Information about Segments and Geographic Areas

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Information about Segments and Geographic Areas

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 sale of internet 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, unaudited):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2020		2019		2020
Revenues:
Google	$	38,674	$	37,998	$	74,706	$	78,973
Other Bets	162		148		332		283
Hedging gains (losses)	108		151		245		200
Total revenues	$	38,944	$	38,297	$	75,283	$	79,456

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2020		2019		2020
Operating income (loss):
Google	$	10,280	$	7,572	$	19,468	$	16,842
Other Bets	(989)		(1,116)		(1,857)		(2,237)
Reconciling items(1)	(111)		(73)		(1,823)		(245)
Total income from operations	$	9,180	$	6,383	$	15,788	$	14,360

⁽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 EC fine for the six months ended June 30, 2019.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2020		2019		2020
Capital expenditures:
Google	$	6,896	$	4,836	$	11,430	$	10,499
Other Bets	65		96		124		200
Reconciling items(2)	(835)		459		(790)		697
Total capital expenditures as presented on the Consolidated Statements of Cash Flows	$	6,126	$	5,391	$	10,764	$	11,396

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2020		2019		2020
Stock-based compensation:
Google	$	2,600	$	3,126	$	5,212	$	6,114
Other Bets	125		136		248		271
Reconciling items(3)	35		67		69		134
Total stock-based compensation(4)	$	2,760	$	3,329	$	5,529	$	6,519
Depreciation, amortization, and impairment:
Google	$	2,756	$	3,292	$	5,285	$	6,305
Other Bets	79		94		163		186
Reconciling items(3)	0		0		0		3
Total depreciation, amortization, and impairment	$	2,835	$	3,386	$	5,448	$	6,494

⁽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, 2019		As of June 30, 2020
			(unaudited)
Long-lived assets:
United States	$	94,907	$	98,209
International	28,424		31,214
Total long-lived assets	$	123,331	$	129,423

For revenues by geography, see Note 2.