Google Inc.

CONSOLIDATED BALANCE SHEETS

(In millions, except share and par value amounts which are reflected in thousands,
and par value per share amounts)
As of
December 31,
2012

Assets
Current assets:
Cash and cash equivalents
Marketable securities

Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and
$5,059)
Accounts receivable, net of allowance of $581 and $631
Inventories
Receivable under reverse repurchase agreements
Deferred income taxes, net
Income taxes receivable, net
Prepaid revenue share, expenses and other assets

Class A and Class B common stock and additional paid-in capital, $0.001 par value per share:
12,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000); 329,979 (Class A 267,448,
Class B 62,531) and par value of $330 (Class A $267, Class B $63) and 335,832 (Class A 279,325,
Class B 56,507) and par value of $336 (Class A $279, Class B $57) shares issued and outstanding
Class C capital stock, $0.001 par value per share: 3,000,000 shares authorized; no shares issued and
outstanding
Accumulated other comprehensive income
Retained earnings
$
See accompanying notes

18,898
39,819

0
2,132

58,717
8,882
426
100
1,526
408
2,827

60,454
2,011
1,469

72,886
1,976
1,976

11,854
7,473

16,524
6,066

10,537
$

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
Commitments and contingencies
Stockholders equity:
Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued
and outstanding

Total stockholders equity

Total liabilities and stockholders equity

14,778
33,310
48,088
7,885
505
700
1,144

Total current assets

Prepaid revenue share, expenses and other assets, non-current
Non-marketable equity investments
Property and equipment, net
Intangible assets, net
Goodwill
Total assets
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

As of
December 31,
2013

93,798

11,492
$

110,920

2,012 $
2,549
2,239
3,258
1,471
1,673
895
240

2,453
3,009
2,502
3,755
1,729
1,374
1,062
24

14,337
2,988
100
2,046
1,872
740

15,908
2,236
139
2,638
1,947
743

22,835

25,922

538

125

48,342

61,262

71,715
93,798

87,309
110,920

Google Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
Year Ended December 31,
2011

Revenues:
Google (advertising and other)
Motorola Mobile (hardware and other)
Total revenues
Costs and expenses:
(1)
Cost of revenues - Google (advertising and other)
Cost of revenues - Motorola Mobile (hardware and other)
(1)
Research and development
(1)
Sales and marketing
(1)
General and administrative
Charge related to the resolution of Department of Justice
investigation

2012

2013

37,905 $
0

46,039
4,136

55,519
4,306

37,905

50,175

59,825

13,188
0
5,162
4,589
2,724

17,176
3,458
6,793
6,143
3,845

21,993
3,865
7,952
7,253
4,796

500

Total costs and expenses

Income from operations
Interest and other income, net

26,163
11,742
584

37,415
12,760
626

45,859
13,966
530

Income from continuing operations before income taxes

Provision for income taxes

12,326
2,589

13,386
2,598

14,496
2,282

(1)

Net income from continuing operations

Net income (loss) from discontinued operations

9,737 $
0

10,788 $
(51)

12,214
706

Net income
Net income (loss) per share of Class A and Class B common stock basic:
Continuing operations
Discontinued operations

9,737 $

10,737

12,920

30.17 $
0.00

32.97 $
(0.16)

36.70
2.12

30.17 $

32.81

38.82

29.76 $
0.00

32.46 $
(0.15)

36.05
2.08

29.76 $

32.31

38.13

249 $
0
1,061
361
303

359 $
14
1,325
498
453

469
18
1,717
578
486

1,974 $

2,649

3,268

Net income (loss) per share of Class A and Class B common stock basic
Net income (loss) per share of Class A and Class B common stock diluted:
Continuing operations
Discontinued operations
Net income (loss) per share of Class A and Class B common stock diluted
(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
See accompanying notes.

Google Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
Year Ended December 31,
2011

Net income
Other comprehensive income (loss):
Change in foreign currency translation adjustment
Available-for-sale investments:
Change in net unrealized gains
Less: reclassification adjustment for net gains included in net
income

Net change (net of tax effect of $2, $53, $30)

$
See accompanying notes.

9,737 $
(107)

Net change (net of tax effect of $54, $68, $212)

Cash flow hedges:
Change in unrealized gains
Less: reclassification adjustment for gains included in net
income
Other comprehensive income (loss)
Comprehensive income

2012

2013

10,737

75

12,920
89

348

493

(392)

(115)

(216)

(162)

233

277

(554)

39

47

(27)

(137)

12

(90)

138
9,875 $

262
10,999 $

112
(60)
52
(413)
12,507

Google Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY
(In millions, except for share amounts which are reflected in thousands)
Class A and Class B
Common Stock and
Additional Paid-In Capital
Shares

Amount

Balance at January 1, 2011

Common stock issued
Stock-based compensation expense
Stock-based compensation tax benefits
Tax withholding related to vesting of
restricted stock units
Net income
Other comprehensive income

321,301 $
3,594

Balance at December 31, 2011

Common stock issued
Stock-based compensation expense
Stock-based compensation tax benefits
Tax withholding related to vesting of
restricted stock units
Net income
Other comprehensive income

324,895
5,084

Balance at December 31, 2012

Common stock issued
Stock-based compensation expense
Stock-based compensation tax benefits
Tax withholding related to vesting of
restricted stock units
Net income
Other comprehensive income

329,979
5,853

Balance at December 31, 2013

335,832

Accumulated
Other
Comprehensive
Income

18,235 $
621
1,974
60

Retained
Earnings

138 $
0
0
0

Total
Stockholders
Equity

27,868 $
0
0
0

46,241
621
1,974
60

(626)
0
0

0
0
138

0
9,737
0

(626)
9,737
138

20,264
736
2,692
166

276
0
0
0

37,605
0
0
0

58,145
736
2,692
166

(1,023)
0
0

0
0
262

0
10,737
0

(1,023)
10,737
262

22,835
1,174
3,343
449

538
0
0
0

48,342
0
0
0

71,715
1,174
3,343
449

(1,879)
0
0

0
0
(413)

0
12,920
0

(1,879)
12,920
(413)

25,922

See accompanying notes.

125

61,262

87,309

Google Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Year Ended December 31,
2011

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 businesses
Other
Changes in assets and liabilities, net of effects of acquisitions:
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 investments
Cash collateral related to securities lending
Investments in reverse repurchase agreements
Proceeds from divestiture of businesses
Acquisitions, net of cash acquired, and purchases of intangibles and
other assets
Net cash used in investing activities
Financing activities
Net 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
Supplemental disclosures of cash flow information
Cash paid for taxes
Cash paid for interest
Non-cash investing and financing activities:
Receipt of Arris shares in connection with divestiture of Motorola home

Fair value of stock-based awards assumed in connection with

acquisition of Motorola
Property under capitalease
See accompanying notes

2012

9,737

2013

10,737

12,920

1,396
455
1,974
(86)
343
110
0
6

1,988
974
2,692
(188)
(266)
0
(188)
(28)

2,781
1,158
3,343
(481)
(437)
0
(700)
106

(1,156)
731
(30)
(232)
101
795
259
162
14,565

(787)
1,492
301
(833)
(499)
762
299
163
16,619

(1,307)
401
(234)
(696)
605
713
254
233
18,659

(3,438)
(61,672)
48,746
(428)
(354)
5
0

(3,273)
(33,410)
35,180
(696)
(334)
45
0

(7,358)
(45,444)
38,314
(569)
(299)
600
2,525

(1,900)
(19,041)

(10,568)
(13,056)

(1,448)
(13,679)

(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 $

(781)
481
10,768
(11,325)
(857)
(3)
4,120
14,778
18,898

$
$

1,471 $
40 $

2,034 $
74 $

1,932
72

$
$

0 $
0 $

0 $
41 $

175
0

0 $

0 $

258