Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 19, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GOOG, GOOGL | |
Entity Registrant Name | Alphabet Inc. | |
Entity Central Index Key | 1,652,044 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 298,279,094 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 47,043,867 | |
Class C Capital Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 349,479,150 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 10,581 | $ 12,918 |
Marketable securities | 89,562 | 73,415 |
Total cash, cash equivalents, and marketable securities | 100,143 | 86,333 |
Accounts receivable, net of allowance of $467 and $625 | 15,295 | 14,137 |
Income taxes receivable, net | 282 | 95 |
Inventory | 765 | 268 |
Other current assets | 2,860 | 4,575 |
Total current assets | 119,345 | 105,408 |
Non-marketable investments | 7,269 | 5,878 |
Deferred income taxes | 505 | 383 |
Property and equipment, net | 40,120 | 34,234 |
Intangible assets, net | 2,883 | 3,307 |
Goodwill | 16,731 | 16,468 |
Other non-current assets | 2,683 | 1,819 |
Total assets | 189,536 | 167,497 |
Current liabilities: | ||
Accounts payable | 2,674 | 2,041 |
Accrued compensation and benefits | 4,022 | 3,976 |
Accrued expenses and other current liabilities | 9,307 | 6,144 |
Accrued revenue share | 3,200 | 2,942 |
Deferred revenue | 1,269 | 1,099 |
Income taxes payable, net | 221 | 554 |
Total current liabilities | 20,693 | 16,756 |
Long-term debt | 3,964 | 3,935 |
Deferred revenue, non-current | 346 | 202 |
Income taxes payable, non-current | 4,358 | 4,677 |
Deferred income taxes | 151 | 226 |
Other long-term liabilities | 2,924 | 2,665 |
Total liabilities | 32,436 | 28,461 |
Commitments and Contingencies (Note 11) | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 691,293 (Class A 296,992, Class B 47,437, Class C 346,864) and 694,790 (Class A 298,263, Class B 47,054, Class C 349,473) shares issued and outstanding | 39,609 | 36,307 |
Accumulated other comprehensive loss | (746) | (2,402) |
Retained earnings | 118,237 | 105,131 |
Total stockholders’ equity | 157,100 | 139,036 |
Total liabilities and stockholders’ equity | $ 189,536 | $ 167,497 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance | $ 625 | $ 467 |
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 15,000,000,000 | 15,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 694,790,000 | 691,293,000 |
Common stock and capital stock, shares outstanding (in shares) | 694,790,000 | 691,293,000 |
Class A Common Stock | ||
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 298,263,000 | 296,992,000 |
Common stock and capital stock, shares outstanding (in shares) | 298,263,000 | 296,992,000 |
Class B Common Stock | ||
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 47,054,000 | 47,437,000 |
Common stock and capital stock, shares outstanding (in shares) | 47,054,000 | 47,437,000 |
Class C Capital Stock | ||
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 349,473,000 | 346,864,000 |
Common stock and capital stock, shares outstanding (in shares) | 349,473,000 | 346,864,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 27,772 | $ 22,451 | $ 78,532 | $ 64,208 |
Costs and expenses: | ||||
Cost of revenues | 11,148 | 8,699 | 31,316 | 24,477 |
Research and development | 4,205 | 3,596 | 12,319 | 10,326 |
Sales and marketing | 3,042 | 2,565 | 8,583 | 7,367 |
General and administrative | 1,595 | 1,824 | 5,096 | 4,961 |
European Commission fine | 0 | 0 | 2,736 | 0 |
Total costs and expenses | 19,990 | 16,684 | 60,050 | 47,131 |
Income from operations | 7,782 | 5,767 | 18,482 | 17,077 |
Other income (expense), net | 197 | 278 | 693 | 216 |
Income before income taxes | 7,979 | 6,045 | 19,175 | 17,293 |
Provision for income taxes | 1,247 | 984 | 3,493 | 3,148 |
Net income | $ 6,732 | $ 5,061 | $ 15,682 | $ 14,145 |
Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 9.71 | $ 7.36 | $ 22.65 | $ 20.59 |
Diluted net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 9.57 | $ 7.25 | $ 22.30 | $ 20.26 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,732 | $ 5,061 | $ 15,682 | $ 14,145 |
Other comprehensive income: | ||||
Change in foreign currency translation adjustment | 441 | 129 | 1,457 | 166 |
Available-for-sale investments: | ||||
Change in net unrealized gains (losses) | 578 | 71 | 803 | 627 |
Less: reclassification adjustment for net (gains) losses included in net income | 47 | (46) | 98 | 137 |
Net change (net of tax effect of $7, $0, $191, and $0) | 625 | 25 | 901 | 764 |
Cash flow hedges: | ||||
Change in net unrealized gains (losses) | (209) | 32 | (668) | 148 |
Less: reclassification adjustment for net (gains) losses included in net income | 125 | (67) | (34) | (236) |
Net change (net of tax effect of $20, $50, $29, and $342) | (84) | (35) | (702) | (88) |
Other comprehensive income | 982 | 119 | 1,656 | 842 |
Comprehensive income | $ 7,714 | $ 5,180 | $ 17,338 | $ 14,987 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense (benefit) related to available-for-sale investments | $ 0 | $ (7) | $ 0 | $ 191 |
Tax expense (benefit) related to cash flow hedges | $ (50) | $ (20) | $ (342) | $ (29) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities | ||
Net income | $ 15,682 | $ 14,145 |
Adjustments: | ||
Depreciation and impairment of property and equipment | 4,272 | 3,803 |
Amortization and impairment of intangible assets | 617 | 654 |
Stock-based compensation expense | 5,832 | 4,857 |
Deferred income taxes | 242 | 119 |
Loss on marketable and non-marketable investments, net | 160 | 204 |
Other | 99 | 117 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (719) | (299) |
Income taxes, net | (865) | 2,153 |
Other assets | (2,086) | 114 |
Accounts payable | 58 | 238 |
Accrued expenses and other liabilities | 3,121 | 338 |
Accrued revenue share | 182 | 138 |
Deferred revenue | 228 | 42 |
Net cash provided by operating activities | 26,823 | 26,623 |
Investing activities | ||
Purchases of property and equipment | (8,877) | (7,134) |
Proceeds from disposals of property and equipment | 81 | 226 |
Purchases of marketable securities | (78,709) | (70,959) |
Maturities and sales of marketable securities | 62,588 | 54,379 |
Purchases of non-marketable investments | (871) | (862) |
Maturities and sales of non-marketable investments | 215 | 189 |
Cash collateral related to securities lending | 0 | (2,428) |
Investments in reverse repurchase agreements | 0 | 450 |
Acquisitions, net of cash acquired, and purchases of intangible assets | (273) | (324) |
Proceeds from collection of notes receivable | 1,419 | 0 |
Net cash used in investing activities | (24,427) | (26,463) |
Financing activities | ||
Net payments related to stock-based award activities | (3,111) | (2,425) |
Repurchases of capital stock | (2,745) | (3,693) |
Proceeds from issuance of debt, net of costs | 2,698 | 8,729 |
Repayments of debt | (2,762) | (10,051) |
Proceeds from sale of subsidiary shares | 800 | 0 |
Net cash used in financing activities | (5,120) | (7,440) |
Effect of exchange rate changes on cash and cash equivalents | 387 | 137 |
Net decrease in cash and cash equivalents | (2,337) | (7,143) |
Cash and cash equivalents at beginning of period | 12,918 | 16,549 |
Cash and cash equivalents at end of period | $ 10,581 | $ 9,406 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Google Inc. (Google) was incorporated in California in 1998 and re-incorporated in Delaware in 2003. In 2015, we implemented a holding company reorganization, and as a result, Alphabet Inc. (Alphabet) became the successor issuer to Google. We generate revenues primarily by delivering relevant, cost-effective online advertising. Basis of Consolidation The consolidated financial statements of Alphabet include the accounts of Alphabet and 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. Unaudited Interim Financial Information The accompanying Consolidated Balance Sheet as of September 30, 2017 , the Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2017 , the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2017 , and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2017 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of September 30, 2017 , our results of operations for the three and nine months ended September 30, 2016 and 2017 , and our cash flows for the nine months ended September 30, 2016 and 2017 . The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 . These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 , filed with the SEC on February 2, 2017. Use of Estimates Preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to 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 assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Fair Value of Financial Instruments Our financial assets and financial liabilities including 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 values. 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. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In January 2016, the Financial Accounting Standards Board (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 of financial instruments. ASU 2016-01 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2017. The most significant impact to our consolidated financial statements relates to the recognition and measurement of equity investments at fair value in our consolidated statement of income. We expect to elect the measurement alternative, defined as cost, less impairments, adjusted by observable price changes. We anticipate that the adoption of ASU 2016-01 will increase the volatility of our other income (expense), net, as a result of the remeasurement of our equity securities upon the occurrence of observable price changes and impairments. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease recognition requirements in Accounting Standards Codification (ASC) Topic 840, "Leases." Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. Topic 842 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2018. Early adoption by public entities is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and there are certain optional practical expedients that an entity may elect to apply. Full retrospective application is prohibited. We anticipate that the adoption of Topic 842 will materially affect our Consolidated Balance Sheets. We are in the process of implementing changes to our systems and processes in conjunction with our review of existing lease agreements. We plan to adopt Topic 842 effective January 1, 2019 and we are evaluating the use of the optional practical expedients. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In October 2016, the FASB issued Accounting Standards Update No. 2016-16 (ASU 2016-16) "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory." ASU 2016-16 generally accelerates the recognition of income tax consequences for asset transfers between entities under common control. ASU 2016-16 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2017. Entities are required to adopt using a modified retrospective approach with a cumulative adjustment to retained earnings for previously unrecognized income tax expense. We anticipate a retained earnings adjustment of $600 million to $800 million upon adoption related to the unrecognized income tax effects of asset transfers that occurred prior to adoption. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (ASU 2017-04) “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. We currently anticipate that the adoption of ASU 2017-04 will not have a material impact on our consolidated financial statements. Recently adopted accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We adopted Topic 606 as of January 1, 2017 using the modified retrospective transition method. See Note 2 for further details. In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01) “Business Combinations (Topic 805): Clarifying the Definition of a Business.” ASU 2017-01 provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. We adopted ASU 2017-01 as of January 1, 2017 on a prospective basis. Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2017 | |
Revenue Recognition [Abstract] | |
Revenues | Revenues Adoption of ASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2017 , we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2017 . Results for reporting periods beginning after January 1, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. We recorded a net reduction to opening retained earnings of $15 million as of January 1, 2017 due to the cumulative impact of adopting Topic 606, with the impact primarily related to our non-advertising revenues. The impact to revenues as a result of applying Topic 606 was an increase of $10 million and $32 million for the three and nine months ended September 30, 2017 , respectively. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table presents our revenues disaggregated by revenue source (in millions, unaudited). Sales and usage-based taxes are excluded from revenues. Three Months Ended Nine Months Ended September 30, September 30, 2016 (1) 2017 2016 (1) 2017 Google properties $ 16,089 $ 19,723 $ 45,817 $ 55,551 Google Network Members' properties 3,732 4,342 11,167 12,597 Google advertising revenues 19,821 24,065 56,984 68,148 Google other revenues 2,433 3,405 6,677 9,590 Other Bets revenues 197 302 547 794 Total revenues (2) $ 22,451 $ 27,772 $ 64,208 $ 78,532 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. (2) Revenues include hedging gains (losses) of $105 million and $(191) million for the three months ended September 30, 2016 and 2017 , respectively, and $352 million and $29 million for the nine months ended September 30, 2016 and 2017 , respectively, which do not represent revenues recognized from contracts with customers. The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 United States $ 10,649 $ 12,930 $ 30,065 $ 37,021 EMEA (1) 7,392 9,097 22,007 25,733 APAC (1) 3,248 4,199 8,951 11,548 Other Americas (1) 1,162 1,546 3,185 4,230 Total revenues (2) $ 22,451 $ 27,772 $ 64,208 $ 78,532 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas). (2) Revenues include hedging gains (losses) for the three and nine months ended September 30, 2016 and 2017 . Advertising Revenues We generate revenues primarily by delivering advertising on Google properties and Google Network Members’ properties. Google properties revenues consist primarily of advertising revenues generated on Google.com, the Google app, YouTube, and other Google owned and operated properties like Gmail, Google Maps, and Google Play. Google Network Members’ properties revenues consist primarily of advertising revenues generated from placing ads on Google Network Members’ properties. Our customers generally purchase advertising inventory through AdWords, DoubleClick Bid Manager, and DoubleClick AdExchange, among others. Most of our customers pay us on a cost-per-click basis (CPC), which means that an advertiser pays us only when a user clicks on an ad on Google properties or Google Network Members' properties or views certain YouTube ad formats like TrueView. For these customers, we recognize revenue each time a user clicks on the ad or when a user views the ad for a specified period of time. We also offer advertising on other bases such as cost-per-impression (CPM), which means an advertiser pays us based on the number of times their ads are displayed on Google properties or Google Network Members’ properties. For these customers, we recognize revenue each time an ad is displayed. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. For ads placed on Google Network Members’ properties, we evaluate whether we are the principal (i.e., report revenues on a gross basis) or agent (i.e., report revenues on a net basis). Generally, we report advertising revenues for ads placed on Google Network Members’ properties on a gross basis, that is, the amounts billed to our customers are recorded as revenues, and amounts paid to Google Network Members are recorded as cost of revenues. Where we are the principal, we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory before it is transferred to our customers, and is further supported by us being primarily responsible to our customers and having a level of discretion in establishing pricing. Other Revenues Google other revenues and Other Bets revenues consist primarily of revenues from: • Apps, in-app purchases, and digital content in the Google Play store; • Google Cloud offerings; • Hardware; and • Other miscellaneous products and services. As it relates to Google other revenues, the most significant judgment is determining whether we are the principal or agent for app sales and in-app purchases through the Google Play store. We report revenues from these transactions on a net basis because our performance obligation is to facilitate a transaction between app developers and end users, for which we earn a commission. Consequently, the portion of the gross amount billed to end users that is remitted to app developers is not reflected as revenues. Arrangements with Multiple Performance Obligations Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost plus margin. Deferred Revenues We record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. The increase in the deferred revenue balance for the nine months ended September 30, 2017 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $779 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2016 . Our payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not significant. For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Practical Expedients and Exemptions We generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016 and September 30, 2017 (in millions): As of December 31, 2016 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Cash $ 7,078 $ 0 $ 0 $ 7,078 $ 7,078 $ 0 Level 1: Money market and other funds 4,783 0 0 4,783 4,783 0 U.S. government notes 38,454 46 (215 ) 38,285 613 37,672 Marketable equity securities 160 133 0 293 0 293 43,397 179 (215 ) 43,361 5,396 37,965 Level 2: Time deposits (1) 142 0 0 142 140 2 Mutual funds (2) 204 7 0 211 0 211 U.S. government agencies 1,826 0 (11 ) 1,815 300 1,515 Foreign government bonds 2,345 18 (7 ) 2,356 0 2,356 Municipal securities 4,757 15 (65 ) 4,707 2 4,705 Corporate debt securities 12,993 114 (116 ) 12,991 2 12,989 Agency mortgage-backed securities 12,006 26 (216 ) 11,816 0 11,816 Asset-backed securities 1,855 2 (1 ) 1,856 0 1,856 36,128 182 (416 ) 35,894 444 35,450 Total $ 86,603 $ 361 $ (631 ) $ 86,333 $ 12,918 $ 73,415 As of September 30, 2017 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable (unaudited) Cash $ 6,460 $ 0 $ 0 $ 6,460 $ 6,460 $ 0 Level 1: Money market and other funds 1,450 0 0 1,450 1,450 0 U.S. government notes 40,268 12 (163 ) 40,117 919 39,198 Marketable equity securities 226 120 (2 ) 344 0 344 41,944 132 (165 ) 41,911 2,369 39,542 Level 2: Time deposits (1) 145 0 0 145 143 2 Mutual funds (2) 233 14 0 247 0 247 U.S. government agencies 2,841 0 (9 ) 2,832 17 2,815 Foreign government bonds 2,464 8 (15 ) 2,457 0 2,457 Municipal securities 6,774 17 (10 ) 6,781 13 6,768 Corporate debt securities 23,107 49 (35 ) 23,121 1,579 21,542 Agency mortgage-backed securities 10,984 17 (76 ) 10,925 0 10,925 Asset-backed securities 5,261 7 (4 ) 5,264 0 5,264 51,809 112 (149 ) 51,772 1,752 50,020 Total $ 100,213 $ 244 $ (314 ) $ 100,143 $ 10,581 $ 89,562 (1) The majority of our time deposits are foreign deposits. (2) The fair value option was elected for mutual funds with gains (losses) recognized in other income (expense), net. We determine realized gains or losses on the sale of marketable securities on a specific identification method. We recognized gross realized gains of $62 million and $21 million for the three months ended September 30, 2016 and 2017 , respectively, and $221 million and $193 million for the nine months ended September 30, 2016 and 2017 , respectively. We recognized gross realized losses of $12 million and $65 million for the three months ended September 30, 2016 and 2017 , respectively, and $347 million and $274 million for the nine months ended September 30, 2016 and 2017 , respectively. 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, unaudited): As of Due in 1 year $ 22,234 Due in 1 year through 5 years 52,502 Due in 5 years through 10 years 2,172 Due after 10 years 12,063 Total $ 88,971 Impairment Considerations for Marketable 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, 2016 and September 30, 2017 , 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, 2016 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized U.S. government notes $ 26,411 $ (215 ) $ 0 $ 0 $ 26,411 $ (215 ) U.S. government agencies 1,014 (11 ) 0 0 1,014 (11 ) Foreign government bonds 956 (7 ) 0 0 956 (7 ) Municipal securities 3,461 (63 ) 46 (2 ) 3,507 (65 ) Corporate debt securities 6,184 (111 ) 166 (5 ) 6,350 (116 ) Agency mortgage-backed securities 10,184 (206 ) 259 (10 ) 10,443 (216 ) Asset-backed securities 391 (1 ) 0 0 391 (1 ) Total $ 48,601 $ (614 ) $ 471 $ (17 ) $ 49,072 $ (631 ) As of September 30, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized (unaudited) U.S. government notes $ 26,626 $ (115 ) $ 5,409 $ (48 ) $ 32,035 $ (163 ) U.S. government agencies 2,751 (9 ) 0 0 2,751 (9 ) Foreign government bonds 1,362 (13 ) 123 (2 ) 1,485 (15 ) Municipal securities 2,118 (6 ) 432 (4 ) 2,550 (10 ) Corporate debt securities 11,153 (27 ) 793 (8 ) 11,946 (35 ) Agency mortgage-backed securities 8,450 (62 ) 728 (14 ) 9,178 (76 ) Asset-backed securities 2,572 (4 ) 0 0 2,572 (4 ) Marketable equity securities 38 (2 ) 0 0 38 (2 ) Total $ 55,070 $ (238 ) $ 7,485 $ (76 ) $ 62,555 $ (314 ) During the three months ended September 30, 2016 and the three and nine months ended September 30, 2017 , we did no t recognize any other-than-temporary impairment losses. During the nine months ended September 30, 2016 , we recognized $87 million of other-than-temporary impairment losses related to our marketable equity securities. Those losses are included in gain (loss) on marketable securities, net , as a component of other income (expense), net, in the accompanying Consolidated Statements of Income. See Note 6 for further details on other income (expense), net. 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 either other income (expense), net, or revenues, or in the accompanying Consolidated Balance Sheets in accumulated other comprehensive income (AOCI), 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 issuances. Our program is not used for trading or speculative purposes. We enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. To further reduce credit risk, we enter into collateral security arrangements under which the counterparty is required to provide collateral when the net fair value of certain financial instruments fluctuates from contractually established thresholds. We can take possession of the collateral in the event of counterparty default. As of December 31, 2016 and September 30, 2017 , we received cash collateral related to the derivative instruments under our collateral security arrangements of $362 million and $47 million , respectively. Cash Flow Hedges We use foreign currency forwards and option contracts, including collars (an option strategy comprised of a combination of purchased and written options), designated as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar and at times we use interest rate swaps to effectively lock interest rates on anticipated debt issuances. These transactions are designated as cash flow hedges. The notional principal of these contracts was approximately $10.7 billion and $11.7 billion as of December 31, 2016 and September 30, 2017 , respectively. These contracts have maturities of 24 months or less. 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 are immediately reclassified to other income (expense), net. For foreign currency collars, we include the change in time value in our assessment of hedge effectiveness. For forwards and all other option contracts, we exclude the change in the forward points and time value from our assessment of hedge effectiveness. We recognize changes of the excluded components in other income (expense), net. As of September 30, 2017 , the effective portion of our cash flow hedges before tax effect was a net accumulated loss of $440 million , of which a net loss of $473 million is expected to be reclassified from AOCI into earnings within the next 12 months. Fair Value Hedges We use forward contracts designated as fair value hedges to hedge foreign currency risks for our investments denominated in currencies other than the U.S. dollar. We exclude changes in forward points for the forward contracts from the assessment of hedge effectiveness. The notional principal of these contracts was $2.4 billion and $2.5 billion as of December 31, 2016 and September 30, 2017 , respectively. Gains and losses on these forward contracts are recognized in other income (expense), net, along with the offsetting gains and losses of the related hedged items. Other Derivatives Other derivatives not designated as hedging instruments consist of foreign currency forward contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the local currency of a subsidiary. We recognize gains and losses on these contracts, as well as the related costs in other income (expense), net, along with the foreign currency gains and losses on monetary assets and liabilities. The notional principal of the outstanding foreign exchange contracts was $7.9 billion and $17.2 billion as of December 31, 2016 and September 30, 2017 , respectively. The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2016 Balance Sheet Location Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 539 $ 57 $ 596 Total $ 539 $ 57 $ 596 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 4 $ 9 $ 13 Total $ 4 $ 9 $ 13 As of September 30, 2017 Balance Sheet Location Fair Value of Fair Value of Total Fair (unaudited) Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 53 $ 113 $ 166 Total $ 53 $ 113 $ 166 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 459 $ 123 $ 582 Total $ 459 $ 123 $ 582 The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) is summarized below (in millions, unaudited): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship 2016 2017 2016 2017 Foreign exchange contracts $ 52 $ (324 ) $ 240 $ (1,011 ) Gains (Losses) Reclassified from AOCI into Income (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship Location 2016 2017 2016 2017 Foreign exchange contracts Revenues $ 105 $ (191 ) $ 352 $ 29 Interest rate contracts Other income (expense), net 1 1 4 4 Total $ 106 $ (190 ) $ 356 $ 33 Gains (Losses) Recognized in Income on Derivatives (1) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship Location 2016 2017 2016 2017 Foreign exchange contracts Other income (expense), net $ (102 ) $ 26 $ (361 ) $ 72 (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, unaudited): Gains (Losses) Recognized in Income on Derivatives (2) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Fair Value Hedging Relationship Location 2016 2017 2016 2017 Foreign Exchange Hedges: Foreign exchange contracts Other income (expense), net $ 1 $ (89 ) $ 26 $ (216 ) Hedged item Other income (expense), net 1 94 (24 ) 230 Total $ 2 $ 5 $ 2 $ 14 (2) Amounts excluded from effectiveness testing and the ineffective portion of the fair value hedging relationships were not material in all periods presented. The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions, unaudited): Gains (Losses) Recognized in Income on Derivatives Three Months Ended Nine Months Ended September 30, September 30, Derivatives Not Designated As Hedging Instruments Location 2016 2017 2016 2017 Foreign exchange contracts Other income (expense), net $ (67 ) $ (39 ) $ (147 ) $ (263 ) Offsetting of Derivatives We present our forwards and purchased options at gross fair values in the Consolidated Balance Sheets. For foreign currency collars, we present at net fair values where both purchased and written options are with the same counterparty. Our master netting and other similar arrangements allow net settlements under certain conditions. As of December 31, 2016 and September 30, 2017 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets As of December 31, 2016 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 $ 596 $ 0 $ 596 $ (11 ) (1) $ (337 ) $ (73 ) $ 175 As of September 30, 2017 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 (unaudited) Derivatives $ 183 $ (17 ) $ 166 $ (122 ) (1) $ (37 ) $ 0 $ 7 (1) The balances as of December 31, 2016 and September 30, 2017 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. Offsetting of Liabilities As of December 31, 2016 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 $ 13 $ 0 $ 13 $ (11 ) (2) $ 0 $ 0 $ 2 As of September 30, 2017 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 (unaudited) Derivatives $ 599 $ (17 ) $ 582 $ (122 ) (2) $ 0 $ 0 $ 460 (2) The balances as of December 31, 2016 and September 30, 2017 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 | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016 and September 30, 2017 , investments accounted for under the equity method had a carrying value of approximately $1.7 billion . Our share of gains and losses in equity method investments including impairment was a net loss of approximately $61 million and $31 million for the three months ended September 30, 2016 and 2017 , respectively, and a net loss of $209 million and $93 million for the nine months ended September 30, 2016 and 2017 , respectively. As of December 31, 2016 and September 30, 2017 , investments accounted for under the cost method had a carrying value of $3.0 billion and $3.6 billion , respectively, and a fair value of approximately $8.1 billion and $8.9 billion , respectively. 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 reflect our share of equity method investee earnings and losses and impairments of non-marketable equity investments as a component of other income (expense), net, in the accompanying Consolidated Statements of Income. Certain renewable energy investments included in our non-marketable equity investments accounted for under the equity method are variable interest entities (VIE). These entities' activities involve power generation using renewable sources. We have determined that the governance structures of these entities do not allow us to direct the activities that would significantly impact the VIE's economic performance such as setting operating budgets. Therefore, we do not consolidate these VIEs in our financial statements. The carrying value and maximum exposure of these VIEs were $1.2 billion as of December 31, 2016 and $1.1 billion as of September 30, 2017 . The maximum exposure is based on current investments to date. We have determined the single source of our exposure to these VIEs is our capital investment in 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, and vice versa, 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. The cost of these securities were $1.1 billion as of December 31, 2016 and September 30, 2017 . 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 estimate the value based on the best available information at the measurement date. No significant impairments were recognized for the three and nine months ended September 30, 2016 and 2017 . The following table presents a reconciliation for our non-marketable debt securities measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) (in millions, unaudited): Nine Months Ended September 30, 2016 2017 Beginning balance $ 1,024 $ 1,165 Total net gains (losses) Included in earnings 0 (5 ) Included in other comprehensive income 100 699 Purchases 78 85 Sales (7 ) (1 ) Settlements (16 ) (54 ) Ending balance $ 1,179 $ 1,889 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt We have a debt financing program of up to $5.0 billion through the issuance of commercial paper. Net proceeds from this program are used for general corporate purposes. We had no commercial paper outstanding as of December 31, 2016 and September 30, 2017 . Long-Term Debt Google issued $3.0 billion of senior unsecured notes in three tranches (collectively, 2011 Notes) in May 2011, due in 2014, 2016, and 2021, as well as $1.0 billion of senior unsecured notes (2014 Notes) in February 2014 due in 2024. In April 2016, we completed an exchange offer with eligible holders of Google’s 2011 Notes due 2021 and 2014 Notes due 2024 (collectively, the Google Notes). An aggregate principal amount of approximately $1.7 billion of the Google Notes was exchanged for approximately $1.7 billion of Alphabet notes with identical interest rate and maturity. Because the exchange was between a parent and the subsidiary company and for substantially identical notes, the change was treated as a debt modification for accounting purposes with no gain or loss recognized. In August 2016, Alphabet issued $2.0 billion of senior unsecured notes (2016 Notes) due 2026. The net proceeds from the issuance of the 2016 Notes were used for general corporate purposes, including the repayment of outstanding commercial paper. The Alphabet notes due in 2021, 2024, and 2026 rank equally with each other and are structurally subordinate to the outstanding Google Notes. The total outstanding long-term debt is summarized below (in millions): As of As of (unaudited) Long-term debt 3.625% Notes due on May 19, 2021 $ 1,000 $ 1,000 3.375% Notes due on February 25, 2024 1,000 1,000 1.998% Notes due on August 15, 2026 2,000 2,000 Unamortized discount for the Notes above (65 ) (59 ) Subtotal (1) $ 3,935 $ 3,941 Capital lease obligation 0 23 Total long-term debt $ 3,935 $ 3,964 (1) Includes the outstanding (and unexchanged) Google Notes issued in 2011 and 2014 and the Alphabet notes exchanged in 2016. The effective interest yields based on proceeds received from the outstanding notes due in 2021, 2024, and 2026 were 3.734% , 3.377% , and 2.231% , respectively, with interest payable semi-annually. We may redeem these notes at any time in whole or in part at specified redemption prices. The total estimated fair value of all outstanding notes was approximately $3.9 billion as of December 31, 2016 and $4.0 billion as of September 30, 2017 . The fair value was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy. 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 September 30, 2017 . Credit Facility We have a $4.0 billion revolving credit facility which expires in February 2021. The interest rate for the credit facility is determined based on a formula using certain market rates. No amounts were outstanding under the credit facility as of December 31, 2016 and September 30, 2017 . |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Components Disclosure [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Property and Equipment, Net Property and equipment, net, consisted of the following (in millions): As of As of (unaudited) Land and buildings $ 19,804 $ 22,367 Information technology assets 16,084 19,454 Construction in progress 8,166 10,280 Leasehold improvements 3,415 4,208 Furniture and fixtures 58 49 Property and equipment, gross 47,527 56,358 Less: accumulated depreciation and amortization (13,293 ) (16,238 ) Property and equipment, net $ 34,234 $ 40,120 As of September 30, 2017 , assets under capital lease with a cost basis of $364 million were included in property and equipment. Note Receivable In connection with the sale of our Motorola Mobile business to Lenovo Group Limited (Lenovo) on October 29, 2014, we received an interest-free, three -year prepayable promissory note (Note Receivable) due October 2017. The Note Receivable was included on our Consolidated Balance Sheets in other current assets. Based on the general market conditions and the credit quality of Lenovo at the time of the sale, we discounted the Note Receivable at an effective interest rate of 4.5% . The Note Receivable was fully repaid in May 2017. The outstanding balances are shown in the table below (in millions): As of As of (unaudited) Principal of the Note Receivable $ 1,448 $ 0 Less: unamortized discount for the Note Receivable (51 ) 0 Total $ 1,397 $ 0 As of December 31, 2016 , we did not recognize a valuation allowance on the Note Receivable. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following (in millions): As of As of (unaudited) European Commission fine (1) $ 0 $ 2,844 Accrued customer liabilities 1,256 1,262 Other accrued expenses and current liabilities 4,888 5,201 Accrued expenses and other current liabilities $ 6,144 $ 9,307 (1) Includes the effects of foreign exchange. Accumulated Other Comprehensive Income (Loss) The components of AOCI, net of tax, were as follows (in millions, unaudited): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2015 $ (2,047 ) $ (86 ) $ 259 $ (1,874 ) Other comprehensive income (loss) before reclassifications 166 627 148 941 Amounts reclassified from AOCI 0 137 (236 ) (99 ) Other comprehensive income (loss) 166 764 (88 ) 842 Balance as of September 30, 2016 $ (1,881 ) $ 678 $ 171 $ (1,032 ) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2016 $ (2,646 ) $ (179 ) $ 423 $ (2,402 ) Other comprehensive income (loss) before reclassifications 1,457 803 (668 ) 1,592 Amounts reclassified from AOCI 0 98 (34 ) 64 Other comprehensive income (loss) 1,457 901 (702 ) 1,656 Balance as of September 30, 2017 $ (1,189 ) $ 722 $ (279 ) $ (746 ) The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income Three Months Ended Nine Months Ended September 30, September 30, AOCI Components Location 2016 2017 2016 2017 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ 46 $ (47 ) $ (137 ) $ (98 ) Provision for income taxes 0 0 0 0 Net of tax $ 46 $ (47 ) $ (137 ) $ (98 ) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue $ 105 $ (191 ) $ 352 $ 29 Interest rate contracts Other income (expense), net 1 1 4 4 Benefit (provision) for income taxes (39 ) 65 (120 ) 1 Net of tax $ 67 $ (125 ) $ 236 $ 34 Total amount reclassified, net of tax $ 113 $ (172 ) $ 99 $ (64 ) Other Income (Expense), Net The components of other income (expense), net, were as follows (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Interest income $ 318 $ 306 $ 895 $ 912 Interest expense (29 ) (27 ) (91 ) (73 ) Foreign currency exchange losses, net (123 ) (53 ) (437 ) (101 ) Gain (loss) on marketable securities, net 50 (44 ) (126 ) (81 ) Gain (loss) on non-marketable investments, net 40 (32 ) (78 ) (79 ) Other 22 47 53 115 Other income (expense), net $ 278 $ 197 $ 216 $ 693 Interest expense in the preceding table is net of interest capitalized of $0 million and $13 million for the three months ended September 30, 2016 and 2017 , respectively, and $0 million and $32 million for the nine months ended September 30, 2016 and 2017 , respectively. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the nine months ended September 30, 2017 , we completed various acquisitions and purchases of intangible assets for total consideration of approximately $312 million . In aggregate, $12 million was cash acquired, $111 million was attributed to intangible assets, $205 million was attributed to goodwill, and $16 million was attributed to net liabilities assumed . These acquisitions generally enhance the breadth and depth of our offerings and expand our expertise in engineering and other functional areas. The amount of goodwill expected to be deductible for tax purposes is approximately $24 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 intangible assets acquired and purchased during the nine months ended September 30, 2017 , patents and developed technology have a weighted-average useful life of 3.9 years, customer relationships have a weighted-average useful life of 3.1 years, and trade names and other have a weighted-average useful life of 8.8 years. |
Calico
Calico | 9 Months Ended |
Sep. 30, 2017 | |
Research and Development [Abstract] | |
Calico | Calico In September 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. As of September 30, 2017 , we have contributed $240 million to Calico in exchange for Calico convertible preferred units and are committed to fund an additional $490 million on an as-needed basis. Calico is a VIE and its results of operations and statement of financial position are included in our consolidated financial statements as we have the power to direct the activities that most significantly impact its economic performance. In September 2014, AbbVie Inc. (AbbVie) and Calico announced a research and development collaboration agreement intended to help both companies discover, develop, and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. As of September 30, 2017 , AbbVie has contributed $750 million to fund the collaboration pursuant to the agreement, which reflects its total commitment. As of September 30, 2017 , Calico has contributed $250 million and committed up to an additional $500 million . Calico has used its scientific expertise to establish a world-class research and development facility, with a focus on drug discovery and early drug development; and AbbVie provides scientific and clinical development support and its commercial expertise to bring new discoveries to market. Both companies share costs and profits equally. AbbVie's contribution has been recorded as a liability on Calico's financial statements, which is reduced and reflected as a reduction to research and development expense as eligible research and development costs are incurred by Calico over the next few years. |
Verily
Verily | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Verily | Verily Verily is a life science company with a mission to make the world's health data useful so that people enjoy healthier lives. Verily is a VIE and its results of operations and statement of financial position are included in our consolidated financial statements as we have the power to direct the activities that most significantly impact its economic performance. In January 2017 , Temasek, a Singapore-based investment company, signed a binding commitment to purchase a noncontrolling interest in Verily for an aggregate of $800 million in cash. In the first quarter of 2017, the first tranche of the investment closed and we received $480 million . The second and final tranche of the investment closed in the third quarter of 2017 and we received the remaining $320 million . The transaction is accounted for as an equity transaction and no gain or loss was recognized. Of the $800 million received, $78 million was recorded as noncontrolling interest and $722 million was recorded as additional paid-in capital. Noncontrolling interest and net loss attributable to noncontrolling interest were not separately presented on our consolidated financial statements as of and for the three and nine months ended September 30, 2017 as the amounts were not material. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill allocated to our disclosed segments for the nine months ended September 30, 2017 were as follows (in millions, unaudited): Google Other Bets Total Consolidated Balance as of December 31, 2016 $ 16,027 $ 441 $ 16,468 Acquisitions 196 9 205 Foreign currency translation and other adjustments 57 1 58 Balance as of September 30, 2017 $ 16,280 $ 451 $ 16,731 Other Intangible Assets Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 5,542 $ 2,710 $ 2,832 Customer relationships 352 197 155 Trade names and other 463 143 320 Total $ 6,357 $ 3,050 $ 3,307 As of September 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (unaudited) Patents and developed technology $ 5,312 $ 2,931 $ 2,381 Customer relationships 358 246 112 Trade names and other 548 158 390 Total $ 6,218 $ 3,335 $ 2,883 Amortization expense relating to purchased intangible assets was $203 million and $194 million for the three months ended September 30, 2016 and 2017 , respectively, and $629 million and $600 million for the nine months ended September 30, 2016 and 2017 , respectively. As of September 30, 2017 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter are as follows (in millions, unaudited): Remainder of 2017 $ 193 2018 726 2019 615 2020 493 2021 459 Thereafter 397 $ 2,883 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters Antitrust Investigations On November 30, 2010, the European Commission's (EC) Directorate General for Competition opened an investigation into various antitrust-related complaints against us. On April 15, 2015, the EC issued a Statement of Objections (SO) regarding the display and ranking of shopping search results and ads, to which we responded on August 27, 2015. On July 14, 2016, the EC issued a Supplementary SO regarding shopping search results and ads. On June 27, 2017, the EC announced its decision that certain actions taken by Google regarding its display and ranking of shopping search results and ads infringed European competition law. The EC decision imposed a €2.42 billion (approximately $2.74 billion as of June 27, 2017) fine. On September 11, 2017, we appealed the EC decision and on September 27, 2017, we implemented product changes to bring shopping ads into compliance with the EC's decision. We recognized a charge of approximately $2.74 billion for the fine in the second quarter of 2017. The fine is included in accrued expenses and other current liabilities on our Consolidated Balance Sheet as we provided bank guarantees in lieu of a cash payment for the fine. On April 20, 2016, the EC issued an SO regarding certain Android distribution practices. On July 14, 2016, the EC issued an SO regarding the syndication of AdSense for Search. We responded to the SOs and continue to respond to the EC's informational requests. There is significant uncertainty as to the outcomes of these investigations; however, adverse decisions could result in fines and directives to alter or terminate certain conduct. Given the nature of these cases, we are unable to estimate the reasonably possible loss or ranges of loss, if any. We remain committed to working with the EC to resolve these matters. The Comision Nacional de Defensa de la Competencia in Argentina, the Competition Commission of India (CCI), Brazil's Council for Economic Defense (CADE), and the Korean Fair Trade Commission have also opened investigations into certain of our business practices. In November 2016, we responded to the CCI Director General's report with interim findings of competition law infringements regarding search and ads. Patent and Intellectual Property Claims We have had patent, copyright, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe the intellectual property rights of others. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services, and may also cause us to change our business practices, and require development of non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to litigate intellectual property disputes because an ultimate loss for a company or its suppliers in an ITC action could result in a prohibition on importing infringing products into the U.S. Because the U.S. is an important market, a prohibition on importation could have an adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating workarounds that may limit certain features of our products. Furthermore, many of our agreements with our customers and partners require us to indemnify them for certain intellectual property infringement claims against them, which would increase our costs as a result of defending such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims. Our customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely impact our business. Oracle America, Inc. (Oracle) brought a copyright lawsuit against Google in the Northern District of California, alleging that Google's Android infringes Oracle's copyrights related to certain Java application programming interfaces. After trial, final judgment was entered by the district court in favor of Google on June 8, 2016, and the court decided post-trial motions in favor of Google. Oracle has appealed. We believe this lawsuit is without merit and are defending ourselves vigorously. Given the nature of this case, we are unable to estimate the reasonably possible loss or range of loss, if any, arising from this matter. Other We are also regularly subject to claims, suits, regulatory and government investigations, and other proceedings involving competition (such as the pending EC investigations described above), intellectual property, privacy, tax, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil or criminal penalties, or other adverse consequences. Certain of our outstanding legal matters include speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. We evaluate, 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. Indirect Taxes and Other Non-Income Taxes We are under audit by various domestic and foreign tax authorities with regards to indirect tax and other non-income tax matters. The subject matter of indirect tax and other non-income tax audits primarily arises from disputes on the tax treatment and tax rate applied to the sale of our products and services in these jurisdictions and the tax treatment of certain employee benefits. We accrue indirect taxes and other non-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. We believe these matters are without merit and we are defending ourselves vigorously. Due to the inherent complexity and uncertainty of these matters and judicial process in certain jurisdictions, the final outcome may be materially different from our expectations. For information regarding income tax contingencies, see Note 14 . |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands, and per share amounts, unaudited): Three Months Ended September 30, 2016 2017 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 2,171 $ 357 $ 2,533 $ 2,891 $ 457 $ 3,384 Denominator Number of shares used in per share computation 294,945 48,513 344,103 297,804 47,078 348,603 Basic net income per share $ 7.36 $ 7.36 $ 7.36 $ 9.71 $ 9.71 $ 9.71 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 2,171 $ 357 $ 2,533 $ 2,891 $ 457 $ 3,384 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 357 0 0 457 0 0 Reallocation of undistributed earnings (25 ) (5 ) 25 (38 ) (7 ) 38 Allocation of undistributed earnings $ 2,503 $ 352 $ 2,558 $ 3,310 $ 450 $ 3,422 Denominator Number of shares used in basic computation 294,945 48,513 344,103 297,804 47,078 348,603 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 48,513 0 0 47,078 0 0 Restricted stock units and other contingently issuable shares 1,923 0 8,956 1,070 0 9,161 Number of shares used in per share computation 345,381 48,513 353,059 345,952 47,078 357,764 Diluted net income per share $ 7.25 $ 7.25 $ 7.25 $ 9.57 $ 9.57 $ 9.57 Nine Months Ended September 30, 2016 2017 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 6,047 $ 1,013 $ 7,085 $ 6,734 $ 1,069 $ 7,879 Denominator Number of shares used in per share computation 293,723 49,214 344,162 297,291 47,189 347,853 Basic net income per share $ 20.59 $ 20.59 $ 20.59 $ 22.65 $ 22.65 $ 22.65 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 6,047 $ 1,013 $ 7,085 $ 6,734 $ 1,069 $ 7,879 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,013 0 0 1,069 0 0 Reallocation of undistributed earnings (68 ) (16 ) 68 (92 ) (17 ) 92 Allocation of undistributed earnings $ 6,992 $ 997 $ 7,153 $ 7,711 $ 1,052 $ 7,971 Denominator Number of shares used in basic computation 293,723 49,214 344,162 297,291 47,189 347,853 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 49,214 0 0 47,189 0 0 Restricted stock units and other contingently issuable shares 2,204 0 8,896 1,255 0 9,497 Number of shares used in per share computation 345,141 49,214 353,058 345,735 47,189 357,350 Diluted net income per share $ 20.26 $ 20.26 $ 20.26 $ 22.30 $ 22.30 $ 22.30 For the periods presented above, the net income per share amounts are the same for Class A and Class B common stock and Class C capital stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Amended and Restated Certificate of Incorporation of Alphabet Inc. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock-Based Compensation For the three months ended September 30, 2016 and 2017 , total stock-based compensation expense was $1,902 million and $1,881 million , including amounts associated with awards we expect to settle in Alphabet stock of $1,860 million and $1,820 million , respectively. For the nine months ended September 30, 2016 and 2017 , total stock-based compensation expense was $4,912 million and $6,008 million , including amounts associated with awards we expect to settle in Alphabet stock of $4,857 million and $5,832 million , respectively. Stock-Based Award Activities The following table summarizes the activities for our unvested restricted stock units (RSUs) for the nine months ended September 30, 2017 (unaudited): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2016 25,348,955 $ 624.92 Granted 7,246,476 $ 826.60 Vested (9,112,936 ) $ 610.82 Forfeited/canceled (1,029,398 ) $ 651.68 Unvested as of September 30, 2017 22,453,097 $ 694.86 As of September 30, 2017 , there was $14.0 billion of unrecognized compensation cost related to unvested employee RSUs. This amount is expected to be recognized over a weighted-average period of 2.5 years . Share Repurchases In October 2016, the board of directors of Alphabet authorized the company to repurchase up to $7,019,340,976.83 of its Class C capital stock. The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The repurchase program does not have an expiration date. In the nine months ended September 30, 2017 , we repurchased and subsequently retired 3.1 million shares of Alphabet Class C capital stock for an aggregate amount of $2.7 billion . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes. Our total gross unrecognized tax benefits were $5.4 billion and $5.1 billion as of December 31, 2016 and September 30, 2017 , respectively. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $4.3 billion and $3.9 billion as of December 31, 2016 and September 30, 2017 , respectively. Our effective tax rate is lower than the U.S. statutory rate primarily because of more earnings realized in countries that have lower statutory tax rates. Our effective tax rate in the future will depend on the portion of our profits earned within and outside the United States. In addition, we are subject to the continuous examination of our income tax returns by the Internal Revenue Service (IRS) and other domestic and foreign tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the 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 the provision for income taxes in the period such resolution occurs. We have received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend against any and all such claims as presented. While we believe it is more likely than not that our tax position will be sustained, it is reasonably possible that we will have future obligations related to these matters. For information regarding indirect taxes and other non-income taxes, see Note 11 . |
Information about Segments and
Information about Segments and Geographic Areas | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Information about Segments and Geographic Areas | Information about Segments and Geographic Areas We operate our business in multiple operating segments. Google is our only reportable segment. None of our other segments meet the quantitative thresholds to qualify as reportable segments; therefore, the other operating segments are combined and disclosed below as Other Bets. Our reported segments are described below: • Google – Google includes our main internet products such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, and Google Play as well as our hardware initiatives. Our technical infrastructure and some newer efforts like virtual reality are also included in Google. Google generates revenues primarily from advertising; sales of apps, in-app purchases, and digital content; services fees for cloud offerings; and sales of hardware products. • Other Bets – Other Bets is a combination of multiple operating segments that are not individually material. Other Bets includes businesses such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X. Revenues from the Other Bets are derived primarily through the sales of internet and TV services through Google Fiber, sales of Nest products and services, and licensing and R&D services through Verily. Revenues, cost of revenues, and operating expenses are generally directly attributed to our segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. Our Chief Operating Decision Maker does not evaluate operating segments using asset information. Prior period segment information has been recast to conform to the current period segment presentation. Information about segments during the periods presented were as follows (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Revenues: Google $ 22,254 $ 27,470 $ 63,661 $ 77,738 Other Bets 197 302 547 794 Total revenues $ 22,451 $ 27,772 $ 64,208 $ 78,532 Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Operating income (loss): Google $ 6,774 $ 8,744 $ 20,009 $ 24,145 Other Bets (861 ) (812 ) (2,490 ) (2,439 ) Reconciling items (1) (146 ) (150 ) (442 ) (3,224 ) Total income from operations $ 5,767 $ 7,782 $ 17,077 $ 18,482 (1) Reconciling items are primarily comprised of the European Commission fine for the nine months ended September 30, 2017, as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments for all periods presented. Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Capital expenditures: Google $ 2,434 $ 3,559 $ 6,529 $ 8,800 Other Bets 324 77 881 398 Reconciling items (2) (204 ) (98 ) (276 ) (321 ) Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 2,554 $ 3,538 $ 7,134 $ 8,877 (2) Reconciling items are related to timing differences of payments as segment capital expenditures are on accrual basis while total capital expenditures shown on the Consolidated Statements of Cash Flow are on cash basis and other miscellaneous differences. Stock-based compensation (SBC) and depreciation, amortization, and impairment are included in segment operating income (loss) as shown below (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Stock-based compensation: Google $ 1,629 $ 1,654 $ 4,273 $ 5,362 Other Bets 199 130 486 355 Reconciling items (3) 32 36 98 115 Total stock-based compensation (4) $ 1,860 $ 1,820 $ 4,857 $ 5,832 Depreciation, amortization, and impairment: Google $ 1,488 $ 1,667 $ 4,214 $ 4,606 Other Bets 104 94 239 283 Reconciling items (5) 4 0 4 0 Total depreciation, amortization, and impairment as presented on the Consolidated Statements of Cash Flows $ 1,596 $ 1,761 $ 4,457 $ 4,889 (3) Reconciling items represent corporate administrative costs that are not allocated to individual segments. (4) For purposes of segment reporting, SBC represents awards that we expect to settle in Alphabet stock. (5) Reconciling items are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. The following table presents our long-lived assets by geographic area (in millions): As of As of (unaudited) Long-lived assets: United States $ 47,383 $ 53,051 International 14,706 17,140 Total long-lived assets $ 62,089 $ 70,191 For revenues by geography, see Note 2 . |
Nature of Operations and Summ23
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Google Inc. (Google) was incorporated in California in 1998 and re-incorporated in Delaware in 2003. In 2015, we implemented a holding company reorganization, and as a result, Alphabet Inc. (Alphabet) became the successor issuer to Google. We generate revenues primarily by delivering relevant, cost-effective online advertising. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements of Alphabet include the accounts of Alphabet and 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. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying Consolidated Balance Sheet as of September 30, 2017 , the Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2017 , the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2017 , and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2017 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of September 30, 2017 , our results of operations for the three and nine months ended September 30, 2016 and 2017 , and our cash flows for the nine months ended September 30, 2016 and 2017 . The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 . These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 , filed with the SEC on February 2, 2017. |
Use of Estimates | Use of Estimates Preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to 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 assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial assets and financial liabilities including 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 values. 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In January 2016, the Financial Accounting Standards Board (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 of financial instruments. ASU 2016-01 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2017. The most significant impact to our consolidated financial statements relates to the recognition and measurement of equity investments at fair value in our consolidated statement of income. We expect to elect the measurement alternative, defined as cost, less impairments, adjusted by observable price changes. We anticipate that the adoption of ASU 2016-01 will increase the volatility of our other income (expense), net, as a result of the remeasurement of our equity securities upon the occurrence of observable price changes and impairments. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease recognition requirements in Accounting Standards Codification (ASC) Topic 840, "Leases." Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. Topic 842 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2018. Early adoption by public entities is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and there are certain optional practical expedients that an entity may elect to apply. Full retrospective application is prohibited. We anticipate that the adoption of Topic 842 will materially affect our Consolidated Balance Sheets. We are in the process of implementing changes to our systems and processes in conjunction with our review of existing lease agreements. We plan to adopt Topic 842 effective January 1, 2019 and we are evaluating the use of the optional practical expedients. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2019. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In October 2016, the FASB issued Accounting Standards Update No. 2016-16 (ASU 2016-16) "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory." ASU 2016-16 generally accelerates the recognition of income tax consequences for asset transfers between entities under common control. ASU 2016-16 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2017. Entities are required to adopt using a modified retrospective approach with a cumulative adjustment to retained earnings for previously unrecognized income tax expense. We anticipate a retained earnings adjustment of $600 million to $800 million upon adoption related to the unrecognized income tax effects of asset transfers that occurred prior to adoption. In January 2017, the FASB issued Accounting Standards Update No. 2017-04 (ASU 2017-04) “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019; early adoption is permitted. We currently anticipate that the adoption of ASU 2017-04 will not have a material impact on our consolidated financial statements. Recently adopted accounting pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We adopted Topic 606 as of January 1, 2017 using the modified retrospective transition method. See Note 2 for further details. In January 2017, the FASB issued Accounting Standards Update No. 2017-01 (ASU 2017-01) “Business Combinations (Topic 805): Clarifying the Definition of a Business.” ASU 2017-01 provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. We adopted ASU 2017-01 as of January 1, 2017 on a prospective basis. |
Prior Period Reclassifications | Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Revenue Recognition | Most of our customers pay us on a cost-per-click basis (CPC), which means that an advertiser pays us only when a user clicks on an ad on Google properties or Google Network Members' properties or views certain YouTube ad formats like TrueView. For these customers, we recognize revenue each time a user clicks on the ad or when a user views the ad for a specified period of time. We also offer advertising on other bases such as cost-per-impression (CPM), which means an advertiser pays us based on the number of times their ads are displayed on Google properties or Google Network Members’ properties. For these customers, we recognize revenue each time an ad is displayed. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. For ads placed on Google Network Members’ properties, we evaluate whether we are the principal (i.e., report revenues on a gross basis) or agent (i.e., report revenues on a net basis). Generally, we report advertising revenues for ads placed on Google Network Members’ properties on a gross basis, that is, the amounts billed to our customers are recorded as revenues, and amounts paid to Google Network Members are recorded as cost of revenues. Where we are the principal, we control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising inventory before it is transferred to our customers, and is further supported by us being primarily responsible to our customers and having a level of discretion in establishing pricing. Other Revenues Google other revenues and Other Bets revenues consist primarily of revenues from: • Apps, in-app purchases, and digital content in the Google Play store; • Google Cloud offerings; • Hardware; and • Other miscellaneous products and services. As it relates to Google other revenues, the most significant judgment is determining whether we are the principal or agent for app sales and in-app purchases through the Google Play store. We report revenues from these transactions on a net basis because our performance obligation is to facilitate a transaction between app developers and end users, for which we earn a commission. Consequently, the portion of the gross amount billed to end users that is remitted to app developers is not reflected as revenues. Arrangements with Multiple Performance Obligations Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost plus margin. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Revenue Recognition [Abstract] | |
Revenue by Revenue Source | The following table presents our revenues disaggregated by revenue source (in millions, unaudited). Sales and usage-based taxes are excluded from revenues. Three Months Ended Nine Months Ended September 30, September 30, 2016 (1) 2017 2016 (1) 2017 Google properties $ 16,089 $ 19,723 $ 45,817 $ 55,551 Google Network Members' properties 3,732 4,342 11,167 12,597 Google advertising revenues 19,821 24,065 56,984 68,148 Google other revenues 2,433 3,405 6,677 9,590 Other Bets revenues 197 302 547 794 Total revenues (2) $ 22,451 $ 27,772 $ 64,208 $ 78,532 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. (2) Revenues include hedging gains (losses) of $105 million and $(191) million for the three months ended September 30, 2016 and 2017 , respectively, and $352 million and $29 million for the nine months ended September 30, 2016 and 2017 , respectively, which do not represent revenues recognized from contracts with customers. |
Revenue by Geographic Location | The following table presents our revenues disaggregated by geography, based on the billing addresses of our customers (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 United States $ 10,649 $ 12,930 $ 30,065 $ 37,021 EMEA (1) 7,392 9,097 22,007 25,733 APAC (1) 3,248 4,199 8,951 11,548 Other Americas (1) 1,162 1,546 3,185 4,230 Total revenues (2) $ 22,451 $ 27,772 $ 64,208 $ 78,532 (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas). (2) Revenues include hedging gains (losses) for the three and nine months ended September 30, 2016 and 2017 . |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016 and September 30, 2017 (in millions): As of December 31, 2016 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Cash $ 7,078 $ 0 $ 0 $ 7,078 $ 7,078 $ 0 Level 1: Money market and other funds 4,783 0 0 4,783 4,783 0 U.S. government notes 38,454 46 (215 ) 38,285 613 37,672 Marketable equity securities 160 133 0 293 0 293 43,397 179 (215 ) 43,361 5,396 37,965 Level 2: Time deposits (1) 142 0 0 142 140 2 Mutual funds (2) 204 7 0 211 0 211 U.S. government agencies 1,826 0 (11 ) 1,815 300 1,515 Foreign government bonds 2,345 18 (7 ) 2,356 0 2,356 Municipal securities 4,757 15 (65 ) 4,707 2 4,705 Corporate debt securities 12,993 114 (116 ) 12,991 2 12,989 Agency mortgage-backed securities 12,006 26 (216 ) 11,816 0 11,816 Asset-backed securities 1,855 2 (1 ) 1,856 0 1,856 36,128 182 (416 ) 35,894 444 35,450 Total $ 86,603 $ 361 $ (631 ) $ 86,333 $ 12,918 $ 73,415 As of September 30, 2017 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable (unaudited) Cash $ 6,460 $ 0 $ 0 $ 6,460 $ 6,460 $ 0 Level 1: Money market and other funds 1,450 0 0 1,450 1,450 0 U.S. government notes 40,268 12 (163 ) 40,117 919 39,198 Marketable equity securities 226 120 (2 ) 344 0 344 41,944 132 (165 ) 41,911 2,369 39,542 Level 2: Time deposits (1) 145 0 0 145 143 2 Mutual funds (2) 233 14 0 247 0 247 U.S. government agencies 2,841 0 (9 ) 2,832 17 2,815 Foreign government bonds 2,464 8 (15 ) 2,457 0 2,457 Municipal securities 6,774 17 (10 ) 6,781 13 6,768 Corporate debt securities 23,107 49 (35 ) 23,121 1,579 21,542 Agency mortgage-backed securities 10,984 17 (76 ) 10,925 0 10,925 Asset-backed securities 5,261 7 (4 ) 5,264 0 5,264 51,809 112 (149 ) 51,772 1,752 50,020 Total $ 100,213 $ 244 $ (314 ) $ 100,143 $ 10,581 $ 89,562 (1) The majority of our time deposits are foreign deposits. (2) The fair value option was elected for mutual funds with gains (losses) recognized in other income (expense), net. |
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, unaudited): As of Due in 1 year $ 22,234 Due in 1 year through 5 years 52,502 Due in 5 years through 10 years 2,172 Due after 10 years 12,063 Total $ 88,971 |
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, 2016 and September 30, 2017 , 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, 2016 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized U.S. government notes $ 26,411 $ (215 ) $ 0 $ 0 $ 26,411 $ (215 ) U.S. government agencies 1,014 (11 ) 0 0 1,014 (11 ) Foreign government bonds 956 (7 ) 0 0 956 (7 ) Municipal securities 3,461 (63 ) 46 (2 ) 3,507 (65 ) Corporate debt securities 6,184 (111 ) 166 (5 ) 6,350 (116 ) Agency mortgage-backed securities 10,184 (206 ) 259 (10 ) 10,443 (216 ) Asset-backed securities 391 (1 ) 0 0 391 (1 ) Total $ 48,601 $ (614 ) $ 471 $ (17 ) $ 49,072 $ (631 ) As of September 30, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized (unaudited) U.S. government notes $ 26,626 $ (115 ) $ 5,409 $ (48 ) $ 32,035 $ (163 ) U.S. government agencies 2,751 (9 ) 0 0 2,751 (9 ) Foreign government bonds 1,362 (13 ) 123 (2 ) 1,485 (15 ) Municipal securities 2,118 (6 ) 432 (4 ) 2,550 (10 ) Corporate debt securities 11,153 (27 ) 793 (8 ) 11,946 (35 ) Agency mortgage-backed securities 8,450 (62 ) 728 (14 ) 9,178 (76 ) Asset-backed securities 2,572 (4 ) 0 0 2,572 (4 ) Marketable equity securities 38 (2 ) 0 0 38 (2 ) Total $ 55,070 $ (238 ) $ 7,485 $ (76 ) $ 62,555 $ (314 ) |
Schedule of derivative instruments | The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2016 Balance Sheet Location Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Derivatives Not Designated as Hedging Instruments Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 539 $ 57 $ 596 Total $ 539 $ 57 $ 596 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 4 $ 9 $ 13 Total $ 4 $ 9 $ 13 As of September 30, 2017 Balance Sheet Location Fair Value of Fair Value of Total Fair (unaudited) Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 53 $ 113 $ 166 Total $ 53 $ 113 $ 166 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 459 $ 123 $ 582 Total $ 459 $ 123 $ 582 |
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, unaudited): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship 2016 2017 2016 2017 Foreign exchange contracts $ 52 $ (324 ) $ 240 $ (1,011 ) Gains (Losses) Reclassified from AOCI into Income (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship Location 2016 2017 2016 2017 Foreign exchange contracts Revenues $ 105 $ (191 ) $ 352 $ 29 Interest rate contracts Other income (expense), net 1 1 4 4 Total $ 106 $ (190 ) $ 356 $ 33 Gains (Losses) Recognized in Income on Derivatives (1) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship Location 2016 2017 2016 2017 Foreign exchange contracts Other income (expense), net $ (102 ) $ 26 $ (361 ) $ 72 (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, unaudited): Gains (Losses) Recognized in Income on Derivatives (2) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Fair Value Hedging Relationship Location 2016 2017 2016 2017 Foreign Exchange Hedges: Foreign exchange contracts Other income (expense), net $ 1 $ (89 ) $ 26 $ (216 ) Hedged item Other income (expense), net 1 94 (24 ) 230 Total $ 2 $ 5 $ 2 $ 14 (2) Amounts excluded from effectiveness testing and the ineffective portion of the fair value hedging relationships were not material in all periods presented. The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions, unaudited): Gains (Losses) Recognized in Income on Derivatives Three Months Ended Nine Months Ended September 30, September 30, Derivatives Not Designated As Hedging Instruments Location 2016 2017 2016 2017 Foreign exchange contracts Other income (expense), net $ (67 ) $ (39 ) $ (147 ) $ (263 ) |
Offsetting assets | As of December 31, 2016 and September 30, 2017 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets As of December 31, 2016 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 $ 596 $ 0 $ 596 $ (11 ) (1) $ (337 ) $ (73 ) $ 175 As of September 30, 2017 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 (unaudited) Derivatives $ 183 $ (17 ) $ 166 $ (122 ) (1) $ (37 ) $ 0 $ 7 (1) The balances as of December 31, 2016 and September 30, 2017 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. |
Offsetting liabilities | Offsetting of Liabilities As of December 31, 2016 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 $ 13 $ 0 $ 13 $ (11 ) (2) $ 0 $ 0 $ 2 As of September 30, 2017 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 (unaudited) Derivatives $ 599 $ (17 ) $ 582 $ (122 ) (2) $ 0 $ 0 $ 460 (2) The balances as of December 31, 2016 and September 30, 2017 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) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Investment in other assets | The following table presents a reconciliation for our non-marketable debt securities measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) (in millions, unaudited): Nine Months Ended September 30, 2016 2017 Beginning balance $ 1,024 $ 1,165 Total net gains (losses) Included in earnings 0 (5 ) Included in other comprehensive income 100 699 Purchases 78 85 Sales (7 ) (1 ) Settlements (16 ) (54 ) Ending balance $ 1,179 $ 1,889 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The total outstanding long-term debt is summarized below (in millions): As of As of (unaudited) Long-term debt 3.625% Notes due on May 19, 2021 $ 1,000 $ 1,000 3.375% Notes due on February 25, 2024 1,000 1,000 1.998% Notes due on August 15, 2026 2,000 2,000 Unamortized discount for the Notes above (65 ) (59 ) Subtotal (1) $ 3,935 $ 3,941 Capital lease obligation 0 23 Total long-term debt $ 3,935 $ 3,964 (1) Includes the outstanding (and unexchanged) Google Notes issued in 2011 and 2014 and the Alphabet notes exchanged in 2016. |
Supplemental Financial Statem28
Supplemental Financial Statement Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Components Disclosure [Abstract] | |
Property and Equipment, Net | Property and equipment, net, consisted of the following (in millions): As of As of (unaudited) Land and buildings $ 19,804 $ 22,367 Information technology assets 16,084 19,454 Construction in progress 8,166 10,280 Leasehold improvements 3,415 4,208 Furniture and fixtures 58 49 Property and equipment, gross 47,527 56,358 Less: accumulated depreciation and amortization (13,293 ) (16,238 ) Property and equipment, net $ 34,234 $ 40,120 |
Schedule of Notes Receivable | The outstanding balances are shown in the table below (in millions): As of As of (unaudited) Principal of the Note Receivable $ 1,448 $ 0 Less: unamortized discount for the Note Receivable (51 ) 0 Total $ 1,397 $ 0 |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in millions): As of As of (unaudited) European Commission fine (1) $ 0 $ 2,844 Accrued customer liabilities 1,256 1,262 Other accrued expenses and current liabilities 4,888 5,201 Accrued expenses and other current liabilities $ 6,144 $ 9,307 (1) Includes the effects of foreign exchange. |
Components of Accumulated Other Comprehensive Income | The components of AOCI, net of tax, were as follows (in millions, unaudited): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2015 $ (2,047 ) $ (86 ) $ 259 $ (1,874 ) Other comprehensive income (loss) before reclassifications 166 627 148 941 Amounts reclassified from AOCI 0 137 (236 ) (99 ) Other comprehensive income (loss) 166 764 (88 ) 842 Balance as of September 30, 2016 $ (1,881 ) $ 678 $ 171 $ (1,032 ) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2016 $ (2,646 ) $ (179 ) $ 423 $ (2,402 ) Other comprehensive income (loss) before reclassifications 1,457 803 (668 ) 1,592 Amounts reclassified from AOCI 0 98 (34 ) 64 Other comprehensive income (loss) 1,457 901 (702 ) 1,656 Balance as of September 30, 2017 $ (1,189 ) $ 722 $ (279 ) $ (746 ) |
Schedule of Effects on Net Income of Amounts Reclassified from AOCI | The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income Three Months Ended Nine Months Ended September 30, September 30, AOCI Components Location 2016 2017 2016 2017 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ 46 $ (47 ) $ (137 ) $ (98 ) Provision for income taxes 0 0 0 0 Net of tax $ 46 $ (47 ) $ (137 ) $ (98 ) Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue $ 105 $ (191 ) $ 352 $ 29 Interest rate contracts Other income (expense), net 1 1 4 4 Benefit (provision) for income taxes (39 ) 65 (120 ) 1 Net of tax $ 67 $ (125 ) $ 236 $ 34 Total amount reclassified, net of tax $ 113 $ (172 ) $ 99 $ (64 ) |
Schedule of Other Income (Expense), Net | The components of other income (expense), net, were as follows (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Interest income $ 318 $ 306 $ 895 $ 912 Interest expense (29 ) (27 ) (91 ) (73 ) Foreign currency exchange losses, net (123 ) (53 ) (437 ) (101 ) Gain (loss) on marketable securities, net 50 (44 ) (126 ) (81 ) Gain (loss) on non-marketable investments, net 40 (32 ) (78 ) (79 ) Other 22 47 53 115 Other income (expense), net $ 278 $ 197 $ 216 $ 693 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill allocated to our disclosed segments for the nine months ended September 30, 2017 were as follows (in millions, unaudited): Google Other Bets Total Consolidated Balance as of December 31, 2016 $ 16,027 $ 441 $ 16,468 Acquisitions 196 9 205 Foreign currency translation and other adjustments 57 1 58 Balance as of September 30, 2017 $ 16,280 $ 451 $ 16,731 |
Schedule of finite-lived intangible assets | Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 5,542 $ 2,710 $ 2,832 Customer relationships 352 197 155 Trade names and other 463 143 320 Total $ 6,357 $ 3,050 $ 3,307 As of September 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (unaudited) Patents and developed technology $ 5,312 $ 2,931 $ 2,381 Customer relationships 358 246 112 Trade names and other 548 158 390 Total $ 6,218 $ 3,335 $ 2,883 |
Schedule of future amortization expense | As of September 30, 2017 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter are as follows (in millions, unaudited): Remainder of 2017 $ 193 2018 726 2019 615 2020 493 2021 459 Thereafter 397 $ 2,883 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands, and per share amounts, unaudited): Three Months Ended September 30, 2016 2017 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 2,171 $ 357 $ 2,533 $ 2,891 $ 457 $ 3,384 Denominator Number of shares used in per share computation 294,945 48,513 344,103 297,804 47,078 348,603 Basic net income per share $ 7.36 $ 7.36 $ 7.36 $ 9.71 $ 9.71 $ 9.71 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 2,171 $ 357 $ 2,533 $ 2,891 $ 457 $ 3,384 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 357 0 0 457 0 0 Reallocation of undistributed earnings (25 ) (5 ) 25 (38 ) (7 ) 38 Allocation of undistributed earnings $ 2,503 $ 352 $ 2,558 $ 3,310 $ 450 $ 3,422 Denominator Number of shares used in basic computation 294,945 48,513 344,103 297,804 47,078 348,603 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 48,513 0 0 47,078 0 0 Restricted stock units and other contingently issuable shares 1,923 0 8,956 1,070 0 9,161 Number of shares used in per share computation 345,381 48,513 353,059 345,952 47,078 357,764 Diluted net income per share $ 7.25 $ 7.25 $ 7.25 $ 9.57 $ 9.57 $ 9.57 Nine Months Ended September 30, 2016 2017 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 6,047 $ 1,013 $ 7,085 $ 6,734 $ 1,069 $ 7,879 Denominator Number of shares used in per share computation 293,723 49,214 344,162 297,291 47,189 347,853 Basic net income per share $ 20.59 $ 20.59 $ 20.59 $ 22.65 $ 22.65 $ 22.65 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 6,047 $ 1,013 $ 7,085 $ 6,734 $ 1,069 $ 7,879 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,013 0 0 1,069 0 0 Reallocation of undistributed earnings (68 ) (16 ) 68 (92 ) (17 ) 92 Allocation of undistributed earnings $ 6,992 $ 997 $ 7,153 $ 7,711 $ 1,052 $ 7,971 Denominator Number of shares used in basic computation 293,723 49,214 344,162 297,291 47,189 347,853 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 49,214 0 0 47,189 0 0 Restricted stock units and other contingently issuable shares 2,204 0 8,896 1,255 0 9,497 Number of shares used in per share computation 345,141 49,214 353,058 345,735 47,189 357,350 Diluted net income per share $ 20.26 $ 20.26 $ 20.26 $ 22.30 $ 22.30 $ 22.30 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of restricted stock activity | The following table summarizes the activities for our unvested restricted stock units (RSUs) for the nine months ended September 30, 2017 (unaudited): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2016 25,348,955 $ 624.92 Granted 7,246,476 $ 826.60 Vested (9,112,936 ) $ 610.82 Forfeited/canceled (1,029,398 ) $ 651.68 Unvested as of September 30, 2017 22,453,097 $ 694.86 |
Information about Segments an32
Information about Segments and Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment information by segment | Information about segments during the periods presented were as follows (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Revenues: Google $ 22,254 $ 27,470 $ 63,661 $ 77,738 Other Bets 197 302 547 794 Total revenues $ 22,451 $ 27,772 $ 64,208 $ 78,532 Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Operating income (loss): Google $ 6,774 $ 8,744 $ 20,009 $ 24,145 Other Bets (861 ) (812 ) (2,490 ) (2,439 ) Reconciling items (1) (146 ) (150 ) (442 ) (3,224 ) Total income from operations $ 5,767 $ 7,782 $ 17,077 $ 18,482 (1) Reconciling items are primarily comprised of the European Commission fine for the nine months ended September 30, 2017, as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments for all periods presented. Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Capital expenditures: Google $ 2,434 $ 3,559 $ 6,529 $ 8,800 Other Bets 324 77 881 398 Reconciling items (2) (204 ) (98 ) (276 ) (321 ) Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 2,554 $ 3,538 $ 7,134 $ 8,877 (2) Reconciling items are related to timing differences of payments as segment capital expenditures are on accrual basis while total capital expenditures shown on the Consolidated Statements of Cash Flow are on cash basis and other miscellaneous differences. Stock-based compensation (SBC) and depreciation, amortization, and impairment are included in segment operating income (loss) as shown below (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2016 2017 2016 2017 Stock-based compensation: Google $ 1,629 $ 1,654 $ 4,273 $ 5,362 Other Bets 199 130 486 355 Reconciling items (3) 32 36 98 115 Total stock-based compensation (4) $ 1,860 $ 1,820 $ 4,857 $ 5,832 Depreciation, amortization, and impairment: Google $ 1,488 $ 1,667 $ 4,214 $ 4,606 Other Bets 104 94 239 283 Reconciling items (5) 4 0 4 0 Total depreciation, amortization, and impairment as presented on the Consolidated Statements of Cash Flows $ 1,596 $ 1,761 $ 4,457 $ 4,889 (3) Reconciling items represent corporate administrative costs that are not allocated to individual segments. (4) For purposes of segment reporting, SBC represents awards that we expect to settle in Alphabet stock. (5) Reconciling items are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments. |
Schedule of long-lived assets by geographic area | The following table presents our long-lived assets by geographic area (in millions): As of As of (unaudited) Long-lived assets: United States $ 47,383 $ 53,051 International 14,706 17,140 Total long-lived assets $ 62,089 $ 70,191 |
Nature of Operations and Summ33
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) - Scenario, Forecast - Accounting Standards Update 2016-16 - Retained Earnings $ in Millions | Dec. 31, 2017USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative adjustment to retained earnings | $ 600 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative adjustment to retained earnings | $ 800 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenues | $ 27,772 | $ 22,451 | $ 78,532 | $ 64,208 | |
Deferred revenue recognized during period | 779 | ||||
Early adoption of new accounting pronouncement | Revenue from Contracts with Customers (Topic 606) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
One-time reduction to opening retained earnings, net of tax | $ 15 | ||||
Revenues | $ 10 | $ 32 |
Revenues (Revenue by Segment) (
Revenues (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 27,772 | $ 22,451 | $ 78,532 | $ 64,208 |
Revenues | ||||
Segment Reporting Information [Line Items] | ||||
Hedging gains (losses) included in consolidated revenue | (191) | 105 | 29 | 352 |
Segment Reporting Information [Line Items] | ||||
Google advertising revenues | 24,065 | 19,821 | 68,148 | 56,984 |
Google other revenues | 3,405 | 2,433 | 9,590 | 6,677 |
Revenues | 27,470 | 22,254 | 77,738 | 63,661 |
Google | Google properties | ||||
Segment Reporting Information [Line Items] | ||||
Google advertising revenues | 19,723 | 16,089 | 55,551 | 45,817 |
Google | Google Network Members' properties | ||||
Segment Reporting Information [Line Items] | ||||
Google advertising revenues | 4,342 | 3,732 | 12,597 | 11,167 |
Other Bets | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 302 | $ 197 | $ 794 | $ 547 |
Revenues (Revenue by Geographic
Revenues (Revenue by Geographic Location) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 27,772 | $ 22,451 | $ 78,532 | $ 64,208 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 12,930 | 10,649 | 37,021 | 30,065 |
EMEA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 9,097 | 7,392 | 25,733 | 22,007 |
APAC | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 4,199 | 3,248 | 11,548 | 8,951 |
Other Americas | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 1,546 | $ 1,162 | $ 4,230 | $ 3,185 |
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 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | $ 100,213 | $ 86,603 | ||
Gross Unrealized Gains | 244 | 361 | ||
Gross Unrealized Losses | (314) | (631) | ||
Total cash, cash equivalents, and marketable securities | 100,143 | 86,333 | ||
Cash and Cash Equivalents | 10,581 | 12,918 | $ 9,406 | $ 16,549 |
Marketable Securities | 89,562 | 73,415 | ||
Cash | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 6,460 | 7,078 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total cash, cash equivalents, and marketable securities | 6,460 | 7,078 | ||
Cash and Cash Equivalents | 6,460 | 7,078 | ||
Marketable Securities | 0 | 0 | ||
Level 1 | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 41,944 | 43,397 | ||
Gross Unrealized Gains | 132 | 179 | ||
Gross Unrealized Losses | (165) | (215) | ||
Total cash, cash equivalents, and marketable securities | 41,911 | 43,361 | ||
Cash and Cash Equivalents | 2,369 | 5,396 | ||
Marketable Securities | 39,542 | 37,965 | ||
Level 1 | Money market and other funds | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 1,450 | 4,783 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total cash, cash equivalents, and marketable securities | 1,450 | 4,783 | ||
Cash and Cash Equivalents | 1,450 | 4,783 | ||
Marketable Securities | 0 | 0 | ||
Level 1 | U.S. government notes | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 40,268 | 38,454 | ||
Gross Unrealized Gains | 12 | 46 | ||
Gross Unrealized Losses | (163) | (215) | ||
Total cash, cash equivalents, and marketable securities | 40,117 | 38,285 | ||
Cash and Cash Equivalents | 919 | 613 | ||
Marketable Securities | 39,198 | 37,672 | ||
Level 1 | Marketable equity securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 226 | 160 | ||
Gross Unrealized Gains | 120 | 133 | ||
Gross Unrealized Losses | (2) | 0 | ||
Total cash, cash equivalents, and marketable securities | 344 | 293 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | 344 | 293 | ||
Level 2 | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 51,809 | 36,128 | ||
Gross Unrealized Gains | 112 | 182 | ||
Gross Unrealized Losses | (149) | (416) | ||
Total cash, cash equivalents, and marketable securities | 51,772 | 35,894 | ||
Cash and Cash Equivalents | 1,752 | 444 | ||
Marketable Securities | 50,020 | 35,450 | ||
Level 2 | Time deposits | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 145 | 142 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total cash, cash equivalents, and marketable securities | 145 | 142 | ||
Cash and Cash Equivalents | 143 | 140 | ||
Marketable Securities | 2 | 2 | ||
Level 2 | Mutual funds | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 233 | 204 | ||
Gross Unrealized Gains | 14 | 7 | ||
Gross Unrealized Losses | 0 | 0 | ||
Total cash, cash equivalents, and marketable securities | 247 | 211 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | 247 | 211 | ||
Level 2 | U.S. government agencies | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 2,841 | 1,826 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | (9) | (11) | ||
Total cash, cash equivalents, and marketable securities | 2,832 | 1,815 | ||
Cash and Cash Equivalents | 17 | 300 | ||
Marketable Securities | 2,815 | 1,515 | ||
Level 2 | Foreign government bonds | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 2,464 | 2,345 | ||
Gross Unrealized Gains | 8 | 18 | ||
Gross Unrealized Losses | (15) | (7) | ||
Total cash, cash equivalents, and marketable securities | 2,457 | 2,356 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | 2,457 | 2,356 | ||
Level 2 | Municipal securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 6,774 | 4,757 | ||
Gross Unrealized Gains | 17 | 15 | ||
Gross Unrealized Losses | (10) | (65) | ||
Total cash, cash equivalents, and marketable securities | 6,781 | 4,707 | ||
Cash and Cash Equivalents | 13 | 2 | ||
Marketable Securities | 6,768 | 4,705 | ||
Level 2 | Corporate debt securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 23,107 | 12,993 | ||
Gross Unrealized Gains | 49 | 114 | ||
Gross Unrealized Losses | (35) | (116) | ||
Total cash, cash equivalents, and marketable securities | 23,121 | 12,991 | ||
Cash and Cash Equivalents | 1,579 | 2 | ||
Marketable Securities | 21,542 | 12,989 | ||
Level 2 | Agency mortgage-backed securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 10,984 | 12,006 | ||
Gross Unrealized Gains | 17 | 26 | ||
Gross Unrealized Losses | (76) | (216) | ||
Total cash, cash equivalents, and marketable securities | 10,925 | 11,816 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | 10,925 | 11,816 | ||
Level 2 | Asset-backed securities | ||||
Cash, cash equivalents and marketable securities [Line Items] | ||||
Adjusted Cost | 5,261 | 1,855 | ||
Gross Unrealized Gains | 7 | 2 | ||
Gross Unrealized Losses | (4) | (1) | ||
Total cash, cash equivalents, and marketable securities | 5,264 | 1,856 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Marketable Securities | $ 5,264 | $ 1,856 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financial Instruments and Fair Value [Line Items] | |||||
Gross realized gains on the sale of our marketable securities | $ 21,000,000 | $ 62,000,000 | $ 193,000,000 | $ 221,000,000 | |
Gross realized losses on the sale of our marketable securities | 65,000,000 | 12,000,000 | 274,000,000 | 347,000,000 | |
Other-than-temporary impairment losses recognized | 0 | $ 0 | 0 | $ 87,000,000 | |
Cash collateral received from derivative financial instruments | 47,000,000 | 47,000,000 | $ 362,000,000 | ||
Effective portion of our cash flow hedges before tax effect | 440,000,000 | 440,000,000 | |||
Foreign currency gain (loss) to be reclassified during next 12 months | 473,000,000 | 473,000,000 | |||
Cash Flow Hedging Relationship | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | 11,700,000,000 | $ 11,700,000,000 | 10,700,000,000 | ||
Foreign exchange option contracts, maximum maturities | 24 months | ||||
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | 2,500,000,000 | $ 2,500,000,000 | 2,400,000,000 | ||
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | $ 17,200,000,000 | $ 17,200,000,000 | $ 7,900,000,000 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) $ in Millions | Sep. 30, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Due in 1 year | $ 22,234 |
Due in 1 year through 5 years | 52,502 |
Due in 5 years through 10 years | 2,172 |
Due after 10 years | 12,063 |
Total | $ 88,971 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 55,070 | $ 48,601 |
Less than 12 Months, Unrealized Loss | (238) | (614) |
12 Months or Greater, Fair Value | 7,485 | 471 |
12 Months or Greater, Unrealized Loss | (76) | (17) |
Total Fair Value | 62,555 | 49,072 |
Total Unrealized Loss | (314) | (631) |
U.S. government notes | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 26,626 | 26,411 |
Less than 12 Months, Unrealized Loss | (115) | (215) |
12 Months or Greater, Fair Value | 5,409 | 0 |
12 Months or Greater, Unrealized Loss | (48) | 0 |
Total Fair Value | 32,035 | 26,411 |
Total Unrealized Loss | (163) | (215) |
U.S. government agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 2,751 | 1,014 |
Less than 12 Months, Unrealized Loss | (9) | (11) |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total Fair Value | 2,751 | 1,014 |
Total Unrealized Loss | (9) | (11) |
Foreign government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,362 | 956 |
Less than 12 Months, Unrealized Loss | (13) | (7) |
12 Months or Greater, Fair Value | 123 | 0 |
12 Months or Greater, Unrealized Loss | (2) | 0 |
Total Fair Value | 1,485 | 956 |
Total Unrealized Loss | (15) | (7) |
Municipal securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 2,118 | 3,461 |
Less than 12 Months, Unrealized Loss | (6) | (63) |
12 Months or Greater, Fair Value | 432 | 46 |
12 Months or Greater, Unrealized Loss | (4) | (2) |
Total Fair Value | 2,550 | 3,507 |
Total Unrealized Loss | (10) | (65) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 11,153 | 6,184 |
Less than 12 Months, Unrealized Loss | (27) | (111) |
12 Months or Greater, Fair Value | 793 | 166 |
12 Months or Greater, Unrealized Loss | (8) | (5) |
Total Fair Value | 11,946 | 6,350 |
Total Unrealized Loss | (35) | (116) |
Agency mortgage-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 8,450 | 10,184 |
Less than 12 Months, Unrealized Loss | (62) | (206) |
12 Months or Greater, Fair Value | 728 | 259 |
12 Months or Greater, Unrealized Loss | (14) | (10) |
Total Fair Value | 9,178 | 10,443 |
Total Unrealized Loss | (76) | (216) |
Asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 2,572 | 391 |
Less than 12 Months, Unrealized Loss | (4) | (1) |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total Fair Value | 2,572 | 391 |
Total Unrealized Loss | (4) | $ (1) |
Marketable equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 38 | |
Less than 12 Months, Unrealized Loss | (2) | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Loss | 0 | |
Total Fair Value | 38 | |
Total Unrealized Loss | $ (2) |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Assets: | ||
Derivative Assets | $ 183 | $ 596 |
Derivative Liabilities: | ||
Derivative Liabilities | 599 | 13 |
Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 166 | 596 |
Derivative Liabilities: | ||
Derivative Liabilities | 582 | 13 |
Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 166 | 596 |
Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 582 | 13 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 53 | 539 |
Derivative Liabilities: | ||
Derivative Liabilities | 459 | 4 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 53 | 539 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 459 | 4 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 113 | 57 |
Derivative Liabilities: | ||
Derivative Liabilities | 123 | 9 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 113 | 57 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | $ 123 | $ 9 |
Financial Instruments (Effect o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Foreign exchange contracts | Other income (expense), net | Fair Value of Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives | $ (39) | $ (67) | $ (263) | $ (147) |
Derivatives in Cash Flow Hedging Relationship | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Reclassified from AOCI into Income (Effective Portion) | (190) | 106 | 33 | 356 |
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) | (324) | 52 | (1,011) | 240 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Reclassified from AOCI into Income (Effective Portion) | (191) | 105 | 29 | 352 |
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) | 26 | (102) | 72 | (361) |
Derivatives in Cash Flow Hedging Relationship | Interest rate contracts | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Reclassified from AOCI into Income (Effective Portion) | 1 | 1 | 4 | 4 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total | 5 | 2 | 14 | 2 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives, Foreign exchange contracts | (89) | 1 | (216) | 26 |
Gains (Losses) Recognized in Income on Derivatives, Hedged item | $ 94 | $ 1 | $ 230 | $ (24) |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Offsetting of Assets | ||
Gross Amounts of Recognized Assets | $ 183 | $ 596 |
Gross Amounts Offset in the Consolidated Balance Sheets | (17) | 0 |
Net Presented in the Consolidated Balance Sheets | 166 | 596 |
Financial Instruments | (122) | (11) |
Cash Collateral Received | (37) | (337) |
Non-Cash Collateral Received | 0 | (73) |
Net Assets Exposed | 7 | 175 |
Offsetting of Liabilities | ||
Gross Amounts of Recognized Liabilities | 599 | 13 |
Gross Amounts Offset in the Consolidated Balance Sheets | (17) | 0 |
Net Presented in the Consolidated Balance Sheets | 582 | 13 |
Financial Instruments | (122) | (11) |
Cash Collateral Pledged | 0 | 0 |
Non-Cash Collateral Pledged | 0 | 0 |
Net Liabilities | $ 460 | $ 2 |
Non-Marketable Investments (Nar
Non-Marketable Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |||||
Equity method investments | $ 1,700 | $ 1,700 | $ 1,700 | ||
Loss on equity method investments | 31 | $ 61 | 93 | $ 209 | |
Cost method investments | 3,600 | 3,600 | 3,000 | ||
Fair value of cost method investments | 8,900 | 8,900 | 8,100 | ||
Variable Interest Entity [Line Items] | |||||
Cost of non-marketable debt securities | 1,100 | 1,100 | 1,100 | ||
VIE, Not Primary Beneficiary, Aggregated Disclosure | |||||
Variable Interest Entity [Line Items] | |||||
Net assets of VIE | 1,100 | 1,100 | 1,200 | ||
Maximum loss exposure | $ 1,100 | $ 1,100 | $ 1,200 |
Non-Marketable Investments (Rol
Non-Marketable Investments (Rollforward of Other Marketable Investments) (Details) - Non-Marketable Debt Securities - Level 3 - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Other Investments Not Readily Marketable | ||
Beginning balance | $ 1,165 | $ 1,024 |
Total net gains (losses) | ||
Included in earnings | (5) | 0 |
Included in other comprehensive income | 699 | 100 |
Purchases | 85 | 78 |
Sales | (1) | (7) |
Settlements | (54) | (16) |
Ending balance | $ 1,889 | $ 1,179 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | |||||
Apr. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 31, 2016USD ($) | Feb. 28, 2014USD ($) | May 31, 2011USD ($)Tranche | |
Debt Instrument [Line Items] | ||||||
Estimated fair value of long-term debt | $ 4,000,000,000 | $ 3,900,000,000 | ||||
3.625% Notes due on May 19, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.734% | |||||
3.375% Notes due on February 25, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.377% | |||||
1.998% Notes due on August 15, 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.231% | |||||
Unsecured debt | Unsecured Senior Notes 3.375% due on February 2024 and Unsecured Senior Notes 3.625% Due May 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 1,700,000,000 | |||||
Gain (loss) on modification of debt | 0 | |||||
Unsecured debt | 2016 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 2,000,000,000 | |||||
Google | Unsecured Senior Notes 3.375% due on February 2024 and Unsecured Senior Notes 3.625% Due May 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt subject to exchange | $ 1,700,000,000 | |||||
Google | Unsecured debt | 2011 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 3,000,000,000 | |||||
Number of tranches (in tranche) | Tranche | 3 | |||||
Google | Unsecured debt | 2014 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 1,000,000,000 | |||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing on short term lines of credit | $ 5,000,000,000 | |||||
Outstanding balance of commercial paper | 0 | 0 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing on short term lines of credit | 4,000,000,000 | |||||
Line of credit drawn | $ 0 | $ 0 |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Long-Term Debt | ||
Unamortized discount for the Notes above | $ (59) | $ (65) |
Subtotal | 3,941 | 3,935 |
Capital lease obligation | 23 | 0 |
Total long-term debt | 3,964 | 3,935 |
3.625% Notes due on May 19, 2021 | ||
Long-Term Debt | ||
Long-term debt | $ 1,000 | 1,000 |
Long-term debt, interest rate | 3.625% | |
3.375% Notes due on February 25, 2024 | ||
Long-Term Debt | ||
Long-term debt | $ 1,000 | 1,000 |
Long-term debt, interest rate | 3.375% | |
1.998% Notes due on August 15, 2026 | ||
Long-Term Debt | ||
Long-term debt | $ 2,000 | $ 2,000 |
Long-term debt, interest rate | 1.998% |
Supplemental Financial Statem48
Supplemental Financial Statement Information (Property and Equipment) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 56,358 | $ 47,527 |
Less: accumulated depreciation and amortization | (16,238) | (13,293) |
Property and equipment, net | 40,120 | 34,234 |
Cost basis of property and equipment under capital lease | 364 | |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 22,367 | 19,804 |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 19,454 | 16,084 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 10,280 | 8,166 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 4,208 | 3,415 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 49 | $ 58 |
Supplemental Financial Statem49
Supplemental Financial Statement Information (Notes Receivable) (Details) - Disposal by Sale - Motorola Mobile - USD ($) $ in Millions | Oct. 29, 2014 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Promissory note received in connection with divestiture, term | 3 years | ||
Effective yield on note | 4.50% | ||
Principal of the Note Receivable | $ 0 | $ 1,448 | |
Less: unamortized discount for the Note Receivable | 0 | (51) | |
Total | $ 0 | $ 1,397 |
Supplemental Financial Statem50
Supplemental Financial Statement Information (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Components Disclosure [Abstract] | ||
European Commission fine | $ 2,844 | $ 0 |
Accrued customer liabilities | 1,262 | 1,256 |
Other accrued expenses and current liabilities | 5,201 | 4,888 |
Accrued expenses and other current liabilities | $ 9,307 | $ 6,144 |
Supplemental Financial Statem51
Supplemental Financial Statement Information (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Components of AOCI, net of tax | ||
Beginning Balance | $ 139,036 | |
Other comprehensive income (loss) before reclassifications | 1,592 | $ 941 |
Amounts reclassified from AOCI | 64 | (99) |
Other comprehensive income (loss) | 1,656 | 842 |
Ending Balance | 157,100 | |
Foreign Currency Translation Adjustments | ||
Components of AOCI, net of tax | ||
Beginning Balance | (2,646) | (2,047) |
Other comprehensive income (loss) before reclassifications | 1,457 | 166 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | 1,457 | 166 |
Ending Balance | (1,189) | (1,881) |
Unrealized Gains (Losses) on Available-for-Sale Investments | ||
Components of AOCI, net of tax | ||
Beginning Balance | (179) | (86) |
Other comprehensive income (loss) before reclassifications | 803 | 627 |
Amounts reclassified from AOCI | 98 | 137 |
Other comprehensive income (loss) | 901 | 764 |
Ending Balance | 722 | 678 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Components of AOCI, net of tax | ||
Beginning Balance | 423 | 259 |
Other comprehensive income (loss) before reclassifications | (668) | 148 |
Amounts reclassified from AOCI | (34) | (236) |
Other comprehensive income (loss) | (702) | (88) |
Ending Balance | (279) | 171 |
Total | ||
Components of AOCI, net of tax | ||
Beginning Balance | (2,402) | (1,874) |
Ending Balance | $ (746) | $ (1,032) |
Supplemental Financial Statem52
Supplemental Financial Statement Information (Effects on Net Income of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | $ 27,772 | $ 22,451 | $ 78,532 | $ 64,208 |
Other income (expense), net | 197 | 278 | 693 | 216 |
Benefit (provision) for income taxes | (1,247) | (984) | (3,493) | (3,148) |
Net income | 6,732 | 5,061 | 15,682 | 14,145 |
Total amount reclassified, net of tax | (172) | 113 | (64) | 99 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on available-for-sale investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | (47) | 46 | (98) | (137) |
Benefit (provision) for income taxes | 0 | 0 | 0 | 0 |
Net income | (47) | 46 | (98) | (137) |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit (provision) for income taxes | 65 | (39) | 1 | (120) |
Net income | (125) | 67 | 34 | 236 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on cash flow hedges | Foreign exchange contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | (191) | 105 | 29 | 352 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on cash flow hedges | Interest rate contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | $ 1 | $ 1 | $ 4 | $ 4 |
Supplemental Financial Statem53
Supplemental Financial Statement Information (Schedule of Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Balance Sheet Components Disclosure [Abstract] | ||||
Interest income | $ 306 | $ 318 | $ 912 | $ 895 |
Interest expense | (27) | (29) | (73) | (91) |
Foreign currency exchange losses, net | (53) | (123) | (101) | (437) |
Gain (loss) on marketable securities, net | (44) | 50 | (81) | (126) |
Gain (loss) on non-marketable investments, net | (32) | 40 | (79) | (78) |
Other | 47 | 22 | 115 | 53 |
Other income (expense), net | 197 | 278 | 693 | 216 |
Interest costs capitalized | $ 13 | $ 0 | $ 32 | $ 0 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 16,731 | $ 16,468 |
Other acquisitions | ||
Business Acquisition [Line Items] | ||
Total consideration | 312 | |
Cash acquired | 12 | |
Acquired intangible assets | 111 | |
Goodwill | 205 | |
Net liabilities assumed | 16 | |
Amount of goodwill expected to be deductible for tax purposes | $ 24 | |
Other acquisitions | Patents and developed technology | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 3 years 11 months | |
Other acquisitions | Customer relationships | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 3 years 1 month | |
Other acquisitions | Trade names and other | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 8 years 10 months |
Calico (Details)
Calico (Details) $ in Millions | 49 Months Ended |
Sep. 30, 2017USD ($) | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Payments to acquire interest in joint venture | $ 240 |
Commitment to Invest | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research commitments | 490 |
Research and development arrangement | AbbVie Inc | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Accumulated payments for research and development commitment | 750 |
Research and development arrangement | Calico | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research commitments | 500 |
Accumulated payments for research and development commitment | $ 250 |
Verily (Details)
Verily (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Variable Interest Entity [Line Items] | |||||
Proceeds from sale of shares | $ 800 | $ 0 | |||
Non-controlling interest | |||||
Variable Interest Entity [Line Items] | |||||
Increase in non-controlling interest from sale of shares | 78 | ||||
Additional paid-in capital | |||||
Variable Interest Entity [Line Items] | |||||
Increase in non-controlling interest from sale of shares | 722 | ||||
Verily | Variable interest entity | |||||
Variable Interest Entity [Line Items] | |||||
Non-controlling interest sold in Verily | $ 800 | $ 800 | |||
Proceeds from sale of shares | $ 320 | $ 480 |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2016 | $ 16,468 |
Acquisitions | 205 |
Foreign currency translation and other adjustments | 58 |
Balance as of September 30, 2017 | 16,731 |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2016 | 16,027 |
Acquisitions | 196 |
Foreign currency translation and other adjustments | 57 |
Balance as of September 30, 2017 | 16,280 |
Other Bets | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2016 | 441 |
Acquisitions | 9 |
Foreign currency translation and other adjustments | 1 |
Balance as of September 30, 2017 | $ 451 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 6,218 | $ 6,218 | $ 6,357 | ||
Accumulated Amortization | 3,335 | 3,335 | 3,050 | ||
Net Carrying Amount | 2,883 | 2,883 | 3,307 | ||
Patents and developed technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 5,312 | 5,312 | 5,542 | ||
Accumulated Amortization | 2,931 | 2,931 | 2,710 | ||
Net Carrying Amount | 2,381 | 2,381 | 2,832 | ||
Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 358 | 358 | 352 | ||
Accumulated Amortization | 246 | 246 | 197 | ||
Net Carrying Amount | 112 | 112 | 155 | ||
Trade names and other | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 548 | 548 | 463 | ||
Accumulated Amortization | 158 | 158 | 143 | ||
Net Carrying Amount | 390 | 390 | $ 320 | ||
Acquisition-related intangible assets | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of acquisition-related intangible assets | $ 194 | $ 203 | $ 600 | $ 629 |
Goodwill and Other Intangible59
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) $ in Millions | Sep. 30, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2017 | $ 193 |
2,018 | 726 |
2,019 | 615 |
2,020 | 493 |
2,021 | 459 |
Thereafter | 397 |
Net Carrying Value | $ 2,883 |
Contingencies (Details)
Contingencies (Details) € in Millions, $ in Millions | Jun. 27, 2017USD ($) | Jun. 27, 2017EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Loss Contingencies [Line Items] | ||||||
European Commission fine | $ 0 | $ 0 | $ 2,736 | $ 0 | ||
European Commission Antitrust Investigation | ||||||
Loss Contingencies [Line Items] | ||||||
European Commission fine | $ 2,740 | € 2,420 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Denominator | ||||
Basic net income per share (in dollars per share) | $ 9.71 | $ 7.36 | $ 22.65 | $ 20.59 |
Weighted-average effect of dilutive securities | ||||
Diluted net income per share (in dollars per share) | $ 9.57 | $ 7.25 | $ 22.30 | $ 20.26 |
Class A Common Stock | ||||
Numerator | ||||
Allocation of undistributed earnings | $ 2,891 | $ 2,171 | $ 6,734 | $ 6,047 |
Denominator | ||||
Number of shares used in basic computation (shares) | 297,804 | 294,945 | 297,291 | 293,723 |
Basic net income per share (in dollars per share) | $ 9.71 | $ 7.36 | $ 22.65 | $ 20.59 |
Numerator | ||||
Allocation of undistributed earnings for basic computation | $ 2,891 | $ 2,171 | $ 6,734 | $ 6,047 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 457 | 357 | 1,069 | 1,013 |
Reallocation of undistributed earnings | (38) | (25) | (92) | (68) |
Allocation of undistributed earnings | $ 3,310 | $ 2,503 | $ 7,711 | $ 6,992 |
Denominator | ||||
Number of shares used in basic computation (shares) | 297,804 | 294,945 | 297,291 | 293,723 |
Weighted-average effect of dilutive securities | ||||
Conversion of Class B to Class A common shares outstanding (shares) | 47,078 | 48,513 | 47,189 | 49,214 |
Number of shares used in per share computation (shares) | 345,952 | 345,381 | 345,735 | 345,141 |
Diluted net income per share (in dollars per share) | $ 9.57 | $ 7.25 | $ 22.30 | $ 20.26 |
Class A Common Stock | Restricted stock units and other contingently issuable shares | ||||
Weighted-average effect of dilutive securities | ||||
Restricted stock units and other contingently issuable shares (shares) | 1,070 | 1,923 | 1,255 | 2,204 |
Class B Common Stock | ||||
Numerator | ||||
Allocation of undistributed earnings | $ 457 | $ 357 | $ 1,069 | $ 1,013 |
Denominator | ||||
Number of shares used in basic computation (shares) | 47,078 | 48,513 | 47,189 | 49,214 |
Basic net income per share (in dollars per share) | $ 9.71 | $ 7.36 | $ 22.65 | $ 20.59 |
Numerator | ||||
Allocation of undistributed earnings for basic computation | $ 457 | $ 357 | $ 1,069 | $ 1,013 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 | 0 |
Reallocation of undistributed earnings | (7) | (5) | (17) | (16) |
Allocation of undistributed earnings | $ 450 | $ 352 | $ 1,052 | $ 997 |
Denominator | ||||
Number of shares used in basic computation (shares) | 47,078 | 48,513 | 47,189 | 49,214 |
Weighted-average effect of dilutive securities | ||||
Conversion of Class B to Class A common shares outstanding (shares) | 0 | 0 | 0 | 0 |
Number of shares used in per share computation (shares) | 47,078 | 48,513 | 47,189 | 49,214 |
Diluted net income per share (in dollars per share) | $ 9.57 | $ 7.25 | $ 22.30 | $ 20.26 |
Class B Common Stock | Restricted stock units and other contingently issuable shares | ||||
Weighted-average effect of dilutive securities | ||||
Restricted stock units and other contingently issuable shares (shares) | 0 | 0 | 0 | 0 |
Class C Capital Stock | ||||
Numerator | ||||
Allocation of undistributed earnings | $ 3,384 | $ 2,533 | $ 7,879 | $ 7,085 |
Denominator | ||||
Number of shares used in basic computation (shares) | 348,603 | 344,103 | 347,853 | 344,162 |
Basic net income per share (in dollars per share) | $ 9.71 | $ 7.36 | $ 22.65 | $ 20.59 |
Numerator | ||||
Allocation of undistributed earnings for basic computation | $ 3,384 | $ 2,533 | $ 7,879 | $ 7,085 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 | 0 |
Reallocation of undistributed earnings | 38 | 25 | 92 | 68 |
Allocation of undistributed earnings | $ 3,422 | $ 2,558 | $ 7,971 | $ 7,153 |
Denominator | ||||
Number of shares used in basic computation (shares) | 348,603 | 344,103 | 347,853 | 344,162 |
Weighted-average effect of dilutive securities | ||||
Conversion of Class B to Class A common shares outstanding (shares) | 0 | 0 | 0 | 0 |
Number of shares used in per share computation (shares) | 357,764 | 353,059 | 357,350 | 353,058 |
Diluted net income per share (in dollars per share) | $ 9.57 | $ 7.25 | $ 22.30 | $ 20.26 |
Class C Capital Stock | Restricted stock units and other contingently issuable shares | ||||
Weighted-average effect of dilutive securities | ||||
Restricted stock units and other contingently issuable shares (shares) | 9,161 | 8,956 | 9,497 | 8,896 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 31, 2016 | |
Stockholders Equity Note [Line Items] | |||||
Stock-based compensation expense | $ 1,881,000,000 | $ 1,902,000,000 | $ 6,008,000,000 | $ 4,912,000,000 | |
Awards expected to be settled with stock | 1,820,000,000 | $ 1,860,000,000 | $ 5,832,000,000 | $ 4,857,000,000 | |
October 2016 Share Repurchase Program | Class C Capital Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Authorized share repurchase amount | $ 7,019,340,976.83 | ||||
Repurchases of capital stock (in shares) | 3.1 | ||||
Repurchases of capital stock | $ 2,700,000,000 | ||||
Restricted Stock Units (RSUs) | |||||
Stockholders Equity Note [Line Items] | |||||
Unrecognized compensation cost | $ 14,000,000,000 | $ 14,000,000,000 | |||
Weighted average recognition period for unrecognized stock-based compensation expense | 2 years 6 months 1 day |
Stockholders' Equity (Unvested
Stockholders' Equity (Unvested Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Unvested restricted stock units - number of shares | |
Unvested at December 31 (in shares) | shares | 25,348,955 |
Granted (in shares) | shares | 7,246,476 |
Vested (in shares) | shares | (9,112,936) |
Forfeited/canceled (in shares) | shares | (1,029,398) |
Unvested at June 30 (in shares) | shares | 22,453,097 |
Unvested restricted stock units - weighted-average grant-date fair value | |
Unvested at December 31 (in dollars per share) | $ / shares | $ 624.92 |
Granted (in dollars per share) | $ / shares | 826.60 |
Vested (in dollars per share) | $ / shares | 610.82 |
Forfeited/canceled (in dollars per share) | $ / shares | 651.68 |
Unvested at June 30 (in dollars per share) | $ / shares | $ 694.86 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Billions | Sep. 30, 2017 | Dec. 31, 2016 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Gross unrecognized tax benefits | $ 5.1 | $ 5.4 |
Unrecognized tax benefits that would impact effective tax rate | $ 3.9 | $ 4.3 |
Information about Segments an65
Information about Segments and Geographic Areas (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 27,772 | $ 22,451 | $ 78,532 | $ 64,208 |
Segment Reporting Information [Line Items] | ||||
Revenues | 27,470 | 22,254 | 77,738 | 63,661 |
Other Bets | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 302 | $ 197 | $ 794 | $ 547 |
Information about Segments an66
Information about Segments and Geographic Areas (Operating Income (Loss) by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | $ 7,782 | $ 5,767 | $ 18,482 | $ 17,077 |
Operating Segments | Google | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | 8,744 | 6,774 | 24,145 | 20,009 |
Operating Segments | Other Bets | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | (812) | (861) | (2,439) | (2,490) |
Reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating income (loss) | $ (150) | $ (146) | $ (3,224) | $ (442) |
Information about Segments an67
Information about Segments and Geographic Areas (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 3,538 | $ 2,554 | $ 8,877 | $ 7,134 |
Operating Segments | Google | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 3,559 | 2,434 | 8,800 | 6,529 |
Operating Segments | Other Bets | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 77 | 324 | 398 | 881 |
Reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ (98) | $ (204) | $ (321) | $ (276) |
Information about Segments an68
Information about Segments and Geographic Areas (Stock-based Compensation and Depreciation, Amortization and Impairment by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | $ 1,820 | $ 1,860 | $ 5,832 | $ 4,857 |
Depreciation, amortization and impairment | 1,761 | 1,596 | 4,889 | 4,457 |
Operating Segments | Google | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | 1,654 | 1,629 | 5,362 | 4,273 |
Depreciation, amortization and impairment | 1,667 | 1,488 | 4,606 | 4,214 |
Operating Segments | Other Bets | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | 130 | 199 | 355 | 486 |
Depreciation, amortization and impairment | 94 | 104 | 283 | 239 |
Reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Stock-based compensation expense | 36 | 32 | 115 | 98 |
Depreciation, amortization and impairment | $ 0 | $ 4 | $ 0 | $ 4 |
Information about Segments an69
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 70,191 | $ 62,089 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 53,051 | 47,383 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 17,140 | $ 14,706 |