Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 21, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37580 | |
Entity Registrant Name | Alphabet Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1767919 | |
Entity Address, Address Line One | 1600 Amphitheatre Parkway | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94043 | |
City Area Code | 650 | |
Local Phone Number | 253-0000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001652044 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, $0.001 par value | |
Trading Symbol | GOOGL | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 300,050,444 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 46,407,491 | |
Class C Capital Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class C Capital Stock, $0.001 par value | |
Trading Symbol | GOOG | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 336,162,278 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 19,644 | $ 18,498 |
Marketable securities | 97,585 | 101,177 |
Total cash, cash equivalents, and marketable securities | 117,229 | 119,675 |
Accounts receivable, net | 21,825 | 25,326 |
Income taxes receivable, net | 1,910 | 2,166 |
Inventory | 889 | 999 |
Other current assets | 5,165 | 4,412 |
Total current assets | 147,018 | 152,578 |
Non-marketable investments | 12,367 | 13,078 |
Deferred income taxes | 730 | 721 |
Property and equipment, net | 76,747 | 73,646 |
Operating lease assets | 11,219 | 10,941 |
Intangible assets, net | 1,840 | 1,979 |
Goodwill | 20,734 | 20,624 |
Other non-current assets | 2,748 | 2,342 |
Total assets | 273,403 | 275,909 |
Current liabilities: | ||
Accounts payable | 4,099 | 5,561 |
Accrued compensation and benefits | 5,656 | 8,495 |
Accrued expenses and other current liabilities | 22,601 | 23,067 |
Accrued revenue share | 4,982 | 5,916 |
Deferred revenue | 1,938 | 1,908 |
Income taxes payable, net | 913 | 274 |
Total current liabilities | 40,189 | 45,221 |
Long-term debt | 5,016 | 4,554 |
Deferred revenue, non-current | 350 | 358 |
Income taxes payable, non-current | 9,207 | 9,885 |
Deferred income taxes | 2,079 | 1,701 |
Operating lease liabilities | 10,476 | 10,214 |
Other long-term liabilities | 2,427 | 2,534 |
Total liabilities | 69,744 | 74,467 |
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); 688,335 (Class A 299,828, Class B 46,441, Class C 342,066) and 683,972 (Class A 300,047, Class B 46,407, Class C 337,518) shares issued and outstanding | 53,688 | 50,552 |
Accumulated other comprehensive loss | (1,097) | (1,232) |
Retained earnings | 151,068 | 152,122 |
Total stockholders’ equity | 203,659 | 201,442 |
Total liabilities and stockholders’ equity | $ 273,403 | $ 275,909 |
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
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) | 683,972,000 | 688,335,000 |
Common stock and capital stock, shares outstanding (in shares) | 683,972,000 | 688,335,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Stockholders’ equity: | ||
Convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock and capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock and capital stock, shares authorized (in shares) | 15,000,000,000 | 15,000,000,000 |
Common stock and capital stock, shares issued (in shares) | 683,972,000 | 688,335,000 |
Common stock and capital stock, shares outstanding (in shares) | 683,972,000 | 688,335,000 |
Class A Common Stock | ||
Stockholders’ equity: | ||
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) | 300,047,000 | 299,828,000 |
Common stock and capital stock, shares outstanding (in shares) | 300,047,000 | 299,828,000 |
Class B Common Stock | ||
Stockholders’ equity: | ||
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) | 46,407,000 | 46,441,000 |
Common stock and capital stock, shares outstanding (in shares) | 46,407,000 | 46,441,000 |
Class C Capital Stock | ||
Stockholders’ equity: | ||
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) | 337,518,000 | 342,066,000 |
Common stock and capital stock, shares outstanding (in shares) | 337,518,000 | 342,066,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 41,159 | $ 36,339 |
Costs and expenses: | ||
Cost of revenues | 18,982 | 16,012 |
Research and development | 6,820 | 6,029 |
Sales and marketing | 4,500 | 3,905 |
General and administrative | 2,880 | 2,088 |
European Commission fines | 0 | 1,697 |
Total costs and expenses | 33,182 | 29,731 |
Income from operations | 7,977 | 6,608 |
Other income (expense), net | (220) | 1,538 |
Income before income taxes | 7,757 | 8,146 |
Provision for income taxes | 921 | 1,489 |
Net income | $ 6,836 | $ 6,657 |
Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 9.96 | $ 9.58 |
Diluted net income per share of Class A and B common stock and Class C capital stock (in dollars per share) | $ 9.87 | $ 9.50 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6,836 | $ 6,657 |
Other comprehensive income: | ||
Change in foreign currency translation adjustment | (550) | (36) |
Available-for-sale investments: | ||
Change in net unrealized gains (losses) | 498 | 719 |
Less: reclassification adjustment for net (gains) losses included in net income | (169) | 7 |
Net change (net of tax effect of $88 and $81) | 329 | 726 |
Cash flow hedges: | ||
Change in net unrealized gains (losses) | 378 | (30) |
Less: reclassification adjustment for net (gains) losses included in net income | (22) | (104) |
Net change (net of tax effect of $1 and $81) | 356 | (134) |
Other comprehensive income | 135 | 556 |
Comprehensive income | $ 6,971 | $ 7,213 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Tax expense (benefit) related to available-for-sale investments | $ (81) | $ (88) |
Tax expense (benefit) related to cash flow hedges | $ (81) | $ 1 |
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 (in shares) at Dec. 31, 2018 | 695,556 | |||
Beginning Balance at Dec. 31, 2018 | $ 177,628 | $ 45,049 | $ (2,306) | $ 134,885 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common and capital stock issued (in shares) | 1,912 | |||
Common and capital stock issued | 39 | $ 39 | ||
Stock-based compensation expense | 2,788 | 2,788 | ||
Tax withholding related to vesting of restricted stock units and other | (1,184) | $ (1,184) | ||
Repurchases of capital stock (in shares) | (2,686) | |||
Repurchases of capital stock | (3,025) | $ (207) | (2,818) | |
Sale of interest in consolidated entities | 47 | $ 47 | ||
Net income | 6,657 | 6,657 | ||
Other comprehensive income (loss) | 556 | 556 | ||
Ending Balance (in shares) at Mar. 31, 2019 | 694,782 | |||
Ending Balance at Mar. 31, 2019 | 183,472 | $ 46,532 | (1,780) | 138,720 |
Beginning Balance (in shares) at Dec. 31, 2019 | 688,335 | |||
Beginning Balance at Dec. 31, 2019 | 201,442 | $ 50,552 | (1,232) | 152,122 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common and capital stock issued (in shares) | 2,125 | |||
Common and capital stock issued | 106 | $ 106 | ||
Stock-based compensation expense | 3,222 | 3,222 | ||
Tax withholding related to vesting of restricted stock units and other | (1,179) | $ (1,179) | ||
Repurchases of capital stock (in shares) | (6,488) | |||
Repurchases of capital stock | (8,496) | $ (606) | (7,890) | |
Sale of interest in consolidated entities | 1,593 | $ 1,593 | ||
Net income | 6,836 | 6,836 | ||
Other comprehensive income (loss) | 135 | 135 | ||
Ending Balance (in shares) at Mar. 31, 2020 | 683,972 | |||
Ending Balance at Mar. 31, 2020 | $ 203,659 | $ 53,688 | $ (1,097) | $ 151,068 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 6,836 | $ 6,657 |
Adjustments: | ||
Depreciation and impairment of property and equipment | 2,899 | 2,416 |
Amortization and impairment of intangible assets | 209 | 197 |
Stock-based compensation expense | 3,191 | 2,769 |
Deferred income taxes | 175 | (73) |
(Gain) loss on debt and equity securities, net | 802 | (1,081) |
Other | 297 | 22 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 2,602 | 1,172 |
Income taxes, net | (245) | 1,068 |
Other assets | (115) | (265) |
Accounts payable | (835) | (425) |
Accrued expenses and other liabilities | (3,531) | (229) |
Accrued revenue share | (871) | (147) |
Deferred revenue | 37 | (81) |
Net cash provided by operating activities | 11,451 | 12,000 |
Investing activities | ||
Purchases of property and equipment | (6,005) | (4,638) |
Purchases of marketable securities | (37,563) | (20,883) |
Maturities and sales of marketable securities | 41,811 | 21,006 |
Purchases of non-marketable investments | (572) | (907) |
Maturities and sales of non-marketable investments | 260 | 99 |
Acquisitions, net of cash acquired, and purchases of intangible assets | (190) | (99) |
Other investing activities | 412 | 34 |
Net cash used in investing activities | (1,847) | (5,388) |
Financing activities | ||
Net payments related to stock-based award activities | (1,241) | (1,175) |
Repurchases of capital stock | (8,496) | (3,025) |
Proceeds from issuance of debt, net of costs | 1,898 | 315 |
Repayments of debt | (1,947) | (345) |
Proceeds from sale of interest in consolidated entities | 1,600 | 47 |
Net cash used in financing activities | (8,186) | (4,183) |
Effect of exchange rate changes on cash and cash equivalents | (272) | 18 |
Net increase in cash and cash equivalents | 1,146 | 2,447 |
Cash and cash equivalents at beginning of period | 18,498 | 16,701 |
Cash and cash equivalents at end of period | $ 19,644 | $ 19,148 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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. All intercompany balances and transactions have been eliminated. Unaudited Interim Financial Information The Consolidated Balance Sheet as of March 31, 2020, the Consolidated Statements of Income for the three months ended March 31, 2019 and 2020, the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2020, the Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2019 and 2020 and the Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2020 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of March 31, 2020, our results of operations for the three months ended March 31, 2019 and 2020, and our cash flows for the three months ended March 31, 2019 and 2020. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC. Use of Estimates Preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the allowance for credit losses, 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. As of March 31, 2020, the impact of the outbreak of COVID-19 continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods. Accounts Receivable Our payment terms for accounts receivable 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 customers, we require payment before the products or services are delivered to the customer. We maintain an allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the Consolidated Statements of Income. We assess collectibility by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. In determining the amount of the allowance for credit losses, we consider historical collectibility based on past due status and make judgments about the creditworthiness of customers based on ongoing credit evaluations. We also consider customer-specific information, current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. For the three months ended March 31, 2020, our assessment considered business and market disruptions caused by COVID-19 and estimates of expected emerging credit and collectibility trends. The continued volatility in market conditions and evolving shifts in credit trends are difficult to predict causing variability and volatility that may have a material impact on our allowance for credit losses in future periods. The allowance for credit losses on accounts receivable was $275 million and $717 million as of December 31, 2019 and March 31, 2020, respectively. Recently Adopted Accounting Pronouncements 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 certain 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 result in earlier recognition of credit losses. We adopted ASU 2016-13 using the modified retrospective approach as of January 1, 2020. The cumulative effect upon adoption was not material to our consolidated financial statements. See Note 3 for the effect on our consolidated financial statements for the three months ended March 31, 2020. 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
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregated Revenues The following table presents our revenues disaggregated by revenue source (in millions, unaudited). Certain amounts in prior periods have been reclassified to conform with current period presentation. Three Months Ended March 31, 2019 2020 Google Search & other $ 22,547 $ 24,502 YouTube ads (1) 3,025 4,038 Google properties 25,572 28,540 Google Network Members' properties 5,015 5,223 Google advertising 30,587 33,763 Google Cloud 1,825 2,777 Google other (1) 3,620 4,435 Google revenues 36,032 40,975 Other Bets revenues 170 135 Hedging gains (losses) 137 49 Total revenues $ 36,339 $ 41,159 (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, unaudited): Three Months Ended March 31, 2019 2020 United States $ 16,532 45 % $ 18,870 46 % EMEA (1) 11,668 33 12,845 31 APAC (1) 6,096 17 7,238 18 Other Americas (1) 1,906 5 2,157 5 Hedging gains (losses) 137 0 49 0 Total revenues $ 36,339 100 % $ 41,159 100 % (1) Regions represent Europe, the Middle East, and Africa ("EMEA"); Asia-Pacific ("APAC"); and Canada and Latin America ("Other Americas"). 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 three months ended March 31, 2020 was primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.0 billion of revenues recognized that were included in the deferred revenue balance as of December 31, 2019. 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 March 31, 2020, the amount not yet recognized in revenue from these commitments is $12.8 billion, which reflects our assessment of relevant contract terms and expectations of our customers’ intent and ability to utilize our services. 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 half 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. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Debt Securities We classify and account for our marketable debt securities as available-for-sale and carry these securities at fair value. We report the unrealized gains and losses, net of taxes, as a component of stockholders' equity, except for certain unrealized gains and losses recorded in other income (expense), net, described below. For debt securities in an unrealized loss position, we determine whether a credit loss exists. The estimate of credit loss is determined by considering available information relevant to the collectibility of the security and information about past events, current conditions, and reasonable and supportable forecasts. The allowance for credit loss is recorded as a charge to other income (expense), net, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the credit loss at a security level is recognized in accumulated other comprehensive income ("AOCI"). We assess expected credit losses at the end of each reporting period and adjust the allowance through other income (expense), net. For certain debt securities we have elected the fair value option for which changes in fair value are recorded in other income (expense), net. The fair value option was elected for these securities to align with the unrealized gains and losses from related derivative contracts. Unrealized net loss related to debt securities still held where we have elected the fair value option was $9 million for the period ended March 31, 2020. As of March 31, 2020 the fair value was $1.9 billion. Balances prior to the period ended March 31, 2020 were not material. 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, for which we did not elect the fair value option, by significant investment categories as of December 31, 2019 and March 31, 2020 (in millions): As of December 31, 2019 Adjusted Gross Gross Fair Cash and Cash 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 As of March 31, 2020 Adjusted Gross Gross Fair Cash and Cash Marketable (unaudited) Level 2: Time deposits (1) $ 2,195 $ 0 $ 0 $ 2,195 $ 2,195 $ 0 Government bonds 50,350 1,162 (50) 51,462 3,668 47,794 Corporate debt securities 26,545 154 (360) 26,339 13 26,326 Mortgage-backed and asset-backed securities 18,576 287 (91) 18,772 0 18,772 Total $ 97,666 $ 1,603 $ (501) $ 98,768 $ 5,876 $ 92,892 (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 $46 million and $257 million for the three months ended March 31, 2019 and 2020, respectively. We recognized gross realized losses of $48 million and $39 million for the three months ended March 31, 2019 and 2020, respectively. We reflect these gains and losses as a component of other income (expense), net. 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, unaudited): As of Due in 1 year $ 24,209 Due in 1 year through 5 years 54,662 Due in 5 years through 10 years 3,080 Due after 10 years 12,820 Total $ 94,771 The following tables present fair values and gross unrealized losses recorded to AOCI as of December 31, 2019 and March 31, 2020, 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, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized 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) As of March 31, 2020 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (unaudited) Government bonds $ 4,168 $ (50) $ 79 $ 0 $ 4,247 $ (50) Corporate debt securities 15,561 (232) 113 (1) 15,674 (233) Mortgage-backed and asset-backed securities 4,796 (85) 326 (6) 5,122 (91) Total $ 24,525 $ (367) $ 518 $ (7) $ 25,043 $ (374) During the three months ended March 31, 2020, for marketable debt securities, we recognized credit losses of $127 million, and the ending allowance for credit losses was $127 million. See Note 7 for further details on other income (expense), net. 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). We qualitatively assess whether indicators of impairment exist. Factors considered in our assessment include the companies’ financial and liquidity position, access to capital resources, exposure to industries and markets impacted by COVID-19, and the time since the last adjustment to fair value, among others. If the assessment indicates that the investment is impaired, we estimate the fair value by using the best information available, which may include cash flow projections or other available market data. The effect of COVID-19 on our impairment assessment requires significant judgment due to the uncertainty around the impact. All gains and losses, realized and unrealized, and impairments on non-marketable equity securities 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 which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold. The fair value of non-marketable equity securities that have been remeasured during the period due to impairment are classified within Level 3. 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, unaudited): Three Months Ended March 31, 2019 2020 Net gain (loss) on equity securities sold during the period $ 42 $ 171 Net unrealized gain (loss) on equity securities held as of the end of the period (1) 1,041 (985) Total gain (loss) recognized in other income (expense), net $ 1,083 $ (814) (1) Includes net gain of $390 million and net loss of $948 million related to non-marketable equity securities for the three months ended March 31, 2019 and 2020, 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, unaudited), 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 net gains on the securities sold during the period. Cumulative net gains are calculated as the difference between the sale price and the initial purchase price for the equity security sold during the period. Equity Securities Sold During the Three Months Ended March 31, 2019 2020 Total sale price $ 240 $ 909 Total initial cost 120 261 Cumulative net gains $ 120 $ 648 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, 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). As of March 31, 2020 Marketable Securities Non-Marketable Securities Total (unaudited) Total initial cost $ 1,865 $ 8,777 $ 10,642 Cumulative net gain (1) 949 2,006 2,955 Carrying value $ 2,814 $ 10,783 $ 13,597 (1) Non-marketable securities cumulative net gain is comprised of $3.8 billion unrealized gains and $1.7 billion 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, 2019 and March 31, 2020 (in millions): As of December 31, 2019 As of March 31, 2020 Cash and Cash Equivalents Marketable Cash and Cash Equivalents Marketable (unaudited) Level 1: Money market funds $ 4,604 $ 0 $ 6,806 $ 0 Marketable equity securities (1) 0 3,046 5 2,592 4,604 3,046 6,811 2,592 Level 2: Mutual funds 0 250 89 222 Total $ 4,604 $ 3,296 $ 6,900 $ 2,814 (1) The balances as of December 31, 2019 and March 31, 2020 include 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, unaudited): Three Months Ended March 31, 2019 2020 Unrealized gains $ 456 $ 356 Unrealized losses (including impairment) (66) (1,304) Total unrealized gain (loss) for non-marketable equity securities $ 390 $ (948) During the three months ended March 31, 2020, included in the $10.8 billion of non-marketable equity securities, $4.4 billion were measured at fair value resulting in a net unrealized loss of $948 million. 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 and $1.2 billion as of December 31, 2019 and March 31, 2020, respectively. Our share of gains and losses including impairment are included as a component of other income (expense), net, in the Consolidated Statements of Income. See Note 7 for further details on other income (expense), net. We enter into derivative instruments to manage risks relating to our ongoing business operations. The primary risk managed with derivative instruments is foreign exchange risk. We use foreign currency contracts to reduce the risk that our cash flows, earnings, and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We also enter into derivative instruments to partially offset our business exposure to other risks and enhance investment returns. We recognize derivative instruments as either assets or liabilities in the Consolidated Balance Sheets at fair value and classify the derivatives primarily within Level 2 in the fair value hierarchy. We present our collar contracts (an option strategy comprised of a combination of purchased and written options) at net fair values where both the purchased and written options are with the same counterparty. For other derivative contracts, we present at gross fair values. We primarily record changes in the fair value 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. We enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. Further, we enter into collateral security arrangements that provide for collateral to be received or pledged when the net fair value of certain financial instruments fluctuates from contractually established thresholds. Cash collateral received related to derivative instruments under our collateral security arrangements are included in other current assets with a corresponding liability. Cash and non-cash collateral pledged related to derivative instruments under our collateral security arrangements are included in other current assets. Cash Flow Hedges We designate foreign currency forward and option contracts (including collars) as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. These contracts have matu rities of 24 months or less. Cash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and subsequently reclassified to revenue when the hedged item is recognized in earnings. We exclude the change in 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. If the hedged transactions become probable of not occurring, the corresponding amounts in AOCI are immediately reclassified to other income (expense), net. As of March 31, 2020, the net accumulated gain on our foreign currency cash flow hedges before tax effect was $304 million, of which $304 million is expe cted to be reclassified from AOCI into earnings within the next 12 months. Fair Value Hedges We designate foreign currency forward contracts as fair value hedges to hedge foreign currency risks for our investments denominated in currencies other than the U.S. dollar. Fair value hedge amounts included in the assessment of hedge effectiveness are recognized in other income (expense), net, along with the offsetting gains and losses of the related hedged items. We exclude changes in forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in other income (expense), net. Net Investment Hedges We designate foreign currency forward contracts as net investment hedges to hedge the foreign currency risks related to our investment in foreign subsidiaries. Net investment hedge amounts included in the assessment of hedge effectiveness are recognized in AOCI along with the foreign currency translation adjustment. We exclude changes in forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in other income (expense), net. Other Derivatives Other derivatives not designated as hedging instruments consist primarily 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. Gains and losses on these contracts, as well as the related costs, are recognized in other income (expense), net, along with the foreign currency gains and losses on monetary assets and liabilities. We also use derivatives not designated as hedging instruments to manage risks relating to interest rates, equity and commodity prices, credit exposures and to enhance investment returns. The gross notional amounts of our outstanding derivative instruments were as follows (in billions): As of December 31, 2019 As of March 31, 2020 (unaudited) Derivatives Designated as Hedging Instruments: Foreign exchange contracts Cash flow hedges $ 13.2 $ 12.6 Fair value hedges $ 0.5 $ 0.5 Net investment hedges $ 9.3 $ 9.3 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts $ 43.5 $ 30.9 Other contracts $ 0.1 $ 1.1 The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2019 Balance Sheet Location Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 91 $ 253 $ 344 Other Contracts Other current and non-current assets 0 1 1 Total $ 91 $ 254 $ 345 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 173 $ 196 $ 369 Other Contracts Accrued expenses and other liabilities, current and non-current 0 13 13 Total $ 173 $ 209 $ 382 As of March 31, 2020 Balance Sheet Location Fair Value of Fair Value of Total Fair Value (unaudited) Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 394 $ 103 $ 497 Other contracts Other current and non-current assets 0 7 7 Total $ 394 $ 110 $ 504 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 43 $ 94 $ 137 Other contracts Accrued expenses and other liabilities, current and non-current 0 49 49 Total $ 43 $ 143 $ 186 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, unaudited): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Three Months Ended March 31, 2019 2020 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ (6) $ 412 Amount excluded from the assessment of effectiveness (30) 52 Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 64 80 Total $ 28 $ 544 The effect of derivative instruments on income is summarized below (in millions, unaudited): Gains (Losses) Recognized in Income Three Months Ended March 31, 2019 2020 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 $ 36,339 $ 1,538 $ 41,159 $ (220) Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ 128 $ 0 $ 26 $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 9 0 23 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 22 0 (17) Derivatives designated as hedging instruments 0 (22) 0 17 Amount excluded from the assessment of effectiveness 0 10 0 1 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 54 0 78 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts 0 (249) 0 229 Other Contracts 0 0 0 (28) Total gains (losses) $ 137 $ (185) $ 49 $ 280 Offsetting of Derivatives The gross amounts of our derivative instruments subject to master netting arrangements with various counterparties, and cash and non-cash collateral received and pledged under such agreements were as follows (in millions): Offsetting of Assets 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 As of March 31, 2020 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 (unaudited) Derivatives $ 588 $ (84) $ 504 $ (115) (1) $ (326) $ (27) $ 36 (1) The balances as of December 31, 2019 and March 31, 2020 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, 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 As of March 31, 2020 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 (unaudited) Derivatives $ 270 $ (84) $ 186 $ (115) (2) $ 0 $ (8) $ 63 (2) The balances as of December 31, 2019 and March 31, 2020 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | LeasesWe 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, unaudited): Three Months Ended March 31, 2019 2020 Operating lease cost $ 398 $ 523 Variable lease cost 128 140 Total operating lease cost $ 526 $ 663 Supplemental information related to operating leases is as follows (in millions, unaudited): Three Months Ended March 31, 2019 2020 Cash payments for operating leases $ 374 $ 430 New operating lease assets obtained in exchange for operating lease liabilities $ 1,131 $ 770 As of March 31, 2020, our operating leases had a weighted average remaining lease term of 10 years and a weighted average discount rate of 2.7%. Future lease payments under operating leases as of March 31, 2020 were as follows (in millions, unaudited): Operating Leases Remainder of 2020 $ 1,378 2021 1,939 2022 1,782 2023 1,612 2024 1,389 Thereafter 6,146 Total future lease payments 14,246 Less imputed interest (2,458) Total lease liability balance $ 11,788 |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 and March 31, 2020, assets that can only be used to settle obligations of these VIEs were $3.1 billion an d $5.2 billion, respectively, and the liabilities for which creditors only have recourse to the VIEs were $1.2 billion and $2.2 billion, r espectively. Total noncontrolling interests, including redeemable noncontrolling interest, in our consolidated subsidiaries increased from $1.2 billion to $2.8 billion f rom December 31, 2019 to March 31, 2020, primarily due to external investments in Waymo. Net loss attributable to noncontrolling interests was not material for any period presented. Waymo Waymo is a self-driving technology development company with a mission to make it safe and easy for people and things to get where they're going. In March 2020, Waymo announced its first externally led investment with an initial close of $2.2 billion, which included an investment from Alphabet. No gain or loss was recognized. The investments related to external parties were accounted for as equity transactions and resulted in recognition of noncontrolling interests. 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, 2019 and March 31, 2020. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 and March 31, 2020. Long-Term Debt Google issued $3.0 billion of senior unsecured notes in three tranches (collectively, "2011 Notes") in May 2011, due in 2014, 2016, and 2021, as well as $1.0 billion of senior unsecured notes ("2014 Notes") in February 2014 due in 2024. In April 2016, we completed an exchange offer with eligible holders of Google’s 2011 Notes due 2021 and 2014 Notes due 2024 (collectively, the "Google Notes"). An aggregate principal amount of approximately $1.7 billion of the Google Notes was exchanged for approximately $1.7 billion of Alphabet notes with identical interest rate and maturity. Because the exchange was between a parent and the subsidiary company and for substantially identical notes, the change was treated as a debt modification for accounting purposes with no gain or loss recognized. In August 2016, Alphabet issued $2.0 billion of senior unsecured notes ("2016 Notes") due 2026. The net proceeds from the issuance of the 2016 Notes were used for general corporate purposes, including the repayment of outstanding commercial paper. The Alphabet notes due in 2021, 2024, and 2026 rank equally with each other and are structurally subordinate to the outstanding Google Notes. The total outstanding long-term debt is summarized below (in millions): As of As of (unaudited) 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 (42) (40) Subtotal (1) 3,958 3,960 Total future finance lease payments 685 1,154 Less: imputed interest for finance leases (89) (98) Total long-term debt $ 4,554 $ 5,016 (1) Includes the outstanding (and unexchanged) Google Notes issued in 2011 and 2014 and the Alphabet notes exchanged in 2016. The effective interest yields based on proceeds received from the outstanding notes due in 2021, 2024, and 2026 were 3.734%, 3.377%, and 2.231%, respectively, with interest payable semi-annually. We may redeem these notes at any time in whole or in part at specified redemption prices. The total estimated fair value of all outstanding notes was approximately $4.1 billion and $4.2 billion as of December 31, 2019 and March 31, 2020, respectively. The fair value was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy. Credit Facility As of March 31, 2020, 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, 2019 and March 31, 2020. |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Components Disclosure [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Property and Equipment, Net Property and equipment, net, consisted of the following (in millions): As of As of (unaudited) Land and buildings $ 39,865 $ 41,372 Information technology assets 36,840 38,534 Construction in progress 21,036 22,834 Leasehold improvements 6,310 6,761 Furniture and fixtures 156 183 Property and equipment, gross 104,207 109,684 Less: accumulated depreciation (30,561) (32,937) Property and equipment, net $ 73,646 $ 76,747 Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following (in millions): As of As of (unaudited) European Commission fines (1) $ 9,405 $ 9,357 Accrued customer liabilities 2,245 2,146 Accrued purchases of property and equipment 2,411 2,536 Current operating lease liabilities 1,199 1,312 Other accrued expenses and current liabilities 7,807 7,250 Accrued expenses and other current liabilities $ 23,067 $ 22,601 (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, unaudited): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2018 $ (1,884) $ (688) $ 266 $ (2,306) Cumulative effect of accounting change 0 0 (30) (30) Other comprehensive income (loss) before reclassifications (36) 719 0 683 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (30) (30) Amounts reclassified from AOCI 0 7 (104) (97) Other comprehensive income (loss) (36) 726 (134) 556 Balance as of March 31, 2019 $ (1,920) $ 38 $ 102 $ (1,780) 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, 2019 $ (2,003) $ 812 $ (41) $ (1,232) Other comprehensive income (loss) before reclassifications (550) 498 326 274 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 52 52 Amounts reclassified from AOCI 0 (169) (22) (191) Other comprehensive income (loss) (550) 329 356 135 Balance as of March 31, 2020 $ (2,553) $ 1,141 $ 315 $ (1,097) The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income Three Months Ended March 31, AOCI Components Location 2019 2020 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (2) $ 214 Benefit (provision) for income taxes (5) (45) Net of tax (7) 169 Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue 128 26 Interest rate contracts Other income (expense), net 1 1 Benefit (provision) for income taxes (25) (5) Net of tax 104 22 Total amount reclassified, net of tax $ 97 $ 191 Other Income (Expense), Net The components of other income (expense), net, were as follows (in millions, unaudited): Three Months Ended March 31, 2019 2020 Interest income $ 522 $ 586 Interest expense (1) (35) (21) Foreign currency exchange gain (loss), net 74 (81) Gain (loss) on debt securities, net (2) 12 Gain (loss) on equity securities, net 1,083 (814) Performance fees (117) 6 Income (loss) and impairment from equity method investments, net (40) 74 Other 53 18 Other income (expense), net $ 1,538 $ (220) (1) Interest expense is net of interest capitalized of $31 million and $52 million for the three months ended March 31, 2019 and 2020, respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the three months ended March 31, 2020, we completed acquisitions and purchases of intangible assets for total considera tion of approximately $213 million, net of cash acquired. In aggregate, $66 million was attributed to intangible assets, $132 million to goodwill, and $15 million to net assets acquired . 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 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 three months ended March 31, 2020, patents and developed technology have a weighted -average useful life of 4.9 years, customer relationships have a weighted-average useful life of 5.0 years, and trade names and other have a weighted-average useful life of 5.0 y ears. 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 later this year, subject to customary closing conditions, including the receipt of regulatory approvals. Upon the close of the acquisition, Fitbit will be part of the Google segment. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
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 three months ended March 31, 2020 were as follows (in millions, unaudited): Google Other Bets Total Consolidated Balance as of December 31, 2019 $ 19,921 $ 703 $ 20,624 Acquisitions 132 0 132 Foreign currency translation and other adjustments (17) (5) (22) Balance as of March 31, 2020 $ 20,036 $ 698 $ 20,734 Other Intangible Assets Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2019 Gross Accumulated Net 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 As of March 31, 2020 Gross Accumulated Net (unaudited) Patents and developed technology $ 4,691 $ 3,401 $ 1,290 Customer relationships 245 28 217 Trade names and other 713 380 333 Total $ 5,649 $ 3,809 $ 1,840 Amortization expense relating to purchased intangible assets was $197 million and $204 million for the three months ended March 31, 2019 and 2020, respectively. As of March 31, 2020, expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows (in millions, unaudited): Remainder of 2020 $ 556 2021 677 2022 329 2023 69 2024 57 Thereafter 152 Total $ 1,840 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 March 31, 2020, 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 partners' 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 | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchases In July 2019, the board of directors of Alphabet authorized the company to repurchase up to $25.0 billion of its Class C capital stock. The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The repurchase program does not have an expiration date. During the three months ended March 31, 2020, we repurchased and subsequently retired 6.5 million shares of Alphabet Class C capital stock for an aggregate amount of $8.5 billion. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands, and per share amounts, unaudited): Three Months Ended March 31, 2019 2020 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 2,865 $ 446 $ 3,346 $ 2,990 $ 462 $ 3,384 Denominator Number of shares used in per share computation 299,042 46,582 349,245 300,249 46,424 339,792 Basic net income per share $ 9.58 $ 9.58 $ 9.58 $ 9.96 $ 9.96 $ 9.96 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 2,865 $ 446 $ 3,346 $ 2,990 $ 462 $ 3,384 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 446 0 0 462 0 0 Reallocation of undistributed earnings (23) (4) 23 (27) (4) 27 Allocation of undistributed earnings $ 3,288 $ 442 $ 3,369 $ 3,425 $ 458 $ 3,411 Denominator Number of shares used in basic computation 299,042 46,582 349,245 300,249 46,424 339,792 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 46,582 0 0 46,424 0 0 Restricted stock units and other contingently issuable shares 510 0 5,500 180 0 5,622 Number of shares used in per share computation 346,134 46,582 354,745 346,853 46,424 345,414 Diluted net income per share $ 9.50 $ 9.50 $ 9.50 $ 9.87 $ 9.87 $ 9.87 For the periods presented above, the net income per share amounts are the same for Class A and Class B common stock and Class C capital stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Amended and Restated Certificate of Incorporation of Alphabet Inc. |
Compensation Plans
Compensation Plans | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Compensation Plans | Compensation Plans Stock-Based Compensation For the three months ended March 31, 2019 and 2020, total stock-based compensation ("SBC") expense was $2.9 billion and $3.4 billion, respectively, including amounts associated with awards we expect to settle in Alphabet stock of $2.8 billion and $3.2 billion, respectively. Stock-Based Award Activities The following table summarizes the activities for our unvested restricted stock units ("RSUs") in Alphabet stock for the three months ended March 31, 2020 (unaudited): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2019 19,394,236 $ 1,055.22 Granted 8,843,924 $ 1,406.00 Vested (2,662,888) $ 1,039.53 Forfeited/canceled (461,707) $ 1,120.92 Unvested as of March 31, 2020 25,113,565 $ 1,179.26 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the three months ended March 31, 2020 was lower than the U.S. federal statutory rate, primarily due to the U.S. Research and Development Tax Credit, the Foreign-Derived Intangible Income tax benefit, and stock-based compensation related tax benefits. Our effective tax rate is based on forecasted annual results which may fluctuate significantly through the rest of the year, in particular due to the uncertainty in our annual forecasts resulting from the unpredictable impact of COVID-19 on our operating results. Our effective tax rate for the three months ended March 31, 2019 was lower than the U.S. federal statutory rate primarily due to foreign earnings taxed at lower rates and partially offset by the impact from the non-deductible EC fine. We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes. Our total gross unrecognized tax benefits were $3.4 billion as of December 31, 2019 and March 31, 2020. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $2.3 billion as of December 31, 2019 and March 31, 2020. Although the timing of the 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. For information regarding non-income taxes, see Note 10. |
Information about Segments and
Information about Segments and Geographic Areas | 3 Months Ended |
Mar. 31, 2020 | |
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 sale of internet 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, unaudited): Three Months Ended March 31, 2019 2020 Revenues: Google $ 36,032 $ 40,975 Other Bets 170 135 Hedging gains (losses) 137 49 Total revenues $ 36,339 $ 41,159 Three Months Ended March 31, 2019 2020 Operating income (loss): Google $ 9,188 $ 9,270 Other Bets (868) (1,121) Reconciling items (1) (1,712) (172) Total income from operations $ 6,608 $ 7,977 (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 the EC fine for the three months ended March 31, 2019. Three Months Ended March 31, 2019 2020 Capital expenditures: Google $ 4,534 $ 5,663 Other Bets 59 104 Reconciling items (2) 45 238 Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 4,638 $ 6,005 (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 and depreciation, amortization, and impairment are included in segment operating income (loss) as shown below (in millions, unaudited): Three Months Ended March 31, 2019 2020 Stock-based compensation: Google $ 2,612 $ 2,988 Other Bets 123 135 Reconciling items (3) 34 67 Total stock-based compensation (4) $ 2,769 $ 3,190 Depreciation, amortization, and impairment: Google $ 2,529 $ 3,013 Other Bets 84 92 Reconciling items (3) 0 3 Total depreciation, amortization, and impairment $ 2,613 $ 3,108 (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 (unaudited) Long-lived assets: United States $ 94,907 $ 96,216 International 28,424 30,169 Total long-lived assets $ 123,331 $ 126,385 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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 ConsolidationThe consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolidated under the variable interest and voting models. All intercompany balances and transactions have been eliminated. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The Consolidated Balance Sheet as of March 31, 2020, the Consolidated Statements of Income for the three months ended March 31, 2019 and 2020, the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2020, the Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2019 and 2020 and the Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2020 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of March 31, 2020, our results of operations for the three months ended March 31, 2019 and 2020, and our cash flows for the three months ended March 31, 2019 and 2020. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed with the SEC. |
Use of Estimates | Use of Estimates Preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the allowance for credit losses, 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. As of March 31, 2020, the impact of the outbreak of COVID-19 continues to unfold. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods. |
Accounts Receivable | Accounts Receivable Our payment terms for accounts receivable 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 customers, we require payment before the products or services are delivered to the customer. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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 certain 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 result in earlier recognition of credit losses. We adopted ASU 2016-13 using the modified retrospective approach as of January 1, 2020. The cumulative effect upon adoption was not material to our consolidated financial statements. See Note 3 for the effect on our consolidated financial statements for the three months ended March 31, 2020. |
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. |
Deferred Revenues | Deferred RevenuesWe record deferred revenues when cash payments are received or due in advance of our performance, including amounts which are refundable. |
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. |
Fair Value of Financial Instruments | Debt Securities We classify and account for our marketable debt securities as available-for-sale and carry these securities at fair value. 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). We qualitatively assess whether indicators of impairment exist. Factors considered in our assessment include the companies’ financial and liquidity position, access to capital resources, exposure to industries and markets impacted by COVID-19, and the time since the last adjustment to fair value, among others. If the assessment indicates that the investment is impaired, we estimate the fair value by using the best information available, which may include cash flow projections or other available market data. The effect of COVID-19 on our impairment assessment requires significant judgment due to the uncertainty around the impact. All gains and losses, realized and unrealized, and impairments on non-marketable equity securities 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 which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold. The fair value of non-marketable equity securities that have been remeasured during the period due to impairment are classified within Level 3. |
Segment Reporting | 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. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by revenue source | The following table presents our revenues disaggregated by revenue source (in millions, unaudited). Certain amounts in prior periods have been reclassified to conform with current period presentation. Three Months Ended March 31, 2019 2020 Google Search & other $ 22,547 $ 24,502 YouTube ads (1) 3,025 4,038 Google properties 25,572 28,540 Google Network Members' properties 5,015 5,223 Google advertising 30,587 33,763 Google Cloud 1,825 2,777 Google other (1) 3,620 4,435 Google revenues 36,032 40,975 Other Bets revenues 170 135 Hedging gains (losses) 137 49 Total revenues $ 36,339 $ 41,159 (1) YouTube non-advertising revenues are included in Google other revenues. |
Revenue by geographic location | The following table presents our revenues disaggregated by geography, based on the addresses of our customers (in millions, unaudited): Three Months Ended March 31, 2019 2020 United States $ 16,532 45 % $ 18,870 46 % EMEA (1) 11,668 33 12,845 31 APAC (1) 6,096 17 7,238 18 Other Americas (1) 1,906 5 2,157 5 Hedging gains (losses) 137 0 49 0 Total revenues $ 36,339 100 % $ 41,159 100 % (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) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale debt securities | The following tables summarize our debt securities, for which we did not elect the fair value option, by significant investment categories as of December 31, 2019 and March 31, 2020 (in millions): As of December 31, 2019 Adjusted Gross Gross Fair Cash and Cash 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 As of March 31, 2020 Adjusted Gross Gross Fair Cash and Cash Marketable (unaudited) Level 2: Time deposits (1) $ 2,195 $ 0 $ 0 $ 2,195 $ 2,195 $ 0 Government bonds 50,350 1,162 (50) 51,462 3,668 47,794 Corporate debt securities 26,545 154 (360) 26,339 13 26,326 Mortgage-backed and asset-backed securities 18,576 287 (91) 18,772 0 18,772 Total $ 97,666 $ 1,603 $ (501) $ 98,768 $ 5,876 $ 92,892 |
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, unaudited): As of Due in 1 year $ 24,209 Due in 1 year through 5 years 54,662 Due in 5 years through 10 years 3,080 Due after 10 years 12,820 Total $ 94,771 |
Schedule of unrealized loss on debt securities | The following tables present fair values and gross unrealized losses recorded to AOCI as of December 31, 2019 and March 31, 2020, 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, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized 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) As of March 31, 2020 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (unaudited) Government bonds $ 4,168 $ (50) $ 79 $ 0 $ 4,247 $ (50) Corporate debt securities 15,561 (232) 113 (1) 15,674 (233) Mortgage-backed and asset-backed securities 4,796 (85) 326 (6) 5,122 (91) Total $ 24,525 $ (367) $ 518 $ (7) $ 25,043 $ (374) |
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, unaudited): Three Months Ended March 31, 2019 2020 Net gain (loss) on equity securities sold during the period $ 42 $ 171 Net unrealized gain (loss) on equity securities held as of the end of the period (1) 1,041 (985) Total gain (loss) recognized in other income (expense), net $ 1,083 $ (814) (1) Includes net gain of $390 million and net loss of $948 million related to non-marketable equity securities for the three months ended March 31, 2019 and 2020, respectively. |
Cumulative net gains on equity securities sold | Equity Securities Sold During the Three Months Ended March 31, 2019 2020 Total sale price $ 240 $ 909 Total initial cost 120 261 Cumulative net gains $ 120 $ 648 |
Summary of unrealized gains and losses for marketable and non-marketable equity securities | The carrying values for our marketable and non-marketable equity securities are summarized below (in millions): 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). As of March 31, 2020 Marketable Securities Non-Marketable Securities Total (unaudited) Total initial cost $ 1,865 $ 8,777 $ 10,642 Cumulative net gain (1) 949 2,006 2,955 Carrying value $ 2,814 $ 10,783 $ 13,597 (1) Non-marketable securities cumulative net gain is comprised of $3.8 billion unrealized gains and $1.7 billion 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, 2019 and March 31, 2020 (in millions): As of December 31, 2019 As of March 31, 2020 Cash and Cash Equivalents Marketable Cash and Cash Equivalents Marketable (unaudited) Level 1: Money market funds $ 4,604 $ 0 $ 6,806 $ 0 Marketable equity securities (1) 0 3,046 5 2,592 4,604 3,046 6,811 2,592 Level 2: Mutual funds 0 250 89 222 Total $ 4,604 $ 3,296 $ 6,900 $ 2,814 |
Summary of unrealized gains and losses for non-marketable equity securities | The following is a summary of unrealized gains and losses recorded in other income (expense), net, and included as adjustments to the carrying value of non-marketable equity securities (in millions, unaudited): Three Months Ended March 31, 2019 2020 Unrealized gains $ 456 $ 356 Unrealized losses (including impairment) (66) (1,304) Total unrealized gain (loss) for non-marketable equity securities $ 390 $ (948) |
Schedule of gross notional amounts of derivative instruments | The gross notional amounts of our outstanding derivative instruments were as follows (in billions): As of December 31, 2019 As of March 31, 2020 (unaudited) Derivatives Designated as Hedging Instruments: Foreign exchange contracts Cash flow hedges $ 13.2 $ 12.6 Fair value hedges $ 0.5 $ 0.5 Net investment hedges $ 9.3 $ 9.3 Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts $ 43.5 $ 30.9 Other contracts $ 0.1 $ 1.1 |
Schedule of derivative instruments | The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2019 Balance Sheet Location Fair Value of Derivatives Designated as Hedging Instruments Fair Value of Total Fair Value Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 91 $ 253 $ 344 Other Contracts Other current and non-current assets 0 1 1 Total $ 91 $ 254 $ 345 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 173 $ 196 $ 369 Other Contracts Accrued expenses and other liabilities, current and non-current 0 13 13 Total $ 173 $ 209 $ 382 As of March 31, 2020 Balance Sheet Location Fair Value of Fair Value of Total Fair Value (unaudited) Derivative Assets: Level 2: Foreign exchange contracts Other current and non-current assets $ 394 $ 103 $ 497 Other contracts Other current and non-current assets 0 7 7 Total $ 394 $ 110 $ 504 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other liabilities, current and non-current $ 43 $ 94 $ 137 Other contracts Accrued expenses and other liabilities, current and non-current 0 49 49 Total $ 43 $ 143 $ 186 |
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, unaudited): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect Three Months Ended March 31, 2019 2020 Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness $ (6) $ 412 Amount excluded from the assessment of effectiveness (30) 52 Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount included in the assessment of effectiveness 64 80 Total $ 28 $ 544 The effect of derivative instruments on income is summarized below (in millions, unaudited): Gains (Losses) Recognized in Income Three Months Ended March 31, 2019 2020 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 $ 36,339 $ 1,538 $ 41,159 $ (220) Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: Foreign exchange contracts Amount of gains (losses) reclassified from AOCI to income $ 128 $ 0 $ 26 $ 0 Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach 9 0 23 0 Gains (Losses) on Derivatives in Fair Value Hedging Relationship: Foreign exchange contracts Hedged items 0 22 0 (17) Derivatives designated as hedging instruments 0 (22) 0 17 Amount excluded from the assessment of effectiveness 0 10 0 1 Gains (Losses) on Derivatives in Net Investment Hedging Relationship: Foreign exchange contracts Amount excluded from the assessment of effectiveness 0 54 0 78 Gains (Losses) on Derivatives Not Designated as Hedging Instruments: Foreign exchange contracts 0 (249) 0 229 Other Contracts 0 0 0 (28) Total gains (losses) $ 137 $ (185) $ 49 $ 280 |
Offsetting assets | Offsetting of Assets 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 As of March 31, 2020 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 (unaudited) Derivatives $ 588 $ (84) $ 504 $ (115) (1) $ (326) $ (27) $ 36 |
Offsetting liabilities | Offsetting of Liabilities 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 As of March 31, 2020 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 (unaudited) Derivatives $ 270 $ (84) $ 186 $ (115) (2) $ 0 $ (8) $ 63 (2) The balances as of December 31, 2019 and March 31, 2020 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) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Operating Lease Expense | Components of operating lease expense were as follows (in millions, unaudited): Three Months Ended March 31, 2019 2020 Operating lease cost $ 398 $ 523 Variable lease cost 128 140 Total operating lease cost $ 526 $ 663 Supplemental information related to operating leases is as follows (in millions, unaudited): Three Months Ended March 31, 2019 2020 Cash payments for operating leases $ 374 $ 430 New operating lease assets obtained in exchange for operating lease liabilities $ 1,131 $ 770 |
Future Minimum Operating Lease Payments | Future lease payments under operating leases as of March 31, 2020 were as follows (in millions, unaudited): Operating Leases Remainder of 2020 $ 1,378 2021 1,939 2022 1,782 2023 1,612 2024 1,389 Thereafter 6,146 Total future lease payments 14,246 Less imputed interest (2,458) Total lease liability balance $ 11,788 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The total outstanding long-term debt is summarized below (in millions): As of As of (unaudited) 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 (42) (40) Subtotal (1) 3,958 3,960 Total future finance lease payments 685 1,154 Less: imputed interest for finance leases (89) (98) Total long-term debt $ 4,554 $ 5,016 (1) Includes the outstanding (and unexchanged) Google Notes issued in 2011 and 2014 and the Alphabet notes exchanged in 2016. |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Components Disclosure [Abstract] | |
Property and equipment, net | Property and equipment, net, consisted of the following (in millions): As of As of (unaudited) Land and buildings $ 39,865 $ 41,372 Information technology assets 36,840 38,534 Construction in progress 21,036 22,834 Leasehold improvements 6,310 6,761 Furniture and fixtures 156 183 Property and equipment, gross 104,207 109,684 Less: accumulated depreciation (30,561) (32,937) Property and equipment, net $ 73,646 $ 76,747 |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following (in millions): As of As of (unaudited) European Commission fines (1) $ 9,405 $ 9,357 Accrued customer liabilities 2,245 2,146 Accrued purchases of property and equipment 2,411 2,536 Current operating lease liabilities 1,199 1,312 Other accrued expenses and current liabilities 7,807 7,250 Accrued expenses and other current liabilities $ 23,067 $ 22,601 (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, unaudited): Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains (Losses) on Cash Flow Hedges Total Balance as of December 31, 2018 $ (1,884) $ (688) $ 266 $ (2,306) Cumulative effect of accounting change 0 0 (30) (30) Other comprehensive income (loss) before reclassifications (36) 719 0 683 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 (30) (30) Amounts reclassified from AOCI 0 7 (104) (97) Other comprehensive income (loss) (36) 726 (134) 556 Balance as of March 31, 2019 $ (1,920) $ 38 $ 102 $ (1,780) 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, 2019 $ (2,003) $ 812 $ (41) $ (1,232) Other comprehensive income (loss) before reclassifications (550) 498 326 274 Amounts excluded from the assessment of hedge effectiveness recorded in AOCI 0 0 52 52 Amounts reclassified from AOCI 0 (169) (22) (191) Other comprehensive income (loss) (550) 329 356 135 Balance as of March 31, 2020 $ (2,553) $ 1,141 $ 315 $ (1,097) |
Schedule of effects on net income of amounts reclassified from AOCI | The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income Three Months Ended March 31, AOCI Components Location 2019 2020 Unrealized gains (losses) on available-for-sale investments Other income (expense), net $ (2) $ 214 Benefit (provision) for income taxes (5) (45) Net of tax (7) 169 Unrealized gains (losses) on cash flow hedges Foreign exchange contracts Revenue 128 26 Interest rate contracts Other income (expense), net 1 1 Benefit (provision) for income taxes (25) (5) Net of tax 104 22 Total amount reclassified, net of tax $ 97 $ 191 |
Schedule of other income (expense), net | The components of other income (expense), net, were as follows (in millions, unaudited): Three Months Ended March 31, 2019 2020 Interest income $ 522 $ 586 Interest expense (1) (35) (21) Foreign currency exchange gain (loss), net 74 (81) Gain (loss) on debt securities, net (2) 12 Gain (loss) on equity securities, net 1,083 (814) Performance fees (117) 6 Income (loss) and impairment from equity method investments, net (40) 74 Other 53 18 Other income (expense), net $ 1,538 $ (220) (1) Interest expense is net of interest capitalized of $31 million and $52 million for the three months ended March 31, 2019 and 2020, respectively. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of goodwill | Changes in the carrying amount of goodwill for the three months ended March 31, 2020 were as follows (in millions, unaudited): Google Other Bets Total Consolidated Balance as of December 31, 2019 $ 19,921 $ 703 $ 20,624 Acquisitions 132 0 132 Foreign currency translation and other adjustments (17) (5) (22) Balance as of March 31, 2020 $ 20,036 $ 698 $ 20,734 |
Information regarding purchased intangible assets | Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2019 Gross Accumulated Net 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 As of March 31, 2020 Gross Accumulated Net (unaudited) Patents and developed technology $ 4,691 $ 3,401 $ 1,290 Customer relationships 245 28 217 Trade names and other 713 380 333 Total $ 5,649 $ 3,809 $ 1,840 |
Expected amortization expense related to purchased intangible assets | As of March 31, 2020, expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows (in millions, unaudited): Remainder of 2020 $ 556 2021 677 2022 329 2023 69 2024 57 Thereafter 152 Total $ 1,840 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands, and per share amounts, unaudited): Three Months Ended March 31, 2019 2020 Class A Class B Class C Class A Class B Class C Basic net income per share: Numerator Allocation of undistributed earnings $ 2,865 $ 446 $ 3,346 $ 2,990 $ 462 $ 3,384 Denominator Number of shares used in per share computation 299,042 46,582 349,245 300,249 46,424 339,792 Basic net income per share $ 9.58 $ 9.58 $ 9.58 $ 9.96 $ 9.96 $ 9.96 Diluted net income per share: Numerator Allocation of undistributed earnings for basic computation $ 2,865 $ 446 $ 3,346 $ 2,990 $ 462 $ 3,384 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 446 0 0 462 0 0 Reallocation of undistributed earnings (23) (4) 23 (27) (4) 27 Allocation of undistributed earnings $ 3,288 $ 442 $ 3,369 $ 3,425 $ 458 $ 3,411 Denominator Number of shares used in basic computation 299,042 46,582 349,245 300,249 46,424 339,792 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 46,582 0 0 46,424 0 0 Restricted stock units and other contingently issuable shares 510 0 5,500 180 0 5,622 Number of shares used in per share computation 346,134 46,582 354,745 346,853 46,424 345,414 Diluted net income per share $ 9.50 $ 9.50 $ 9.50 $ 9.87 $ 9.87 $ 9.87 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of restricted stock activity | The following table summarizes the activities for our unvested restricted stock units ("RSUs") in Alphabet stock for the three months ended March 31, 2020 (unaudited): Unvested Restricted Stock Units Number of Weighted- Unvested as of December 31, 2019 19,394,236 $ 1,055.22 Granted 8,843,924 $ 1,406.00 Vested (2,662,888) $ 1,039.53 Forfeited/canceled (461,707) $ 1,120.92 Unvested as of March 31, 2020 25,113,565 $ 1,179.26 |
Information about Segments an_2
Information about Segments and Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment information by segment | Information about segments during the periods presented were as follows (in millions, unaudited): Three Months Ended March 31, 2019 2020 Revenues: Google $ 36,032 $ 40,975 Other Bets 170 135 Hedging gains (losses) 137 49 Total revenues $ 36,339 $ 41,159 Three Months Ended March 31, 2019 2020 Operating income (loss): Google $ 9,188 $ 9,270 Other Bets (868) (1,121) Reconciling items (1) (1,712) (172) Total income from operations $ 6,608 $ 7,977 (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 the EC fine for the three months ended March 31, 2019. Three Months Ended March 31, 2019 2020 Capital expenditures: Google $ 4,534 $ 5,663 Other Bets 59 104 Reconciling items (2) 45 238 Total capital expenditures as presented on the Consolidated Statements of Cash Flows $ 4,638 $ 6,005 (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 and depreciation, amortization, and impairment are included in segment operating income (loss) as shown below (in millions, unaudited): Three Months Ended March 31, 2019 2020 Stock-based compensation: Google $ 2,612 $ 2,988 Other Bets 123 135 Reconciling items (3) 34 67 Total stock-based compensation (4) $ 2,769 $ 3,190 Depreciation, amortization, and impairment: Google $ 2,529 $ 3,013 Other Bets 84 92 Reconciling items (3) 0 3 Total depreciation, amortization, and impairment $ 2,613 $ 3,108 (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. |
Schedule of long-lived assets by geographic area | The following table presents our long-lived assets by geographic area (in millions): As of As of (unaudited) Long-lived assets: United States $ 94,907 $ 96,216 International 28,424 30,169 Total long-lived assets $ 123,331 $ 126,385 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Allowance for credit losses on accounts receivable | $ 717 | $ 275 |
Revenues (Revenue by Segment) (
Revenues (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 41,159 | $ 36,339 |
Hedging gains (losses) | 49 | 137 |
Segment Reporting Information [Line Items] | ||
Revenue | 40,975 | 36,032 |
Google | Google Search & other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 24,502 | 22,547 |
Google | YouTube ads | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,038 | 3,025 |
Google | Google properties | ||
Segment Reporting Information [Line Items] | ||
Revenue | 28,540 | 25,572 |
Google | Google Network Members' properties | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,223 | 5,015 |
Google | Google advertising | ||
Segment Reporting Information [Line Items] | ||
Revenue | 33,763 | 30,587 |
Google | Google Cloud | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,777 | 1,825 |
Google | Google other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4,435 | 3,620 |
Other Bets | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 135 | $ 170 |
Revenues (Revenue by Geographic
Revenues (Revenue by Geographic Location) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 41,159 | $ 36,339 |
Hedging gains (losses) | 49 | 137 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 18,870 | 16,532 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 12,845 | 11,668 |
APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 7,238 | 6,096 |
Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 2,157 | $ 1,906 |
Geographic Concentration Risk | Revenue Benchmark | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 100.00% | 100.00% |
Geographic Concentration Risk | Revenue Benchmark | United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 46.00% | 45.00% |
Geographic Concentration Risk | Revenue Benchmark | EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 31.00% | 33.00% |
Geographic Concentration Risk | Revenue Benchmark | APAC | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 18.00% | 17.00% |
Geographic Concentration Risk | Revenue Benchmark | Other Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of total revenue | 5.00% | 5.00% |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue recognized during period | $ 1 |
Revenue not yet recognized | $ 12.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of revenue recognition | 24 months |
Expected timing of revenue recognition, percentage | 50.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of revenue recognition | |
Expected timing of revenue recognition, percentage | 50.00% |
Financial Instruments (Debt Sec
Financial Instruments (Debt Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Cash and Cash Equivalents | $ 6,900 | $ 4,604 |
Fair Value | 94,771 | |
Level 2 | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 97,666 | 103,944 |
Gross Unrealized Gains | 1,603 | 867 |
Gross Unrealized Losses | (501) | (74) |
Fair Value | 98,768 | 104,737 |
Cash and Cash Equivalents | 5,876 | 6,856 |
Fair Value | 92,892 | 97,881 |
Level 2 | Time deposits | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 2,195 | 2,294 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,195 | 2,294 |
Cash and Cash Equivalents | 2,195 | 2,294 |
Fair Value | 0 | 0 |
Level 2 | Government bonds | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 50,350 | 55,033 |
Gross Unrealized Gains | 1,162 | 434 |
Gross Unrealized Losses | (50) | (30) |
Fair Value | 51,462 | 55,437 |
Cash and Cash Equivalents | 3,668 | 4,518 |
Fair Value | 47,794 | 50,919 |
Level 2 | Corporate debt securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 26,545 | 27,164 |
Gross Unrealized Gains | 154 | 337 |
Gross Unrealized Losses | (360) | (3) |
Fair Value | 26,339 | 27,498 |
Cash and Cash Equivalents | 13 | 44 |
Fair Value | 26,326 | 27,454 |
Level 2 | Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Adjusted Cost | 18,576 | 19,453 |
Gross Unrealized Gains | 287 | 96 |
Gross Unrealized Losses | (91) | (41) |
Fair Value | 18,772 | 19,508 |
Cash and Cash Equivalents | 0 | 0 |
Fair Value | $ 18,772 | $ 19,508 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financial Instruments and Fair Value [Line Items] | |||
Fair value of debt securities with fair value option elected | $ 1,900 | ||
Gross realized gains on the sale of our marketable securities | 257 | $ 46 | |
Gross realized losses on the sale of our marketable securities | 39 | 48 | |
Credit losses recognized | 127 | ||
Allowance for credit loss | 127 | ||
Non-marketable equity securities | 10,783 | $ 11,353 | |
Unrealized gain (loss) on non-marketable equity securities | 948 | $ (390) | |
Equity method investments | 1,200 | $ 1,300 | |
Foreign currency gain (loss) to be reclassified during next 12 months | 304 | ||
Debt Securities | |||
Financial Instruments and Fair Value [Line Items] | |||
Net loss on debt securities with fair value option elected | $ 9 | ||
Cash flow hedges | Foreign exchange contracts | |||
Financial Instruments and Fair Value [Line Items] | |||
Foreign exchange option contracts, maximum maturities | 24 months | ||
Valuation, Market Approach | |||
Financial Instruments and Fair Value [Line Items] | |||
Non-marketable equity securities measured at fair value | $ 4,400 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Due in 1 year | $ 24,209 |
Due in 1 year through 5 years | 54,662 |
Due in 5 years through 10 years | 3,080 |
Due after 10 years | 12,820 |
Total | $ 94,771 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 24,525 | $ 12,953 |
Less than 12 Months, Unrealized Loss | (367) | (35) |
12 Months or Greater, Fair Value | 518 | 8,403 |
12 Months or Greater, Unrealized Loss | (7) | (39) |
Total Fair Value | 25,043 | 21,356 |
Total Unrealized Loss | (374) | (74) |
Government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,168 | 6,752 |
Less than 12 Months, Unrealized Loss | (50) | (20) |
12 Months or Greater, Fair Value | 79 | 4,590 |
12 Months or Greater, Unrealized Loss | 0 | (10) |
Total Fair Value | 4,247 | 11,342 |
Total Unrealized Loss | (50) | (30) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 15,561 | 1,665 |
Less than 12 Months, Unrealized Loss | (232) | (2) |
12 Months or Greater, Fair Value | 113 | 978 |
12 Months or Greater, Unrealized Loss | (1) | (1) |
Total Fair Value | 15,674 | 2,643 |
Total Unrealized Loss | (233) | (3) |
Mortgage-backed and asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,796 | 4,536 |
Less than 12 Months, Unrealized Loss | (85) | (13) |
12 Months or Greater, Fair Value | 326 | 2,835 |
12 Months or Greater, Unrealized Loss | (6) | (28) |
Total Fair Value | 5,122 | 7,371 |
Total Unrealized Loss | $ (91) | $ (41) |
Financial Instruments (Measurem
Financial Instruments (Measurement Alternative Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Gains and Losses on Marketable and Non-Marketable Equity Securities | ||
Net gain (loss) on equity securities sold during the period | $ 171 | $ 42 |
Net unrealized gain (loss) on equity securities held as of the end of the period | (985) | 1,041 |
Total gain (loss) recognized in other income (expense), net | (814) | 1,083 |
Total unrealized gain (loss) for non-marketable equity securities | $ (948) | $ 390 |
Financial Instruments (Carrying
Financial Instruments (Carrying Amount of Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Total sale price | $ 909 | $ 240 | |
Total initial cost | 261 | 120 | |
Cumulative net gains | 648 | $ 120 | |
Total initial cost, marketable securities | 1,865 | $ 1,935 | |
Cumulative net gain, marketable securities | 949 | 1,361 | |
Carrying value, marketable securities | 2,814 | 3,296 | |
Total initial cost, non-marketable securities | 8,777 | 8,297 | |
Cumulative net gain, non-marketable securities | 2,006 | 3,056 | |
Carrying value, non-marketable securities | 10,783 | 11,353 | |
Total initial cost | 10,642 | 10,232 | |
Cumulative net gain | 2,955 | 4,417 | |
Carrying value | 13,597 | 14,649 | |
Cumulative net gain of non-marketable securities | 3,800 | 3,500 | |
Cumulative unrealized loss of non-marketable securities | $ 1,700 | $ 445 |
Financial Instruments (Marketab
Financial Instruments (Marketable Equity Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 6,900 | $ 4,604 |
Equity securities | 2,814 | 3,296 |
Marketable Securities | 2,814 | 3,296 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 6,811 | 4,604 |
Equity securities | 2,592 | 3,046 |
Marketable Securities | 2,592 | 3,046 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 5,876 | 6,856 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 6,806 | 4,604 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 89 | |
Equity securities | 222 | $ 250 |
Equity Securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 5 |
Financial Instruments (Non-Mark
Financial Instruments (Non-Marketable Equity Securities) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Unrealized gains | $ 356 | $ 456 |
Unrealized losses (including impairment) | (1,304) | (66) |
Total unrealized gain (loss) for non-marketable equity securities | $ (948) | $ 390 |
Financial Instruments (Derivati
Financial Instruments (Derivative Notional Amounts) (Details) - USD ($) $ in Billions | Mar. 31, 2020 | Dec. 31, 2019 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments: | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 12.6 | $ 13.2 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments: | Fair value hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 0.5 | 0.5 |
Foreign exchange contracts | Derivatives Designated as Hedging Instruments: | Net investment hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 9.3 | 9.3 |
Foreign exchange contracts | Derivatives Not Designated as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 30.9 | 43.5 |
Other contracts | Derivatives Not Designated as Hedging Instruments: | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 1.1 | $ 0.1 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Assets: | ||
Derivative Assets | $ 588 | $ 365 |
Derivative Liabilities: | ||
Derivative Liabilities | 270 | 390 |
Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 504 | 345 |
Derivative Liabilities: | ||
Derivative Liabilities | 186 | 382 |
Level 2 | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 497 | |
Level 2 | Other current and non-current assets | Foreign exchange contracts | ||
Derivative Assets: | ||
Derivative Assets | 344 | |
Level 2 | Other current and non-current assets | Other derivatives | ||
Derivative Assets: | ||
Derivative Assets | 7 | 1 |
Level 2 | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 137 | |
Level 2 | Accrued expenses and other liabilities, current and non-current | Foreign exchange contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | 369 | |
Level 2 | Accrued expenses and other liabilities, current and non-current | Other derivatives | ||
Derivative Liabilities: | ||
Derivative Liabilities | 49 | 13 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 394 | 91 |
Derivative Liabilities: | ||
Derivative Liabilities | 43 | 173 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 394 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Other current and non-current assets | Foreign exchange contracts | ||
Derivative Assets: | ||
Derivative Assets | 91 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Other current and non-current assets | Other derivatives | ||
Derivative Assets: | ||
Derivative Assets | 0 | 0 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 43 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | Foreign exchange contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | 173 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | Other derivatives | ||
Derivative Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | ||
Derivative Assets: | ||
Derivative Assets | 110 | 254 |
Derivative Liabilities: | ||
Derivative Liabilities | 143 | 209 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Other current and non-current assets | ||
Derivative Assets: | ||
Derivative Assets | 103 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Other current and non-current assets | Foreign exchange contracts | ||
Derivative Assets: | ||
Derivative Assets | 253 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Other current and non-current assets | Other derivatives | ||
Derivative Assets: | ||
Derivative Assets | 7 | 1 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 94 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | Foreign exchange contracts | ||
Derivative Liabilities: | ||
Derivative Liabilities | 196 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Accrued expenses and other liabilities, current and non-current | Other derivatives | ||
Derivative Liabilities: | ||
Derivative Liabilities | $ 49 | $ 13 |
Financial Instruments (Effect o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivatives in Net Investment Hedging Relationship: | ||
Revenues | $ 41,159 | $ 36,339 |
Other income (expense), net | (220) | 1,538 |
Revenues | ||
Foreign exchange contracts | ||
Total gains (losses) | 49 | 137 |
Other income (expense), net | ||
Foreign exchange contracts | ||
Total gains (losses) | 280 | (185) |
Foreign exchange contracts | ||
Derivatives in Net Investment Hedging Relationship: | ||
Total | 544 | 28 |
Foreign exchange contracts | Revenues | Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments | 0 | 0 |
Foreign exchange contracts | Other income (expense), net | Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments | 229 | (249) |
Other derivatives | Revenues | Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments | 0 | 0 |
Other derivatives | Other income (expense), net | Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Foreign exchange contracts | ||
Derivatives not designated as hedging instruments | (28) | 0 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | ||
Derivatives in Cash Flow Hedging Relationship: | ||
Amount included in the assessment of effectiveness | 412 | (6) |
Amount excluded from the assessment of effectiveness | 52 | (30) |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||
Foreign exchange contracts | ||
Amount of gains (losses) reclassified from AOCI to income | 26 | 128 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 23 | 9 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Other income (expense), net | ||
Foreign exchange contracts | ||
Amount of gains (losses) reclassified from AOCI to income | 0 | 0 |
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 0 | 0 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | ||
Derivatives in Net Investment Hedging Relationship: | ||
Amount included in the assessment of effectiveness | 80 | 64 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | Revenues | ||
Foreign exchange contracts | ||
Amount excluded from the assessment of effectiveness | 0 | 0 |
Derivatives in Net Investment Hedging Relationship: | Foreign exchange contracts | Other income (expense), net | ||
Foreign exchange contracts | ||
Amount excluded from the assessment of effectiveness | 78 | 54 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Revenues | ||
Foreign exchange contracts | ||
Hedged items | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 |
Amount excluded from the assessment of effectiveness | 0 | 0 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Other income (expense), net | ||
Foreign exchange contracts | ||
Hedged items | (17) | 22 |
Derivatives designated as hedging instruments | 17 | (22) |
Amount excluded from the assessment of effectiveness | $ 1 | $ 10 |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Offsetting of Assets | ||
Gross Amounts of Recognized Assets | $ 588 | $ 365 |
Gross Amounts Offset in the Consolidated Balance Sheets | (84) | (21) |
Net Presented in the Consolidated Balance Sheets | 504 | 344 |
Financial Instruments | (115) | (88) |
Cash Collateral Received | (326) | (234) |
Non-Cash Collateral Received | (27) | 0 |
Net Assets Exposed | 36 | 22 |
Offsetting of Liabilities | ||
Gross Amounts of Recognized Liabilities | 270 | 390 |
Gross Amounts Offset in the Consolidated Balance Sheets | (84) | (21) |
Net Presented in the Consolidated Balance Sheets | 186 | 369 |
Financial Instruments | (115) | (88) |
Cash Collateral Pledged | 0 | 0 |
Non-Cash Collateral Pledged | (8) | 0 |
Net Liabilities | $ 63 | $ 281 |
Leases Components of Operating
Leases Components of Operating Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 523 | $ 398 |
Variable lease cost | 140 | 128 |
Total operating lease cost | $ 663 | $ 526 |
Leases Narrative (Details)
Leases Narrative (Details) $ in Billions | Mar. 31, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term | 10 years |
Weighted average discount rate | 2.70% |
Operating leases not yet commenced, future minimum lease payments | $ 7 |
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 Supplemental Cash Flow I
Leases Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Cash payments for operating leases | $ 430 | $ 374 |
New operating lease assets obtained in exchange for operating lease liabilities | $ 770 | $ 1,131 |
Leases Future Minimum Lease Pay
Leases Future Minimum Lease Payments (Details) $ in Millions | Mar. 31, 2020USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remainder of 2020 | $ 1,378 |
2021 | 1,939 |
2022 | 1,782 |
2023 | 1,612 |
2024 | 1,389 |
Thereafter | 6,146 |
Total future lease payments | 14,246 |
Less imputed interest | (2,458) |
Total lease liability balance | $ 11,788 |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Narrative) (Details) - USD ($) $ in Billions | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Assets not available for use | $ 5.2 | $ 3.1 |
Liabilities with no recourse | 2.2 | 1.2 |
Noncontrolling interest | 2.8 | $ 1.2 |
Waymo | ||
Variable Interest Entity [Line Items] | ||
Noncontrolling interest | $ 2.2 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | |||||
Apr. 30, 2016USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2016USD ($) | Feb. 28, 2014USD ($) | May 31, 2011USD ($)Tranche | |
Debt Instrument [Line Items] | ||||||
Commercial paper | $ 0 | $ 0 | ||||
Estimated fair value of long-term debt | $ 4,200,000,000 | 4,100,000,000 | ||||
3.625% Notes due on May 19, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.734% | |||||
3.375% Notes due on February 25, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 3.377% | |||||
1.998% Notes due on August 15, 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate | 2.231% | |||||
Unsecured debt | Unsecured Senior Notes 3.375% due on February 2024 and Unsecured Senior Notes 3.625% Due May 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 1,700,000,000 | |||||
Gain (loss) on modification of debt | 0 | |||||
Unsecured debt | 2016 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 2,000,000,000 | |||||
Google | Unsecured Senior Notes 3.375% due on February 2024 and Unsecured Senior Notes 3.625% Due May 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt subject to exchange | $ 1,700,000,000 | |||||
Google | Unsecured debt | 2011 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 3,000,000,000 | |||||
Number of tranches (in tranche) | Tranche | 3 | |||||
Google | Unsecured debt | 2014 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issued | $ 1,000,000,000 | |||||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing on short term lines of credit | $ 5,000,000,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing on short term lines of credit | 4,000,000,000 | |||||
Line of credit drawn | $ 0 | $ 0 |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Long-Term Debt | ||
Unamortized discount for the Notes above | $ (40) | $ (42) |
Subtotal | 3,960 | 3,958 |
Total future finance lease payments | 1,154 | 685 |
Less: imputed interest for finance leases | (98) | (89) |
Total long-term debt | 5,016 | 4,554 |
3.625% Notes due on May 19, 2021 | ||
Long-Term Debt | ||
Long-term debt | $ 1,000 | 1,000 |
Long-term debt, interest rate | 3.625% | |
3.375% Notes due on February 25, 2024 | ||
Long-Term Debt | ||
Long-term debt | $ 1,000 | 1,000 |
Long-term debt, interest rate | 3.375% | |
1.998% Notes due on August 15, 2026 | ||
Long-Term Debt | ||
Long-term debt | $ 2,000 | $ 2,000 |
Long-term debt, interest rate | 1.998% |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Property and Equipment) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 109,684 | $ 104,207 |
Less: accumulated depreciation | (32,937) | (30,561) |
Property and equipment, net | 76,747 | 73,646 |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 41,372 | 39,865 |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 38,534 | 36,840 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 22,834 | 21,036 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 6,761 | 6,310 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 183 | $ 156 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information (Accrued Expenses and Other Current Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Balance Sheet Components Disclosure [Abstract] | ||
European Commission fines | $ 9,357 | $ 9,405 |
Accrued customer liabilities | 2,146 | 2,245 |
Accrued purchases of property and equipment | 2,536 | 2,411 |
Current operating lease liabilities | 1,312 | 1,199 |
Other accrued expenses and current liabilities | 7,250 | 7,807 |
Accrued expenses and other current liabilities | $ 22,601 | $ 23,067 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2019 | |
Components of AOCI, net of tax | |||
Beginning Balance | $ 201,442 | $ 177,628 | |
Cumulative effect of accounting change | $ (34) | ||
Other comprehensive income (loss) before reclassifications | 274 | 683 | |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 52 | (30) | |
Amounts reclassified from AOCI | (191) | (97) | |
Other comprehensive income (loss) | 135 | 556 | |
Ending Balance | 203,659 | 183,472 | |
Total | |||
Components of AOCI, net of tax | |||
Beginning Balance | (1,232) | (2,306) | |
Cumulative effect of accounting change | (30) | ||
Ending Balance | (1,097) | (1,780) | |
Foreign Currency Translation Adjustments | |||
Components of AOCI, net of tax | |||
Beginning Balance | (2,003) | (1,884) | |
Other comprehensive income (loss) before reclassifications | (550) | (36) | |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 | |
Amounts reclassified from AOCI | 0 | 0 | |
Other comprehensive income (loss) | (550) | (36) | |
Ending Balance | (2,553) | (1,920) | |
Unrealized Gains (Losses) on Available-for-Sale Investments | |||
Components of AOCI, net of tax | |||
Beginning Balance | 812 | (688) | |
Other comprehensive income (loss) before reclassifications | 498 | 719 | |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 0 | 0 | |
Amounts reclassified from AOCI | (169) | 7 | |
Other comprehensive income (loss) | 329 | 726 | |
Ending Balance | 1,141 | 38 | |
Unrealized Gains (Losses) on Cash Flow Hedges | |||
Components of AOCI, net of tax | |||
Beginning Balance | (41) | 266 | |
Other comprehensive income (loss) before reclassifications | 326 | 0 | |
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI | 52 | (30) | |
Amounts reclassified from AOCI | (22) | (104) | |
Other comprehensive income (loss) | 356 | (134) | |
Ending Balance | $ 315 | $ 102 | |
Accounting Standards Update 2016-01 | |||
Components of AOCI, net of tax | |||
Cumulative effect of accounting change | (30) | ||
Accounting Standards Update 2016-01 | Foreign Currency Translation Adjustments | |||
Components of AOCI, net of tax | |||
Cumulative effect of accounting change | 0 | ||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Available-for-Sale Investments | |||
Components of AOCI, net of tax | |||
Cumulative effect of accounting change | 0 | ||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Cash Flow Hedges | |||
Components of AOCI, net of tax | |||
Cumulative effect of accounting change | $ (30) |
Supplemental Financial Statem_6
Supplemental Financial Statement Information (Effects on Net Income of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | $ 41,159 | $ 36,339 |
Other income (expense), net | (220) | 1,538 |
Benefit (provision) for income taxes | (921) | (1,489) |
Net income | 6,836 | 6,657 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 191 | 97 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | Unrealized gains (losses) on available-for-sale investments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | 214 | (2) |
Benefit (provision) for income taxes | (45) | (5) |
Net income | 169 | (7) |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | Unrealized gains (losses) on cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Benefit (provision) for income taxes | (5) | (25) |
Net income | 22 | 104 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | Unrealized gains (losses) on cash flow hedges | Foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | 26 | 128 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income | Unrealized gains (losses) on cash flow hedges | Interest rate contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income (expense), net | $ 1 | $ 1 |
Supplemental Financial Statem_7
Supplemental Financial Statement Information (Schedule of Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Balance Sheet Components Disclosure [Abstract] | ||
Interest income | $ 586 | $ 522 |
Interest expense | (21) | (35) |
Foreign currency exchange losses, net | (81) | 74 |
Gain (loss) on debt securities, net | 12 | (2) |
Gain (loss) on equity securities, net | (814) | 1,083 |
Performance fees | 6 | (117) |
Income (loss) and impairment from equity method investments, net | 74 | (40) |
Other | 18 | 53 |
Other income (expense), net | (220) | 1,538 |
Interest costs capitalized | $ 52 | $ 31 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 20,734 | $ 20,624 | |
Patents and developed technology | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful life | 4 years 10 months 24 days | ||
Trade names and other | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful life | 5 years | ||
Customer relationships | |||
Business Acquisition [Line Items] | |||
Acquired intangible assets, weighted-average useful life | 5 years | ||
Other acquisitions | |||
Business Acquisition [Line Items] | |||
Total consideration | $ 213 | ||
Acquired intangible assets | 66 | ||
Goodwill | 132 | ||
Net assets acquired | $ 15 | ||
Fitbit | |||
Business Acquisition [Line Items] | |||
Share price (in dollars per share) | $ 7.35 | ||
Purchase price | $ 2,100 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2019 | $ 20,624 |
Acquisitions | 132 |
Foreign currency translation and other adjustments | (22) |
Balance as of March 31, 2020 | 20,734 |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2019 | 19,921 |
Acquisitions | 132 |
Foreign currency translation and other adjustments | (17) |
Balance as of March 31, 2020 | 20,036 |
Other Bets | |
Changes in Carrying Amount of Goodwill | |
Balance as of December 31, 2019 | 703 |
Acquisitions | 0 |
Foreign currency translation and other adjustments | (5) |
Balance as of March 31, 2020 | $ 698 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 5,649 | $ 5,929 | |
Accumulated Amortization | 3,809 | 3,950 | |
Net Carrying Amount | 1,840 | 1,979 | |
Patents and developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 4,691 | 4,972 | |
Accumulated Amortization | 3,401 | 3,570 | |
Net Carrying Amount | 1,290 | 1,402 | |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 245 | 254 | |
Accumulated Amortization | 28 | 30 | |
Net Carrying Amount | 217 | 224 | |
Trade names and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 713 | 703 | |
Accumulated Amortization | 380 | 350 | |
Net Carrying Amount | 333 | $ 353 | |
Acquisition-related intangible assets | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of acquisition-related intangible assets | $ 204 | $ 197 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2020 | $ 556 |
2021 | 677 |
2022 | 329 |
2023 | 69 |
2024 | 57 |
Thereafter | 152 |
Total | $ 1,840 |
Contingencies (Details)
Contingencies (Details) $ in Millions, € in Billions | Mar. 20, 2019EUR (€) | Mar. 20, 2019USD ($) | Jun. 27, 2017EUR (€) | Jun. 27, 2017USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Loss Contingencies [Line Items] | |||||||||
European Commission fines | $ 0 | $ 1,697 | |||||||
European Commission Antitrust Investigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
European Commission fines | € 1.5 | $ 1,700 | € 2.4 | $ 2,700 | $ 1,700 | € 4.3 | $ 5,100 | $ 2,700 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jul. 31, 2019 | |
Stockholders Equity Note [Line Items] | |||
Repurchases of capital stock | $ 8,496,000,000 | $ 3,025,000,000 | |
Class C Capital Stock | Share Repurchase Program | |||
Stockholders Equity Note [Line Items] | |||
Authorized share repurchase amount | $ 25,000,000,000 | ||
Repurchases of capital stock (in shares) | 6.5 | ||
Repurchases of capital stock | $ 8,500,000,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Denominator | ||
Basic net income per share (in dollars per share) | $ 9.96 | $ 9.58 |
Weighted-average effect of dilutive securities | ||
Diluted net income per share (in dollars per share) | $ 9.87 | $ 9.50 |
Class A Common Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 2,990 | $ 2,865 |
Denominator | ||
Number of shares used in basic computation (shares) | 300,249 | 299,042 |
Basic net income per share (in dollars per share) | $ 9.96 | $ 9.58 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 2,990 | $ 2,865 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 462 | 446 |
Reallocation of undistributed earnings | (27) | (23) |
Allocation of undistributed earnings | $ 3,425 | $ 3,288 |
Denominator | ||
Number of shares used in basic computation (shares) | 300,249 | 299,042 |
Weighted-average effect of dilutive securities | ||
Conversion of Class B to Class A common shares outstanding (shares) | 46,424 | 46,582 |
Number of shares used in per share computation (shares) | 346,853 | 346,134 |
Diluted net income per share (in dollars per share) | $ 9.87 | $ 9.50 |
Class A Common Stock | Restricted stock units and other contingently issuable shares | ||
Weighted-average effect of dilutive securities | ||
Restricted stock units and other contingently issuable shares (shares) | 180 | 510 |
Class B Common Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 462 | $ 446 |
Denominator | ||
Number of shares used in basic computation (shares) | 46,424 | 46,582 |
Basic net income per share (in dollars per share) | $ 9.96 | $ 9.58 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 462 | $ 446 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings | (4) | (4) |
Allocation of undistributed earnings | $ 458 | $ 442 |
Denominator | ||
Number of shares used in basic computation (shares) | 46,424 | 46,582 |
Weighted-average effect of dilutive securities | ||
Conversion of Class B to Class A common shares outstanding (shares) | 0 | 0 |
Number of shares used in per share computation (shares) | 46,424 | 46,582 |
Diluted net income per share (in dollars per share) | $ 9.87 | $ 9.50 |
Class B Common Stock | Restricted stock units and other contingently issuable shares | ||
Weighted-average effect of dilutive securities | ||
Restricted stock units and other contingently issuable shares (shares) | 0 | 0 |
Class C Capital Stock | ||
Numerator | ||
Allocation of undistributed earnings | $ 3,384 | $ 3,346 |
Denominator | ||
Number of shares used in basic computation (shares) | 339,792 | 349,245 |
Basic net income per share (in dollars per share) | $ 9.96 | $ 9.58 |
Numerator | ||
Allocation of undistributed earnings for basic computation | $ 3,384 | $ 3,346 |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 |
Reallocation of undistributed earnings | 27 | 23 |
Allocation of undistributed earnings | $ 3,411 | $ 3,369 |
Denominator | ||
Number of shares used in basic computation (shares) | 339,792 | 349,245 |
Weighted-average effect of dilutive securities | ||
Conversion of Class B to Class A common shares outstanding (shares) | 0 | 0 |
Number of shares used in per share computation (shares) | 345,414 | 354,745 |
Diluted net income per share (in dollars per share) | $ 9.87 | $ 9.50 |
Class C Capital Stock | Restricted stock units and other contingently issuable shares | ||
Weighted-average effect of dilutive securities | ||
Restricted stock units and other contingently issuable shares (shares) | 5,622 | 5,500 |
Compensation Plans (Narrative)
Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 3,400 | $ 2,900 |
Awards expected to be settled with stock | 3,190 | $ 2,769 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 27,900 | |
Weighted average recognition period for unrecognized stock-based compensation expense | 2 years 9 months 18 days |
Compensation Plans (Unvested Re
Compensation Plans (Unvested Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Unvested restricted stock units - number of shares | |
Unvested at beginning of period (in shares) | shares | 19,394,236 |
Granted (in shares) | shares | 8,843,924 |
Vested (in shares) | shares | (2,662,888) |
Forfeited/canceled (in shares) | shares | (461,707) |
Unvested at end of period (in shares) | shares | 25,113,565 |
Unvested restricted stock units - weighted-average grant-date fair value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 1,055.22 |
Granted (in dollars per share) | $ / shares | 1,406 |
Vested (in dollars per share) | $ / shares | 1,039.53 |
Forfeited/canceled (in dollars per share) | $ / shares | 1,120.92 |
Unvested at end of period (in dollars per share) | $ / shares | $ 1,179.26 |
Income Taxes (Details)
Income Taxes (Details) $ in Billions | Dec. 31, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Gross unrecognized tax benefits | $ 3.4 |
Unrecognized tax benefits that would impact effective tax rate | $ 2.3 |
Information about Segments an_3
Information about Segments and Geographic Areas (Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 41,159 | $ 36,339 |
Hedging gains (losses) | 49 | 137 |
Segment Reporting Information [Line Items] | ||
Revenue | 40,975 | 36,032 |
Other Bets | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 135 | $ 170 |
Information about Segments an_4
Information about Segments and Geographic Areas (Operating Income (Loss) by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | $ 7,977 | $ 6,608 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | 9,270 | 9,188 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | (1,121) | (868) |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Segment operating income (loss) | $ (172) | $ (1,712) |
Information about Segments an_5
Information about Segments and Geographic Areas (Capital Expenditures by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 6,005 | $ 4,638 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 5,663 | 4,534 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | 104 | 59 |
Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Capital expenditures | $ 238 | $ 45 |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | $ 3,190 | $ 2,769 |
Depreciation, amortization and impairment | 3,108 | 2,613 |
Operating Segments | Google | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | 2,988 | 2,612 |
Depreciation, amortization and impairment | 3,013 | 2,529 |
Operating Segments | Other Bets | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | 135 | 123 |
Depreciation, amortization and impairment | 92 | 84 |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | 67 | 34 |
Depreciation, amortization and impairment | $ 3 | $ 0 |
Information about Segments an_7
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 126,385 | $ 123,331 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 96,216 | 94,907 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 30,169 | $ 28,424 |
Uncategorized Items - goog-2020
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,000,000) |