Assets

Current assets:

Cash and cash equivalents

Marketable securities

Accounts receivable, net of allowance

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

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

Revenues:

Costs and expenses:

Costs of revenues ⁽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 before income taxes

Provision for income taxes

Net income

Net income per share - basic

Net income per share - diluted

Shares used in per share calculation - basic

Shares used in per share calculation - diluted

⁽¹⁾      Includes stock-based compensation expense as follows:

Costs of revenues

Research and development

Sales and marketing

General and administrative

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

Gain on marketable equity securities

Other

Changes in assets and liabilities, net of effects of acquisitions:

Accounts receivable

Income taxes, net

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 received (returned) related to securities lending

Maturities of reverse repurchase agreements

Acquisitions, net of cash acquired, and purchases of intangible and other assets

Net cash provided by (used in) investing activities

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

Advertising revenues:

Google websites

Google Network Members’ websites

Total advertising revenues

Other revenues

Revenues

Advertising revenues:

Google websites

Google Network Members’ websites

Total advertising revenues

Other revenues

Revenues