Information about Segments and Geographic Areas

12 Months Ended

Dec. 31, 2019

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 as Other Bets.

Our reported segments are:

•

Google – Google includes our main products such as ads, Android, Chrome, hardware, Google Cloud, Google Maps, Google Play, Search, and YouTube. Our technical infrastructure is also included in Google. Google generates revenues primarily from advertising; sales of apps, in-app purchases, digital content products, and hardware; and licensing and service fees, including fees received for Google Cloud offerings and subscription-based products.


•	Other Bets – Other Bets is a combination of multiple operating segments that are not individually material. Other Bets includes Access, Calico, CapitalG, GV, Verily, Waymo, and X, among others. Revenues from the Other Bets are derived primarily through the sales of internet and TV services through Access as well as 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.

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



	Year Ended December 31,
	2017			2018			2019
Revenues:
Google	$	110,547		$	136,362		$	160,743
Other Bets	477			595			659
Hedging gains (losses)	(169		)	(138		)	455
Total revenues	$	110,855		$	136,819		$	161,857



	Year Ended December 31,
	2017			2018			2019
Operating income (loss):
Google	$	32,456		$	36,655		$	41,673
Other Bets	(2,734		)	(3,358		)	(4,824		)
Reconciling items⁽¹⁾	(3,544		)	(5,773		)	(2,618		)
Total income from operations	$	26,178		$	27,524		$	34,231

⁽¹⁾

Reconciling items are generally comprised of corporate administrative costs, hedging gains (losses) and other miscellaneous items that are not allocated to individual segments. Reconciling items include the European Commission fines for the years ended December 31, 2017, 2018 and 2019, and a charge from a legal settlement for the year ended December 31, 2019. Performance fees previously included in reconciling items were reclassified for the years ended December 31, 2017 and 2018 from general and administrative expenses to other income (expense), net to conform with current period presentation. For further information on the reclassification, see Note 1.



	Year Ended December 31,
	2017		2018			2019
Capital expenditures:
Google	$	12,619	$	25,460		$	25,251
Other Bets	493		181			281
Reconciling items⁽²⁾	72		(502		)	(1,984		)
Total capital expenditures as presented on the Consolidated Statements of Cash Flows	$	13,184	$	25,139		$	23,548


⁽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):



	Year Ended December 31,
	2017		2018		2019
Stock-based compensation:
Google	$	7,168	$	8,755	$	10,185
Other Bets	363		489		474
Reconciling items⁽³⁾	148		109		135
Total stock-based compensation⁽⁴⁾	$	7,679	$	9,353	$	10,794

Depreciation, amortization, and impairment:
Google	$	6,608	$	8,708	$	11,158
Other Bets	307		327		566
Reconciling items⁽³⁾	0		0		57
Total depreciation, amortization, and impairment	$	6,915	$	9,035	$	11,781


⁽³⁾	Reconciling items relate to corporate administrative and other 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.

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



	As of December 31, 2018		As of December 31, 2019
Long-lived assets:
United States	$	74,882	$	94,907
International	22,234		28,424
Total long-lived assets	$	97,116	$	123,331

For revenues by geography, see Note 2.