Google Inc.

CONSOLIDATED BALANCE SHEETS (In millions) As of December 31, 2011 Assets Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net of allowance Inventories Receivable under reverse repurchase agreements Deferred income taxes, net Prepaid revenue share, expenses and other assets Total current assets Prepaid revenue share, expenses and other assets, non-current Non-marketable equity securities Property and equipment, net Intangible assets, net Goodwill Total assets As of December 31, 2012 (unaudited)

$9,983 34,643 5,427 35 745 215 1,710 52,758 499 790 9,603 1,578 7,346 $72,574

$14,778 33,310 7,885 505 700 1,144 2,132 60,454 2,011 1,469 11,854 7,473 10,537 $93,798

Liabilities and Stockholders' Equity Current liabilities: Accounts payable Short-term debt Accrued compensation and benefits Accrued expenses and other current liabilities Accrued revenue share Securities lending payable Deferred revenue Income taxes payable, net Total current liabilities Long-term debt Deferred revenue, non-current Income taxes payable, non-current Deferred income taxes, net, non-current Other long-term liabilities Stockholders' equity: Common stock and additional paid-in capital Accumulated other comprehensive income Retained earnings Total stockholders' equity Total liabilities and stockholders' equity

$588 1,218 1,818 1,370 1,168 2,007 547 197 8,913 2,986 44 1,693 287 506

$2,012 2,549 2,239 3,258 1,471 1,673 895 240 14,337 2,988 100 2,046 1,872 740

20,264 276 37,605 58,145 $72,574

22,835 538 48,342 71,715 $93,798

Google Inc. CONSOLIDATED STATEMENTS OF INCOME (In millions, except share amounts which are reflected in thousands and per share amounts)

Three Months Ended December 31, 2011 (unaudited) Revenues: Google (advertising and other) Motorola Mobile (hardware and other) Total revenues Costs and expenses: Cost of revenues - Google (advertising and other) (1) Cost of revenues - Motorola Mobile (hardware and other) (1) Research and development (1) Sales and marketing (1) General and administrative (1) Charge related to the resolution of Department of Justice investigation Total costs and expenses Income from operations Interest and other income, net Income from continuing operations before income taxes Provision for income taxes Net income from continuing operations Net loss from discontinued operations Net income Net income (loss) per share - basic: Continuing operations Discontinued operations Net income per share - basic Net income (loss) per share - diluted: Continuing operations Discontinued operations Net income per share - diluted Shares used in per share calculation - basic Shares used in per share calculation - diluted $10,584 10,584 $12,905 1,514 14,419 2012 2011

Twelve Months Ended December 31, 2012 (unaudited) $37,905 37,905 $46,039 4,136 50,175

3,702 1,298 1,268 809 7,077 3,507 (18) 3,489 784 2,705 $2,705

4,963 1,250 1,935 1,751 1,126 11,025 3,394 152 3,546 639 2,907 (21) $2,886

13,188 5,162 4,589 2,724 500 26,163 11,742 584 12,326 2,589 9,737 $9,737

17,176 3,458 6,793 6,143 3,845 37,415 12,760 626 13,386 2,598 10,788 (51) $10,737

$8.34 $8.34

$8.83 -0.06 $8.77

$30.17 $30.17

$32.97 -0.16 $32.81

$8.22 $8.22 324,204 329,002

$8.68 -0.06 $8.62 329,363 334,977

$29.76 $29.76 322,778 327,214

$32.46 -0.15 $32.31 327,213 332,305

(1) Includes stock-based compensation expense as follows: Cost of revenues - Google (advertising and other) Cost of revenues - Motorola Mobile (hardware and other) Research and development Sales and marketing General and administrative

$77 266 105 88 $536

$101 4 364 130 109 $708

$249 1,061 361 303 $1,974

$359 14 1,325 498 453 $2,649

Google Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)

Three Months Ended December 31, 2011 2012 (unaudited) Operating activities Net income Adjustments: Depreciation and amortization of property and equipment Amortization of intangible and other assets Stock-based compensation expense Excess tax benefits from stock-based award activities Deferred income taxes Impairment of equity investments Gain on divestiture of business Other Changes in assets and liabilities, net of effects of acquisitions and divestiture: Accounts receivable Income taxes, net Inventories Prepaid revenue share, expenses and other assets Accounts payable Accrued expenses and other liabilities Accrued revenue share Deferred revenue Net cash provided by operating activities Investing activities Purchases of property and equipment Purchases of marketable securities Maturities and sales of marketable securities Investments in non-marketable equity securities Cash collateral related to securities lending Investments in reverse repurchase agreements Acquisitions, net of cash acquired and proceeds received from divestiture, and purchases of intangibles and other assets Net cash used in investing activities $2,705 385 118 536 (25) (183) 110 3 (909) 463 (12) (104) 29 540 189 79 3,924 $2,886 630 323 716 (75) (289) (4) (559) 156 113 382 (225) 278 356 (19) 4,669

Twelve Months Ended December 31, 2011 2012 (unaudited) $9,737 1,396 455 1,974 (86) 343 110 6 (1,156) 731 (30) (232) 101 795 259 162 14,565 $10,737 1,988 974 2,692 (188) (266) (188) (28) (787) 1,492 301 (833) (499) 762 299 163 16,619

(951) (17,979) 15,639 (70) (1,048) 400 (550) (4,559)

(1,020) (9,164) 5,380 (450) (13) (150) (97) (5,514)

(3,438) (61,672) 48,746 (428) (354) 5 (1,900) (19,041)

(3,273) (33,410) 35,180 (696) (334) 45 (10,568) (13,056)

Financing activities Net proceeds (payments) related to stock-based award activities Excess tax benefits from stock-based award activities Proceeds from issuance of debt, net of costs Repayments of debt Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

15 25 2,125 (2,125) 40 (52) (647) 10,630 $9,983

(98) 75 3,984 (4,653) (692) 55 (1,482) 16,260 $14,778

(5) 86 10,905 (10,179) 807 22 (3,647) 13,630 $9,983

(287) 188 16,109 (14,781) 1,229 3 4,795 9,983 $14,778

Reconciliations of selected non-GAAP financial measures to the nearest comparable GAAP financial meaures The following tables present reconciliations of selected non-GAAP financial measures to the nearest comparable GAAP financial measures (in millions, unaudited): Three Months Ended December 31, 2011 Google Adjustments (1) Non-GAAP $10,584 3,702 1,298 1,268 809 7,077 $3,507 $77 266 105 88 536 3,625 1,032 1,163 721 6,541 $4,043

Revenues Costs and expenses: Cost of revenues Research and development Sales and marketing General and administrative Total costs and expenses Income from operations

GAAP $10,584

Three Months Ended December 31, 2012 GAAP $12,905 4,963 1,660 1,525 1,010 9,158 $3,747 Google Adjustments (1) Non-GAAP $12,905 4,862 1,314 1,401 904 8,481 $4,424 GAAP $1,514 1,250 275 226 116 1,867 ($353) Motorola Mobile Adjustments (2) Non-GAAP $1,514 1,180 173 210 103 1,666 ($152) GAAP $14,419 6,213 1,935 1,751 1,126 11,025 $3,394 Consolidated Adjustments (2) Non-GAAP $14,419 6,042 1,487 1,611 1,007 10,147 $4,272

Revenues Costs and expenses: Cost of revenues Research and development Sales and marketing General and administrative Total costs and expenses Income (loss) from operations (1) To eliminate stock-based compensation expense.

101 346 124 106 677

70 102 16 13 201

171 448 140 119 878

(2) To eliminate stock-based compensation expense, as well as restructuring and related charges recorded in Motorola Mobile.

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures

The following table presents certain non-GAAP results before certain material items (in millions, except share amounts which are reflected in thousands and per share amounts, unaudited): Three Months Ended December 31, 2011 Three Months Ended December 31, 2012

Consolidated

GAAP Actual

Operating Margin (a)

Adjustments

Non-GAAP Results

Non-GAAP Operating Margin (b)

GAAP Actual

Operating Margin (a)

Adjustments

Non-GAAP Results

Non-GAAP Operating Margin (b)

Adjustment

Non-GAAP Results with Home

$536

(c)

$700 (d) 178 (e) $4,043 38.2% $3,394 23.5% $878 $4,272 29.6% 35 (i) $35 $4,307

Income from operations

$3,507

33.1%

$536

$536 (c) (114) (f)

Net income Net income per share - diluted Shares used in per share calculation - diluted

$2,705 $8.22 329,002

$422

$3,127 $9.50 329,002

$2,886 $8.62 334,977

$700 (152) 178 (65) 21 $682

(d) (f) (e) (g) (h) $3,568 $10.65 334,977

(a) Operating margin is defined as consolidated income from operations divided by consolidated revenues. (b) Non-GAAP operating margin is defined as non-GAAP consolidated income from operations divided by consolidated revenues. (c) To eliminate $536 million of stock-based compensation expense recorded in the fourth quarter of 2011. (d) To eliminate $700 million of stock-based compensation expense recorded in the fourth quarter of 2012. (e) To eliminate $178 million of restructuring and related charges recorded in our Motorola Mobile business. (f) To eliminate income tax effects related to expenses noted in (c) and (d). (g) To eliminate income tax effects related to expense noted in (e). (h) To eliminate net loss from discontinued operations. (i) To include $35 million of impact from Motorola Home.

The following tables present certain non-GAAP results before certain material items by business (in millions, unaudited): Three Months Ended December 31, 2011 Three Months Ended December 31, 2012

Google

GAAP Actual

Operating Margin (j)

Adjustments

Non-GAAP Results

Non-GAAP Operating Margin (k)

GAAP Actual

Operating Margin (j)

Adjustments

Non-GAAP Results

Non-GAAP Operating Margin (k)

$536 Income from operations $3,507 33.1% $536

(l) $4,043 38.2% $3,747 29.0%

$677 (m) $677 $4,424 34.3%

(j) Operating margin is defined as Google income from operations divided by Google revenues. (k) Non-GAAP operating margin is defined as non-GAAP Google income from operations divided by Google revenues. (l) To eliminate $536 million of stock-based compensation expense recorded in the fourth quarter of 2011. (m) To eliminate $677 million of stock-based compensation expense recorded in the fourth quarter of 2012.

Three Months Ended December 31, 2012

Motorola Mobile

GAAP Actual

Operating Margin (n)

Adjustments

Non-GAAP Results

Non-GAAP Operating Margin (o)

Loss from operations

($353)

-23.3%

$23 (p) 178 (q) $201

($152)

-10.0%

(n) Operating margin is defined as Motorola Mobile loss from operations divided by Motorola Mobile revenues. (o) Non-GAAP operating margin is defined as non-GAAP Motorola Mobile loss from operations divided by Motorola Mobile revenues. (p) To eliminate $23 million of stock-based compensation expense recorded in the fourth quarter of 2012. (q) To eliminate $178 million of restructuring and related charges recorded in our Motorola Mobile business.

Reconciliation from net cash provided by operating activities to free cash flow (in millions, unaudited):

Three Months Ended December 31, 2012 Net cash provided by operating activities Less purchases of property and equipment Free cash flow Net cash used in investing activities* Net cash used in financing activities
*Includes purchases of property and equipment.

$4,669 (1,020) $3,649 ($5,514) ($692)

Reconciliation from GAAP international revenues to non-GAAP international revenues (in millions, unaudited):

Consolidated
United Kingdom revenues (GAAP) Exclude foreign exchange impact on Q4'12 revenues using Q4'11 rates Exclude foreign exchange impact on Q4'12 revenues using Q3'12 rates Exclude hedging gains recognized in Q4'12 United Kingdom revenues excluding foreign exchange and hedging impact (Non-GAAP) Rest of the world revenues (GAAP) Exclude foreign exchange impact on Q4'12 revenues using Q4'11 rates Exclude foreign exchange impact on Q4'12 revenues using Q3'12 rates Exclude hedging gains recognized in Q4'12 Rest of the world revenues excluding foreign exchange and hedging impact (Non-GAAP)

Three Months Ended December 31, 2012 (using Q411's FX rates) $1,323 (17) (1) $1,305 $6,340 238 (36) $6,542

Three Months Ended December 31, 2012 (using Q312's FX rates) $1,323 (28) (1) $1,294 $6,340 (106) (36) $6,198

Google
Three Months Ended December 31, 2012 (using Q411's FX rates) $1,305 (16) (1) $1,288 $5,608 209 (36) $5,781 Three Months Ended December 31, 2012 (using Q312's FX rates) $1,305 (27) (1) $1,277 $5,608 (103) (36) $5,469

United Kingdom revenues (GAAP) Exclude foreign exchange impact on Q4'12 revenues using Q4'11 rates Exclude foreign exchange impact on Q4'12 revenues using Q3'12 rates Exclude hedging gains recognized in Q4'12 United Kingdom revenues excluding foreign exchange and hedging impact (Non-GAAP) Rest of the world revenues (GAAP) Exclude foreign exchange impact on Q4'12 revenues using Q4'11 rates Exclude foreign exchange impact on Q4'12 revenues using Q3'12 rates Exclude hedging gains recognized in Q4'12 Rest of the world revenues excluding foreign exchange and hedging impact (Non-GAAP)

The following table presents our consolidated revenues by revenue source (in millions): Three Months Ended December 31, 2011 2012 (unaudited) Advertising revenues: Google websites Google Network Members' websites Total advertising revenues Other revenues Total Google revenues (advertising and other) Total Motorola Mobile revenues (hardware and other) Consolidated revenues $7,294 2,880 10,174 410 10,584 $10,584 $8,640 3,436 12,076 829 12,905 1,514 $14,419 Twelve Months Ended December 31, 2011 2012 (unaudited) $26,145 10,386 36,531 1,374 37,905 $37,905 $31,221 12,465 43,686 2,353 46,039 4,136 $50,175

The following table presents our Google revenues, by revenue source, as a percentage of Google revenues: Three Months Ended December 31, 2011 2012 (unaudited) Advertising revenues: Google websites Google Network Members' websites Total advertising revenues Other revenues Google revenues 69% 27% 96% 4% 100% 67% 27% 94% 6% 100% Twelve Months Ended December 31, 2011 2012 (unaudited) 69% 27% 96% 4% 100% 68% 27% 95% 5% 100%