Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 29, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GOOG, GOOGL | ||
Entity Registrant Name | Alphabet Inc. | ||
Entity Central Index Key | 1,652,044 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 680 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 299,360,029 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 46,535,019 | ||
Class C Capital Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 349,291,348 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 16,701 | $ 10,715 |
Marketable securities | 92,439 | 91,156 |
Total cash, cash equivalents, and marketable securities | 109,140 | 101,871 |
Accounts receivable, net of allowance of $674 and $729 | 20,838 | 18,336 |
Income taxes receivable, net | 355 | 369 |
Inventory | 1,107 | 749 |
Other current assets | 4,236 | 2,983 |
Total current assets | 135,676 | 124,308 |
Non-marketable investments | 13,859 | 7,813 |
Deferred income taxes | 737 | 680 |
Property and equipment, net | 59,719 | 42,383 |
Intangible assets, net | 2,220 | 2,692 |
Goodwill | 17,888 | 16,747 |
Other non-current assets | 2,693 | 2,672 |
Total assets | 232,792 | 197,295 |
Current liabilities: | ||
Accounts payable | 4,378 | 3,137 |
Accrued compensation and benefits | 6,839 | 4,581 |
Accrued expenses and other current liabilities | 16,958 | 10,177 |
Accrued revenue share | 4,592 | 3,975 |
Deferred revenue | 1,784 | 1,432 |
Income taxes payable, net | 69 | 881 |
Total current liabilities | 34,620 | 24,183 |
Long-term debt | 4,012 | 3,969 |
Deferred revenue, non-current | 396 | 340 |
Income taxes payable, non-current | 11,327 | 12,812 |
Deferred income taxes | 1,264 | 430 |
Other long-term liabilities | 3,545 | 3,059 |
Total liabilities | 55,164 | 44,793 |
Commitments and Contingencies (Note 9) | ||
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); 694,783 (Class A 298,470, Class B 46,972, Class C 349,341) and 695,556 (Class A 299,242, Class B 46,636, Class C 349,678) shares issued and outstanding | 45,049 | 40,247 |
Accumulated other comprehensive loss | (2,306) | (992) |
Retained earnings | 134,885 | 113,247 |
Total stockholders’ equity | 177,628 | 152,502 |
Total liabilities and stockholders’ equity | $ 232,792 | $ 197,295 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowance | $ 729 | $ 674 |
Convertible preferred stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock 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) | 695,556,000 | 694,783,000 |
Common stock and capital stock, shares outstanding (in shares) | 695,556,000 | 694,783,000 |
Class A Common Stock | ||
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 299,242,000 | 298,470,000 |
Common stock and capital stock, shares outstanding (in shares) | 299,242,000 | 298,470,000 |
Class B Common Stock | ||
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 46,636,000 | 46,972,000 |
Common stock and capital stock, shares outstanding (in shares) | 46,636,000 | 46,972,000 |
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) | 349,678,000 | 349,341,000 |
Common stock and capital stock, shares outstanding (in shares) | 349,678,000 | 349,341,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 136,819 | $ 110,855 | $ 90,272 |
Costs and expenses: | |||
Cost of revenues | 59,549 | 45,583 | 35,138 |
Research and development | 21,419 | 16,625 | 13,948 |
Sales and marketing | 16,333 | 12,893 | 10,485 |
General and administrative | 8,126 | 6,872 | 6,985 |
European Commission fines | 5,071 | 2,736 | 0 |
Total costs and expenses | 110,498 | 84,709 | 66,556 |
Income from operations | 26,321 | 26,146 | 23,716 |
Other income (expense), net | 8,592 | 1,047 | 434 |
Income before income taxes | 34,913 | 27,193 | 24,150 |
Provision for income taxes | 4,177 | 14,531 | 4,672 |
Net income | $ 30,736 | $ 12,662 | $ 19,478 |
Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 44.22 | $ 18.27 | $ 28.32 |
Diluted net income per share of Class A and Class B common stock and Class C capital stock (in dollars per share) | $ 43.70 | $ 18 | $ 27.85 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 30,736 | $ 12,662 | $ 19,478 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (781) | 1,543 | (599) |
Available-for-sale investments: | |||
Change in net unrealized gains (losses) | 88 | 307 | (314) |
Less: reclassification adjustment for net (gains) losses included in net income | (911) | 105 | 221 |
Net change (net of tax effect of $0, $0, and $156) | (823) | 412 | (93) |
Cash flow hedges: | |||
Change in net unrealized gains (losses) | 290 | (638) | 515 |
Less: reclassification adjustment for net (gains) losses included in net income | 98 | 93 | (351) |
Net change (net of tax effect of $64, $247, and $103) | 388 | (545) | 164 |
Other comprehensive income (loss) | (1,216) | 1,410 | (528) |
Comprehensive income | $ 29,520 | $ 14,072 | $ 18,950 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Tax expense (benefit) related to available-for-sale investments | $ (156) | $ 0 | $ 0 |
Tax expense (benefit) related to cash flow hedges | $ 103 | $ 247 | $ (64) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Class A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative effect of accounting change | $ 47 | $ 180 | $ 0 | $ (133) |
Beginning Balance (in shares) at Dec. 31, 2015 | 687,348 | |||
Beginning Balance at Dec. 31, 2015 | 120,331 | $ 32,982 | (1,874) | 89,223 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common and capital stock issued (in shares) | 9,106 | |||
Common and capital stock issued | 298 | $ 298 | ||
Stock-based compensation expense | 6,700 | 6,700 | ||
Tax withholding related to vesting of restricted stock units and other | (3,597) | $ (3,597) | ||
Repurchases of capital stock (in shares) | (5,161) | |||
Repurchases of capital stock | (3,693) | $ (256) | (3,437) | |
Net income | 19,478 | 19,478 | ||
Other comprehensive income (loss) | (528) | (528) | ||
Ending Balance (in shares) at Dec. 31, 2016 | 691,293 | |||
Ending Balance at Dec. 31, 2016 | 139,036 | $ 36,307 | (2,402) | 105,131 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative effect of accounting change | (15) | (15) | ||
Common and capital stock issued (in shares) | 8,652 | |||
Common and capital stock issued | 212 | $ 212 | ||
Stock-based compensation expense | 7,694 | 7,694 | ||
Tax withholding related to vesting of restricted stock units and other | (4,373) | $ (4,373) | ||
Repurchases of capital stock (in shares) | (5,162) | |||
Repurchases of capital stock | (4,846) | $ (315) | (4,531) | |
Sale of subsidiary shares | 722 | $ 722 | ||
Net income | 12,662 | 12,662 | ||
Other comprehensive income (loss) | 1,410 | 1,410 | ||
Ending Balance (in shares) at Dec. 31, 2017 | 694,783 | |||
Ending Balance at Dec. 31, 2017 | 152,502 | $ 40,247 | (992) | 113,247 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative effect of accounting change | (697) | (98) | (599) | |
Common and capital stock issued (in shares) | 8,975 | |||
Common and capital stock issued | 148 | |||
Stock-based compensation expense | 9,353 | $ 9,353 | ||
Tax withholding related to vesting of restricted stock units and other | (4,782) | $ (4,782) | ||
Repurchases of capital stock (in shares) | (8,202) | |||
Repurchases of capital stock | (9,075) | $ (576) | (8,499) | |
Sale of subsidiary shares | 659 | $ 659 | ||
Net income | 30,736 | 30,736 | ||
Other comprehensive income (loss) | (1,216) | (1,216) | ||
Ending Balance (in shares) at Dec. 31, 2018 | 695,556 | |||
Ending Balance at Dec. 31, 2018 | $ 177,628 | $ 45,049 | $ (2,306) | $ 134,885 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 30,736 | $ 12,662 | $ 19,478 |
Adjustments: | |||
Depreciation and impairment of property and equipment | 8,164 | 6,103 | 5,267 |
Amortization and impairment of intangible assets | 871 | 812 | 877 |
Stock-based compensation expense | 9,353 | 7,679 | 6,703 |
Deferred income taxes | 778 | 258 | (38) |
(Gain) loss on debt and equity securities, net | (6,650) | 37 | 73 |
Other | (189) | 294 | 376 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (2,169) | (3,768) | (2,578) |
Income taxes, net | (2,251) | 8,211 | 3,125 |
Other assets | (1,207) | (2,164) | 312 |
Accounts payable | 1,067 | 731 | 110 |
Accrued expenses and other liabilities | 8,614 | 4,891 | 1,515 |
Accrued revenue share | 483 | 955 | 593 |
Deferred revenue | 371 | 390 | 223 |
Net cash provided by operating activities | 47,971 | 37,091 | 36,036 |
Investing activities | |||
Purchases of property and equipment | (25,139) | (13,184) | (10,212) |
Proceeds from disposals of property and equipment | 98 | 99 | 240 |
Purchases of marketable securities | (50,158) | (92,195) | (84,509) |
Maturities and sales of marketable securities | 48,507 | 73,959 | 66,895 |
Purchases of non-marketable investments | (2,073) | (1,745) | (1,109) |
Maturities and sales of non-marketable investments | 1,752 | 533 | 494 |
Cash collateral related to securities lending | 0 | 0 | (2,428) |
Investments in reverse repurchase agreements | 0 | 0 | 450 |
Acquisitions, net of cash acquired, and purchases of intangible assets | (1,491) | (287) | (986) |
Proceeds from collection of notes receivable | 0 | 1,419 | 0 |
Net cash used in investing activities | (28,504) | (31,401) | (31,165) |
Financing activities | |||
Net payments related to stock-based award activities | (4,993) | (4,166) | (3,304) |
Repurchases of capital stock | (9,075) | (4,846) | (3,693) |
Proceeds from issuance of debt, net of costs | 6,766 | 4,291 | 8,729 |
Repayments of debt | (6,827) | (4,377) | (10,064) |
Proceeds from sale of subsidiary shares | 950 | 800 | 0 |
Net cash used in financing activities | (13,179) | (8,298) | (8,332) |
Effect of exchange rate changes on cash and cash equivalents | (302) | 405 | (170) |
Net increase (decrease) in cash and cash equivalents | 5,986 | (2,203) | (3,631) |
Cash and cash equivalents at beginning of period | 10,715 | 12,918 | 16,549 |
Cash and cash equivalents at end of period | 16,701 | 10,715 | 12,918 |
Supplemental disclosures of cash flow information | |||
Cash paid for taxes, net of refunds | 5,671 | 6,191 | 1,643 |
Cash paid for interest, net of amounts capitalized | $ 69 | $ 84 | $ 84 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Google was incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. In 2015, we implemented a holding company reorganization, and as a result, Alphabet Inc. (Alphabet) became the successor issuer to Google. We generate revenues primarily by delivering relevant, cost-effective online advertising. Basis of Consolidation The consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the variable interest and voting models. Noncontrolling interests are not presented separately as the amounts are not material. All intercompany balances and transactions have been eliminated. Use of Estimates Preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the bad debt allowance, sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Revenue Recognition We recognize revenues when we transfer control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. See Note 2 for further discussion on Revenues. Cost of Revenues Cost of revenues consists of TAC and other costs of revenues. TAC represents the amounts paid to Google Network Members primarily for ads displayed on their properties and amounts paid to our distribution partners who make available our search access points and services. Our distribution partners include browser providers, mobile carriers, original equipment manufacturers, and software developers. Other costs of revenues (which is the cost of revenues excluding TAC) include the following: • Content acquisition costs primarily related to payments to content providers from whom we license video and other content for distribution on YouTube and Google Play (we pay fees to these content providers based on revenues generated or a flat fee); • Expenses associated with our data centers and other operations (including bandwidth, compensation expense (including SBC), depreciation, energy, and other equipment costs); and • Inventory related costs for hardware we sell. Stock-based Compensation Stock-based compensation primarily consists of Alphabet restricted stock units (RSUs). RSUs are equity classified and measured at the fair market value of the underlying stock at the grant date. We recognize RSU expense using the straight-line attribution method over the requisite service period and account for forfeitures as they occur. For RSUs, shares are issued on the vesting dates net of the applicable statutory tax withholding to be paid by us on behalf of our employees. As a result, fewer shares are issued than the number of RSUs outstanding. We record a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. Additionally, stock-based compensation includes other types of stock-based awards that may be settled in the stock of certain of our Other Bets or in cash. Awards that are liability classified are remeasured at fair value through settlement or maturity. The fair value of such awards is based on the valuation of equity of the respective Other Bet. Performance Fees We have compensation arrangements with payouts based on realized investment returns. We recognize compensation expense based on the estimated payouts. Certain Risks and Concentrations Our revenues are primarily derived from online advertising, the market for which is highly competitive and rapidly changing. In addition, our revenues are generated from a multitude of vertical market segments in countries around the world. Significant changes in this industry or changes in customer buying or advertiser spending behavior could adversely affect our operating results. We are subject to concentrations of credit risk principally from cash and cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable. Cash equivalents and marketable securities consist primarily of time deposits, money market and other funds, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments, debt instruments issued by municipalities in the U.S., corporate debt securities, mortgage-backed securities, and asset-backed securities. Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts receivable are typically unsecured and are derived from revenues earned from customers located around the world. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend. We generally do not require collateral from our customers. We maintain reserves for estimated credit losses and these losses have generally been within our expectations. No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2016 , 2017 , or 2018 . In 2016 , 2017 , and 2018 , we generated approximately 47% , 47% , and 46% of our revenues, respectively, from customers based in the U.S. See Note 2 for further details. Fair Value of Financial Instruments Our financial assets and liabilities that are measured at fair value on a recurring basis include cash equivalents, marketable securities, derivative contracts, and non-marketable debt securities. Our financial assets that are measured at fair value on a nonrecurring basis include non-marketable equity securities measured at fair value when observable price changes are identified or when non-marketable equity securities are impaired . Other financial assets and liabilities are carried at cost with fair value disclosed, if required. 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 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 - Unobservable inputs that are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Cash, Cash Equivalents, and Marketable Securities We invest all excess cash primarily in government bonds, corporate debt securities, mortgage-backed and asset-backed securities, time deposits, and money market funds. We classify all investments that are readily convertible to known amounts of cash and have stated maturities of three months or less from the date of purchase as cash equivalents and those with stated maturities of greater than three months as marketable securities. We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable debt securities as available-for-sale. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell these debt securities prior to their stated maturities. As we view these securities as available to support current operations, we classify highly liquid securities with maturities beyond 12 months as current assets under the caption marketable securities on the Consolidated Balance Sheets. We carry these securities at fair value, and report the unrealized gains and losses, net of taxes, as a component of stockholders’ equity, except for unrealized losses determined to be other-than-temporary, which we record within other income (expense), net. We determine any realized gains or losses on the sale of marketable debt securities on a specific identification method, and we record such gains and losses as a component of other income (expense), net. Non-Marketable Investments We account for non-marketable equity investments through which we exercise significant influence but do not have control over the investee under the equity method. Beginning on January 1, 2018, our non-marketable equity securities not accounted for under the equity method are either carried at fair value or under the measurement alternative upon the adoption of ASU 2016-01. Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Adjustments are determined primarily based on a market approach as of the transaction date. We classify our non-marketable investments as non-current assets on the Consolidated Balance Sheets as those investments do not have stated contractual maturity dates. We account for our non-marketable investments that meet the definition of a debt security as available-for-sale securities. Impairment of Investments We periodically review our debt and equity investments for impairment. For debt securities we consider the duration, severity and the reason for the decline in security value; whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or if the amortized cost basis cannot be recovered as a result of credit losses. If any impairment is considered other-than-temporary, we will write down the security to its fair value and record the corresponding charge as other income (expense), net. For equity securities we consider impairment indicators such as negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. If indicators exist and the fair value of the security is below the carrying amount, we write down the security to fair value. Variable Interest Entities We determine at the inception of each arrangement whether an entity in which we have made an investment or in which we have other variable interests in is considered a variable interest entity (VIE). We consolidate VIEs when we are the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE; and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, we assess whether any changes in our interest or relationship with the entity affect our determination of whether the entity is still a VIE and, if so, whether we are the primary beneficiary. If we are not the primary beneficiary in a VIE, we account for the investment or other variable interests in a VIE in accordance with applicable GAAP. Accounts Receivable We record accounts receivable at the invoiced amount. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review the accounts receivable by amounts due from customers that are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. Property and Equipment Property and equipment includes the following categories: land and buildings, information technology assets, construction in progress, leasehold improvements, and furniture and fixtures. Land and buildings include land, offices, data centers and related building improvements. Information technology assets include servers and network equipment. We account for property and equipment at cost less accumulated depreciation. We compute depreciation using the straight-line method over the estimated useful lives of the assets. We depreciate buildings over periods of seven to 25 years. We generally depreciate information technology assets over periods of three to five years (specifically, three years for servers and three to five years for network equipment). We depreciate leasehold improvements over the shorter of the remaining lease term or the estimated useful lives of the assets. Construction in progress is the construction or development of property and equipment that have not yet been placed in service for our intended use. Depreciation for equipment, buildings, and leasehold improvements commences once they are ready for our intended use. Land is not depreciated. Inventory Inventory consists primarily of finished goods and is stated at the lower of cost and net realizable value. Cost is computed using the first-in, first-out method. Software Development Costs We expense software development costs, including costs to develop software products or the software component of products to be sold, leased, or marketed to external users, before technological feasibility is reached. Technological feasibility is typically reached shortly before the release of such products and as a result, development costs that meet the criteria for capitalization were not material for the periods presented. Software development costs also include costs to develop software to be used solely to meet internal needs and cloud based applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Costs capitalized for developing such software applications were not material for the periods presented. Business Combinations We include the results of operations of the businesses that we acquire as of the acquisition date. We allocate the purchase price of the acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. Long-Lived Assets, Goodwill and Other Acquired Intangible Assets We review property and equipment, long-term prepayments and intangible assets, excluding goodwill, for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets are not recoverable, the impairment recognized is measured as the amount by which the carrying value of the asset exceeds its fair value. Impairments were not material for the periods presented. We allocate goodwill to reporting units based on the expected benefit from the business combination. We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. We test our goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill impairments were not material for the periods presented. Intangible assets with definite lives are amortized over their estimated useful lives. We amortize intangible assets on a straight-line basis with definite lives over periods ranging from one to twelve years. Income Taxes We account for income taxes using the asset and liability method, under which we recognize the amount of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. We measure current and deferred tax assets and liabilities based on provisions of enacted tax law. We evaluate the realization of our deferred tax assets based on all available evidence and establish a valuation allowance to reduce deferred tax assets when it is more likely than not that they will not be realized. We recognize the financial statement effects of a tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination. The tax benefits of the position recognized in the financial statements are then measured based on the largest amount of benefit that is greater than 50% likely to be realized upon settlement with a taxing authority. In addition, we recognize interest and penalties related to unrecognized tax benefits as a component of the income tax provision. Foreign Currency Generally, the functional currency of our international subsidiaries is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average rates for the annual period derived from month-end exchange rates for revenues, costs, and expenses. We record translation gains and losses in accumulated other comprehensive income (AOCI) as a component of stockholders’ equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange losses in other income (expense), net. Advertising and Promotional Expenses We expense advertising and promotional costs in the period in which they are incurred. For the years ended December 31, 2016 , 2017 and 2018 , advertising and promotional expenses totaled approximately $3.9 billion , $5.1 billion , and $6.4 billion , respectively. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease 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. We will adopt Topic 842 effective January 1, 2019 using a modified retrospective method and will not restate comparative periods. As permitted under the transition guidance, we will carry forward the assessment of whether our contracts contain or are leases, classification of our leases and remaining lease terms. Based on our portfolio of leases as of December 31, 2018, approximately $9 billion of lease assets and liabilities will be recognized on our balance sheet upon adoption, primarily relating to real estate. We are substantially complete with our implementation efforts. 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 model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. We will adopt ASU 2016-13 effective January 1, 2020. We are currently evaluating the effect of the adoption of ASU 2016-13 on our consolidated financial statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. Recently adopted accounting pronouncements In January 2016, the FASB issued Accounting Standards Update No. 2016-01 (ASU 2016-01) "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. We adopted ASU 2016-01 as of January 1, 2018 using the modified retrospective method for our marketable equity securities and the prospective method for our non-marketable equity securities. This resulted in a $98 million reclassification of net unrealized gains from AOCI to opening retained earnings. We have elected to use the measurement alternative for our non-marketable equity securities, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. The adoption of ASU 2016-01 increases the volatility of our other income (expense), net, as a result of the unrealized gain or loss from the remeasurement of our equity securities. For further information on unrealized gains from equity securities, see Note 3 . 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. We adopted ASU 2016-16 as of January 1, 2018 using a modified retrospective transition method, resulting in a $701 million reclassification of prepaid income taxes related to asset transfers that occurred prior to adoption from other current and non-current assets to opening retained earnings. Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [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. The effect from the adoption of ASC 606 was not material to our financial statements. 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). Sales and usage-based taxes are excluded from revenues. Year Ended December 31, 2016 (1) 2017 2018 Google properties $ 63,785 $ 77,788 $ 96,336 Google Network Members' properties 15,598 17,587 19,982 Google advertising revenues 79,383 95,375 116,318 Google other revenues 10,601 15,003 19,906 Other Bets revenues 288 477 595 Total revenues (2) $ 90,272 $ 110,855 $ 136,819 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. (2) Revenues include hedging gains (losses) of $539 million , $(169) million , and $(138) million for the years ended December 31, 2016 , 2017 , and 2018 , respectively, which do not represent revenues recognized from contracts with customers. The following table presents our revenues disaggregated by geography, based on the addresses of our customers (in millions): Year Ended December 31, 2016 2017 2018 United States $ 42,781 47 % $ 52,449 47 % $ 63,269 46 % EMEA (1) 30,304 34 36,046 33 44,567 33 APAC (1) 12,559 14 16,235 15 21,374 15 Other Americas (1) 4,628 5 6,125 5 7,609 6 Total revenues (2) $ 90,272 100 % $ 110,855 100 % $ 136,819 100 % (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas). (2) Revenues include hedging gains (losses) for the years ended December 31, 2016 , 2017 , and 2018 . 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 Search app, and other Google owned and operated properties like Gmail, Google Maps, Google Play, and YouTube. Google Network Members’ properties revenues consist primarily of advertising revenues generated on Google Network Members’ properties. Our customers generally purchase advertising inventory through Google Ads (formerly AdWords), Google Ad Manager as part of the Authorized Buyers marketplace (formerly DoubleClick AdExchange), and Google Marketing Platform (includes what was formerly DoubleClick Bid Manager), among others. We offer advertising on a cost-per-click basis, which means that an advertiser pays us only when a user clicks on an ad on Google properties or Google Network Members' properties or when a user views certain YouTube engagement ads. 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, 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. 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 revenues 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. Customer Incentives and Credits 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. 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 twelve months ended December 31, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.5 billion of revenues recognized that were included in the deferred revenue balance as of December 31, 2017 . 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 | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Debt Securities We classify our marketable debt securities within Level 2 in the fair value hierarchy because we use quoted market prices to the extent available or alternative pricing sources and models utilizing market observable inputs to determine fair value. In January 2018, we reclassified our U.S. government notes included in marketable debt securities from Level 1 to Level 2 within the fair value hierarchy as these securities are priced based on a combination of quoted prices for identical or similar instruments in active markets and models with significant observable market inputs. Prior period amounts have been reclassified to conform with current period presentation. The vast majority of our government bond holdings are highly liquid U.S. government notes. We classify our non-marketable debt securities within Level 3 in the fair value hierarchy because they are preferred stock and convertible notes issued by private companies without quoted market prices. To estimate the fair value of our non-marketable debt 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 fair value based on the best available information at the measurement date. The following tables summarize our debt securities by significant investment categories as of December 31, 2017 and 2018 (in millions): As of December 31, 2017 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Marketable Non-Marketable Level 2: Time deposits (1) $ 359 $ 0 $ 0 $ 359 $ 357 $ 2 $ 0 Government bonds (2) 51,548 10 (406 ) 51,152 1,241 49,911 0 Corporate debt securities 24,269 21 (135 ) 24,155 126 24,029 0 Mortgage-backed and asset-backed securities 16,789 13 (180 ) 16,622 0 16,622 0 92,965 44 (721 ) 92,288 1,724 90,564 0 Level 3: Non-marketable debt securities 1,083 811 0 1,894 0 0 1,894 Total $ 94,048 $ 855 $ (721 ) $ 94,182 $ 1,724 $ 90,564 $ 1,894 As of December 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Non-Marketable Level 2: Time deposits (1) $ 2,202 $ 0 $ 0 $ 2,202 $ 2,202 $ 0 $ 0 Government bonds (2) 53,634 71 (414 ) 53,291 3,717 49,574 0 Corporate debt securities 25,383 15 (316 ) 25,082 44 25,038 0 Mortgage-backed and asset-backed securities 16,918 11 (324 ) 16,605 0 16,605 0 98,137 97 (1,054 ) 97,180 5,963 91,217 0 Level 3: Non-marketable debt securities 147 116 0 263 0 0 263 Total $ 98,284 $ 213 $ (1,054 ) $ 97,443 $ 5,963 $ 91,217 $ 263 (1) As of December 31, 2017, the majority of our time deposits were foreign deposits. As of December 31, 2018, the majority of our time deposits are domestic deposits. (2) Government bonds are comprised primarily of U.S. government notes, and also includes U.S. government agencies, foreign government bonds, and municipal securities. We determine realized gains or losses on the sale or extinguishment of debt securities on a specific identification method. We recognized gross realized gains of $251 million , $185 million , and $1.3 billion for the years ended December 31, 2016 , 2017 , and 2018 , respectively. We recognized gross realized losses of $304 million , $295 million , and $143 million for the years ended December 31, 2016 , 2017 , and 2018 , respectively. We reflect these gains and losses as a component of other income (expense), net, in the Consolidated Statements of Income. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): As of Due in 1 year $ 23,669 Due in 1 year through 5 years 54,504 Due in 5 years through 10 years 2,236 Due after 10 years 10,808 Total $ 91,217 The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2017 and 2018 , 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, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds (1) $ 28,836 $ (211 ) $ 17,660 $ (195 ) $ 46,496 $ (406 ) Corporate debt securities 18,300 (114 ) 1,710 (21 ) 20,010 (135 ) Mortgage-backed and asset-backed securities 11,061 (105 ) 3,449 (75 ) 14,510 (180 ) Total $ 58,197 $ (430 ) $ 22,819 $ (291 ) $ 81,016 $ (721 ) As of December 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Government bonds (1) $ 12,019 $ (85 ) $ 23,877 $ (329 ) $ 35,896 $ (414 ) Corporate debt securities 10,171 (107 ) 11,545 (209 ) 21,716 (316 ) Mortgage-backed and asset-backed securities 5,534 (75 ) 8,519 (249 ) 14,053 (324 ) Total $ 27,724 $ (267 ) $ 43,941 $ (787 ) $ 71,665 $ (1,054 ) (1) Government bonds are comprised primarily of U.S. government notes, and also includes U.S. government agencies, foreign government bonds, and municipal securities. During the years ended December 31, 2016 , 2017 and 2018 , we did not recognize any significant other-than-temporary impairment losses. Losses on impairment are included as a component of other income (expense), net, in the Consolidated Statements of Income. See Note 6 for further details on other income (expense), net. 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): Year Ended December 31, 2017 2018 Beginning balance $ 1,165 $ 1,894 Total net gains (losses) Included in earnings (10 ) 603 Included in other comprehensive income 707 (1 ) Purchases 88 47 Sales (2 ) (52 ) Settlements (1) (54 ) (2,228 ) Ending balance $ 1,894 $ 263 (1) During the year ended December 31, 2018 the terms of a non-marketable debt security were modified resulting in an unrealized $1.3 billion gain recognized in other income (expense), net and a reclassification of the security to non-marketable equity securities. Equity Investments The following discusses our marketable equity securities, non-marketable equity securities, realized and unrealized gains and losses on marketable and non-marketable equity securities, as well as our equity securities accounted for under the equity method. Marketable equity securities Our marketable equity securities are publicly traded stocks or funds measured at fair value and classified within Level 1 and 2 in the fair value hierarchy because we use quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets. Prior to January 1, 2018, we accounted for the majority of our marketable equity securities at fair value with unrealized gains and losses recognized in accumulated other comprehensive income on the balance sheet. Realized gains and losses on marketable equity securities sold or impaired were recognized in other income (expense), net. Starting January 1, 2018, upon our adoption of ASU 2016-01, unrealized gains and losses during the year are recognized in other income (expense), net. Upon adoption, we reclassified $98 million net unrealized gains related to marketable equity securities from accumulated other comprehensive income to opening retained earnings. The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2017 and 2018 (in millions): As of December 31, 2017 Cash and Cash Equivalents Marketable Level 1: Money market funds $ 1,833 $ 0 Marketable equity securities 0 340 1,833 340 Level 2: Mutual funds (1) 0 252 Total $ 1,833 $ 592 (1) The fair value option was elected for mutual funds with gains (losses) recognized in other income (expense), net. As of December 31, 2018 Cash and Cash Equivalents Marketable Level 1: Money market funds $ 3,493 $ 0 Marketable equity securities 0 994 3,493 994 Level 2: Mutual funds 0 228 Total $ 3,493 $ 1,222 Non-marketable equity securities Our non-marketable equity securities are investments in privately held companies without readily determinable market values. Prior to January 1, 2018, we accounted for our non-marketable equity securities at cost less impairment. Realized gains and losses on non-marketable securities sold or impaired were recognized in other income (expense), net. As of December 31, 2017, non-marketable equity securities accounted for under the cost method had a carrying value of $ 4.5 billion and a fair value of approximately $ 8.8 billion . On January 1, 2018, we adopted ASU 2016-01 which changed the way we account for non-marketable securities. The carrying value of our non-marketable equity securities is adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in other income (expense), net. Because we adopted ASU 2016-01 prospectively, we recognize unrealized gains that occurred in prior periods in the first period after January 1, 2018 when there is an observable transaction for our securities. Non-marketable equity securities remeasured during the year ended December 31, 2018 are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold. The following is a summary of unrealized gains and losses recorded in other income (expense), net, and included as adjustments to the carrying value of non-marketable equity securities held as of December 31, 2018 (in millions): Twelve Months Ended December 31, 2018 Upward adjustments $ 4,285 Downward adjustments (including impairment) (178 ) Total unrealized gain (loss) for non-marketable equity securities $ 4,107 The following table summarizes the total carrying value of our non-marketable equity securities held as of December 31, 2018 including cumulative unrealized upward and downward adjustments made to the initial cost basis of the securities (in millions): Initial cost basis (1) $ 8,168 Upward adjustments 4,285 Downward adjustments (including impairment) (178 ) Total carrying value at the end of the period $ 12,275 (1) Includes $2.2 billion for a non-marketable equity security reclassified from a non-marketable debt security during 2018. During the year ended December 31, 2018 , included in the $12.3 billion of non-marketable equity securities, $6.9 billion were measured at fair value based on observable market transactions, resulting in a net unrealized gain of $4.1 billion . Gains and losses on marketable and non-marketable equity securities Realized and unrealized gains and losses for our marketable and non-marketable equity securities for the year ended December 31, 2018 are summarized below (in millions): Twelve Months Ended December 31, 2018 Realized gain (loss) for equity securities sold during the period $ 1,458 Unrealized gain (loss) on equity securities held as of the end of the period (1) 4,002 Total gain (loss) recognized in other income (expense), net $ 5,460 (1) Includes $4,107 million related to non-marketable equity securities for the year ended December 31, 2018 . Equity securities accounted for under the Equity Method As of December 31, 2017 and 2018 , equity securities accounted for under the equity method had a carrying value of approximately $1.4 billion and $1.3 billion , respectively. Our share of gains and losses including impairment are included as a component of other income (expense), net, in the Consolidated Statements of Income. See Note 6 for further details on other income (expense), net. Derivative Financial Instruments We classify our foreign currency and interest rate derivative contracts primarily within Level 2 in the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments. We recognize derivative instruments as either assets or liabilities in the Consolidated Balance Sheets at fair value. We record changes in the fair value (i.e., gains or losses) of the derivatives in the Consolidated Statements of Income as either other income (expense), net, or revenues, or in the Consolidated Balance Sheets in AOCI, as discussed below. As a result of our adoption of Accounting Standard Update No. 2017-12 (ASU 2017-12) "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," the components excluded from the assessment of hedge effectiveness are recognized in the same income statement line as the hedged item beginning January 1, 2018. We enter into foreign currency contracts with financial institutions to reduce the risk that our cash flows, earnings, and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We also use interest rate derivative contracts to hedge interest rate exposures on our fixed income securities and debt issuances. Our program is not used for trading or speculative purposes. We enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. To further reduce credit risk, we enter into collateral security arrangements under which the counterparty is required to provide collateral when the net fair value of certain financial instruments fluctuates from contractually established thresholds. We can take possession of the collateral in the event of counterparty default. As of December 31, 2017 and 2018 , we received cash collateral related to the derivative instruments under our collateral security arrangements of $15 million and $327 million , respectively, which was included in other current assets. Cash Flow Hedges We use foreign currency forwards and option contracts, including collars (an option strategy comprised of a combination of purchased and written options), designated as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. The notional principal of these contracts was approximately $11.7 billion and $11.8 billion as of December 31, 2017 and 2018 , respectively. These contracts have maturities of 24 months or less. For forwards and option contracts, we exclude the change in the forward points and time value from our assessment of hedge effectiveness. The initial value of the excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in revenues. The difference between fair value changes of the excluded component and the amount amortized to revenues is recorded in AOCI. We reflect the gains or losses of a cash flow hedge included in our hedge effective assessment as a component of AOCI and subsequently reclassify these gains and losses to revenues when the hedged transactions are recorded. If the hedged transactions become probable of not occurring, the corresponding amounts in AOCI are immediately reclassified to other income (expense), net. As of December 31, 2018 , the net gain or loss of our foreign currency cash flow hedges before tax effect was a net accumulated gain of $247 million , of which a net gain of $247 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. We recognize changes in the excluded component in other income (expense), net. The notional principal of these contracts was $2.9 billion and $2.0 billion as of December 31, 2017 and 2018 , 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. Net Investment Hedges During the year ended December 31, 2018 , we entered into forward contracts designated as net investment hedges to hedge the foreign currency risks related to our investment in foreign subsidiaries. We exclude changes in forward points for the forward contracts from the assessment of hedge effectiveness. We recognize changes in the excluded component in other income (expense), net. The notional principal of these contracts was $6.7 billion as of December 31, 2018 . Gains and losses on these forward contracts are recognized in AOCI as part of the foreign currency translation adjustment. Other Derivatives Other derivatives not designated as hedging instruments consist of foreign currency forward contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the local currency of a subsidiary. We recognize gains and losses on these contracts, as well as the related costs in other income (expense), net, along with the foreign currency gains and losses on monetary assets and liabilities. The notional principal of the outstanding foreign exchange contracts was $15.2 billion and $20.1 billion as of December 31, 2017 and 2018 , respectively. The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2017 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 51 $ 29 $ 80 Total $ 51 $ 29 $ 80 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 230 $ 122 $ 352 Total $ 230 $ 122 $ 352 As of December 31, 2018 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 459 $ 54 $ 513 Total $ 459 $ 54 $ 513 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 5 $ 228 $ 233 Total $ 5 $ 228 $ 233 The gains (losses) on derivatives in cash flow hedging and net investment hedging relationships recognized in other comprehensive income (OCI) are summarized below (in millions): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Year Ended December 31, 2016 2017 2018 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ 773 $ (955 ) $ 332 Amount excluded from the assessment of effectiveness 0 0 26 Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 0 0 136 Total $ 773 $ (955 ) $ 494 The effect of derivative instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income Year Ended December 31, 2016 2017 2018 Revenues Other income (expense), net Revenues Other income (expense), net Revenues Other income (expense), net Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow and fair value hedges are recorded $ 90,272 $ 434 $ 110,855 $ 1,047 $ 136,819 $ 8,592 Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ 539 $ 0 $ (169 ) $ 0 $ (139 ) $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 0 0 0 0 1 0 Amount excluded from the assessment of effectiveness 0 (381 ) 0 83 0 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 (139 ) 0 197 0 (96 ) Derivatives designated as hedging instruments 0 139 0 (197 ) 0 96 Amount excluded from the assessment of effectiveness 0 6 0 23 0 37 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 0 0 0 0 78 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Derivatives not designated as hedging instruments 0 130 0 (230 ) 0 54 Total gains (losses) $ 539 $ (245 ) $ (169 ) $ (124 ) $ (138 ) $ 169 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, 2017 and 2018 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets As of December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 102 $ (22 ) $ 80 $ (64 ) (1) $ (4 ) $ (2 ) $ 10 As of December 31, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 569 $ (56 ) $ 513 $ (90 ) (1) $ (307 ) $ (14 ) $ 102 (1) The balances as of December 31, 2017 and 2018 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, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 374 $ (22 ) $ 352 $ (64 ) (2) $ 0 $ 0 $ 288 As of December 31, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 289 $ (56 ) $ 233 $ (90 ) (2) $ 0 $ 0 $ 143 (2) The balances as of December 31, 2017 and 2018 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) Consolidated VIEs We consolidate VIEs in which we hold a variable interest and are the primary beneficiary. We are the primary beneficiary because we have the power to direct activities that most significantly affect their economic performance and have the obligation to absorb the majority of their losses or benefits. The results of operations and financial position of these VIEs are included in our consolidated financial statements. For certain consolidated VIEs, their assets are not available to us and their creditors do not have recourse to us. As of December 31, 2017 and 2018 , assets that can only be used to settle obligations of these VIEs were $1.7 billion and $2.4 billion , respectively, and the liabilities for which creditors only have recourse to the VIEs were $997 million and $909 million , respectively. Calico Calico is a life science company with a mission to harness advanced technologies to increase our understanding of the biology that controls lifespan. In September 2014, AbbVie Inc. (AbbVie) and Calico entered into a research and development collaboration agreement intended to help both companies discover, develop, and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. In the second quarter of 2018, AbbVie and Calico amended the collaboration agreement resulting in an increase in total commitments. As of December 31, 2018 , AbbVie has contributed $750 million to fund the collaboration pursuant to the agreement and is committed to an additional $500 million which will be paid by the fourth quarter of 2019. As of December 31, 2018 , Calico has contributed $500 million and has committed up to an additional $750 million . Calico has used its scientific expertise to establish a world-class research and development facility, with a focus on drug discovery and early drug development; and AbbVie provides scientific and clinical development support and its commercial expertise to bring new discoveries to market. Both companies share costs and profits for projects covered under this agreement equally. AbbVie's contribution has been recorded as a liability on Calico's financial statements, which is reduced and reflected as a reduction to research and development expense as eligible research and development costs are incurred by Calico. As of December 31, 2018 , we have contributed $480 million to Calico in exchange for Calico convertible preferred units and are committed to fund up to an additional $750 million on an as-needed basis and subject to certain conditions. Verily Verily is a life science company with a mission to make the world's health data useful so that people enjoy healthier lives. In 2017, Temasek, a Singapore-based investment company, purchased a noncontrolling interest in Verily for an aggregate of $800 million in cash. In December 2018, Verily received $900 million in cash from a $1.0 billion investment round. The remaining $100 million is expected to be received in the first quarter of 2019. These transactions were accounted for as equity transactions and no gain or loss was recognized. Unconsolidated VIEs Certain renewable energy investments included in our non-marketable equity investments accounted for under the equity method are VIEs. These entities' activities involve power generation using renewable sources. We have determined that the governance structures of these entities do not allow us to direct the activities that would significantly affect their economic performance such as setting operating budgets. Therefore, we do not consolidate these VIEs in our consolidated financial statements. The carrying value and maximum exposure of these VIEs were $896 million and $705 million as of December 31, 2017 and 2018 , respectively. The maximum exposure is based on current investments to date. We have determined the single source of our exposure to these VIEs is our capital investment in them. Other unconsolidated VIEs were not material as of December 31, 2017 and 2018 . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 and 2018 . 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 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 (57 ) (50 ) Subtotal (1) 3,943 3,950 Capital lease obligation 26 62 Total long-term debt $ 3,969 $ 4,012 (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 $4.0 billion and $3.9 billion as of December 31, 2017 and 2018 , respectively. The fair value was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy. As of December 31, 2018 , the aggregate future principal payments for long-term debt including long-term capital leases for each of the next five years and thereafter are as follows (in millions): 2019 $ 0 2020 14 2021 1,003 2022 3 2023 3 Thereafter 3,039 Total $ 4,062 Credit Facility As of December 31, 2018 , we have $4.0 billion of revolving credit facilities which expire in July 2023. The interest rate for the credit facilities is determined based on a formula using certain market rates. No amounts were outstanding under the credit facilities as of December 31, 2017 and 2018 . |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 2018 | |
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 Land and buildings $ 23,183 $ 30,179 Information technology assets 21,429 30,119 Construction in progress 10,491 16,838 Leasehold improvements 4,496 5,310 Furniture and fixtures 48 61 Property and equipment, gross 59,647 82,507 Less: accumulated depreciation (17,264 ) (22,788 ) Property and equipment, net $ 42,383 $ 59,719 As of December 31, 2017 and 2018 , assets under capital lease with a cost basis of $390 million and $648 million , respectively, were included in property and equipment. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in millions): As of As of European Commission fines (1) $ 2,874 $ 7,754 Accrued customer liabilities 1,489 1,810 Other accrued expenses and current liabilities 5,814 7,394 Accrued expenses and other current liabilities $ 10,177 $ 16,958 (1) Includes the effects of foreign exchange and interest. See Note 9 for further details Accumulated Other Comprehensive Income (Loss) The components of AOCI, net of tax, were as follows (in millions): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2015 $ (2,047 ) $ (86 ) $ 259 $ (1,874 ) Other comprehensive income (loss) before reclassifications (599 ) (314 ) 515 (398 ) Amounts reclassified from AOCI 0 221 (351 ) (130 ) Other comprehensive income (loss) (599 ) (93 ) 164 (528 ) Balance as of December 31, 2016 $ (2,646 ) $ (179 ) $ 423 $ (2,402 ) Other comprehensive income (loss) before reclassifications 1,543 307 (638 ) 1,212 Amounts reclassified from AOCI 0 105 93 198 Other comprehensive income (loss) 1,543 412 (545 ) 1,410 Balance as of December 31, 2017 $ (1,103 ) $ 233 $ (122 ) $ (992 ) Other comprehensive income (loss) before reclassifications (1) (781 ) (10 ) 264 (527 ) Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 26 26 Amounts reclassified from AOCI 0 (911 ) 98 (813 ) Other comprehensive income (loss) (781 ) (921 ) 388 (1,314 ) Balance as of December 31, 2018 $ (1,884 ) $ (688 ) $ 266 $ (2,306 ) (1) The change in unrealized gains (losses) on available-for-sale investments included a $98 million adjustment of net unrealized gains related to marketable equity securities from AOCI to opening retained earnings as a result of the adoption of ASU 2016-01 on January 1, 2018. The effects on net income of amounts reclassified from AOCI were as follows (in millions): Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income Year Ended December 31, AOCI Components Location 2016 2017 2018 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (221 ) $ (105 ) $ 1,190 Provision for income taxes 0 0 (279 ) Net of tax $ (221 ) $ (105 ) $ 911 Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue $ 539 $ (169 ) $ (139 ) Interest rate contracts Other income (expense), net 5 5 6 Benefit (provision) for income taxes (193 ) 71 35 Net of tax $ 351 $ (93 ) $ (98 ) Total amount reclassified, net of tax $ 130 $ (198 ) $ 813 Other Income (Expense), Net The components of other income (expense), net, were as follows (in millions): Year Ended December 31, 2016 2017 2018 Interest income $ 1,220 $ 1,312 $ 1,878 Interest expense (1) (124 ) (109 ) (114 ) Foreign currency exchange losses, net (2) (475 ) (121 ) (80 ) Gain (loss) on debt securities, net (3) (53 ) (110 ) 1,190 Gain (loss) on equity securities, net (20 ) 73 5,460 Loss and impairment from equity method investments, net (202 ) (156 ) (120 ) Other 88 158 378 Other income (expense), net $ 434 $ 1,047 $ 8,592 (1) Interest expense is net of interest capitalized of $0 million , $48 million , and $92 million for the years ended December 31, 2016 , 2017 , and 2018 , respectively. (2) Our foreign currency exchange losses, net, are related to the option premium costs and forwards points for our foreign currency hedging contracts, our foreign exchange transaction gains and losses from the conversion of the transaction currency to the functional currency, offset by the foreign currency hedging contract losses and gains. The net foreign currency transaction losses were $112 million , $226 million , and $195 million for the years ended December 31, 2016 , 2017 , and 2018 , respectively. (3) During the year ended December 31, 2018, the terms of a non-marketable debt security were modified resulting in an unrealized $1.3 billion gain. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2018 Acquisitions HTC Corporation (HTC) In January 2018, we completed the acquisition of a team of engineers and a non-exclusive license of intellectual property from HTC for $1.1 billion in cash. In aggregate, $10 million was cash acquired, $165 million was attributed to intangible assets, $934 million was attributed to goodwill, and $9 million was attributed to net liabilities assumed. Goodwill, which was included in the Google segment, is not deductible for tax purposes. We expect this transaction to accelerate Google’s ongoing hardware efforts. The transaction was accounted for as a business combination. Other Acquisitions During the year ended December 31, 2018 , we completed other acquisitions and purchases of intangible assets for total consideration of approximately $573 million . In aggregate, $10 million was cash acquired, $295 million was attributed to intangible assets, $293 million was attributed to goodwill, and $25 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 $81 million . Pro forma results of operations for these acquisitions, including HTC, have not been presented because they are not material to the consolidated results of operations, either individually or in the aggregate. For all intangible assets acquired and purchased during the year ended December 31, 2018 , patents and developed technology have a weighted-average useful life of 3.7 years, customer relationships have a weighted-average useful life of 2.3 years, and trade names and other have a weighted-average useful life of 3.7 years. 2017 Acquisitions During the year ended December 31, 2017 , we completed various acquisitions and purchases of intangible assets for total consideration of approximately $322 million . In aggregate, $12 million was cash acquired, $117 million was attributed to intangible assets, $221 million was attributed to goodwill, and $28 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 $60 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 year ended December 31, 2017 , patents and developed technology have a weighted-average useful life of 3.7 years, customer relationships have a weighted-average useful life of 2.0 years, and trade names and other have a weighted-average useful life of 8.8 years. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2018 were as follows (in millions): Google Other Bets Total Consolidated Balance as of December 31, 2016 $ 16,027 $ 441 $ 16,468 Acquisitions 212 9 221 Foreign currency translation and other adjustments 56 2 58 Balance as of December 31, 2017 16,295 452 16,747 Acquisitions 1,227 0 1,227 Transfers 80 (80 ) 0 Foreign currency translation and other adjustments (81 ) (5 ) (86 ) Balance as of December 31, 2018 $ 17,521 $ 367 $ 17,888 Other Intangible Assets Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 5,260 $ 3,040 $ 2,220 Customer relationships 359 263 96 Trade names and other 544 168 376 Total $ 6,163 $ 3,471 $ 2,692 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 5,125 $ 3,394 $ 1,731 Customer relationships 349 308 41 Trade names and other 703 255 448 Total $ 6,177 $ 3,957 $ 2,220 Patents and developed technology, customer relationships, and trade names and other have weighted-average remaining useful lives of 3.0 years, 0.5 years, and 3.8 years, respectively. Amortization expense relating to purchased intangible assets was $833 million , $796 million , and $865 million for the years ended December 31, 2016 , 2017 , and 2018 , respectively. As of December 31, 2018 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows (in millions): 2019 $ 712 2020 585 2021 533 2022 201 2023 7 Thereafter 182 $ 2,220 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases We have entered into various non-cancelable operating lease agreements for data centers and land and offices throughout the world with lease periods expiring between 2019 and 2063 . We are committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense on a straight-line basis. As of December 31, 2018 , future minimum payments under operating leases having initial or remaining non-cancelable lease terms in excess of one year, net of sublease income amounts, were as follows (in millions): Operating Leases (1) Sub-lease Income Net Operating Leases 2019 $ 1,319 $ 16 $ 1,303 2020 1,397 13 1,384 2021 1,337 10 1,327 2022 1,153 8 1,145 2023 980 3 977 Thereafter 3,916 5 3,911 Total minimum payments $ 10,102 $ 55 $ 10,047 (1) Includes future minimum payments for leases which have not yet commenced. We have entered into certain non-cancelable lease agreements with lease periods expiring between 2021 and 2044 where we are the deemed owner for accounting purposes of new construction projects. Excluded from the table above are future minimum lease payments under such leases totaling approximately $3.5 billion , for which a $1.5 billion liability is included on the Consolidated Balance Sheets as of December 31, 2018 . Rent expense under operating leases was $897 million , $1.1 billion , and $1.3 billion for the years ended December 31, 2016 , 2017 , and 2018 , respectively. Purchase Obligations As of December 31, 2018 , we had $7.4 billion of other non-cancelable contractual obligations, primarily related to data center operations and build-outs, digital media content licensing, and purchases of inventory. Indemnifications In the normal course of business, to facilitate transactions in our services and products, we indemnify certain parties, including advertisers, Google Network Members, and lessors with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our officers and directors, and our bylaws contain similar indemnification obligations to our agents. It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows, or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of December 31, 2018 , we did not have any material indemnification claims that were probable or reasonably possible. Legal Matters Antitrust Investigations On November 30, 2010, the EC's Directorate General for Competition opened an investigation into various antitrust-related complaints against us. On April 15, 2015, the EC issued a Statement of Objections (SO) regarding the display and ranking of shopping search results and ads, to which we responded on August 27, 2015. On July 14, 2016, the EC issued a Supplementary SO regarding shopping search results and ads. On June 27, 2017, the EC announced its decision that certain actions taken by Google regarding its display and ranking of shopping search results and ads infringed European competition law. The EC decision imposed a €2.4 billion ( $2.7 billion as of June 27, 2017) fine. On September 11, 2017, we appealed the EC decision and on September 27, 2017, we implemented product changes to bring shopping ads into compliance with the EC's decision. We recognized a charge of $2.7 billion for the fine in the second quarter of 2017. While under appeal, the fine is included in accrued expenses and other current liabilities on our Consolidated Balance Sheets as we provided bank guarantees in lieu of a cash payment for the fine. On April 20, 2016, the EC issued an SO regarding certain Android distribution practices. We responded to the SO and the EC's informational requests. On July 18, 2018, the EC announced its decision that certain provisions in Google’s Android-related distribution agreements infringed European competition law. The EC decision imposed a €4.3 billion ( $5.1 billion as of June 30, 2018) fine and directed the termination of the conduct at issue. On October 9, 2018, we appealed the EC decision and implemented changes to certain of our Android distribution practices. We recognized a charge of $5.1 billion for the fine in the second quarter of 2018. While under appeal, the fine is included in accrued expenses and other current liabilities on our Consolidated Balance Sheets as we provided bank guarantees in lieu of a cash payment for the fine. On July 14, 2016, the EC issued an SO regarding the syndication of AdSense for Search. We responded to the SO and continue to respond to the EC's informational requests. There is significant uncertainty as to the outcome of this investigation; however, an adverse decision could result in fines and directives to alter or terminate certain conduct. Given the nature of this case, we are unable to estimate the reasonably possible loss or range 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 Administrative Council for Economic Defense (CADE), and the Korean Fair Trade Commission have also opened investigations into certain of our business practices. In November 2016, we responded to the CCI Director General's report with interim findings of competition law infringements regarding search and ads. On February 8, 2018, the CCI issued its final decision, including a fine of approximately $21 million , finding no violation of competition law infringement on most of the issues it investigated, but finding violations, including in the display of the “flights unit” in search results, and a contractual provision in certain direct search intermediation agreements. We have appealed the CCI decision. The fine was accrued for in 2018. Patent and Intellectual Property Claims We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe the intellectual property rights of others. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services, and may also cause us to change our business practices, and require development of non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to litigate intellectual property disputes because an ultimate loss for a company or its suppliers in an ITC action could result in a prohibition on importing infringing products into the U.S. Because the U.S. is an important market, a prohibition on importation could have an adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating workarounds that may limit certain features of our products. Furthermore, many of our agreements with our customers and partners require us to indemnify them for certain intellectual property infringement claims against them, which would increase our costs as a result of defending such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims. Our customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely affect our business. In 2010, Oracle America, Inc. (Oracle) brought a copyright lawsuit against Google in the Northern District of California, alleging that Google's Android operating system infringes Oracle's copyrights related to certain Java application programming interfaces. After trial, final judgment was entered by the district court in favor of Google on June 8, 2016, and the court decided post-trial motions in favor of Google. Oracle appealed and on March 27, 2018, the appeals court reversed and remanded the case for a trial on damages. On May 29, 2018, we filed a petition for an en banc rehearing at the Federal Circuit, and on August 28, 2018, the Federal Circuit denied the petition. On January 24, 2019, we filed a petition to the Supreme Court of the United States to review this case. 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 and related compliance, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters. Such claims, suits, regulatory and government investigations, and other proceedings could result in fines, civil or criminal penalties, or other adverse consequences. Certain of these outstanding matters include speculative, substantial or indeterminate monetary amounts. We record a liability when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and make adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. With respect to our outstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either individually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties. We expense legal fees in the period in which they are incurred. Non-Income Taxes We are under audit by various domestic and foreign tax authorities with regards to non-income tax matters. The subject matter of non-income tax audits primarily arises from disputes on the tax treatment and tax rate applied to the sale of our products and services in these jurisdictions and the tax treatment of certain employee benefits. We accrue non-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when a loss is probable and reasonably estimable. If we determine that a loss is reasonably possible and the loss or range of loss can be estimated, we disclose the reasonably possible loss. 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 13 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Convertible Preferred Stock Our board of directors has authorized 100 million shares of convertible preferred stock, $0.001 par value, issuable in series. As of December 31, 2017 and 2018 , no shares were issued or outstanding. Class A and Class B Common Stock and Class C Capital Stock Our board of directors has authorized three classes of stock, Class A and Class B common stock, and Class C capital stock. The rights of the holders of each class of our common and capital stock are identical, except with respect to voting. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share. Class C capital stock has no voting rights, except as required by applicable law. Shares of Class B common stock may be converted at any time at the option of the stockholder and automatically convert upon sale or transfer to Class A common stock. Share Repurchases In October 2016, the board of directors of Alphabet authorized the company to repurchase up to $7.0 billion of its Class C capital stock, which was completed during 2018. In January 2018, the board of directors of Alphabet authorized the company to repurchase up to $8.6 billion of its Class C capital stock. The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The repurchase program does not have an expiration date. During the years ended December 31, 2017 and 2018 , we repurchased and subsequently retired 5.2 million shares of Alphabet Class C capital stock for an aggregate amount of $4.8 billion and 8.2 million shares of Alphabet Class C capital stock for an aggregate amount of $9.1 billion , respectively. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share We compute net income per share of Class A and Class B common stock and Class C capital stock using the two-class method. Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of restricted stock units and other contingently issuable shares. The dilutive effect of outstanding restricted stock units and other contingently issuable shares is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares. The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock and Class C capital stock are identical, except with respect to voting. Furthermore, there are a number of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude our board of directors from declaring or paying unequal per share dividends on our Class A and Class B common stock and Class C capital stock. Specifically, Delaware law provides that amendments to our certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a given class of stock must be approved by the class of stock adversely affected by the proposed amendment. In addition, our certificate of incorporation provides that before any such amendment may be put to a stockholder vote, it must be approved by the unanimous consent of our board of directors. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares and Class C capital stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. In the years ended December 31, 2016 , 2017 and 2018 , 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. The following tables set forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): Year Ended December 31, 2016 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 8,332 $ 1,384 $ 9,762 Denominator Number of shares used in per share computation 294,217 48,859 344,702 Basic net income per share $ 28.32 $ 28.32 $ 28.32 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 8,332 $ 1,384 $ 9,762 Effect of dilutive securities in equity method investments and subsidiaries (9 ) (2 ) (10 ) Allocation of undistributed earnings for diluted computation 8,323 1,382 9,752 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,382 0 0 Reallocation of undistributed earnings (94 ) (21 ) 94 Allocation of undistributed earnings $ 9,611 $ 1,361 $ 9,846 Denominator Number of shares used in basic computation 294,217 48,859 344,702 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 48,859 0 0 Restricted stock units and other contingently issuable shares 2,055 0 8,873 Number of shares used in per share computation 345,131 48,859 353,575 Diluted net income per share $ 27.85 $ 27.85 $ 27.85 Year Ended December 31, 2017 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 5,438 $ 862 $ 6,362 Denominator Number of shares used in per share computation 297,604 47,146 348,151 Basic net income per share $ 18.27 $ 18.27 $ 18.27 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 5,438 $ 862 $ 6,362 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 862 0 0 Reallocation of undistributed earnings (74 ) (14 ) 74 Allocation of undistributed earnings $ 6,226 $ 848 $ 6,436 Denominator Number of shares used in basic computation 297,604 47,146 348,151 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 47,146 0 0 Restricted stock units and other contingently issuable shares 1,192 0 9,491 Number of shares used in per share computation 345,942 47,146 357,642 Diluted net income per share $ 18.00 $ 18.00 $ 18.00 Year Ended December 31, 2018 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 13,200 $ 2,072 $ 15,464 Denominator Number of shares used in per share computation 298,548 46,864 349,728 Basic net income per share $ 44.22 $ 44.22 $ 44.22 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 13,200 $ 2,072 $ 15,464 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 2,072 0 0 Reallocation of undistributed earnings (146 ) (24 ) 146 Allocation of undistributed earnings $ 15,126 $ 2,048 $ 15,610 Denominator Number of shares used in basic computation 298,548 46,864 349,728 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 46,864 0 0 Restricted stock units and other contingently issuable shares 689 0 7,456 Number of shares used in per share computation 346,101 46,864 357,184 Diluted net income per share $ 43.70 $ 43.70 $ 43.70 |
Compensation Plans
Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation Plans | Compensation Plans Stock Plans Under our 2012 Stock Plan, RSUs or stock options may be granted. An RSU award is an agreement to issue shares of our publicly traded stock at the time the award vests. Incentive and non-qualified stock options, or rights to purchase common stock, are generally granted for a term of 10 years. RSUs granted to participants under the 2012 Stock Plan generally vest over four years contingent upon employment or service with us on the vesting date. As of December 31, 2018 , there were 31,848,134 shares of stock reserved for future issuance under our Stock Plan. Stock-Based Compensation For the years ended December 31, 2016 , 2017 and 2018 , total stock-based compensation expense was $6.9 billion , $7.9 billion and $10.0 billion , including amounts associated with awards we expect to settle in Alphabet stock of $6.7 billion , $7.7 billion , and $9.4 billion , respectively. For the years ended December 31, 2016 , 2017 and 2018 , we recognized tax benefits on total stock-based compensation expense, which are reflected in the provision for income taxes in the Consolidated Statements of Income, of $1.5 billion , $1.6 billion , and $1.5 billion , respectively. For the years ended December 31, 2016 , 2017 and 2018 , tax benefit realized related to awards vested or exercised during the period was $2.1 billion , $2.7 billion and $2.1 billion , respectively. These amounts do not include the indirect effects of stock-based awards, which primarily relate to the research and development tax credit. Stock-Based Award Activities The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2018 : Unvested Restricted Stock Units Number of Shares Weighted- Average Grant-Date Fair Value Unvested as of December 31, 2017 20,077,346 $ 712.45 Granted 12,669,251 $ 1,095.89 Vested (12,847,910 ) $ 756.45 Forfeited/canceled (1,431,009 ) $ 814.19 Unvested as of December 31, 2018 18,467,678 $ 936.96 The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2016 and 2017 , was $713.89 and $845.06 , respectively. Total fair value of RSUs, as of their respective vesting dates, during the years ended December 31, 2016 , 2017 , and 2018 were $9.0 billion , $11.3 billion , and $14.1 billion , respectively. As of December 31, 2018 , there was $16.2 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 . 401(k) Plans We have two 401(k) Savings Plans that qualify as deferred salary arrangements under Section 401(k) of the Internal Revenue Code. Under these 401(k) Plans, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. We recognized expense of approximately $385 million , $448 million , and $691 million for the years ended December 31, 2016 , 2017 , and 2018 , respectively. Performance Fees We have compensation arrangements with payouts based on realized investment returns. We recognize compensation expense based on the estimated payouts, which may result in expense recognized before investment returns are realized. For the year ended December 31, 2018 , performance fees of $1.2 billion primarily related to gains on equity securities (for further information on gains on equity securities, see Note 3 ) were accrued and recorded as a component of general and administrative expenses. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from continuing operations before income taxes included income from domestic operations of $12.0 billion , $10.7 billion , and $15.8 billion for the years ended December 31, 2016 , 2017 , and 2018 , respectively, and income from foreign operations of $12.1 billion , $16.5 billion , and $19.1 billion for the years ended December 31, 2016 , 2017 , and 2018 , respectively. The provision for income taxes consists of the following (in millions): Year Ended December 31, 2016 2017 2018 Current: Federal and state $ 3,826 $ 12,608 $ 2,153 Foreign 966 1,746 1,251 Total 4,792 14,354 3,404 Deferred: Federal and state (70 ) 220 907 Foreign (50 ) (43 ) (134 ) Total (120 ) 177 773 Provision for income taxes $ 4,672 $ 14,531 $ 4,177 The Tax Act enacted on December 22, 2017 introduced significant changes to U.S. income tax law. Effective 2018, the Tax Act reduced the U.S. statutory tax rate from 35% to 21% and created new taxes on certain foreign-sourced earnings and certain related-party payments. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded provisional amounts in our consolidated financial statements as of December 31, 2017. As we collected and prepared necessary data, and interpreted the additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies, we made adjustments, over the course of the year, to the provisional amounts including refinements to deferred taxes. The accounting for the tax effects of the Tax Act has been completed as of December 31, 2018. One-time transition tax The Tax Act required us to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. We recorded a provisional amount for our one-time transitional tax liability and income tax expense of $10.2 billion as of December 31, 2017. Deferred tax effects Due to the change in the statutory tax rate from the Tax Act, we remeasured our deferred taxes as of December 31, 2017 to reflect the reduced rate that will apply in future periods when these deferred taxes are settled or realized. We recognized a deferred tax benefit of $376 million to reflect the reduced U.S. tax rate and other effects of the Tax Act as of December 31, 2017. The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, 2016 2017 2018 U.S. federal statutory tax rate 35.0 % 35.0 % 21.0 % Foreign income taxed at different rates (11.0 ) (14.2 ) (4.9 ) Effect of the Tax Act One-time transition tax 0.0 37.6 (0.1 ) Deferred tax effects 0.0 (1.4 ) (1.2 ) Federal research credit (2.0 ) (1.8 ) (2.4 ) Stock-based compensation expense (3.4 ) (4.5 ) (2.2 ) European Commission fine 0.0 3.5 3.1 Deferred tax asset valuation allowance 0.1 0.9 (2.0 ) Other adjustments 0.6 (1.7 ) 0.7 Effective tax rate 19.3 % 53.4 % 12.0 % Our effective tax rate for each of the years presented was affected by earnings realized in foreign jurisdictions with statutory tax rates lower than the federal statutory tax rate. Substantially all of the income from foreign operations was earned by an Irish subsidiary. Beginning in 2018, earnings realized in foreign jurisdictions are subject to U.S. tax in accordance with the Tax Act. On July 27, 2015, the United States Tax Court, in an opinion in Altera Corp. v. Commissioner, invalidated the portion of the Treasury regulations issued under IRC Section 482 requiring related-party participants in a cost sharing arrangement to share stock-based compensation costs. The U.S. Tax Court issued the final decision on December 28, 2015. The IRS served a Notice of Appeal on February 22, 2016 and the case is being heard by the Ninth Circuit Court of Appeals. The Ninth Circuit Court of Appeals overturned the Tax Court’s decision in an opinion issued on July 24, 2018, but withdrew that opinion in an order issued on August 7, 2018 to allow time for a reconstituted panel to confer on the appeal. At this time, the Ninth Circuit Court of Appeals has not issued a final decision, and the U.S. Treasury has not withdrawn the requirement to include stock-based compensation from its regulations. We have evaluated the opinion and continue to record a tax benefit related to reimbursement of cost share payments for the previously shared stock-based compensation costs. In accordance with the Tax Act, the Altera tax benefit was remeasured from 35% to 21%. We also remeasured the tax benefit expected to be realized upon settlement including the expected future new taxes enacted by the Tax Act due upon resolution of the matter. The tax liability recorded as of December 31, 2016 for the U.S. tax cost of the potential repatriation associated with the contingent foreign earnings was reversed due to the Tax Act introducing a territorial tax system and providing a 100% dividend received deduction on certain qualified dividends from foreign subsidiaries. We will continue to monitor developments related to the case and the potential effect on our consolidated financial statements. Deferred Income Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We recorded a provisional adjustment to our U.S. deferred income taxes as of December 31, 2017 to reflect the reduction in the U.S. statutory tax rate from 35% to 21% resulting from the Tax Act. Significant components of our deferred tax assets and liabilities are as follows (in millions): As of December 31, 2017 2018 Deferred tax assets: Stock-based compensation expense $ 251 $ 291 Accrued employee benefits 285 387 Accruals and reserves not currently deductible 717 1,062 Tax credits 1,187 1,979 Basis difference in investment in Arris 849 657 Prepaid cost sharing 498 597 Net operating losses 320 557 Other 244 251 Total deferred tax assets 4,351 5,781 Valuation allowance (2,531 ) (2,817 ) Total deferred tax assets net of valuation allowance 1,820 2,964 Deferred tax liabilities: Property and equipment (551 ) (1,382 ) Identified intangibles (419 ) (229 ) Renewable energy investments (531 ) (500 ) Investment gains/losses (22 ) (1,143 ) Other (47 ) (237 ) Total deferred tax liabilities (1,570 ) (3,491 ) Net deferred tax assets (liabilities) $ 250 $ (527 ) As of December 31, 2018 , our federal and state net operating loss carryforwards for income tax purposes were approximately $1.2 billion and $1.4 billion , respectively. If not utilized, the federal net operating loss carryforwards will begin to expire in 2021 and the state net operating loss carryforwards will begin to expire in 2019. It is more likely than not that certain federal net operating loss carryforwards and our state net operating loss carryforwards will not be realized; therefore, we have recorded a valuation allowance against them. The net operating loss carryforwards are subject to various annual limitations under the tax laws of the different jurisdictions. Our foreign net operating loss carryforwards for income tax purposes were $950 million that will begin to expire in 2021. As of December 31, 2018 , our California research and development credit carryforwards for income tax purposes were approximately $2.4 billion that can be carried over indefinitely. We believe the state tax credit is not likely to be realized. As of December 31, 2018 , we maintained a valuation allowance with respect to California deferred tax assets, certain federal net operating losses, and certain foreign net operating losses that we believe are not likely to be realized. Due to gains from equity securities recognized in 2018, we released the valuation allowance against the deferred tax asset for the book-to-tax basis difference in our investments in Arris shares received from the sale of the Motorola Home business to Arris in 2013. We continue to reassess the remaining valuation allowance quarterly and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. For further information on the unrealized gains related to marketable equity securities recognized in other income (expenses), see Note 1. Uncertain Tax Positions The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2016 to December 31, 2018 (in millions): 2016 2017 2018 Beginning gross unrecognized tax benefits $ 4,167 $ 5,393 $ 4,696 Increases related to prior year tax positions 899 685 321 Decreases related to prior year tax positions (157 ) (257 ) (623 ) Decreases related to settlement with tax authorities (196 ) (1,875 ) (191 ) Increases related to current year tax positions 680 750 449 Ending gross unrecognized tax benefits $ 5,393 $ 4,696 $ 4,652 The total amount of gross unrecognized tax benefits was $5.4 billion , $4.7 billion , and $4.7 billion as of December 31, 2016 , 2017 , and 2018 , respectively, of which, $4.3 billion , $3.0 billion , and $2.9 billion , if recognized, would affect our effective tax rate, respectively. The decrease in gross unrecognized tax benefits in 2017 was primarily as a result of the resolution of a multi-year U.S. audit. As of December 31, 2017 and 2018 , we had accrued $362 million and $490 million in interest and penalties in provision for income taxes, respectively. We file income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions, our two major tax jurisdictions are the U.S. federal and Ireland. We are subject to the continuous examination of our income tax returns by the IRS and other tax authorities. The IRS is currently examining our 2013 through 2015 tax returns. We have also received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend any and all such claims as presented. Our 2016 and 2017 tax years remain subject to examination by the IRS for U.S. federal tax purposes, and our 2011 through 2017 tax years remain subject to examination by the appropriate governmental agencies for Irish tax purposes. There are other ongoing audits in various other jurisdictions that are not material to our financial statements. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner not consistent with management's expectations, we could be required to adjust our provision for income taxes in the period such resolution occurs. Although the timing of resolution, settlement, and closure of audits is not certain, it is reasonably possible that certain U.S. federal and non-U.S. tax audits may be concluded within the next 12 months, which could significantly increase or decrease the balance of our gross unrecognized tax benefits. We estimate that our unrecognized tax benefits as of December 31, 2018 could possibly decrease by approximately $600 million in the next 12 months. Positions that may be resolved include various U.S. and non-U.S. matters. |
Information about Segments and
Information about Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Information about Segments and Geographic Areas | Information about Segments and Geographic Areas We operate our business in multiple operating segments. Google is our only reportable segment. None of our other segments meet the quantitative thresholds to qualify as reportable segments; therefore, the other operating segments are combined and disclosed as Other Bets. Our reported segments are: • Google – Google includes our main products such as Ads, Android, Chrome, Google Cloud, Google Maps, Google Play, Hardware (including Nest), Search, and YouTube. Our technical infrastructure is also included in Google. Google generates revenues primarily from advertising; sales of apps, in-app purchases, digital content products, and hardware; and licensing and service fees, including fees received for Google Cloud offerings. • Other Bets – Other Bets is a combination of multiple operating segments that are not individually material. Other Bets includes businesses such as Access, Calico, CapitalG, GV, Verily, Waymo, and X. Revenues from the Other Bets are derived primarily through the sales of internet and TV services through Access as well as licensing and R&D services through Verily. Revenues, cost of revenues, and operating expenses are generally directly attributed to our segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. Our Chief Operating Decision Maker does not evaluate operating segments using asset information. In Q1 2018, Nest joined Google’s hardware team. Consequently, the financial results of Nest are reported in the Google segment, with Nest revenues reflected in Google other revenues. Prior period segment information has been recast to conform to the current period segment presentation. Consolidated financial results are not affected. Information about segments during the periods presented were as follows (in millions): Year Ended December 31, 2016 2017 2018 Revenues: Google $ 89,984 $ 110,378 $ 136,224 Other Bets 288 477 595 Total revenues $ 90,272 $ 110,855 $ 136,819 Year Ended December 31, 2016 2017 2018 Operating income (loss): Google $ 27,055 $ 32,287 $ 36,517 Other Bets (2,741 ) (2,734 ) (3,358 ) Reconciling items (1) (598 ) (3,407 ) (6,838 ) Total income from operations $ 23,716 $ 26,146 $ 26,321 (1) Reconciling items are primarily comprised of the European Commission fines for the years ended December 31, 2017 and 2018, and performance fees for the year ended December 31, 2018, as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments for all periods presented. Year Ended December 31, 2016 2017 2018 Capital expenditures: Google $ 9,437 $ 12,619 $ 25,460 Other Bets 1,365 493 181 Reconciling items (2) (590 ) 72 (502 ) Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 10,212 $ 13,184 $ 25,139 (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): Year Ended December 31, 2016 2017 2018 Stock-based compensation: Google $ 6,201 $ 7,168 $ 8,755 Other Bets 372 363 489 Reconciling items (3) 130 148 109 Total stock-based compensation (4) $ 6,703 $ 7,679 $ 9,353 Depreciation, amortization, and impairment: Google $ 5,882 $ 6,608 $ 8,708 Other Bets 258 307 327 Reconciling items (5) 4 — — Total depreciation, amortization, and impairment as presented on the Consolidated Statements of Cash Flows $ 6,144 $ 6,915 $ 9,035 (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 Long-lived assets: United States $ 55,113 $ 74,882 International 17,874 22,234 Total long-lived assets $ 72,987 $ 97,116 For revenues by geography, see Note 2 . |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts The table below details the activity of the allowance for doubtful accounts and sales credits for the years ended December 31, 2016 , 2017 and 2018 (in millions): Balance at Beginning of Year Additions Usage Balance at End of Year Year ended December 31, 2016 $ 296 $ 942 $ (771 ) $ 467 Year ended December 31, 2017 $ 467 $ 1,131 $ (924 ) $ 674 Year ended December 31, 2018 $ 674 $ 1,115 $ (1,060 ) $ 729 Note: Additions to the allowance for doubtful accounts are charged to expense. Additions to the allowance for sales credits are charged against revenues. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Google was incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. In 2015, we implemented a holding company reorganization, and as a result, Alphabet Inc. (Alphabet) became the successor issuer to Google. We generate revenues 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 entities consolidated under the variable interest and voting models. Noncontrolling interests are not presented separately as the amounts are not material. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates Preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the bad debt allowance, sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on assumptions, both historical and forward looking, that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Revenue Recognition and Cost of Revenues | Revenue Recognition We recognize revenues when we transfer control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. See Note 2 for further discussion on Revenues. Cost of Revenues Cost of revenues consists of TAC and other costs of revenues. TAC represents the amounts paid to Google Network Members primarily for ads displayed on their properties and amounts paid to our distribution partners who make available our search access points and services. Our distribution partners include browser providers, mobile carriers, original equipment manufacturers, and software developers. Other costs of revenues (which is the cost of revenues excluding TAC) include the following: • Content acquisition costs primarily related to payments to content providers from whom we license video and other content for distribution on YouTube and Google Play (we pay fees to these content providers based on revenues generated or a flat fee); • Expenses associated with our data centers and other operations (including bandwidth, compensation expense (including SBC), depreciation, energy, and other equipment costs); and • Inventory related costs for hardware we sell. 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 Search app, and other Google owned and operated properties like Gmail, Google Maps, Google Play, and YouTube. Google Network Members’ properties revenues consist primarily of advertising revenues generated on Google Network Members’ properties. Our customers generally purchase advertising inventory through Google Ads (formerly AdWords), Google Ad Manager as part of the Authorized Buyers marketplace (formerly DoubleClick AdExchange), and Google Marketing Platform (includes what was formerly DoubleClick Bid Manager), among others. We offer advertising on a cost-per-click basis, which means that an advertiser pays us only when a user clicks on an ad on Google properties or Google Network Members' properties or when a user views certain YouTube engagement ads. 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, 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. 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 revenues 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. Customer Incentives and Credits 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. 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 twelve months ended December 31, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.5 billion of revenues recognized that were included in the deferred revenue balance as of December 31, 2017 . 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. 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. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation primarily consists of Alphabet restricted stock units (RSUs). RSUs are equity classified and measured at the fair market value of the underlying stock at the grant date. We recognize RSU expense using the straight-line attribution method over the requisite service period and account for forfeitures as they occur. For RSUs, shares are issued on the vesting dates net of the applicable statutory tax withholding to be paid by us on behalf of our employees. As a result, fewer shares are issued than the number of RSUs outstanding. We record a liability for the tax withholding to be paid by us as a reduction to additional paid-in capital. Additionally, stock-based compensation includes other types of stock-based awards that may be settled in the stock of certain of our Other Bets or in cash. Awards that are liability classified are remeasured at fair value through settlement or maturity. The fair value of such awards is based on the valuation of equity of the respective Other Bet. |
Performance Fees | Performance Fees We have compensation arrangements with payouts based on realized investment returns. We recognize compensation expense based on the estimated payouts |
Certain Risks and Concentrations | Certain Risks and Concentrations Our revenues are primarily derived from online advertising, the market for which is highly competitive and rapidly changing. In addition, our revenues are generated from a multitude of vertical market segments in countries around the world. Significant changes in this industry or changes in customer buying or advertiser spending behavior could adversely affect our operating results. We are subject to concentrations of credit risk principally from cash and cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable. Cash equivalents and marketable securities consist primarily of time deposits, money market and other funds, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments, debt instruments issued by municipalities in the U.S., corporate debt securities, mortgage-backed securities, and asset-backed securities. Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts receivable are typically unsecured and are derived from revenues earned from customers located around the world. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend. We generally do not require collateral from our customers. We maintain reserves for estimated credit losses and these losses have generally been within our expectations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial assets and liabilities that are measured at fair value on a recurring basis include cash equivalents, marketable securities, derivative contracts, and non-marketable debt securities. Our financial assets that are measured at fair value on a nonrecurring basis include non-marketable equity securities measured at fair value when observable price changes are identified or when non-marketable equity securities are impaired . Other financial assets and liabilities are carried at cost with fair value disclosed, if required. 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 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 - Unobservable inputs that are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. |
Cash, Cash Equivalents, and Marketable Securities | Cash, Cash Equivalents, and Marketable Securities We invest all excess cash primarily in government bonds, corporate debt securities, mortgage-backed and asset-backed securities, time deposits, and money market funds. We classify all investments that are readily convertible to known amounts of cash and have stated maturities of three months or less from the date of purchase as cash equivalents and those with stated maturities of greater than three months as marketable securities. We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable debt securities as available-for-sale. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell these debt securities prior to their stated maturities. As we view these securities as available to support current operations, we classify highly liquid securities with maturities beyond 12 months as current assets under the caption marketable securities on the Consolidated Balance Sheets. We carry these securities at fair value, and report the unrealized gains and losses, net of taxes, as a component of stockholders’ equity, except for unrealized losses determined to be other-than-temporary, which we record within other income (expense), net. We determine any realized gains or losses on the sale of marketable debt securities on a specific identification method, and we record such gains and losses as a component of other income (expense), net. |
Non Marketable Investments | Non-Marketable Investments We account for non-marketable equity investments through which we exercise significant influence but do not have control over the investee under the equity method. Beginning on January 1, 2018, our non-marketable equity securities not accounted for under the equity method are either carried at fair value or under the measurement alternative upon the adoption of ASU 2016-01. Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Adjustments are determined primarily based on a market approach as of the transaction date. We classify our non-marketable investments as non-current assets on the Consolidated Balance Sheets as those investments do not have stated contractual maturity dates. We account for our non-marketable investments that meet the definition of a debt security as available-for-sale securities. |
Impairment of Investments | Impairment of Investments We periodically review our debt and equity investments for impairment. For debt securities we consider the duration, severity and the reason for the decline in security value; whether it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or if the amortized cost basis cannot be recovered as a result of credit losses. If any impairment is considered other-than-temporary, we will write down the security to its fair value and record the corresponding charge as other income (expense), net. For equity securities we consider impairment indicators such as negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. If indicators exist and the fair value of the security is below the carrying amount, we write down the security to fair value. |
Variable Interest Entities | Variable Interest Entities We determine at the inception of each arrangement whether an entity in which we have made an investment or in which we have other variable interests in is considered a variable interest entity (VIE). We consolidate VIEs when we are the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE; and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, we assess whether any changes in our interest or relationship with the entity affect our determination of whether the entity is still a VIE and, if so, whether we are the primary beneficiary. If we are not the primary beneficiary in a VIE, we account for the investment or other variable interests in a VIE in accordance with applicable GAAP. |
Accounts Receivable | Accounts Receivable We record accounts receivable at the invoiced amount. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review the accounts receivable by amounts due from customers that are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. |
Property and Equipment | Property and Equipment Property and equipment includes the following categories: land and buildings, information technology assets, construction in progress, leasehold improvements, and furniture and fixtures. Land and buildings include land, offices, data centers and related building improvements. Information technology assets include servers and network equipment. We account for property and equipment at cost less accumulated depreciation. We compute depreciation using the straight-line method over the estimated useful lives of the assets. We depreciate buildings over periods of seven to 25 years. We generally depreciate information technology assets over periods of three to five years (specifically, three years for servers and three to five years for network equipment). We depreciate leasehold improvements over the shorter of the remaining lease term or the estimated useful lives of the assets. Construction in progress is the construction or development of property and equipment that have not yet been placed in service for our intended use. Depreciation for equipment, buildings, and leasehold improvements commences once they are ready for our intended use. Land is not depreciated. |
Inventory | Inventory Inventory consists primarily of finished goods and is stated at the lower of cost and net realizable value. Cost is computed using the first-in, first-out method. |
Software Development Costs | Software Development Costs We expense software development costs, including costs to develop software products or the software component of products to be sold, leased, or marketed to external users, before technological feasibility is reached. Technological feasibility is typically reached shortly before the release of such products and as a result, development costs that meet the criteria for capitalization were not material for the periods presented. Software development costs also include costs to develop software to be used solely to meet internal needs and cloud based applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Costs capitalized for developing such software applications were not material for the periods presented. |
Business Combinations | Business Combinations We include the results of operations of the businesses that we acquire as of the acquisition date. We allocate the purchase price of the acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. |
Long-Lived Assets, Goodwill and Other Acquired Intangible Assets | Long-Lived Assets, Goodwill and Other Acquired Intangible Assets We review property and equipment, long-term prepayments and intangible assets, excluding goodwill, for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets are not recoverable, the impairment recognized is measured as the amount by which the carrying value of the asset exceeds its fair value. Impairments were not material for the periods presented. We allocate goodwill to reporting units based on the expected benefit from the business combination. We evaluate our reporting units when changes in our operating structure occur, and if necessary, reassign goodwill using a relative fair value allocation approach. We test our goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill impairments were not material for the periods presented. Intangible assets with definite lives are amortized over their estimated useful lives. We amortize intangible assets on a straight-line basis with definite lives over periods ranging from one to twelve years. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, under which we recognize the amount of taxes payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. We measure current and deferred tax assets and liabilities based on provisions of enacted tax law. We evaluate the realization of our deferred tax assets based on all available evidence and establish a valuation allowance to reduce deferred tax assets when it is more likely than not that they will not be realized. We recognize the financial statement effects of a tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination. The tax benefits of the position recognized in the financial statements are then measured based on the largest amount of benefit that is greater than 50% likely to be realized upon settlement with a taxing authority. In addition, we recognize interest and penalties related to unrecognized tax benefits as a component of the income tax provision. |
Foreign Currency | Foreign Currency Generally, the functional currency of our international subsidiaries is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average rates for the annual period derived from month-end exchange rates for revenues, costs, and expenses. We record translation gains and losses in accumulated other comprehensive income (AOCI) as a component of stockholders’ equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange losses in other income (expense), net. |
Advertising and Promotional Expenses | Advertising and Promotional Expenses We expense advertising and promotional costs in the period in which they are incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease 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. We will adopt Topic 842 effective January 1, 2019 using a modified retrospective method and will not restate comparative periods. As permitted under the transition guidance, we will carry forward the assessment of whether our contracts contain or are leases, classification of our leases and remaining lease terms. Based on our portfolio of leases as of December 31, 2018, approximately $9 billion of lease assets and liabilities will be recognized on our balance sheet upon adoption, primarily relating to real estate. We are substantially complete with our implementation efforts. 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 model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. We will adopt ASU 2016-13 effective January 1, 2020. We are currently evaluating the effect of the adoption of ASU 2016-13 on our consolidated financial statements. The effect will largely depend on the composition and credit quality of our investment portfolio and the economic conditions at the time of adoption. Recently adopted accounting pronouncements In January 2016, the FASB issued Accounting Standards Update No. 2016-01 (ASU 2016-01) "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which amends various aspects of the recognition, measurement, presentation, and disclosure of financial instruments. We adopted ASU 2016-01 as of January 1, 2018 using the modified retrospective method for our marketable equity securities and the prospective method for our non-marketable equity securities. This resulted in a $98 million reclassification of net unrealized gains from AOCI to opening retained earnings. We have elected to use the measurement alternative for our non-marketable equity securities, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. The adoption of ASU 2016-01 increases the volatility of our other income (expense), net, as a result of the unrealized gain or loss from the remeasurement of our equity securities. For further information on unrealized gains from equity securities, see Note 3 . 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. We adopted ASU 2016-16 as of January 1, 2018 using a modified retrospective transition method, resulting in a $701 million reclassification of prepaid income taxes related to asset transfers that occurred prior to adoption from other current and non-current assets to opening retained earnings. 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. The effect from the adoption of ASC 606 was not material to our financial statements. |
Prior Period Reclassifications | Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by revenue source | The following table presents our revenues disaggregated by revenue source (in millions). Sales and usage-based taxes are excluded from revenues. Year Ended December 31, 2016 (1) 2017 2018 Google properties $ 63,785 $ 77,788 $ 96,336 Google Network Members' properties 15,598 17,587 19,982 Google advertising revenues 79,383 95,375 116,318 Google other revenues 10,601 15,003 19,906 Other Bets revenues 288 477 595 Total revenues (2) $ 90,272 $ 110,855 $ 136,819 (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. (2) Revenues include hedging gains (losses) of $539 million , $(169) million , and $(138) million for the years ended December 31, 2016 , 2017 , and 2018 , respectively, which do not represent revenues recognized from contracts with customers. |
Schedule of revenue by geographic area | The following table presents our revenues disaggregated by geography, based on the addresses of our customers (in millions): Year Ended December 31, 2016 2017 2018 United States $ 42,781 47 % $ 52,449 47 % $ 63,269 46 % EMEA (1) 30,304 34 36,046 33 44,567 33 APAC (1) 12,559 14 16,235 15 21,374 15 Other Americas (1) 4,628 5 6,125 5 7,609 6 Total revenues (2) $ 90,272 100 % $ 110,855 100 % $ 136,819 100 % (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas). (2) Revenues include hedging gains (losses) for the years ended December 31, 2016 , 2017 , and 2018 . |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale debt securities | The following tables summarize our debt securities by significant investment categories as of December 31, 2017 and 2018 (in millions): As of December 31, 2017 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Marketable Non-Marketable Level 2: Time deposits (1) $ 359 $ 0 $ 0 $ 359 $ 357 $ 2 $ 0 Government bonds (2) 51,548 10 (406 ) 51,152 1,241 49,911 0 Corporate debt securities 24,269 21 (135 ) 24,155 126 24,029 0 Mortgage-backed and asset-backed securities 16,789 13 (180 ) 16,622 0 16,622 0 92,965 44 (721 ) 92,288 1,724 90,564 0 Level 3: Non-marketable debt securities 1,083 811 0 1,894 0 0 1,894 Total $ 94,048 $ 855 $ (721 ) $ 94,182 $ 1,724 $ 90,564 $ 1,894 As of December 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Non-Marketable Level 2: Time deposits (1) $ 2,202 $ 0 $ 0 $ 2,202 $ 2,202 $ 0 $ 0 Government bonds (2) 53,634 71 (414 ) 53,291 3,717 49,574 0 Corporate debt securities 25,383 15 (316 ) 25,082 44 25,038 0 Mortgage-backed and asset-backed securities 16,918 11 (324 ) 16,605 0 16,605 0 98,137 97 (1,054 ) 97,180 5,963 91,217 0 Level 3: Non-marketable debt securities 147 116 0 263 0 0 263 Total $ 98,284 $ 213 $ (1,054 ) $ 97,443 $ 5,963 $ 91,217 $ 263 (1) As of December 31, 2017, the majority of our time deposits were foreign deposits. As of December 31, 2018, the majority of our time deposits are domestic deposits. (2) Government bonds are comprised primarily of U.S. government notes, and also includes U.S. government agencies, foreign government bonds, and municipal securities. |
Investments by maturity date | The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): As of Due in 1 year $ 23,669 Due in 1 year through 5 years 54,504 Due in 5 years through 10 years 2,236 Due after 10 years 10,808 Total $ 91,217 |
Schedule of unrealized loss on debt securities | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2017 and 2018 , 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, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds (1) $ 28,836 $ (211 ) $ 17,660 $ (195 ) $ 46,496 $ (406 ) Corporate debt securities 18,300 (114 ) 1,710 (21 ) 20,010 (135 ) Mortgage-backed and asset-backed securities 11,061 (105 ) 3,449 (75 ) 14,510 (180 ) Total $ 58,197 $ (430 ) $ 22,819 $ (291 ) $ 81,016 $ (721 ) As of December 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Government bonds (1) $ 12,019 $ (85 ) $ 23,877 $ (329 ) $ 35,896 $ (414 ) Corporate debt securities 10,171 (107 ) 11,545 (209 ) 21,716 (316 ) Mortgage-backed and asset-backed securities 5,534 (75 ) 8,519 (249 ) 14,053 (324 ) Total $ 27,724 $ (267 ) $ 43,941 $ (787 ) $ 71,665 $ (1,054 ) (1) Government bonds are comprised primarily of U.S. government notes, and also includes U.S. government agencies, foreign government bonds, and municipal securities. |
Non-marketable debt securities | 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): Year Ended December 31, 2017 2018 Beginning balance $ 1,165 $ 1,894 Total net gains (losses) Included in earnings (10 ) 603 Included in other comprehensive income 707 (1 ) Purchases 88 47 Sales (2 ) (52 ) Settlements (1) (54 ) (2,228 ) Ending balance $ 1,894 $ 263 (1) During the year ended December 31, 2018 the terms of a non-marketable debt security were modified resulting in an unrealized $1.3 billion gain recognized in other income (expense), net and a reclassification of the security to non-marketable equity securities. |
Marketable equity securities | The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2017 and 2018 (in millions): As of December 31, 2017 Cash and Cash Equivalents Marketable Level 1: Money market funds $ 1,833 $ 0 Marketable equity securities 0 340 1,833 340 Level 2: Mutual funds (1) 0 252 Total $ 1,833 $ 592 (1) The fair value option was elected for mutual funds with gains (losses) recognized in other income (expense), net. As of December 31, 2018 Cash and Cash Equivalents Marketable Level 1: Money market funds $ 3,493 $ 0 Marketable equity securities 0 994 3,493 994 Level 2: Mutual funds 0 228 Total $ 3,493 $ 1,222 |
Summary of unrealized gains and losses for non-marketable equity securities | The following is a summary of unrealized gains and losses recorded in other income (expense), net, and included as adjustments to the carrying value of non-marketable equity securities held as of December 31, 2018 (in millions): Twelve Months Ended December 31, 2018 Upward adjustments $ 4,285 Downward adjustments (including impairment) (178 ) Total unrealized gain (loss) for non-marketable equity securities $ 4,107 The following table summarizes the total carrying value of our non-marketable equity securities held as of December 31, 2018 including cumulative unrealized upward and downward adjustments made to the initial cost basis of the securities (in millions): Initial cost basis (1) $ 8,168 Upward adjustments 4,285 Downward adjustments (including impairment) (178 ) Total carrying value at the end of the period $ 12,275 (1) Includes $2.2 billion for a non-marketable equity security reclassified from a non-marketable debt security during 2018. |
Gains and losses on equity securities | Realized and unrealized gains and losses for our marketable and non-marketable equity securities for the year ended December 31, 2018 are summarized below (in millions): Twelve Months Ended December 31, 2018 Realized gain (loss) for equity securities sold during the period $ 1,458 Unrealized gain (loss) on equity securities held as of the end of the period (1) 4,002 Total gain (loss) recognized in other income (expense), net $ 5,460 (1) Includes $4,107 million related to non-marketable equity securities for the year ended December 31, 2018 . |
Schedule of derivative instruments | The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2017 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 51 $ 29 $ 80 Total $ 51 $ 29 $ 80 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 230 $ 122 $ 352 Total $ 230 $ 122 $ 352 As of December 31, 2018 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 459 $ 54 $ 513 Total $ 459 $ 54 $ 513 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 5 $ 228 $ 233 Total $ 5 $ 228 $ 233 |
Schedule of gain (loss) on derivative instruments | The gains (losses) on derivatives in cash flow hedging and net investment hedging relationships recognized in other comprehensive income (OCI) are summarized below (in millions): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Year Ended December 31, 2016 2017 2018 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ 773 $ (955 ) $ 332 Amount excluded from the assessment of effectiveness 0 0 26 Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 0 0 136 Total $ 773 $ (955 ) $ 494 The effect of derivative instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income Year Ended December 31, 2016 2017 2018 Revenues Other income (expense), net Revenues Other income (expense), net Revenues Other income (expense), net Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow and fair value hedges are recorded $ 90,272 $ 434 $ 110,855 $ 1,047 $ 136,819 $ 8,592 Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ 539 $ 0 $ (169 ) $ 0 $ (139 ) $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 0 0 0 0 1 0 Amount excluded from the assessment of effectiveness 0 (381 ) 0 83 0 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 (139 ) 0 197 0 (96 ) Derivatives designated as hedging instruments 0 139 0 (197 ) 0 96 Amount excluded from the assessment of effectiveness 0 6 0 23 0 37 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 0 0 0 0 78 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Derivatives not designated as hedging instruments 0 130 0 (230 ) 0 54 Total gains (losses) $ 539 $ (245 ) $ (169 ) $ (124 ) $ (138 ) $ 169 |
Offsetting assets | As of December 31, 2017 and 2018 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets As of December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 102 $ (22 ) $ 80 $ (64 ) (1) $ (4 ) $ (2 ) $ 10 As of December 31, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Non-Cash Collateral Received Net Assets Exposed Derivatives $ 569 $ (56 ) $ 513 $ (90 ) (1) $ (307 ) $ (14 ) $ 102 (1) The balances as of December 31, 2017 and 2018 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, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 374 $ (22 ) $ 352 $ (64 ) (2) $ 0 $ 0 $ 288 As of December 31, 2018 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Non-Cash Collateral Pledged Net Liabilities Derivatives $ 289 $ (56 ) $ 233 $ (90 ) (2) $ 0 $ 0 $ 143 (2) The balances as of December 31, 2017 and 2018 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt instruments | The total outstanding long-term debt is summarized below (in millions): As of As of 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 (57 ) (50 ) Subtotal (1) 3,943 3,950 Capital lease obligation 26 62 Total long-term debt $ 3,969 $ 4,012 (1) Includes the outstanding (and unexchanged) Google Notes issued in 2011 and 2014 and the Alphabet notes exchanged in 2016. |
Schedule of debt maturities | As of December 31, 2018 , the aggregate future principal payments for long-term debt including long-term capital leases for each of the next five years and thereafter are as follows (in millions): 2019 $ 0 2020 14 2021 1,003 2022 3 2023 3 Thereafter 3,039 Total $ 4,062 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Components Disclosure [Abstract] | |
Schedule of property and equipment | Property and equipment, net, consisted of the following (in millions): As of As of Land and buildings $ 23,183 $ 30,179 Information technology assets 21,429 30,119 Construction in progress 10,491 16,838 Leasehold improvements 4,496 5,310 Furniture and fixtures 48 61 Property and equipment, gross 59,647 82,507 Less: accumulated depreciation (17,264 ) (22,788 ) Property and equipment, net $ 42,383 $ 59,719 |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following (in millions): As of As of European Commission fines (1) $ 2,874 $ 7,754 Accrued customer liabilities 1,489 1,810 Other accrued expenses and current liabilities 5,814 7,394 Accrued expenses and other current liabilities $ 10,177 $ 16,958 (1) Includes the effects of foreign exchange and interest. See Note 9 for further details |
Components of accumulated other comprehensive income | The components of AOCI, net of tax, were as follows (in millions): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2015 $ (2,047 ) $ (86 ) $ 259 $ (1,874 ) Other comprehensive income (loss) before reclassifications (599 ) (314 ) 515 (398 ) Amounts reclassified from AOCI 0 221 (351 ) (130 ) Other comprehensive income (loss) (599 ) (93 ) 164 (528 ) Balance as of December 31, 2016 $ (2,646 ) $ (179 ) $ 423 $ (2,402 ) Other comprehensive income (loss) before reclassifications 1,543 307 (638 ) 1,212 Amounts reclassified from AOCI 0 105 93 198 Other comprehensive income (loss) 1,543 412 (545 ) 1,410 Balance as of December 31, 2017 $ (1,103 ) $ 233 $ (122 ) $ (992 ) Other comprehensive income (loss) before reclassifications (1) (781 ) (10 ) 264 (527 ) Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 26 26 Amounts reclassified from AOCI 0 (911 ) 98 (813 ) Other comprehensive income (loss) (781 ) (921 ) 388 (1,314 ) Balance as of December 31, 2018 $ (1,884 ) $ (688 ) $ 266 $ (2,306 ) (1) The change in unrealized gains (losses) on available-for-sale investments included a $98 million adjustment of net unrealized gains related to marketable equity securities from AOCI to opening retained earnings as a result of the adoption of ASU 2016-01 on January 1, 2018. |
Schedule of effects on net income of amounts reclassified from accumulated OCI | The effects on net income of amounts reclassified from AOCI were as follows (in millions): Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income Year Ended December 31, AOCI Components Location 2016 2017 2018 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (221 ) $ (105 ) $ 1,190 Provision for income taxes 0 0 (279 ) Net of tax $ (221 ) $ (105 ) $ 911 Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue $ 539 $ (169 ) $ (139 ) Interest rate contracts Other income (expense), net 5 5 6 Benefit (provision) for income taxes (193 ) 71 35 Net of tax $ 351 $ (93 ) $ (98 ) Total amount reclassified, net of tax $ 130 $ (198 ) $ 813 |
Schedule of other income (expense), net | The components of other income (expense), net, were as follows (in millions): Year Ended December 31, 2016 2017 2018 Interest income $ 1,220 $ 1,312 $ 1,878 Interest expense (1) (124 ) (109 ) (114 ) Foreign currency exchange losses, net (2) (475 ) (121 ) (80 ) Gain (loss) on debt securities, net (3) (53 ) (110 ) 1,190 Gain (loss) on equity securities, net (20 ) 73 5,460 Loss and impairment from equity method investments, net (202 ) (156 ) (120 ) Other 88 158 378 Other income (expense), net $ 434 $ 1,047 $ 8,592 (1) Interest expense is net of interest capitalized of $0 million , $48 million , and $92 million for the years ended December 31, 2016 , 2017 , and 2018 , respectively. (2) Our foreign currency exchange losses, net, are related to the option premium costs and forwards points for our foreign currency hedging contracts, our foreign exchange transaction gains and losses from the conversion of the transaction currency to the functional currency, offset by the foreign currency hedging contract losses and gains. The net foreign currency transaction losses were $112 million , $226 million , and $195 million for the years ended December 31, 2016 , 2017 , and 2018 , respectively. (3) During the year ended December 31, 2018, the terms of a non-marketable debt security were modified resulting in an unrealized $1.3 billion gain. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2018 were as follows (in millions): Google Other Bets Total Consolidated Balance as of December 31, 2016 $ 16,027 $ 441 $ 16,468 Acquisitions 212 9 221 Foreign currency translation and other adjustments 56 2 58 Balance as of December 31, 2017 16,295 452 16,747 Acquisitions 1,227 0 1,227 Transfers 80 (80 ) 0 Foreign currency translation and other adjustments (81 ) (5 ) (86 ) Balance as of December 31, 2018 $ 17,521 $ 367 $ 17,888 |
Schedule of finite-lived intangible assets | Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and developed technology $ 5,260 $ 3,040 $ 2,220 Customer relationships 359 263 96 Trade names and other 544 168 376 Total $ 6,163 $ 3,471 $ 2,692 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 5,125 $ 3,394 $ 1,731 Customer relationships 349 308 41 Trade names and other 703 255 448 Total $ 6,177 $ 3,957 $ 2,220 |
Schedule of future amortization expense | As of December 31, 2018 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows (in millions): 2019 $ 712 2020 585 2021 533 2022 201 2023 7 Thereafter 182 $ 2,220 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments | As of December 31, 2018 , future minimum payments under operating leases having initial or remaining non-cancelable lease terms in excess of one year, net of sublease income amounts, were as follows (in millions): Operating Leases (1) Sub-lease Income Net Operating Leases 2019 $ 1,319 $ 16 $ 1,303 2020 1,397 13 1,384 2021 1,337 10 1,327 2022 1,153 8 1,145 2023 980 3 977 Thereafter 3,916 5 3,911 Total minimum payments $ 10,102 $ 55 $ 10,047 (1) Includes future minimum payments for leases which have not yet commenced. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following tables set forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): Year Ended December 31, 2016 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 8,332 $ 1,384 $ 9,762 Denominator Number of shares used in per share computation 294,217 48,859 344,702 Basic net income per share $ 28.32 $ 28.32 $ 28.32 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 8,332 $ 1,384 $ 9,762 Effect of dilutive securities in equity method investments and subsidiaries (9 ) (2 ) (10 ) Allocation of undistributed earnings for diluted computation 8,323 1,382 9,752 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 1,382 0 0 Reallocation of undistributed earnings (94 ) (21 ) 94 Allocation of undistributed earnings $ 9,611 $ 1,361 $ 9,846 Denominator Number of shares used in basic computation 294,217 48,859 344,702 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 48,859 0 0 Restricted stock units and other contingently issuable shares 2,055 0 8,873 Number of shares used in per share computation 345,131 48,859 353,575 Diluted net income per share $ 27.85 $ 27.85 $ 27.85 Year Ended December 31, 2017 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 5,438 $ 862 $ 6,362 Denominator Number of shares used in per share computation 297,604 47,146 348,151 Basic net income per share $ 18.27 $ 18.27 $ 18.27 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 5,438 $ 862 $ 6,362 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 862 0 0 Reallocation of undistributed earnings (74 ) (14 ) 74 Allocation of undistributed earnings $ 6,226 $ 848 $ 6,436 Denominator Number of shares used in basic computation 297,604 47,146 348,151 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 47,146 0 0 Restricted stock units and other contingently issuable shares 1,192 0 9,491 Number of shares used in per share computation 345,942 47,146 357,642 Diluted net income per share $ 18.00 $ 18.00 $ 18.00 Year Ended December 31, 2018 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 13,200 $ 2,072 $ 15,464 Denominator Number of shares used in per share computation 298,548 46,864 349,728 Basic net income per share $ 44.22 $ 44.22 $ 44.22 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 13,200 $ 2,072 $ 15,464 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 2,072 0 0 Reallocation of undistributed earnings (146 ) (24 ) 146 Allocation of undistributed earnings $ 15,126 $ 2,048 $ 15,610 Denominator Number of shares used in basic computation 298,548 46,864 349,728 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 46,864 0 0 Restricted stock units and other contingently issuable shares 689 0 7,456 Number of shares used in per share computation 346,101 46,864 357,184 Diluted net income per share $ 43.70 $ 43.70 $ 43.70 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of restricted stock activity | The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2018 : Unvested Restricted Stock Units Number of Shares Weighted- Average Grant-Date Fair Value Unvested as of December 31, 2017 20,077,346 $ 712.45 Granted 12,669,251 $ 1,095.89 Vested (12,847,910 ) $ 756.45 Forfeited/canceled (1,431,009 ) $ 814.19 Unvested as of December 31, 2018 18,467,678 $ 936.96 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The provision for income taxes consists of the following (in millions): Year Ended December 31, 2016 2017 2018 Current: Federal and state $ 3,826 $ 12,608 $ 2,153 Foreign 966 1,746 1,251 Total 4,792 14,354 3,404 Deferred: Federal and state (70 ) 220 907 Foreign (50 ) (43 ) (134 ) Total (120 ) 177 773 Provision for income taxes $ 4,672 $ 14,531 $ 4,177 |
Schedule of effective income tax rate reconciliation | The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, 2016 2017 2018 U.S. federal statutory tax rate 35.0 % 35.0 % 21.0 % Foreign income taxed at different rates (11.0 ) (14.2 ) (4.9 ) Effect of the Tax Act One-time transition tax 0.0 37.6 (0.1 ) Deferred tax effects 0.0 (1.4 ) (1.2 ) Federal research credit (2.0 ) (1.8 ) (2.4 ) Stock-based compensation expense (3.4 ) (4.5 ) (2.2 ) European Commission fine 0.0 3.5 3.1 Deferred tax asset valuation allowance 0.1 0.9 (2.0 ) Other adjustments 0.6 (1.7 ) 0.7 Effective tax rate 19.3 % 53.4 % 12.0 % |
Schedule of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities are as follows (in millions): As of December 31, 2017 2018 Deferred tax assets: Stock-based compensation expense $ 251 $ 291 Accrued employee benefits 285 387 Accruals and reserves not currently deductible 717 1,062 Tax credits 1,187 1,979 Basis difference in investment in Arris 849 657 Prepaid cost sharing 498 597 Net operating losses 320 557 Other 244 251 Total deferred tax assets 4,351 5,781 Valuation allowance (2,531 ) (2,817 ) Total deferred tax assets net of valuation allowance 1,820 2,964 Deferred tax liabilities: Property and equipment (551 ) (1,382 ) Identified intangibles (419 ) (229 ) Renewable energy investments (531 ) (500 ) Investment gains/losses (22 ) (1,143 ) Other (47 ) (237 ) Total deferred tax liabilities (1,570 ) (3,491 ) Net deferred tax assets (liabilities) $ 250 $ (527 ) |
Summary of income tax contingencies | The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2016 to December 31, 2018 (in millions): 2016 2017 2018 Beginning gross unrecognized tax benefits $ 4,167 $ 5,393 $ 4,696 Increases related to prior year tax positions 899 685 321 Decreases related to prior year tax positions (157 ) (257 ) (623 ) Decreases related to settlement with tax authorities (196 ) (1,875 ) (191 ) Increases related to current year tax positions 680 750 449 Ending gross unrecognized tax benefits $ 5,393 $ 4,696 $ 4,652 |
Information about Segments an_2
Information about Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment information by segment | Information about segments during the periods presented were as follows (in millions): Year Ended December 31, 2016 2017 2018 Revenues: Google $ 89,984 $ 110,378 $ 136,224 Other Bets 288 477 595 Total revenues $ 90,272 $ 110,855 $ 136,819 Year Ended December 31, 2016 2017 2018 Operating income (loss): Google $ 27,055 $ 32,287 $ 36,517 Other Bets (2,741 ) (2,734 ) (3,358 ) Reconciling items (1) (598 ) (3,407 ) (6,838 ) Total income from operations $ 23,716 $ 26,146 $ 26,321 (1) Reconciling items are primarily comprised of the European Commission fines for the years ended December 31, 2017 and 2018, and performance fees for the year ended December 31, 2018, as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments for all periods presented. Year Ended December 31, 2016 2017 2018 Capital expenditures: Google $ 9,437 $ 12,619 $ 25,460 Other Bets 1,365 493 181 Reconciling items (2) (590 ) 72 (502 ) Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 10,212 $ 13,184 $ 25,139 (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): Year Ended December 31, 2016 2017 2018 Stock-based compensation: Google $ 6,201 $ 7,168 $ 8,755 Other Bets 372 363 489 Reconciling items (3) 130 148 109 Total stock-based compensation (4) $ 6,703 $ 7,679 $ 9,353 Depreciation, amortization, and impairment: Google $ 5,882 $ 6,608 $ 8,708 Other Bets 258 307 327 Reconciling items (5) 4 — — Total depreciation, amortization, and impairment as presented on the Consolidated Statements of Cash Flows $ 6,144 $ 6,915 $ 9,035 (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 Long-lived assets: United States $ 55,113 $ 74,882 International 17,874 22,234 Total long-lived assets $ 72,987 $ 97,116 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2015 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | |||
Advertising and promotional expenses | 6,400 | 5,100 | 3,900 | |||
Cumulative effect of accounting change | (697) | (15) | $ 47 | |||
Reclassification of unrecognized income tax effects | $ 134,885 | 113,247 | ||||
Retained Earnings | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of accounting change | $ (599) | $ (15) | $ (133) | |||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Cumulative effect of accounting change | $ 98 | |||||
Accounting Standards Update 2016-16 | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Reclassification of unrecognized income tax effects | $ 701 | |||||
Minimum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, estimated useful lives | 1 year | |||||
Maximum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Intangible assets, estimated useful lives | 12 years | |||||
Building | Minimum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives, up to | 7 years | |||||
Building | Maximum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives, up to | 25 years | |||||
Information technology assets | Minimum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives, up to | 3 years | |||||
Information technology assets | Maximum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives, up to | 5 years | |||||
Server Equipment | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives, up to | 3 years | |||||
Network Equipment | Minimum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives, up to | 3 years | |||||
Network Equipment | Maximum | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and equipment, estimated useful lives, up to | 5 years | |||||
Scenario, Forecast | Accounting Standards Update 2016-02 | ||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||
Lease assets | $ 9,000 | |||||
Lease liability | $ 9,000 |
Revenues (Revenue by Segment) (
Revenues (Revenue by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 136,819 | $ 110,855 | $ 90,272 |
Revenues | |||
Segment Reporting Information [Line Items] | |||
Hedging gains (losses) included in consolidated revenue | (138) | (169) | 539 |
Segment Reporting Information [Line Items] | |||
Revenues | 136,224 | 110,378 | 89,984 |
Google | Google properties | |||
Segment Reporting Information [Line Items] | |||
Revenues | 96,336 | 77,788 | 63,785 |
Google | Google Network Members' properties | |||
Segment Reporting Information [Line Items] | |||
Revenues | 19,982 | 17,587 | 15,598 |
Google | Advertising revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 116,318 | 95,375 | 79,383 |
Google | Other Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 19,906 | 15,003 | 10,601 |
Other Bets | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 595 | $ 477 | $ 288 |
Revenues (Revenue by Geographic
Revenues (Revenue by Geographic Location) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 136,819 | $ 110,855 | $ 90,272 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 63,269 | 52,449 | 42,781 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 44,567 | 36,046 | 30,304 |
APAC | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 21,374 | 16,235 | 12,559 |
Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 7,609 | $ 6,125 | $ 4,628 |
Geographic Area | Revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 100.00% | 100.00% | 100.00% |
Geographic Area | Revenue | United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 46.00% | 47.00% | 47.00% |
Geographic Area | Revenue | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 33.00% | 33.00% | 34.00% |
Geographic Area | Revenue | APAC | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 15.00% | 15.00% | 14.00% |
Geographic Area | Revenue | Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 6.00% | 5.00% | 5.00% |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenues recognized | $ 1.5 |
Financial Instruments (Debt Sec
Financial Instruments (Debt Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | $ 98,284 | $ 94,048 |
Gross Unrealized Gains | 213 | 855 |
Gross Unrealized Losses | (1,054) | (721) |
Fair Value | 97,443 | 94,182 |
Cash and Cash Equivalents | 3,493 | 1,833 |
Marketable Securities | 91,217 | |
Marketable Securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Marketable Securities | 91,217 | 90,564 |
Non-marketable debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Non-Marketable Securities | 263 | 1,894 |
Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Cash and Cash Equivalents | 5,963 | 1,724 |
Level 2 | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 98,137 | 92,965 |
Gross Unrealized Gains | 97 | 44 |
Gross Unrealized Losses | (1,054) | (721) |
Fair Value | 97,180 | 92,288 |
Cash and Cash Equivalents | 5,963 | 1,724 |
Marketable Securities | 91,217 | 90,564 |
Level 2 | Time deposits | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 2,202 | 359 |
Fair Value | 2,202 | 359 |
Cash and Cash Equivalents | 2,202 | 357 |
Marketable Securities | 0 | 2 |
Level 2 | Government bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 53,634 | 51,548 |
Gross Unrealized Gains | 71 | 10 |
Gross Unrealized Losses | (414) | (406) |
Fair Value | 53,291 | 51,152 |
Cash and Cash Equivalents | 3,717 | 1,241 |
Marketable Securities | 49,574 | 49,911 |
Level 2 | Corporate debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 25,383 | 24,269 |
Gross Unrealized Gains | 15 | 21 |
Gross Unrealized Losses | (316) | (135) |
Fair Value | 25,082 | 24,155 |
Cash and Cash Equivalents | 44 | 126 |
Marketable Securities | 25,038 | 24,029 |
Level 2 | Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 16,918 | 16,789 |
Gross Unrealized Gains | 11 | 13 |
Gross Unrealized Losses | (324) | (180) |
Fair Value | 16,605 | 16,622 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 16,605 | 16,622 |
Level 3 | Non-marketable debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 147 | 1,083 |
Gross Unrealized Gains | 116 | 811 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 263 | 1,894 |
Non-Marketable Securities | $ 263 | $ 1,894 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | |
Financial Instruments and Fair Value [Line Items] | |||||
Gross realized gains on the sale of our marketable securities | $ 1,300 | $ 185 | $ 251 | ||
Gross realized losses on the sale of our marketable securities | 143 | 295 | 304 | ||
Other-than-temporary impairment losses recognized | 0 | 0 | $ 0 | ||
Cumulative effect of accounting change | (697) | (15) | 47 | ||
Cost method investment, carrying value | 4,500 | ||||
Cost method investment, fair value | 8,800 | ||||
Fair value of non-marketable equity securities | 12,275 | ||||
Unrealized gain on equity securities | (4,285) | ||||
Net unrealized gain on non-marketable equity securities | 4,107 | ||||
Equity method investments | 1,300 | 1,400 | |||
Cash collateral received from derivative financial instruments | 327 | 15 | |||
Effective portion of our cash flow hedges before tax effect | 247 | ||||
Foreign currency gain (loss) to be reclassified during next 12 months | 247 | ||||
Cash Flow Hedging Relationship | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | $ 11,800 | 11,700 | |||
Foreign exchange option contracts, maximum maturities | 24 months | ||||
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | $ 2,000 | 2,900 | |||
Net Investment Hedges | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | 6,700 | ||||
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Notional amount of derivative | 20,100 | 15,200 | |||
Accumulated other comprehensive income (loss) | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Cumulative effect of accounting change | (98) | 0 | |||
Retained Earnings | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Cumulative effect of accounting change | $ (599) | $ (15) | $ (133) | ||
Retained Earnings | Accounting Standards Update 2016-01 | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Cumulative effect of accounting change | $ 98 | ||||
Valuation, Market Approach | |||||
Financial Instruments and Fair Value [Line Items] | |||||
Fair value of non-marketable equity securities | 6,900 | ||||
Unrealized gain on equity securities | $ 4,100 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Due in 1 year | $ 23,669 |
Due in 1 year through 5 years | 54,504 |
Due in 5 years through 10 years | 2,236 |
Due after 10 years | 10,808 |
Total | $ 91,217 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 27,724 | $ 58,197 |
Less than 12 Months, Unrealized Loss | (267) | (430) |
12 Months or Greater, Fair Value | 43,941 | 22,819 |
12 Months or Greater, Unrealized Loss | (787) | (291) |
Total Fair Value | 71,665 | 81,016 |
Total Unrealized Loss | (1,054) | (721) |
Government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 12,019 | 28,836 |
Less than 12 Months, Unrealized Loss | (85) | (211) |
12 Months or Greater, Fair Value | 23,877 | 17,660 |
12 Months or Greater, Unrealized Loss | (329) | (195) |
Total Fair Value | 35,896 | 46,496 |
Total Unrealized Loss | (414) | (406) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 10,171 | 18,300 |
Less than 12 Months, Unrealized Loss | (107) | (114) |
12 Months or Greater, Fair Value | 11,545 | 1,710 |
12 Months or Greater, Unrealized Loss | (209) | (21) |
Total Fair Value | 21,716 | 20,010 |
Total Unrealized Loss | (316) | (135) |
Mortgage-backed and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 5,534 | 11,061 |
Less than 12 Months, Unrealized Loss | (75) | (105) |
12 Months or Greater, Fair Value | 8,519 | 3,449 |
12 Months or Greater, Unrealized Loss | (249) | (75) |
Total Fair Value | 14,053 | 14,510 |
Total Unrealized Loss | $ (324) | $ (180) |
Financial Instruments (Non-Mark
Financial Instruments (Non-Marketable Debt Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Total net gains (losses) | ||
Unrealized gain on reclassification of securities | $ 1,300 | |
Level 3 | Non-Marketable Debt Securities | ||
Other Investments Not Readily Marketable | ||
Beginning balance | 1,894 | $ 1,165 |
Total net gains (losses) | ||
Included in earnings | 603 | (10) |
Included in other comprehensive income | (1) | 707 |
Purchases | 47 | 88 |
Sales | (52) | (2) |
Settlements | (2,228) | (54) |
Ending balance | $ 263 | $ 1,894 |
Financial Instruments (Marketab
Financial Instruments (Marketable Equity Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 3,493 | $ 1,833 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 3,493 | 1,833 |
Marketable Securities | 994 | 340 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 5,963 | 1,724 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 3,493 | 1,833 |
Marketable Securities | 0 | 0 |
Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 1,222 | 592 |
Marketable equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | 994 | 340 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | $ 228 | $ 252 |
Financial Instruments (Measurem
Financial Instruments (Measurement Alternative Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Adjustments to Carrying Value of Non-Marketable Equity Securities | |||
Upward adjustments | $ 4,285 | ||
Downward adjustments (including impairment) | (178) | ||
Total unrealized gain (loss) for non-marketable equity securities | 4,107 | ||
Initial cost basis | 8,168 | ||
Upward adjustments | 4,285 | ||
Downward adjustments (including impairment) | (178) | ||
Total carrying value at the end of the period | 12,275 | ||
Equity Securities, FV-NI, Gain (Loss), Alternative [Abstract] | |||
Realized gain (loss) for equity securities sold during the period | 1,458 | ||
Unrealized gain (loss) on equity securities held as of the end of the period(1) | 4,002 | ||
Total gain (loss) recognized in other income (expense), net | 5,460 | $ 73 | $ (20) |
Equity Securities, Origination Upon Extinguishment of Debt Securities | |||
Adjustments to Carrying Value of Non-Marketable Equity Securities | |||
Initial cost basis | $ 2,200 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Assets: | ||
Derivative Assets | $ 569 | $ 102 |
Derivative Liabilities: | ||
Derivative Liabilities | 289 | 374 |
Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 513 | 80 |
Derivative Liabilities: | ||
Derivative Liabilities | 233 | 352 |
Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 513 | 80 |
Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 233 | 352 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 459 | 51 |
Derivative Liabilities: | ||
Derivative Liabilities | 5 | 230 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 459 | 51 |
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 | 5 | 230 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 54 | 29 |
Derivative Liabilities: | ||
Derivative Liabilities | 228 | 122 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 54 | 29 |
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 | $ 228 | $ 122 |
Financial Instruments (Effect o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives in Net Investment Hedging Relationship: | |||
Revenues | $ 136,819 | $ 110,855 | $ 90,272 |
Other income (expense), net | 8,592 | 1,047 | 434 |
Revenues | |||
Foreign exchange contracts | |||
Total gains (losses) | (138) | (169) | 539 |
Other income (expense), net | |||
Foreign exchange contracts | |||
Total gains (losses) | 169 | (124) | (245) |
Foreign exchange contracts | |||
Derivatives in Net Investment Hedging Relationship: | |||
Total | 494 | (955) | 773 |
Foreign exchange contracts | Derivatives in Cash Flow Hedging Relationship | |||
Derivatives in Cash Flow Hedging Relationship | |||
Amount included in the assessment of effectiveness | 332 | (955) | 773 |
Amount excluded from the assessment of effectiveness | 26 | 0 | 0 |
Foreign exchange contracts | Derivatives in Cash Flow Hedging Relationship | Revenues | |||
Foreign exchange contracts | |||
Amount of gains (losses) reclassified from AOCI to income | (139) | (169) | 539 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 1 | 0 | 0 |
Amount excluded from the assessment of effectiveness | 0 | 0 | 0 |
Foreign exchange contracts | Derivatives in Cash Flow Hedging Relationship | Other income (expense), net | |||
Foreign exchange contracts | |||
Amount of gains (losses) reclassified from AOCI to income | 0 | 0 | 0 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 0 | 0 | 0 |
Amount excluded from the assessment of effectiveness | 0 | 83 | (381) |
Foreign exchange contracts | Derivatives in Net Investment Hedging Relationship: | |||
Derivatives in Net Investment Hedging Relationship: | |||
Amount included in the assessment of effectiveness | 136 | 0 | 0 |
Foreign exchange contracts | Derivatives in Net Investment Hedging Relationship: | Revenues | |||
Net Investment Hedge, Foreign Exchange Contracts [Abstract] | |||
Amount excluded from the assessment of effectiveness | 0 | 0 | 0 |
Foreign exchange contracts | Derivatives in Net Investment Hedging Relationship: | Other income (expense), net | |||
Net Investment Hedge, Foreign Exchange Contracts [Abstract] | |||
Amount excluded from the assessment of effectiveness | 78 | 0 | 0 |
Foreign exchange contracts | Derivatives in Fair Value Hedging Relationship | Revenues | |||
Foreign exchange contracts | |||
Hedged items | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 |
Amount excluded from the assessment of effectiveness | 0 | 0 | 0 |
Foreign exchange contracts | Derivatives in Fair Value Hedging Relationship | Other income (expense), net | |||
Foreign exchange contracts | |||
Hedged items | (96) | 197 | (139) |
Derivatives designated as hedging instruments | 96 | (197) | 139 |
Amount excluded from the assessment of effectiveness | 37 | 23 | 6 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Revenues | |||
Foreign exchange contracts | |||
Derivatives not designated as hedging instruments | 0 | 0 | 0 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Other income (expense), net | |||
Foreign exchange contracts | |||
Derivatives not designated as hedging instruments | $ 54 | $ (230) | $ 130 |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting of Assets | ||
Gross Amounts of Recognized Assets | $ 569 | $ 102 |
Gross Amounts Offset in the Consolidated Balance Sheets | (56) | (22) |
Net Presented in the Consolidated Balance Sheets | 513 | 80 |
Financial Instruments | (90) | (64) |
Cash Collateral Received | (307) | (4) |
Non-Cash Collateral Received | (14) | (2) |
Net Assets Exposed | 102 | 10 |
Offsetting of Liabilities | ||
Gross Amounts of Recognized Liabilities | 289 | 374 |
Gross Amounts Offset in the Consolidated Balance Sheets | (56) | (22) |
Net Presented in the Consolidated Balance Sheets | 233 | 352 |
Financial Instruments | (90) | (64) |
Cash Collateral Pledged | 0 | 0 |
Non-Cash Collateral Pledged | 0 | 0 |
Net Liabilities | $ 143 | $ 288 |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2017 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Assets not available for use | $ 2,400 | $ 1,700 | |
Liabilities with no recourse | 909 | 997 | |
Variable Interest Entity, Primary Beneficiary | Verily | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Consideration received | 800 | ||
Cash received from transaction | 900 | ||
Amount of investment | 1,000 | ||
Calico | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Accumulated payments for other commitments | 480 | ||
Research and Development Arrangement | AbbVie Inc | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Accumulated payments for other commitments | 750 | ||
Research commitments | 500 | ||
Research and Development Arrangement | Calico | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Accumulated payments for other commitments | 500 | ||
Research commitments | 750 | ||
Commitment to Invest | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research commitments | 750 | ||
Renewable Energy Investments | Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Carrying value | $ 705 | $ 896 | |
Scenario, Forecast | Variable Interest Entity, Primary Beneficiary | Verily | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Cash received from transaction | $ 100 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | |||||
Apr. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2016USD ($) | Feb. 28, 2014USD ($) | May 31, 2011USD ($)Tranche | |
Debt Instrument [Line Items] | ||||||
Commercial paper outstanding | $ 0 | $ 0 | ||||
Estimated fair value of long-term debt | $ 3,900,000,000 | 4,000,000,000 | ||||
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 | Alphabet Notes | ||||||
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 | |||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing on short term lines of credit | $ 5,000,000,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing on short term lines of credit | 4,000,000,000 | |||||
Line of credit drawn | $ 0 | $ 0 | ||||
Google | Alphabet Notes | ||||||
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 unsecured senior notes tranches (in tranches) | Tranche | 3 | |||||
Google | Unsecured debt | 2014 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 1,000,000,000 |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Long-Term Debt | ||
Unamortized discount for the Notes above | $ (50) | $ (57) |
Subtotal | 3,950 | 3,943 |
Capital lease obligation | 62 | 26 |
Total long-term debt | 4,012 | 3,969 |
3.625% Notes due on May 19, 2021 | ||
Long-Term Debt | ||
Long-term debt | $ 1,000 | 1,000 |
Long-term debt, stated 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, stated 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, stated interest rate | 1.998% |
Debt (Future Principal Payments
Debt (Future Principal Payments for Borrowings) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,019 | $ 0 |
2,020 | 14 |
2,021 | 1,003 |
2,022 | 3 |
2,023 | 3 |
Thereafter | 3,039 |
Total | $ 4,062 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 82,507 | $ 59,647 |
Less: accumulated depreciation | (22,788) | (17,264) |
Property and equipment, net | 59,719 | 42,383 |
Cost basis of property and equipment under capital lease | 648 | 390 |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 30,179 | 23,183 |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 30,119 | 21,429 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 16,838 | 10,491 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 5,310 | 4,496 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 61 | $ 48 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Components Disclosure [Abstract] | ||
European Commission fines | $ 7,754 | $ 2,874 |
Accrued customer liabilities | 1,810 | 1,489 |
Other accrued expenses and current liabilities | 7,394 | 5,814 |
Accrued expenses and other current liabilities | $ 16,958 | $ 10,177 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 152,502 | $ 139,036 | $ 120,331 | ||
Other comprehensive income (loss) before reclassifications | (527) | 1,212 | (398) | ||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 26 | ||||
Amounts reclassified from AOCI | (813) | 198 | (130) | ||
Other comprehensive income (loss) | (1,314) | 1,410 | (528) | ||
Ending Balance | 177,628 | 152,502 | 139,036 | ||
Cumulative effect of accounting change | (697) | (15) | $ 47 | ||
Retained Earnings | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | 113,247 | 105,131 | 89,223 | ||
Ending Balance | 134,885 | 113,247 | 105,131 | ||
Cumulative effect of accounting change | (599) | (15) | (133) | ||
Foreign Currency Translation Adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (1,103) | (2,646) | (2,047) | ||
Other comprehensive income (loss) before reclassifications | (781) | 1,543 | (599) | ||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | ||||
Amounts reclassified from AOCI | 0 | 0 | 0 | ||
Other comprehensive income (loss) | (781) | 1,543 | (599) | ||
Ending Balance | (1,884) | (1,103) | (2,646) | ||
Unrealized Gains (Losses) on Available-for-Sale Investments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | 233 | (179) | (86) | ||
Other comprehensive income (loss) before reclassifications | (10) | 307 | (314) | ||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | ||||
Amounts reclassified from AOCI | (911) | 105 | 221 | ||
Other comprehensive income (loss) | (921) | 412 | (93) | ||
Ending Balance | (688) | 233 | (179) | ||
Unrealized Gains (Losses) on Cash Flow Hedges | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (122) | 423 | 259 | ||
Other comprehensive income (loss) before reclassifications | 264 | (638) | 515 | ||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 26 | ||||
Amounts reclassified from AOCI | 98 | 93 | (351) | ||
Other comprehensive income (loss) | 388 | (545) | 164 | ||
Ending Balance | 266 | (122) | 423 | ||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning Balance | (992) | (2,402) | (1,874) | ||
Ending Balance | $ (2,306) | (992) | $ (2,402) | ||
Cumulative effect of accounting change | $ (98) | $ 0 | |||
Accounting Standards Update 2016-01 | Retained Earnings | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Cumulative effect of accounting change | $ 98 |
Supplemental Financial Statem_6
Supplemental Financial Statement Information (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | $ 136,819 | $ 110,855 | $ 90,272 |
Other income (expense), net | 8,592 | 1,047 | 434 |
Provision for income taxes | (4,177) | (14,531) | (4,672) |
Net of tax | 30,736 | 12,662 | 19,478 |
Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net of tax | 813 | (198) | 130 |
Reclassification out of AOCI | Unrealized gains (losses) on available-for-sale investments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | 1,190 | (105) | (221) |
Provision for income taxes | (279) | 0 | 0 |
Net of tax | 911 | (105) | (221) |
Reclassification out of AOCI | Unrealized Gains (Losses) on Cash Flow Hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net of tax | (98) | (93) | 351 |
Reclassification out of AOCI | Unrealized Gains (Losses) on Cash Flow Hedges | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | (139) | (169) | 539 |
Reclassification out of AOCI | Unrealized Gains (Losses) on Cash Flow Hedges | Interest rate contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other income (expense), net | 6 | 5 | 5 |
Provision for income taxes | $ 35 | $ 71 | $ (193) |
Supplemental Financial Statem_7
Supplemental Financial Statement Information (Components of Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balance Sheet Components Disclosure [Abstract] | |||
Interest income | $ 1,878 | $ 1,312 | $ 1,220 |
Interest expense | (114) | (109) | (124) |
Foreign currency exchange losses, net | (80) | (121) | (475) |
Gain (loss) on marketable securities, net | 1,190 | (110) | (53) |
Gain (loss) on non-marketable investments, net | 5,460 | 73 | (20) |
Loss and impairment from equity method investments, net | (120) | (156) | (202) |
Other | 378 | 158 | 88 |
Other income (expense), net | 8,592 | 1,047 | 434 |
Interest capitalized | 92 | 48 | 0 |
Foreign currency transaction losses | 195 | $ 226 | $ 112 |
Unrealized gain on reclassification of securities | $ 1,300 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 17,888 | $ 16,747 | $ 16,468 | |
HTC | ||||
Business Acquisition [Line Items] | ||||
Total cash consideration | $ 1,100 | |||
Cash acquired | 10 | |||
Acquired intangible assets | 165 | |||
Goodwill | 934 | |||
Liabilities assumed | $ (9) | |||
Series of individually immaterial business acquisitions | ||||
Business Acquisition [Line Items] | ||||
Cash acquired | 10 | 12 | ||
Acquired intangible assets | 295 | 117 | ||
Goodwill | 293 | 221 | ||
Liabilities assumed | (25) | (28) | ||
Total acquisition price | 573 | 322 | ||
Amount of goodwill expected to be deductible for tax purposes | $ 81 | $ 60 | ||
Series of individually immaterial business acquisitions | Patents and developed technology | ||||
Business Acquisition [Line Items] | ||||
Acquired intangible assets, weighted-average useful life | 3 years 8 months 12 days | 3 years 8 months | ||
Series of individually immaterial business acquisitions | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Acquired intangible assets, weighted-average useful life | 2 years 3 months 18 days | 2 years | ||
Series of individually immaterial business acquisitions | Trade names and other | ||||
Business Acquisition [Line Items] | ||||
Acquired intangible assets, weighted-average useful life | 3 years 8 months 12 days | 8 years 9 months |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning of Period | $ 16,747 | $ 16,468 |
Acquisitions | 1,227 | 221 |
Transfers | 0 | |
Foreign currency translation and other adjustments | (86) | 58 |
Goodwill, End of Period | 17,888 | 16,747 |
Goodwill [Roll Forward] | ||
Goodwill, Beginning of Period | 16,295 | 16,027 |
Acquisitions | 1,227 | 212 |
Transfers | 80 | |
Foreign currency translation and other adjustments | (81) | 56 |
Goodwill, End of Period | 17,521 | 16,295 |
Other Bets | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning of Period | 452 | 441 |
Acquisitions | 0 | 9 |
Transfers | (80) | |
Foreign currency translation and other adjustments | (5) | 2 |
Goodwill, End of Period | $ 367 | $ 452 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,177 | $ 6,163 |
Accumulated Amortization | 3,957 | 3,471 |
Net Carrying Amount | 2,220 | 2,692 |
Patents and developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,125 | 5,260 |
Accumulated Amortization | 3,394 | 3,040 |
Net Carrying Amount | 1,731 | 2,220 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 349 | 359 |
Accumulated Amortization | 308 | 263 |
Net Carrying Amount | 41 | 96 |
Trade names and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 703 | 544 |
Accumulated Amortization | 255 | 168 |
Net Carrying Amount | $ 448 | $ 376 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Patents and developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 3 years | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 6 months | ||
Trade names and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 3 years 9 months 18 days | ||
Acquisition-related intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of acquisition-related intangible assets | $ 865 | $ 796 | $ 833 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,019 | $ 712 |
2,020 | 585 |
2,021 | 533 |
2,022 | 201 |
2,023 | 7 |
Thereafter | 182 |
Total | $ 2,220 |
Commitments and Contingencies_2
Commitments and Contingencies (Future Minimum Payments Under Non-Cancelable Operating Leases, Along with Sublease Income Amounts) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases(1) | |
2,019 | $ 1,319 |
2,020 | 1,397 |
2,021 | 1,337 |
2,022 | 1,153 |
2,023 | 980 |
Thereafter | 3,916 |
Total minimum payments | 10,102 |
Sub-lease Income | |
2,019 | 16 |
2,020 | 13 |
2,021 | 10 |
2,022 | 8 |
2,023 | 3 |
Thereafter | 5 |
Total minimum payments | 55 |
Net Operating Leases | |
2,019 | 1,303 |
2,020 | 1,384 |
2,021 | 1,327 |
2,022 | 1,145 |
2,023 | 977 |
Thereafter | 3,911 |
Total minimum payments | $ 10,047 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Millions, € in Billions | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Non-cancelable future minimum lease payments | $ 3,500 | |||||||
Rent expense under operating leases, including co-location arrangements | 1,300 | $ 1,100 | $ 897 | |||||
Other non-cancelable contractual obligations | 7,400 | |||||||
European Commission fines | 5,071 | $ 2,736 | $ 0 | |||||
Property, Plant and Equipment | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
Non-cancelable future minimum lease payments | $ 1,500 | |||||||
Unfavorable Regulatory Action | ||||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||||
European Commission fines | $ 5,100 | € 4.3 | $ 21 | $ 2,700 | € 2.4 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)voteclass$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2016USD ($) | |
Stockholders Equity Note [Line Items] | |||||
Convertible preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |||
Convertible preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | |||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | |||
Number of authorized classes of stock | class | 3 | ||||
Repurchases of capital stock | $ | $ 9,075,000,000 | $ 4,846,000,000 | $ 3,693,000,000 | ||
Class A Common Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Votes per share class (in votes) | vote | 1 | ||||
Class B Common Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Votes per share class (in votes) | vote | 10 | ||||
Class C Capital Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Votes per share class (in votes) | vote | 0 | ||||
Class C Capital Stock | Share Repurchase Program | |||||
Stockholders Equity Note [Line Items] | |||||
Authorized share repurchase amount | $ | $ 8,600,000,000 | $ 7,000,000,000 | |||
Repurchases of capital stock (in shares) | 8,200,000 | 5,200,000 | |||
Repurchases of capital stock | $ | $ 9,100,000,000 | $ 4,800,000,000 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Denominator | |||
Basic net income per share (in dollars per share) | $ 44.22 | $ 18.27 | $ 28.32 |
Weighted-average effect of dilutive securities | |||
Diluted net income per share (in dollars per share) | $ 43.70 | $ 18 | $ 27.85 |
Class A Common Stock | |||
Numerator | |||
Net income available to all stockholders | $ 13,200 | $ 5,438 | $ 8,332 |
Denominator | |||
Number of shares used in basic computation (in shares) | 298,548 | 297,604 | 294,217 |
Basic net income per share (in dollars per share) | $ 44.22 | $ 18.27 | $ 28.32 |
Numerator | |||
Effect of dilutive securities in equity method investments and subsidiaries | $ (9) | ||
Allocation of undistributed earnings for diluted computation | 8,323 | ||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | $ 2,072 | $ 862 | 1,382 |
Reallocation of undistributed earnings | (146) | (74) | (94) |
Allocation of undistributed earnings | $ 15,126 | $ 6,226 | $ 9,611 |
Denominator | |||
Number of shares used in basic computation (in shares) | 298,548 | 297,604 | 294,217 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 46,864 | 47,146 | 48,859 |
Restricted stock units and other contingently issuable shares (in shares) | 689 | 1,192 | 2,055 |
Number of shares used in per share computation (in shares) | 346,101 | 345,942 | 345,131 |
Diluted net income per share (in dollars per share) | $ 43.70 | $ 18 | $ 27.85 |
Class B Common Stock | |||
Numerator | |||
Net income available to all stockholders | $ 2,072 | $ 862 | $ 1,384 |
Denominator | |||
Number of shares used in basic computation (in shares) | 46,864 | 47,146 | 48,859 |
Basic net income per share (in dollars per share) | $ 44.22 | $ 18.27 | $ 28.32 |
Numerator | |||
Effect of dilutive securities in equity method investments and subsidiaries | $ (2) | ||
Allocation of undistributed earnings for diluted computation | 1,382 | ||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | $ 0 | $ 0 | 0 |
Reallocation of undistributed earnings | (24) | (14) | (21) |
Allocation of undistributed earnings | $ 2,048 | $ 848 | $ 1,361 |
Denominator | |||
Number of shares used in basic computation (in shares) | 46,864 | 47,146 | 48,859 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 | 0 |
Restricted stock units and other contingently issuable shares (in shares) | 0 | 0 | 0 |
Number of shares used in per share computation (in shares) | 46,864 | 47,146 | 48,859 |
Diluted net income per share (in dollars per share) | $ 43.70 | $ 18 | $ 27.85 |
Class C Capital Stock | |||
Numerator | |||
Net income available to all stockholders | $ 15,464 | $ 6,362 | $ 9,762 |
Denominator | |||
Number of shares used in basic computation (in shares) | 349,728 | 348,151 | 344,702 |
Basic net income per share (in dollars per share) | $ 44.22 | $ 18.27 | $ 28.32 |
Numerator | |||
Effect of dilutive securities in equity method investments and subsidiaries | $ (10) | ||
Allocation of undistributed earnings for diluted computation | 9,752 | ||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | $ 0 | $ 0 | 0 |
Reallocation of undistributed earnings | 146 | 74 | 94 |
Allocation of undistributed earnings | $ 15,610 | $ 6,436 | $ 9,846 |
Denominator | |||
Number of shares used in basic computation (in shares) | 349,728 | 348,151 | 344,702 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 | 0 |
Restricted stock units and other contingently issuable shares (in shares) | 7,456 | 9,491 | 8,873 |
Number of shares used in per share computation (in shares) | 357,184 | 357,642 | 353,575 |
Diluted net income per share (in dollars per share) | $ 43.70 | $ 18 | $ 27.85 |
Compensation Plans (Stock Plans
Compensation Plans (Stock Plans) (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Stock Plans | |
Shares reserved for future issuance (in shares) | 31,848,134 |
Employee Stock Option | |
Stock Plans | |
Stock options, term | 10 years |
Restricted Stock Units (RSUs) | |
Stock Plans | |
Award vesting period | 4 years |
Compensation Plans (Stock Based
Compensation Plans (Stock Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total stock-based compensation expense | $ 10,000 | $ 7,900 | $ 6,900 |
Stock-based compensation expense, awards we expect to settle in Alphabet stock | 9,353 | 7,679 | 6,703 |
Tax benefits on total stock-based compensation expense | 1,500 | 1,600 | 1,500 |
Tax benefit realized related to awards vested or exercised | $ 2,100 | $ 2,700 | $ 2,100 |
Compensation Plans (Stock Bas_2
Compensation Plans (Stock Based Award Activities) (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Shares | |||
Unvested at beginning of period (in shares) | 20,077,346 | ||
Granted (in shares) | 12,669,251 | ||
Vested (in shares) | (12,847,910) | ||
Forfeited/canceled (in shares) | (1,431,009) | ||
Unvested at end of period (in shares) | 18,467,678 | 20,077,346 | |
Weighted- Average Grant-Date Fair Value | |||
Unvested at beginning of period (in dollars per share) | $ 712.45 | ||
Granted (in dollars per share) | 1,095.89 | $ 845.06 | $ 713.89 |
Vested (in dollars per share) | 756.45 | ||
Forfeited/canceled (in dollars per share) | 814.19 | ||
Unvested at end of period (in dollars per share) | $ 936.96 | $ 712.45 | |
Fair value of vested awards | $ 14.1 | $ 11.3 | $ 9 |
Unrecognized compensation cost | $ 16.2 | ||
Period for recognized of unrecognized compensation cost | 2 years 6 months |
Compensation Plans (401k Plans
Compensation Plans (401k Plans and Performance Fees) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)plan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of 401(k) plans (in plan) | plan | 2 | ||
401(k) savings plan employer contribution | $ 691 | $ 448 | $ 385 |
Performance fees | $ 1,200 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)jurisdiction | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Income Taxes [Line Items] | ||||
Income before income taxes, income from domestic operations amount | $ 15,800 | $ 10,700 | $ 12,000 | |
Income before income taxes, income from foreign operations amount | 19,100 | 16,500 | 12,100 | |
Provisional amount for one-time transitional tax liability | 10,200 | |||
Deferred tax benefit reflecting reduced U.S. tax rate | 376 | |||
Net tax credit carryforwards | 2,400 | |||
Total unrecognized tax benefits | 4,652 | 4,696 | 5,393 | $ 4,167 |
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate | 2,900 | 3,000 | $ 4,300 | |
Uncertain tax positions, accrued interest and penalties | $ 490 | $ 362 | ||
Number of tax jurisdictions | jurisdiction | 2 | |||
Possible decrease in unrecognized tax benefits in next twelve months | $ 600 | |||
Federal | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 1,200 | |||
State | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 1,400 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 950 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal and state | $ 2,153 | $ 12,608 | $ 3,826 |
Foreign | 1,251 | 1,746 | 966 |
Total | 3,404 | 14,354 | 4,792 |
Deferred: | |||
Federal and state | 907 | 220 | (70) |
Foreign | (134) | (43) | (50) |
Total | 773 | 177 | (120) |
Provision for income taxes | $ 4,177 | $ 14,531 | $ 4,672 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 35.00% | 35.00% |
Foreign income taxed at different rates | (4.90%) | (14.20%) | (11.00%) |
Effect of the Tax Act | |||
One-time transition tax | (0.10%) | 37.60% | 0.00% |
Deferred tax effects | (1.20%) | (1.40%) | 0.00% |
Federal research credit | (2.40%) | (1.80%) | (2.00%) |
Stock-based compensation expense | (2.20%) | (4.50%) | (3.40%) |
European Commission fine | 3.10% | 3.50% | 0.00% |
Deferred tax asset valuation allowance | (2.00%) | 0.90% | 0.10% |
Other adjustments | 0.70% | (1.70%) | 0.60% |
Effective tax rate | 12.00% | 53.40% | 19.30% |
Income Taxes (Significant Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Stock-based compensation expense | $ 291 | $ 251 |
Accrued employee benefits | 387 | 285 |
Accruals and reserves not currently deductible | 1,062 | 717 |
Tax credits | 1,979 | 1,187 |
Basis difference in investment in Arris | 657 | 849 |
Prepaid cost sharing | 597 | 498 |
Net operating losses | 557 | 320 |
Other | 251 | 244 |
Total deferred tax assets | 5,781 | 4,351 |
Valuation allowance | (2,817) | (2,531) |
Total deferred tax assets net of valuation allowance | 2,964 | 1,820 |
Deferred tax liabilities: | ||
Property and equipment | (1,382) | (551) |
Identified intangibles | (229) | (419) |
Renewable energy investments | (500) | (531) |
Investment gains/losses | (1,143) | (22) |
Other | (237) | (47) |
Total deferred tax liabilities | (3,491) | (1,570) |
Net deferred tax assets | $ 250 | |
Deferred tax liabilities, net | $ (527) |
Income Taxes (Summary of Activi
Income Taxes (Summary of Activity Related to Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 4,696 | $ 5,393 | $ 4,167 |
Increases related to prior year tax positions | 321 | 685 | 899 |
Decreases related to prior year tax positions | (623) | (257) | (157) |
Decreases related to settlement with tax authorities | (191) | (1,875) | (196) |
Increases related to current year tax positions | 449 | 750 | 680 |
Ending Balance | $ 4,652 | $ 4,696 | $ 5,393 |
Information about Segments an_3
Information about Segments and Geographic Areas (Revenue by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 136,819 | $ 110,855 | $ 90,272 |
Segment Reporting Information [Line Items] | |||
Revenues | 136,224 | 110,378 | 89,984 |
Other Bets | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 595 | $ 477 | $ 288 |
Information about Segments an_4
Information about Segments and Geographic Areas (Operating Income/Loss by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | $ 26,321 | $ 26,146 | $ 23,716 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | 36,517 | 32,287 | 27,055 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | (3,358) | (2,734) | (2,741) |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | $ (6,838) | $ (3,407) | $ (598) |
Information about Segments an_5
Information about Segments and Geographic Areas (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 25,139 | $ 13,184 | $ 10,212 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 25,460 | 12,619 | 9,437 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 181 | 493 | 1,365 |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ (502) | $ 72 | $ (590) |
Information about Segments an_6
Information about Segments and Geographic Areas (Stock-based Compensation and Depreciation, Amortization and Impairment by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | $ 9,353 | $ 7,679 | $ 6,703 |
Depreciation, amortization and impairment | 9,035 | 6,915 | 6,144 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 8,755 | 7,168 | 6,201 |
Depreciation, amortization and impairment | 8,708 | 6,608 | 5,882 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 489 | 363 | 372 |
Depreciation, amortization and impairment | 327 | 307 | 258 |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 109 | 148 | 130 |
Depreciation, amortization and impairment | $ 0 | $ 0 | $ 4 |
Information about Segments an_7
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 97,116 | $ 72,987 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 74,882 | 55,113 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 22,234 | $ 17,874 |
Schedule II_ Valuation and Qu_2
Schedule II: Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts and sales credits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 674 | $ 467 | $ 296 |
Additions | 1,115 | 1,131 | 942 |
Usage | (1,060) | (924) | (771) |
Balance at End of Year | $ 729 | $ 674 | $ 467 |