Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - GOOGLE INC. | d384790d8k.htm |
| EX-99.1 - PRESS RELEASE - GOOGLE INC. | d384790dex991.htm |
Exhibit 99.2
Google Inc.
CONSOLIDATED BALANCE SHEETS
(In millions)
| As of December 31, 2011* |
As of June 30, 2012 |
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| (unaudited) | ||||||||
| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 9,983 | $ | 15,437 | ||||
| Marketable securities |
34,643 | 27,685 | ||||||
| Accounts receivable, net of allowance |
5,427 | 6,866 | ||||||
| Inventories |
35 | 634 | ||||||
| Receivable under reverse repurchase agreements |
745 | 475 | ||||||
| Deferred income taxes, net |
215 | 146 | ||||||
| Prepaid revenue share, expenses and other assets |
1,710 | 2,614 | ||||||
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| Total current assets |
52,758 | 53,857 | ||||||
| Prepaid revenue share, expenses and other assets, non-current |
499 | 2,263 | ||||||
| Non-marketable equity securities |
790 | 1,040 | ||||||
| Property and equipment, net |
9,603 | 10,909 | ||||||
| Intangible assets, net |
1,578 | 7,862 | ||||||
| Goodwill |
7,346 | 10,120 | ||||||
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| Total assets |
$ | 72,574 | $ | 86,051 | ||||
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| Liabilities and Stockholders’ Equity |
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| Current liabilities: |
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| Accounts payable |
$ | 588 | $ | 2,419 | ||||
| Short-term debt |
1,218 | 3,218 | ||||||
| Accrued compensation and benefits |
1,818 | 1,626 | ||||||
| Accrued expenses and other current liabilities |
1,370 | 2,750 | ||||||
| Accrued revenue share |
1,168 | 1,175 | ||||||
| Securities lending payable |
2,007 | 1,916 | ||||||
| Deferred revenue |
547 | 767 | ||||||
| Income taxes payable, net |
197 | 157 | ||||||
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| Total current liabilities |
8,913 | 14,028 | ||||||
| Long-term debt |
2,986 | 2,987 | ||||||
| Deferred revenue, non-current |
44 | 97 | ||||||
| Income taxes payable, non-current |
1,693 | 1,898 | ||||||
| Deferred income taxes, net, non-current |
287 | 1,509 | ||||||
| Other long-term liabilities |
506 | 811 | ||||||
| Stockholders’ equity: |
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| Common stock and additional paid-in capital |
20,264 | 21,357 | ||||||
| Accumulated other comprehensive income |
276 | 84 | ||||||
| Retained earnings |
37,605 | 43,280 | ||||||
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| Total stockholders’ equity |
58,145 | 64,721 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 72,574 | $ | 86,051 | ||||
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| * | 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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2012 | 2011 | 2012 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Revenues: |
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| Google (advertising and other) |
$ | 9,026 | $ | 10,964 | $ | 17,602 | $ | 21,609 | ||||||||
| Motorola (hardware and other) |
— | 1,250 | — | 1,250 | ||||||||||||
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| Total revenues |
9,026 | 12,214 | 17,602 | 22,859 | ||||||||||||
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| Costs and expenses: |
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| Cost of revenues - Google (advertising and other) (1) |
3,172 | 3,984 | 6,107 | 7,773 | ||||||||||||
| Cost of revenues - Motorola (hardware and other) (1) |
— | 1,029 | — | 1,029 | ||||||||||||
| Research and development (1) |
1,234 | 1,585 | 2,456 | 3,026 | ||||||||||||
| Sales and marketing (1) |
1,091 | 1,433 | 2,117 | 2,702 | ||||||||||||
| General and administrative (1) |
648 | 980 | 1,244 | 1,737 | ||||||||||||
| Charge related to the resolution of Department of Justice investigation |
— | — | 500 | — | ||||||||||||
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| Total costs and expenses |
6,145 | 9,011 | 12,424 | 16,267 | ||||||||||||
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| Income from operations |
2,881 | 3,203 | 5,178 | 6,592 | ||||||||||||
| Interest and other income, net |
204 | 254 | 300 | 410 | ||||||||||||
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| Income before income taxes |
3,085 | 3,457 | 5,478 | 7,002 | ||||||||||||
| Provision for income taxes |
580 | 672 | 1,174 | 1,327 | ||||||||||||
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| Net income |
$ | 2,505 | $ | 2,785 | $ | 4,304 | $ | 5,675 | ||||||||
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| Net income per share - basic |
$ | 7.77 | $ | 8.54 | $ | 13.37 | $ | 17.42 | ||||||||
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| Net income per share - diluted |
$ | 7.68 | $ | 8.42 | $ | 13.19 | $ | 17.17 | ||||||||
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| Shares used in per share calculation - basic |
322,228 | 326,272 | 321,878 | 325,786 | ||||||||||||
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| Shares used in per share calculation - diluted |
326,036 | 330,793 | 326,209 | 330,464 | ||||||||||||
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| (1) Includes stock-based compensation expense as follows: |
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| Cost of revenues - Google (advertising and other) |
$ | 51 | $ | 82 | $ | 100 | $ | 156 | ||||||||
| Cost of revenues - Motorola (hardware and other) |
— | 5 | — | 5 | ||||||||||||
| Research and development |
247 | 291 | 484 | 590 | ||||||||||||
| Sales and marketing |
74 | 120 | 152 | 217 | ||||||||||||
| General and administrative |
63 | 160 | 130 | 246 | ||||||||||||
Google Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2012 | 2011 | 2012 | |||||||||||||
| (unaudited) | ||||||||||||||||
| Operating activities |
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| Net income |
$ | 2,505 | $ | 2,785 | $ | 4,304 | $ | 5,675 | ||||||||
| Adjustments: |
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| Depreciation and amortization of property and equipment |
347 | 473 | 648 | 851 | ||||||||||||
| Amortization of intangible and other assets |
108 | 197 | 208 | 330 | ||||||||||||
| Stock-based compensation expense |
435 | 658 | 866 | 1,214 | ||||||||||||
| Excess tax benefits from stock-based award activities |
(9 | ) | (27 | ) | (33 | ) | (55 | ) | ||||||||
| Deferred income taxes |
175 | (163 | ) | 464 | 191 | |||||||||||
| Gain on sale of marketable equity securities |
— | — | — | (44 | ) | |||||||||||
| Gain on divestiture of business |
— | (188 | ) | — | (188 | ) | ||||||||||
| Other |
19 | 12 | 55 | (12 | ) | |||||||||||
| Changes in assets and liabilities, net of effects of acquisitions and divestiture: |
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| Accounts receivable |
(205 | ) | (222 | ) | (24 | ) | 79 | |||||||||
| Income taxes, net |
(171 | ) | 1,026 | (98 | ) | 1,169 | ||||||||||
| Inventories |
2 | 202 | (1 | ) | 170 | |||||||||||
| Prepaid revenue share, expenses and other assets |
(72 | ) | (912 | ) | (147 | ) | (1,188 | ) | ||||||||
| Accounts payable |
50 | (249 | ) | 77 | (80 | ) | ||||||||||
| Accrued expenses and other liabilities |
260 | 612 | 297 | (243 | ) | |||||||||||
| Accrued revenue share |
39 | 34 | 6 | 23 | ||||||||||||
| Deferred revenue |
36 | 14 | 69 | 54 | ||||||||||||
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| Net cash provided by operating activities | 3,519 | 4,252 | 6,691 | 7,946 | ||||||||||||
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| Investing activities | ||||||||||||||||
| Purchases of property and equipment |
(917 | ) | (774 | ) | (1,807 | ) | (1,381 | ) | ||||||||
| Purchases of marketable securities |
(13,364 | ) | (6,854 | ) | (20,955 | ) | (15,542 | ) | ||||||||
| Maturities and sales of marketable securities |
8,982 | 5,456 | 13,627 | 22,657 | ||||||||||||
| Investments in non-marketable equity securities |
(212 | ) | (99 | ) | (343 | ) | (202 | ) | ||||||||
| Cash collateral related to securities lending |
57 | (336 | ) | (424 | ) | (91 | ) | |||||||||
| Investments in reverse repurchase agreements |
(445 | ) | 75 | (270 | ) | 270 | ||||||||||
| Acquisitions, net of cash acquired and proceeds received from divestiture, and purchases of intangibles and other assets |
(715 | ) | (9,854 | ) | (863 | ) | (9,946 | ) | ||||||||
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| Net cash used in investing activities | (6,614 | ) | (12,386 | ) | (11,035 | ) | (4,235 | ) | ||||||||
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| Financing activities | ||||||||||||||||
| Net proceeds (payments) related to stock-based award activities |
(28 | ) | (137 | ) | 88 | (184 | ) | |||||||||
| Excess tax benefits from stock-based award activities |
9 | 27 | 33 | 55 | ||||||||||||
| Proceeds from issuance of debt, net of costs |
5,846 | 4,602 | 8,030 | 7,751 | ||||||||||||
| Repayments of debt |
(4,869 | ) | (3,853 | ) | (7,304 | ) | (5,753 | ) | ||||||||
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| Net cash provided by financing activities | 958 | 639 | 847 | 1,869 | ||||||||||||
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| Effect of exchange rate changes on cash and cash equivalents |
42 | (176 | ) | 187 | (126 | ) | ||||||||||
| Net increase (decrease) in cash and cash equivalents | (2,095 | ) | (7,671 | ) | (3,310 | ) | 5,454 | |||||||||
| Cash and cash equivalents at beginning of period | 12,415 | 23,108 | 13,630 | 9,983 | ||||||||||||
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| Cash and cash equivalents at end of period | $ | 10,320 | $ | 15,437 | $ | 10,320 | $ | 15,437 | ||||||||
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The following table presents our consolidated revenues by revenue source (in millions, unaudited):
| Three Months Ended June 30, |
Six Months Ended June 30, |
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| 2011 | 2012 | 2011 | 2012 | |||||||||||||
| Advertising revenues: |
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| Google websites |
$ | 6,232 | $ | 7,542 | $ | 12,111 | $ | 14,854 | ||||||||
| Google Network Members’ websites |
2,484 | 2,983 | 4,911 | 5,896 | ||||||||||||
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| Total advertising revenues |
8,716 | 10,525 | 17,022 | 20,750 | ||||||||||||
| Other revenues |
310 | 439 | 580 | 859 | ||||||||||||
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| Total Google revenues (advertising and other) |
9,026 | 10,964 | 17,602 | 21,609 | ||||||||||||
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| Total Motorola revenues (hardware and other) |
— | 1,250 | — | 1,250 | ||||||||||||
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| Consolidated Revenues |
$ | 9,026 | $ | 12,214 | $ | 17,602 | $ | 22,859 | ||||||||
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The following table presents our Google revenues, by revenue source, as a percentage of Google revenues (unaudited):
| Three Months Ended June 30, |
Six Months Ended June 30, |
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| 2011 | 2012 | 2011 | 2012 | |||||||||||||
| Advertising revenues: |
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| Google websites |
69 | % | 69 | % | 69 | % | 69 | % | ||||||||
| Google Network Members’ websites |
28 | % | 27 | % | 28 | % | 27 | % | ||||||||
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| Total advertising revenues |
97 | % | 96 | % | 97 | % | 96 | % | ||||||||
| Other revenues |
3 | % | 4 | % | 3 | % | 4 | % | ||||||||
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| Google revenues |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
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