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Based on the Balance Sheet What is the book value of the companys fixed assets?
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What types of intangible assets, if any, does the company report on its balance sheet? (Note 9)
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Does the book value of the companys fixed assets reflect their current market value? Explain your answer.
Note 9. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 were as follows (in millions): Google Services Other Bets Total S 0 0 0 0 Balance as of December 31, 2018 Acquisitions Transfers Foreign currency translation and other adjustments Balance as of December 31, 2019 Acquisitions Foreign currency translation and other adjustments Allocation in the fourth quarter of 2020(1) Acquisitions Foreign currency translation and other adjustments Balance as of December 31, 2020 Google 17,521 S 2,353 9 38 19,921 204 46 (20,171 0 0 OS 0 0 0 18,408 53 56 18.517 5 Google Cloud 0 0 0 0 0 0 1,763 189 5 1.957 $ 367 S 475 (9 (130) 703 4) 0 0 2 701 $ 17,888 2,828 0 (92) 20,624 204 42 0 242 63 21,175 $ (1) Represents reallocation of goodwill as a result of our change in segments in the fourth quarter of 2020. See Note 15 for further details Other Intangible Assets Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2019 Gross Carrying Amount Net Carrying Amount $ Patents and developed technology Customer relationships Trade names and other Total 4,972 $ 254 703 5.929 S Accumulated Amortization 3,570 30 350 3,950 1,402 224 353 1,979 $ S As of December 31, 2020 Gross Carrying Amount Net Carrying Value $ Patents and developed technology Customer relationships Trade names and other Total 4.639 S 266 699 5.604 $ Accumulated Amortization 3,649 49 461 4.159 $ 990 217 238 1,445 $ Patents and developed technology, customer relationships, and trade names and other have weighted average remaining useful lives of 1.6 years, 4.9 years, and 2.1 years, respectively. Amortization expense relating to purchased intangible assets was $865 million, $795 million, and $774 million for the years ended December 31, 2018, 2019, and 2020, respectively. 81 Table of Contents Alphabet Inc. CONSOLIDATED BALANCE SHEETS (In millions, except share amounts which are reflected in thousands, and par value per share amounts) As of December 31, 2019 As of December 31, 2020 s 18.498 $ 101,177 119.675 25,326 2.166 999 4,412 152.578 13.078 721 73.646 10.941 1.979 20.624 2.342 275 909 $ 26,465 110 229 136,694 30.930 454 728 5,490 174.296 20.703 1.084 84.749 12,211 1,445 21,175 3,953 319,616 $ 5,561 $ Assets Current assets: Cash and cash equivalents Marketable securities Total cash, cash equivalents, and marketable securities Accounts receivable, net Income taxes receivable, net Inventory Other current assets Total current assets Non-marketable investments Deferred income taxes Property and equipment, net Operating lease assets Intangible assets, net Goodwill Other non-current assets Total assets Liabilities and Stockholders' Equity Current liabilities: : Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities Accrued revenue share Deferred revenue Income taxes payable, net Total current liabilities Long-term debt Deferred revenue, non-current Income taxes payable, non-current Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and Contingencies (Note 10) Stockholders' equity Convertible preferred stock. $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, 50.001 par value per share: 15.000.000 shares authorized (Class A 9.000.000, Class B 3.000.000. Class C 3,000,000); 688,335 (Class A 299,828. Class B 46.441. Class C 342.066) and 675,222 (Class A 300,730, Class B 45.843. Class C 328,649) shares issued and outstanding Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 8.495 23.067 5.916 1.908 274 45,221 4,554 358 9.885 1,701 10,214 2,534 74 467 5,589 11,086 28,631 7500 2.543 1,485 56,834 13.932 481 8,849 3,561 11,146 2.269 97,072 0 50.552 (1.232) 152.122 201,442 275 909 $ 58,510 633 163,401 222,544 319,616 S See accompanying notes. Note 9. Goodwill and Other Intangible Assets Goodwill Changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2020 were as follows (in millions): Google Services Other Bets Total S 0 0 0 0 Balance as of December 31, 2018 Acquisitions Transfers Foreign currency translation and other adjustments Balance as of December 31, 2019 Acquisitions Foreign currency translation and other adjustments Allocation in the fourth quarter of 2020(1) Acquisitions Foreign currency translation and other adjustments Balance as of December 31, 2020 Google 17,521 S 2,353 9 38 19,921 204 46 (20,171 0 0 OS 0 0 0 18,408 53 56 18.517 5 Google Cloud 0 0 0 0 0 0 1,763 189 5 1.957 $ 367 S 475 (9 (130) 703 4) 0 0 2 701 $ 17,888 2,828 0 (92) 20,624 204 42 0 242 63 21,175 $ (1) Represents reallocation of goodwill as a result of our change in segments in the fourth quarter of 2020. See Note 15 for further details Other Intangible Assets Information regarding purchased intangible assets were as follows (in millions): As of December 31, 2019 Gross Carrying Amount Net Carrying Amount $ Patents and developed technology Customer relationships Trade names and other Total 4,972 $ 254 703 5.929 S Accumulated Amortization 3,570 30 350 3,950 1,402 224 353 1,979 $ S As of December 31, 2020 Gross Carrying Amount Net Carrying Value $ Patents and developed technology Customer relationships Trade names and other Total 4.639 S 266 699 5.604 $ Accumulated Amortization 3,649 49 461 4.159 $ 990 217 238 1,445 $ Patents and developed technology, customer relationships, and trade names and other have weighted average remaining useful lives of 1.6 years, 4.9 years, and 2.1 years, respectively. Amortization expense relating to purchased intangible assets was $865 million, $795 million, and $774 million for the years ended December 31, 2018, 2019, and 2020, respectively. 81 Table of Contents Alphabet Inc. CONSOLIDATED BALANCE SHEETS (In millions, except share amounts which are reflected in thousands, and par value per share amounts) As of December 31, 2019 As of December 31, 2020 s 18.498 $ 101,177 119.675 25,326 2.166 999 4,412 152.578 13.078 721 73.646 10.941 1.979 20.624 2.342 275 909 $ 26,465 110 229 136,694 30.930 454 728 5,490 174.296 20.703 1.084 84.749 12,211 1,445 21,175 3,953 319,616 $ 5,561 $ Assets Current assets: Cash and cash equivalents Marketable securities Total cash, cash equivalents, and marketable securities Accounts receivable, net Income taxes receivable, net Inventory Other current assets Total current assets Non-marketable investments Deferred income taxes Property and equipment, net Operating lease assets Intangible assets, net Goodwill Other non-current assets Total assets Liabilities and Stockholders' Equity Current liabilities: : Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities Accrued revenue share Deferred revenue Income taxes payable, net Total current liabilities Long-term debt Deferred revenue, non-current Income taxes payable, non-current Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and Contingencies (Note 10) Stockholders' equity Convertible preferred stock. $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, 50.001 par value per share: 15.000.000 shares authorized (Class A 9.000.000, Class B 3.000.000. Class C 3,000,000); 688,335 (Class A 299,828. Class B 46.441. Class C 342.066) and 675,222 (Class A 300,730, Class B 45.843. Class C 328,649) shares issued and outstanding Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 8.495 23.067 5.916 1.908 274 45,221 4,554 358 9.885 1,701 10,214 2,534 74 467 5,589 11,086 28,631 7500 2.543 1,485 56,834 13.932 481 8,849 3,561 11,146 2.269 97,072 0 50.552 (1.232) 152.122 201,442 275 909 $ 58,510 633 163,401 222,544 319,616 S See accompanying notes
