Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - GOOGLE INC. | d8k.htm |
| EX-5.01 - OPINION OF WILSON SONSINI GOODRICH & ROSATI, PROFESSIONAL CORPORATION - GOOGLE INC. | dex501.htm |
| EX-99.1 - PRESS RELEASE - GOOGLE INC. | dex991.htm |
Exhibit 99.2
Google Inc.
CONSOLIDATED BALANCE SHEETS
(In millions)
| As
of December 31, 2009* |
As
of June 30, 2010 | |||||
| (unaudited) | ||||||
| Assets |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ | 10,198 | $ | 10,713 | ||
| Marketable securities |
14,287 | 19,346 | ||||
| Accounts receivable, net of allowance |
3,178 | 3,308 | ||||
| Deferred income taxes, net |
644 | 66 | ||||
| Income taxes receivable, net |
23 | 309 | ||||
| Prepaid revenue share, expenses and other assets |
837 | 1,419 | ||||
| Total current assets |
29,167 | 35,161 | ||||
| Prepaid revenue share, expenses and other assets, non-current |
415 | 452 | ||||
| Deferred income taxes, net, non-current |
263 | 443 | ||||
| Non-marketable equity securities |
129 | 377 | ||||
| Property and equipment, net |
4,845 | 4,920 | ||||
| Intangible assets, net |
775 | 904 | ||||
| Goodwill |
4,903 | 5,788 | ||||
| Total assets |
$ | 40,497 | $ | 48,045 | ||
| Liabilities and Stockholders’ Equity |
||||||
| Current liabilities: |
||||||
| Accounts payable |
$ | 216 | $ | 397 | ||
| Accrued compensation and benefits |
982 | 748 | ||||
| Accrued expenses and other current liabilities |
570 | 3,623 | ||||
| Accrued revenue share |
694 | 677 | ||||
| Deferred revenue |
285 | 302 | ||||
| Total current liabilities |
2,747 | 5,747 | ||||
| Deferred revenue, non-current |
42 | 31 | ||||
| Income taxes payable, net, non-current |
1,392 | 1,318 | ||||
| Other long-term liabilities |
312 | 336 | ||||
| Stockholders’ equity: |
||||||
| Common stock and additional paid-in capital |
15,817 | 17,109 | ||||
| Accumulated other comprehensive income |
105 | 346 | ||||
| Retained earnings |
20,082 | 23,158 | ||||
| Total stockholders’ equity |
36,004 | 40,613 | ||||
| Total liabilities and stockholders’ equity |
$ | 40,497 | $ | 48,045 | ||
| * | Derived from audited financial statements. |
Google Inc.
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except share amounts which are reflected in thousands and per share amounts)
| Three Months Ended June 30, |
Six Months
Ended June 30, | |||||||||||||
| 2009 | 2010 | 2009 | 2010 | |||||||||||
| (unaudited) | ||||||||||||||
| Revenues |
$ | 5,523 | $ | 6,820 | $ | 11,032 | $ | 13,595 | ||||||
| Costs and expenses: |
||||||||||||||
| Cost of revenues (including stock-based compensation expense of $14, $8, $26, $14) |
2,108 | 2,467 | 4,209 | 4,919 | ||||||||||
| Research and development (including stock-based compensation expense of $182, $202, $352, $393) |
708 | 898 | 1,349 | 1,716 | ||||||||||
| Sales and marketing (including stock-based compensation expense of $57, $56, $116, $110) |
469 | 629 | 903 | 1,236 | ||||||||||
| General and administrative (including stock-based compensation expense of $40, $43, $77, $83) |
364 | 461 | 814 | 871 | ||||||||||
| Total costs and expenses |
3,649 | 4,455 | 7,275 | 8,742 | ||||||||||
| Income from operations |
1,874 | 2,365 | 3,757 | 4,853 | ||||||||||
| Interest and other income (expense), net |
(18 | ) | 69 | (11 | ) | 87 | ||||||||
| Income before income taxes |
1,856 | 2,434 | 3,746 | 4,940 | ||||||||||
| Provision for income taxes |
371 | 594 | 839 | 1,145 | ||||||||||
| Net income |
$ | 1,485 | $ | 1,840 | $ | 2,907 | $ | 3,795 | ||||||
| Net income per share - basic |
$ | 4.70 | $ | 5.78 | $ | 9.21 | $ | 11.93 | ||||||
| Net income per share - diluted |
$ | 4.66 | $ | 5.71 | $ | 9.15 | $ | 11.77 | ||||||
| Shares used in per share calculation - basic |
315,901 | 318,350 | 315,576 | 318,123 | ||||||||||
| Shares used in per share calculation - diluted |
318,536 | 322,486 | 317,878 | 322,547 | ||||||||||
Google Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
| Three Months Ended June 30, |
Six Months
Ended June 30, |
|||||||||||||||
| 2009 | 2010 | 2009 | 2010 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Operating activities |
||||||||||||||||
| Net income |
$ | 1,485 | $ | 1,840 | $ | 2,907 | $ | 3,795 | ||||||||
| Adjustments: |
||||||||||||||||
| Depreciation and amortization of property and equipment |
311 | 266 | 632 | 530 | ||||||||||||
| Amortization of intangible and other assets |
66 | 76 | 148 | 143 | ||||||||||||
| Stock-based compensation expense |
293 | 309 | 571 | 600 | ||||||||||||
| Excess tax benefits from stock-based award activities |
(4 | ) | (19 | ) | (36 | ) | (31 | ) | ||||||||
| Deferred income taxes |
(101 | ) | 9 | (114 | ) | (4 | ) | |||||||||
| Other |
(2 | ) | — | (23 | ) | 2 | ||||||||||
| Changes in assets and liabilities, net of effects of acquisitions: |
||||||||||||||||
| Accounts receivable |
(139 | ) | (243 | ) | (42 | ) | (197 | ) | ||||||||
| Income taxes, net |
(389 | ) | (545 | ) | (64 | ) | (164 | ) | ||||||||
| Prepaid revenue share, expenses and other assets |
10 | (34 | ) | 88 | (191 | ) | ||||||||||
| Accounts payable |
20 | 79 | 42 | 199 | ||||||||||||
| Accrued expenses and other liabilities |
41 | 319 | (281 | ) | (75 | ) | ||||||||||
| Accrued revenue share |
15 | 11 | 19 | 34 | ||||||||||||
| Deferred revenue |
3 | 17 | 12 | 28 | ||||||||||||
| Net cash provided by operating activities |
1,609 | 2,085 | 3,859 | 4,669 | ||||||||||||
| Investing activities |
||||||||||||||||
| Purchases of property and equipment |
(139 | ) | (476 | ) | (402 | ) | (715 | ) | ||||||||
| Purchases of marketable securities |
(5,391 | ) | (12,934 | ) | (10,636 | ) | (25,421 | ) | ||||||||
| Maturities and sales of marketable securities |
5,325 | 11,135 | 10,435 | 20,630 | ||||||||||||
| Investments in non-marketable equity securities |
(9 | ) | (227 | ) | (28 | ) | (230 | ) | ||||||||
| Cash collateral received from securities lending |
— | 2,870 | — | 2,870 | ||||||||||||
| Acquisitions, net of cash acquired, and purchases of intangible and other assets |
(3 | ) | (229 | ) | (5 | ) | (419 | ) | ||||||||
| Net cash provided by (used in) investing activities |
(217 | ) | 139 | (636 | ) | (3,285 | ) | |||||||||
| Financing activities |
||||||||||||||||
| Net proceeds related to stock-based award activities |
47 | 39 | 10 | 1 | ||||||||||||
| Excess tax benefits from stock-based award activities |
4 | 19 | 36 | 31 | ||||||||||||
| Repurchase of common stock in connection with acquisitions |
— | (704 | ) | — | (801 | ) | ||||||||||
| Net cash provided by (used in) financing activities |
51 | (646 | ) | 46 | (769 | ) | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents |
42 | (57 | ) | (15 | ) | (100 | ) | |||||||||
| Net increase in cash and cash equivalents |
1,485 | 1,521 | 3,254 | 515 | ||||||||||||
| Cash and cash equivalents at beginning of period |
10,426 | 9,192 | 8,657 | 10,198 | ||||||||||||
| Cash and cash equivalents at end of period |
$ | 11,911 | $ | 10,713 | $ | 11,911 | $ | 10,713 | ||||||||
The following table presents our revenues by revenue source (in millions, unaudited):
| Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||
| 2009 | 2010 | 2009 | 2010 | |||||||||
| Advertising revenues: |
||||||||||||
| Google web sites |
$ | 3,653 | $ | 4,499 | $ | 7,345 | $ | 8,938 | ||||
| Google Network web sites |
1,684 | 2,063 | 3,322 | 4,099 | ||||||||
| Total advertising revenues |
5,337 | 6,562 | 10,667 | 13,037 | ||||||||
| Other revenues |
186 | 258 | 365 | 558 | ||||||||
| Revenues |
$ | 5,523 | $ | 6,820 | $ | 11,032 | $ | 13,595 | ||||
The following table presents our revenues, by revenue source, as a percentage of total revenues (unaudited):
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||
| 2009 | 2010 | 2009 | 2010 | |||||||||
| Advertising revenues: |
||||||||||||
| Google web sites |
66 | % | 66 | % | 67 | % | 66 | % | ||||
| Google Network web sites |
31 | % | 30 | % | 30 | % | 30 | % | ||||
| Total advertising revenues |
97 | % | 96 | % | 97 | % | 96 | % | ||||
| Other revenues |
3 | % | 4 | % | 3 | % | 4 | % | ||||
| Revenues |
100 | % | 100 | % | 100 | % | 100 | % | ||||