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8-K/A - AMENDMENT #1 TO FORM 8-K - GOOGLE INC. | d426664d8ka.htm |
EX-99.1 - PRESS RELEASE - GOOGLE INC. | d426664dex991.htm |
Exhibit 99.2
Google Inc.
CONSOLIDATED BALANCE SHEETS
(In millions)
As of December 31, 2011* |
As of September 30, 2012 |
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(unaudited) | ||||||||
Assets |
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Current assets: |
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Cash and cash equivalents |
$ | 9,983 | $ | 16,260 | ||||
Marketable securities |
34,643 | 29,464 | ||||||
Accounts receivable, net of allowance |
5,427 | 7,259 | ||||||
Inventories |
35 | 618 | ||||||
Receivable under reverse repurchase agreements |
745 | 550 | ||||||
Deferred income taxes, net |
215 | 230 | ||||||
Prepaid revenue share, expenses and other assets |
1,710 | 2,440 | ||||||
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Total current assets |
52,758 | 56,821 | ||||||
Prepaid revenue share, expenses and other assets, non-current |
499 | 2,206 | ||||||
Non-marketable equity securities |
790 | 1,063 | ||||||
Property and equipment, net |
9,603 | 11,401 | ||||||
Intangible assets, net |
1,578 | 7,754 | ||||||
Goodwill |
7,346 | 10,485 | ||||||
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Total assets |
$ | 72,574 | $ | 89,730 | ||||
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Liabilities and Stockholders Equity |
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Current liabilities: |
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Accounts payable |
$ | 588 | $ | 2,233 | ||||
Short-term debt |
1,218 | 3,218 | ||||||
Accrued compensation and benefits |
1,818 | 1,926 | ||||||
Accrued expenses and other current liabilities |
1,370 | 3,313 | ||||||
Accrued revenue share |
1,168 | 1,108 | ||||||
Securities lending payable |
2,007 | 1,686 | ||||||
Deferred revenue |
547 | 905 | ||||||
Income taxes payable, net |
197 | 45 | ||||||
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Total current liabilities |
8,913 | 14,434 | ||||||
Long-term debt |
2,986 | 2,988 | ||||||
Deferred revenue, non-current |
44 | 100 | ||||||
Income taxes payable, non-current |
1,693 | 2,034 | ||||||
Deferred income taxes, net, non-current |
287 | 1,461 | ||||||
Other long-term liabilities |
506 | 685 | ||||||
Stockholders equity: |
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Common stock and additional paid-in capital |
20,264 | 22,204 | ||||||
Accumulated other comprehensive income |
276 | 368 | ||||||
Retained earnings |
37,605 | 45,456 | ||||||
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Total stockholders equity |
58,145 | 68,028 | ||||||
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Total liabilities and stockholders equity |
$ | 72,574 | $ | 89,730 | ||||
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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 September 30, |
Nine Months Ended September 30, |
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2011 | 2012 | 2011 | 2012 | |||||||||||||
(unaudited) | ||||||||||||||||
Revenues: |
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Google (advertising and other) |
$ | 9,720 | $ | 11,526 | $ | 27,322 | $ | 33,135 | ||||||||
Motorola (hardware and other) |
| 2,575 | | 3,825 | ||||||||||||
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Total revenues |
9,720 | 14,101 | 27,322 | 36,960 | ||||||||||||
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Costs and expenses: |
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Cost of revenues - Google (advertising and other) (1) |
3,378 | 4,440 | 9,485 | 12,213 | ||||||||||||
Cost of revenues - Motorola (hardware and other) (1) |
| 2,114 | | 3,143 | ||||||||||||
Research and development (1) |
1,404 | 2,009 | 3,861 | 5,035 | ||||||||||||
Sales and marketing (1) |
1,204 | 1,760 | 3,322 | 4,462 | ||||||||||||
General and administrative (1) |
676 | 1,042 | 1,919 | 2,779 | ||||||||||||
Charge related to the resolution of Department of Justice investigation |
| | 500 | | ||||||||||||
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Total costs and expenses |
6,662 | 11,365 | 19,087 | 27,632 | ||||||||||||
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Income from operations |
3,058 | 2,736 | 8,235 | 9,328 | ||||||||||||
Interest and other income, net |
302 | 63 | 602 | 473 | ||||||||||||
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Income before income taxes |
3,360 | 2,799 | 8,837 | 9,801 | ||||||||||||
Provision for income taxes |
631 | 623 | 1,804 | 1,950 | ||||||||||||
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Net income |
$ | 2,729 | $ | 2,176 | $ | 7,033 | $ | 7,851 | ||||||||
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Net income per share - basic |
$ | 8.44 | $ | 6.64 | $ | 21.82 | $ | 24.05 | ||||||||
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Net income per share - diluted |
$ | 8.33 | $ | 6.53 | $ | 21.53 | $ | 23.69 | ||||||||
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Shares used in per share calculation - basic |
323,155 | 327,785 | 322,304 | 326,452 | ||||||||||||
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Shares used in per share calculation - diluted |
327,439 | 333,314 | 326,619 | 331,414 | ||||||||||||
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(1) Includes stock-based compensation expense as follows: |
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Cost of revenues - Google (advertising and other) |
$ | 72 | $ | 103 | $ | 172 | $ | 259 | ||||||||
Cost of revenues - Motorola (hardware and other) |
| 8 | | 13 | ||||||||||||
Research and development |
311 | 378 | 795 | 968 | ||||||||||||
Sales and marketing |
104 | 155 | 256 | 372 | ||||||||||||
General and administrative |
84 | 118 | 214 | 364 | ||||||||||||
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$ | 571 | $ | 762 | $ | 1,437 | $ | 1,976 | |||||||||
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Google Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2011 | 2012 | 2011 | 2012 | |||||||||||||
(unaudited) | ||||||||||||||||
Operating activities |
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Net income |
$ | 2,729 | $ | 2,176 | $ | 7,033 | $ | 7,851 | ||||||||
Adjustments: |
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Depreciation and amortization of property and equipment |
363 | 507 | 1,011 | 1,358 | ||||||||||||
Amortization of intangible and other assets |
129 | 321 | 337 | 651 | ||||||||||||
Stock-based compensation expense |
571 | 762 | 1,437 | 1,976 | ||||||||||||
Excess tax benefits from stock-based award activities |
(28 | ) | (58 | ) | (61 | ) | (113 | ) | ||||||||
Deferred income taxes |
62 | (168 | ) | 526 | 23 | |||||||||||
Gain on divestiture of business |
| | | (188 | ) | |||||||||||
Other |
(52 | ) | 32 | 3 | (24 | ) | ||||||||||
Changes in assets and liabilities, net of effects of acquisitions and divestiture: |
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Accounts receivable |
(223 | ) | (307 | ) | (247 | ) | (228 | ) | ||||||||
Income taxes, net |
366 | 167 | 268 | 1,336 | ||||||||||||
Inventories |
(20 | ) | 18 | (18 | ) | 188 | ||||||||||
Prepaid revenue share, expenses and other assets |
22 | (27 | ) | (128 | ) | (1,215 | ) | |||||||||
Accounts payable |
(5 | ) | (194 | ) | 72 | (274 | ) | |||||||||
Accrued expenses and other liabilities |
(42 | ) | 727 | 255 | 484 | |||||||||||
Accrued revenue share |
64 | (80 | ) | 70 | (57 | ) | ||||||||||
Deferred revenue |
14 | 128 | 83 | 182 | ||||||||||||
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Net cash provided by operating activities |
3,950 | 4,004 | 10,641 | 11,950 | ||||||||||||
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Investing activities |
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Purchases of property and equipment |
(680 | ) | (872 | ) | (2,487 | ) | (2,253 | ) | ||||||||
Purchases of marketable securities |
(22,738 | ) | (8,704 | ) | (43,693 | ) | (24,246 | ) | ||||||||
Maturities and sales of marketable securities |
19,480 | 7,143 | 33,107 | 29,800 | ||||||||||||
Investments in non-marketable equity securities |
(15 | ) | (44 | ) | (358 | ) | (246 | ) | ||||||||
Cash collateral related to securities lending |
1,119 | (230 | ) | 694 | (321 | ) | ||||||||||
Investments in reverse repurchase agreements |
(125 | ) | (75 | ) | (395 | ) | 195 | |||||||||
Acquisitions, net of cash acquired and proceeds received from divestiture, and purchases of intangibles and other assets |
(488 | ) | (525 | ) | (1,350 | ) | (10,471 | ) | ||||||||
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Net cash used in investing activities |
(3,447 | ) | (3,307 | ) | (14,482 | ) | (7,542 | ) | ||||||||
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Financing activities |
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Net payments related to stock-based award activities |
(108 | ) | (5 | ) | (20 | ) | (189 | ) | ||||||||
Excess tax benefits from stock-based award activities |
28 | 58 | 61 | 113 | ||||||||||||
Proceeds from issuance of debt, net of costs |
750 | 4,374 | 8,780 | 12,125 | ||||||||||||
Repayments of debt |
(750 | ) | (4,375 | ) | (8,054 | ) | (10,128 | ) | ||||||||
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Net cash provided by (used in) financing activities |
(80 | ) | 52 | 767 | 1,921 | |||||||||||
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Effect of exchange rate changes on cash and cash equivalents |
(113 | ) | 74 | 74 | (52 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents |
310 | 823 | (3,000 | ) | 6,277 | |||||||||||
Cash and cash equivalents at beginning of period |
10,320 | 15,437 | 13,630 | 9,983 | ||||||||||||
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Cash and cash equivalents at end of period |
$ | 10,630 | $ | 16,260 | $ | 10,630 | $ | 16,260 | ||||||||
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The following table presents our consolidated revenues by revenue source (in millions, unaudited):
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2011 | 2012 | 2011 | 2012 | |||||||||||||
Advertising revenues: |
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Google websites |
$ | 6,740 | $ | 7,727 | $ | 18,851 | $ | 22,581 | ||||||||
Google Network Members websites |
2,595 | 3,133 | 7,506 | 9,029 | ||||||||||||
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Total advertising revenues |
9,335 | 10,860 | 26,357 | 31,610 | ||||||||||||
Other revenues |
385 | 666 | 965 | 1,525 | ||||||||||||
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Total Google revenues (advertising and other) |
9,720 | 11,526 | 27,322 | 33,135 | ||||||||||||
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Total Motorola revenues (hardware and other) |
| 2,575 | | 3,825 | ||||||||||||
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Consolidated revenues |
$ | 9,720 | $ | 14,101 | $ | 27,322 | $ | 36,960 | ||||||||
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The following table presents our Google revenues, by revenue source, as a percentage of Google revenues (unaudited):
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2011 | 2012 | 2011 | 2012 | |||||||||||||
Advertising revenues: |
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Google websites |
69 | % | 67 | % | 69 | % | 68 | % | ||||||||
Google Network Members websites |
27 | % | 27 | % | 27 | % | 27 | % | ||||||||
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Total advertising revenues |
96 | % | 94 | % | 96 | % | 95 | % | ||||||||
Other revenues |
4 | % | 6 | % | 4 | % | 5 | % | ||||||||
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Google revenues |
100 | % | 100 | % | 100 | % | 100 | % | ||||||||
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