Information about Segments and Geographic Areas

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Information about Segments and Geographic Areas

Information about Segments and Geographic Areas

Beginning in the fourth quarter of 2020, we report our segment results as Google Services, Google Cloud, and Other Bets:

•Google Services includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising; sales of apps, in-app purchases, digital content products, and hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV.

•Google Cloud includes Google’s infrastructure and data analytics platforms, collaboration tools, and other services for enterprise customers. Google Cloud generates revenues primarily from fees received for Google Cloud Platform services and Google Workspace (formerly known as G Suite) collaboration tools.

•Other Bets is a combination of multiple operating segments that are not individually material. Revenues from the Other Bets are derived primarily through the sale of internet services as well as licensing and R&D services.

Revenues and certain costs, such as costs associated with content and traffic acquisition, certain engineering, and hardware costs and other operating expenses, are directly attributable to our segments. Due to the integrated nature of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are managed

centrally at a consolidated level. The associated costs, including depreciation and impairment, are allocated to operating segments as a service cost generally based on usage or headcount.

Unallocated corporate costs primarily include corporate initiatives, corporate shared costs, such as finance and legal, including fines and settlements, as well as costs associated with certain shared research and development activities. Additionally, hedging gains (losses) related to revenue are included in corporate costs.

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). For comparative purposes, amounts in prior periods have been recast:

	Year Ended December 31,
	2018		2019		2020
Revenues:
Google Services	$	130,524	$	151,825	$	168,635
Google Cloud	5,838		8,918		13,059
Other Bets	595		659		657
Hedging gains (losses)	(138)		455		176
Total revenues	$	136,819	$	161,857	$	182,527
Operating income (loss):
Google Services	$	43,137	$	48,999	$	54,606
Google Cloud	(4,348)		(4,645)		(5,607)
Other Bets	(3,358)		(4,824)		(4,476)
Corporate costs, unallocated(1)	(7,907)		(5,299)		(3,299)
Total income from operations	$	27,524	$	34,231	$	41,224

(1)    Corporate costs, unallocated includes a fine of $5.1 billion for the year ended December 31, 2018 and a fine and legal settlement totaling $2.3 billion for the year ended December 31, 2019.

For revenues by geography, see Note 2.

The following table presents certain of our long-lived assets by geographic area, which includes property and equipment, net and operating lease assets (in millions).

	As of December 31, 2019		As of December 31, 2020
Long-lived assets:
United States	$	63,102	$	69,315
International	21,485		27,645
Total long-lived assets	$	84,587	$	96,960