Delaware | 0-50726 | 77-0493581 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 8.01. | Other Events. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | Press release of Google Inc. dated April 18, 2013 |
99.2 | Financial tables for the quarter ended March 31, 2013 |
GOOGLE INC. | |
Date: April 18, 2013 | /s/ PATRICK PICHETTE |
Patrick Pichette Senior Vice President and Chief Financial Officer |
• | GAAP operating income in the first quarter of 2013 was $3.48 billion, or 25% of revenues. This compares to GAAP operating income of $3.39 billion, or 32% of revenues, in the first quarter of 2012. Non-GAAP operating income in the first quarter of 2013 was $4.22 billion, or 30% of revenues. This compares to non-GAAP operating income of $3.94 billion, or 37% of revenues, in the first quarter of 2012. |
• | GAAP net income including net income from discontinued operations in the first quarter of 2013 was $3.35 billion, compared to $2.89 billion in the first quarter of 2012. Non-GAAP net income in the first quarter of 2013 was $3.90 billion, compared to $3.33 billion in the first quarter of 2012. |
• | GAAP EPS including impact from net income from discontinued operations in the first quarter of 2013 was $9.94 on 337 million diluted shares outstanding, compared to $8.75 in the first quarter of 2012 on 330 million diluted shares outstanding. Non-GAAP EPS in the first quarter of 2013 was $11.58, compared to $10.08 in the first quarter of 2012. |
• | Non-GAAP operating income and non-GAAP operating margin exclude stock-based compensation (SBC) expense, as well as restructuring and related charges recorded in our Motorola Mobile business. Non-GAAP net income and non-GAAP EPS exclude the expenses noted above, net of the related tax benefits, as well as net income from discontinued operations. In the first quarter of 2013, the expense related to SBC and the related tax benefits were $681 million and $149 million compared to $556 million and $118 million in the first quarter of 2012. In the first quarter of 2013, restructuring and related charges recorded in our Motorola Mobile business were $66 million, and the related tax benefits were $23 million. In addition, net income from discontinued operations, in the first quarter of 2013, was $22 million. |
• | Google Sites Revenues - Google-owned sites generated revenues of $8.64 billion, or 67% of total Google revenues, in the first quarter of 2013. This represents an 18% increase over first quarter 2012 Google sites revenues of $7.31 billion. |
• | Google Network Revenues - Google's partner sites generated revenues of $3.26 billion, or 25% of total Google revenues, in the first quarter of 2013. This represents a 12% increase from first quarter 2012 Google network revenues of $2.91 billion. |
• | Other Revenues - Other revenues from Google were $1.05 billion, or 8% of total Google revenues, in the first quarter of 2013. This represents a 150% increase over first quarter 2012 other revenues of $420 million. |
◦ | Google revenues from the United Kingdom totaled $1.39 billion, representing 11% of Google revenues in the first quarter of 2013, compared to 11% in the first quarter of 2012. |
◦ | In the first quarter of 2013, we recognized a benefit of $35 million to Google revenues through our foreign exchange risk management program, compared to $37 million in the first quarter of 2012. |
• | Google Operating Income - GAAP operating income for Google was $3.75 billion, or 29% of Google revenues, in the first quarter of 2013. This compares to GAAP operating income of $3.39 billion, or 32% of Google revenues, in the first quarter of 2012. Non-GAAP operating income in the first quarter of 2013 was $4.40 billion, or 34% of Google revenues. This compares to non-GAAP operating income of $3.94 billion in the first quarter of 2012, or 37% of Google revenues. |
• | Motorola Mobile Operating Loss - GAAP operating loss for Motorola Mobile was $271 million, or -27% of Motorola Mobile revenues in the first quarter of 2013. Non-GAAP operating loss for Motorola Mobile in the first quarter of 2013 was $179 million, or -18% of Motorola Mobile revenues. |
As of December 31, 2012 | As of March 31, 2013 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 14,778 | $ | 15,375 | |||
Marketable securities | 33,310 | 34,723 | |||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $4,155) | 48,088 | 50,098 | |||||
Accounts receivable, net of allowance of $581 and $533 | 7,885 | 7,612 | |||||
Inventories | 505 | 648 | |||||
Receivable under reverse repurchase agreements | 700 | 700 | |||||
Deferred income taxes, net | 1,144 | 1,017 | |||||
Income taxes receivable, net | 0 | 358 | |||||
Prepaid revenue share, expenses and other assets | 2,132 | 2,375 | |||||
Total current assets | 60,454 | 62,808 | |||||
Prepaid revenue share, expenses and other assets, non-current | 2,011 | 2,195 | |||||
Non-marketable equity investments | 1,469 | 1,470 | |||||
Property and equipment, net | 11,854 | 12,300 | |||||
Intangible assets, net | 7,473 | 7,324 | |||||
Goodwill | 10,537 | 10,595 | |||||
Total assets | $ | 93,798 | $ | 96,692 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,012 | $ | 2,094 | |||
Short-term debt | 2,549 | 2,150 | |||||
Accrued compensation and benefits | 2,239 | 1,445 | |||||
Accrued expenses and other current liabilities | 3,258 | 3,007 | |||||
Accrued revenue share | 1,471 | 1,437 | |||||
Securities lending payable | 1,673 | 2,237 | |||||
Deferred revenue | 895 | 882 | |||||
Income taxes payable, net | 240 | 0 | |||||
Total current liabilities | 14,337 | 13,252 | |||||
Long-term debt | 2,988 | 2,989 | |||||
Deferred revenue, non-current | 100 | 79 | |||||
Income taxes payable, non-current | 2,046 | 2,184 | |||||
Deferred income taxes, net, non-current | 1,872 | 1,978 | |||||
Other long-term liabilities | 740 | 737 | |||||
Stockholders’ equity: | |||||||
Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 | |||||
Class A and Class B common stock and additional paid-in capital, $0.001 par value per share: 12,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000); 329,979 (Class A 267,448, Class B 62,531) and par value of $330 (Class A $267, Class B $63) and 331,008 (Class A 270,165, Class B 60,843) and par value of $331 (Class A $270, Class B $61) shares issued and outstanding | 22,835 | 23,429 |
Class C capital stock, $0.001 par value per share: 3,000,000 shares authorized; no shares issued and outstanding | 0 | 0 | |||||
Accumulated other comprehensive income | 538 | 356 | |||||
Retained earnings | 48,342 | 51,688 | |||||
Total stockholders’ equity | 71,715 | 75,473 | |||||
Total liabilities and stockholders’ equity | $ | 93,798 | $ | 96,692 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2013 | ||||||
(unaudited) | |||||||
Revenues: | |||||||
Google (advertising and other) | $ | 10,645 | $ | 12,951 | |||
Motorola Mobile (hardware and other) | 0 | 1,018 | |||||
Total revenues | $ | 10,645 | $ | 13,969 | |||
Costs and expenses: | |||||||
Cost of revenues - Google (advertising and other) (1) | 3,789 | 5,136 | |||||
Cost of revenues - Motorola Mobile (hardware and other) (1) | 0 | 808 | |||||
Research and development (1) | 1,441 | 1,837 | |||||
Sales and marketing (1) | 1,269 | 1,586 | |||||
General and administrative (1) | 757 | 1,125 | |||||
Total costs and expenses | 7,256 | 10,492 | |||||
Income from operations | 3,389 | 3,477 | |||||
Interest and other income, net | 156 | 134 | |||||
Income from continuing operations before income taxes | 3,545 | 3,611 | |||||
Provision for income taxes | 655 | 287 | |||||
Net income from continuing operations | 2,890 | 3,324 | |||||
Net income from discontinued operations | 0 | 22 | |||||
Net income | $ | 2,890 | $ | 3,346 | |||
Net income per share - basic: | |||||||
Continuing operations | $ | 8.88 | $ | 10.06 | |||
Discontinued operations | 0.00 | 0.07 | |||||
Net income per share - basic | $ | 8.88 | $ | 10.13 | |||
Net income per share - diluted: | |||||||
Continuing operations | $ | 8.75 | $ | 9.87 | |||
Discontinued operations | 0.00 | 0.07 | |||||
Net income per share - diluted | $ | 8.75 | $ | 9.94 | |||
Shares used in per share calculation - basic | 325,299 | 330,454 | |||||
Shares used in per share calculation - diluted | 330,136 | 336,663 | |||||
______________________ | |||||||
(1) Includes stock-based compensation expense as follows: | |||||||
Cost of revenues - Google (advertising and other) | $ | 74 | $ | 99 | |||
Cost of revenues - Motorola Mobile (hardware and other) | 0 | 5 | |||||
Research and development | 299 | 361 | |||||
Sales and marketing | 97 | 125 | |||||
General and administrative | 86 | 107 | |||||
$ | 556 | $ | 697 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2013 | ||||||
Operating activities | (unaudited) | ||||||
Net income | $ | 2,890 | $ | 3,346 | |||
Adjustments: | |||||||
Depreciation and amortization of property and equipment | 378 | 584 | |||||
Amortization of intangible and other assets | 133 | 315 | |||||
Stock-based compensation expense | 556 | 708 | |||||
Excess tax benefits from stock-based award activities | (28 | ) | (94 | ) | |||
Deferred income taxes | 354 | 202 | |||||
Gain on sale of marketable equity securities | (44 | ) | 0 | ||||
Other | (24 | ) | 37 | ||||
Changes in assets and liabilities, net of effects of acquisitions: | |||||||
Accounts receivable | 301 | 256 | |||||
Income taxes, net | 143 | (335 | ) | ||||
Inventories | (32 | ) | (142 | ) | |||
Prepaid revenue share, expenses and other assets | (276 | ) | (212 | ) | |||
Accounts payable | 169 | 87 | |||||
Accrued expenses and other liabilities | (855 | ) | (1,059 | ) | |||
Accrued revenue share | (11 | ) | (27 | ) | |||
Deferred revenue | 40 | (33 | ) | ||||
Net cash provided by operating activities | 3,694 | 3,633 | |||||
Investing activities | |||||||
Purchases of property and equipment | (607 | ) | (1,203 | ) | |||
Purchases of marketable securities | (8,688 | ) | (7,834 | ) | |||
Maturities and sales of marketable securities | 17,201 | 6,319 | |||||
Investments in non-marketable equity investments | (103 | ) | (36 | ) | |||
Cash collateral related to securities lending | 245 | 564 | |||||
Investments in reverse repurchase agreements | 195 | 0 | |||||
Acquisitions, net of cash acquired, and purchases of intangibles and other assets | (92 | ) | (251 | ) | |||
Net cash provided by (used in) investing activities | 8,151 | (2,441 | ) | ||||
Financing activities | |||||||
Net payments related to stock-based award activities | (47 | ) | (210 | ) | |||
Excess tax benefits from stock-based award activities | 28 | 94 | |||||
Proceeds from issuance of debt, net of costs | 3,149 | 2,922 | |||||
Repayments of debt | (1,900 | ) | (3,323 | ) | |||
Net cash provided by (used in) financing activities | 1,230 | (517 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 50 | (78 | ) | ||||
Net increase in cash and cash equivalents | 13,125 | 597 | |||||
Cash and cash equivalents at beginning of period | 9,983 | 14,778 | |||||
Cash and cash equivalents at end of period | $ | 23,108 | $ | 15,375 |
Three Months Ended March 31, 2012 | |||||||||||
Google | |||||||||||
GAAP | Adjustments (1) | Non-GAAP | |||||||||
Revenues | $ | 10,645 | $ | 10,645 | |||||||
Costs and expenses: | |||||||||||
Cost of revenues | 3,789 | $ | 74 | 3,715 | |||||||
Research and development | 1,441 | 299 | 1,142 | ||||||||
Sales and marketing | 1,269 | 97 | 1,172 | ||||||||
General and administrative | 757 | 86 | 671 | ||||||||
Total costs and expenses | 7,256 | $ | 556 | $ | 6,700 | ||||||
Income from operations | $ | 3,389 | $ | 3,945 |
Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||||||||
Google | Motorola Mobile | Consolidated | |||||||||||||||||||||||||||||||||
GAAP | Adjustments (1) | Non-GAAP | GAAP | Adjustments (2) | Non-GAAP | GAAP | Adjustments (2) | Non-GAAP | |||||||||||||||||||||||||||
Revenues | $ | 12,951 | $ | 12,951 | $ | 1,018 | $ | 1,018 | $ | 13,969 | $ | 13,969 | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Cost of revenues | 5,136 | $ | 99 | 5,037 | 808 | $ | 10 | 798 | 5,944 | $ | 109 | 5,835 | |||||||||||||||||||||||
Research and development | 1,617 | 338 | 1,279 | 220 | 42 | 178 | 1,837 | 380 | 1,457 | ||||||||||||||||||||||||||
Sales and marketing | 1,435 | 118 | 1,317 | 151 | 15 | 136 | 1,586 | 133 | 1,453 | ||||||||||||||||||||||||||
General and administrative | 1,015 | 100 | 915 | 110 | 25 | 85 | 1,125 | 125 | 1,000 | ||||||||||||||||||||||||||
Total costs and expenses | 9,203 | $ | 655 | 8,548 | 1,289 | $ | 92 | 1,197 | 10,492 | $ | 747 | 9,745 | |||||||||||||||||||||||
Income (loss) from operations | $ | 3,748 | $ | 4,403 | $ | (271 | ) | $ | (179 | ) | $ | 3,477 | $ | 4,224 |
(1) | To eliminate stock-based compensation expense. |
(2) | To eliminate stock-based compensation expense, as well as restructuring and related charges recorded in Motorola Mobile. |
Three Months Ended March 31, 2012 | Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Consolidated | GAAP Actual | Operating Margin (a) | Adjustments | Non-GAAP Results | Non-GAAP Operating Margin (b) | GAAP Actual | Operating Margin (a) | Adjustments | Non-GAAP Results | Non-GAAP Operating Margin (b) | |||||||||||||||||||
$ | 556 | (c) | $ | 681 | (d) | ||||||||||||||||||||||||
66 | (e) | ||||||||||||||||||||||||||||
Income from operations | $ | 3,389 | 31.8 | % | $ | 556 | $ | 3,945 | 37.1 | % | $ | 3,477 | 24.9 | % | $ | 747 | $ | 4,224 | 30.2 | % | |||||||||
$ | 556 | (c) | $ | 681 | (d) | ||||||||||||||||||||||||
(118 | ) | (f) | (149 | ) | (f) | ||||||||||||||||||||||||
66 | (e) | ||||||||||||||||||||||||||||
(23 | ) | (g) | |||||||||||||||||||||||||||
(22 | ) | (h) | |||||||||||||||||||||||||||
Net income | $ | 2,890 | $ | 438 | $ | 3,328 | $ | 3,346 | $ | 553 | $ | 3,899 | |||||||||||||||||
Net income per share - diluted | $ | 8.75 | $ | 10.08 | $ | 9.94 | $ | 11.58 | |||||||||||||||||||||
Shares used in per share calculation - diluted | 330,136 | 330,136 | 336,663 | 336,663 |
(a) | Operating margin is defined as consolidated income from operations divided by consolidated revenues. |
(b) | Non-GAAP operating margin is defined as non-GAAP consolidated income from operations divided by consolidated revenues. |
(c) | To eliminate $556 million of stock-based compensation expense recorded in the first quarter of 2012. |
(d) | To eliminate $681 million of stock-based compensation expense recorded in the first quarter of 2013. |
(e) | To eliminate $66 million of restructuring and related charges recorded in Motorola Mobile. |
(f) | To eliminate income tax effects related to expenses noted in (c) and (d). |
(g) | To eliminate income tax effects related to expense noted in (e). |
(h) | To eliminate net income from discontinued operations. |
Three Months Ended March 31, 2012 | Three Months Ended March 31, 2013 | ||||||||||||||||||||||||||||
Google | GAAP Actual | Operating Margin (i) | Adjustments | Non-GAAP Results | Non-GAAP Operating Margin (j) | GAAP Actual | Operating Margin (i) | Adjustments | Non-GAAP Results | Non-GAAP Operating Margin (j) | |||||||||||||||||||
$ | 556 | (k) | $ | 655 | (l) | ||||||||||||||||||||||||
Income from operations | $ | 3,389 | 31.8 | % | $ | 556 | $ | 3,945 | 37.1 | % | $ | 3,748 | 28.9 | % | $ | 655 | $ | 4,403 | 34.0 | % |
(i) | Operating margin is defined as Google income from operations divided by Google revenues. |
(j) | Non-GAAP operating margin is defined as non-GAAP Google income from operations divided by Google revenues. |
(k) | To eliminate $556 million of stock-based compensation expense recorded in the first quarter of 2012. |
(l) | To eliminate $655 million of stock-based compensation expense recorded in the first quarter of 2013. |
Three Months Ended March 31, 2013 | ||||||||||||||
Motorola Mobile | GAAP Actual | Operating Margin (m) | Adjustments | Non-GAAP Results | Non-GAAP Operating Margin (n) | |||||||||
$ | 26 | (o) | ||||||||||||
66 | (p) | |||||||||||||
Loss from operations | $ | (271 | ) | (26.6 | )% | $ | 92 | $ | (179 | ) | (17.6 | )% |
(m) | Operating margin is defined as Motorola Mobile loss from operations divided by Motorola Mobile revenues. |
(n) | Non-GAAP operating margin is defined as non-GAAP Motorola Mobile loss from operations divided by Motorola Mobile revenues. |
(o) | To eliminate $26 million of stock-based compensation expense recorded in the first quarter of 2013. |
(p) | To eliminate $66 million of restructuring and related charges recorded in Motorola Mobile. |
Three Months Ended | |||
March 31, 2013 | |||
Net cash provided by operating activities | $ | 3,633 | |
Less purchases of property and equipment | (1,203 | ) | |
Free cash flow | $ | 2,430 | |
Net cash used in investing activities(1) | $ | (2,441 | ) |
Net cash used in financing activities | $ | (517 | ) |
Three Months Ended | Three Months Ended | ||||||
Consolidated | March 31, 2013 | March 31, 2013 | |||||
(using Q1'12's FX rates) | (using Q4’12’s FX rates) | ||||||
United Kingdom revenues (GAAP) | $ | 1,398 | $ | 1,398 | |||
Exclude foreign exchange impact on Q1’13 revenues using Q1’12 rates | 5 | 0 | |||||
Exclude foreign exchange impact on Q1’13 revenues using Q4’12 rates | 0 | 28 | |||||
Exclude hedging gains recognized in Q1’13 | (20 | ) | (20 | ) | |||
United Kingdom revenues excluding foreign exchange and hedging impact (Non-GAAP) | $ | 1,383 | $ | 1,406 | |||
Rest of the world revenues (GAAP) | $ | 6,240 | $ | 6,240 | |||
Exclude foreign exchange impact on Q1’13 revenues using Q1’12 rates | 126 | 0 | |||||
Exclude foreign exchange impact on Q1’13 revenues using Q4’12 rates | 0 | (20 | ) | ||||
Exclude hedging gains recognized in Q1’13 | (15 | ) | (15 | ) | |||
Rest of the world revenues excluding foreign exchange and hedging impact (Non-GAAP) | $ | 6,351 | $ | 6,205 | |||
Three Months Ended | Three Months Ended | ||||||
Google | March 31, 2013 | March 31, 2013 | |||||
(using Q1'12's FX rates) | (using Q4’12’s FX rates) | ||||||
United Kingdom revenues (GAAP) | $ | 1,387 | $ | 1,387 | |||
Exclude foreign exchange impact on Q1’13 revenues using Q1’12 rates | 5 | 0 | |||||
Exclude foreign exchange impact on Q1’13 revenues using Q4’12 rates | 0 | 27 | |||||
Exclude hedging gains recognized in Q1’13 | (20 | ) | (20 | ) | |||
United Kingdom revenues excluding foreign exchange and hedging impact (Non-GAAP) | $ | 1,372 | $ | 1,394 | |||
Rest of the world revenues (GAAP) | $ | 5,728 | $ | 5,728 | |||
Exclude foreign exchange impact on Q1’13 revenues using Q1’12 rates | 105 | 0 | |||||
Exclude foreign exchange impact on Q1’13 revenues using Q4’12 rates | 0 | (16 | ) | ||||
Exclude hedging gains recognized in Q1’13 | (15 | ) | (15 | ) | |||
Rest of the world revenues excluding foreign exchange and hedging impact (Non-GAAP) | $ | 5,818 | $ | 5,697 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2013 | ||||||
(unaudited) | |||||||
Advertising revenues: | |||||||
Google websites | $ | 7,312 | $ | 8,640 | |||
Google Network Members’ websites | 2,913 | 3,262 | |||||
Total advertising revenues | 10,225 | 11,902 | |||||
Other revenues | 420 | 1,049 | |||||
Total Google revenues (advertising and other) | 10,645 | 12,951 | |||||
Total Motorola Mobile revenues (hardware and other) | 0 | 1,018 | |||||
Consolidated revenues | $ | 10,645 | $ | 13,969 |
Three Months Ended March 31, | |||||
2012 | 2013 | ||||
(unaudited) | |||||
Advertising revenues: | |||||
Google websites | 69 | % | 67 | % | |
Google Network Members’ websites | 27 | % | 25 | % | |
Total advertising revenues | 96 | % | 92 | % | |
Other revenues | 4 | % | 8 | % | |
Google revenues | 100 | % | 100 | % |
As of December 31, 2012 | As of March 31, 2013 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 14,778 | $ | 15,375 | |||
Marketable securities | 33,310 | 34,723 | |||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $4,155) | 48,088 | 50,098 | |||||
Accounts receivable, net of allowance of $581 and $533 | 7,885 | 7,612 | |||||
Inventories | 505 | 648 | |||||
Receivable under reverse repurchase agreements | 700 | 700 | |||||
Deferred income taxes, net | 1,144 | 1,017 | |||||
Income taxes receivable, net | 0 | 358 | |||||
Prepaid revenue share, expenses and other assets | 2,132 | 2,375 | |||||
Total current assets | 60,454 | 62,808 | |||||
Prepaid revenue share, expenses and other assets, non-current | 2,011 | 2,195 | |||||
Non-marketable equity investments | 1,469 | 1,470 | |||||
Property and equipment, net | 11,854 | 12,300 | |||||
Intangible assets, net | 7,473 | 7,324 | |||||
Goodwill | 10,537 | 10,595 | |||||
Total assets | $ | 93,798 | $ | 96,692 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,012 | $ | 2,094 | |||
Short-term debt | 2,549 | 2,150 | |||||
Accrued compensation and benefits | 2,239 | 1,445 | |||||
Accrued expenses and other current liabilities | 3,258 | 3,007 | |||||
Accrued revenue share | 1,471 | 1,437 | |||||
Securities lending payable | 1,673 | 2,237 | |||||
Deferred revenue | 895 | 882 | |||||
Income taxes payable, net | 240 | 0 | |||||
Total current liabilities | 14,337 | 13,252 | |||||
Long-term debt | 2,988 | 2,989 | |||||
Deferred revenue, non-current | 100 | 79 | |||||
Income taxes payable, non-current | 2,046 | 2,184 | |||||
Deferred income taxes, net, non-current | 1,872 | 1,978 | |||||
Other long-term liabilities | 740 | 737 | |||||
Stockholders’ equity: | |||||||
Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 | |||||
Class A and Class B common stock and additional paid-in capital, $0.001 par value per share: 12,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000); 329,979 (Class A 267,448, Class B 62,531) and par value of $330 (Class A $267, Class B $63) and 331,008 (Class A 270,165, Class B 60,843) and par value of $331 (Class A $270, Class B $61) shares issued and outstanding | 22,835 | 23,429 |
Class C capital stock, $0.001 par value per share: 3,000,000 shares authorized; no shares issued and outstanding | 0 | 0 | |||||
Accumulated other comprehensive income | 538 | 356 | |||||
Retained earnings | 48,342 | 51,688 | |||||
Total stockholders’ equity | 71,715 | 75,473 | |||||
Total liabilities and stockholders’ equity | $ | 93,798 | $ | 96,692 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2013 | ||||||
(unaudited) | |||||||
Revenues: | |||||||
Google (advertising and other) | $ | 10,645 | $ | 12,951 | |||
Motorola Mobile (hardware and other) | 0 | 1,018 | |||||
Total revenues | $ | 10,645 | $ | 13,969 | |||
Costs and expenses: | |||||||
Cost of revenues - Google (advertising and other) (1) | 3,789 | 5,136 | |||||
Cost of revenues - Motorola Mobile (hardware and other) (1) | 0 | 808 | |||||
Research and development (1) | 1,441 | 1,837 | |||||
Sales and marketing (1) | 1,269 | 1,586 | |||||
General and administrative (1) | 757 | 1,125 | |||||
Total costs and expenses | 7,256 | 10,492 | |||||
Income from operations | 3,389 | 3,477 | |||||
Interest and other income, net | 156 | 134 | |||||
Income from continuing operations before income taxes | 3,545 | 3,611 | |||||
Provision for income taxes | 655 | 287 | |||||
Net income from continuing operations | 2,890 | 3,324 | |||||
Net income from discontinued operations | 0 | 22 | |||||
Net income | $ | 2,890 | $ | 3,346 | |||
Net income per share - basic: | |||||||
Continuing operations | $ | 8.88 | $ | 10.06 | |||
Discontinued operations | 0.00 | 0.07 | |||||
Net income per share - basic | $ | 8.88 | $ | 10.13 | |||
Net income per share - diluted: | |||||||
Continuing operations | $ | 8.75 | $ | 9.87 | |||
Discontinued operations | 0.00 | 0.07 | |||||
Net income per share - diluted | $ | 8.75 | $ | 9.94 | |||
Shares used in per share calculation - basic | 325,299 | 330,454 | |||||
Shares used in per share calculation - diluted | 330,136 | 336,663 | |||||
______________________ | |||||||
(1) Includes stock-based compensation expense as follows: | |||||||
Cost of revenues - Google (advertising and other) | $ | 74 | $ | 99 | |||
Cost of revenues - Motorola Mobile (hardware and other) | 0 | 5 | |||||
Research and development | 299 | 361 | |||||
Sales and marketing | 97 | 125 | |||||
General and administrative | 86 | 107 | |||||
$ | 556 | $ | 697 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2013 | ||||||
Operating activities | (unaudited) | ||||||
Net income | $ | 2,890 | $ | 3,346 | |||
Adjustments: | |||||||
Depreciation and amortization of property and equipment | 378 | 584 | |||||
Amortization of intangible and other assets | 133 | 315 | |||||
Stock-based compensation expense | 556 | 708 | |||||
Excess tax benefits from stock-based award activities | (28 | ) | (94 | ) | |||
Deferred income taxes | 354 | 202 | |||||
Gain on sale of marketable equity securities | (44 | ) | 0 | ||||
Other | (24 | ) | 37 | ||||
Changes in assets and liabilities, net of effects of acquisitions: | |||||||
Accounts receivable | 301 | 256 | |||||
Income taxes, net | 143 | (335 | ) | ||||
Inventories | (32 | ) | (142 | ) | |||
Prepaid revenue share, expenses and other assets | (276 | ) | (212 | ) | |||
Accounts payable | 169 | 87 | |||||
Accrued expenses and other liabilities | (855 | ) | (1,059 | ) | |||
Accrued revenue share | (11 | ) | (27 | ) | |||
Deferred revenue | 40 | (33 | ) | ||||
Net cash provided by operating activities | 3,694 | 3,633 | |||||
Investing activities | |||||||
Purchases of property and equipment | (607 | ) | (1,203 | ) | |||
Purchases of marketable securities | (8,688 | ) | (7,834 | ) | |||
Maturities and sales of marketable securities | 17,201 | 6,319 | |||||
Investments in non-marketable equity investments | (103 | ) | (36 | ) | |||
Cash collateral related to securities lending | 245 | 564 | |||||
Investments in reverse repurchase agreements | 195 | 0 | |||||
Acquisitions, net of cash acquired, and purchases of intangibles and other assets | (92 | ) | (251 | ) | |||
Net cash provided by (used in) investing activities | 8,151 | (2,441 | ) | ||||
Financing activities | |||||||
Net payments related to stock-based award activities | (47 | ) | (210 | ) | |||
Excess tax benefits from stock-based award activities | 28 | 94 | |||||
Proceeds from issuance of debt, net of costs | 3,149 | 2,922 | |||||
Repayments of debt | (1,900 | ) | (3,323 | ) | |||
Net cash provided by (used in) financing activities | 1,230 | (517 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 50 | (78 | ) | ||||
Net increase in cash and cash equivalents | 13,125 | 597 | |||||
Cash and cash equivalents at beginning of period | 9,983 | 14,778 | |||||
Cash and cash equivalents at end of period | $ | 23,108 | $ | 15,375 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2013 | ||||||
(unaudited) | |||||||
Advertising revenues: | |||||||
Google websites | $ | 7,312 | $ | 8,640 | |||
Google Network Members’ websites | 2,913 | 3,262 | |||||
Total advertising revenues | 10,225 | 11,902 | |||||
Other revenues | 420 | 1,049 | |||||
Total Google revenues (advertising and other) | 10,645 | 12,951 | |||||
Total Motorola Mobile revenues (hardware and other) | 0 | 1,018 | |||||
Consolidated revenues | $ | 10,645 | $ | 13,969 |
Three Months Ended March 31, | |||||
2012 | 2013 | ||||
(unaudited) | |||||
Advertising revenues: | |||||
Google websites | 69 | % | 67 | % | |
Google Network Members’ websites | 27 | % | 25 | % | |
Total advertising revenues | 96 | % | 92 | % | |
Other revenues | 4 | % | 8 | % | |
Google revenues | 100 | % | 100 | % |