Information about Segments and Geographic Areas

6 Months Ended

Jun. 30, 2021

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 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 certain 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:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2021		2020		2021
Revenues:
Google Services	$	34,991	$	57,067	$	73,189	$	108,245
Google Cloud	3,007		4,628		5,784		8,675
Other Bets	148		192		283		390
Hedging gains (losses)	151		(7)		200		(116)
Total revenues	$	38,297	$	61,880	$	79,456	$	117,194

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2021		2020		2021
Operating income (loss):
Google Services	$	9,539	$	22,343	$	21,087	$	41,889
Google Cloud	(1,426)		(591)		(3,156)		(1,565)
Other Bets	(1,116)		(1,398)		(2,237)		(2,543)
Corporate costs, unallocated	(614)		(993)		(1,334)		(1,983)
Total income from operations	$	6,383	$	19,361	$	14,360	$	35,798

For revenues by geography, see Note 2.

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

	As of December 31, 2020		As of June 30, 2021
Long-lived assets:
United States	$	69,315	$	74,993
International	27,645		29,682
Total long-lived assets	$	96,960	$	104,675