Information about Segments and Geographic Areas

6 Months Ended

Jun. 30, 2012

Information about Segments and Geographic Areas

Note 14. Information about Segments and Geographic Areas

Prior to the second quarter of 2012, our chief operating decision makers (i.e., chief executive officer and his direct reports) reviewed financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of allocating resources and evaluating financial performance. As a result of our Motorola acquisition in the second quarter of 2012, our chief operating decision makers review financial information for the following three operating segments:

• Google – includes our advertising and other non-advertising businesses

• Mobile – includes our mobile device business acquired from Motorola

• Home – includes our digital set-top box business acquired from Motorola

Our chief operating decision makers do not evaluate operating segments using asset information.

The following table sets forth revenues and operating income (loss) by operating segment (in millions):

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2012			2011		2012
	(unaudited)
Google:
Revenues	$	9,026	$	10,964		$	17,602	$	21,609
Operating income		3,316		3,988			6,544		7,933
Mobile:
Revenues		0		843			0		843
Operating loss		0		(41	)		0		(41	)
Home:
Revenues		0		407			0		407
Operating income		0		3			0		3

A reconciliation of the total segment operating income to the consolidated operating income is as follows (in millions):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2012			2011			2012
	(unaudited)
Total segment operating income	$	3,316		$	3,950		$	6,544		$	7,895
Unallocated items		(435	)		(747	)		(1,366	)		(1,303	)
Consolidated operating income	$	2,881		$	3,203		$	5,178		$	6,592

Unallocated items including stock-based compensation expense, a charge related to severance and benefit arrangements in connection with the Motorola acquisition, and a charge related to resolution of Department of Justice investigation, are not allocated to each segment because we do not include this information in our measurement of the performance of our operating segments.

Revenues by geography are based on the billing addresses of our customers for the Google segment, and the ship-to addresses of our customers for the Mobile and the Home segments. The following tables set forth revenues and long-lived assets by geographic area (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2012		2011		2012
	(unaudited)
Revenues:
United States	$	4,155	$	5,696	$	8,160	$	10,570
United Kingdom		976		1,186		1,946		2,336
Rest of the world		3,895		5,332		7,496		9,953
Total revenues	$	9,026	$	12,214	$	17,602	$	22,859

	As of December 31, 2011		As of June 30, 2012
			(unaudited)
Long-lived assets:
United States	$	15,963	$	19,265
International		3,853		12,929
Total long-lived assets	$	19,816	$	32,194