Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 27, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-37580 | ||
Entity Registrant Name | Alphabet Inc. | ||
Entity Central Index Key | 0001652044 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 61-1767919 | ||
Entity Address, Address Line One | 1600 Amphitheatre Parkway | ||
Entity Address, City or Town | Mountain View | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94043 | ||
City Area Code | 650 | ||
Local Phone Number | 253-000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 663 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement for the 2020 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2019 . | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class A Common Stock, $0.001 par value | ||
Trading Symbol | GOOGL | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 299,895,185 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 46,411,073 | ||
Class C Capital Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Class C Capital Stock, $0.001 par value | ||
Trading Symbol | GOOG | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 340,979,832 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 18,498 | $ 16,701 |
Marketable securities | 101,177 | 92,439 |
Total cash, cash equivalents, and marketable securities | 119,675 | 109,140 |
Accounts receivable, net of allowance of $729 and $753 | 25,326 | 20,838 |
Income taxes receivable, net | 2,166 | 355 |
Inventory | 999 | 1,107 |
Other current assets | 4,412 | 4,236 |
Total current assets | 152,578 | 135,676 |
Non-marketable investments | 13,078 | 13,859 |
Deferred income taxes | 721 | 737 |
Property and equipment, net | 73,646 | |
Property and equipment, net | 59,719 | |
Operating lease assets | 10,941 | |
Intangible assets, net | 1,979 | 2,220 |
Goodwill | 20,624 | 17,888 |
Other non-current assets | 2,342 | 2,693 |
Total assets | 275,909 | 232,792 |
Current liabilities: | ||
Accounts payable | 5,561 | 4,378 |
Accrued compensation and benefits | 8,495 | 6,839 |
Accrued expenses and other current liabilities | 23,067 | 16,958 |
Accrued revenue share | 5,916 | 4,592 |
Deferred revenue | 1,908 | 1,784 |
Income taxes payable, net | 274 | 69 |
Total current liabilities | 45,221 | 34,620 |
Long-term debt | 4,554 | 4,012 |
Deferred revenue, non-current | 358 | 396 |
Income taxes payable, non-current | 9,885 | 11,327 |
Deferred income taxes | 1,701 | 1,264 |
Operating lease liabilities | 10,214 | |
Other long-term liabilities | 2,534 | 3,545 |
Total liabilities | 74,467 | 55,164 |
Commitments and Contingencies (Note 10) | ||
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); 695,556 (Class A 299,242, Class B 46,636, Class C 349,678) and 688,335 (Class A 299,828, Class B 46,441, Class C 342,066) shares issued and outstanding | 50,552 | 45,049 |
Accumulated other comprehensive loss | (1,232) | (2,306) |
Retained earnings | 152,122 | 134,885 |
Total stockholders’ equity | 201,442 | 177,628 |
Total liabilities and stockholders’ equity | $ 275,909 | $ 232,792 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance | $ 753 | $ 729 |
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) | 688,335,000 | 695,556,000 |
Common stock and capital stock, shares outstanding (in shares) | 688,335,000 | 695,556,000 |
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) | 299,828,000 | 299,242,000 |
Common stock and capital stock, shares outstanding (in shares) | 299,828,000 | 299,242,000 |
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) | 46,441,000 | 46,636,000 |
Common stock and capital stock, shares outstanding (in shares) | 46,441,000 | 46,636,000 |
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) | 342,066,000 | 349,678,000 |
Common stock and capital stock, shares outstanding (in shares) | 342,066,000 | 349,678,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 161,857 | $ 136,819 | $ 110,855 |
Costs and expenses: | |||
Cost of revenues | 71,896 | 59,549 | 45,583 |
Research and development | 26,018 | 21,419 | 16,625 |
Sales and marketing | 18,464 | 16,333 | 12,893 |
General and administrative | 9,551 | 6,923 | 6,840 |
European Commission fines | 1,697 | 5,071 | 2,736 |
Total costs and expenses | 127,626 | 109,295 | 84,677 |
Income from operations | 34,231 | 27,524 | 26,178 |
Other income (expense), net | 5,394 | 7,389 | 1,015 |
Income before income taxes | 39,625 | 34,913 | 27,193 |
Provision for income taxes | 5,282 | 4,177 | 14,531 |
Net income | $ 34,343 | $ 30,736 | $ 12,662 |
Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 49.59 | $ 44.22 | $ 18.27 |
Diluted net income per share of Class A and Class B common stock and Class C capital stock (in dollars per share) | $ 49.16 | $ 43.70 | $ 18 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 34,343 | $ 30,736 | $ 12,662 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (119) | (781) | 1,543 |
Available-for-sale investments: | |||
Change in net unrealized gains (losses) | 1,611 | 88 | 307 |
Less: reclassification adjustment for net (gains) losses included in net income | (111) | (911) | 105 |
Net change (net of tax effect of $0, $156, and $221) | 1,500 | (823) | 412 |
Cash flow hedges: | |||
Change in net unrealized gains (losses) | 22 | 290 | (638) |
Less: reclassification adjustment for net (gains) losses included in net income | (299) | 98 | 93 |
Net change (net of tax effect of $247, $103, and $42) | (277) | 388 | (545) |
Other comprehensive income (loss) | 1,104 | (1,216) | 1,410 |
Comprehensive income | $ 35,447 | $ 29,520 | $ 14,072 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Tax expense (benefit) related to available-for-sale investments | $ 221 | $ 156 | $ 0 |
Tax expense (benefit) related to cash flow hedges | $ 42 | $ 103 | $ 247 |
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 |
Beginning Balance at Dec. 31, 2016 | $ 139,036 | $ 36,307 | $ (2,402) | $ 105,131 |
Beginning Balance (in shares) at Dec. 31, 2016 | 691,293 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common and capital stock issued | 212 | $ 212 | ||
Common and capital stock issued (in shares) | 8,652 | |||
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 | (4,846) | $ (315) | (4,531) | |
Repurchases of capital stock (in shares) | (5,162) | |||
Sale of interest in consolidated entities | 722 | $ 722 | ||
Net income | 12,662 | 12,662 | ||
Other comprehensive income (loss) | 1,410 | 1,410 | ||
Ending Balance at Dec. 31, 2017 | 152,502 | $ 40,247 | (992) | 113,247 |
Ending Balance (in shares) at Dec. 31, 2017 | 694,783 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common and capital stock issued | 148 | |||
Common and capital stock issued (in shares) | 8,975 | |||
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 | (9,075) | $ (576) | (8,499) | |
Repurchases of capital stock (in shares) | (8,202) | |||
Sale of interest in consolidated entities | 659 | $ 659 | ||
Net income | 30,736 | 30,736 | ||
Other comprehensive income (loss) | (1,216) | (1,216) | ||
Ending Balance at Dec. 31, 2018 | 177,628 | $ 45,049 | (2,306) | 134,885 |
Ending Balance (in shares) at Dec. 31, 2018 | 695,556 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common and capital stock issued | 202 | $ 202 | ||
Common and capital stock issued (in shares) | 8,120 | |||
Stock-based compensation expense | 10,890 | $ 10,890 | ||
Tax withholding related to vesting of restricted stock units and other | (4,455) | (4,455) | ||
Repurchases of capital stock | (18,396) | $ (1,294) | (17,102) | |
Repurchases of capital stock (in shares) | (15,341) | |||
Sale of interest in consolidated entities | 160 | $ 160 | ||
Net income | 34,343 | 34,343 | ||
Other comprehensive income (loss) | 1,104 | 1,104 | ||
Ending Balance at Dec. 31, 2019 | $ 201,442 | $ 50,552 | $ (1,232) | $ 152,122 |
Ending Balance (in shares) at Dec. 31, 2019 | 688,335 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net income | $ 34,343 | $ 30,736 | $ 12,662 |
Adjustments: | |||
Depreciation and impairment of property and equipment | 10,856 | 8,164 | 6,103 |
Amortization and impairment of intangible assets | 925 | 871 | 812 |
Stock-based compensation expense | 10,794 | 9,353 | 7,679 |
Deferred income taxes | 173 | 778 | 258 |
(Gain) loss on debt and equity securities, net | (2,798) | (6,650) | 37 |
Other | (592) | (189) | 294 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (4,340) | (2,169) | (3,768) |
Income taxes, net | (3,128) | (2,251) | 8,211 |
Other assets | (621) | (1,207) | (2,164) |
Accounts payable | 428 | 1,067 | 731 |
Accrued expenses and other liabilities | 7,170 | 8,614 | 4,891 |
Accrued revenue share | 1,273 | 483 | 955 |
Deferred revenue | 37 | 371 | 390 |
Net cash provided by operating activities | 54,520 | 47,971 | 37,091 |
Investing activities | |||
Purchases of property and equipment | (23,548) | (25,139) | (13,184) |
Purchases of marketable securities | (100,315) | (50,158) | (92,195) |
Maturities and sales of marketable securities | 97,825 | 48,507 | 73,959 |
Purchases of non-marketable investments | (1,932) | (2,073) | (1,745) |
Maturities and sales of non-marketable investments | 405 | 1,752 | 533 |
Acquisitions, net of cash acquired, and purchases of intangible assets | (2,515) | (1,491) | (287) |
Proceeds from collection of notes receivable | 0 | 0 | 1,419 |
Other investing activities | 589 | 98 | 99 |
Net cash used in investing activities | (29,491) | (28,504) | (31,401) |
Financing activities | |||
Net payments related to stock-based award activities | (4,765) | (4,993) | (4,166) |
Repurchases of capital stock | (18,396) | (9,075) | (4,846) |
Proceeds from issuance of debt, net of costs | 317 | 6,766 | 4,291 |
Repayments of debt | (585) | (6,827) | (4,377) |
Proceeds from sale of interest in consolidated entities | 220 | 950 | 800 |
Net cash used in financing activities | (23,209) | (13,179) | (8,298) |
Effect of exchange rate changes on cash and cash equivalents | (23) | (302) | 405 |
Net increase (decrease) in cash and cash equivalents | 1,797 | 5,986 | (2,203) |
Cash and cash equivalents at beginning of period | 16,701 | 10,715 | 12,918 |
Cash and cash equivalents at end of period | 18,498 | 16,701 | 10,715 |
Supplemental disclosures of cash flow information | |||
Cash paid for taxes, net of refunds | $ 8,203 | $ 5,671 | $ 6,191 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 cost of revenues (which is the cost of revenues excluding TAC) includes 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 and the tax withholding is recorded as a reduction to additional paid-in capital. Additionally, stock-based compensation includes stock-based awards, such as performance stock units (PSUs) and awards that may be settled in cash or the stock of certain of our Other Bets. PSUs are equity classified and expense is recognized over the requisite service period. Awards that are liability classified are remeasured at fair value through settlement or maturity (six months and one day after vesting). The fair value of such awards is based on the equity valuation 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, which may result in expense recognized before investment returns are realized. Performance fees, which are primarily related to gains on equity securities, are recorded as a component of other income (expense), net. 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 markets 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. No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2017 , 2018 , or 2019 . In 2017 , 2018 , and 2019 , we generated approximately 47% , 46% , and 46% of our revenues, respectively, from customers based in the U.S. We are subject to concentrations of credit risk principally from cash and cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable. We manage our credit risk exposure through timely assessment of our counterparty creditworthiness, credit limits and use of collateral management. 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 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 measured at fair value on a nonrecurring basis include non-marketable equity securities, which are adjusted to fair value when observable price changes are identified or when the non-marketable equity securities are impaired (referred to as the measurement alternative) . 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 marketable investments that 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. Our non-marketable equity securities not accounted for under the equity method are primarily accounted for under the measurement alternative in accordance with Accounting Standards Update No. 2016-01, which we adopted on January 1, 2018. Under the measurement alternative, the carrying value of our non-marketable equity investments is adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Adjustments are determined primarily based on a market approach as of the transaction date. We account for our non-marketable investments that meet the definition of a debt security as available-for-sale securities. We classify our non-marketable investments that do not have stated contractual maturity dates, as non-current assets on the Consolidated Balance Sheets. 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. 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. Leases We determine if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-lease components. Payments under our lease arrangements are primarily fixed. Non-lease components primarily include payments for maintenance and utilities. We combine fixed payments for non-lease components with lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities. Certain lease agreements contain variable payments, which are expensed as incurred and not included in the lease assets and liabilities. These amounts include payments affected by the Consumer Price Index, payments contingent on wind or solar production for power purchase arrangements, and payments for maintenance and utilities. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the base, non-cancelable, lease term when determining the lease assets and liabilities. Lease assets also include any prepaid lease payments and lease incentives. Operating lease assets and liabilities are included on our Consolidated Balance Sheet beginning January 1, 2019. The current portion of our operating lease liabilities is included in accrued expenses and other current liabilities and the long term portion is included in operating lease liabilities. Finance lease assets are included in property and equipment, net. Finance lease liabilities are included in accrued expenses and other current liabilities or long-term debt. Operating lease expense is recognized on a straight-line basis over the lease term. 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 depreciate information technology assets generally 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 generally 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 gain (loss) 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, 2017 , 2018 and 2019 , advertising and promotional expenses totaled approximately $5.1 billion , $6.4 billion , and $6.8 billion , respectively. Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (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 with the cumulative effect of adoption recorded as an adjustment to retained earnings. The effect on our consolidated financial statements and related disclosures is not expected to be material. Recently adopted accounting pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease requirements in Accounting Standards Codification 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 continue to be classified as either finance or operating. We adopted Topic 842 effective January 1, 2019. The most significant effects of Topic 842 were the recognition of $8.0 billion of operating lease assets and $8.4 billion of operating lease liabilities and the de-recognition of $1.5 billion of build-to-suit assets and liabilities upon adoption. We applied Topic 842 to all leases as of January 1, 2019 with comparative periods continuing to be reported under Topic 840. In the adoption of Topic 842, we carried forward the assessment from Topic 840 of whether our contracts contain or are leases, the classification of our leases, and remaining lease terms. Our accounting for finance leases remains substantially unchanged. The standard did not have a significant effect on our consolidated results of operations or cash flows. See Note 4 for further details. Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. Hedging gains (losses), which were previously included in Google revenues, are now reported separately as a component of total revenues for all periods presented. See Note 2 for further details. Additionally, performance fees have been reclassified for all periods from general and administrative expenses to other income (expense), net to align with the presentation of the investment gains and losses on which the performance fees are based. See Note 7 for further details. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that we expect in exchange for those goods or services. Sales and other similar taxes are excluded from revenues. The following table presents our revenues disaggregated by type (in millions). Certain amounts in prior periods have been reclassified to conform with current period presentation. Year Ended December 31, 2017 2018 2019 Google Search & other $ 69,811 $ 85,296 $ 98,115 YouTube ads (1) 8,150 11,155 15,149 Google properties 77,961 96,451 113,264 Google Network Members' properties 17,616 20,010 21,547 Google advertising 95,577 116,461 134,811 Google Cloud 4,056 5,838 8,918 Google other (1) 10,914 14,063 17,014 Google revenues 110,547 136,362 160,743 Other Bets revenues 477 595 659 Hedging gains (losses) (169 ) (138 ) 455 Total revenues $ 110,855 $ 136,819 $ 161,857 (1) YouTube non-advertising revenues are included in Google other revenues. The following table presents our revenues disaggregated by geography, based on the addresses of our customers (in millions): Year Ended December 31, 2017 2018 2019 United States $ 52,449 47 % $ 63,269 46 % $ 74,843 46 % EMEA (1) 36,236 33 44,739 33 50,645 31 APAC (1) 16,192 15 21,341 15 26,928 17 Other Americas (1) 6,147 5 7,608 6 8,986 6 Hedging gains (losses) (169 ) 0 (138 ) 0 455 0 Total revenues $ 110,855 100 % $ 136,819 100 % $ 161,857 100 % (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas). Advertising Revenues We generate advertising revenues primarily by delivering advertising on Google properties, including Google.com, the Google Search app, YouTube, Google Play, Gmail and Google Maps; and Google Network Members’ properties. Our customers generally purchase advertising inventory through Google Ads, Google Ad Manager as part of the Authorized Buyers marketplace, and Google Marketing Platform, among others. We offer advertising on a click, impression or view basis. We recognize revenue each time a user clicks on the ad, when the ad is displayed or a user views the ad. 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. Google Cloud Revenues Google Cloud revenues consist primarily of revenues from Google Cloud Platform (which includes infrastructure and data and analytics platform products, and other services), G Suite productivity tools and other enterprise cloud services. Our cloud revenues are provided on either a consumption or subscription basis. Revenue related to cloud services provided on a consumption basis is recognized when the customer utilizes the services, based on the quantity of services consumed. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract term as the customer receives and consumes the benefits of the cloud services. Other Revenues Google other revenues and Other Bets revenues consist primarily of revenues from: • Google Play, which includes revenues from sale of apps and in-app purchases (which we recognize net of payout to developers) and digital content sold in the Google Play store; • hardware, including Google Nest home products, Pixelbooks, Pixel phones and other devices; • YouTube non-advertising including, YouTube premium and YouTube TV subscriptions and other services; and • other 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 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. 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 year ended December 31, 2019 was primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.7 billion of revenues recognized that were included in the deferred revenue balance as of December 31, 2018 . Additionally, we have performance obligations associated with commitments in customer contracts, primarily related to Google Cloud, for future services that have not yet been recognized in revenue. This includes related deferred revenue currently recorded and amounts that will be invoiced in future periods. As of December 31, 2019 , the amount not yet recognized in revenue from these commitments is $11.4 billion , which reflects our assessment of relevant contract terms. This amount excludes contracts (i) 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. We expect to recognize approximately two thirds over the next 24 months with the remaining thereafter. However, the amount and timing of revenue recognition is largely driven by customer utilization, which could impact our estimate of the remaining amount of commitments and when we expect to recognize such revenues. Sales Commissions 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. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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. The following tables summarize our debt securities by significant investment categories as of December 31, 2018 and 2019 (in millions): As of December 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Marketable Level 2: Time deposits (1) $ 2,202 $ 0 $ 0 $ 2,202 $ 2,202 $ 0 Government bonds 53,634 71 (414 ) 53,291 3,717 49,574 Corporate debt securities 25,383 15 (316 ) 25,082 44 25,038 Mortgage-backed and asset-backed securities 16,918 11 (324 ) 16,605 0 16,605 Total $ 98,137 $ 97 $ (1,054 ) $ 97,180 $ 5,963 $ 91,217 As of December 31, 2019 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Level 2: Time deposits (1) $ 2,294 $ 0 $ 0 $ 2,294 $ 2,294 $ 0 Government bonds 55,033 434 (30 ) 55,437 4,518 50,919 Corporate debt securities 27,164 337 (3 ) 27,498 44 27,454 Mortgage-backed and asset-backed securities 19,453 96 (41 ) 19,508 0 19,508 Total $ 103,944 $ 867 $ (74 ) $ 104,737 $ 6,856 $ 97,881 (1) The majority of our time deposits are domestic deposits. We determine realized gains or losses on the sale or extinguishment of debt securities on a specific identification method. We recognized gross realized gains of $185 million , $1.3 billion , and $292 million for the years ended December 31, 2017 , 2018 , and 2019 , respectively. We recognized gross realized losses of $295 million , $143 million , and $143 million for the years ended December 31, 2017 , 2018 , and 2019 , 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 $ 20,392 Due in 1 year through 5 years 63,151 Due in 5 years through 10 years 2,671 Due after 10 years 11,667 Total $ 97,881 The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2018 and 2019 , 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, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 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 ) As of December 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Government bonds $ 6,752 $ (20 ) $ 4,590 $ (10 ) $ 11,342 $ (30 ) Corporate debt securities 1,665 (2 ) 978 (1 ) 2,643 (3 ) Mortgage-backed and asset-backed securities 4,536 (13 ) 2,835 (28 ) 7,371 (41 ) Total $ 12,953 $ (35 ) $ 8,403 $ (39 ) $ 21,356 $ (74 ) During the years ended December 31, 2017 , 2018 and 2019 Equity Investments The following discusses our marketable equity securities, non-marketable equity securities, gains and losses on marketable and non-marketable equity securities, as well as our equity securities accounted for under the equity method. Our marketable equity securities are publicly traded stocks or funds measured at fair value and classified within Level 1 and 2 in the fair value hierarchy because we use quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets. All gains and losses on marketable equity securities, realized and unrealized, are recognized in other income (expense), net. Our non-marketable equity securities are investments in privately held companies without readily determinable market values. The carrying value of our non-marketable equity securities is adjusted to fair value 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. Non-marketable equity securities that have been remeasured during the period are classified within Level 2 or 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. Gains and losses on marketable and non-marketable equity securities Gains and losses reflected in other income (expense), net, for our marketable and non-marketable equity securities are summarized below (in millions): Year Ended December 31, 2018 2019 Net gain (loss) on equity securities sold during the period $ 1,458 $ (301 ) Net unrealized gain (loss) on equity securities held as of the end of the period (1) 4,002 2,950 Total gain (loss) recognized in other income (expense), net $ 5,460 $ 2,649 (1) Includes net gains of $4.1 billion and $1.8 billion related to non-marketable equity securities for the years ended December 31, 2018 and 2019 , respectively. In the table above, net gain (loss) on equity securities sold during the period reflects the difference between the sale proceeds and the carrying value of the equity securities at the beginning of the period or the purchase date, if later. Cumulative net gains on equity securities sold during the period, which is summarized in the following table (in millions), represents the total net gains (losses) recognized after the initial purchase date of the equity security. While these net gains may have been reflected in periods prior to the period of sale, we believe they are important supplemental information as they reflect the economic realized gain on the securities sold during the period. Cumulative net gains is calculated as the difference between the sale price and the initial purchase price for the equity security sold during the period. Equity Securities Sold During the Year Ended December 31, 2018 2019 Total sale price $ 1,965 $ 3,134 Total initial cost 515 858 Cumulative net gains $ 1,450 $ 2,276 Carrying value of marketable and non-marketable equity securities The carrying value is measured as the total initial cost plus the cumulative net gain (loss). The carrying values for our marketable and non-marketable equity securities are summarized below (in millions): As of December 31, 2018 Marketable Securities Non-Marketable Securities Total Total initial cost $ 1,168 $ 8,168 $ 9,336 Cumulative net gain (1) 54 4,107 4,161 Carrying value $ 1,222 $ 12,275 $ 13,497 (1) Non-marketable securities cumulative net gain is comprised of $4.3 billion unrealized gains and $178 million unrealized losses (including impairment). As of December 31, 2019 Marketable Securities Non-Marketable Securities Total Total initial cost $ 1,935 $ 8,297 $ 10,232 Cumulative net gain (1) 1,361 3,056 4,417 Carrying value $ 3,296 $ 11,353 $ 14,649 (1) Non-marketable securities cumulative net gain is comprised of $3.5 billion unrealized gains and $445 million unrealized losses (including impairment). Marketable equity securities The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2018 and 2019 (in millions): As of December 31, 2018 As of December 31, 2019 Cash and Cash Equivalents Marketable Cash and Cash Equivalents Marketable Level 1: Money market funds $ 3,493 $ 0 $ 4,604 $ 0 Marketable equity securities (1) 0 994 0 3,046 3,493 994 4,604 3,046 Level 2: Mutual funds 0 228 0 250 Total $ 3,493 $ 1,222 $ 4,604 $ 3,296 (1) The balance a s of December 31, 2019 includes investments that were reclassified from non-marketable equity securities following the initial public offering of the issuers. 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 (in millions): Year Ended December 31, 2018 2019 Unrealized gains $ 4,285 $ 2,163 Unrealized losses (including impairment) (178 ) (372 ) Total unrealized gain (loss) for non-marketable equity securities $ 4,107 $ 1,791 During the year ended December 31, 2019 , included in the $11.4 billion of non-marketable equity securities, $7.6 billion were measured at fair value primarily based on observable market transactions, resulting in a net unrealized gain of $1.8 billion . Equity securities accounted for under the Equity Method Equity securities accounted for under the equity method had a carrying value of approximately $1.3 billion as of December 31, 2018 and 2019 . 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 7 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. Any components excluded from the assessment of hedge effectiveness are recognized in the same income statement line as the hedged item. 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, 2018 and 2019 , we received cash collateral related to the derivative instruments under our collateral security arrangements of $327 million and $252 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 $11.8 billion and $13.2 billion as of December 31, 2018 and 2019 , 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, 2019 , the net accumulated loss on our foreign currency cash flow hedges before tax effect was $82 million , of which $82 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 $2.0 billion and $455 million as of December 31, 2018 and 2019 , 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 We use 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 and $9.3 billion as of December 31, 2018 and 2019 , respectively. 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 $20.1 billion and $43.5 billion as of December 31, 2018 and 2019 , respectively. The fair values of our outstanding derivative instruments were as follows (in millions): 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 As of December 31, 2019 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 91 $ 253 $ 344 Total $ 91 $ 253 $ 344 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 173 $ 196 $ 369 Total $ 173 $ 196 $ 369 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, 2017 2018 2019 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ (955 ) $ 332 $ 38 Amount excluded from the assessment of effectiveness 0 26 (14 ) Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 0 136 131 Total $ (955 ) $ 494 $ 155 The effect of derivative instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income Year Ended December 31, 2017 2018 2019 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 $ 110,855 $ 1,015 $ 136,819 $ 7,389 $ 161,857 $ 5,394 Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ (169 ) $ 0 $ (139 ) $ 0 $ 367 $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 0 0 1 0 88 0 Amount excluded from the assessment of effectiveness 0 83 0 0 0 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 197 0 (96 ) 0 (19 ) Derivatives designated as hedging instruments 0 (197 ) 0 96 0 19 Amount excluded from the assessment of effectiveness 0 23 0 37 0 25 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 0 0 78 0 243 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Derivatives not designated as hedging instruments 0 (230 ) 0 54 0 (413 ) Total gains (losses) $ (169 ) $ (124 ) $ (138 ) $ 169 $ 455 $ (145 ) 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, 2018 and 2019 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets 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 As of December 31, 2019 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 $ 365 $ (21 ) $ 344 $ (88 ) (1) $ (234 ) $ 0 $ 22 (1) The balances as of December 31, 2018 and 2019 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, 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 As of December 31, 2019 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 $ 390 $ (21 ) $ 369 $ (88 ) (2) $ 0 $ 0 $ 281 (2) The balances as of December 31, 2018 and 2019 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have entered into operating and finance lease agreements primarily for data centers, land and offices throughout the world with lease periods expiring between 2020 and 2063 . Components of operating lease expense were as follows (in millions): Year Ended December 31, 2019 Operating lease cost $ 1,820 Variable lease cost 541 Total operating lease cost $ 2,361 Supplemental information related to operating leases was as follows (in millions): Year Ended December 31, 2019 Cash payments for operating leases $ 1,661 New operating lease assets obtained in exchange for operating lease liabilities $ 4,391 As of December 31, 2019 , our operating leases had a weighted average remaining lease term of 10 years and a weighted average discount rate of 2.8% . Future lease payments under operating leases as of December 31, 2019 were as follows (in millions): 2020 $ 1,757 2021 1,845 2022 1,680 2023 1,508 2024 1,301 Thereafter 5,763 Total future lease payments 13,854 Less imputed interest (2,441 ) Total lease liability balance $ 11,413 As of December 31, 2019 , we have entered into leases that have not yet commenced with future lease payments of $7.4 billion , excluding purchase options, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2020 and 2026 with non-cancelable lease terms of 1 to 25 years. Supplemental Information for Comparative Periods As of December 31, 2018, prior to the adoption of Topic 842, 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. Rent expense under operating leases was $1.1 billion and $1.3 billion for the years ended December 31, 2017, and 2018, respectively. |
Leases | Leases We have entered into operating and finance lease agreements primarily for data centers, land and offices throughout the world with lease periods expiring between 2020 and 2063 . Components of operating lease expense were as follows (in millions): Year Ended December 31, 2019 Operating lease cost $ 1,820 Variable lease cost 541 Total operating lease cost $ 2,361 Supplemental information related to operating leases was as follows (in millions): Year Ended December 31, 2019 Cash payments for operating leases $ 1,661 New operating lease assets obtained in exchange for operating lease liabilities $ 4,391 As of December 31, 2019 , our operating leases had a weighted average remaining lease term of 10 years and a weighted average discount rate of 2.8% . Future lease payments under operating leases as of December 31, 2019 were as follows (in millions): 2020 $ 1,757 2021 1,845 2022 1,680 2023 1,508 2024 1,301 Thereafter 5,763 Total future lease payments 13,854 Less imputed interest (2,441 ) Total lease liability balance $ 11,413 As of December 31, 2019 , we have entered into leases that have not yet commenced with future lease payments of $7.4 billion , excluding purchase options, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2020 and 2026 with non-cancelable lease terms of 1 to 25 years. Supplemental Information for Comparative Periods As of December 31, 2018, prior to the adoption of Topic 842, 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. Rent expense under operating leases was $1.1 billion and $1.3 billion for the years ended December 31, 2017, and 2018, respectively. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 , assets that can only be used to settle obligations of these VIEs were $2.4 billion and $3.1 billion , respectively, and the liabilities for which creditors only have recourse to the VIEs were $909 million and $1.2 billion , 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, 2019 , AbbVie has contributed $1,250 million to fund the collaboration pursuant to the agreement. As of December 31, 2019 , 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, 2019 , 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 and healthcare company with a mission to make the world's health data useful so that people enjoy healthier lives. In December 2018, Verily received $900 million in cash from a $1.0 billion investment round. The remaining $100 million was received in the first quarter of 2019. As of December 31, 2019 , Verily has received an aggregate amount of $1.8 billion from sales of equity securities to external investors. These transactions were accounted for as equity transactions and no gain or loss was recognized. In the fourth quarter of 2019, Verily obtained a controlling financial interest in Onduo, an existing equity method investment. The transaction resulted in a $357 million gain from the revaluation of the previously held economic interest, which was recognized in other income (expense), net. Unconsolidated VIEs Certain of our non-marketable investments, including certain renewable energy investments accounted for under the equity method and certain other investments in private companies, are VIEs. The renewable energy entities' activities involve power generation using renewable sources. Private companies that we invest in are primarily early stage companies. We have determined that the governance structures of these entities do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we do not consolidate these VIEs in our consolidated financial statements. The maximum exposure of these unconsolidated VIEs is generally based on the current carrying value of the investments and any future funding commitments. We have determined that the single source of our exposure to these VIEs is our capital investments in them. The carrying value and maximum exposure of these unconsolidated VIEs were not material as of December 31, 2018 and 2019 . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 . 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 (50 ) (42 ) Subtotal (1) 3,950 3,958 Total future finance lease payments 62 685 Less: imputed interest for finance leases 0 (89 ) Total long-term debt $ 4,012 $ 4,554 (1) Includes the outstanding (and unexchanged) Google Notes issued in 2011 and 2014 and the Alphabet notes exchanged in 2016. The effective interest yields based on proceeds received from the outstanding notes due in 2021, 2024, and 2026 were 3.734% , 3.377% , and 2.231% , respectively, with interest payable semi-annually. We may redeem these notes at any time in whole or in part at specified redemption prices. The total estimated fair value of all outstanding notes was approximately $3.9 billion and $4.1 billion as of December 31, 2018 and 2019 , 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, 2019 , the aggregate future principal payments for long-term debt including long-term finance leases for each of the next five years and thereafter are as follows (in millions): 2020 $ 0 2021 1,046 2022 46 2023 46 2024 1,047 Thereafter 2,500 Total $ 4,685 Credit Facility As of December 31, 2019 , 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, 2018 and 2019 . |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 2019 | |
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 $ 30,179 $ 39,865 Information technology assets 30,119 36,840 Construction in progress 16,838 21,036 Leasehold improvements 5,310 6,310 Furniture and fixtures 61 156 Property and equipment, gross 82,507 104,207 Less: accumulated depreciation (22,788 ) (30,561 ) Property and equipment, net $ 59,719 $ 73,646 As of December 31, 2018 and 2019, information technology assets and land and buildings under finance leases with a cost basis of $648 million and $1.6 billion , 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) $ 7,754 $ 9,405 Accrued customer liabilities 1,810 2,245 Accrued purchases of property and equipment 1,603 2,411 Current operating lease liabilities 0 1,199 Other accrued expenses and current liabilities 5,791 7,807 Accrued expenses and other current liabilities $ 16,958 $ 23,067 (1) Includes the effects of foreign exchange and interest. See Note 10 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, 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 ) Cumulative effect of accounting change 0 (98 ) 0 (98 ) Other comprehensive income (loss) before reclassifications (781 ) 88 264 (429 ) 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 ) (823 ) 388 (1,216 ) Balance as of December 31, 2018 (1,884 ) (688 ) 266 (2,306 ) Cumulative effect of accounting change 0 0 (30 ) (30 ) Other comprehensive income (loss) before reclassifications (119 ) 1,611 36 1,528 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (14 ) (14 ) Amounts reclassified from AOCI 0 (111 ) (299 ) (410 ) Other comprehensive income (loss) (119 ) 1,500 (277 ) 1,104 Balance as of December 31, 2019 $ (2,003 ) $ 812 $ (41 ) $ (1,232 ) 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 2017 2018 2019 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (105 ) $ 1,190 $ 149 Benefit (provision) for income taxes 0 (279 ) (38 ) Net of tax (105 ) 911 111 Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue (169 ) (139 ) 367 Interest rate contracts Other income (expense), net 5 6 6 Benefit (provision) for income taxes 71 35 (74 ) Net of tax (93 ) (98 ) 299 Total amount reclassified, net of tax $ (198 ) $ 813 $ 410 Other Income (Expense), Net The components of other income (expense), net, were as follows (in millions): Year Ended December 31, 2017 2018 2019 Interest income $ 1,312 $ 1,878 $ 2,427 Interest expense (1) (109 ) (114 ) (100 ) Foreign currency exchange gain (loss), net (2) (121 ) (80 ) 103 Gain (loss) on debt securities, net (3) (110 ) 1,190 149 Gain (loss) on equity securities, net 73 5,460 2,649 Performance fees (4) (32 ) (1,203 ) (326 ) Gain (loss) and impairment from equity method investments, net (156 ) (120 ) 390 Other 158 378 102 Other income (expense), net $ 1,015 $ 7,389 $ 5,394 (1) Interest expense is net of interest capitalized of $48 million , $92 million , and $167 million for the years ended December 31, 2017 , 2018 , and 2019 , respectively. (2) Our foreign currency exchange gain (loss), 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 $226 million , $195 million , and $166 million for the years ended December 31, 2017 , 2018 , and 2019 , 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. (4) Performance fees were reclassified for prior periods from general and administrative expenses to other income (expense), net to conform with current period presentation. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2019 Acquisitions Looker In December 2019, we obtained all regulatory clearances necessary to close the acquisition of Looker, a unified platform for business intelligence, data applications and embedded analytics for $2.4 billion , with integration pending approval from a UK regulatory review. The addition of Looker to Google Cloud is expected to help customers accelerate how they analyze data, deliver business intelligence, and build data-driven applications. The fair value of assets acquired and liabilities assumed was recorded based on a preliminary valuation and our estimates and assumptions are subject to change within the measurement period. The $2.4 billion purchase price includes our previously held equity interest and excludes post acquisition compensation arrangements. In aggregate, $91 million was cash acquired, $290 million was attributed to intangible assets, $1.9 billion to goodwill and $48 million to net assets acquired . Goodwill was recorded in the Google segment and primarily attributable to synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. Other Acquisitions During the year ended December 31, 2019 , we completed other acquisitions and purchases of intangible assets for total consideration of approximately $1.0 billion . In aggregate, $28 million was cash acquired, $282 million was attributed to intangible assets, $904 million to goodwill and $185 million 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. Pro forma results of operations for these acquisitions, including Looker, 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, 2019 , patents and developed technology have a weighted-average useful life of 3.5 years, customer relationships have a weighted-average useful life of 6.3 years, and trade names and other have a weighted-average useful life of 4.5 years. Pending Acquisition of Fitbit In November 2019, we entered into an agreement to acquire Fitbit, a leading wearables brand, for $7.35 per share, representing a total purchase price of approximately $2.1 billion as of the date of the agreement. The acquisition of Fitbit is expected to be completed in 2020, subject to customary closing conditions, including the receipt of regulatory approvals. Upon the close of the acquisition, Fitbit will be part of Google segment. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 were as follows (in millions): Google Other Bets Total Consolidated 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 Acquisitions 2,353 475 2,828 Transfers 9 (9 ) 0 Foreign currency translation and other adjustments 38 (130 ) (92 ) Balance as of December 31, 2019 $ 19,921 $ 703 $ 20,624 Other Intangible Assets Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount 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 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 4,972 $ 3,570 $ 1,402 Customer relationships 254 30 224 Trade names and other 703 350 353 Total $ 5,929 $ 3,950 $ 1,979 Patents and developed technology, customer relationships, and trade names and other have weighted-average remaining useful lives of 2.3 years, 5.6 years, and 3.0 years, respectively. Amortization expense relating to purchased intangible assets was $796 million , $865 million , and $795 million for the years ended December 31, 2017 , 2018 , and 2019 , respectively. As of December 31, 2019 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows (in millions): 2020 $ 749 2021 665 2022 317 2023 57 2024 45 Thereafter 146 $ 1,979 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations As of December 31, 2019 , we had $5.7 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, customers of Google Cloud offerings, 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, 2019 , we did not have any material indemnification claims that were probable or reasonably possible. Legal Matters Antitrust Investigations On November 30, 2010, the EC's Directorate General for Competition opened an investigation into various antitrust-related complaints against us. On June 27, 2017, the EC announced its decision that certain actions taken by Google regarding its display and ranking of shopping search results and ads infringed European competition law. The EC decision imposed a €2.4 billion ( $2.7 billion as of June 27, 2017) fine. On September 11, 2017, we appealed the EC decision and on September 27, 2017, we implemented product changes to bring shopping ads into compliance with the EC's decision. We recognized a charge of $2.7 billion for the fine in the second quarter of 2017. On 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. On October 29, 2018, we implemented changes to certain of our Android distribution practices. We recognized a charge of $5.1 billion for the fine in the second quarter of 2018. On March 20, 2019, the EC announced its decision that certain contractual provisions in agreements that Google had with AdSense for Search partners infringed European competition law. The EC decision imposed a fine of €1.5 billion ( $1.7 billion as of March 20, 2019) and directed actions related to AdSense for Search agreements, which we implemented prior to the decision. On June 4, 2019, we appealed the EC decision. We recognized a charge of $1.7 billion for the fine in the first quarter of 2019. While each EC decision is under appeal, we included the fines in accrued expenses and other current liabilities on our Consolidated Balance Sheets as we provided bank guarantees (in lieu of a cash payment) for the fines. From time to time we are subject to formal and informal inquiries and investigations by competition authorities in the United States, Europe, and other jurisdictions. For example, in August 2019, we began receiving civil investigative demands from the U.S. Department of Justice requesting information and documents relating to our prior antitrust investigations and certain of our business practices. Attorneys general from 51 U.S. states and territories have also opened antitrust investigations into certain of our business practices. We continue to cooperate with federal and state regulators in the United States, and other regulators around the world. Patent and Intellectual Property Claims We have had patent, copyright, trade secret, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe others' intellectual property rights. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services. As a result, we may have to change our business practices, and develop non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to litigate intellectual property disputes because an ultimate loss in an ITC action can result in a prohibition on importing infringing products into the U.S. Because the U.S. is an important market, a prohibition on importation could have an adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating workarounds that may limit certain features of our products. Furthermore, many of our agreements with our customers and partners require us to indemnify them against certain intellectual property infringement claims, which would increase our costs as a result of defending such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims. In addition, our customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely affect our business. 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 a 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. On April 29, 2019, the Supreme Court requested the views of the Solicitor General regarding our petition. On September 27, 2019, the Solicitor General recommended denying our petition, and we provided our response on October 16, 2019. On November 15, 2019, the Supreme Court granted our petition and made a decision to review the case. If the Supreme Court does not rule in our favor, the case will be remanded to the district court for further determination of the remaining issues in the case, including damages, if any. 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, 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 14 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 , 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 January 2018, the board of directors of Alphabet authorized the company to repurchase up to $8.6 billion of its Class C capital stock. In January and July 2019, the board of directors of Alphabet authorized the company to repurchase up to an additional $12.5 billion and $25.0 billion of its Class C capital stock, respectively. Share repurchases pursuant to the January 2018 and January 2019 authorizations were completed in 2019. 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, 2018 and 2019 , we repurchased and subsequently retired 8.2 million shares of Alphabet Class C capital stock for an aggregate amount of $9.1 billion and 15.3 million shares of Alphabet Class C capital stock for an aggregate amount of $18.4 billion , respectively. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 , 2018 and 2019 , 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, 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 Year Ended December 31, 2019 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 14,846 $ 2,307 $ 17,190 Denominator Number of shares used in per share computation 299,402 46,527 346,667 Basic net income per share $ 49.59 $ 49.59 $ 49.59 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 14,846 $ 2,307 $ 17,190 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 2,307 0 0 Reallocation of undistributed earnings (126 ) (20 ) 126 Allocation of undistributed earnings $ 17,027 $ 2,287 $ 17,316 Denominator Number of shares used in basic computation 299,402 46,527 346,667 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 46,527 0 0 Restricted stock units and other contingently issuable shares 413 0 5,547 Number of shares used in per share computation 346,342 46,527 352,214 Diluted net income per share $ 49.16 $ 49.16 $ 49.16 |
Compensation Plans
Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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, 2019 , there were 37,982,435 shares of stock reserved for future issuance under our Stock Plan. Additionally, we have stock-based awards that may be settled in the stock of certain of our Other Bets. Stock-Based Compensation For the years ended December 31, 2017 , 2018 and 2019 , total stock-based compensation expense was $7.9 billion , $10.0 billion and $11.7 billion , including amounts associated with awards we expect to settle in Alphabet stock of $7.7 billion , $9.4 billion , and $10.8 billion , respectively. For the years ended December 31, 2017 , 2018 and 2019 , 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 $1.6 billion , $1.5 billion , and $1.8 billion , respectively. For the years ended December 31, 2017 , 2018 and 2019 , tax benefit realized related to awards vested or exercised during the period was $2.7 billion , $2.1 billion and $2.2 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 in Alphabet stock for the year ended December 31, 2019 : Unvested Restricted Stock Units Number of Shares Weighted- Average Grant-Date Fair Value Unvested as of December 31, 2018 18,467,678 $ 936.96 Granted 13,934,041 $ 1,092.36 Vested (11,576,766 ) $ 919.28 Forfeited/canceled (1,430,717 ) $ 990.56 Unvested as of December 31, 2019 19,394,236 $ 1,055.22 The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2017 and 2018 , was $845.06 and $1,095.89 , respectively. Total fair value of RSUs, as of their respective vesting dates, during the years ended December 31, 2017 , 2018 , and 2019 were $11.3 billion , $14.1 billion , and $15.2 billion , respectively. As of December 31, 2019 , there was $19.1 billion of unrecognized compensation cost related to unvested employee RSUs. This amount is expected to be recognized over a weighted-average period of 2.6 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 $448 million , $691 million , and $724 million for the years ended December 31, 2017 , 2018 , and 2019 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from continuing operations before income taxes consists of the following (in millions): Year Ended December 31, 2017 2018 2019 Domestic operations $ 10,680 $ 15,779 $ 16,426 Foreign operations 16,513 19,134 23,199 Total $ 27,193 $ 34,913 $ 39,625 The provision for income taxes consists of the following (in millions): Year Ended December 31, 2017 2018 2019 Current: Federal and state $ 12,608 $ 2,153 $ 2,424 Foreign 1,746 1,251 2,713 Total 14,354 3,404 5,137 Deferred: Federal and state 220 907 286 Foreign (43 ) (134 ) (141 ) Total 177 773 145 Provision for income taxes $ 14,531 $ 4,177 $ 5,282 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 2018, to the provisional amounts including refinements to deferred taxes. The accounting for the tax effects of the Tax Act was completed as of December 31, 2018. 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 transitional tax liability and income tax expense of $10.2 billion as of December 31, 2017. Subsequent adjustments in 2018 and 2019 were not material. 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, 2017 2018 2019 U.S. federal statutory tax rate 35.0 % 21.0 % 21.0 % Foreign income taxed at different rates (14.2 ) (4.9 ) (5.6 ) Effect of the Tax Act Transition tax 37.6 (0.1 ) (0.6 ) Deferred tax effects (1.4 ) (1.2 ) 0.0 Federal research credit (1.8 ) (2.4 ) (2.5 ) Stock-based compensation expense (4.5 ) (2.2 ) (0.7 ) European Commission fines 3.5 3.1 1.0 Deferred tax asset valuation allowance 0.9 (2.0 ) 0.0 State and local income taxes 0.1 (0.4 ) 1.1 Other adjustments (1.8 ) 1.1 (0.4 ) Effective tax rate 53.4 % 12.0 % 13.3 % 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. As a result of that decision, we recorded a tax benefit related to the anticipated reimbursement of cost share payment for previously shared stock-based compensation costs. On June 7, 2019, the United States Court of Appeals for the Ninth Circuit overturned the 2015 Tax Court decision in Altera Corp. v. Commissioner, and upheld 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. As a result of the Ninth Circuit court decision, our cumulative net tax benefit of $418 million related to previously shared stock-based compensation costs was reversed in the year ended December 31, 2019. Deferred Income Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows (in millions): As of December 31, 2018 2019 Deferred tax assets: Stock-based compensation expense $ 291 $ 421 Accrued employee benefits 387 463 Accruals and reserves not currently deductible 902 1,047 Tax credits 1,979 3,264 Basis difference in investment in Arris 657 0 Prepaid cost sharing 597 0 Net operating losses 557 771 Operating leases 160 1,876 Other 21 390 Total deferred tax assets 5,551 8,232 Valuation allowance (2,817 ) (3,502 ) Total deferred tax assets net of valuation allowance 2,734 4,730 Deferred tax liabilities: Property and equipment, net (1,382 ) (1,798 ) Renewable energy investments (500 ) (466 ) Foreign Earnings (111 ) (373 ) Net investment gains (1,143 ) (1,074 ) Operating leases 0 (1,619 ) Other (125 ) (380 ) Total deferred tax liabilities (3,261 ) (5,710 ) Net deferred tax assets (liabilities) $ (527 ) $ (980 ) As of December 31, 2019 , our federal, state and foreign net operating loss carryforwards for income tax purposes were approximately $1.8 billion , $3.1 billion , and $1.9 billion respectively. If not utilized, the federal and foreign net operating loss carryforwards will begin to expire in 2021 and the state net operating loss carryforwards will begin to expire in 2020. It is more likely than not that certain 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. As of December 31, 2019 , our California research and development credit carryforwards for income tax purposes were approximately $3.0 billion that can be carried over indefinitely. We believe the state tax credit is not likely to be realized. As of December 31, 2019 , we maintained a valuation allowance with respect to California deferred tax assets, certain federal net operating losses, certain state tax credits and certain foreign net operating losses that we believe are not likely to be realized. Due to gains from equity securities recognized, we released the valuation allowance in 2018 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. Uncertain Tax Positions The following table summarizes the activity related to our gross unrecognized tax benefits (in millions): Year Ended December 31, 2017 2018 2019 Beginning gross unrecognized tax benefits $ 5,393 $ 4,696 $ 4,652 Increases related to prior year tax positions 685 321 938 Decreases related to prior year tax positions (257 ) (623 ) (143 ) Decreases related to settlement with tax authorities (1,875 ) (191 ) (2,886 ) Increases related to current year tax positions 750 449 816 Ending gross unrecognized tax benefits $ 4,696 $ 4,652 $ 3,377 The total amount of gross unrecognized tax benefits was $4.7 billion , $4.7 billion , and $3.4 billion as of December 31, 2017 , 2018 , and 2019 , respectively, of which, $3.0 billion , $2.9 billion , and $2.3 billion , if recognized, would affect our effective tax rate, respectively. The decrease in gross unrecognized tax benefits in 2017 and 2019 was primarily as a result of the resolution of multi-year audits. As of December 31, 2018 and 2019 , we had accrued $490 million and $130 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 completed its examination through our 2015 tax years; all issues have been concluded and the IRS will commence its examination of our 2016 through 2018 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. The tax years 2011 through 2018 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, we do not believe it is reasonably possible that our unrecognized tax benefits will materially change in the next 12 months. |
Information about Segments and
Information about Segments and Geographic Areas | 12 Months Ended |
Dec. 31, 2019 | |
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, hardware, Google Cloud, Google Maps, Google Play, 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 and subscription-based products. • Other Bets – Other Bets is a combination of multiple operating segments that are not individually material. Other Bets includes Access, Calico, CapitalG, GV, Verily, Waymo, and X, among others. 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. Information about segments during the periods presented were as follows (in millions): Year Ended December 31, 2017 2018 2019 Revenues: Google $ 110,547 $ 136,362 $ 160,743 Other Bets 477 595 659 Hedging gains (losses) (169 ) (138 ) 455 Total revenues $ 110,855 $ 136,819 $ 161,857 Year Ended December 31, 2017 2018 2019 Operating income (loss): Google $ 32,456 $ 36,655 $ 41,673 Other Bets (2,734 ) (3,358 ) (4,824 ) Reconciling items (1) (3,544 ) (5,773 ) (2,618 ) Total income from operations $ 26,178 $ 27,524 $ 34,231 (1) Reconciling items are generally comprised of corporate administrative costs, hedging gains (losses) and other miscellaneous items that are not allocated to individual segments. Reconciling items include t he European Commission fines for the years ended December 31, 2017, 2018 and 2019, and a charge from a legal settlement for the year ended December 31, 2019. Performance fees previously included in reconciling items were reclassified for the years ended December 31, 2017 and 2018 from general and administrative expenses to other income (expense), net to conform with current period presentation. For further information on the reclassification, see Note 1. Year Ended December 31, 2017 2018 2019 Capital expenditures: Google $ 12,619 $ 25,460 $ 25,251 Other Bets 493 181 281 Reconciling items (2) 72 (502 ) (1,984 ) Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 13,184 $ 25,139 $ 23,548 (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, 2017 2018 2019 Stock-based compensation: Google $ 7,168 $ 8,755 $ 10,185 Other Bets 363 489 474 Reconciling items (3) 148 109 135 Total stock-based compensation (4) $ 7,679 $ 9,353 $ 10,794 Depreciation, amortization, and impairment: Google $ 6,608 $ 8,708 $ 11,158 Other Bets 307 327 566 Reconciling items (3) 0 0 57 Total depreciation, amortization, and impairment $ 6,915 $ 9,035 $ 11,781 (3) Reconciling items relate to corporate administrative and other 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. The following table presents our long-lived assets by geographic area (in millions): As of As of Long-lived assets: United States $ 74,882 $ 94,907 International 22,234 28,424 Total long-lived assets $ 97,116 $ 123,331 For revenues by geography, see Note 2 . |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 , 2018 and 2019 (in millions): Balance at Beginning of Year Additions Usage Balance at End of Year Year ended December 31, 2017 $ 467 $ 1,131 $ (924 ) $ 674 Year ended December 31, 2018 $ 674 $ 1,115 $ (1,060 ) $ 729 Year ended December 31, 2019 $ 729 $ 1,481 $ (1,457 ) $ 753 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, 2019 | |
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 |
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 cost of revenues (which is the cost of revenues excluding TAC) includes 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 advertising revenues primarily by delivering advertising on Google properties, including Google.com, the Google Search app, YouTube, Google Play, Gmail and Google Maps; and Google Network Members’ properties. Our customers generally purchase advertising inventory through Google Ads, Google Ad Manager as part of the Authorized Buyers marketplace, and Google Marketing Platform, among others. We offer advertising on a click, impression or view basis. We recognize revenue each time a user clicks on the ad, when the ad is displayed or a user views the ad. 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. Google Cloud Revenues Google Cloud revenues consist primarily of revenues from Google Cloud Platform (which includes infrastructure and data and analytics platform products, and other services), G Suite productivity tools and other enterprise cloud services. Our cloud revenues are provided on either a consumption or subscription basis. Revenue related to cloud services provided on a consumption basis is recognized when the customer utilizes the services, based on the quantity of services consumed. Revenue related to cloud services provided on a subscription basis is recognized ratably over the contract term as the customer receives and consumes the benefits of the cloud services. Other Revenues Google other revenues and Other Bets revenues consist primarily of revenues from: • Google Play, which includes revenues from sale of apps and in-app purchases (which we recognize net of payout to developers) and digital content sold in the Google Play store; • hardware, including Google Nest home products, Pixelbooks, Pixel phones and other devices; • YouTube non-advertising including, YouTube premium and YouTube TV subscriptions and other services; and • other 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 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. 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 year ended December 31, 2019 was primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.7 billion of revenues recognized that were included in the deferred revenue balance as of December 31, 2018 . Additionally, we have performance obligations associated with commitments in customer contracts, primarily related to Google Cloud, for future services that have not yet been recognized in revenue. This includes related deferred revenue currently recorded and amounts that will be invoiced in future periods. As of December 31, 2019 , the amount not yet recognized in revenue from these commitments is $11.4 billion , which reflects our assessment of relevant contract terms. This amount excludes contracts (i) 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. We expect to recognize approximately two thirds over the next 24 months with the remaining thereafter. However, the amount and timing of revenue recognition is largely driven by customer utilization, which could impact our estimate of the remaining amount of commitments and when we expect to recognize such revenues. Sales Commissions 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. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that we expect in exchange for those goods or services. Sales and other similar taxes are excluded from revenues. |
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 and the tax withholding is recorded as a reduction to additional paid-in capital. Additionally, stock-based compensation includes stock-based awards, such as performance stock units (PSUs) and awards that may be settled in cash or the stock of certain of our Other Bets. PSUs are equity classified and expense is recognized over the requisite service period. Awards that are liability classified are remeasured at fair value through settlement or maturity (six months and one day after vesting). The fair value of such awards is based on the equity valuation 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, which may result in expense recognized before investment returns are realized. Performance fees, which are primarily related to gains on equity securities, are recorded as a component of other income (expense), net. |
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 markets 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. |
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 measured at fair value on a nonrecurring basis include non-marketable equity securities, which are adjusted to fair value when observable price changes are identified or when the non-marketable equity securities are impaired (referred to as the measurement alternative) . 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. |
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 marketable investments that 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. Our non-marketable equity securities not accounted for under the equity method are primarily accounted for under the measurement alternative in accordance with Accounting Standards Update No. 2016-01, which we adopted on January 1, 2018. Under the measurement alternative, the carrying value of our non-marketable equity investments is adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment. Adjustments are determined primarily based on a market approach as of the transaction date. 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. |
Leases | Leases We determine if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-lease components. Payments under our lease arrangements are primarily fixed. Non-lease components primarily include payments for maintenance and utilities. We combine fixed payments for non-lease components with lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities. Certain lease agreements contain variable payments, which are expensed as incurred and not included in the lease assets and liabilities. These amounts include payments affected by the Consumer Price Index, payments contingent on wind or solar production for power purchase arrangements, and payments for maintenance and utilities. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the base, non-cancelable, lease term when determining the lease assets and liabilities. Lease assets also include any prepaid lease payments and lease incentives. Operating lease assets and liabilities are included on our Consolidated Balance Sheet beginning January 1, 2019. The current portion of our operating lease liabilities is included in accrued expenses and other current liabilities and the long term portion is included in operating lease liabilities. Finance lease assets are included in property and equipment, net. Finance lease liabilities are included in accrued expenses and other current liabilities or long-term debt. Operating lease expense is recognized on a straight-line basis over the lease term. |
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 depreciate information technology assets generally 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 generally 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 gain (loss) in other income (expense), net. |
Advertising and Promotional Expenses | Advertising and Promotional Expenses |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In June 2016, the Financial Accounting Standards Board (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 with the cumulative effect of adoption recorded as an adjustment to retained earnings. The effect on our consolidated financial statements and related disclosures is not expected to be material. Recently adopted accounting pronouncements In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (Topic 842) "Leases." Topic 842 supersedes the lease requirements in Accounting Standards Codification 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 continue to be classified as either finance or operating. We adopted Topic 842 effective January 1, 2019. The most significant effects of Topic 842 were the recognition of $8.0 billion of operating lease assets and $8.4 billion of operating lease liabilities and the de-recognition of $1.5 billion of build-to-suit assets and liabilities upon adoption. We applied Topic 842 to all leases as of January 1, 2019 with comparative periods continuing to be reported under Topic 840. In the adoption of Topic 842, we carried forward the assessment from Topic 840 of whether our contracts contain or are leases, the classification of our leases, and remaining lease terms. Our accounting for finance leases remains substantially unchanged. The standard did not have a significant effect on our consolidated results of operations or cash flows. See Note 4 for further details. |
Prior Period Reclassifications | Prior Period Reclassifications Certain amounts in prior periods have been reclassified to conform with current period presentation. Hedging gains (losses), which were previously included in Google revenues, are now reported separately as a component of total revenues for all periods presented. See Note 2 for further details. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by revenue source | The following table presents our revenues disaggregated by type (in millions). Certain amounts in prior periods have been reclassified to conform with current period presentation. Year Ended December 31, 2017 2018 2019 Google Search & other $ 69,811 $ 85,296 $ 98,115 YouTube ads (1) 8,150 11,155 15,149 Google properties 77,961 96,451 113,264 Google Network Members' properties 17,616 20,010 21,547 Google advertising 95,577 116,461 134,811 Google Cloud 4,056 5,838 8,918 Google other (1) 10,914 14,063 17,014 Google revenues 110,547 136,362 160,743 Other Bets revenues 477 595 659 Hedging gains (losses) (169 ) (138 ) 455 Total revenues $ 110,855 $ 136,819 $ 161,857 (1) YouTube non-advertising revenues are included in Google other revenues. |
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, 2017 2018 2019 United States $ 52,449 47 % $ 63,269 46 % $ 74,843 46 % EMEA (1) 36,236 33 44,739 33 50,645 31 APAC (1) 16,192 15 21,341 15 26,928 17 Other Americas (1) 6,147 5 7,608 6 8,986 6 Hedging gains (losses) (169 ) 0 (138 ) 0 455 0 Total revenues $ 110,855 100 % $ 136,819 100 % $ 161,857 100 % (1) Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America (Other Americas). |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale debt securities | The following tables summarize our debt securities by significant investment categories as of December 31, 2018 and 2019 (in millions): As of December 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Marketable Level 2: Time deposits (1) $ 2,202 $ 0 $ 0 $ 2,202 $ 2,202 $ 0 Government bonds 53,634 71 (414 ) 53,291 3,717 49,574 Corporate debt securities 25,383 15 (316 ) 25,082 44 25,038 Mortgage-backed and asset-backed securities 16,918 11 (324 ) 16,605 0 16,605 Total $ 98,137 $ 97 $ (1,054 ) $ 97,180 $ 5,963 $ 91,217 As of December 31, 2019 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Level 2: Time deposits (1) $ 2,294 $ 0 $ 0 $ 2,294 $ 2,294 $ 0 Government bonds 55,033 434 (30 ) 55,437 4,518 50,919 Corporate debt securities 27,164 337 (3 ) 27,498 44 27,454 Mortgage-backed and asset-backed securities 19,453 96 (41 ) 19,508 0 19,508 Total $ 103,944 $ 867 $ (74 ) $ 104,737 $ 6,856 $ 97,881 (1) The majority of our time deposits are domestic deposits. |
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 $ 20,392 Due in 1 year through 5 years 63,151 Due in 5 years through 10 years 2,671 Due after 10 years 11,667 Total $ 97,881 |
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, 2018 and 2019 , 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, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Government bonds $ 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 ) As of December 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Government bonds $ 6,752 $ (20 ) $ 4,590 $ (10 ) $ 11,342 $ (30 ) Corporate debt securities 1,665 (2 ) 978 (1 ) 2,643 (3 ) Mortgage-backed and asset-backed securities 4,536 (13 ) 2,835 (28 ) 7,371 (41 ) Total $ 12,953 $ (35 ) $ 8,403 $ (39 ) $ 21,356 $ (74 ) |
Gains and losses on equity securities | Gains and losses reflected in other income (expense), net, for our marketable and non-marketable equity securities are summarized below (in millions): Year Ended December 31, 2018 2019 Net gain (loss) on equity securities sold during the period $ 1,458 $ (301 ) Net unrealized gain (loss) on equity securities held as of the end of the period (1) 4,002 2,950 Total gain (loss) recognized in other income (expense), net $ 5,460 $ 2,649 (1) Includes net gains of $4.1 billion and $1.8 billion related to non-marketable equity securities for the years ended December 31, 2018 and 2019 , respectively. |
Cumulative net gains on equity securities sold | Equity Securities Sold During the Year Ended December 31, 2018 2019 Total sale price $ 1,965 $ 3,134 Total initial cost 515 858 Cumulative net gains $ 1,450 $ 2,276 |
Summary of unrealized gains and losses for non-marketable equity securities | The carrying values for our marketable and non-marketable equity securities are summarized below (in millions): As of December 31, 2018 Marketable Securities Non-Marketable Securities Total Total initial cost $ 1,168 $ 8,168 $ 9,336 Cumulative net gain (1) 54 4,107 4,161 Carrying value $ 1,222 $ 12,275 $ 13,497 (1) Non-marketable securities cumulative net gain is comprised of $4.3 billion unrealized gains and $178 million unrealized losses (including impairment). As of December 31, 2019 Marketable Securities Non-Marketable Securities Total Total initial cost $ 1,935 $ 8,297 $ 10,232 Cumulative net gain (1) 1,361 3,056 4,417 Carrying value $ 3,296 $ 11,353 $ 14,649 (1) Non-marketable securities cumulative net gain is comprised of $3.5 billion unrealized gains and $445 million unrealized losses (including impairment). |
Marketable equity securities | The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2018 and 2019 (in millions): As of December 31, 2018 As of December 31, 2019 Cash and Cash Equivalents Marketable Cash and Cash Equivalents Marketable Level 1: Money market funds $ 3,493 $ 0 $ 4,604 $ 0 Marketable equity securities (1) 0 994 0 3,046 3,493 994 4,604 3,046 Level 2: Mutual funds 0 228 0 250 Total $ 3,493 $ 1,222 $ 4,604 $ 3,296 (1) The balance a s of December 31, 2019 includes investments that were reclassified from non-marketable equity securities following the initial public offering of the issuers. |
Total unrealized gain (loss) 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 (in millions): Year Ended December 31, 2018 2019 Unrealized gains $ 4,285 $ 2,163 Unrealized losses (including impairment) (178 ) (372 ) Total unrealized gain (loss) for non-marketable equity securities $ 4,107 $ 1,791 |
Schedule of derivative instruments | The fair values of our outstanding derivative instruments were as follows (in millions): 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 As of December 31, 2019 Balance Sheet Location Fair Value of Fair Value of Total Fair Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 91 $ 253 $ 344 Total $ 91 $ 253 $ 344 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 173 $ 196 $ 369 Total $ 173 $ 196 $ 369 |
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, 2017 2018 2019 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ (955 ) $ 332 $ 38 Amount excluded from the assessment of effectiveness 0 26 (14 ) Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 0 136 131 Total $ (955 ) $ 494 $ 155 The effect of derivative instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income Year Ended December 31, 2017 2018 2019 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 $ 110,855 $ 1,015 $ 136,819 $ 7,389 $ 161,857 $ 5,394 Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ (169 ) $ 0 $ (139 ) $ 0 $ 367 $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 0 0 1 0 88 0 Amount excluded from the assessment of effectiveness 0 83 0 0 0 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 197 0 (96 ) 0 (19 ) Derivatives designated as hedging instruments 0 (197 ) 0 96 0 19 Amount excluded from the assessment of effectiveness 0 23 0 37 0 25 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 0 0 78 0 243 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts Derivatives not designated as hedging instruments 0 (230 ) 0 54 0 (413 ) Total gains (losses) $ (169 ) $ (124 ) $ (138 ) $ 169 $ 455 $ (145 ) |
Offsetting assets | As of December 31, 2018 and 2019 , information related to these offsetting arrangements were as follows (in millions): Offsetting of Assets 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 As of December 31, 2019 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 $ 365 $ (21 ) $ 344 $ (88 ) (1) $ (234 ) $ 0 $ 22 (1) The balances as of December 31, 2018 and 2019 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, 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 As of December 31, 2019 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 $ 390 $ (21 ) $ 369 $ (88 ) (2) $ 0 $ 0 $ 281 (2) The balances as of December 31, 2018 and 2019 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Operating Lease Expense | Components of operating lease expense were as follows (in millions): Year Ended December 31, 2019 Operating lease cost $ 1,820 Variable lease cost 541 Total operating lease cost $ 2,361 |
Supplemental Information Related to Operating Leases | Supplemental information related to operating leases was as follows (in millions): Year Ended December 31, 2019 Cash payments for operating leases $ 1,661 New operating lease assets obtained in exchange for operating lease liabilities $ 4,391 |
Future Minimum Operating Lease Payments | Future lease payments under operating leases as of December 31, 2019 were as follows (in millions): 2020 $ 1,757 2021 1,845 2022 1,680 2023 1,508 2024 1,301 Thereafter 5,763 Total future lease payments 13,854 Less imputed interest (2,441 ) Total lease liability balance $ 11,413 |
Future Minimum Lease Payments | As of December 31, 2018, prior to the adoption of Topic 842, 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. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 (50 ) (42 ) Subtotal (1) 3,950 3,958 Total future finance lease payments 62 685 Less: imputed interest for finance leases 0 (89 ) Total long-term debt $ 4,012 $ 4,554 (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, 2019 , the aggregate future principal payments for long-term debt including long-term finance leases for each of the next five years and thereafter are as follows (in millions): 2020 $ 0 2021 1,046 2022 46 2023 46 2024 1,047 Thereafter 2,500 Total $ 4,685 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 $ 30,179 $ 39,865 Information technology assets 30,119 36,840 Construction in progress 16,838 21,036 Leasehold improvements 5,310 6,310 Furniture and fixtures 61 156 Property and equipment, gross 82,507 104,207 Less: accumulated depreciation (22,788 ) (30,561 ) Property and equipment, net $ 59,719 $ 73,646 |
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) $ 7,754 $ 9,405 Accrued customer liabilities 1,810 2,245 Accrued purchases of property and equipment 1,603 2,411 Current operating lease liabilities 0 1,199 Other accrued expenses and current liabilities 5,791 7,807 Accrued expenses and other current liabilities $ 16,958 $ 23,067 (1) Includes the effects of foreign exchange and interest. See Note 10 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, 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 ) Cumulative effect of accounting change 0 (98 ) 0 (98 ) Other comprehensive income (loss) before reclassifications (781 ) 88 264 (429 ) 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 ) (823 ) 388 (1,216 ) Balance as of December 31, 2018 (1,884 ) (688 ) 266 (2,306 ) Cumulative effect of accounting change 0 0 (30 ) (30 ) Other comprehensive income (loss) before reclassifications (119 ) 1,611 36 1,528 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (14 ) (14 ) Amounts reclassified from AOCI 0 (111 ) (299 ) (410 ) Other comprehensive income (loss) (119 ) 1,500 (277 ) 1,104 Balance as of December 31, 2019 $ (2,003 ) $ 812 $ (41 ) $ (1,232 ) |
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 2017 2018 2019 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (105 ) $ 1,190 $ 149 Benefit (provision) for income taxes 0 (279 ) (38 ) Net of tax (105 ) 911 111 Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue (169 ) (139 ) 367 Interest rate contracts Other income (expense), net 5 6 6 Benefit (provision) for income taxes 71 35 (74 ) Net of tax (93 ) (98 ) 299 Total amount reclassified, net of tax $ (198 ) $ 813 $ 410 |
Schedule of other income (expense), net | The components of other income (expense), net, were as follows (in millions): Year Ended December 31, 2017 2018 2019 Interest income $ 1,312 $ 1,878 $ 2,427 Interest expense (1) (109 ) (114 ) (100 ) Foreign currency exchange gain (loss), net (2) (121 ) (80 ) 103 Gain (loss) on debt securities, net (3) (110 ) 1,190 149 Gain (loss) on equity securities, net 73 5,460 2,649 Performance fees (4) (32 ) (1,203 ) (326 ) Gain (loss) and impairment from equity method investments, net (156 ) (120 ) 390 Other 158 378 102 Other income (expense), net $ 1,015 $ 7,389 $ 5,394 (1) Interest expense is net of interest capitalized of $48 million , $92 million , and $167 million for the years ended December 31, 2017 , 2018 , and 2019 , respectively. (2) Our foreign currency exchange gain (loss), 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 $226 million , $195 million , and $166 million for the years ended December 31, 2017 , 2018 , and 2019 , 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. (4) Performance fees were reclassified for prior periods from general and administrative expenses to other income (expense), net to conform with current period presentation. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2019 were as follows (in millions): Google Other Bets Total Consolidated 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 Acquisitions 2,353 475 2,828 Transfers 9 (9 ) 0 Foreign currency translation and other adjustments 38 (130 ) (92 ) Balance as of December 31, 2019 $ 19,921 $ 703 $ 20,624 |
Schedule of finite-lived intangible assets | Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount 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 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 4,972 $ 3,570 $ 1,402 Customer relationships 254 30 224 Trade names and other 703 350 353 Total $ 5,929 $ 3,950 $ 1,979 |
Schedule of future amortization expense | As of December 31, 2019 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows (in millions): 2020 $ 749 2021 665 2022 317 2023 57 2024 45 Thereafter 146 $ 1,979 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 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 Year Ended December 31, 2019 Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 14,846 $ 2,307 $ 17,190 Denominator Number of shares used in per share computation 299,402 46,527 346,667 Basic net income per share $ 49.59 $ 49.59 $ 49.59 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 14,846 $ 2,307 $ 17,190 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 2,307 0 0 Reallocation of undistributed earnings (126 ) (20 ) 126 Allocation of undistributed earnings $ 17,027 $ 2,287 $ 17,316 Denominator Number of shares used in basic computation 299,402 46,527 346,667 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 46,527 0 0 Restricted stock units and other contingently issuable shares 413 0 5,547 Number of shares used in per share computation 346,342 46,527 352,214 Diluted net income per share $ 49.16 $ 49.16 $ 49.16 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of restricted stock activity | The following table summarizes the activities for our unvested RSUs in Alphabet stock for the year ended December 31, 2019 : Unvested Restricted Stock Units Number of Shares Weighted- Average Grant-Date Fair Value Unvested as of December 31, 2018 18,467,678 $ 936.96 Granted 13,934,041 $ 1,092.36 Vested (11,576,766 ) $ 919.28 Forfeited/canceled (1,430,717 ) $ 990.56 Unvested as of December 31, 2019 19,394,236 $ 1,055.22 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income from continuing operations before income taxes | Income from continuing operations before income taxes consists of the following (in millions): Year Ended December 31, 2017 2018 2019 Domestic operations $ 10,680 $ 15,779 $ 16,426 Foreign operations 16,513 19,134 23,199 Total $ 27,193 $ 34,913 $ 39,625 |
Schedule of components of income tax expense (benefit) | The provision for income taxes consists of the following (in millions): Year Ended December 31, 2017 2018 2019 Current: Federal and state $ 12,608 $ 2,153 $ 2,424 Foreign 1,746 1,251 2,713 Total 14,354 3,404 5,137 Deferred: Federal and state 220 907 286 Foreign (43 ) (134 ) (141 ) Total 177 773 145 Provision for income taxes $ 14,531 $ 4,177 $ 5,282 |
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, 2017 2018 2019 U.S. federal statutory tax rate 35.0 % 21.0 % 21.0 % Foreign income taxed at different rates (14.2 ) (4.9 ) (5.6 ) Effect of the Tax Act Transition tax 37.6 (0.1 ) (0.6 ) Deferred tax effects (1.4 ) (1.2 ) 0.0 Federal research credit (1.8 ) (2.4 ) (2.5 ) Stock-based compensation expense (4.5 ) (2.2 ) (0.7 ) European Commission fines 3.5 3.1 1.0 Deferred tax asset valuation allowance 0.9 (2.0 ) 0.0 State and local income taxes 0.1 (0.4 ) 1.1 Other adjustments (1.8 ) 1.1 (0.4 ) Effective tax rate 53.4 % 12.0 % 13.3 % |
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, 2018 2019 Deferred tax assets: Stock-based compensation expense $ 291 $ 421 Accrued employee benefits 387 463 Accruals and reserves not currently deductible 902 1,047 Tax credits 1,979 3,264 Basis difference in investment in Arris 657 0 Prepaid cost sharing 597 0 Net operating losses 557 771 Operating leases 160 1,876 Other 21 390 Total deferred tax assets 5,551 8,232 Valuation allowance (2,817 ) (3,502 ) Total deferred tax assets net of valuation allowance 2,734 4,730 Deferred tax liabilities: Property and equipment, net (1,382 ) (1,798 ) Renewable energy investments (500 ) (466 ) Foreign Earnings (111 ) (373 ) Net investment gains (1,143 ) (1,074 ) Operating leases 0 (1,619 ) Other (125 ) (380 ) Total deferred tax liabilities (3,261 ) (5,710 ) Net deferred tax assets (liabilities) $ (527 ) $ (980 ) |
Summary of income tax contingencies | The following table summarizes the activity related to our gross unrecognized tax benefits (in millions): Year Ended December 31, 2017 2018 2019 Beginning gross unrecognized tax benefits $ 5,393 $ 4,696 $ 4,652 Increases related to prior year tax positions 685 321 938 Decreases related to prior year tax positions (257 ) (623 ) (143 ) Decreases related to settlement with tax authorities (1,875 ) (191 ) (2,886 ) Increases related to current year tax positions 750 449 816 Ending gross unrecognized tax benefits $ 4,696 $ 4,652 $ 3,377 |
Information about Segments an_2
Information about Segments and Geographic Areas (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 2018 2019 Revenues: Google $ 110,547 $ 136,362 $ 160,743 Other Bets 477 595 659 Hedging gains (losses) (169 ) (138 ) 455 Total revenues $ 110,855 $ 136,819 $ 161,857 Year Ended December 31, 2017 2018 2019 Operating income (loss): Google $ 32,456 $ 36,655 $ 41,673 Other Bets (2,734 ) (3,358 ) (4,824 ) Reconciling items (1) (3,544 ) (5,773 ) (2,618 ) Total income from operations $ 26,178 $ 27,524 $ 34,231 (1) Reconciling items are generally comprised of corporate administrative costs, hedging gains (losses) and other miscellaneous items that are not allocated to individual segments. Reconciling items include t he European Commission fines for the years ended December 31, 2017, 2018 and 2019, and a charge from a legal settlement for the year ended December 31, 2019. Performance fees previously included in reconciling items were reclassified for the years ended December 31, 2017 and 2018 from general and administrative expenses to other income (expense), net to conform with current period presentation. For further information on the reclassification, see Note 1. Year Ended December 31, 2017 2018 2019 Capital expenditures: Google $ 12,619 $ 25,460 $ 25,251 Other Bets 493 181 281 Reconciling items (2) 72 (502 ) (1,984 ) Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 13,184 $ 25,139 $ 23,548 (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, 2017 2018 2019 Stock-based compensation: Google $ 7,168 $ 8,755 $ 10,185 Other Bets 363 489 474 Reconciling items (3) 148 109 135 Total stock-based compensation (4) $ 7,679 $ 9,353 $ 10,794 Depreciation, amortization, and impairment: Google $ 6,608 $ 8,708 $ 11,158 Other Bets 307 327 566 Reconciling items (3) 0 0 57 Total depreciation, amortization, and impairment $ 6,915 $ 9,035 $ 11,781 (3) Reconciling items relate to corporate administrative and other costs that are not allocated to individual segments. (4) |
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 $ 74,882 $ 94,907 International 22,234 28,424 Total long-lived assets $ 97,116 $ 123,331 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | |
Advertising and promotional expenses | 6,800 | 6,400 | $ 5,100 | |
Operating lease assets | 10,941 | |||
Total lease liability balance | 11,413 | |||
Derecognition of lease liability | $ (2,534) | (3,545) | ||
Derecognition of build to suit asset | $ (59,719) | |||
Accounting Standards Update 2016-02 | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease assets | $ 8,000 | |||
Total lease liability balance | 8,400 | |||
Accounting Standards Update 2016-02 | Build-To-Suit Lease | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Derecognition of lease liability | 1,500 | |||
Derecognition of build to suit asset | $ 1,500 | |||
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 | |||
Geographic Area | Revenue | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of revenue | 100.00% | 100.00% | 100.00% | |
Geographic Area | Revenue | United States | ||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of revenue | 46.00% | 46.00% | 47.00% |
Revenues (Revenue by Segment) (
Revenues (Revenue by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 161,857 | $ 136,819 | $ 110,855 |
Hedging gains (losses) | 455 | (138) | (169) |
Segment Reporting Information [Line Items] | |||
Revenues | 160,743 | 136,362 | 110,547 |
Google | Google Search & other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 98,115 | 85,296 | 69,811 |
Google | YouTube ads | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,149 | 11,155 | 8,150 |
Google | Google Properties | |||
Segment Reporting Information [Line Items] | |||
Revenues | 113,264 | 96,451 | 77,961 |
Google | Google Network Members' properties | |||
Segment Reporting Information [Line Items] | |||
Revenues | 21,547 | 20,010 | 17,616 |
Google | Google advertising | |||
Segment Reporting Information [Line Items] | |||
Revenues | 134,811 | 116,461 | 95,577 |
Google | Google Cloud | |||
Segment Reporting Information [Line Items] | |||
Revenues | 8,918 | 5,838 | 4,056 |
Google | Other Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 17,014 | 14,063 | 10,914 |
Other Bets | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 659 | $ 595 | $ 477 |
Revenues (Revenue by Geographic
Revenues (Revenue by Geographic Location) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 161,857 | $ 136,819 | $ 110,855 |
Hedging gains (losses) | $ 455 | $ (138) | $ (169) |
Geographic Area | Revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 100.00% | 100.00% | 100.00% |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 74,843 | $ 63,269 | $ 52,449 |
United States | Geographic Area | Revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 46.00% | 46.00% | 47.00% |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 50,645 | $ 44,739 | $ 36,236 |
EMEA | Geographic Area | Revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 31.00% | 33.00% | 33.00% |
APAC | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 26,928 | $ 21,341 | $ 16,192 |
APAC | Geographic Area | Revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 17.00% | 15.00% | 15.00% |
Other Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 8,986 | $ 7,608 | $ 6,147 |
Other Americas | Geographic Area | Revenue | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of revenue | 6.00% | 6.00% | 5.00% |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenues recognized | $ 1.7 |
Transaction price allocated to remaining performance obligations | $ 11.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of revenue recognition | 24 months |
Expected timing of revenue recognition, percent | 67.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of revenue recognition | |
Expected timing of revenue recognition, percent | 33.00% |
Financial Instruments (Debt Sec
Financial Instruments (Debt Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Cash and Cash Equivalents | $ 4,604 | $ 3,493 |
Marketable Securities | 97,881 | |
Level 2 | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 103,944 | 98,137 |
Gross Unrealized Gains | 867 | 97 |
Gross Unrealized Losses | (74) | (1,054) |
Fair Value | 104,737 | 97,180 |
Cash and Cash Equivalents | 6,856 | 5,963 |
Marketable Securities | 97,881 | 91,217 |
Level 2 | Time deposits | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 2,294 | 2,202 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,294 | 2,202 |
Cash and Cash Equivalents | 2,294 | 2,202 |
Marketable Securities | 0 | 0 |
Level 2 | Government bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 55,033 | 53,634 |
Gross Unrealized Gains | 434 | 71 |
Gross Unrealized Losses | (30) | (414) |
Fair Value | 55,437 | 53,291 |
Cash and Cash Equivalents | 4,518 | 3,717 |
Marketable Securities | 50,919 | 49,574 |
Level 2 | Corporate debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 27,164 | 25,383 |
Gross Unrealized Gains | 337 | 15 |
Gross Unrealized Losses | (3) | (316) |
Fair Value | 27,498 | 25,082 |
Cash and Cash Equivalents | 44 | 44 |
Marketable Securities | 27,454 | 25,038 |
Level 2 | Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 19,453 | 16,918 |
Gross Unrealized Gains | 96 | 11 |
Gross Unrealized Losses | (41) | (324) |
Fair Value | 19,508 | 16,605 |
Cash and Cash Equivalents | 0 | 0 |
Marketable Securities | $ 19,508 | $ 16,605 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Instruments and Fair Value [Line Items] | |||
Gross realized gains on the sale of our marketable securities | $ 292 | $ 1,300 | $ 185 |
Gross realized losses on the sale of our marketable securities | 143 | 143 | 295 |
Other-than-temporary impairment losses | 0 | 0 | $ 0 |
Fair value of non-marketable equity securities | 11,353 | 12,275 | |
Equity method investments | 1,300 | 1,300 | |
Cash collateral received from derivative financial instruments | 252 | 327 | |
Foreign currency gain (loss) to be reclassified during next 12 months | 82 | ||
Cash Flow Hedging Relationship | Foreign exchange contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Notional principal | $ 13,200 | 11,800 | |
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 principal | $ 455 | 2,000 | |
Net Investment Hedges | Foreign exchange contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Notional principal | 9,300 | 6,700 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Notional principal | 43,500 | $ 20,100 | |
Valuation, Market Approach | |||
Financial Instruments and Fair Value [Line Items] | |||
Fair value of non-marketable equity securities | 7,600 | ||
Unrealized gain on equity securities | $ 1,800 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Due in 1 year | $ 20,392 |
Due in 1 year through 5 years | 63,151 |
Due in 5 years through 10 years | 2,671 |
Due after 10 years | 11,667 |
Total | $ 97,881 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 12,953 | $ 27,724 |
Less than 12 Months, Unrealized Loss | (35) | (267) |
12 Months or Greater, Fair Value | 8,403 | 43,941 |
12 Months or Greater, Unrealized Loss | (39) | (787) |
Total Fair Value | 21,356 | 71,665 |
Total Unrealized Loss | (74) | (1,054) |
Government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 6,752 | 12,019 |
Less than 12 Months, Unrealized Loss | (20) | (85) |
12 Months or Greater, Fair Value | 4,590 | 23,877 |
12 Months or Greater, Unrealized Loss | (10) | (329) |
Total Fair Value | 11,342 | 35,896 |
Total Unrealized Loss | (30) | (414) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,665 | 10,171 |
Less than 12 Months, Unrealized Loss | (2) | (107) |
12 Months or Greater, Fair Value | 978 | 11,545 |
12 Months or Greater, Unrealized Loss | (1) | (209) |
Total Fair Value | 2,643 | 21,716 |
Total Unrealized Loss | (3) | (316) |
Mortgage-backed and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,536 | 5,534 |
Less than 12 Months, Unrealized Loss | (13) | (75) |
12 Months or Greater, Fair Value | 2,835 | 8,519 |
12 Months or Greater, Unrealized Loss | (28) | (249) |
Total Fair Value | 7,371 | 14,053 |
Total Unrealized Loss | $ (41) | $ (324) |
Financial Instruments (Measurem
Financial Instruments (Measurement Alternative Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Securities, FV-NI, Gain (Loss), Alternative [Abstract] | |||
Net gain (loss) on equity securities sold during the period | $ (301) | $ 1,458 | |
Unrealized gain (loss) on equity securities held as of the end of the period | 2,950 | 4,002 | |
Total gain (loss) recognized in other income (expense), net | 2,649 | 5,460 | $ 73 |
Total unrealized gain (loss) for non-marketable equity securities | $ 1,791 | $ 4,107 |
Financial Instruments (Carrying
Financial Instruments (Carrying Amount of Equity Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Total sale price | $ 3,134 | $ 1,965 |
Total initial cost | 858 | 515 |
Cumulative net gains | 2,276 | 1,450 |
Total initial cost, Marketable Securities | 1,935 | 1,168 |
Cumulative net gain, Marketable Securities | 1,361 | 54 |
Carrying value, Marketable Securities | 3,296 | 1,222 |
Total initial cost, Non-Marketable Securities | 8,297 | 8,168 |
Cumulative net gain, Non-Marketable Securities | 3,056 | 4,107 |
Carrying value, Non-Marketable Securities | 11,353 | 12,275 |
Total initial cost | 10,232 | 9,336 |
Cumulative net gain | 4,417 | 4,161 |
Carrying value | 14,649 | 13,497 |
Cumulative net gain | 3,500 | 4,300 |
Unrealized losses (including impairment) | $ 445 | $ 178 |
Financial Instruments (Marketab
Financial Instruments (Marketable Equity Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 4,604 | $ 3,493 |
Equity securities | 3,296 | 1,222 |
Marketable Securities | 3,296 | 1,222 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 4,604 | 3,493 |
Equity securities | 3,046 | 994 |
Marketable Securities | 3,046 | 994 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 6,856 | 5,963 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 4,604 | 3,493 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 250 | $ 228 |
Financial Instruments (Non-Mark
Financial Instruments (Non-Marketable Equity Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Unrealized gains | $ 2,163 | $ 4,285 |
Unrealized losses (including impairment) | (372) | (178) |
Total unrealized gain (loss) for non-marketable equity securities | $ 1,791 | $ 4,107 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Assets: | ||
Derivative Assets | $ 365 | $ 569 |
Derivative Liabilities: | ||
Derivative Liabilities | 390 | 289 |
Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 344 | 513 |
Derivative Liabilities: | ||
Derivative Liabilities | 369 | 233 |
Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 344 | 513 |
Level 2 | Foreign exchange contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 369 | 233 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 91 | 459 |
Derivative Liabilities: | ||
Derivative Liabilities | 173 | 5 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 91 | 459 |
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 | 173 | 5 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 253 | 54 |
Derivative Liabilities: | ||
Derivative Liabilities | 196 | 228 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 253 | 54 |
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 | $ 196 | $ 228 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives in Net Investment Hedging Relationship: | |||
Revenues | $ 161,857 | $ 136,819 | $ 110,855 |
Other income (expense), net | 5,394 | 7,389 | 1,015 |
Revenues | |||
Foreign exchange contracts | |||
Total gains (losses) | 455 | (138) | (169) |
Other income (expense), net | |||
Foreign exchange contracts | |||
Total gains (losses) | (145) | 169 | (124) |
Foreign exchange contracts | |||
Derivatives in Net Investment Hedging Relationship: | |||
Total | 155 | 494 | (955) |
Foreign exchange contracts | Derivatives in Cash Flow Hedging Relationship | |||
Derivatives in Cash Flow Hedging Relationship | |||
Amount included in the assessment of effectiveness | 38 | 332 | (955) |
Amount excluded from the assessment of effectiveness | (14) | 26 | 0 |
Foreign exchange contracts | Derivatives in Cash Flow Hedging Relationship | Revenues | |||
Foreign exchange contracts | |||
Amount of gains (losses) reclassified from AOCI to income | 367 | (139) | (169) |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 88 | 1 | 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 | 0 | 83 |
Foreign exchange contracts | Derivatives in Net Investment Hedging Relationship: | |||
Derivatives in Net Investment Hedging Relationship: | |||
Amount included in the assessment of effectiveness | 131 | 136 | 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 | 243 | 78 | 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 | (19) | (96) | 197 |
Derivatives designated as hedging instruments | 19 | 96 | (197) |
Amount excluded from the assessment of effectiveness | 25 | 37 | 23 |
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 | $ (413) | $ 54 | $ (230) |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting of Assets | ||
Gross Amounts of Recognized Assets | $ 365 | $ 569 |
Gross Amounts Offset in the Consolidated Balance Sheets | (21) | (56) |
Net Presented in the Consolidated Balance Sheets | 344 | 513 |
Financial Instruments | (88) | (90) |
Cash Collateral Received | (234) | (307) |
Non-Cash Collateral Received | 0 | (14) |
Net Assets Exposed | 22 | 102 |
Offsetting of Liabilities | ||
Gross Amounts of Recognized Liabilities | 390 | 289 |
Gross Amounts Offset in the Consolidated Balance Sheets | (21) | (56) |
Net Presented in the Consolidated Balance Sheets | 369 | 233 |
Financial Instruments | (88) | (90) |
Cash Collateral Pledged | 0 | 0 |
Non-Cash Collateral Pledged | 0 | 0 |
Net Liabilities | $ 281 | $ 143 |
Leases (Components of Operating
Leases (Components of Operating Lease Expense) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,820 |
Variable lease cost | 541 |
Total operating lease cost | $ 2,361 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash payments for operating leases | $ 1,661 |
New operating lease assets obtained in exchange for operating lease liabilities | $ 4,391 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term | 10 years | ||
Weighted average discount rate | 2.80% | ||
Operating leases not yet commenced, future minimum lease payments | $ 7.4 | ||
Rent expense under operating leases | $ 1.3 | $ 1.1 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, non-cancelable lease term | 1 year | ||
Finance lease, non-cancelable lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, non-cancelable lease term | 25 years | ||
Finance lease, non-cancelable lease term | 25 years |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments - Under 840) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 1,757 |
2021 | 1,845 |
2022 | 1,680 |
2023 | 1,508 |
2024 | 1,301 |
Thereafter | 5,763 |
Total future lease payments | 13,854 |
Less imputed interest | (2,441) |
Total lease liability balance | $ 11,413 |
Leases (Future Minimum Payments
Leases (Future Minimum Payments Under Non-Cancelable Operating Leases, Along with Sublease Income Amounts - Under 840) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 1,319 |
2020 | 1,397 |
2021 | 1,337 |
2022 | 1,153 |
2023 | 980 |
Thereafter | 3,916 |
Total minimum payments | 10,102 |
Sub-lease Income | |
2019 | 16 |
2020 | 13 |
2021 | 10 |
2022 | 8 |
2023 | 3 |
Thereafter | 5 |
Total minimum payments | 55 |
Net Operating Leases | |
2019 | 1,303 |
2020 | 1,384 |
2021 | 1,327 |
2022 | 1,145 |
2023 | 977 |
Thereafter | 3,911 |
Total minimum payments | $ 10,047 |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 13 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Assets not available for use | $ 2,400 | $ 3,100 | $ 3,100 | |
Liabilities with no recourse | 909 | 1,200 | 1,200 | |
Alphabet | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Accumulated payments for other commitments | 480 | 480 | ||
Verily | Variable Interest Entity, Primary Beneficiary | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Cash received from transaction | 900 | $ 100 | ||
Amount of investment | $ 1,000 | 1,800 | ||
Verily | Variable Interest Entity, Primary Beneficiary | Onduo | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Gain from revaluation of previously held economic interest | 357 | |||
Research and Development Arrangement | AbbVie Inc | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Accumulated payments for other commitments | 1,250 | 1,250 | ||
Research and Development Arrangement | Calico | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Accumulated payments for other commitments | 500 | 500 | ||
Research commitments | 750 | 750 | ||
Commitment to Invest | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||||
Research commitments | $ 750 | $ 750 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | |||||
Apr. 30, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2016USD ($) | Feb. 28, 2014USD ($) | May 31, 2011USD ($)Tranche | |
Debt Instrument [Line Items] | ||||||
Commercial paper outstanding | $ 0 | $ 0 | ||||
Estimated fair value of long-term debt | $ 4,100,000,000 | 3,900,000,000 | ||||
3.625% Notes due on May 19, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.734% | |||||
3.375% Notes due on February 25, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.377% | |||||
1.998% Notes due on August 15, 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.231% | |||||
Unsecured debt | 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, 2019 | Dec. 31, 2018 |
Long-Term Debt | ||
Unamortized discount for the Notes above | $ (42) | $ (50) |
Subtotal | 3,958 | 3,950 |
Total future finance lease payments | 62 | |
Total future finance lease payments | 685 | |
Less: imputed interest for finance leases | (89) | |
Total long-term debt | 4,554 | 4,012 |
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, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 0 |
2021 | 1,046 |
2022 | 46 |
2023 | 46 |
2024 | 1,047 |
Thereafter | 2,500 |
Total | $ 4,685 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Property and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 82,507 | |
Property and equipment, gross | $ 104,207 | |
Less: accumulated depreciation | (22,788) | |
Less: accumulated depreciation | (30,561) | |
Property and equipment, net | 59,719 | |
Property and equipment, net | 73,646 | |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 30,179 | |
Property and equipment, gross | 39,865 | |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 30,119 | |
Property and equipment, gross | 36,840 | |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 21,036 | 16,838 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 6,310 | 5,310 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 156 | 61 |
Information technology assets and land and buildings held under finance leases | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 648 | |
Property and equipment, gross | $ 1,600 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Components Disclosure [Abstract] | ||
European Commission fines | $ 9,405 | $ 7,754 |
Accrued customer liabilities | 2,245 | 1,810 |
Accrued purchases of property and equipment | 2,411 | 1,603 |
Current operating lease liabilities | 1,199 | |
Other accrued expenses and current liabilities | 7,807 | 5,791 |
Accrued expenses and other current liabilities | $ 23,067 | $ 16,958 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | $ 177,628 | $ 152,502 | $ 139,036 | |||
Cumulative effect of accounting change | $ (34) | $ (697) | $ (15) | |||
Other comprehensive income (loss) before reclassifications | 1,528 | (429) | 1,212 | |||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | (14) | 26 | ||||
Amounts reclassified from AOCI | (410) | (813) | 198 | |||
Other comprehensive income (loss) | 1,104 | (1,216) | 1,410 | |||
Ending Balance | 201,442 | 177,628 | 152,502 | |||
Foreign Currency Translation Adjustments | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (1,884) | (1,103) | (2,646) | |||
Other comprehensive income (loss) before reclassifications | (119) | (781) | 1,543 | |||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 | ||||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Other comprehensive income (loss) | (119) | (781) | 1,543 | |||
Ending Balance | (2,003) | (1,884) | (1,103) | |||
Unrealized Gains (Losses) on Available-for-Sale Investments | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (688) | 233 | (179) | |||
Other comprehensive income (loss) before reclassifications | 1,611 | 88 | 307 | |||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 | ||||
Amounts reclassified from AOCI | (111) | (911) | 105 | |||
Other comprehensive income (loss) | 1,500 | (823) | 412 | |||
Ending Balance | 812 | (688) | 233 | |||
Unrealized Gains (Losses) on Cash Flow Hedges | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | 266 | (122) | 423 | |||
Other comprehensive income (loss) before reclassifications | 36 | 264 | (638) | |||
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | (14) | 26 | ||||
Amounts reclassified from AOCI | (299) | 98 | 93 | |||
Other comprehensive income (loss) | (277) | 388 | (545) | |||
Ending Balance | (41) | 266 | (122) | |||
Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (2,306) | (992) | (2,402) | |||
Cumulative effect of accounting change | (30) | (98) | ||||
Ending Balance | $ (1,232) | $ (2,306) | $ (992) | |||
Accounting Standards Update 2016-01 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Cumulative effect of accounting change | (98) | |||||
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustments | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Cumulative effect of accounting change | 0 | |||||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Available-for-Sale Investments | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Cumulative effect of accounting change | (98) | |||||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Cash Flow Hedges | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Cumulative effect of accounting change | $ 0 | |||||
Accounting Standards Update 2018-02 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Cumulative effect of accounting change | (30) | |||||
Accounting Standards Update 2018-02 | Foreign Currency Translation Adjustments | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Cumulative effect of accounting change | 0 | |||||
Accounting Standards Update 2018-02 | Unrealized Gains (Losses) on Available-for-Sale Investments | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Cumulative effect of accounting change | 0 | |||||
Accounting Standards Update 2018-02 | Unrealized Gains (Losses) on Cash Flow Hedges | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Cumulative effect of accounting change | $ (30) |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenues | $ 161,857 | $ 136,819 | $ 110,855 |
Other income (expense), net | 5,394 | 7,389 | 1,015 |
Benefit (provision) for income taxes | (5,282) | (4,177) | (14,531) |
Net of tax | 34,343 | 30,736 | 12,662 |
Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net of tax | 410 | 813 | (198) |
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 | 149 | 1,190 | (105) |
Benefit (provision) for income taxes | (38) | (279) | 0 |
Net of tax | 111 | 911 | (105) |
Reclassification out of AOCI | Unrealized Gains (Losses) on Cash Flow Hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Benefit (provision) for income taxes | (74) | 35 | 71 |
Net of tax | 299 | (98) | (93) |
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 | 367 | (139) | (169) |
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 | $ 6 | $ 5 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information (Components of Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance Sheet Components Disclosure [Abstract] | |||
Interest income | $ 2,427 | $ 1,878 | $ 1,312 |
Interest expense | (100) | (114) | (109) |
Foreign currency exchange gain (loss), net | 103 | (80) | (121) |
Gain (loss) on debt securities, net | 149 | 1,190 | (110) |
Gain (loss) on equity securities, net | 2,649 | 5,460 | 73 |
Performance fees | (326) | (1,203) | (32) |
Gain (loss) and impairment from equity method investments, net | 390 | (120) | (156) |
Other | 102 | 378 | 158 |
Other income (expense), net | 5,394 | 7,389 | 1,015 |
Interest capitalized | 167 | 92 | 48 |
Foreign currency transaction losses | $ 166 | 195 | $ 226 |
Unrealized gain on reclassification of securities | $ 1,300 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Nov. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 20,624 | $ 20,624 | $ 17,888 | $ 16,747 | |
Patents and developed technology | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible assets, weighted-average useful life | 3 years 6 months | ||||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible assets, weighted-average useful life | 6 years 3 months 18 days | ||||
Trade names and other | |||||
Business Acquisition [Line Items] | |||||
Acquired intangible assets, weighted-average useful life | 4 years 6 months | ||||
Looker | |||||
Business Acquisition [Line Items] | |||||
Total acquisition price | 2,400 | ||||
Cash acquired | 91 | $ 91 | |||
Acquired intangible assets | 290 | 290 | |||
Goodwill | 1,900 | 1,900 | |||
Net assets acquired | 48 | 48 | |||
Series of individually immaterial business acquisitions | |||||
Business Acquisition [Line Items] | |||||
Cash acquired | 28 | 28 | |||
Acquired intangible assets | 282 | 282 | |||
Goodwill | 904 | 904 | |||
Total consideration | 1,000 | ||||
Liabilities assumed | $ 185 | $ 185 | |||
Fitbit | |||||
Business Acquisition [Line Items] | |||||
Business acquisition (usd per share) | $ 7.35 | ||||
Total valuation at date of agreement | $ 2,100 |
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, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning of Period | $ 17,888 | $ 16,747 |
Acquisitions | 2,828 | 1,227 |
Transfers | 0 | 0 |
Foreign currency translation and other adjustments | (92) | (86) |
Goodwill, End of Period | 20,624 | 17,888 |
Goodwill [Roll Forward] | ||
Goodwill, Beginning of Period | 17,521 | 16,295 |
Acquisitions | 2,353 | 1,227 |
Transfers | 9 | 80 |
Foreign currency translation and other adjustments | 38 | (81) |
Goodwill, End of Period | 19,921 | 17,521 |
Other Bets | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning of Period | 367 | 452 |
Acquisitions | 475 | 0 |
Transfers | (9) | (80) |
Foreign currency translation and other adjustments | (130) | (5) |
Goodwill, End of Period | $ 703 | $ 367 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,929 | $ 6,177 |
Accumulated Amortization | 3,950 | 3,957 |
Net Carrying Amount | 1,979 | 2,220 |
Patents and developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,972 | 5,125 |
Accumulated Amortization | 3,570 | 3,394 |
Net Carrying Amount | 1,402 | 1,731 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 254 | 349 |
Accumulated Amortization | 30 | 308 |
Net Carrying Amount | 224 | 41 |
Trade names and other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 703 | 703 |
Accumulated Amortization | 350 | 255 |
Net Carrying Amount | $ 353 | $ 448 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Patents and developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 2 years 3 months 18 days | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 5 years 7 months 6 days | ||
Trade names and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average useful life | 3 years | ||
Acquisition-related intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of acquisition-related intangible assets | $ 795 | $ 865 | $ 796 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2020 | $ 749 |
2021 | 665 |
2022 | 317 |
2023 | 57 |
2024 | 45 |
Thereafter | 146 |
Total | $ 1,979 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions, € in Billions | Mar. 20, 2019USD ($) | Mar. 20, 2019EUR (€) | Jun. 27, 2017USD ($) | Jun. 27, 2017EUR (€) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
Other non-cancelable contractual obligations | $ 5,700 | ||||||||||
European Commission fines | $ 1,697 | $ 5,071 | $ 2,736 | ||||||||
Unfavorable Regulatory Action | |||||||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||||||
European Commission fines | $ 1,700 | € 1.5 | $ 2,700 | € 2.4 | $ 1,700 | $ 5,100 | € 4.3 | $ 2,700 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | 12 Months Ended | |||||
Dec. 31, 2019USD ($)voteclass$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Jul. 31, 2019USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | |
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 | $ | $ 18,396,000,000 | $ 9,075,000,000 | $ 4,846,000,000 | |||
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 | $ | $ 25,000,000,000 | $ 12,500,000,000 | $ 8,600,000,000 | |||
Repurchases of capital stock (in shares) | 15,300,000 | 8,200,000 | ||||
Repurchases of capital stock | $ | $ 18,400,000,000 | $ 9,100,000,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Denominator | |||
Basic net income per share (in dollars per share) | $ 49.59 | $ 44.22 | $ 18.27 |
Weighted-average effect of dilutive securities | |||
Diluted net income per share (in dollars per share) | $ 49.16 | $ 43.70 | $ 18 |
Class A Common Stock | |||
Numerator | |||
Allocation of undistributed earnings | $ 14,846 | $ 13,200 | $ 5,438 |
Denominator | |||
Number of shares used in basic computation (in shares) | 299,402 | 298,548 | 297,604 |
Basic net income per share (in dollars per share) | $ 49.59 | $ 44.22 | $ 18.27 |
Numerator | |||
Allocation of undistributed earnings for basic computation | $ 14,846 | $ 13,200 | $ 5,438 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 2,307 | 2,072 | 862 |
Reallocation of undistributed earnings | (126) | (146) | (74) |
Allocation of undistributed earnings | $ 17,027 | $ 15,126 | $ 6,226 |
Denominator | |||
Number of shares used in basic computation (in shares) | 299,402 | 298,548 | 297,604 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 46,527 | 46,864 | 47,146 |
Restricted stock units and other contingently issuable shares (in shares) | 413 | 689 | 1,192 |
Number of shares used in per share computation (in shares) | 346,342 | 346,101 | 345,942 |
Diluted net income per share (in dollars per share) | $ 49.16 | $ 43.70 | $ 18 |
Class B Common Stock | |||
Numerator | |||
Allocation of undistributed earnings | $ 2,307 | $ 2,072 | $ 862 |
Denominator | |||
Number of shares used in basic computation (in shares) | 46,527 | 46,864 | 47,146 |
Basic net income per share (in dollars per share) | $ 49.59 | $ 44.22 | $ 18.27 |
Numerator | |||
Allocation of undistributed earnings for basic computation | $ 2,307 | $ 2,072 | $ 862 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | (20) | (24) | (14) |
Allocation of undistributed earnings | $ 2,287 | $ 2,048 | $ 848 |
Denominator | |||
Number of shares used in basic computation (in shares) | 46,527 | 46,864 | 47,146 |
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) | 46,527 | 46,864 | 47,146 |
Diluted net income per share (in dollars per share) | $ 49.16 | $ 43.70 | $ 18 |
Class C Capital Stock | |||
Numerator | |||
Allocation of undistributed earnings | $ 17,190 | $ 15,464 | $ 6,362 |
Denominator | |||
Number of shares used in basic computation (in shares) | 346,667 | 349,728 | 348,151 |
Basic net income per share (in dollars per share) | $ 49.59 | $ 44.22 | $ 18.27 |
Numerator | |||
Allocation of undistributed earnings for basic computation | $ 17,190 | $ 15,464 | $ 6,362 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | 126 | 146 | 74 |
Allocation of undistributed earnings | $ 17,316 | $ 15,610 | $ 6,436 |
Denominator | |||
Number of shares used in basic computation (in shares) | 346,667 | 349,728 | 348,151 |
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) | 5,547 | 7,456 | 9,491 |
Number of shares used in per share computation (in shares) | 352,214 | 357,184 | 357,642 |
Diluted net income per share (in dollars per share) | $ 49.16 | $ 43.70 | $ 18 |
Compensation Plans (Stock Plans
Compensation Plans (Stock Plans) (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Stock Plans | |
Shares reserved for future issuance (in shares) | 37,982,435 |
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 Billions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Total stock-based compensation expense | $ 11.7 | $ 10 | $ 7.9 |
Stock-based compensation expense, awards we expect to settle in Alphabet stock | 10.8 | 9.4 | 7.7 |
Tax benefits on total stock-based compensation expense | 1.8 | 1.5 | 1.6 |
Tax benefit realized related to awards vested or exercised | $ 2.2 | $ 2.1 | $ 2.7 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Unvested at beginning of period (in shares) | 18,467,678 | ||
Granted (in shares) | 13,934,041 | ||
Vested (in shares) | (11,576,766) | ||
Forfeited/canceled (in shares) | (1,430,717) | ||
Unvested at end of period (in shares) | 19,394,236 | 18,467,678 | |
Weighted- Average Grant-Date Fair Value | |||
Unvested at beginning of period (in dollars per share) | $ 936.96 | ||
Granted (in dollars per share) | 1,092.36 | $ 1,095.89 | $ 845.06 |
Vested (in dollars per share) | 919.28 | ||
Forfeited/canceled (in dollars per share) | 990.56 | ||
Unvested at end of period (in dollars per share) | $ 1,055.22 | $ 936.96 | |
Fair value of vested awards | $ 15.2 | $ 14.1 | $ 11.3 |
Unrecognized compensation cost | $ 19.1 | ||
Period for recognized of unrecognized compensation cost | 2 years 7 months 6 days |
Compensation Plans (401k Plans
Compensation Plans (401k Plans and Performance Fees) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Share-based Payment Arrangement [Abstract] | |||
Number of 401(k) plans (in plan) | plan | 2 | ||
401(k) savings plan employer contribution | $ | $ 724 | $ 691 | $ 448 |
Income Taxes (Income From Conti
Income Taxes (Income From Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ 16,426 | $ 15,779 | $ 10,680 |
Foreign operations | 23,199 | 19,134 | 16,513 |
Total | $ 39,625 | $ 34,913 | $ 27,193 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)jurisdiction | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Income Taxes [Line Items] | ||||
Provisional amount for one-time transitional tax liability | $ 10,200 | |||
Deferred tax benefit reflecting reduced U.S. tax rate | 376 | |||
Cumulative net tax benefit reversal | $ 5,282 | $ 4,177 | 14,531 | |
Net tax credit carryforwards | 3,000 | |||
Total unrecognized tax benefits | 3,377 | 4,652 | 4,696 | $ 5,393 |
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate | 2,300 | 2,900 | $ 3,000 | |
Uncertain tax positions, accrued interest and penalties | $ 130 | $ 490 | ||
Number of tax jurisdictions | jurisdiction | 2 | |||
Cost Sharing Arrangement, Income Tax Expense | ||||
Income Taxes [Line Items] | ||||
Cumulative net tax benefit reversal | $ 418 | |||
Federal | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 1,800 | |||
State | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 3,100 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 1,900 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal and state | $ 2,424 | $ 2,153 | $ 12,608 |
Foreign | 2,713 | 1,251 | 1,746 |
Total | 5,137 | 3,404 | 14,354 |
Deferred: | |||
Federal and state | 286 | 907 | 220 |
Foreign | (141) | (134) | (43) |
Total | 145 | 773 | 177 |
Provision for income taxes | $ 5,282 | $ 4,177 | $ 14,531 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 35.00% |
Foreign income taxed at different rates | (5.60%) | (4.90%) | (14.20%) |
Effect of the Tax Act | |||
Transition tax | (0.006) | (0.001) | 0.376 |
Deferred tax effects | 0.00% | (1.20%) | (1.40%) |
Federal research credit | (2.50%) | (2.40%) | (1.80%) |
Stock-based compensation expense | (0.70%) | (2.20%) | (4.50%) |
European Commission fines | 1.00% | 3.10% | 3.50% |
Deferred tax asset valuation allowance | 0.00% | (2.00%) | 0.90% |
State and local income taxes | 1.10% | (0.40%) | 0.10% |
Other adjustments | (0.40%) | 1.10% | (1.80%) |
Effective tax rate | 13.30% | 12.00% | 53.40% |
Income Taxes (Significant Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Stock-based compensation expense | $ 421 | $ 291 |
Accrued employee benefits | 463 | 387 |
Accruals and reserves not currently deductible | 1,047 | 902 |
Tax credits | 3,264 | 1,979 |
Basis difference in investment in Arris | 0 | 657 |
Prepaid cost sharing | 0 | 597 |
Net operating losses | 771 | 557 |
Operating leases | 1,876 | 160 |
Other | 390 | 21 |
Total deferred tax assets | 8,232 | 5,551 |
Valuation allowance | (3,502) | (2,817) |
Total deferred tax assets net of valuation allowance | 4,730 | 2,734 |
Deferred tax liabilities: | ||
Property and equipment, net | (1,798) | (1,382) |
Renewable energy investments | (466) | (500) |
Foreign Earnings | (373) | (111) |
Net investment gains | (1,074) | (1,143) |
Operating leases | (1,619) | |
Other | (380) | (125) |
Total deferred tax liabilities | (5,710) | (3,261) |
Deferred tax liabilities, net | $ (980) | $ (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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 4,652 | $ 4,696 | $ 5,393 |
Increases related to prior year tax positions | 938 | 321 | 685 |
Decreases related to prior year tax positions | (143) | (623) | (257) |
Decreases related to settlement with tax authorities | (2,886) | (191) | (1,875) |
Increases related to current year tax positions | 816 | 449 | 750 |
Ending Balance | $ 3,377 | $ 4,652 | $ 4,696 |
Information about Segments an_3
Information about Segments and Geographic Areas (Revenue by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 161,857 | $ 136,819 | $ 110,855 |
Hedging gains (losses) | 455 | (138) | (169) |
Segment Reporting Information [Line Items] | |||
Revenues | 160,743 | 136,362 | 110,547 |
Other Bets | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 659 | $ 595 | $ 477 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | $ 34,231 | $ 27,524 | $ 26,178 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | 41,673 | 36,655 | 32,456 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | (4,824) | (3,358) | (2,734) |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Segment operating income / (loss) | $ (2,618) | $ (5,773) | $ (3,544) |
Information about Segments an_5
Information about Segments and Geographic Areas (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 23,548 | $ 25,139 | $ 13,184 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 25,251 | 25,460 | 12,619 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 281 | 181 | 493 |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ (1,984) | $ (502) | $ 72 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | $ 10,794 | $ 9,353 | $ 7,679 |
Depreciation, amortization and impairment | 11,781 | 9,035 | 6,915 |
Operating Segments | Google | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 10,185 | 8,755 | 7,168 |
Depreciation, amortization and impairment | 11,158 | 8,708 | 6,608 |
Operating Segments | Other Bets | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 474 | 489 | 363 |
Depreciation, amortization and impairment | 566 | 327 | 307 |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | 135 | 109 | 148 |
Depreciation, amortization and impairment | $ 57 | $ 0 | $ 0 |
Information about Segments an_7
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 123,331 | $ 97,116 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 94,907 | 74,882 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 28,424 | $ 22,234 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 729 | $ 674 | $ 467 |
Additions | 1,481 | 1,115 | 1,131 |
Usage | (1,457) | (1,060) | (924) |
Balance at End of Year | $ 753 | $ 729 | $ 674 |
Uncategorized Items - goog10-k2
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (15,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (599,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,000,000) |