Alphabet Inc
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
GOOGL$284.78+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-24.
0001652044-24-000079
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001652044-24-000118
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 214 previous paragraphs and 221 current paragraphs.
161 unchanged; 46 reworded; 12 added; 5 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
NM = Not Meaningful
Current report
•Cost of revenues was $36.5 billion, an increase of 10% year over year, primarily driven by increases in TAC, content acquisition costs, depreciation expense, and devices costs due to Pixel family product launch timing in the third quarter this year as compared to the fourth quarter last year.
Current report
•Operating expenses were $23.3 billion, an increase of 5% year over year, primarily driven by charges related to our office space optimization efforts and increases in depreciation expense, compensation expenses, and advertising and promotional activities. These increases were partially offset by a reduction in charges related to legal and other matters.
Current report
•As of September 30, 2024, we had 181,269 employees.
Current report
The increase in other cost of revenues from the three months ended September 30, 2023 to the three months ended September 30, 2024 was primarily due to increases in content acquisition costs, largely for YouTube, depreciation expense, and devices costs, due to Pixel family product launch timing in the third quarter this year as compared to the fourth quarter last year.
Current report
R&D expenses increased $1.2 billion from the three months ended September 30, 2023 to the three months ended September 30, 2024, primarily driven by increases in compensation expenses of $358 million, depreciation expense of $353 million, and charges related to our office space optimization efforts of $188 million. The increase in compensation expenses was largely due to an increase in SBC expense of $214 million.
Current report
Sales and marketing expenses increased $343 million from the three months ended September 30, 2023 to the three months ended September 30, 2024, primarily driven by an increase in advertising and promotional activities of $206 million.
Current report
Other Bets operating loss decreased $78 million from the three months ended September 30, 2023 to the three months ended September 30, 2024, due to a combination of factors, none of which were individually significant.
Current report
The effective tax rate increased from the three months ended September 30, 2023 to the three months ended September 30, 2024. This increase was primarily due to a cumulative one-time adjustment recorded for tax rule changes issued by the Internal Revenue Service (IRS) in the third quarter of 2023. Additionally, a decrease in the U.S. federal Foreign Derived Intangible Income tax deduction in 2024 contributed to the higher effective tax rate.
Current report
During the three and nine months ended September 30, 2024, total cash dividends were $1.2 billion and $2.3 billion for Class A, $173 million and $346 million for Class B, and $1.1 billion and $2.2 billion for Class C shares, respectively.
Current report
On September 10, 2024, the European Court of Justice rejected our appeal of the 2017 decision and upheld the €2.4 billion fine. In the third quarter of 2024, we made a cash payment of $3.0 billion for the 2017 shopping fine.
Current report
On September 18, 2024, the EU's General Court overturned the 2019 decision and annulled the €1.5 billion fine. The EC has until November 28, 2024 to appeal the decision.
Removed paragraphs (5)
Previous report
•Cost of revenues was $35.5 billion, an increase of 11% year over year, primarily driven by increases in content acquisition costs, TAC, depreciation expense, digital services tax related to the recently enacted law in Canada, which is applied retroactively, and other technical infrastructure operations costs.
Previous report
•Operating expenses were $21.8 billion, an increase of 5% year over year, primarily driven by increases in compensation expenses, depreciation expense, and third-party services fees. The increase in compensation expenses was largely due to an increase in SBC expenses, which primarily reflects the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period. These increases were partially offset by a reduction in charges related to legal matters.
Previous report
•As of June 30, 2024, we had 179,582 employees.
Previous report
R&D expenses increased $1.7 billion from the six months ended June 30, 2023 to the six months ended June 30, 2024, primarily driven by increases in depreciation expense of $640 million, compensation expenses of $522 million, and third-party services fees of $472 million. The increase in compensation expenses was primarily related to an increase in SBC expenses of $790 million, excluding employee severance and related charges, and reflects the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period. The increase in compensation expenses is partially offset by a reduction in employee severance and related charges of $569 million.
Previous report
For additional information, see Note 6 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q for further information.
Reworded paragraphs (46)
Previous wording
•Revenues were $84.7 billion, an increase of 14% year over year, primarily driven by an increase in Google Services revenues of $7.6 billion, or 12%, and an increase in Google Cloud revenues of $2.3 billion, or 29%.
Current wording
•Revenues were$88.3 billion, an increase of 15% year over year, primarily driven by an increase in Google Services revenues of $8.5 billion, or 13%, and an increase in Google Cloud revenues of $2.9 billion, or 35%.
Previous wording
•Total constant currency revenues, which exclude the effect of hedging, increased 15% year over year.
Current wording
•Total constant currency revenues, which exclude the effect of hedging, increased 16% year over year.
Previous wording
•Repurchases of Class A and Class C shares were $3.3 billion and $12.3 billion, respectively, totaling $15.6 billion for the three months ended June 30, 2024. For additional information, see Note 9 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Current wording
•Repurchases of Class A and Class C shares were $2.8 billion and $12.5 billion, respectively, totaling $15.3 billion for the three months ended September 30, 2024. For additional information, see Note 10 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
•Operating cash flow was $26.6 billion for the three months ended June 30, 2024.
Current wording
•Operating cash flow was $30.7 billion for the three months ended September 30, 2024, including a cash payment of $3.0 billion for the 2017 EC shopping fine, which included accrued interest. For additional information related to 2017 EC shopping fine, see Note 9 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $13.2 billion for the three months ended June 30, 2024.
Current wording
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $13.1 billion for the three months ended September 30, 2024.
Previous wording
Google Search & other revenues increased $5.9 billion and $11.7 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Current wording
Google Search & other revenues increased $5.4 billion and $17.0 billion from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024, respectively. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Previous wording
YouTube ads revenues increased $998 million and $2.4 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The growth was driven by our brand advertising products followed by our direct response advertising products, both of which benefited from increased spending by our advertisers.
Current wording
YouTube ads revenues increased $969 million and $3.4 billion from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024, respectively. The growth was driven by our brand advertising products followed by our direct response advertising products, both of which benefited from increased spending by our advertisers.
Previous wording
Google Network revenues decreased $489 million from the six months ended June 30, 2023 to the six months ended June 30, 2024 primarily driven by a decrease in AdSense revenues. Additionally, Google Network revenues were adversely affected by changes in foreign currency exchange rates for the six months ended June 30, 2024.
Current wording
Google Network revenues decreased $121 million from the three months ended September 30, 2023 to the three months ended September 30, 2024, primarily driven by the unfavorable effect of foreign currency exchange rates, partially offset by an increase in AdSense revenues.
Previous wording
Google Network revenues decreased $406 million from the three months ended June 30, 2023 to the three months ended June 30, 2024, primarily driven by a decrease in AdMob revenues. Additionally, Google Network revenues were adversely affected by changes in foreign currency exchange rates for the three months ended June 30, 2024.
Current wording
Google Network revenues decreased $610 million from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 primarily driven by the unfavorable effect of foreign currency exchange rates as well as a decrease in AdMob revenues.
Previous wording
The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from three and six months ended June 30, 2023 to three and six months ended June 30, 2024:
Current wording
The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from three and nine months ended September 30, 2023 to three and nine months ended September 30, 2024:
Previous wording
Google subscriptions, platforms, and devices revenues increased $1.2 billion and $2.5 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The growth was primarily driven by an increase in subscription revenues, largely from growth in the number of paid subscribers for YouTube services.
Current wording
Google subscriptions, platforms, and devices revenues increased $2.3 billion and $4.8 billion from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024, respectively. The growth was primarily driven by increases in subscriptions and devices revenues. The increase in subscriptions revenues was largely from growth in the number of paid subscribers for YouTube services and to a lesser extent for Google One. The increase in devices revenues was primarily driven by increased sales of Pixel devices, due to Pixel family product launch timing in the third quarter this year as compared to the fourth quarter last year.
Previous wording
Google Cloud revenues increased $2.3 billion and $4.4 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The growth was primarily driven by Google Cloud Platform followed by Google Workspace offerings. Google Cloud's infrastructure and platform services were the largest drivers of growth in Google Cloud Platform.
Current wording
Google Cloud revenues increased $2.9 billion and $7.4 billion from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024, respectively. The growth was primarily driven by Google Cloud Platform followed by Google Workspace offerings. Google Cloud's infrastructure and platform services were the largest drivers of growth in Google Cloud Platform.
Previous wording
(1)Total constant currency revenues of $85.9 billion for the three months ended June 30, 2024 increased $11.3 billion compared to $74.6 billion in revenues, excluding hedging effect, for the three months ended June 30, 2023.
Current wording
(1)Total constant currency revenues of $89.3 billion for the three months ended September 30, 2024 increased $12.6 billion compared to $76.7 billion in revenues, excluding hedging effect, for the three months ended September 30, 2023.
Previous wording
Other Americas revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Argentine peso.
Current wording
Other Americas revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Argentine peso and the Brazilian real.
Previous wording
(1)Total constant currency revenues of $166.8 billion for the six months ended June 30, 2024 increased $22.5 billion compared to $144.4 billion in revenues, excluding hedging effect, for the six months ended June 30, 2023.
Current wording
(1)Total constant currency revenues of $256.0 billion for the nine months ended September 30, 2024 increased $35.0 billion compared to $221.1 billion in revenues, excluding hedging effect, for the nine months ended September 30, 2023.
Previous wording
EMEA revenue growth was not materially affected by changes in foreign currency exchange rates, as the effect of the U.S. dollar strengthening relative to the Turkish lira was largely offset by the U.S. dollar weakening relative to the British pound and the Euro.
Current wording
EMEA revenue growth was not materially affected by changes in foreign currency exchange rates, as the effect of the U.S. dollar strengthening relative to the Turkish lira was largely offset by the U.S. dollar weakening relative to the British pound.
Previous wording
Cost of revenues increased $3.6 billion from the three months ended June 30, 2023 to the three months ended June 30, 2024 due to an increase in other cost of revenues and TAC of $2.7 billion and $850 million, respectively. Cost of revenues increased $6.7 billion from the six months ended June 30, 2023 to the six months ended June 30, 2024 due to an increase in other cost of revenues and TAC of $4.6 billion and $2.1 billion, respectively.
Current wording
Cost of revenues increased $3.2 billion from the three months ended September 30, 2023 to the three months ended September 30, 2024 due to an increase in other cost of revenues and TAC of $2.2 billion and $1.1 billion, respectively. Cost of revenues increased $9.9 billion from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 due to an increase in other cost of revenues and TAC of $6.8 billion and $3.2 billion, respectively.
Previous wording
The increase in TAC from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 21.6% to 20.7% from the three months ended June 30, 2023 to the three months ended June 30, 2024 and decreased from 21.5% to 20.9% from the six months ended June 30, 2023 to the six months ended June 30, 2024, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The TAC rate on Google Search & other revenues was substantially consistent from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024. The TAC rate on Google Network revenues was substantially consistent from the three months ended June 30, 2023 to the three months ended June 30, 2024 and reflected a slight increase from the six months ended June 30, 2023 to the six months ended June 30, 2024 due to a combination of factors, none of which were individually significant.
Current wording
Theincrease in TAC from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 21.2% to 20.8% from the three months ended September 30, 2023 to the three months ended September 30, 2024 and decreased from 21.4% to 20.8% from the nine months ended September 30, 2023 to the nine months ended September 30, 2024, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The TAC rate on Google Search & other revenues increased from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024 primarily due to increases related to mobile searches, which carries higher TAC because more mobile searches are channeled through paid access points. The TAC rate on Google Network revenues was substantially consistent from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024.
Previous wording
The increase in other cost of revenues from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024 was primarily due to increases in content acquisition costs, largely for YouTube, depreciation expense, digital services tax related to the recently enacted law in Canada, which is applied retroactively, and other technical infrastructure operations costs. Additionally, an increase in third-party service fees contributed to the increase in other cost of revenues from the six months ended June 30, 2023 to the six months ended June 30, 2024.
Current wording
The increase in other cost of revenues from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 was primarily due to increases in content acquisition costs, largely for YouTube, depreciation expense, other technical infrastructure operations costs, and third-party service fees. Additionally, devices costs contributed to the increase in other cost of revenues due to the Pixel family product launch timing in the third quarter this year as compared to the fourth quarter last year.
Previous wording
R&D expenses increased $1.3 billion from the three months ended June 30, 2023 to the three months ended June 30, 2024, primarily driven by increases in compensation expenses of $585 million, depreciation expense of $331 million, and third-party services fees of $219 million. The increase in compensation expenses was largely due to an increase in SBC expenses of $471 million, which primarily reflects the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period.
Current wording
R&D expenses increased $2.9 billion from the nine months ended September 30, 2023 to the nine months ended September 30, 2024, primarily driven by increases in depreciation expense of $993 million, compensation expenses of $879 million, and third-party services fees of $597 million. The increase in compensation expenses was primarily driven by a $1.0 billion increase in SBC expenses, which reflects the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period, partially offset by a $554 million decrease in severance and related charges.
Previous wording
Sales and marketing expenses increased $11 million from the three months ended June 30, 2023 to the three months ended June 30, 2024, and decreased $96 million from the six months ended June 30, 2023 to the six months ended June 30, 2024, due to a combination of factors, none of which were individually significant.
Current wording
Sales and marketing expenses increased $247 million from the nine months ended September 30, 2023 to the nine months ended September 30, 2024, due to a combination of factors, none of which were individually significant.
Previous wording
General and administrative expenses decreased $323 million and $1.1 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, primarily driven by a reduction in charges related to legal matters of $471 million and $718 million, respectively, as well as a combination of factors, none of which were individually significant.
Current wording
General and administrative expenses decreased $380 million and $1.4 billion from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024, primarily driven by a reduction in charges related to legal and other matters of $693 million and $1.4 billion, respectively, partially offset by a combination of factors, none of which were individually significant.
Previous wording
(1)In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $3 million and $102 million for the three months ended June 30, 2023 and 2024, respectively, and $87 million and $174 million for the six months ended June 30, 2023 and 2024, respectively. For the three and six months ended June 30, 2023 and 2024, Alphabet-level activities included substantially all of the charges related to employee severance and our office space optimization efforts. For additional information relating to our segments, see Note 13 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Current wording
(1)In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $(1) million and $17 million for the three months ended September 30, 2023 and 2024, respectively, and $86 million and $191 millionfor the nine months ended September 30, 2023 and 2024, respectively. For the three and nine months ended September 30, 2023 and 2024, Alphabet-level activities included substantially all of the charges related to employee severance and our office space optimization efforts. During the quarter ended September 30, 2024, we incurred office space charges totaling $607 million. For additional information relating to our segments, see Note 14 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
Google Services operating income increased $6.2 billion from the three months ended June 30, 2023 to the three months ended June 30, 2024. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in content acquisition costs and TAC. Additionally, a reduction in compensation expenses contributed to the increase in operating income.
Current wording
Google Services operating income increased $6.9 billion and $19.3 billion from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in TAC and content acquisition costs. Additionally, a reduction in compensation expenses contributed to the increase in operating income.
Previous wording
Google Cloud operating income increased $777 million and $1.5 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure assets as well as compensation expenses, largely driven by headcount growth.
Current wording
Google Cloud operating income increased $1.7 billion and $3.2 billion from the three and nine months ended September 30, 2023 to the three and nine months ended September 30, 2024, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure assets as well as compensation expenses, largely driven by headcount growth.
Previous wording
Other Bets operating loss increased $321 million and $116 million from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The increase in operating loss was primarily due to an increase in compensation expenses as a result of the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period. Additionally, growth in revenues partially offset the increase in operating loss from the six months ended June 30, 2023 to the six months ended June 30, 2024.
Current wording
Other Bets operating loss increased $38 million from the nine months ended September 30, 2023 to the nine months ended September 30, 2024. The increase in operating loss was primarily due to an increase in expenses, largely driven by compensation expenses, partially offset by an increase in revenues. The increase in compensation expenses was primarily as a result of the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period.
Previous wording
OI&E increased $61 million from the three months ended June 30, 2023 to the three months ended June 30, 2024. Net unrealized losses in marketable equity securities reflecting market driven changes were offset by a decrease in unrealized losses on non-marketable equity securities from fair value adjustments related to observable transactions and increased interest income related to higher interest rates.
Current wording
OI&E increased $3.3 billion from the three months ended September 30, 2023 to the three months ended September 30, 2024. The increase was primarily due to an increase in net unrealized gains on equity securities driven by fair value adjustments related to observable transactions and market driven changes, and increased net gains on debt securities.
Previous wording
OI&E increased $2.1 billion from the six months ended June 30, 2023 to the six months ended June 30, 2024. The increase was primarily due to an increase in net unrealized gains on non-marketable equity securities driven by fair value adjustments related to observable transactions and increased interest income related to higher interest rates. The increases were partially offset by net unrealized losses in marketable equity securities reflecting market driven changes.
Current wording
OI&E increased $5.4 billion from the nine months ended September 30, 2023 to the nine months ended September 30, 2024. The increase was primarily due to an increase in net unrealized gains on non-marketable equity securities driven by fair value adjustments related to observable transactions and increased interest income related to higher interest rates.
Previous wording
The effective tax rate decreased from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, primarily due to the tax rule change related to U.S. federal foreign tax credits issued by the IRS in July 2023, an increase in stock-based compensation-related tax benefits, partially offset by a decrease in the U.S. federal Foreign Derived Intangible Income tax deduction.
Current wording
The effective tax rate increased from the nine months ended September 30, 2023 to the nine months ended September 30, 2024. This increase was primarily due to a one-time adjustment for tax rule changes issued by the IRS in the third quarter of 2023. Additionally, a decrease in the 2024 U.S. federal Foreign Derived Intangible Income tax deduction contributed to an increase in the effective tax rate. These factors were partially offset by an increase in stock-based compensation-related tax benefits in 2024.
Previous wording
As of June 30, 2024, we had$100.7 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.
Current wording
As of September 30, 2024, we had $93.2 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.
Previous wording
Net cash provided by operating activities increased from the six months ended June 30, 2023 to the six months ended June 30, 2024 due to an increase in cash received from customers, partially offset by an increase in tax payments. The increase in tax payments in comparison to the prior year comparable period was primarily due to the 2023 IRS payment deferral relief made available to taxpayers headquartered in designated counties in California.
Current wording
Net cash provided by operating activities increased from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 due to an increase in cash received from customers, partially offset by an increase in tax payments and a cash payment for the 2017 EC shopping fine. The increase in tax payments in comparison to the prior year comparable period was primarily due to the 2023 IRS payment deferral relief made available to taxpayers headquartered in designated counties in California.
Previous wording
Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and non-marketable securities, purchases of property and equipment, and payments for acquisitions.
Current wording
Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and non-marketable securities, purchases of property and equipment, and payments for acquisitions and purchases of intangible assets.
Previous wording
Net cash used in investing activities decreased from the six months ended June 30, 2023 to the six months ended June 30, 2024 primarily due to an increase in maturities and sales of marketable securities, partially offset by increases in purchases of property and equipment and purchases of marketable securities.
Current wording
Net cash used in investing activities increased from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 primarily due to an increase in purchases of property and equipment and purchases of marketable securities, partially offset by increases in maturities and sales of marketable securities.
Previous wording
Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net payments related to stock-based award activities, and repayments of debt.
Current wording
Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the sale of interests in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, net payments related to stock-based award activities, payment of dividends, and repayments of debt.
Previous wording
Net cash used in financing activities increased from the six months ended June 30, 2023 to the six months ended June 30, 2024 due to dividend payments, increases in repurchases of stock, and net payments related to stock-based award activities.
Current wording
Net cash used in financing activities increased from the nine months ended September 30, 2023 to the nine months ended September 30, 2024 due to dividend payments and net payments related to stock-based award activities.
Previous wording
During the six months ended June 30, 2023 and 2024, we spent $13.2 billion and $25.2 billion on capital expenditures, respectively. We expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support of AI products and services. Depreciation of our property and equipment commences when the deployment of such assets are completed and are ready for our intended use. Land is not depreciated. For the six months ended June 30, 2023 and 2024, our depreciation on property and equipment was $5.5 billion and $7.1 billion, respectively.
Current wording
During the nine months ended September 30, 2023 and 2024, we spent $21.2 billion and $38.3 billion on capital expenditures, respectively. We expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support of AI products and services. Depreciation of our property and equipment commences when the deployment of such assets are completed and are ready for our intended use. Land is not depreciated. For the nine months ended September 30, 2023 and 2024, our depreciation on property and equipment was $8.6 billion and $11.1 billion, respectively.
Previous wording
For the six months ended June 30, 2023 and 2024, we recognized total operating lease assets of $1.7 billion and $897 million, respectively. As of June 30, 2024, the amount of total future lease payments under operating leases, which had a weighted average remaining lease term of 7.9 years, was $16.9 billion.
Current wording
For the nine months ended September 30, 2023 and 2024, we recognized total operating lease assets of $2.4 billion and $1.6 billion, respectively. As of September 30, 2024, the amount of total future lease payments under operating leases, which had a weighted average remaining lease term of 7.8 years, was $17.1 billion.
Previous wording
As of June 30, 2024, we have entered into leases that have not yet commenced with future lease payments of $5.2 billion, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2024 and 2027 with non-cancelable lease terms of one to 25 years.
Current wording
As of September 30, 2024, we have entered into leases that have not yet commenced with future lease payments of $6.1 billion, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2024 and 2027 with non-cancelable lease terms of one to 25 years.
Previous wording
For the six months ended June 30, 2023 and 2024, our operating lease expenses (including variable lease costs) were $2.2 billion and $2.3 billion, respectively. Finance lease costs were not material for the six months ended June 30, 2023 and 2024.
Current wording
For the nine months ended September 30, 2023 and 2024, our operating lease expenses (including variable lease costs) were $3.4 billion and $3.5 billion, respectively. Finance lease costs were not material for the nine months ended September 30, 2023 and 2024.
Previous wording
We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper. Net proceeds from this program are used for general corporate purposes. As of June 30, 2024, we hadno commercial paper outstanding.
Current wording
We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper. Net proceeds from this program are used for general corporate purposes. As of September 30, 2024, we had $1.0 billion of short-term commercial paper outstanding.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
For additional information, see Note 10 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Current report — wording carried from elsewhere
On September 14, 2022, the General Court reduced the 2018 fine from €4.3 billion to €4.1 billion. We subsequently appealed the General Court's decision to the European Court of Justice.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Google Services operating income increased $12.4 billion from the six months ended June 30, 2023 to the six months ended June 30, 2024. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in TAC and content acquisition costs. Additionally, a reduction in compensation expenses contributed to the increase in operating income.
Previous report — wording carried elsewhere
On April 25, 2024, the Board of Directors of Alphabet declared a cash dividend of $0.20 per share to stockholders of record as of June 10, 2024, on each of the company’s Class A, Class B, and Class C shares. These dividends were paid on June 17, 2024, totaling to $1.2 billion, $173 million, and $1.1 billion for Class A, Class B, and Class C shares, respectively.