Information about Segments and Geographic Areas

We operate our business in multiple operating segments. Google is our only reportable segment. None of our other segments meet the quantitative thresholds to qualify as reportable segments; therefore, the other operating segments are combined and disclosed below as Other Bets.

Our reported segments are described below:

•

Google – Google includes our main internet products such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, and Google Play as well as our hardware initiatives. Our technical infrastructure and some newer efforts like virtual reality are also included in Google. Google generates revenues primarily from advertising; sales of apps, in-app purchases, and digital content; services fees for cloud offerings; and sales of hardware products.

•

Other Bets – Other Bets is a combination of multiple operating segments that are not individually material. Other Bets includes businesses such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X. Revenues from the Other Bets are derived primarily through the sales of internet and TV services through Google Fiber, sales of Nest products and services, and licensing and R&D services through Verily.

Revenues, cost of revenues, and operating expenses are generally directly attributed to our segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. Our Chief Operating Decision Maker does not evaluate operating segments using asset information. Prior period segment information has been recast to conform to the current period segment presentation.

Information about segments during the periods presented were as follows (in millions, unaudited):



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2017		2016		2017
Revenues:
Google	$	22,254	$	27,470	$	63,661	$	77,738
Other Bets	197		302		547		794
Total revenues	$	22,451	$	27,772	$	64,208	$	78,532



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2017			2016			2017
Operating income (loss):
Google	$	6,774		$	8,744		$	20,009		$	24,145
Other Bets	(861		)	(812		)	(2,490		)	(2,439		)
Reconciling items⁽¹⁾	(146		)	(150		)	(442		)	(3,224		)
Total income from operations	$	5,767		$	7,782		$	17,077		$	18,482


⁽¹⁾	Reconciling items are primarily comprised of the European Commission fine for the nine months ended September 30, 2017, as well as corporate administrative costs and other miscellaneous items that are not allocated to individual segments for all periods presented.



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2017			2016			2017
Capital expenditures:
Google	$	2,434		$	3,559		$	6,529		$	8,800
Other Bets	324			77			881			398
Reconciling items⁽²⁾	(204		)	(98		)	(276		)	(321		)
Total capital expenditures as presented on the Consolidated Statements of Cash Flows	$	2,554		$	3,538		$	7,134		$	8,877


⁽²⁾	Reconciling items are related to timing differences of payments as segment capital expenditures are on accrual basis while total capital expenditures shown on the Consolidated Statements of Cash Flow are on cash basis and other miscellaneous differences.

Stock-based compensation (SBC) and depreciation, amortization, and impairment are included in segment operating income (loss) as shown below (in millions, unaudited):



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2017		2016		2017
Stock-based compensation:
Google	$	1,629	$	1,654	$	4,273	$	5,362
Other Bets	199		130		486		355
Reconciling items⁽³⁾	32		36		98		115
Total stock-based compensation⁽⁴⁾	$	1,860	$	1,820	$	4,857	$	5,832

Depreciation, amortization, and impairment:
Google	$	1,488	$	1,667	$	4,214	$	4,606
Other Bets	104		94		239		283
Reconciling items⁽⁵⁾	4		0		4		0
Total depreciation, amortization, and impairment as presented on the Consolidated Statements of Cash Flows	$	1,596	$	1,761	$	4,457	$	4,889


⁽³⁾	Reconciling items represent corporate administrative costs that are not allocated to individual segments.


⁽⁴⁾	For purposes of segment reporting, SBC represents awards that we expect to settle in Alphabet stock.


⁽⁵⁾	Reconciling items are primarily related to corporate administrative costs and other miscellaneous items that are not allocated to individual segments.

The following table presents our long-lived assets by geographic area (in millions):



	As of December 31, 2016		As of September 30, 2017
			(unaudited)
Long-lived assets:
United States	$	47,383	$	53,051
International	14,706		17,140
Total long-lived assets	$	62,089	$	70,191

For revenues by geography, see Note 2.