expense as an out of period adjustment in the quarter ended June 30, 2015 is not material to our consolidated financial statements for the year ended December 31, 2015. Consolidated revenues are not impacted. We elected to revise previously issued consolidated financial statements contained within this Annual Report on Form 10-K for the periods impacted to correct the effect of this immaterial income tax expense underaccrual for the corresponding periods. The following table presents the impact of these corrections on affected Consolidated Balance Sheet line items as of December 31, 2014 (in millions): As of December 31, 2014 As Previously Reported (1) Adjustment As Revised Selected Balance Sheets Data: Income tax receivable, net $ 1,298 $ (707 ) $ 591 Total current assets 79,363 (707 ) 78,656 Total assets 129,894 (707 ) 129,187 Income taxes payable, non-current 3,407 (67 ) 3,340 Retained earnings 75,706 (640 ) 75,066 Total stockholders' equity 104,500 (640 ) 103,860 Total liabilities and stockholders' equity $ 129,894 $ (707 ) $ 129,187 (1) Includes reclassifications of deferred tax assets and liabilities related to ASU 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” Refer to Note 1 for further information. The following table presents the impact of these corrections on affected Consolidated Statements of Income line items, including net income per share amounts for Class A and B common stock and Class C capital stock, for the years ended December 31, 2013 and 2014 (in millions, except per share amounts): Year Ended December 31, 2013 Year Ended December 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Income Data: Provision for income taxes $ 2,552 $ 187 $ 2,739 $ 3,331 $ 308 $ 3,639 Net income from continuing operations 13,347 (187 ) $ 13,160 13,928 (308 ) $ 13,620 Net income 12,920 (187 ) $ 12,733 14,444 (308 ) $ 14,136 Basic net income per share from continuing operations $ 20.05 $ (0.28 ) $ 19.77 $ 20.61 $ (0.46 ) $ 20.15 Basic net income per share 19.41 (0.28 ) 19.13 21.37 (0.46 ) 20.91 Diluted net income per share from continuing operations 19.70 (0.28 ) 19.42 20.27 (0.45 ) 19.82 Diluted net income per share $ 19.07 $ (0.28 ) $ 18.79 $ 21.02 $ (0.45 ) $ 20.57 The following table presents the impact of these corrections on affected Consolidated Statements of Comprehensive Income line items for the years ended December 31, 2013 and 2014 (in millions): Year Ended December 31, 2013 Year Ended December 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Comprehensive Income Data: Net income 12,920 (187 ) 12,733 14,444 (308 ) 14,136 Comprehensive income 12,507 (187 ) 12,320 14,346 (308 ) 14,038 The following table presents the impact of these corrections on affected Consolidated Statements of Cash Flows line items for the years ended December 31, 2013 and 2014 (in millions): Year Ended December 31, 2013 Year Ended December 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Cash Flows Data: Net income $ 12,920 $ (187 ) 12,733 $ 14,444 $ (308 ) $ 14,136 Changes in income taxes, net 401 187 588 283 308 591 |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts The table below details the activity of the allowance for doubtful accounts for the three years ended December 31, 2015 (in millions): Balance at Beginning of Year Additions Usage Balance at End of Year (In millions) Year ended December 31, 2013 $ 581 $ 1,128 $ (1,078 ) $ 631 Year ended December 31, 2014 $ 631 $ 1,240 $ (1,646 ) $ 225 Year ended December 31, 2015 $ 225 $ 579 $ (508 ) $ 296 Note: Additions to the allowance for doubtful accounts are charged to expense. Additions to the allowance for sales credits are charged against revenues. For the year ended December 31, 2013 and 2014, additions included the impact from the Motorola acquisition. For the years ended December 31, 2013 and 2014, usages include the impact from the sale of Motorola Home and Mobile businesses, respectively. |
Nature of Operations and Summ27
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations We were incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. We generate revenues primarily by delivering relevant, cost-effective online advertising. On April 17, 2013, we sold the Motorola Home business (Motorola Home) to Arris Group, Inc. (Arris). The financial results of Motorola Home are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income for the year ended December 31, 2013. See Note 9 for further discussion of the sale. On April 2, 2014, we completed a two -for-one stock split effected in the form of a stock dividend (the Stock Split). All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the Stock Split. See Note 12 for additional information about the Stock Split. On October 29, 2014, we sold the Motorola Mobile business (Motorola Mobile) to Lenovo Group Limited (Lenovo). The financial results of Motorola Mobile are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income for the years ended December 31, 2013 and 2014. See Note 9 for further discussion of the sale. On August 10, 2015, we announced plans to create a new public holding company, Alphabet Inc. (Alphabet), and a new operating structure. On October 2, 2015, we implemented the holding company reorganization, and as a result, Alphabet became the successor issuer to Google Inc. (Google). The implementation of the holding company reorganization on October 2, 2015 was accounted for as a merger under common control. Alphabet has recognized the assets and liabilities of Google at carryover basis. The consolidated financial statements of Alphabet present comparative information for prior years on a combined basis, as if both Alphabet and Google were under common control for all periods presented. The consolidated financial statements and notes thereto are being presented in a combined report being filed by two separate registrants: Alphabet and Google. The Consolidated Statements of Stockholders’ Equity and Consolidated Statements of Cash Flows are the only statements with differences between Alphabet and Google. The differences relate to transactions between Alphabet and Google which are accounted for as capital transactions. Refer to Note 13 for additional information. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements of Alphabet and Google include the accounts of Alphabet and Google, respectively, and all wholly owned subsidiaries as well as all variable interest entities where we are the primary beneficiary. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Revenue Recognition | Revenue Recognition The following table presents our revenues by segment and revenue source (in millions): Year Ended December 31, 2013 2014 2015 Google segment Google websites $ 37,422 $ 45,085 $ 52,357 Google Network Members' websites (1) 13,650 14,539 15,033 Google advertising revenues 51,072 59,624 67,390 Google other revenues (1) 4,435 6,050 7,151 Google segment revenues $ 55,507 $ 65,674 $ 74,541 Other Bets Other Bets revenues $ 12 $ 327 $ 448 Consolidated revenues $ 55,519 $ 66,001 $ 74,989 (1) Prior period amounts have been adjusted to reflect the reclassification primarily related to DoubleClick ad serving software revenues from Google other revenues to Advertising Revenues from Google Network Members' websites to conform with current period presentation. We generate revenues primarily by delivering performance and brand advertising. Performance advertising creates and delivers relevant ads that users will click, leading to direct engagement with advertisers. Brand advertising enhances users’ awareness of and affinity with advertisers’ products and services, through videos, text, images, and other ads that run across various devices. Google AdWords is our auction-based advertising program that enables performance advertisers to place text-based and display ads on Google websites and our Google Network Members’ websites. Google AdSense refers to the online programs through which we distribute our advertisers’ AdWords ads for display on our Google Network Members’ websites. Most of our customers pay us on a cost-per-click basis, which means that an advertiser pays us only when a user engages with the ads by clicking on an ad on Google websites or Google Network Members' websites or by viewing YouTube engagement ads like TrueView (counted as an engagement when the user chooses not to skip the ad). We also offer advertising on a cost-per-impression basis that enables our brand advertisers to pay us based on the number of times their ads display on Google websites and our Google Network Members’ websites as specified by the advertisers. Revenue from advertising is recognized when the services have been provided or delivered, the fees we charge are fixed or determinable, we and our advertisers or other customers understand the specific nature and terms of the agreed upon transactions, and collectability is reasonably assured. We recognize as revenues the fees charged to advertisers each time a user clicks on one of the ads that appears next to the search results or content on Google websites or our Google Network Members’ websites. For those advertisers using our cost-per-impression pricing, we recognize as revenues the fees charged to advertisers each time their ads are displayed on Google websites or our Google Network Members’ websites. We report our Google AdSense revenues and traffic acquisition costs due to our Google Network Members on a gross basis principally because we are the primary obligor to our advertisers. Revenue from hardware sales to end customers or through distribution channels is generally recognized when products have been shipped, risk of loss has transferred to the customer, objective evidence exists that customer acceptance provisions have been met, no significant obligations remain and allowances for discounts, price protection, returns and customer incentives can be reasonably and reliably estimated. Revenues are reported net of these allowances. Where these allowances cannot be reasonably and reliably estimated, we recognize revenue at the time the product sells through the distribution channel to the end customer or when the return period elapsed, as applicable. For the sale of certain third-party products and services, we evaluate whether it is appropriate to recognize revenue based on the gross amount billed to the customers or the net amount earned as revenue share. Generally, when we record revenue on a gross basis, we are the primary obligor in a transaction, and have also considered other factors, including whether we are subject to inventory risk or have latitude in establishing prices. For multi-element arrangements, including those that contain software essential to hardware products’ functionality and services, we allocate revenue to each unit of accounting based on their relative selling prices. In such circumstances, we use a hierarchy to determine the selling prices to be used for allocating revenue: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price, and (iii) best estimate of the selling price (ESP). VSOE generally exists only when we sell the deliverable separately and is the price actually charged by us for that deliverable. ESPs reflect our best estimates of what the selling price of the deliverable would be if it was sold regularly on a stand-alone basis. We record deferred revenues when cash payments are received in advance of our performance in the underlying agreement on the accompanying Consolidated Balance Sheets. |
Cost of Revenues | Cost of Revenues Cost of revenues consists of traffic acquisition costs which are the advertising revenues shared with our Google Network Members and the amounts paid to our distribution partners who distribute our browser or otherwise direct search queries to our website. Additionally, other costs of revenues includes the following: • The expenses associated with the operation of our data centers (including depreciation, labor, energy, and bandwidth costs); • Content acquisition costs primarily related to payments to certain content providers from whom we license their video and other content for distribution on YouTube and Google Play (we share most of the fees these sales generate with content providers or pay a fixed fee to these content providers); • Credit card and other transaction fees related to processing customer transactions; • Stock-based compensation expense; • Revenue share payments to mobile carriers; • Inventory costs for hardware we sell; and • Amortization of certain intangible assets. |
Stock-based Compensation | Stock-based Compensation Restricted stock units (RSUs) are measured based on the fair market value of the underlying stock on the date of grant. Shares are issued on the vesting dates net of the minimum statutory tax withholding to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding. We record the liability for withholding amounts to be paid by us primarily as a reduction to additional paid-in capital when paid. For stock option awards, we determined fair value using the Black-Scholes-Merton (BSM) option pricing model on the date of grant . Stock-based compensation includes awards we expect to settle in Alphabet stock as well as awards we will ultimately settle in cash. We recognize stock-based compensation, less an estimate for forfeitures, using the straight-line method over the requisite service period. Additionally, stock-based compensation for liability classified awards reflect changes in fair value during the requisite service period. We include as part of cash flows from financing activities the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for options exercised and RSUs vested during the period. During the years ended December 31, 2013 , 2014 , and 2015 , the amount of cash received from the exercise of stock options was $1,174 million , $465 million , and $393 million , respectively. We have elected to account for the indirect effects of stock-based awards -- primarily the research and development tax credit -- through the Consolidated Statements of Income. Total direct tax benefit realized, including the excess tax benefit, from stock-based award activities during the years ended December 31, 2013 , 2014 , and 2015 , was $1,195 million , $1,356 million , and $1,544 million , respectively. |
Certain Risks and Concentrations | Certain Risks and Concentrations Our revenues are primarily derived from online advertising, the market for which is highly competitive and rapidly changing. In addition, our revenues are generated from a multitude of vertical market segments in countries around the world. Significant changes in this industry or changes in customer buying or advertiser spending behavior could adversely affect our operating results. We are subject to concentrations of credit risk principally from cash and cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable. Cash equivalents and marketable securities consist primarily of time deposits, money market and other funds, including cash collateral received related to our securities lending program, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments and municipalities in the U.S., corporate securities, agency mortgage-backed securities, and asset-backed securities. Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts receivable are typically unsecured and are derived from revenues earned from customers located around the world. In 2013 , 2014 , and 2015 , we generated approximately 46% , 45% , and 46% of our revenues from customers based in the U.S., with the majority of revenues from customers outside of the U.S. located in Europe and Japan. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend, but generally we do not require collateral from our customers. We maintain reserves for estimated credit losses and these losses have generally been within our expectations. No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2013 , 2014 , or 2015 . |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial assets and financial liabilities that include cash equivalents, marketable securities, foreign currency and interest rate derivative contracts, and non-marketable debt securities are measured and recorded at fair value on a recurring basis. We measure certain financial assets at fair value for disclosure purposes, as well as, on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 - Unobservable inputs that are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
Cash, Cash Equivalents, and Marketable Securities | Cash, Cash Equivalents, and Marketable Securities We invest all excess cash primarily in debt securities including those of the U.S. government and its agencies, corporate debt securities, agency mortgage-backed securities, money market and other funds, municipal securities, time deposits, asset backed securities, and debt instruments issued by foreign governments. We classify all investments that are readily convertible to known amounts of cash and have stated maturities of three months or less from the date of purchase as cash equivalents and those with stated maturities of greater than three months as marketable securities. We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as available-for-sale. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell these securities prior to their stated maturities. As we view these securities as available to support current operations, we classify highly liquid securities with maturities beyond 12 months as current assets under the caption marketable securities in the accompanying Consolidated Balance Sheets. We carry these securities at fair value, and report the unrealized gains and losses, net of taxes, as a component of stockholders’ equity, except for unrealized losses determined to be other-than-temporary, which we record within other income (expense), net. We determine any realized gains or losses on the sale of marketable securities on a specific identification method, and we record such gains and losses as a component of other income (expense), net. |
Non Marketable Equity Investments | Non-Marketable Investments We have accounted for non-marketable equity investments either under the equity or cost method. Investments through which we exercise significant influence but do not have control over the investee are accounted for under the equity method. Investments through which we are not able to exercise significant influence over the investee are accounted for under the cost method. We have accounted for our non-marketable investments that meet the definition of a debt security as available-for-sale securities. Since these securities do not have contractual maturity dates and we do not intend to liquidate them in the next 12 months, we have classified them as non-current assets on the accompanying Consolidated Balance Sheet. |
Variable Interest Entities | Variable Interest Entities We make a determination at the start of each arrangement whether an entity in which we have made an investment is considered a Variable Interest Entity (“VIE”). We consolidate VIEs in which we have a controlling financial interest. If we do not have a controlling financial interest in a VIE, we account for the investment under either the equity or cost method. |
Impairment of Marketable and Non-Marketable Securities | Impairment of Marketable and Non-Marketable Investments We periodically review our marketable and non-marketable investments for impairment. If we conclude that any of these investments are impaired, we determine whether such impairment is other-than-temporary. Factors we consider to make such determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and our intent to sell. For debt securities, we also consider whether (1) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result of credit losses. If any impairment is considered other-than-temporary, we will write down the asset to its fair value and record the corresponding charge as other income (expense), net. |
Accounts Receivable | Accounts Receivable We record accounts receivable at the invoiced amount and we normally do not charge interest. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review the accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. We also maintain a sales allowance to reserve for potential credits issued to customers. We determine the amount of the reserve based on historical credits issued. |
Property and Equipment | Property and Equipment We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets, generally two to five years. We depreciate buildings over periods up to 25 years. We amortize leasehold improvements over the shorter of the remaining lease term or the estimated useful lives of the assets. Construction in progress is the construction or development of property and equipment that have not yet been placed in service for our intended use. Depreciation for equipment commences once it is placed in service and depreciation for buildings and leasehold improvements commences once they are ready for our intended use. Land is not depreciated. |
Software Development Costs | Software Development Costs We expense software development costs, including costs to develop software products or the software component of products to be marketed to external users, before technological feasibility is reached. Technological feasibility is typically reached shortly before the release of such products and as a result, development costs that meet the criteria for capitalization were not material for the periods presented. Software development costs also include costs to develop software to be used solely to meet internal needs and cloud based applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Costs capitalized for developing such software applications were not material for the periods presented. |
Business Combinations | Business Combinations We include the results of operations of the businesses that we acquire as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. |
Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets | Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets We review property and equipment, long-term prepayments and intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. In 2014, we recorded impairments of intangible assets, including an impairment of $378 million in the third quarter of 2014 related to a patent licensing royalty asset. Impairments of intangible assets were not material in 2015. We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. We test our goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. No goodwill impairment has been identified in any of the years presented. Intangible assets with definite lives are amortized over their estimated useful lives. We amortize our acquired intangible assets on a straight-line basis with definite lives over periods ranging from one to twelve years. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, under which we recognize the amount of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. We measure current and deferred tax assets and liabilities based on provisions of enacted tax law. We evaluate the realization of our deferred tax assets based on all available evidence and establish a valuation allowance to reduce deferred tax assets when it is more-likely-than-not that they will not be realized. We recognize the financial statement effects of a tax position when it is more-likely-than not that, based on technical merits, the position will be sustained upon examination. The tax benefits of the position recognized in the financial statements are then measured based on the largest amount of benefit that is greater than 50% likely to be realized upon settlement with a taxing authority. In addition, we recognize interest and penalties related to unrecognized tax benefits as a component of the income tax provision. |
Foreign Currency | Foreign Currency Generally, the functional currency of our international subsidiaries is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average rates for the annual period derived from month-end exchange rates for revenues, costs, and expenses. We record translation gains and losses in accumulated other comprehensive income as a component of stockholders’ equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange losses in other income (expense), net. |
Advertising and Promotional Expenses | Advertising and Promotional Expenses We expense advertising and promotional costs in the period in which they are incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. In June 2014, the FASB issued Accounting Standards Update No. 2014-10 (ASU 2014-10) "Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation." ASU 2014-10 removes the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification (ASC) thereby removing the financial reporting distinction between development stage entities and other reporting entities. The additional elimination of related consolidation guidance will require companies with interests in development stage entities to reassess whether such entities are variable interest entities under ASC Topic 810, Consolidation. We will adopt this standard in the first quarter of 2016 on a retrospective basis. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. We will adopt this standard in the first quarter of 2016 on a retrospective basis. We do not expect the adoption of this standard to have a material impact on our consolidated statement of operations or consolidated balance sheet, but it may result in additional disclosures. In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (ASU 2015-17) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax liabilities and assets into current and noncurrent amounts in the consolidated balance sheet statement of financial position. The amendments in the update require that all deferred tax liabilities and assets be classified as noncurrent in the consolidated balance sheet. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods therein and may be applied either prospectively or retrospectively to all periods presented. Early adoption is permitted. We have early adopted this standard in the fourth quarter of 2015 on a retrospective basis. Prior periods have been retrospectively adjusted. As a result of the adoption of ASU 2015-17, the Company made the following adjustments to the 2014 balance sheet: a $1,322 million decrease to current deferred tax assets, a $83 million increase to noncurrent deferred tax asset, a $26 million decrease to current deferred tax liability, and a decrease of $1,213 million to noncurrent deferred tax liability. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 (ASU 2016-01) "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2016-01 amends various aspects of the recognition, measurement, presentation, and disclosure for financial instruments. With respect to our consolidated financial statements, the most significant impact relates to the accounting for equity investments. It will impact the disclosure and presentation of financial assets and liabilities. ASU 2016-01 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2017. Early adoption by public entities is permitted only for certain provisions. We are currently in the process of evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Prior Period Reclassifications | Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Nature of Operations and Summ28
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Revenues by Revenue Source | The following table presents our revenues by segment and revenue source (in millions): Year Ended December 31, 2013 2014 2015 Google segment Google websites $ 37,422 $ 45,085 $ 52,357 Google Network Members' websites (1) 13,650 14,539 15,033 Google advertising revenues 51,072 59,624 67,390 Google other revenues (1) 4,435 6,050 7,151 Google segment revenues $ 55,507 $ 65,674 $ 74,541 Other Bets Other Bets revenues $ 12 $ 327 $ 448 Consolidated revenues $ 55,519 $ 66,001 $ 74,989 (1) Prior period amounts have been adjusted to reflect the reclassification primarily related to DoubleClick ad serving software revenues from Google other revenues to Advertising Revenues from Google Network Members' websites to conform with current period presentation. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of cash and short-term investments | The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of December 31, 2014 and 2015 (in millions): As of December 31, 2014 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Marketable Cash $ 9,863 $ 0 $ 0 $ 9,863 $ 9,863 $ 0 Level 1: Money market and other funds 2,532 0 0 2,532 2,532 0 U.S. government notes 15,320 37 (4 ) 15,353 1,128 14,225 Marketable equity securities 988 428 (64 ) 1,352 0 1,352 18,840 465 (68 ) 19,237 3,660 15,577 Level 2: Time deposits (1) 2,409 0 0 2,409 2,309 100 Money market and other funds (2) 1,762 0 0 1,762 1,762 0 Fixed-income bond funds (3) 385 0 (38 ) 347 0 347 U.S. government agencies 2,327 8 (1 ) 2,334 750 1,584 Foreign government bonds 1,828 22 (10 ) 1,840 0 1,840 Municipal securities 3,370 33 (6 ) 3,397 3 3,394 Corporate debt securities 11,499 114 (122 ) 11,491 0 11,491 Agency mortgage-backed securities 8,196 109 (42 ) 8,263 0 8,263 Asset-backed securities 3,456 1 (5 ) 3,452 0 3,452 35,232 287 (224 ) 35,295 4,824 30,471 Total $ 63,935 $ 752 $ (292 ) $ 64,395 $ 18,347 $ 46,048 As of December 31, 2015 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Cash $ 7,380 $ 0 $ 0 $ 7,380 $ 7,380 $ 0 Level 1: Money market and other funds 5,623 0 0 5,623 5,623 0 U.S. government notes 20,922 27 (48 ) 20,901 258 20,643 Marketable equity securities 692 155 0 847 0 847 27,237 182 (48 ) 27,371 5,881 21,490 Level 2: Time deposits (1) 3,223 0 0 3,223 2,012 1,211 Money market and other funds (2) 1,140 0 0 1,140 1,140 0 Fixed-income bond funds (3) 219 0 0 219 0 219 U.S. government agencies 1,367 2 (3 ) 1,366 0 1,366 Foreign government bonds 2,242 14 (23 ) 2,233 0 2,233 Municipal securities 3,812 47 (4 ) 3,855 0 3,855 Corporate debt securities 13,809 53 (278 ) 13,584 136 13,448 Agency mortgage-backed securities 9,680 48 (57 ) 9,671 0 9,671 Asset-backed securities 3,032 0 (8 ) 3,024 0 3,024 38,524 164 (373 ) 38,315 3,288 35,027 Total $ 73,141 $ 346 $ (421 ) $ 73,066 $ 16,549 $ 56,517 (1) The majority of our time deposits are foreign deposits. (2) The balances as of December 31, 2014 and 2015 were related to cash collateral received in connection with our securities lending program, which was invested in reverse repurchase agreements maturing within three months. See section titled "Securities Lending Program" below for further discussion of this program. (3) Fixed-inco me bond funds consist of mutual funds that primarily invest in corporate and government bonds. |
Investments by maturity date | The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): As of December 31, 2015 Due in 1 year $ 7,900 Due in 1 year through 5 years 30,141 Due in 5 years through 10 years 7,199 Due after 10 years 10,211 Total $ 55,451 |
Schedule of unrealized loss on investments | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2014 and 2015 , 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, 2014 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. government notes $ 4,490 $ (4 ) $ 0 $ 0 $ 4,490 $ (4 ) U.S. government agencies 830 (1 ) 0 0 830 (1 ) Foreign government bonds 255 (7 ) 43 (3 ) 298 (10 ) Municipal securities 877 (3 ) 174 (3 ) 1,051 (6 ) Corporate debt securities 5,851 (112 ) 225 (10 ) 6,076 (122 ) Agency mortgage-backed securities 609 (1 ) 2,168 (41 ) 2,777 (42 ) Asset-backed securities 2,388 (4 ) 174 (1 ) 2,562 (5 ) Fixed-income bond funds 347 (38 ) 0 0 347 (38 ) Marketable equity securities 690 (64 ) 0 0 690 (64 ) Total $ 16,337 $ (234 ) $ 2,784 $ (58 ) $ 19,121 $ (292 ) As of December 31, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized U.S. government notes $ 13,757 $ (48 ) $ 0 $ 0 $ 13,757 $ (48 ) U.S. government agencies 864 (3 ) 0 0 864 (3 ) Foreign government bonds 885 (18 ) 36 (5 ) 921 (23 ) Municipal securities 1,116 (3 ) 41 (1 ) 1,157 (4 ) Corporate debt securities 9,192 (202 ) 784 (76 ) 9,976 (278 ) Agency mortgage-backed securities 5,783 (34 ) 721 (23 ) 6,504 (57 ) Asset-backed securities 2,508 (7 ) 386 (1 ) 2,894 (8 ) Total $ 34,105 $ (315 ) $ 1,968 $ (106 ) $ 36,073 $ (421 ) |
Schedule of repurchase agreements | Our securities lending transactions were accounted for as secured borrowings with significant investment categories as follows (in millions): As of December 31, 2015 Remaining Contractual Maturity of the Agreements Securities Lending Transactions Overnight and Continuous Up to 30 days 30 - 90 Days Greater Than 90 Days Total U.S. government notes $ 1,322 $ 31 $ 0 $ 306 $ 1,659 U.S. government agencies 504 77 0 0 581 Corporate debt securities 188 0 0 0 188 Total $ 2,014 $ 108 $ 0 $ 306 $ 2,428 Gross amount of recognized liabilities for securities lending in offsetting disclosure $ 2,428 Amounts related to agreements not included in securities lending in offsetting disclosure $ 0 |
Schedule of derivative instruments | The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2014 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Prepaid revenue share, expenses and other assets, current and non-current $ 851 $ 0 $ 851 Interest rate contracts Prepaid revenue share, expenses and other assets, current and non-current 1 0 1 Total $ 852 $ 0 $ 852 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other current liabilities $ 0 $ 3 $ 3 Interest rate contracts Accrued expenses and other liabilities, current and non-current 1 0 1 Total $ 1 $ 3 $ 4 As of December 31, 2015 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Prepaid revenue share, expenses and other assets, current and non-current $ 626 $ 2 $ 628 Total $ 626 $ 2 $ 628 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other current liabilities $ 1 $ 13 $ 14 Interest rate contracts Accrued expenses and other liabilities, current and non-current 2 0 2 Total $ 3 $ 13 $ 16 |
Schedule of gain (loss) on derivative instruments | The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) is summarized below (in millions): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) Year Ended December 31, Derivatives in Cash Flow Hedging Relationship 2013 2014 2015 Foreign exchange contracts $ 92 $ 929 $ 964 Interest rate contracts 86 (31 ) 0 Total $ 178 $ 898 $ 964 Gains Reclassified from AOCI into Income (Effective Portion) Year Ended December 31, Derivatives in Cash Flow Hedging Relationship Location 2013 2014 2015 Foreign exchange contracts Revenues $ 95 $ 171 $ 1,399 Interest rate contracts Other income (expense), net 0 4 5 Total $ 95 $ 175 $ 1,404 Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) (1) Year Ended December 31, Derivatives in Cash Flow Hedging Relationship Location 2013 2014 2015 Foreign exchange contracts Other income (expense), net $ (280 ) $ (279 ) $ (297 ) Interest rate contracts Other income (expense), net 0 4 0 Total $ (280 ) $ (275 ) $ (297 ) (1) Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented. The effect of derivative instruments in fair value hedging relationships on income is summarized below (in millions): Gains (Losses) Recognized in Income on Derivatives (2) Year Ended December 31, Derivatives in Fair Value Hedging Relationship Location 2013 2014 2015 Foreign Exchange Hedges: Foreign exchange contracts Other income (expense), net $ 16 $ 115 $ 170 Hedged item Other income (expense), net (25 ) (123 ) (176 ) Total $ (9 ) $ (8 ) $ (6 ) Interest Rate Hedges: Interest rate contracts Other income (expense), net $ 0 $ 0 $ (2 ) Hedged item Other income (expense), net 0 0 2 Total $ 0 $ 0 $ 0 (2) Losses related to the amount excluded from effectiveness testing of the hedges were $9 million , $8 million , and $6 million for the years ended December 31, 2013 , 2014 , and 2015 . The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income on Derivatives Year Ended December 31, Derivatives Not Designated As Hedging Instruments Location 2013 2014 2015 Foreign exchange contracts Other income (expense), net, and net loss from discontinued operations $ 118 $ 237 $ 198 Interest rate contracts Other income (expense), net 4 2 1 Total $ 122 $ 239 $ 199 |
Offsetting assets | As of December 31, 2014 and 2015 , information related to these offsetting arrangements was as follows (in millions): Offsetting of Assets As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 852 $ 0 $ 852 $ (1 ) (1) $ (251 ) $ (412 ) $ 188 Reverse repurchase agreements 2,637 0 2,637 (2) 0 0 (2,637 ) 0 Total $ 3,489 $ 0 $ 3,489 $ (1 ) $ (251 ) $ (3,049 ) $ 188 As of December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 628 $ 0 $ 628 $ (13 ) (1) $ (189 ) $ (214 ) $ 212 Reverse repurchase agreements 1,590 0 1,590 (2) 0 0 (1,590 ) 0 Total $ 2,218 $ 0 $ 2,218 $ (13 ) $ (189 ) $ (1,804 ) $ 212 (1) The balances as of December 31, 2014 and 2015 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. (2) The balances as of December 31, 2014 and 2015 included $1,762 million and $1,140 million recorded in cash and cash equivalents, respectively, and $875 million and $450 million recorded in receivable under reverse repurchase agreements, respectively. |
Offsetting liabilities | Offsetting of Liabilities As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 4 $ 0 $ 4 $ (1 ) (3) $ 0 $ 0 $ 3 Securities lending agreements 2,778 0 2,778 0 0 (2,740 ) 38 Total $ 2,782 $ 0 $ 2,782 $ (1 ) $ 0 $ (2,740 ) $ 41 As of December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 16 $ 0 $ 16 $ (13 ) (3) $ (3 ) $ 0 $ 0 Securities lending agreements 2,428 0 2,428 0 0 (2,401 ) 27 Total $ 2,444 $ 0 $ 2,444 $ (13 ) $ (3 ) $ (2,401 ) $ 27 (3) The balances as of December 31, 2014 and 2015 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Non-Marketable Investments (Tab
Non-Marketable Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, All Other Investments [Abstract] | |
Investment in other assets | The following table presents a reconciliation for our assets measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) (in millions): Level 3 Balance as of December 31, 2014 $ 90 Purchases, issuances, and settlements (1) 934 Balance as of December 31, 2015 $ 1,024 (1) Purchases of securities included our $900 million investment in SpaceX, a space exploration and space transport company, made during January 2015. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | The total outstanding Notes are summarized below (in millions): As of As of Short-Term Portion of Long-Term Debt 2.125% Notes due on May 19, 2016 $ 0 $ 1,000 Capital Lease Obligation 10 225 Total Short-Term Portion of Long-Term Debt $ 10 $ 1,225 Long-Term Debt 2.125% Notes due on May 19, 2016 $ 1,000 $ 0 3.625% Notes due on May 19, 2021 1,000 1,000 3.375% Notes due on February 25, 2024 1,000 1,000 Unamortized discount for the Notes above (8 ) (5 ) Subtotal 2,992 1,995 Capital Lease Obligation 236 0 Total Long-Term Debt $ 3,228 $ 1,995 |
Schedule of debt maturities | As of December 31, 2015 , aggregate future principal payments for long-term debt (including short-term portion of long-term debt) and capital lease obligation were as follows (in millions): Years Ending 2016 $ 1,225 2017 0 2018 0 2019 0 Thereafter 2,000 Total $ 3,225 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet Components Disclosure [Abstract] | |
Property and Equipment | Property and equipment, net, consisted of the following (in millions): As of December 31, 2014 As of December 31, 2015 Land and buildings $ 13,326 $ 16,518 Information technology assets 10,918 13,645 Construction in progress 6,555 7,324 Leasehold improvements 1,868 2,576 Furniture and fixtures 79 83 Property and equipment, gross 32,746 40,146 Less: accumulated depreciation and amortization (8,863 ) (11,130 ) Property and equipment, net $ 23,883 $ 29,016 |
Schedule of Notes Receivable | The outstanding balances are shown in the table below (in millions): As of As of Principal of the Note Receivable $ 1,500 $ 1,448 Less: unamortized discount for the Note Receivable (175 ) (112 ) Total $ 1,325 $ 1,336 |
Components of Accumulated Other Comprehensive Income | The components of AOCI, net of tax, were as follows (in millions): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains on Cash Flow Hedges Total Balance as of December 31, 2012 $ (73 ) $ 604 $ 7 $ 538 Other comprehensive income (loss) before reclassifications 89 (392 ) 112 (191 ) Amounts reclassified from AOCI 0 (162 ) (60 ) (222 ) Other comprehensive income (loss) 89 (554 ) 52 (413 ) Balance as of December 31, 2013 $ 16 $ 50 $ 59 $ 125 Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains on Cash Flow Hedges Total Balance as of December 31, 2013 $ 16 $ 50 $ 59 $ 125 Other comprehensive income (loss) before reclassifications (996 ) 505 651 160 Amounts reclassified from AOCI 0 (134 ) (124 ) (258 ) Other comprehensive income (loss) (996 ) 371 527 (98 ) Balance as of December 31, 2014 $ (980 ) $ 421 $ 586 $ 27 Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains on Cash Flow Hedges Total Balance as of December 31, 2014 $ (980 ) $ 421 $ 586 $ 27 Other comprehensive income (loss) before reclassifications (1,067 ) (715 ) 676 (1,106 ) Amounts reclassified from AOCI 0 208 (1,003 ) (795 ) Other comprehensive income (loss) (1,067 ) (507 ) (327 ) (1,901 ) Balance as of December 31, 2015 $ (2,047 ) $ (86 ) $ 259 $ (1,874 ) |
Schedule of Effects on Net Income of Amounts Reclassified from Accumulated OCI | The effects on net income of amounts reclassified from AOCI were as follows (in millions): Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income Year Ended December 31, AOCI Components Location 2013 2014 2015 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ 158 $ 153 $ (208 ) Net Income (loss) from discontinued operations 43 0 0 Provision for income taxes (39 ) (19 ) 0 Net of tax $ 162 $ 134 $ (208 ) Unrealized gains on cash flow hedges Foreign exchange contracts Revenue $ 95 $ 171 $ 1,399 Interest rate contracts Other income (expense), net 0 4 5 Provision for income taxes (35 ) (51 ) (401 ) Net of tax $ 60 $ 124 $ 1,003 Total amount reclassified, net of tax $ 222 $ 258 $ 795 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill allocated to our disclosed segments for the years ended December 31, 2014 and 2015 were as follows (in millions): Google Other Bets Total Consolidated Balance as of December 31, 2013 $ 11,492 $ — $ 11,492 Acquisitions 4,208 — 4,208 Dispositions (43 ) — (43 ) Foreign currency translation and other adjustments (58 ) — (58 ) Balance as of December 31, 2014 $ 15,599 $ — $ 15,599 Acquisitions 139 — 139 Foreign currency translation and other adjustments (71 ) — (71 ) Allocation in the fourth quarter of 2015 (416 ) 416 — Acquisitions 201 4 205 Foreign currency translation and other adjustments 4 (7 ) (3 ) Balance as of December 31, 2015 $ 15,456 $ 413 $ 15,869 |
Schedule of finite-lived intangible assets | Information regarding our purchased intangible assets is as follows (in millions): As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 6,547 $ 2,513 $ 4,034 Customer relationships 1,410 1,168 242 Trade names and other 696 365 331 Total $ 8,653 $ 4,046 $ 4,607 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 6,592 $ 3,213 $ 3,379 Customer relationships 1,343 1,201 142 Trade names and other 795 469 326 Total $ 8,730 $ 4,883 $ 3,847 |
Schedule of future amortization expense | As of December 31, 2015 , expected amortization expense for our purchased intangible assets for each of the next five years and thereafter was as follows (in millions): 2016 $ 806 2017 724 2018 637 2019 528 2020 434 Thereafter 718 $ 3,847 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Revenues, Earnings, Assets and Liabilities Attributable to Motorola Home/Mobile Business | The following table presents financial results of the Motorola Mobile business included in net income (loss) from discontinued operations for the years ended December 31, 2013 and 2014 (in millions): Year Ended December 31, 2013 2014 (1) Revenues $ 4,306 $ 5,486 Loss from discontinued operations before income taxes (1,403 ) (177 ) Benefits from/(Provision for) income taxes 270 (47 ) Gain on disposal 0 740 Net (loss) income from discontinued operations $ (1,133 ) $ 516 (1) The operating results of Motorola Mobile were included in our Consolidated Statements of Income from January 1, 2014 through October 29, 2014, the date of divestiture. The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions): Assets: Cash and cash equivalents $ 160 Accounts receivable 1,103 Inventories 217 Prepaid expenses and other current assets 357 Prepaid expenses and other assets, non-current 290 Property and equipment, net 542 Intangible assets, net 985 Goodwill 43 Total assets $ 3,697 Liabilities: Accounts payable $ 1,238 Accrued compensation and benefits 163 Accrued expenses and other current liabilities 10 Deferred revenue, current 165 Other long-term liabilities 250 Total liabilities $ 1,826 The following table presents financial results of the Motorola Home business included in net income (loss) from discontinued operations for the year ended December 31, 2013 (in millions): Year Ended December 31, 2013 (1) Revenues $ 804 Loss from discontinued operations before income taxes (67 ) Benefits from income taxes 16 Gain on disposal 757 Net income from discontinued operations $ 706 (1) The operating results of Motorola Home were included in our Consolidated Statements of Income from January 1, 2013 through April 17, 2013, the date of divestiture. The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions): Assets: Accounts receivable $ 424 Inventories 228 Deferred income taxes, net 144 Prepaid and other current assets 152 Property and equipment, net 282 Intangible assets, net 701 Other assets, non-current 182 Total assets $ 2,113 Liabilities: Accounts payable $ 169 Accrued expenses and other liabilities 289 Total liabilities $ 458 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense) | The components of other income (expense), net, were as follows (in millions): Year Ended December 31, 2013 2014 2015 Interest income $ 766 $ 746 $ 999 Interest expense (81 ) (101 ) (104 ) Gain (loss) on marketable securities, net 158 153 (208 ) Foreign currency exchange losses, net (1) (379 ) (402 ) (422 ) Gain (loss) on non-marketable investments, net 8 237 (126 ) Loss on divestiture of businesses (2) (57 ) 0 0 Other 81 130 152 Other income (expense), net $ 496 $ 763 $ 291 (1) Our foreign currency exchange losses,net are related to the option premium costs and forward points for our foreign currency hedging contracts, our foreign exchange transaction gains and losses from the conversion of the transaction currency to the functional currency, offset by the foreign currency hedging contract losses and gains. The net foreign currency transaction losses were $121 million , $107 million , and $123 million in 2013 , 2014 , and 2015 , respectively. (2) Gain on divestiture of Motorola Home business was included in net income (loss) from discontinued operations for the year ended December 31, 2013. Gain on divestiture of Motorola Mobile business was included in net income (loss) from discontinued operations for the year ended December 31, 2014. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments | As of December 31, 2015 , future minimum payments under non-cancelable operating leases, net of sublease income amounts, were as follows over each of the next five years and thereafter (in millions): Operating Leases Sub-lease Income Net Operating Leases 2016 672 26 646 2017 794 13 781 2018 796 4 792 2019 769 3 766 2020 719 3 716 Thereafter 3,706 1 3,705 Total minimum payments $ 7,456 $ 50 $ 7,406 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): Year Ended December 31, 2013 Class A Class B Class C Basic net income (loss) per share: Numerator Allocation of undistributed earnings - continuing operations $ 5,407 $ 1,173 $ 6,580 Allocation of undistributed earnings - discontinued operations (175 ) (38 ) (214 ) Total $ 5,232 $ 1,135 $ 6,366 Denominator Number of shares used in per share computation 273,518 59,328 332,846 Basic net income (loss) per share: Continuing operations $ 19.77 $ 19.77 $ 19.77 Discontinued operations (0.64 ) (0.64 ) (0.64 ) Basic net income per share $ 19.13 $ 19.13 $ 19.13 Diluted net income (loss) per share: Numerator Allocation of undistributed earnings for basic computation - continuing operations $ 5,407 $ 1,173 $ 6,580 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,173 0 0 Reallocation of undistributed earnings 0 (21 ) 0 Allocation of undistributed earnings - continuing operations $ 6,580 $ 1,152 $ 6,580 Allocation of undistributed earnings for basic computation - discontinued operations (175 ) (38 ) (214 ) Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares (38 ) 0 0 Reallocation of undistributed earnings (1 ) 1 1 Allocation of undistributed earnings - discontinued operations $ (214 ) $ (37 ) $ (213 ) Denominator Number of shares used in basic computation 273,518 59,328 332,846 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 59,328 0 0 Employee stock options 2,748 4 2,748 Restricted stock units and other contingently issuable shares 3,215 0 3,215 Number of shares used in per share computation 338,809 59,332 338,809 Diluted net income (loss) per share: Continuing operations $ 19.42 $ 19.42 $ 19.42 Discontinued operations (0.63 ) (0.63 ) (0.63 ) Diluted net income per share $ 18.79 $ 18.79 $ 18.79 Year Ended December 31, 2014 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings - continuing operations $ 5,700 $ 1,107 $ 6,813 Allocation of undistributed earnings - discontinued operations 216 42 258 Total $ 5,916 $ 1,149 $ 7,071 Denominator Number of shares used in per share computation 282,877 54,928 338,130 Basic net income per share: Continuing operations $ 20.15 $ 20.15 $ 20.15 Discontinued operations 0.76 0.76 0.76 Basic net income per share $ 20.91 $ 20.91 $ 20.91 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation - continuing operations $ 5,700 $ 1,107 $ 6,813 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,107 0 0 Reallocation of undistributed earnings (20 ) (18 ) 20 Allocation of undistributed earnings - continuing operations $ 6,787 $ 1,089 $ 6,833 Allocation of undistributed earnings for basic computation - discontinued operations 216 42 258 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 42 0 0 Reallocation of undistributed earnings (1 ) (1 ) 1 Allocation of undistributed earnings - discontinued operations $ 257 $ 41 $ 259 Denominator Number of shares used in basic computation 282,877 54,928 338,130 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 54,928 0 0 Employee stock options 2,057 0 2,038 Restricted stock units and other contingently issuable shares 2,515 0 4,525 Number of shares used in per share computation 342,377 54,928 344,693 Diluted net income per share: Continuing operations $ 19.82 $ 19.82 $ 19.82 Discontinued operations 0.75 0.75 0.75 Diluted net income per share $ 20.57 $ 20.57 $ 20.57 Year Ended December 31, 2015 Class A Class B Class C Basic net income per share: Numerator Adjustment Payment to Class C capital stockholders - continuing operations $ 0 $ 0 $ 522 Allocation of undistributed earnings - continuing operations 6,695 1,196 7,935 Allocation of undistributed earnings - discontinued operations 0 0 0 Total $ 6,695 $ 1,196 $ 8,457 Denominator Number of shares used in per share computation 289,640 51,745 343,241 Basic net income per share: Continuing operations $ 23.11 $ 23.11 $ 24.63 Discontinued operations 0.00 0.00 0.00 Basic net income per share $ 23.11 $ 23.11 $ 24.63 Diluted net income per share: Numerator Adjustment Payment to Class C capital stockholders - continuing operations $ 0 $ 0 $ 522 Allocation of undistributed earnings for basic computation - continuing operations $ 6,695 $ 1,196 $ 7,935 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,196 0 0 Reallocation of undistributed earnings (39 ) (14 ) 39 Allocation of undistributed earnings - continuing operations 7,852 1,182 7,974 Allocation of undistributed earnings for basic computation - discontinued operations 0 0 0 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 0 0 0 Reallocation of undistributed earnings 0 0 0 Allocation of undistributed earnings - discontinued operations $ 0 $ 0 $ 0 Denominator Number of shares used in basic computation 289,640 51,745 343,241 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 51,745 0 0 Employee stock options 1,475 0 1,428 Restricted stock units and other contingently issuable shares 920 0 4,481 Number of shares used in per share computation 343,780 51,745 349,150 Diluted net income per share: Continuing operations $ 22.84 $ 22.84 $ 24.34 Discontinued operations 0.00 0.00 0.00 Diluted net income per share $ 22.84 $ 22.84 $ 24.34 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of allocated share-based compensation expense | The following table presents our aggregate stock-based compensation expense by type of costs and expenses per the Consolidated Statements of Income (in millions): Year Ended December 31, 2013 2014 2015 Cost of revenues $ 469 $ 535 $ 806 Research and development 1,641 2,200 2,687 Sales and marketing 552 715 899 General and administrative 465 725 861 Discontinued operations 216 104 0 Total stock-based compensation expense $ 3,343 $ 4,279 $ 5,253 |
Schedule of stock option activity | The following table summarizes the activities for our options for the year ended December 31, 2015 : Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) (1) Balance as of December 31, 2014 7,240,419 $ 215.56 Granted 0 N/A Exercised (2,072,550 ) $ 189.64 Forfeited/canceled (268,886 ) $ 310.47 Balance as of December 31, 2015 4,898,983 $ 221.31 3.7 $ 2,682 Exercisable as of December 31, 2015 4,462,847 $ 212.02 3.4 $ 2,484 Exercisable as of December 31, 2015 and expected to vest thereafter (2) 4,846,996 $ 220.29 3.6 $ 2,658 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock prices of $778.01 and $758.88 of our Class A common stock and Class C capital stock, respectively, on December 31, 2015 . (2) Options expected to vest reflect an estimated forfeiture rate. |
Schedule of restricted stock activity | The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2015 : Unvested Restricted Stock Units Number of Shares Weighted- Average Grant-Date Fair Value Unvested as of December 31, 2014 24,619,549 $ 487.80 Granted 14,415,740 $ 546.46 Vested (11,182,606 ) $ 442.01 Forfeited/canceled (2,111,497 ) $ 481.37 Unvested as of December 31, 2015 25,741,186 $ 531.74 Expected to vest after December 31, 2015 (1) 22,672,837 $ 531.74 (1) RSUs expected to vest reflect an estimated forfeiture rate. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The provision for income taxes consists of the following (in millions): Year Ended December 31, 2013 2014 2015 Current: Federal $ 2,394 $ 2,716 $ 3,235 State 127 157 (397 ) Foreign 711 774 723 Total 3,232 3,647 3,561 Deferred: Federal (421 ) 29 (198 ) State 0 6 (43 ) Foreign (72 ) (43 ) (17 ) Total (493 ) (8 ) (258 ) Provision for income taxes $ 2,739 $ 3,639 $ 3,303 |
Schedule of effective income tax rate reconciliation | The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows (in millions): Year Ended December 31, 2013 2014 2015 Expected provision at federal statutory tax rate (35%) $ 5,567 $ 6,041 $ 6,878 State taxes, net of federal benefit 133 132 (291 ) Change in valuation allowance (641 ) (164 ) (65 ) Foreign rate differential (2,482 ) (2,109 ) (2,624 ) Federal research credit (433 ) (318 ) (407 ) Basis difference in investment of Arris 644 0 0 Other adjustments (49 ) 57 (188 ) Provision for income taxes $ 2,739 $ 3,639 $ 3,303 |
Schedule of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities are as follows (in millions): As of December 31, 2014 2015 Deferred tax assets: Stock-based compensation expense $ 376 $ 534 State taxes 133 119 Investment loss 133 144 Legal settlement accruals 175 101 Accrued employee benefits 671 832 Accruals and reserves not currently deductible 175 245 Net operating losses 207 230 Tax credits 262 503 Basis difference in investment of Arris 1,347 1,357 Prepaid cost sharing 0 3,468 Other 243 337 Total deferred tax assets 3,722 7,870 Valuation allowance (1,659 ) (1,732 ) Total deferred tax assets net of valuation allowance 2,063 6,138 Deferred tax liabilities: Depreciation and amortization (852 ) (1,126 ) Identified intangibles (965 ) (787 ) Mark-to-market investments (273 ) (93 ) Renewable energy investments (430 ) (529 ) Foreign earnings 0 (3,468 ) Other (125 ) (73 ) Total deferred tax liabilities (2,645 ) (6,076 ) Net deferred tax liabilities $ (582 ) $ 62 |
Summary of income tax contingencies | The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2013 to December 31, 2015 (in millions): Balance as of January 1, 2013 $ 1,907 Increases related to prior year tax positions 158 Decreases related to prior year tax positions (37 ) Decreases related to settlement with tax authorities (78 ) Increases related to current year tax positions 552 Balance as of December 31, 2013 2,502 Increases related to prior year tax positions 66 Decreases related to prior year tax positions (44 ) Decreases related to settlement with tax authorities (1 ) Increases related to current year tax positions 771 Balance as of December 31, 2014 3,294 Increases related to prior year tax positions 224 Decreases related to prior year tax positions (176 ) Decreases related to settlement with tax authorities (27 ) Increases related to current year tax positions 852 Balance as of December 31, 2015 $ 4,167 |
Information about Segments an40
Information about Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment information by segment | Information about segments during the periods presented were as follows (in millions): Year Ended December 31, 2013 2014 2015 Revenues: Google $ 55,507 $ 65,674 $ 74,541 Other Bets 12 327 448 Total revenues $ 55,519 $ 66,001 $ 74,989 Year Ended December 31, 2013 2014 2015 Segment operating income (loss): Google $ 16,260 $ 19,011 $ 23,425 Other Bets (527 ) (1,942 ) (3,567 ) Reconciling items (1) (330 ) (573 ) (498 ) Total income from operations $ 15,403 $ 16,496 $ 19,360 (1) Reconciling items are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. Year Ended December 31, 2013 2014 2015 Capital expenditures: Google $ 7,006 $ 11,173 $ 8,849 Other Bets 187 501 869 Reconciling items (2) 165 (715 ) 197 Total capital expenditures as presented in Consolidated Statements of Cash Flow $ 7,358 $ 10,959 $ 9,915 (2) Reconciling items are primarily related to timing differences of payments as segment capital expenditures are on accrual basis while total capital expenditures shown on the Consolidated Statements of Cash Flow are on cash basis, capital expenditures of Motorola Mobile and Home, and other miscellaneous differences. Stock-based compensation and depreciation, amortization and impairment are included in segment operating income (loss) as below (in millions): Year Ended December 31, 2013 2014 2015 Stock-based compensation: Google $ 2,911 $ 3,677 $ 4,587 Other Bets 124 347 498 Reconciling items (3) 92 151 118 Total stock based compensation, excluding discontinued operations (4) $ 3,127 $ 4,175 $ 5,203 Depreciation, amortization and impairment: Google $ 3,668 $ 4,778 $ 4,839 Other Bets 24 148 203 Reconciling items (5) 247 53 21 Total depreciation, amortization and impairment as presented in Consolidated Statements of Cash Flow $ 3,939 $ 4,979 $ 5,063 (3) Reconciling items represent corporate administrative costs that are not allocated to individual segments. (4) For purposes of segment reporting, we define SBC as awards accounted for under FASB ASC Topic 718 that we expect to settle in stock. SBC does not include expenses related to awards that we will ultimately settle in cash. Amounts exclude SBC from discontinued operations . (5) Reconciling items primarily represent depreciation, amortization and impairment related to Motorola Mobile and Motorola Home. |
Revenue by geographic area | Revenues by geography are based on the billing addresses of our customers. The following tables set forth revenues and long-lived assets by geographic area (in millions): Year Ended December 31, 2013 2014 2015 Revenues: United States $ 25,587 $ 29,482 $ 34,810 United Kingdom 5,600 6,483 7,067 Rest of the world 24,332 30,036 33,112 Total revenues $ 55,519 $ 66,001 $ 74,989 |
Schedule of long-lived assets by geographic area | As of As of Long-lived assets: United States $ 37,421 $ 43,686 International 13,110 13,661 Total long-lived assets $ 50,531 $ 57,347 |
Revision of Previously Issued41
Revision of Previously Issued Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule prior period adjustments | The following table presents the impact of these corrections on affected Consolidated Balance Sheet line items as of December 31, 2014 (in millions): As of December 31, 2014 As Previously Reported (1) Adjustment As Revised Selected Balance Sheets Data: Income tax receivable, net $ 1,298 $ (707 ) $ 591 Total current assets 79,363 (707 ) 78,656 Total assets 129,894 (707 ) 129,187 Income taxes payable, non-current 3,407 (67 ) 3,340 Retained earnings 75,706 (640 ) 75,066 Total stockholders' equity 104,500 (640 ) 103,860 Total liabilities and stockholders' equity $ 129,894 $ (707 ) $ 129,187 (1) Includes reclassifications of deferred tax assets and liabilities related to ASU 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” Refer to Note 1 for further information. The following table presents the impact of these corrections on affected Consolidated Statements of Income line items, including net income per share amounts for Class A and B common stock and Class C capital stock, for the years ended December 31, 2013 and 2014 (in millions, except per share amounts): Year Ended December 31, 2013 Year Ended December 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Income Data: Provision for income taxes $ 2,552 $ 187 $ 2,739 $ 3,331 $ 308 $ 3,639 Net income from continuing operations 13,347 (187 ) $ 13,160 13,928 (308 ) $ 13,620 Net income 12,920 (187 ) $ 12,733 14,444 (308 ) $ 14,136 Basic net income per share from continuing operations $ 20.05 $ (0.28 ) $ 19.77 $ 20.61 $ (0.46 ) $ 20.15 Basic net income per share 19.41 (0.28 ) 19.13 21.37 (0.46 ) 20.91 Diluted net income per share from continuing operations 19.70 (0.28 ) 19.42 20.27 (0.45 ) 19.82 Diluted net income per share $ 19.07 $ (0.28 ) $ 18.79 $ 21.02 $ (0.45 ) $ 20.57 The following table presents the impact of these corrections on affected Consolidated Statements of Comprehensive Income line items for the years ended December 31, 2013 and 2014 (in millions): Year Ended December 31, 2013 Year Ended December 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Comprehensive Income Data: Net income 12,920 (187 ) 12,733 14,444 (308 ) 14,136 Comprehensive income 12,507 (187 ) 12,320 14,346 (308 ) 14,038 The following table presents the impact of these corrections on affected Consolidated Statements of Cash Flows line items for the years ended December 31, 2013 and 2014 (in millions): Year Ended December 31, 2013 Year Ended December 31, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Cash Flows Data: Net income $ 12,920 $ (187 ) 12,733 $ 14,444 $ (308 ) $ 14,136 Changes in income taxes, net 401 187 588 283 308 591 |
Nature of Operations and Summ42
Nature of Operations and Summary of Significant Accounting Policies (Revenue by Revenue Source) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||
Revenues | $ 74,989 | $ 66,001 | $ 55,519 |
Revenue from External Customer [Line Items] | |||
Advertising revenues | 67,390 | 59,624 | 51,072 |
Other revenues | 7,151 | 6,050 | 4,435 |
Revenues | 74,541 | 65,674 | 55,507 |
Google | Google websites | |||
Revenue from External Customer [Line Items] | |||
Advertising revenues | 52,357 | 45,085 | 37,422 |
Google | Google Network Members' websites | |||
Revenue from External Customer [Line Items] | |||
Advertising revenues | 15,033 | 14,539 | 13,650 |
Other Bets | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 448 | $ 327 | $ 12 |
Nature of Operations and Summ43
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) | Apr. 02, 2014 | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($)customer | Mar. 31, 2015USD ($) |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Stock split ratio | 2 | ||||
Cash received from the exercise of stock options | $ 393,000,000 | $ 465,000,000 | $ 1,174,000,000 | ||
Total direct tax benefit realized, including the excess tax benefit from stock-based award activity | $ 1,544,000,000 | $ 1,356,000,000 | $ 1,195,000,000 | ||
Percentage of revenues generated from customers in the United States | 46.00% | 45.00% | 46.00% | ||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | ||
Advertising and promotional expenses | 3,186,000,000 | 3,004,000,000 | $ 2,389,000,000 | ||
Deferred income taxes | 251,000,000 | 176,000,000 | |||
Deferred income taxes | $ 189,000,000 | $ 758,000,000 | |||
Minimum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 2 years | ||||
Acquired intangible assets, estimated useful lives | 1 year | ||||
Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 5 years | ||||
Acquired intangible assets, estimated useful lives | 12 years | ||||
Building | Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 25 years | ||||
Sales Revenue, Net | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers | customer | 0 | 0 | 0 | ||
Percent for concentration risk | 10.00% | ||||
Patent Royalty Licensing Agreement | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment of intangible asset | $ 378,000,000 | ||||
Adjustment | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Cumulative adjustment to income tax expense (benefit) | $ 711,000,000 | ||||
New Accounting Pronouncement, Early Adoption, Effect | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Reclassification of deferred tax assets, current | 1,322,000,000 | ||||
Deferred income taxes | 83,000,000 | ||||
Reclassification of deferred tax liabilities, current | 26,000,000 | ||||
Deferred income taxes | $ 1,213,000,000 |
Financial Instruments (Cash, Ca
Financial Instruments (Cash, Cash Equivalents and Marketable Securities Measured at Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Value By Significant Investment Category) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | $ 73,141 | $ 63,935 | ||
Gross Unrealized Gains | 346 | 752 | ||
Gross Unrealized Losses | (421) | (292) | ||
Fair Value | 73,066 | 64,395 | ||
Cash and Cash Equivalents | 16,549 | 18,347 | $ 18,898 | $ 14,778 |
Marketable Securities | 56,517 | 46,048 | ||
Cash | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 7,380 | 9,863 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 7,380 | 9,863 | ||
Cash and Cash Equivalents | 7,380 | 9,863 | ||
Marketable Securities | 0 | 0 | ||
Level 1 | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 27,237 | 18,840 | ||
Gross Unrealized Gains | 182 | 465 | ||
Gross Unrealized Losses | (48) | (68) | ||
Fair Value | 27,371 | 19,237 | ||
Cash and Cash Equivalents | 5,881 | 3,660 | ||
Marketable Securities | 21,490 | 15,577 | ||
Level 1 | Money market and other funds | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 5,623 | 2,532 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 5,623 | 2,532 | ||
Cash and Cash Equivalents | 5,623 | 2,532 | ||
Marketable Securities | 0 | 0 | ||
Level 1 | U.S. government notes | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 20,922 | 15,320 | ||
Gross Unrealized Gains | 27 | 37 | ||
Gross Unrealized Losses | (48) | (4) | ||
Fair Value | 20,901 | 15,353 | ||
Cash and Cash Equivalents | 258 | 1,128 | ||
Marketable Securities | 20,643 | 14,225 | ||
Level 1 | Marketable equity securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 692 | 988 | ||
Gross Unrealized Gains | 155 | 428 | ||
Gross Unrealized Losses | 0 | (64) | ||
Fair Value | 847 | 1,352 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | 847 | 1,352 | ||
Level 2 | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 38,524 | 35,232 | ||
Gross Unrealized Gains | 164 | 287 | ||
Gross Unrealized Losses | (373) | (224) | ||
Fair Value | 38,315 | 35,295 | ||
Cash and Cash Equivalents | 3,288 | 4,824 | ||
Marketable Securities | 35,027 | 30,471 | ||
Level 2 | Money market and other funds | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 1,140 | 1,762 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 1,140 | 1,762 | ||
Cash and Cash Equivalents | 1,140 | 1,762 | ||
Marketable Securities | 0 | 0 | ||
Level 2 | Fixed-income bond funds | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 219 | 385 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | (38) | ||
Fair Value | 219 | 347 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | 219 | 347 | ||
Level 2 | Time deposits | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 3,223 | 2,409 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 3,223 | 2,409 | ||
Cash and Cash Equivalents | 2,012 | 2,309 | ||
Marketable Securities | 1,211 | 100 | ||
Level 2 | U.S. government agencies | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 1,367 | 2,327 | ||
Gross Unrealized Gains | 2 | 8 | ||
Gross Unrealized Losses | (3) | (1) | ||
Fair Value | 1,366 | 2,334 | ||
Cash and Cash Equivalents | 0 | 750 | ||
Marketable Securities | 1,366 | 1,584 | ||
Level 2 | Foreign government bonds | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 2,242 | 1,828 | ||
Gross Unrealized Gains | 14 | 22 | ||
Gross Unrealized Losses | (23) | (10) | ||
Fair Value | 2,233 | 1,840 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | 2,233 | 1,840 | ||
Level 2 | Municipal securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 3,812 | 3,370 | ||
Gross Unrealized Gains | 47 | 33 | ||
Gross Unrealized Losses | (4) | (6) | ||
Fair Value | 3,855 | 3,397 | ||
Cash and Cash Equivalents | 0 | 3 | ||
Marketable Securities | 3,855 | 3,394 | ||
Level 2 | Corporate debt securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 13,809 | 11,499 | ||
Gross Unrealized Gains | 53 | 114 | ||
Gross Unrealized Losses | (278) | (122) | ||
Fair Value | 13,584 | 11,491 | ||
Cash and Cash Equivalents | 136 | 0 | ||
Marketable Securities | 13,448 | 11,491 | ||
Level 2 | Agency mortgage-backed securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 9,680 | 8,196 | ||
Gross Unrealized Gains | 48 | 109 | ||
Gross Unrealized Losses | (57) | (42) | ||
Fair Value | 9,671 | 8,263 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | 9,671 | 8,263 | ||
Level 2 | Asset-backed securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 3,032 | 3,456 | ||
Gross Unrealized Gains | 0 | 1 | ||
Gross Unrealized Losses | (8) | (5) | ||
Fair Value | 3,024 | 3,452 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | $ 3,024 | $ 3,452 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract] | |
Due in 1 year | $ 7,900 |
Due in 1 year through 5 years | 30,141 |
Due in 5 years through 10 years | 7,199 |
Due after 10 years | 10,211 |
Total | $ 55,451 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | $ 34,105 | $ 16,337 |
Less than 12 months, unrealized loss | (315) | (234) |
12 months or greater, fair value | 1,968 | 2,784 |
12 months or greater, unrealized loss | (106) | (58) |
Fair Value | 36,073 | 19,121 |
Unrealized Loss | (421) | (292) |
U.S. government notes | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 13,757 | 4,490 |
Less than 12 months, unrealized loss | (48) | (4) |
12 months or greater, fair value | 0 | 0 |
12 months or greater, unrealized loss | 0 | 0 |
Fair Value | 13,757 | 4,490 |
Unrealized Loss | (48) | (4) |
U.S. government agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 864 | 830 |
Less than 12 months, unrealized loss | (3) | (1) |
12 months or greater, fair value | 0 | 0 |
12 months or greater, unrealized loss | 0 | 0 |
Fair Value | 864 | 830 |
Unrealized Loss | (3) | (1) |
Foreign government bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 885 | 255 |
Less than 12 months, unrealized loss | (18) | (7) |
12 months or greater, fair value | 36 | 43 |
12 months or greater, unrealized loss | (5) | (3) |
Fair Value | 921 | 298 |
Unrealized Loss | (23) | (10) |
Municipal securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 1,116 | 877 |
Less than 12 months, unrealized loss | (3) | (3) |
12 months or greater, fair value | 41 | 174 |
12 months or greater, unrealized loss | (1) | (3) |
Fair Value | 1,157 | 1,051 |
Unrealized Loss | (4) | (6) |
Corporate debt securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 9,192 | 5,851 |
Less than 12 months, unrealized loss | (202) | (112) |
12 months or greater, fair value | 784 | 225 |
12 months or greater, unrealized loss | (76) | (10) |
Fair Value | 9,976 | 6,076 |
Unrealized Loss | (278) | (122) |
Agency mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 5,783 | 609 |
Less than 12 months, unrealized loss | (34) | (1) |
12 months or greater, fair value | 721 | 2,168 |
12 months or greater, unrealized loss | (23) | (41) |
Fair Value | 6,504 | 2,777 |
Unrealized Loss | (57) | (42) |
Asset-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 2,508 | 2,388 |
Less than 12 months, unrealized loss | (7) | (4) |
12 months or greater, fair value | 386 | 174 |
12 months or greater, unrealized loss | (1) | (1) |
Fair Value | 2,894 | 2,562 |
Unrealized Loss | $ (8) | (5) |
Fixed-income bond funds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 347 | |
Less than 12 months, unrealized loss | (38) | |
12 months or greater, fair value | 0 | |
12 months or greater, unrealized loss | 0 | |
Fair Value | 347 | |
Unrealized Loss | (38) | |
Marketable equity securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 690 | |
Less than 12 months, unrealized loss | (64) | |
12 months or greater, fair value | 0 | |
12 months or greater, unrealized loss | 0 | |
Fair Value | 690 | |
Unrealized Loss | $ (64) |
Financial Instruments (Securiti
Financial Instruments (Securities Lending Program) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | $ 2,428 | |
Gross amount of recognized liabilities for securities lending in offsetting disclosure | 2,428 | $ 2,778 |
Amounts related to agreements not included in securities lending in offsetting disclosure | 0 | |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 2,014 | |
Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 108 | |
30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 306 | |
U.S. government notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 1,659 | |
U.S. government notes | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 1,322 | |
U.S. government notes | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 31 | |
U.S. government notes | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
U.S. government notes | Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 306 | |
U.S. government agencies | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 581 | |
U.S. government agencies | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 504 | |
U.S. government agencies | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 77 | |
U.S. government agencies | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
U.S. government agencies | Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 188 | |
Corporate debt securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 188 | |
Corporate debt securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
Corporate debt securities | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
Corporate debt securities | Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | $ 0 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Assets: | ||
Derivative assets | $ 628 | $ 852 |
Derivative Liabilities: | ||
Derivative liabilities | 16 | 4 |
Level 2 | ||
Derivative Assets: | ||
Derivative assets | 628 | 852 |
Derivative Liabilities: | ||
Derivative liabilities | 16 | 4 |
Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative assets | 628 | 851 |
Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative liabilities | 14 | 3 |
Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative assets | 1 | |
Level 2 | Interest rate contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative liabilities | 2 | 1 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative assets | 626 | 852 |
Derivative Liabilities: | ||
Derivative liabilities | 3 | 1 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative assets | 626 | 851 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative liabilities | 1 | 0 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative assets | 1 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Interest rate contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative liabilities | 2 | 1 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative assets | 2 | 0 |
Derivative Liabilities: | ||
Derivative liabilities | 13 | 3 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative assets | 2 | 0 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative liabilities | 13 | 3 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative assets | 0 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Interest rate contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
Financial Instruments (Effect o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | $ 964 | $ 898 | $ 178 |
Gains Reclassified from AOCI into Income (Effective Portion) | 1,404 | 175 | 95 |
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | (297) | (275) | (280) |
Fair Value of Derivatives Not Designated as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) Recognized in Income on Derivatives | 199 | 239 | 122 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) Recognized in Income on Derivatives | 198 | 237 | 118 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate contracts | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) Recognized in Income on Derivatives | 1 | 2 | 4 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | 964 | 929 | 92 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains Reclassified from AOCI into Income (Effective Portion) | 1,399 | 171 | 95 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | (297) | (279) | (280) |
Derivatives in Cash Flow Hedging Relationship | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | 0 | (31) | 86 |
Derivatives in Cash Flow Hedging Relationship | Interest rate contracts | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains Reclassified from AOCI into Income (Effective Portion) | 5 | 4 | 0 |
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 0 | 4 | 0 |
Derivatives in Fair Value Hedging Relationship | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Losses related to the amount excluded from effectiveness testing of the hedges | 6 | 8 | 9 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | (6) | (8) | (9) |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange contracts | 170 | 115 | 16 |
Hedged item | (176) | (123) | (25) |
Derivatives in Fair Value Hedging Relationship | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total | 0 | 0 | 0 |
Derivatives in Fair Value Hedging Relationship | Interest rate contracts | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate contracts | (2) | 0 | 0 |
Hedged item | $ 2 | $ 0 | $ 0 |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Assets [Abstract] | ||
Gross Amounts of Recognized Assets | $ 628 | $ 852 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Presented in the Consolidated Balance Sheets | 628 | 852 |
Financial Instruments | (13) | (1) |
Cash Collateral Received | (189) | (251) |
Non-Cash Collateral Received | (214) | (412) |
Net Assets Exposed | 212 | 188 |
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||
Gross Amounts of Recognized Assets | 1,590 | 2,637 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Presented in the Consolidated Balance Sheets | 1,590 | 2,637 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Non-Cash Collateral Received | (1,590) | (2,637) |
Net Assets Exposed | 0 | 0 |
Offsetting Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed [Abstract] | ||
Gross Amounts of Recognized Assets | 2,218 | 3,489 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Presented in the Consolidated Balance Sheets | 2,218 | 3,489 |
Financial Instruments | (13) | (1) |
Cash Collateral Received | (189) | (251) |
Non-Cash Collateral Received | (1,804) | (3,049) |
Net Assets Exposed | 212 | 188 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Amounts of Recognized Liabilities | 16 | 4 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Presented in the Consolidated Balance Sheets | 16 | 4 |
Financial Instruments | (13) | (1) |
Cash Collateral Pledged | (3) | 0 |
Non-Cash Collateral Pledged | 0 | 0 |
Net Liabilities | 0 | 3 |
Offsetting Securities Loaned [Abstract] | ||
Gross Amounts of Recognized Liabilities | 2,428 | 2,778 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Presented in the Consolidated Balance Sheets | 2,428 | 2,778 |
Financial Instruments | 0 | 0 |
Cash Collateral Pledged | 0 | 0 |
Non-Cash Collateral Pledged | (2,401) | (2,740) |
Net Liabilities | 27 | 38 |
Offsetting Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned [Abstract] | ||
Gross Amounts of Recognized Liabilities | 2,444 | 2,782 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Presented in the Consolidated Balance Sheets | 2,444 | 2,782 |
Financial Instruments | (13) | (1) |
Cash Collateral Pledged | (3) | 0 |
Non-Cash Collateral Pledged | (2,401) | (2,740) |
Net Liabilities | 27 | 41 |
Cash and cash equivalents | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||
Gross Amounts of Recognized Assets | 1,140 | 1,762 |
Receivable under reverse repurchase agreements | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||
Gross Amounts of Recognized Assets | $ 450 | $ 875 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2012 | |
Financial Instruments and Fair Value [Line Items] | |||||
Gross realized gains on the sale of our marketable securities | $ 357 | $ 238 | $ 416 | ||
Gross realized losses on the sale of our marketable securities | 565 | 85 | 258 | ||
OTTI on securities | 281 | 0 | $ 0 | ||
Cash collateral received from derivative financial instruments | 192 | 268 | |||
Forward-starting interest swaps, anticipated debt issuance amount | $ 1,000 | ||||
Effective portion of our cash flow hedges before tax effect | 375 | ||||
Foreign currency gain (loss) to be reclassified during next 12 months | 293 | ||||
Foreign exchange contracts | Fair Value of Derivatives Not Designated as Hedging Instruments | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | 7,500 | 6,200 | |||
Interest rate swap | Fair Value of Derivatives Not Designated as Hedging Instruments | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | $ 1,000 | ||||
Interest rate contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | 50 | 150 | |||
Cash Flow Hedging Relationship | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | $ 16,400 | 13,600 | |||
Foreign exchange option contracts, maximum maturities | 36 months | ||||
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | $ 1,800 | 1,500 | |||
Derivatives in Fair Value Hedging Relationship | Interest rate contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | $ 295 | $ 175 |
Non-Marketable Investments (Non
Non-Marketable Investments (Non-Marketable Debt Securities) (Details) - Level 3 - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jan. 31, 2015 | Dec. 31, 2015 | |
Other Investments Not Readily Marketable [Roll Forward] | ||
Balance as of December 31, 2014 | $ 90 | $ 90 |
Purchases, issuances, and settlements | 934 | |
Balance as of December 31, 2015 | $ 1,024 | |
SpaceX | ||
Other Investments Not Readily Marketable [Roll Forward] | ||
Purchases, issuances, and settlements | $ 900 |
Non-Marketable Investments (Nar
Non-Marketable Investments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, All Other Investments [Abstract] | ||
Equity method investments | $ 1,600 | $ 1,300 |
Cost method investments | 2,600 | $ 1,800 |
Fair value of cost method investments | 7,500 | |
Loss on equity method investments | 227 | |
VIE, Not Primary Beneficiary, Aggregated Disclosure | ||
Variable Interest Entity [Line Items] | ||
Net assets of VIE | 302 | |
Maximum loss exposure | $ 316 |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Short-Term Portion of Long-Term Debt | ||
Capital Lease Obligation | $ 225 | $ 10 |
Total Short-Term Portion of Long-Term Debt | 1,225 | 10 |
Long-Term Debt | ||
Unamortized discount for the Notes above | (5) | (8) |
Subtotal | 1,995 | 2,992 |
Capital Lease Obligation | 0 | 236 |
Total Long-Term Debt | 1,995 | 3,228 |
2.125% Notes due on May 19, 2016 | ||
Short-Term Portion of Long-Term Debt | ||
Short-term Portion of Notes | 1,000 | 0 |
Long-Term Debt | ||
Long-Term Debt, gross | $ 0 | $ 1,000 |
Long-term debt, stated interest rate | 2.125% | 2.125% |
3.625% Notes due on May 19, 2021 | ||
Long-Term Debt | ||
Long-Term Debt, gross | $ 1,000 | $ 1,000 |
Long-term debt, stated interest rate | 3.625% | 3.625% |
3.375% Notes due on February 25, 2024 | ||
Long-Term Debt | ||
Long-Term Debt, gross | $ 1,000 | $ 1,000 |
Long-term debt, stated interest rate | 3.375% | 3.375% |
Debt (Future Principal Payments
Debt (Future Principal Payments for Borrowings) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,016 | $ 1,225 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 2,000 |
Total | $ 3,225 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Jan. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 28, 2014USD ($) | May. 31, 2011USD ($)Tranche |
Debt Instrument [Line Items] | |||||
Outstanding commercial paper | $ 2,000,000,000 | $ 2,000,000,000 | |||
Estimated fair value of long-term debt | $ 3,100,000,000 | $ 3,100,000,000 | |||
2.125% Notes due on May 19, 2016 | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 2.241% | ||||
3.625% Notes due on May 19, 2021 | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 3.734% | ||||
3.375% Notes due on February 25, 2024 | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 3.377% | ||||
Unsecured debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument issued | $ 1,000,000,000 | $ 3,000,000,000 | |||
Number of unsecured senior notes tranches | Tranche | 3 | ||||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing on short term lines of credit | $ 3,000,000,000 | ||||
Weighted average yield for commercial paper outstanding | 0.20% | 0.10% | |||
Commercial Paper | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Board authorized debt limit | $ 5,000,000,000 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing on short term lines of credit | $ 3,000,000,000 | ||||
Line of credit drawn | $ 0 | $ 0 | |||
Revolving Credit Facility | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Board authorized debt limit | $ 4,000,000,000 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 40,146 | $ 32,746 |
Less: accumulated depreciation and amortization | (11,130) | (8,863) |
Property and equipment, net | 29,016 | 23,883 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Cost basis of property and equipment under capital lease | 258 | |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 16,518 | 13,326 |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 13,645 | 10,918 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 7,324 | 6,555 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 2,576 | 1,868 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 83 | $ 79 |
Balance Sheet Components (Notes
Balance Sheet Components (Notes Receivable) (Details) - Motorola Mobile - USD ($) | Oct. 29, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Effective yield on note | 4.50% | ||
Principal of the Note Receivable | $ 1,448,000,000 | $ 1,500,000,000 | |
Less: unamortized discount for the Note Receivable | (112,000,000) | (175,000,000) | |
Total | 1,336,000,000 | 1,325,000,000 | |
Allowance on note receivable | $ 0 | $ 0 | |
Sale of Motorola Home and Motorola Mobile | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Promissory note received in connection with divestiture, term | 3 years | ||
Principal of the Note Receivable | $ 1,500,000,000 |
Balance Sheet Components (Compo
Balance Sheet Components (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 103,860 | $ 86,977 | $ 71,570 |
Other comprehensive income (loss) before reclassifications | (1,106) | 160 | (191) |
Amounts reclassified from AOCI | (795) | (258) | (222) |
Other comprehensive income (loss) | (1,901) | (98) | (413) |
Ending Balance | 120,331 | 103,860 | 86,977 |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (980) | 16 | (73) |
Other comprehensive income (loss) before reclassifications | (1,067) | (996) | 89 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Other comprehensive income (loss) | (1,067) | (996) | 89 |
Ending Balance | (2,047) | (980) | 16 |
Unrealized Gains (Losses) on Available-for-Sale Investments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 421 | 50 | 604 |
Other comprehensive income (loss) before reclassifications | (715) | 505 | (392) |
Amounts reclassified from AOCI | 208 | (134) | (162) |
Other comprehensive income (loss) | (507) | 371 | (554) |
Ending Balance | (86) | 421 | 50 |
Unrealized Gains on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 586 | 59 | 7 |
Other comprehensive income (loss) before reclassifications | 676 | 651 | 112 |
Amounts reclassified from AOCI | (1,003) | (124) | (60) |
Other comprehensive income (loss) | (327) | 527 | 52 |
Ending Balance | 259 | 586 | 59 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 27 | 125 | 538 |
Ending Balance | $ (1,874) | $ 27 | $ 125 |
Balance Sheet Components (Recla
Balance Sheet Components (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | $ 291 | $ 763 | $ 496 |
Net Income (loss) from discontinued operations | 0 | 516 | (427) |
Revenue | 74,989 | 66,001 | 55,519 |
Net of tax | (3,303) | (3,639) | (2,739) |
Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 795 | 258 | 222 |
Reclassification out of AOCI | Unrealized gains (losses) on available-for-sale investments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | (208) | 153 | 158 |
Net Income (loss) from discontinued operations | 0 | 0 | 43 |
Net of tax | 0 | (19) | (39) |
Net income | (208) | 134 | 162 |
Reclassification out of AOCI | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 1,003 | 124 | 60 |
Reclassification out of AOCI | Foreign exchange contracts | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenue | 1,399 | 171 | 95 |
Reclassification out of AOCI | Foreign exchange contracts | Interest rate contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | 5 | 4 | 0 |
Net of tax | $ (401) | $ (51) | $ (35) |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Aug. 31, 2014 | Jul. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 15,869 | $ 15,869 | $ 15,599 | $ 11,492 | |||
bebop Technologies | |||||||
Business Acquisition [Line Items] | |||||||
Total acquisition price | 272 | ||||||
Total cash consideration | 1 | ||||||
Total stock consideration | 271 | ||||||
Cash acquired | 28 | 28 | |||||
Acquired intangible assets | 59 | 59 | |||||
Goodwill | 206 | 206 | |||||
Liabilities assumed | $ (21) | (21) | |||||
bebop Technologies | Class C Capital Stock | |||||||
Business Acquisition [Line Items] | |||||||
Total shares issued (in shares) | 514 | ||||||
Series of individually immaterial business acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Total acquisition price | 263 | 1,466 | |||||
Cash acquired | $ 4 | 4 | 65 | ||||
Acquired intangible assets | 88 | 88 | 405 | ||||
Goodwill | 138 | 138 | 1,045 | ||||
Liabilities assumed | (49) | ||||||
Assets assumed | 33 | 33 | |||||
Amount of goodwill expected to be deductible for tax purposes | $ 20 | $ 20 | 55 | ||||
Fair value of equity in acquiree | $ 33 | ||||||
Series of individually immaterial business acquisitions | Patents and developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Acquired intangible assets, weighted-average useful life | 4 years 1 month | 5 years 1 month | |||||
Series of individually immaterial business acquisitions | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Acquired intangible assets, weighted-average useful life | 4 years | 4 years 6 months | |||||
Series of individually immaterial business acquisitions | Trade names and other | |||||||
Business Acquisition [Line Items] | |||||||
Acquired intangible assets, weighted-average useful life | 6 years 9 months 15 days | 6 years 11 months | |||||
Nest Labs | |||||||
Business Acquisition [Line Items] | |||||||
Total acquisition price | $ 2,600 | ||||||
Cash acquired | 51 | ||||||
Acquired intangible assets | 430 | ||||||
Goodwill | 2,300 | ||||||
Liabilities assumed | $ (84) | ||||||
Percentage of ownership before acquisition | 12.00% | ||||||
Fair value of equity in acquiree | $ 152 | ||||||
Gain on equity interest | $ 103 | ||||||
Dropcam Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Total cash consideration | $ 517 | ||||||
Cash acquired | 11 | ||||||
Acquired intangible assets | 55 | ||||||
Goodwill | 452 | ||||||
Liabilities assumed | $ (1) | ||||||
Skybox Imaging | |||||||
Business Acquisition [Line Items] | |||||||
Total cash consideration | $ 478 | ||||||
Cash acquired | 6 | ||||||
Acquired intangible assets | 69 | ||||||
Goodwill | 388 | ||||||
Assets assumed | $ 15 |
Collaboration Agreement (Narrat
Collaboration Agreement (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Payments to acquire interest in joint venture | $ 240 |
Research and Development Arrangement | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research commitments | 490 |
Research and Development Arrangement | AbbVie Inc | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Accumulated payments for interest in subsidiary | 750 |
Research and Development Arrangement | Calico | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Payments to acquire interest in joint venture | 250 |
Research commitments | $ 500 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning of Period | $ 15,599 | $ 11,492 | |
Acquisitions | $ 205 | 139 | 4,208 |
Dispositions | (43) | ||
Foreign currency translation and other adjustments | (3) | (71) | (58) |
Allocation in the fourth quarter of 2015 | 0 | ||
Goodwill, End of Period | 15,869 | 15,599 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning of Period | 15,599 | 11,492 | |
Acquisitions | 201 | 139 | 4,208 |
Dispositions | (43) | ||
Foreign currency translation and other adjustments | 4 | (71) | (58) |
Allocation in the fourth quarter of 2015 | (416) | ||
Goodwill, End of Period | 15,456 | 15,599 | |
Other Bets | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning of Period | 0 | 0 | |
Acquisitions | 4 | 0 | 0 |
Dispositions | 0 | ||
Foreign currency translation and other adjustments | (7) | $ 0 | 0 |
Allocation in the fourth quarter of 2015 | 416 | ||
Goodwill, End of Period | $ 413 | $ 0 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,730 | $ 8,653 |
Accumulated Amortization | 4,883 | 4,046 |
Net Carrying Amount | 3,847 | 4,607 |
Patents and developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,592 | 6,547 |
Accumulated Amortization | 3,213 | 2,513 |
Net Carrying Amount | 3,379 | 4,034 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,343 | 1,410 |
Accumulated Amortization | 1,201 | 1,168 |
Net Carrying Amount | 142 | 242 |
Trade names and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 795 | 696 |
Accumulated Amortization | 469 | 365 |
Net Carrying Amount | $ 326 | $ 331 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,016 | $ 806 |
2,017 | 724 |
2,018 | 637 |
2,019 | 528 |
2,020 | 434 |
Thereafter | 718 |
Total | $ 3,847 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Patents and developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 7 years 9 months 15 days | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 6 years | ||
Trade names and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 5 years 4 months 24 days | ||
Acquisition-related intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of acquisition-related intangible assets | $ 892 | $ 1,079 | $ 1,011 |
Patent Royalty Licensing Agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible asset | $ 378 |
Discontinued Operations (Revenu
Discontinued Operations (Revenues and Earnings Attributable to Divestiture) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Net (loss) income from discontinued operations | $ 0 | $ 516 | $ (427) |
Sale of Motorola Home and Motorola Mobile | Motorola Mobile | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenues | 5,486 | 4,306 | |
Loss from discontinued operations before income taxes | (177) | (1,403) | |
Benefits from/(Provision for) income taxes | (47) | 270 | |
Gain on disposal | 740 | 0 | |
Net (loss) income from discontinued operations | $ 516 | (1,133) | |
Sale of Motorola Home and Motorola Mobile | Motorola Home | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenues | 804 | ||
Loss from discontinued operations before income taxes | (67) | ||
Benefits from/(Provision for) income taxes | 16 | ||
Gain on disposal | 757 | ||
Net (loss) income from discontinued operations | $ 706 |
Discontinued Operations (Major
Discontinued Operations (Major Classes of Assets and Liabilities Divested) (Details) - Sale of Motorola Home and Motorola Mobile - USD ($) $ in Millions | Oct. 29, 2014 | Apr. 17, 2013 |
Motorola Mobile | ||
Assets: | ||
Cash and cash equivalents | $ 160 | |
Accounts receivable | 1,103 | |
Inventories | 217 | |
Prepaid expenses and other current assets | 357 | |
Prepaid expenses and other assets, non-current | 290 | |
Property and equipment, net | 542 | |
Intangible assets, net | 985 | |
Goodwill | 43 | |
Total assets | 3,697 | |
Liabilities: | ||
Accounts payable | 1,238 | |
Accrued compensation and benefits | 163 | |
Accrued expenses and other current liabilities | 10 | |
Deferred revenue, current | 165 | |
Other long-term liabilities | 250 | |
Total liabilities | $ 1,826 | |
Motorola Home | ||
Assets: | ||
Accounts receivable | $ 424 | |
Inventories | 228 | |
Deferred income taxes, net | 144 | |
Prepaid expenses and other current assets | 152 | |
Property and equipment, net | 282 | |
Intangible assets, net | 701 | |
Other assets, non-current | 182 | |
Total assets | 2,113 | |
Liabilities: | ||
Accounts payable | 169 | |
Accrued expenses and other current liabilities | 289 | |
Total liabilities | $ 458 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | Oct. 29, 2014 | Apr. 17, 2013 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture of business | $ 0 | $ 386 | $ 2,525 | |||
Motorola Mobile | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Principal of the Note Receivable | $ 1,448 | 1,500 | ||||
Sale of Motorola Home and Motorola Mobile | Motorola Mobile | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Aggregate consideration received in connection with divestiture | $ 2,900 | |||||
Consideration received in connection with divestiture at transaction close date | 1,400 | |||||
Cash received per the purchase and sale agreement | 660 | |||||
Value of shares received in divestiture | $ 750 | |||||
Number of shares of common stock received as part of sale consideration (in shares) | 519.1 | |||||
Principal of the Note Receivable | $ 1,500 | |||||
Promissory note received in connection with divestiture, term | 3 years | |||||
Liability from divestiture | $ 1,826 | |||||
Gain on disposal | 740 | 0 | ||||
Net income from IP licensing arrangement | $ 254 | |||||
Sale of Motorola Home and Motorola Mobile | Motorola Mobile | Indemnification Agreement | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Liability from divestiture | $ 130 | |||||
Sale of Motorola Home and Motorola Mobile | Motorola Home | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Aggregate consideration received in connection with divestiture | $ 2,412 | |||||
Value of shares received in divestiture | $ 175 | |||||
Number of shares of common stock received as part of sale consideration (in shares) | 10.6 | |||||
Liability from divestiture | 458 | |||||
Gain on disposal | $ 757 | |||||
Proceeds from divestiture of business | $ 2,238 | |||||
Proceeds from previous divestiture | $ 174 | |||||
Sale of Motorola Home and Motorola Mobile | Motorola Home | Arris | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Investment ownership percentage | 7.80% | |||||
Sale of Motorola Home and Motorola Mobile | Motorola Home | Indemnification Agreement | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Liability from divestiture | $ 175 |
Other Income (Expense), Net (Co
Other Income (Expense), Net (Components of Interest and Other Income, Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 999 | $ 746 | $ 766 |
Interest expense | (104) | (101) | (81) |
Gain (loss) on marketable securities, net | (208) | 153 | 158 |
Foreign currency exchange losses, net | (422) | (402) | (379) |
Gain (loss) on non-marketable investments, net | (126) | 237 | 8 |
Loss on divestiture of businesses | 0 | 0 | (57) |
Other | 152 | 130 | 81 |
Other | 291 | 763 | 496 |
Foreign currency loss net of recognized foreign exchange contracts | $ 123 | $ 107 | $ 121 |
Commitments and Contingencies71
Commitments and Contingencies (Future Minimum Payments Under Non-Cancelable Operating Leases, Along with Sublease Income Amounts) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 672 |
2,017 | 794 |
2,018 | 796 |
2,019 | 769 |
2,020 | 719 |
Thereafter | 3,706 |
Total minimum payments | 7,456 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,016 | 26 |
2,017 | 13 |
2,018 | 4 |
2,019 | 3 |
2,020 | 3 |
Thereafter | 1 |
Total minimum payments | 50 |
Operating Leases, Future Minimum Payments Due, Net, Fiscal Year Maturity [Abstract] | |
2,016 | 646 |
2,017 | 781 |
2,018 | 792 |
2,019 | 766 |
2,020 | 716 |
Thereafter | 3,705 |
Total minimum payments | $ 7,406 |
Commitments and Contingencies72
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Non-cancelable future minimum lease payments | $ 678 | ||
Rent expense under operating leases, including co-location arrangements | 734 | $ 570 | $ 465 |
Other non-cancelable contractual obligations | 1,700 | ||
Unused letters of credit | 752 | ||
Property, Plant and Equipment | Construction in progress | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Leases recorded on the balance sheet during the period | 422 | ||
Other Noncurrent Liabilities | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Leases recorded as non-current liabilities on the balance sheet during the period | $ 422 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator | |||
Adjustment Payment to Class C capital stockholders - continuing operations | $ (522) | $ 0 | $ 0 |
Allocation of undistributed earnings - continuing operations | 16,348 | 13,620 | 13,160 |
Allocation of undistributed earnings - discontinued operations | 0 | 516 | (427) |
Net income available to all stockholders | 15,826 | $ 14,136 | $ 12,733 |
Denominator | |||
Continuing operations (in USD per share) | $ 20.15 | $ 19.77 | |
Net income (loss) per share - basic (in USD per share) | $ 20.91 | $ 19.13 | |
Numerator | |||
Adjustment Payment to Class C capital stockholders | (522) | $ 0 | $ 0 |
Allocation of undistributed earnings - continuing operations | 16,348 | 13,620 | 13,160 |
Allocation of undistributed earnings - discontinued operations | 0 | $ 516 | $ (427) |
Weighted-average effect of dilutive securities | |||
Continuing operations (in USD per share) | $ 19.82 | $ 19.42 | |
Net income (loss) per share - diluted (in USD per share) | $ 20.57 | $ 18.79 | |
Class A Common Stock | |||
Numerator | |||
Adjustment Payment to Class C capital stockholders - continuing operations | 0 | ||
Allocation of undistributed earnings - continuing operations | 6,695 | $ 5,700 | $ 5,407 |
Allocation of undistributed earnings - discontinued operations | 0 | 216 | (175) |
Net income available to all stockholders | $ 6,695 | $ 5,916 | $ 5,232 |
Denominator | |||
Number of shares used in basic computation (in shares) | 289,640 | 282,877 | 273,518 |
Continuing operations (in USD per share) | $ 23.11 | $ 20.15 | $ 19.77 |
Discontinued operations (in USD per share) | 0 | 0.76 | (0.64) |
Net income (loss) per share - basic (in USD per share) | $ 23.11 | $ 20.91 | $ 19.13 |
Numerator | |||
Adjustment Payment to Class C capital stockholders | $ 0 | ||
Allocation of undistributed earnings - continuing operations | 6,695 | $ 5,700 | $ 5,407 |
Allocation of undistributed earnings - discontinued operations | $ 0 | $ 216 | $ (175) |
Denominator | |||
Number of shares used in basic computation (in shares) | 289,640 | 282,877 | 273,518 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 51,745 | 54,928 | 59,328 |
Employee stock options (in shares) | 1,475 | 2,057 | 2,748 |
Restricted stock units and other contingently issuable shares (in shares) | 920 | 2,515 | 3,215 |
Number of shares used in per share computation (in shares) | 343,780 | 342,377 | 338,809 |
Continuing operations (in USD per share) | $ 22.84 | $ 19.82 | $ 19.42 |
Discontinued operations (in USD per share) | 0 | 0.75 | (0.63) |
Net income (loss) per share - diluted (in USD per share) | $ 22.84 | $ 20.57 | $ 18.79 |
Class A Common Stock | Continuing operations | |||
Numerator | |||
Adjustment Payment to Class C capital stockholders - continuing operations | $ 0 | ||
Allocation of undistributed earnings - continuing operations | 6,695 | $ 5,700 | $ 5,407 |
Numerator | |||
Adjustment Payment to Class C capital stockholders | 0 | ||
Allocation of undistributed earnings - continuing operations | 6,695 | 5,700 | 5,407 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 1,196 | 1,107 | 1,173 |
Reallocation of undistributed earnings | (39) | (20) | 0 |
Allocation of undistributed earnings | 7,852 | 6,787 | 6,580 |
Class A Common Stock | Discontinued operations | |||
Numerator | |||
Allocation of undistributed earnings - discontinued operations | 0 | 216 | (175) |
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 42 | (38) |
Reallocation of undistributed earnings | 0 | (1) | (1) |
Allocation of undistributed earnings | 0 | 257 | (214) |
Allocation of undistributed earnings - discontinued operations | 0 | 216 | (175) |
Class B Common Stock | |||
Numerator | |||
Adjustment Payment to Class C capital stockholders - continuing operations | 0 | ||
Allocation of undistributed earnings - continuing operations | 1,196 | 1,107 | 1,173 |
Allocation of undistributed earnings - discontinued operations | 0 | 42 | (38) |
Net income available to all stockholders | $ 1,196 | $ 1,149 | $ 1,135 |
Denominator | |||
Number of shares used in basic computation (in shares) | 51,745 | 54,928 | 59,328 |
Continuing operations (in USD per share) | $ 23.11 | $ 20.15 | $ 19.77 |
Discontinued operations (in USD per share) | 0 | 0.76 | (0.64) |
Net income (loss) per share - basic (in USD per share) | $ 23.11 | $ 20.91 | $ 19.13 |
Numerator | |||
Adjustment Payment to Class C capital stockholders | $ 0 | ||
Allocation of undistributed earnings - continuing operations | 1,196 | $ 1,107 | $ 1,173 |
Allocation of undistributed earnings - discontinued operations | $ 0 | $ 42 | $ (38) |
Denominator | |||
Number of shares used in basic computation (in shares) | 51,745 | 54,928 | 59,328 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 | 0 |
Employee stock options (in shares) | 0 | 0 | 4 |
Restricted stock units and other contingently issuable shares (in shares) | 0 | 0 | 0 |
Number of shares used in per share computation (in shares) | 51,745 | 54,928 | 59,332 |
Continuing operations (in USD per share) | $ 22.84 | $ 19.82 | $ 19.42 |
Discontinued operations (in USD per share) | 0 | 0.75 | (0.63) |
Net income (loss) per share - diluted (in USD per share) | $ 22.84 | $ 20.57 | $ 18.79 |
Class B Common Stock | Continuing operations | |||
Numerator | |||
Adjustment Payment to Class C capital stockholders - continuing operations | $ 0 | ||
Allocation of undistributed earnings - continuing operations | 1,196 | $ 1,107 | $ 1,173 |
Numerator | |||
Adjustment Payment to Class C capital stockholders | 0 | ||
Allocation of undistributed earnings - continuing operations | 1,196 | 1,107 | 1,173 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | (14) | (18) | (21) |
Allocation of undistributed earnings | 1,182 | 1,089 | 1,152 |
Class B Common Stock | Discontinued operations | |||
Numerator | |||
Allocation of undistributed earnings - discontinued operations | 0 | 42 | (38) |
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | 0 | (1) | 1 |
Allocation of undistributed earnings | 0 | 41 | (37) |
Allocation of undistributed earnings - discontinued operations | 0 | 42 | (38) |
Class C Capital Stock | |||
Numerator | |||
Adjustment Payment to Class C capital stockholders - continuing operations | 522 | ||
Allocation of undistributed earnings - continuing operations | 7,935 | 6,813 | 6,580 |
Allocation of undistributed earnings - discontinued operations | 0 | 258 | (214) |
Net income available to all stockholders | $ 8,457 | $ 7,071 | $ 6,366 |
Denominator | |||
Number of shares used in basic computation (in shares) | 343,241 | 338,130 | 332,846 |
Continuing operations (in USD per share) | $ 24.63 | $ 20.15 | $ 19.77 |
Discontinued operations (in USD per share) | 0 | 0.76 | (0.64) |
Net income (loss) per share - basic (in USD per share) | $ 24.63 | $ 20.91 | $ 19.13 |
Numerator | |||
Adjustment Payment to Class C capital stockholders | $ 522 | ||
Allocation of undistributed earnings - continuing operations | 7,935 | $ 6,813 | $ 6,580 |
Allocation of undistributed earnings - discontinued operations | $ 0 | $ 258 | $ (214) |
Denominator | |||
Number of shares used in basic computation (in shares) | 343,241 | 338,130 | 332,846 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 | 0 |
Employee stock options (in shares) | 1,428 | 2,038 | 2,748 |
Restricted stock units and other contingently issuable shares (in shares) | 4,481 | 4,525 | 3,215 |
Number of shares used in per share computation (in shares) | 349,150 | 344,693 | 338,809 |
Continuing operations (in USD per share) | $ 24.34 | $ 19.82 | $ 19.42 |
Discontinued operations (in USD per share) | 0 | 0.75 | (0.63) |
Net income (loss) per share - diluted (in USD per share) | $ 24.34 | $ 20.57 | $ 18.79 |
Class C Capital Stock | Continuing operations | |||
Numerator | |||
Adjustment Payment to Class C capital stockholders - continuing operations | $ 522 | ||
Allocation of undistributed earnings - continuing operations | 7,935 | $ 6,813 | $ 6,580 |
Numerator | |||
Adjustment Payment to Class C capital stockholders | 522 | ||
Allocation of undistributed earnings - continuing operations | 7,935 | 6,813 | 6,580 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | 39 | 20 | 0 |
Allocation of undistributed earnings | 7,974 | 6,833 | 6,580 |
Class C Capital Stock | Discontinued operations | |||
Numerator | |||
Allocation of undistributed earnings - discontinued operations | 0 | 258 | (214) |
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | 0 | 1 | 1 |
Allocation of undistributed earnings | 0 | 259 | (213) |
Allocation of undistributed earnings - discontinued operations | $ 0 | $ 258 | $ (214) |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||
May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 02, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Class C adjustment payment | $ 522 | ||||
APIC Adjustment | $ 664 | $ 465 | $ 1,174 | ||
Cash payment in lieu of fraction shares | $ 47 | $ 0 | $ 0 | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Class C Capital Stock | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common share issued (in shares) | 853 | ||||
Cash payment in lieu of fraction shares | $ 47 | ||||
Common stock, par value (in dollars per share) | 0.001 | 0.001 | |||
Class A Common Stock | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common stock, par value (in dollars per share) | 0.001 | 0.001 | |||
Class B Common Stock | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Class A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Common share issued (in shares) | 8,714 | 8,508 | 11,706 | ||
APIC Adjustment | $ 664 | $ 465 | $ 1,174 | ||
Class A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | Class C Capital Stock | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
APIC Adjustment | $ 475 |
Stockholders' Equity (Stock-bas
Stockholders' Equity (Stock-based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 5,253 | $ 4,279 | $ 3,343 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 806 | 535 | 469 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 2,687 | 2,200 | 1,641 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 899 | 715 | 552 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 861 | 725 | 465 |
Discontinued operations | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 0 | $ 104 | $ 216 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Activity) (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Options Outstanding - Number of Shares | |
Balance at December 31 (in shares) | shares | 7,240,419 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (2,072,550) |
Forfeited/canceled (in shares) | shares | (268,886) |
Balance at December 31 (in shares) | shares | 4,898,983 |
Exercisable as of December 31 (in shares) | shares | 4,462,847 |
Exercisable as of December 31 and expected to vest thereafter in (in shares) | shares | 4,846,996 |
Options Outstanding - Weighted-Average Exercise Price | |
Balance at December 31 (in dollars per share) | $ 215.56 |
Exercised (in dollars per share) | 189.64 |
Forfeited/canceled (in dollars per share) | 310.47 |
Balance at December 31 (in dollars per share) | 221.31 |
Exercisable as of December 31 (in dollars per share) | 212.02 |
Exercisable as of December 31 and expected to vest thereafter (in dollars per share) | $ 220.29 |
Options Outstanding - Weighted-Average Remaining Contractual Term | |
Balance as of December 31 | 3 years 8 months |
Exercisable as of December 31 | 3 years 5 months |
Exercisable as of December 31 and expected to vest thereafter | 3 years 7 months |
Options Outstanding - Average Intrinsic Value | |
Balance as of December 31 | $ | $ 2,682 |
Exercisable as of December 31 | $ | 2,484 |
Exercisable as of December 31 and expected to vest thereafter | $ | $ 2,658 |
Class A Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Closing stock price (in USD per share) | $ 778.01 |
Class C Capital Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Closing stock price (in USD per share) | $ 758.88 |
Stockholders' Equity (Unvested
Stockholders' Equity (Unvested Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Unvested restricted stock units - number of shares | |
Unvested at December 31 (in shares) | shares | 24,619,549 |
Granted (in shares) | shares | 14,415,740 |
Vested (in shares) | shares | (11,182,606) |
Forfeited/canceled (in shares) | shares | (2,111,497) |
Unvested at December 31 (in shares) | shares | 25,741,186 |
Expected to vest after December 31 (in shares) | shares | 22,672,837 |
Unvested restricted stock units - weighted-average grant-date fair value | |
Unvested at December 31 (in dollars per share) | $ / shares | $ 487.80 |
Granted (in dollars per share) | $ / shares | 546.46 |
Vested (in dollars per share) | $ / shares | 442.01 |
Forfeited/canceled (in dollars per share) | $ / shares | 481.37 |
Unvested at December 31 (in dollars per share) | $ / shares | 531.74 |
Expected to vest after December 31 (in dollars per share) | $ / shares | $ 531.74 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015USD ($)classvote$ / sharesshares | Dec. 31, 2015USD ($)classvote$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($) | Jan. 31, 2016shares | Oct. 31, 2015USD ($) | Oct. 02, 2015$ / sharesshares | Oct. 01, 2015$ / sharesshares | |
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common stock and capital stock, shares authorized (in shares) | 15,000,000,000 | 15,000,000,000 | 15,000,000,000 | |||||
Convertible preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Convertible preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Common stock, shares outstanding (in shares) | 687,348,000 | 687,348,000 | 680,172,000 | |||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | |||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |||||
Number of authorized classes of stock | class | 3 | 3 | ||||||
Shares reserved for future issuance (in shares) | 23,336,944 | 23,336,944 | ||||||
Cash settled awards | $ | $ 50,000,000 | $ 0 | $ 0 | |||||
Total grant date fair value of stock options vested | $ | 33,000,000 | 94,000,000 | 223,000,000 | |||||
Aggregate intrinsic value of all options and warrants exercised | $ | 867,000,000 | $ 589,000,000 | 1,793,000,000 | |||||
Repurchases of capital stock | $ | $ 1,780,000,000 | |||||||
Employee stock options | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Expiration term of award | 10 years | |||||||
Vesting period | 4 years | |||||||
Unrecognized compensation cost | $ | $ 12,000,000 | $ 12,000,000 | ||||||
Weighted average recognition period for unrecognized stock-based compensation expense | 7 months 9 days | |||||||
Restricted Stock Units (RSUs) | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Unrecognized compensation cost | $ | $ 11,100,000,000 | $ 11,100,000,000 | ||||||
Weighted average recognition period for unrecognized stock-based compensation expense | 2 years 8 months | |||||||
Class A Common Stock | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common stock and capital stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 | 9,000,000,000 | |||||
Common stock, shares outstanding (in shares) | 292,297,000 | 292,297,000 | 286,560,000 | |||||
Votes per share class (in votes) | vote | 1 | 1 | ||||||
Class B Common Stock | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | |||||
Common stock, shares outstanding (in shares) | 50,295,000 | 50,295,000 | 53,213,000 | |||||
Votes per share class (in votes) | vote | 10 | 10 | ||||||
Class C Capital Stock | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | |||||
Common stock, shares outstanding (in shares) | 344,756,000 | 344,756,000 | 340,399,000 | |||||
Votes per share class (in votes) | vote | 0 | 0 | ||||||
Class C Capital Stock | October 2015 Share Repurchase Program | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Authorized share repurchase amount | $ | $ 5,099,019,513.59 | |||||||
Repurchases of capital stock (in shares) | 2,391,000 | |||||||
Repurchases of capital stock | $ | $ 1,780,000,000 | |||||||
Continuing operations | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Stock-based compensation expense, related tax benefits | $ | 1,133,000,000 | $ 867,000,000 | 685,000,000 | |||||
Discontinued operations | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Stock-based compensation expense, related tax benefits | $ | $ 0 | $ 30,000,000 | $ 59,000,000 | |||||
Google Inc. | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common stock and capital stock, shares authorized (in shares) | 1,500 | 1,500 | 15,000,000,000 | |||||
Convertible preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Convertible preferred stock, shares authorized (in shares) | 500 | 500 | 100,000,000 | 500 | 100,000,000 | |||
Common stock, shares outstanding (in shares) | 300 | 300 | 680,172,000 | |||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | |||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |||||
Repurchases of capital stock | $ | $ 0 | |||||||
Google Inc. | Class A Common Stock | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common stock and capital stock, shares authorized (in shares) | 500 | 500 | 9,000,000,000 | 500 | 9,000,000,000 | |||
Common stock, shares outstanding (in shares) | 100 | 100 | 286,560,000 | |||||
Google Inc. | Class B Common Stock | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common stock and capital stock, shares authorized (in shares) | 500 | 500 | 3,000,000,000 | 500 | 3,000,000,000 | |||
Common stock, shares outstanding (in shares) | 100 | 100 | 53,213,000 | |||||
Google Inc. | Class C Capital Stock | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Common stock and capital stock, shares authorized (in shares) | 500 | 500 | 3,000,000,000 | 500 | 3,000,000,000 | |||
Common stock, shares outstanding (in shares) | 100 | 100 | 340,399,000 | |||||
Subsequent Event | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Additional shares authorized to repurchase (in shares) | 514,000 | |||||||
Altera Corp. v. Commissioner | ||||||||
Stockholders Equity Note [Line Items] | ||||||||
Stock-based compensation expense, related tax benefits | $ | $ 522,000,000 |
401(k) Plans (Narrative) (Detai
401(k) Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)plan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Number of 401(k) plans | plan | 2 | ||
401(k) savings plan employer contribution | $ | $ 309 | $ 259 | $ 202 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 3,235 | $ 2,716 | $ 2,394 |
State | (397) | 157 | 127 |
Foreign | 723 | 774 | 711 |
Total | 3,561 | 3,647 | 3,232 |
Deferred: | |||
Federal | (198) | 29 | (421) |
State | (43) | 6 | 0 |
Foreign | (17) | (43) | (72) |
Total | (258) | (8) | (493) |
Provision for income taxes | $ 3,303 | $ 3,639 | $ 2,739 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate (in percent) | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected provision at federal statutory tax rate (35%) | $ 6,878 | $ 6,041 | $ 5,567 |
State taxes, net of federal benefit | (291) | 132 | 133 |
Change in valuation allowance | (65) | (164) | (641) |
Foreign rate differential | (2,624) | (2,109) | (2,482) |
Federal research credit | (407) | (318) | (433) |
Basis difference in investment of Arris | 0 | 0 | 644 |
Other adjustments | (188) | 57 | (49) |
Provision for income taxes | $ 3,303 | $ 3,639 | $ 2,739 |
Income Taxes (Significant Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Stock-based compensation expense | $ 534 | $ 376 |
State taxes | 119 | 133 |
Investment loss | 144 | 133 |
Legal settlement accruals | 101 | 175 |
Accrued employee benefits | 832 | 671 |
Accruals and reserves not currently deductible | 245 | 175 |
Net operating losses | 230 | 207 |
Tax credits | 503 | 262 |
Basis difference in investment of Arris | 1,357 | 1,347 |
Prepaid cost sharing | 3,468 | 0 |
Other | 337 | 243 |
Total deferred tax assets | 7,870 | 3,722 |
Valuation allowance | (1,732) | (1,659) |
Total deferred tax assets net of valuation allowance | 6,138 | 2,063 |
Deferred tax liabilities: | ||
Depreciation and amortization | (1,126) | (852) |
Identified intangibles | (787) | (965) |
Mark-to-market investments | (93) | (273) |
Renewable energy investments | (529) | (430) |
Foreign earnings | (3,468) | 0 |
Other | (73) | (125) |
Total deferred tax liabilities | (6,076) | (2,645) |
Net deferred tax liabilities | $ (582) | |
Net deferred tax liabilities | $ 62 |
Income Taxes (Summary of Activi
Income Taxes (Summary of Activity Related to Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 3,294 | $ 2,502 | $ 1,907 |
Increases related to prior year tax positions | 224 | 66 | 158 |
Decreases related to prior year tax positions | (176) | (44) | (37) |
Decreases related to settlement with tax authorities | (27) | (1) | (78) |
Increases related to current year tax positions | 852 | 771 | 552 |
Ending Balance | $ 4,167 | $ 3,294 | $ 2,502 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)tax_issuejurisdiction | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Income Taxes [Line Items] | ||||
Income before income taxes, income from domestic operations amount | $ 8,271 | $ 8,894 | $ 7,651 | |
Income before income taxes, income from foreign operations amount | 11,380 | 8,365 | 8,248 | |
Research tax credit from retroactive extension of prior period tax law | 189 | |||
Cumulative amount of foreign subsidiaries earnings upon which U.S. income taxes have not been provided | 58,300 | |||
Prepaid cost sharing | 3,468 | 0 | ||
Foreign earnings | (3,468) | 0 | ||
Net tax credit carryforwards | 1,044 | |||
Total unrecognized tax benefits | 4,167 | 3,294 | 2,502 | $ 1,907 |
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate | 3,614 | 2,909 | $ 2,309 | |
Uncertain tax positions, accrued interest and penalties | $ 348 | $ 239 | ||
Number of tax jurisdictions | jurisdiction | 2 | |||
IRS | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 482 | |||
Tax issues planned to be litigated in court | tax_issue | 1 | |||
State | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 443 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 263 | |||
Net tax credit carryforwards | $ 223 |
Information about Segments an85
Information about Segments and Geographic Areas (Revenue by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 74,989 | $ 66,001 | $ 55,519 |
Segment Reporting Information [Line Items] | |||
Revenues | 74,541 | 65,674 | 55,507 |
Other Bets | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 448 | $ 327 | $ 12 |
Information about Segments an86
Information about Segments and Geographic Areas (Operating Income/Loss by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | $ 19,360 | $ 16,496 | $ 15,403 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | 23,425 | 19,011 | 16,260 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | (3,567) | (1,942) | (527) |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | $ (498) | $ (573) | $ (330) |
Information about Segments an87
Information about Segments and Geographic Areas (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 9,915 | $ 10,959 | $ 7,358 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 8,849 | 11,173 | 7,006 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 869 | 501 | 187 |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 197 | $ (715) | $ 165 |
Information about Segments an88
Information about Segments and Geographic Areas (Stock-based Compensation and Depreciation, Amortization and Impairment by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Stock-based compensation | $ 5,203 | $ 4,175 | $ 3,127 |
Depreciation, amortization and impairment | 5,063 | 4,979 | 3,939 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation | 4,587 | 3,677 | 2,911 |
Depreciation, amortization and impairment | 4,839 | 4,778 | 3,668 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation | 498 | 347 | 124 |
Depreciation, amortization and impairment | 203 | 148 | 24 |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation | 118 | 151 | 92 |
Depreciation, amortization and impairment | $ 21 | $ 53 | $ 247 |
Information about Segments an89
Information about Segments and Geographic Areas (Revenues by Geographic Area) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 74,989 | $ 66,001 | $ 55,519 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 34,810 | 29,482 | 25,587 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 7,067 | 6,483 | 5,600 |
Rest of the world | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 33,112 | $ 30,036 | $ 24,332 |
Information about Segments an90
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 57,347 | $ 50,531 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 43,686 | 37,421 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 13,661 | $ 13,110 |
Revision of Previously Issued91
Revision of Previously Issued Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Income taxes receivable, net | $ 1,903 | $ 591 | ||
Total current assets | 90,114 | 78,656 | ||
Total assets | 147,461 | 129,187 | ||
Income taxes payable, non-current | 3,663 | 3,340 | ||
Retained earnings | 89,223 | 75,066 | ||
Total stockholders' equity | 120,331 | 103,860 | $ 86,977 | $ 71,570 |
Total liabilities and stockholders' equity | $ 147,461 | 129,187 | ||
As Previously Reported (1) | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Income taxes receivable, net | 1,298 | |||
Total current assets | 79,363 | |||
Total assets | 129,894 | |||
Income taxes payable, non-current | 3,407 | |||
Retained earnings | 75,706 | |||
Total stockholders' equity | 104,500 | |||
Total liabilities and stockholders' equity | 129,894 | |||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Income taxes receivable, net | (707) | |||
Total current assets | (707) | |||
Total assets | (707) | |||
Income taxes payable, non-current | (67) | |||
Retained earnings | (640) | |||
Total stockholders' equity | (640) | |||
Total liabilities and stockholders' equity | $ (707) |
Revision of Previously Issued92
Revision of Previously Issued Financial Statements - Income Statement (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Provision for income taxes | $ 3,303 | $ 3,639 | $ 2,739 |
Net income from continuing operations | 16,348 | 13,620 | 13,160 |
Net income | $ 16,348 | $ 14,136 | $ 12,733 |
Basic net income per share from continuing operations (in USD per share) | $ 20.15 | $ 19.77 | |
Basic net income per share (in USD per share) | 20.91 | 19.13 | |
Diluted net income per share from continuing operations (in USD per share) | 19.82 | 19.42 | |
Diluted net income per share (in USD per share) | $ 20.57 | $ 18.79 | |
As Previously Reported (1) | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Provision for income taxes | $ 3,331 | $ 2,552 | |
Net income from continuing operations | 13,928 | 13,347 | |
Net income | $ 14,444 | $ 12,920 | |
Basic net income per share from continuing operations (in USD per share) | $ 20.61 | $ 20.05 | |
Basic net income per share (in USD per share) | 21.37 | 19.41 | |
Diluted net income per share from continuing operations (in USD per share) | 20.27 | 19.70 | |
Diluted net income per share (in USD per share) | $ 21.02 | $ 19.07 | |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Provision for income taxes | $ 308 | $ 187 | |
Net income from continuing operations | (308) | (187) | |
Net income | $ (308) | $ (187) | |
Basic net income per share from continuing operations (in USD per share) | $ (0.46) | $ (0.28) | |
Basic net income per share (in USD per share) | (0.46) | (0.28) | |
Diluted net income per share from continuing operations (in USD per share) | (0.45) | (0.28) | |
Diluted net income per share (in USD per share) | $ (0.45) | $ (0.28) |
Revision of Previously Issued93
Revision of Previously Issued Financial Statements - Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | $ 16,348 | $ 14,136 | $ 12,733 |
Comprehensive income | $ 14,447 | 14,038 | 12,320 |
As Previously Reported (1) | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | 14,444 | 12,920 | |
Comprehensive income | 14,346 | 12,507 | |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | (308) | (187) | |
Comprehensive income | $ (308) | $ (187) |
Revision of Previously Issued94
Revision of Previously Issued Financial Statements - Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | $ 16,348 | $ 14,136 | $ 12,733 |
Income taxes, net | $ (179) | 591 | 588 |
As Previously Reported (1) | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | 14,444 | 12,920 | |
Income taxes, net | 283 | 401 | |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net income | (308) | (187) | |
Income taxes, net | $ 308 | $ 187 |
Revision of Previously Issued95
Revision of Previously Issued Financial Statements - Narrative (Details) $ in Millions | Mar. 31, 2015USD ($) |
Adjustment | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Cumulative adjustment to income tax expense (benefit) | $ 711 |
Schedule II_ Valuation and Qu96
Schedule II: Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts and sales credits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 225 | $ 631 | $ 581 |
Additions | 579 | 1,240 | 1,128 |
Usage | (508) | (1,646) | (1,078) |
Balance at End of Year | $ 296 | $ 225 | $ 631 |