GOOGLE INC. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - July 18, 2013

Attached files

file filename
8-K - 8-K - GOOGLE INC.googq220138-k.htm
EX-99.1 - EXHIBIT 99.1 - GOOGLE INC.googq22013exhibit991.htm


Exhibit 99.2
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
 
As of
June 30,
2013


 
(unaudited)
Assets

 

Current assets:

 

Cash and cash equivalents
$
14,778

 
$
16,164

Marketable securities
33,310

 
38,268

Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $4,791)
48,088

 
54,432

Accounts receivable, net of allowance of $581 and $505
7,885

 
7,321

Inventories
505

 
342

Receivable under reverse repurchase agreements
700

 
770

Deferred income taxes, net
1,144

 
1,148

Income taxes receivable, net
0

 
72

Prepaid revenue share, expenses and other assets
2,132

 
2,776

Total current assets
60,454

 
66,861

Prepaid revenue share, expenses and other assets, non-current
2,011

 
1,891

Non-marketable equity investments
1,469

 
1,564

Property and equipment, net
11,854

 
12,912

Intangible assets, net
7,473

 
6,558

Goodwill
10,537

 
11,396

Total assets
$
93,798

 
$
101,182

Liabilities and Stockholders’ Equity

 

Current liabilities:

 

Accounts payable
$
2,012

 
$
1,758

Short-term debt
2,549

 
3,000

Accrued compensation and benefits
2,239

 
1,803

Accrued expenses and other current liabilities
3,258

 
3,300

Accrued revenue share
1,471

 
1,458

Securities lending payable
1,673

 
3,211

Deferred revenue
895

 
799

Income taxes payable, net
240

 
0

Total current liabilities
14,337

 
15,329

Long-term debt
2,988

 
1,989

Deferred revenue, non-current
100

 
132

Income taxes payable, non-current
2,046

 
2,271

Deferred income taxes, net, non-current
1,872

 
1,905

Other long-term liabilities
740

 
704

Stockholders’ equity:

 

Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding
0

 
0

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 333,134 (Class A 273,852, Class B 59,282) and par value of $333 (Class A $274, Class B $59) shares issued and outstanding
22,835

 
24,334





Class C capital stock, $0.001 par value per share: 3,000,000 shares authorized; no shares issued and outstanding
0

 
0

Accumulated other comprehensive income (loss)
538

 
(398
)
Retained earnings
48,342

 
54,916

Total stockholders’ equity
71,715

 
78,852

Total liabilities and stockholders’ equity
$
93,798

 
$
101,182




    





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,
 
2012
 
2013
 
2012
 
2013
 
(unaudited)
Revenues:

 

 

 

Google (advertising and other)
$
10,964

 
$
13,107

 
$
21,609

 
$
26,058

Motorola Mobile (hardware and other)
843

 
998

 
843

 
2,016

Total revenues
11,807

 
14,105

 
22,452

 
28,074

Costs and expenses:

 

 

 

Cost of revenues - Google (advertising and other) (1)
3,984

 
5,195

 
7,773

 
10,331

Cost of revenues - Motorola Mobile (hardware and other) (1)
693

 
868

 
693

 
1,676

Research and development (1)
1,538

 
1,987

 
2,979

 
3,824

Sales and marketing (1)
1,413

 
1,735

 
2,682

 
3,321

General and administrative (1)
942

 
1,197

 
1,699

 
2,322

Total costs and expenses
8,570

 
10,982

 
15,826

 
21,474

Income from operations
3,237

 
3,123

 
6,626

 
6,600

Interest and other income, net
253

 
247

 
409

 
381

Income from continuing operations before income taxes
3,490

 
3,370

 
7,035

 
6,981

Provision for income taxes
657

 
816

 
1,312

 
1,103

Net income from continuing operations
2,833

 
2,554

 
5,723

 
5,878

Net income (loss) from discontinued operations
(48
)
 
674

 
(48
)
 
696

Net income
$
2,785

 
$
3,228

 
$
5,675

 
$
6,574

Net income per share - basic:

 

 

 

Continuing operations
$
8.68

 
$
7.68

 
$
17.56

 
$
17.73

Discontinued operations
(0.14
)
 
2.03

 
(0.14
)
 
2.10

Net income per share - basic
$
8.54

 
$
9.71

 
$
17.42

 
$
19.83

Net income per share - diluted:

 

 

 

Continuing operations
$
8.56

 
$
7.55

 
$
17.31

 
$
17.42

Discontinued operations
(0.14
)
 
1.99

 
(0.14
)
 
2.06

Net income per share - diluted
$
8.42

 
$
9.54

 
$
17.17

 
$
19.48



 

 

 

Shares used in per share calculation - basic
326,272

 
332,480

 
325,786

 
331,467

Shares used in per share calculation - diluted
330,793

 
338,337

 
330,464

 
337,500



 

 

 

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

 

 

 

Cost of revenues - Google (advertising and other)
$
82

 
$
110

 
$
156

 
$
209

Cost of revenues - Motorola Mobile (hardware and other)
4

 
5

 
4

 
10

Research and development
289

 
421

 
588

 
782

Sales and marketing
118

 
134

 
215

 
259

General and administrative
142

 
113

 
228

 
220


$
635

 
$
783

 
$
1,191

 
$
1,480






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

Three Months Ended
 
Six Months Ended

June 30,
 
June 30,

2012
 
2013
 
2012
 
2013

(unaudited)
 
(unaudited)
Operating activities
 
 
 
 
 
 
 
Net income
$
2,785

 
$
3,228

 
$
5,675

 
$
6,574

Adjustments:

 

 

 

Depreciation and amortization of property and equipment
473

 
747

 
851

 
1,331

Amortization of intangible and other assets
197

 
283

 
330

 
598

Stock-based compensation expense
658

 
847

 
1,214

 
1,555

Excess tax benefits from stock-based award activities
(27
)
 
(104
)
 
(55
)
 
(198
)
Deferred income taxes
(163
)
 
63

 
191

 
265

Gain on divestiture of businesses
(188
)
 
(716
)
 
(188
)
 
(690
)
Other
12

 
(65
)
 
(56
)
 
(54
)
Changes in assets and liabilities, net of effects of acquisitions:

 

 

 

Accounts receivable
(222
)
 
(194
)
 
79

 
62

Income taxes, net
1,026

 
179

 
1,169

 
(156
)
Inventories
202

 
(16
)
 
170

 
(158
)
Prepaid revenue share, expenses and other assets
(912
)
 
(136
)
 
(1,188
)
 
(348
)
Accounts payable
(249
)
 
(159
)
 
(80
)
 
(72
)
Accrued expenses and other liabilities
612

 
696

 
(243
)
 
(363
)
Accrued revenue share
34

 
35

 
23

 
8

Deferred revenue
14

 
17

 
54

 
(16
)
Net cash provided by operating activities
4,252

 
4,705

 
7,946

 
8,338

Investing activities

 

 

 

Purchases of property and equipment
(774
)
 
(1,611
)
 
(1,381
)
 
(2,814
)
Purchases of marketable securities
(6,854
)
 
(14,948
)
 
(15,542
)
 
(22,782
)
Maturities and sales of marketable securities
5,456

 
10,687

 
22,657

 
17,006

Investments in non-marketable equity investments
(99
)
 
(136
)
 
(202
)
 
(172
)
Cash collateral related to securities lending
(336
)
 
974

 
(91
)
 
1,538

Investments in reverse repurchase agreements
75

 
(70
)
 
270

 
(70
)
Proceeds from divestiture of businesses
201

 
2,313

 
201

 
2,351

Acquisitions, net of cash acquired, and purchases of intangibles and other assets
(10,055
)
 
(1,012
)
 
(10,147
)
 
(1,301
)
Net cash used in investing activities
(12,386
)
 
(3,803
)
 
(4,235
)
 
(6,244
)
Financing activities

 

 

 

Net payments related to stock-based award activities
(137
)
 
(58
)
 
(184
)
 
(268
)
Excess tax benefits from stock-based award activities
27

 
104

 
55

 
198

Proceeds from issuance of debt, net of costs
4,602

 
2,729

 
7,751

 
5,651

Repayments of debt
(3,853
)
 
(2,880
)
 
(5,753
)
 
(6,203
)




Net cash provided by (used in) financing activities
639

 
(105
)
 
1,869

 
(622
)
Effect of exchange rate changes on cash and cash equivalents
(176
)
 
(8
)
 
(126
)
 
(86
)
Net increase (decrease) in cash and cash equivalents
(7,671
)
 
789

 
5,454

 
1,386

Cash and cash equivalents at beginning of period
23,108

 
15,375

 
9,983

 
14,778

Cash and cash equivalents at end of period
$
15,437

 
$
16,164

 
$
15,437

 
$
16,164







The following table presents our consolidated revenues by revenue source (in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2012
 
2013
 
2012
 
2013
 
(unaudited)
Google
 
 
 
 
 
 
 
Advertising revenues:

 

 

 

Google websites
$
7,542

 
$
8,868

 
$
14,854

 
$
17,508

Google Network Members' websites
2,983

 
3,193

 
5,896

 
6,455

Total advertising revenues
10,525

 
12,061

 
20,750

 
23,963

Other revenues
439

 
1,046

 
859

 
2,095

Total Google revenues (advertising and other)
10,964

 
13,107

 
21,609

 
26,058

Motorola Mobile

 

 

 

Total Motorola Mobile revenues (hardware and other)
843

 
998

 
843

 
2,016

Total revenues
$
11,807

 
$
14,105

 
$
22,452

 
$
28,074


The following table presents our Google revenues, by revenue source, as a percentage of Google revenues:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2012
 
2013
 
2012
 
2013
 
(unaudited)
Advertising revenues:

 

 

 

Google websites
69
%
 
68
%
 
69
%
 
67
%
Google Network Members' websites
27
%
 
24
%
 
27
%
 
25
%
Total advertising revenues
96
%
 
92
%
 
96
%
 
92
%
Other revenues
4
%
 
8
%
 
4
%
 
8
%
Google revenues
100
%
 
100
%
 
100
%
 
100
%





Stock widget

Investing forum

GOOGLE INC. Reports