please provide all ratios

1. Earnings per Share of Common Stock
2. Current Ratio
3. Gross Profit Rate
4. Profit Margin
5. Inventory Turnover
6. Days in Inventory
7. Accounts Receivable Turnover
8. Average Collection Period
9. Asset Turnover
10. Return on Assets (ROA)
11. Debt to assets Ratio
12. Times Interest Earned Ratio
13. Dividend Yield [For the purposes of this ratio, use Yahoo Finance to look up current dividend per share and stock price; just note the date that you looked up this information.]
14. Return on Common Stockholders' Equity (ROE)
15. Free cash flow
16. Price-Earnings Ratio [For the purpose of this ratio, look up the market price per share as of September 28, 2017 for Apple Inc. and for Alphabet, Inc. use December 29, 2017]

Fiscal Year 2017 Quarters Ended: March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 High $ 872.37 $ $ 1,004.28 $ 998.31 $ 1,085.09 $ Low 807.77 839.88 919.46 966.78 $ Low $ Fiscal Year 2016 Quarters Ended: High March 31, 2016 780.91 $ 701.02 June 30, 2016 $ 787.68 $ 681.14 September 30, 2016 $ 815.95 $ 704.89 December 31, 2016 835.74 $ 753.22 Our Class B common stock is neither listed nor traded. Our Class C capital stock has been listed on the Nasdaq Global Select Market under the symbol "GOOG" since April 3, 2014. The following table sets forth for the indicated periods the high and low sales prices per share for our Class C capital stock on the Nasdaq Global Select Market. $ Fiscal Year 2017 Quarters Ended: March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 High $ 852.12 $ $ 983.68 $ $ 980.34 $ $ 1,077.14 S Low 786.14 823.35 898.70 951.68 Fiscal Year 2016 Quarters Ended: March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 $ $ $ $ High 764.65 $ 766.61 $ 787.21 $ 813.11 $ Low 678.11 668.26 694.49 736.08 Issuer Purchases of Equity Securities The following table presents information with respect to Alphabet's repurchases of Class C capital stock during the quarter ended December 31, 2017: Total Number of Approximate Dollar Shares Purchased Value of Shares that as part of Publicly May Yet Be Total Number of Announced Purchased Under the Shares Purchased Average Price Paid Programs Program Period (in thousands) "" per Share 12) (in thousands) (in millions) October 1 - 31 0 $ 0.00 0 $ 4,274 November 1 - 30 1,231 $ 1,028.78 1,231 $ 3,008 December 1 - 31 806 $ 1,035.28 806 $ 2,173 Total 2,037 $ 1,031.35 2,037 (1) In October 2016, the board of directors of Alphabet authorized the company to repurchase up to $7.0 billion of its Class C capital stock. The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The repurchase program does not have an expiration date. See Note 11 in Part II, Item 8 of this Annual Report on Form 10-K for additional information related to share repurchases. Average price paid per share includes costs associated with the repurchases. (2) 22 2013 Year Ended December 31, 2014 2015 2016 (in millions, except per share amounts) 2017 S S Consolidated Statements of Income Data: Revenues Income from operations Net income from continuing operations Net income (loss) from discontinued operations Net income 55,519 15.403 13,160 66.001 $ 16.496 13,620 74.989 $ 19,360 16,348 90.272 $ 23,716 19,478 110.855 26.146 12,662 (427) 12.733 516 14,136 0 16,348 0 19,478 0 12,662 S S S Basic net income (loss) per share of Class A and B common stock: Continuing operations S 19.77 Discontinued operations (0.64) Basic net income per share of Class A and B common stock $ 20.15$ 0.76 23.11 0.00 28.32 0.00 18.27 0.00 19.13 $ 20.91 $ 23.11 S 28.32 $ 18.27 S S Basic net income (loss) per share of Class C capital stock Continuing operations S 19.77 Discontinued operations (0.64) Basic net income per share of Class C capital stock S 19.13 20.15$ 0.76 24.63 0.00 28.32 $ 0.00 18.27 0.00 S 20.91 S 24.63 $ 28.32 $ 18.27 S S Diluted net income (loss) per share of Class A and B common stock: Continuing operations S 19.42 $ Discontinued operations (0.63) Diluted net income per share of Class A and B common stock 18.79 $ 19.82 0.75 22.84 S 0.00 27.85 0.00 18.00 0.00 20.57 $ 22.84 $ 27.85 $ 18.00 S S S Diluted net income (loss) per share of Class C capital stock: Continuing operations S 19.42 S Discontinued operations (0.63 Diluted net income per share of Class C capital stock S 18.79 $ 19.82 0.75 24.34 0.00 27.85 0.00 18.00 0.00 20.57 $ 24.34 S 27.85 S 18.00 2013 2014 As of December 31, 2015 in millions) 2016 2017 Consolidated Balance Sheet Data: Cash, cash equivalents, and marketable securities Total assets Total long-term liabilities Total stockholders' equity S S S S 58,717 S 109,050 S 6,165 5 86,977 S 64,395 S 129.187 S 8,548 S 103,860 S 73,066 S 147,461 S 7,820 S 120,331 S 86,333 S 167,497 S 11,705 S 139,036 S 101,871 197,295 20.610 152,502 Revenues The following table presents our revenues, by segment and revenue source (in millions): Year Ended December 31, 2016 2015 2017 S Google segment Google properties revenues Google Network Members' properties revenues Google advertising revenues Google other revenues Google segment revenues 52,357 S 15,033 67,390 7,154 74,544 5 63,785 S 15,598 79.383 10,080 89,463 S 77,788 17,587 95,375 14,277 109.652 S Other Bets Other Bets revenues S 445 $ 809 S 1.203 Revenues S 74,989S 90,272 S 110.855 Google segment The following table presents our Google segment revenues (in millions), and changes in our aggregate paid clicks and cost-per- click (expressed as a percentage): S Google segment revenues Google segment revenues as a percentage of total revenues Aggregate paid clicks change Aggregate cost-per-click change Use of Monetization Metrics Year Ended December 31. 2015 2016 74,544 S 89,463 S 99.4% 99.1 % 34 % (11)% 2017 109,652 98.9 % 46 % (19)% In the first quarter of 2017, we refined our methodology for paid clicks and cost-per-click to include additional categories of TrueView engagement ads and exclude non-engagement based trial ad formats. This change resulted in a modest increase in growth of paid clicks and a modest decrease in growth of cost-per-click. For comparison purposes, we have included updated data for historical periods in the table below: Three Months Ended Jun 30, 2016 Sep 30, 2016 Year Ended Dec 31, 2016 Mar 31, 2016 Dec 31, 2016 Year-over-year change Aggregate paid clicks Paid clicks on Google properties Paid clicks on Google Network Members properties 29 % 38 % 28 % 36 % 32 % 41 % 39 % 47 % 34% 43 % 2 % 0 % 1 % 7% 3 % (8) % (11)% (6)% (8)% (10)% (12)% (17)% (18)% (11)% (13)% Aggregate cost-per-click Cost-per-click on Google properties Cost-per-click on Google Network Members' properties (8)% (8)% (14)% (19)% (13)% Quarter-over-quarter change Aggregate paid clicks Paid clicks on Google properties Paid clicks on Google Network Members' properties (2)% (3)% 7 % 9 % 9% 11 % 22 % 25 % N/A N/A 4 % (3)% 1 % 6 % N/A Aggregate cost-per-click (1)% (1)% (5)% (10)% NIA Cost-per-click on Google properties 1 % (2)% (6)% (12)% N/A Cost-per-click on Google Network Members' properties (12)% (2)% (6)% 0 % N/A Our advertising revenue growth, as well as the change in paid clicks and cost-per-click on Google properties and Google Network Members' properties and the correlation between these items, have fluctuated and may continue to fluctuate because of various Google properties The following table presents our Google properties revenues (in millions), and changes in our paid clicks and cost-per-click (expressed as a percentage): Year Ended December 31, 2015 2016 2017 Google properties revenues S 52,357 IS 63,785 77,788 Google properties revenues as a percentage of Google segment revenues 70.2% 71.3% 70.9 % Paid clicks change 43 % 54 % Cost-per-click change (13)% (21)% Google properties revenues consist primarily of advertising revenues that are generated on: . Google search properties which includes revenues from traffic generated by search distribution partners who use Google.com 2e their default search in browsers toolharsete and 2015 15,033 Year Ended December 31, 2016 S 15,598 S 2017 17,587 S Google Network Members' properties revenues Google Network Members' properties revenues as a percentage of Google segment revenues Paid clicks change Cost-per-click change 20.2% 17.4% 3 % (13)% 16.0 % 10 % (9)% 30 The following table presents our Google other revenues in millions). S Year Ended December 31, 2015 2016 2017 oogle other revenues S 7,154 S 10.080 14,277 oogle other revenues as a percentage of Google segment revenues 9.6% 11.3% 13.0% Google other revenues consist primarily of revenues from: Apps, in-app purchases, and digital content in the Google Play store; Google Cloud offerings and Hardware Our Google other revenues increased $4,197 million from 2016 to 2017. The increase was primarily driven by revenues from oogle Cloud offerings, hardware sales, and revenues from Google Play, largely relating to in-app purchases (revenues which we cognize net of payout to developers). Our Google other revenues increased $2,926 million from 2015 to 2016 and increased as a percentage of Google segment venues. These increases were primarily due to the growth in revenues from Google Play, primarily relating to in-app purchases evenues which we recognize net of payout to developers), hardware sales, and Google Cloud offerings. Other Bets The following table presents our Other Bets revenues (in millions): Year Ended December 31, 2015 2016 2017 ther Bets revenues S 445 S 809 S 1.203 ther Bets revenues as a percentage of total revenues 0.6% 0.9% 1.1% Other Bets revenues consist primarily of revenues and sales from: Internet and TV services; Licensing and R&D services and Nest branded hardware. Twelve Months Ended December 31 2016 S 30,304 S 2015 26,368 2017 36,046 S rates EMEA revenues Exclude foreign exchange impact on current period revenues using prior year Exclude hedging impact recognized in current period EMEA constant currency revenues S Prior period EMEA revenues, excluding hedging impact S EMEA revenue growth EMEA constant currency revenue growth 3,802 (989) 29,181 24,497 S S 1.291 (479) 31.116 25,379 15% 23% S S (5) 190 36.231 29,825 19% 21% S 9.887 S 12.559 S 16.235 APAC revenues Exclude foreign exchange impact on current period revenues using prior year rates Exclude hedging impact recognized in current period APAC constant currency revenues Prior period APAC revenues, excluding hedging impact S APAC revenue growth APAC constant currency revenue growth 1,076 (323) 10.640 5 8,169 S S (362) (31) 12,166 9,564 27% 27% S S 26 (43) 16,218 12.528 29% 29% 3,924 S 4,628 S 6,125 Other Americas revenues S Exclude foreign exchange impact on current period revenues using prior year rates Exclude hedging impact recognized in current period Other Americas constant currency revenues Prior period Other Americas revenues, excluding hedging impact Other Americas revenue growth Other Americas constant currency revenue growth 712 (88) 4,548 S 3,681 S 344 (29) 4,943 3,836 18% 29% (148) 22 5,999 4,599 un S S 32% 30% S 34,810 S S United States revenues United States revenue growth 42.781 23% 52.449 23% S S 74,989 S 79,179 S S S Total revenues Total constant currency revenues Total revenue growth Total constant currency revenue growth 90,272 91,006 20% 24% 110,855 110,897 23% 24% Our EMEA revenues from 2016 to 2017 juere unfavorably imnacted primarily as a result of an unfavorable imnart from hedaina The following ladies present our COSI Or leven Mcluding TAL (1 S TAC Other cost of revenues Total cost of revenues Total cost of revenues as a percentage of revenues Year Ended December 31, 2015 2016 14,343 S 16,793 S 13.821 18,345 28,164 S 35,138 S 37.6% 38.9% 2017 21,672 23,911 45,583 41.1% S Year Ended December 31, 2015 2016 4,101 S 5,894 S 2017 9,031 S TAC to distribution partners TAC to distribution partners as a percentage of Google properties revenues Google properties TAC rate) 7.8% 9.2% 11.6% S 10.242 10.899 S 12.641 TAC to Google Network Members TAC to Google Network Members as a percentage of Google Network Members' properties revenues (Network Members TAC rate) 68.1% 69.9% 71.9% S S S TAC TAC as a percentage of advertising revenues (Aggregate TAC rate) Revenues include hedging gains(losses) which impact TAC rates. 14,343 21.3% 16,793 21.2% 21,672 22.7% 1) Year Ended December 31, 2015 2016 2017 Research and development expenses S 12.282 S 13,948 S 16,625 Research and development expenses as a percentage of revenues 16.4% 15.5% 15.0% R&D expenses consist primarily of Compensation expenses, including SBC, and facilities-related costs for employees responsible for R&D of our existing and new products and services, and Depreciation and equipment-related expenses. R&D expenses increased $2,677 million from 2016 to 2017. The increase was primarily due to an increase in compensation expenses, including SBC, and facilities-related costs of S1,886 million, largely resulting from a 16% increase in headcount. In addition, here was an increase in depreciation and equipment-related expenses of $569 million. R&D expenses increased $1,666 million from 2015 to 2016. The increase was primarily due to an increase in stock-based compensation expense of S667 million and an increase in labor and facilities-related costs of 5326 million, both largely as a result of a 16% increase in R&D headcount, partially offset by higher expenses resulting from project milestones in Other Bets in 2015. In addition, there was an increase in depreciation and equipment-related expenses of approximately 5388 million and an increase in professional services of S267 million due to additional expenses incurred for consulting, outsourced services, and temporary services. We expect that R&D expenses will increase in dollar amount and may fluctuate as a percentage of revenues in future periods. Sales and Marketing The following table presents our sales and marketing expenses (in millions): Year Ended December 31 2015 2016 2017 Sales and marketing expenses S 9,047 S 10,485 S 12.893 Sales and marketing expenses as a percentage of revenues 12.1% 11.6% 11.6% Sales and marketing expenses consist primarily of: Year Ended December 31, 2015 2016 2017 General and administrative expenses S 6,136 S 6,985 S 6,872 General and administrative expenses as a percentage of revenues 8.2% 7.7% 6.2% General and administrative expenses consist primarily of Amortization of certain intangible assets Compensation expenses, including SBC, and facilities-related costs for employees in our facilities, finance, human resources, information technology, and legal organizations; Depreciation and equipment-related expenses, and Professional services fees primarily related to audit, information technology consulting, outside legal, and outsourcing services General and administrative expenses decreased $113 million from 2016 to 2017. The decrease was primarily from reduced allocations to general and administrative expenses with an offsetting increase to costs of revenues and other operating expenses. The decrease was partially offset by an increase in compensation expenses, including SBC, and facilities-related costs of $271 million, largely resulting from a 9% increase in headcount. Additionally, there was an increase in professional service fees of S253 million due to additional expenses incurred for outsourced services and consulting services. General and administrative expenses increased $849 million from 2015 to 2016. The increase was primarily due to increases in labor and facilities-related costs of S460 million, and stock-based compensation expense of $421 million, both largely resulting from a 15% increase in general and administrative headcount, as well as increases in other miscellaneous expenses. These increases were offset by a decrease in professional service fees of $194 million due to lower legal-related costs. We expect general and administrative expenses will increase in dollar amount and may fluctuate as a percentage of revenues in future periods European Commission Fine In June 2017, the EC announced its decision that certain actions taken by Google regarding its display and ranking of shopping search results and ads infringed European competition law. The EC decision imposed a 2.42 billion (approximately 52.74 billion as of June 27, 2017) fine, which was accrued in the second quarter of 2017. Other Income (Expense), Net The following table presents other income (expense), net, (in Millions): Year Ended December 31, 2015 2016 2017 Other income (expense), net S 291 S 434 S 1,047 Other income (expense), net, as a percentage of revenues 0.4% 0.5% 0.9% Other income (expense), net, increased $613 million from 2016 to 2017. This increase was primarily driven by reduced costs of our foreign currency hedging activities, decreased losses on marketable securities and an increase in interest income. 37 Table of Contents Alphabet Inc. Mar 31, 2016 Jun 30, 2016 Quarter Ended Sep 30. Dec 31, Mar 31, Jun 30, 2016 2016 2017 2017 (In millions, except per share amounts) (unaudited) Sep 30. 2017 Dec 31, 2017 $ 21,500 $ 22,451 $ 26,064 $ 24,750 $ 28,010 $ 27,772 $ 32,323 Consolidated Statements of Income Data: Revenues $ 20,257 Costs and expenses Cost of revenues 7,848 Research and development 3,367 Sales and marketing 2,387 General and administrative 1.513 European Commission fine 0 Total costs and expenses 14,915 Income from operations 5,342 Other income (expense), net (213) Income from continuing operations before income taxes 5,129 Provision for income taxes 922 Net income s 4,207 11,148 4,205 3,042 1,595 8.130 3,363 2.415 1.624 0 15,532 5,968 151 8,699 3.598 2,565 1.824 0 18.884 5.767 278 10,681 3,622 3.118 2.024 0 19,425 8.839 218 9.795 3,942 2.644 1.801 0 18,182 8,568 10.373 4,172 2.897 1.700 2.738 21.878 4,132 245 14,267 4,308 4,310 1.776 0 24,859 7,684 354 19.990 7,782 197 251 4,377 8.119 1.242 4.877 6,045 984 5,061 6,857 1,524 $ 5,333 6,819 1.393 5.428 853 7.979 1,247 8.732 8.018 11,038 $ (3,020) S s S S 3.524 S 6.12 S 7.11 S 7.38 S 7.73 S 7.85 s 5.09 S 9.71 S (4.35) Basic net income per share of Class A and B common stock and Class C capital stock S Diluted net income per share of Class A and B common stock and Class C capital stock $ 9 6.02 09 7.00 $ 7.25 5 7.58 $ 7.73 s 5.01 9.57 S (4.35) Canital Desources and liquiditur Year Ended December 31, 2015 2016 2017 let cash provided by operating activities S 26,572 S 36,036 S 37,091 let cash used in investing activities S (23,711) $ (31,165) S (31,401) let cash used in financing activities S (4,225) S (8,332) S (8,298) Cash Provided by Operating Activities Our largest source of cash provided by our operations are advertising revenues generated by Google properties and Google Payments Due By Period Less than 1-3 3-5 More than Total 1 year years years 5 years Operating lease obligations, net of sublease income mounts S 8,753 5 1,160 S 2.182 S 1,796 S 3,615 Purchase obligations 7,154 4,548 1,910 241 455 Long-term debt obligations) 4,744 112 224 1,170 3,238 ax payable 10.233 890 1,746 1,746 5.851 Other long-term liabilities reflected on our balance heet 2,416 348 619 511 938 Total contractual obligations S 33,300 S 7,058 5 6,681 S 5,464 14.097 For further information, refer to Note 10 of the Notes to Consolidated Financial Statements included in Part Il of this Annual Report on Form 10- K. December 31, 2016 December 31, 2017 S S 12,918 73,415 86,333 14,137 95 268 4,575 105,408 5,878 383 34,234 3,307 16,468 1,819 167,497 10,715 91,156 101,871 18,336 369 749 2.983 124,308 7.813 680 42,383 2.692 16,747 2.672 197,295 S S Assets Current assets: Cash and cash equivalents Marketable securities Total cash, cash equivalents, and marketable securities Accounts receivable, net of allowance of S467 and $674 Income taxes receivable, net Inventory Other current assets Total current assets Non-marketable investments Deferred income taxes Property and equipment, net 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 Other long-term liabilities Total liabilities Commitments and Contingencies (Note 10) Stockholders' equity: Convertible preferred stock, 50.001 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, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000. Class B 3,000,000. Class C 3,000,000); 691,293 (Class A 296,992, Class S S 2.041 3,976 6,144 2.942 1,099 554 16.756 3,935 202 4,677 226 2,665 28,461 3,137 4,581 10.177 3,975 1,432 881 24,183 3,969 340 12,812 430 3,059 44,793 0 0 nn 170 cm nr 07 ASS 290,470, vlasSD +0,912, Class 349,341) shares issued and outstanding Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 36,307 (2,402) 105,131 139,036 167,497 40.247 (992) 113,247 152,502 197,295 S S See accompanying notes. 48 able of Contents Alphabet Inc. Alphabet Inc. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) Year Ended December 31, 2015 2016 2017 Levenues S 74,989 S 90,272 S 110,855 -osts and expenses: Cost of revenues 28,164 35,138 45,583 Research and development 12.282 13,948 16,625 Sales and marketing 9,047 10,485 12,893 General and administrative 6,136 6,985 6,872 European Commission fine 0 0 2,736 otal costs and expenses 55,629 66,556 84,709 come from operations 19,360 23,716 26,146 ther income (expense), net 291 434 1,047 ncome before income taxes 19,651 24.150 27,193 rovision for income taxes 3,303 4,672 14,531 et income S 16,348 5 19,478 S 12,662 ess: Adjustment Payment to Class C capital stockholders 522 0 0 et income available to all stockholders S 15,826 S 19,478 S 12,662 S asic net income per share of Class A and B common stock asic net income per share of Class C capital stock S S 23.11 24.63 28.32 S 28.32 S 18.27 18.27 iluted net income per share of Class A and B common stock iluted net income per share of Class C capital stock S S 22.84 24.34 S S 27.85 S 27.85 S 18.00 18.00 See accompanying notes Table of Contents Alphabet Inc. Alphabet Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Year Ended December 31, 2015 2016 16,348 S 19,478 S 2017 12,662 S (1,067) (599) 1,543 (715) (314) 307 let income Other comprehensive income (loss): Change in foreign currency translation adjustment Available-for-sale investments: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of S29, 50, and So) Cash flow hedges: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of $115, $64, and $247) Other comprehensive income (loss) Comprehensive income 208 (507) 221 (93) 105 412 676 515 (638) (1,003) (327) (1,901) 14,447 (351) 164 (528) 18,950 $ 93 (545 1,410 14,072 S See accomnanvina notes 0 0 0 0 Alphabet Inc. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions, except share amounts which are reflected in thousands) Class A and Class B Common Stock, Class C Capital Stock Accumulated and Other Total Additional Paid-In Capital Comprehensive Retained Stockholders Shares Amount Income (Loss) Earnings Equity Balance as of December 31, 2014 680,1725 28,767 S 27 S 75,066 S 103,860 Common and capital stock issued 8,714 664 0 0 664 Stock-based compensation expense 0 5,151 5,151 Stock-based compensation tax benefits 0 815 0 815 Tax withholding related to vesting of restricted stock units (2.779) 0 (2.779) Repurchases of capital stock (2,391) (111) (1,669) (1,780) Adjustment Payment to Class C capital stockholders 853 475 0 (522) (47) Net income 0 0 0 16,348 16,348 Other comprehensive loss 0 0 (1.901) 0 (1,901) Balance as of December 31, 2015 687,348 32.982 (1,874) 89,223 120,331 Cumulative effect of accounting change 0 180 0 (133) 47 Common and capital stock issued 9.106 298 0 298 Stock-based compensation expense 0 6,700 0 6,700 Tax withholding related to vesting of restricted stock units 0 (3,597) 0 (3,597) Repurchases of capital stock (5,161) (256) 0 (3,437) (3,693) Net income 0 0 0 19,478 19,478 Other comprehensive loss 0 (528) 0 (528) Balance as of December 31, 2016 691,293 36,307 (2,402) 105,131 139,036 Cumulative effect of accounting change 0 0 (15) (15) Common and capital stock issued 8,652 212 0 0 212 Stock-based compensation expense 0 7.694 0 7,694 Tax withholding related to vesting of restricted stock units (4,373) 0 (4,373) Repurchases of capital stock (5,162) (315) 0 (4,531) (4,846) Sale of subsidiary shares 722 0 0 722 Net income 0 0 0 12,662 12,662 Other comprehensive income 0 0 1,410 0 1,410 Balance as of December 31, 2017 694,783 40,247 S (992) S 113,247 $ 152,502 0 0 0 0 0 0 Year Ended December 31, 2016 2015 2017 16,348 $ 19,478 S 12.662 4,132 931 5.203 (179) 334 212 5.287 877 6.703 (38) 275 174 6.103 812 7.679 258 194 137 (2.094) (179) (318) 203 1.597 339 43 26.572 (2.578) 3.125 312 110 1.515 593 223 38.036 (3.768) 8,211 (2.164) 731 4,891 955 390 37.091 Operating activities Net income Adjustments: Depreciation and impairment of property and equipment Amortization and impairment of intangible assets Stock-based compensation expense Deferred income taxes Loss on marketable and non-marketable investments, net Other Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable Income taxes, net Other assets Accounts payable Accrued expenses and other liabilities Accrued revenue share Deferred revenue Net cash provided by operating activities Investing activities Purchases of property and equipment Proceeds from disposals of property and equipment Purchases of marketable securities Maturities and sales of marketable securities Purchases of non-marketable investments Maturities and sales of non-marketable investments Cash collateral related to securities lending Investments in reverse repurchase agreements Acquisitions, net of cash acquired, and purchases of intangible assets Proceeds from collection of notes receivable Net cash used in investing activities Financing activities Net payments related to stock-based award activities Adjustment Payment to Class C capital stockholders Repurchases of capital stock Proceeds from issuance of debt, net of costs Repayments of debt Proceeds from sale of subsidiary shares Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (9.950) 35 (74,368) 62.905 (2.326) 154 (350) 425 (236) 0 (23.711) (10.212) 240 (84.509) 88.895 (1.100) 494 (2.428) 450 (986) 0 (31.165) (13.184) 99 (92.195) 73.959 (1.745) 533 0 0 (287) 1.410 (31.401) (2.375) (47) (1.780) 13.705 (13.728) 0 (4.225) (434) (1.798) 18.347 16.549 (3.304) 0 (3.693) 8.729 (10.064) 0 (8.332) (170) (3.631) 16,549 12.918 (4.166) 0 (4.846) 4.291 (4.377) 800 (8.298) 405 (2.203) 12.918 10.715 $ S S Supplemental disclosures of cash flow information Cash paid for taxes, net of refunds Cash paid for interest, net of amounts capitalized $ S 3.651 $ 96 1.843 84 $ $ 6.191 84 Fiscal Year 2017 Quarters Ended: March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 High $ 872.37 $ $ 1,004.28 $ 998.31 $ 1,085.09 $ Low 807.77 839.88 919.46 966.78 $ Low $ Fiscal Year 2016 Quarters Ended: High March 31, 2016 780.91 $ 701.02 June 30, 2016 $ 787.68 $ 681.14 September 30, 2016 $ 815.95 $ 704.89 December 31, 2016 835.74 $ 753.22 Our Class B common stock is neither listed nor traded. Our Class C capital stock has been listed on the Nasdaq Global Select Market under the symbol "GOOG" since April 3, 2014. The following table sets forth for the indicated periods the high and low sales prices per share for our Class C capital stock on the Nasdaq Global Select Market. $ Fiscal Year 2017 Quarters Ended: March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 High $ 852.12 $ $ 983.68 $ $ 980.34 $ $ 1,077.14 S Low 786.14 823.35 898.70 951.68 Fiscal Year 2016 Quarters Ended: March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 $ $ $ $ High 764.65 $ 766.61 $ 787.21 $ 813.11 $ Low 678.11 668.26 694.49 736.08 Issuer Purchases of Equity Securities The following table presents information with respect to Alphabet's repurchases of Class C capital stock during the quarter ended December 31, 2017: Total Number of Approximate Dollar Shares Purchased Value of Shares that as part of Publicly May Yet Be Total Number of Announced Purchased Under the Shares Purchased Average Price Paid Programs Program Period (in thousands) "" per Share 12) (in thousands) (in millions) October 1 - 31 0 $ 0.00 0 $ 4,274 November 1 - 30 1,231 $ 1,028.78 1,231 $ 3,008 December 1 - 31 806 $ 1,035.28 806 $ 2,173 Total 2,037 $ 1,031.35 2,037 (1) In October 2016, the board of directors of Alphabet authorized the company to repurchase up to $7.0 billion of its Class C capital stock. The repurchases are being executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The repurchase program does not have an expiration date. See Note 11 in Part II, Item 8 of this Annual Report on Form 10-K for additional information related to share repurchases. Average price paid per share includes costs associated with the repurchases. (2) 22 2013 Year Ended December 31, 2014 2015 2016 (in millions, except per share amounts) 2017 S S Consolidated Statements of Income Data: Revenues Income from operations Net income from continuing operations Net income (loss) from discontinued operations Net income 55,519 15.403 13,160 66.001 $ 16.496 13,620 74.989 $ 19,360 16,348 90.272 $ 23,716 19,478 110.855 26.146 12,662 (427) 12.733 516 14,136 0 16,348 0 19,478 0 12,662 S S S Basic net income (loss) per share of Class A and B common stock: Continuing operations S 19.77 Discontinued operations (0.64) Basic net income per share of Class A and B common stock $ 20.15$ 0.76 23.11 0.00 28.32 0.00 18.27 0.00 19.13 $ 20.91 $ 23.11 S 28.32 $ 18.27 S S Basic net income (loss) per share of Class C capital stock Continuing operations S 19.77 Discontinued operations (0.64) Basic net income per share of Class C capital stock S 19.13 20.15$ 0.76 24.63 0.00 28.32 $ 0.00 18.27 0.00 S 20.91 S 24.63 $ 28.32 $ 18.27 S S Diluted net income (loss) per share of Class A and B common stock: Continuing operations S 19.42 $ Discontinued operations (0.63) Diluted net income per share of Class A and B common stock 18.79 $ 19.82 0.75 22.84 S 0.00 27.85 0.00 18.00 0.00 20.57 $ 22.84 $ 27.85 $ 18.00 S S S Diluted net income (loss) per share of Class C capital stock: Continuing operations S 19.42 S Discontinued operations (0.63 Diluted net income per share of Class C capital stock S 18.79 $ 19.82 0.75 24.34 0.00 27.85 0.00 18.00 0.00 20.57 $ 24.34 S 27.85 S 18.00 2013 2014 As of December 31, 2015 in millions) 2016 2017 Consolidated Balance Sheet Data: Cash, cash equivalents, and marketable securities Total assets Total long-term liabilities Total stockholders' equity S S S S 58,717 S 109,050 S 6,165 5 86,977 S 64,395 S 129.187 S 8,548 S 103,860 S 73,066 S 147,461 S 7,820 S 120,331 S 86,333 S 167,497 S 11,705 S 139,036 S 101,871 197,295 20.610 152,502 Revenues The following table presents our revenues, by segment and revenue source (in millions): Year Ended December 31, 2016 2015 2017 S Google segment Google properties revenues Google Network Members' properties revenues Google advertising revenues Google other revenues Google segment revenues 52,357 S 15,033 67,390 7,154 74,544 5 63,785 S 15,598 79.383 10,080 89,463 S 77,788 17,587 95,375 14,277 109.652 S Other Bets Other Bets revenues S 445 $ 809 S 1.203 Revenues S 74,989S 90,272 S 110.855 Google segment The following table presents our Google segment revenues (in millions), and changes in our aggregate paid clicks and cost-per- click (expressed as a percentage): S Google segment revenues Google segment revenues as a percentage of total revenues Aggregate paid clicks change Aggregate cost-per-click change Use of Monetization Metrics Year Ended December 31. 2015 2016 74,544 S 89,463 S 99.4% 99.1 % 34 % (11)% 2017 109,652 98.9 % 46 % (19)% In the first quarter of 2017, we refined our methodology for paid clicks and cost-per-click to include additional categories of TrueView engagement ads and exclude non-engagement based trial ad formats. This change resulted in a modest increase in growth of paid clicks and a modest decrease in growth of cost-per-click. For comparison purposes, we have included updated data for historical periods in the table below: Three Months Ended Jun 30, 2016 Sep 30, 2016 Year Ended Dec 31, 2016 Mar 31, 2016 Dec 31, 2016 Year-over-year change Aggregate paid clicks Paid clicks on Google properties Paid clicks on Google Network Members properties 29 % 38 % 28 % 36 % 32 % 41 % 39 % 47 % 34% 43 % 2 % 0 % 1 % 7% 3 % (8) % (11)% (6)% (8)% (10)% (12)% (17)% (18)% (11)% (13)% Aggregate cost-per-click Cost-per-click on Google properties Cost-per-click on Google Network Members' properties (8)% (8)% (14)% (19)% (13)% Quarter-over-quarter change Aggregate paid clicks Paid clicks on Google properties Paid clicks on Google Network Members' properties (2)% (3)% 7 % 9 % 9% 11 % 22 % 25 % N/A N/A 4 % (3)% 1 % 6 % N/A Aggregate cost-per-click (1)% (1)% (5)% (10)% NIA Cost-per-click on Google properties 1 % (2)% (6)% (12)% N/A Cost-per-click on Google Network Members' properties (12)% (2)% (6)% 0 % N/A Our advertising revenue growth, as well as the change in paid clicks and cost-per-click on Google properties and Google Network Members' properties and the correlation between these items, have fluctuated and may continue to fluctuate because of various Google properties The following table presents our Google properties revenues (in millions), and changes in our paid clicks and cost-per-click (expressed as a percentage): Year Ended December 31, 2015 2016 2017 Google properties revenues S 52,357 IS 63,785 77,788 Google properties revenues as a percentage of Google segment revenues 70.2% 71.3% 70.9 % Paid clicks change 43 % 54 % Cost-per-click change (13)% (21)% Google properties revenues consist primarily of advertising revenues that are generated on: . Google search properties which includes revenues from traffic generated by search distribution partners who use Google.com 2e their default search in browsers toolharsete and 2015 15,033 Year Ended December 31, 2016 S 15,598 S 2017 17,587 S Google Network Members' properties revenues Google Network Members' properties revenues as a percentage of Google segment revenues Paid clicks change Cost-per-click change 20.2% 17.4% 3 % (13)% 16.0 % 10 % (9)% 30 The following table presents our Google other revenues in millions). S Year Ended December 31, 2015 2016 2017 oogle other revenues S 7,154 S 10.080 14,277 oogle other revenues as a percentage of Google segment revenues 9.6% 11.3% 13.0% Google other revenues consist primarily of revenues from: Apps, in-app purchases, and digital content in the Google Play store; Google Cloud offerings and Hardware Our Google other revenues increased $4,197 million from 2016 to 2017. The increase was primarily driven by revenues from oogle Cloud offerings, hardware sales, and revenues from Google Play, largely relating to in-app purchases (revenues which we cognize net of payout to developers). Our Google other revenues increased $2,926 million from 2015 to 2016 and increased as a percentage of Google segment venues. These increases were primarily due to the growth in revenues from Google Play, primarily relating to in-app purchases evenues which we recognize net of payout to developers), hardware sales, and Google Cloud offerings. Other Bets The following table presents our Other Bets revenues (in millions): Year Ended December 31, 2015 2016 2017 ther Bets revenues S 445 S 809 S 1.203 ther Bets revenues as a percentage of total revenues 0.6% 0.9% 1.1% Other Bets revenues consist primarily of revenues and sales from: Internet and TV services; Licensing and R&D services and Nest branded hardware. Twelve Months Ended December 31 2016 S 30,304 S 2015 26,368 2017 36,046 S rates EMEA revenues Exclude foreign exchange impact on current period revenues using prior year Exclude hedging impact recognized in current period EMEA constant currency revenues S Prior period EMEA revenues, excluding hedging impact S EMEA revenue growth EMEA constant currency revenue growth 3,802 (989) 29,181 24,497 S S 1.291 (479) 31.116 25,379 15% 23% S S (5) 190 36.231 29,825 19% 21% S 9.887 S 12.559 S 16.235 APAC revenues Exclude foreign exchange impact on current period revenues using prior year rates Exclude hedging impact recognized in current period APAC constant currency revenues Prior period APAC revenues, excluding hedging impact S APAC revenue growth APAC constant currency revenue growth 1,076 (323) 10.640 5 8,169 S S (362) (31) 12,166 9,564 27% 27% S S 26 (43) 16,218 12.528 29% 29% 3,924 S 4,628 S 6,125 Other Americas revenues S Exclude foreign exchange impact on current period revenues using prior year rates Exclude hedging impact recognized in current period Other Americas constant currency revenues Prior period Other Americas revenues, excluding hedging impact Other Americas revenue growth Other Americas constant currency revenue growth 712 (88) 4,548 S 3,681 S 344 (29) 4,943 3,836 18% 29% (148) 22 5,999 4,599 un S S 32% 30% S 34,810 S S United States revenues United States revenue growth 42.781 23% 52.449 23% S S 74,989 S 79,179 S S S Total revenues Total constant currency revenues Total revenue growth Total constant currency revenue growth 90,272 91,006 20% 24% 110,855 110,897 23% 24% Our EMEA revenues from 2016 to 2017 juere unfavorably imnacted primarily as a result of an unfavorable imnart from hedaina The following ladies present our COSI Or leven Mcluding TAL (1 S TAC Other cost of revenues Total cost of revenues Total cost of revenues as a percentage of revenues Year Ended December 31, 2015 2016 14,343 S 16,793 S 13.821 18,345 28,164 S 35,138 S 37.6% 38.9% 2017 21,672 23,911 45,583 41.1% S Year Ended December 31, 2015 2016 4,101 S 5,894 S 2017 9,031 S TAC to distribution partners TAC to distribution partners as a percentage of Google properties revenues Google properties TAC rate) 7.8% 9.2% 11.6% S 10.242 10.899 S 12.641 TAC to Google Network Members TAC to Google Network Members as a percentage of Google Network Members' properties revenues (Network Members TAC rate) 68.1% 69.9% 71.9% S S S TAC TAC as a percentage of advertising revenues (Aggregate TAC rate) Revenues include hedging gains(losses) which impact TAC rates. 14,343 21.3% 16,793 21.2% 21,672 22.7% 1) Year Ended December 31, 2015 2016 2017 Research and development expenses S 12.282 S 13,948 S 16,625 Research and development expenses as a percentage of revenues 16.4% 15.5% 15.0% R&D expenses consist primarily of Compensation expenses, including SBC, and facilities-related costs for employees responsible for R&D of our existing and new products and services, and Depreciation and equipment-related expenses. R&D expenses increased $2,677 million from 2016 to 2017. The increase was primarily due to an increase in compensation expenses, including SBC, and facilities-related costs of S1,886 million, largely resulting from a 16% increase in headcount. In addition, here was an increase in depreciation and equipment-related expenses of $569 million. R&D expenses increased $1,666 million from 2015 to 2016. The increase was primarily due to an increase in stock-based compensation expense of S667 million and an increase in labor and facilities-related costs of 5326 million, both largely as a result of a 16% increase in R&D headcount, partially offset by higher expenses resulting from project milestones in Other Bets in 2015. In addition, there was an increase in depreciation and equipment-related expenses of approximately 5388 million and an increase in professional services of S267 million due to additional expenses incurred for consulting, outsourced services, and temporary services. We expect that R&D expenses will increase in dollar amount and may fluctuate as a percentage of revenues in future periods. Sales and Marketing The following table presents our sales and marketing expenses (in millions): Year Ended December 31 2015 2016 2017 Sales and marketing expenses S 9,047 S 10,485 S 12.893 Sales and marketing expenses as a percentage of revenues 12.1% 11.6% 11.6% Sales and marketing expenses consist primarily of: Year Ended December 31, 2015 2016 2017 General and administrative expenses S 6,136 S 6,985 S 6,872 General and administrative expenses as a percentage of revenues 8.2% 7.7% 6.2% General and administrative expenses consist primarily of Amortization of certain intangible assets Compensation expenses, including SBC, and facilities-related costs for employees in our facilities, finance, human resources, information technology, and legal organizations; Depreciation and equipment-related expenses, and Professional services fees primarily related to audit, information technology consulting, outside legal, and outsourcing services General and administrative expenses decreased $113 million from 2016 to 2017. The decrease was primarily from reduced allocations to general and administrative expenses with an offsetting increase to costs of revenues and other operating expenses. The decrease was partially offset by an increase in compensation expenses, including SBC, and facilities-related costs of $271 million, largely resulting from a 9% increase in headcount. Additionally, there was an increase in professional service fees of S253 million due to additional expenses incurred for outsourced services and consulting services. General and administrative expenses increased $849 million from 2015 to 2016. The increase was primarily due to increases in labor and facilities-related costs of S460 million, and stock-based compensation expense of $421 million, both largely resulting from a 15% increase in general and administrative headcount, as well as increases in other miscellaneous expenses. These increases were offset by a decrease in professional service fees of $194 million due to lower legal-related costs. We expect general and administrative expenses will increase in dollar amount and may fluctuate as a percentage of revenues in future periods European Commission Fine In June 2017, the EC announced its decision that certain actions taken by Google regarding its display and ranking of shopping search results and ads infringed European competition law. The EC decision imposed a 2.42 billion (approximately 52.74 billion as of June 27, 2017) fine, which was accrued in the second quarter of 2017. Other Income (Expense), Net The following table presents other income (expense), net, (in Millions): Year Ended December 31, 2015 2016 2017 Other income (expense), net S 291 S 434 S 1,047 Other income (expense), net, as a percentage of revenues 0.4% 0.5% 0.9% Other income (expense), net, increased $613 million from 2016 to 2017. This increase was primarily driven by reduced costs of our foreign currency hedging activities, decreased losses on marketable securities and an increase in interest income. 37 Table of Contents Alphabet Inc. Mar 31, 2016 Jun 30, 2016 Quarter Ended Sep 30. Dec 31, Mar 31, Jun 30, 2016 2016 2017 2017 (In millions, except per share amounts) (unaudited) Sep 30. 2017 Dec 31, 2017 $ 21,500 $ 22,451 $ 26,064 $ 24,750 $ 28,010 $ 27,772 $ 32,323 Consolidated Statements of Income Data: Revenues $ 20,257 Costs and expenses Cost of revenues 7,848 Research and development 3,367 Sales and marketing 2,387 General and administrative 1.513 European Commission fine 0 Total costs and expenses 14,915 Income from operations 5,342 Other income (expense), net (213) Income from continuing operations before income taxes 5,129 Provision for income taxes 922 Net income s 4,207 11,148 4,205 3,042 1,595 8.130 3,363 2.415 1.624 0 15,532 5,968 151 8,699 3.598 2,565 1.824 0 18.884 5.767 278 10,681 3,622 3.118 2.024 0 19,425 8.839 218 9.795 3,942 2.644 1.801 0 18,182 8,568 10.373 4,172 2.897 1.700 2.738 21.878 4,132 245 14,267 4,308 4,310 1.776 0 24,859 7,684 354 19.990 7,782 197 251 4,377 8.119 1.242 4.877 6,045 984 5,061 6,857 1,524 $ 5,333 6,819 1.393 5.428 853 7.979 1,247 8.732 8.018 11,038 $ (3,020) S s S S 3.524 S 6.12 S 7.11 S 7.38 S 7.73 S 7.85 s 5.09 S 9.71 S (4.35) Basic net income per share of Class A and B common stock and Class C capital stock S Diluted net income per share of Class A and B common stock and Class C capital stock $ 9 6.02 09 7.00 $ 7.25 5 7.58 $ 7.73 s 5.01 9.57 S (4.35) Canital Desources and liquiditur Year Ended December 31, 2015 2016 2017 let cash provided by operating activities S 26,572 S 36,036 S 37,091 let cash used in investing activities S (23,711) $ (31,165) S (31,401) let cash used in financing activities S (4,225) S (8,332) S (8,298) Cash Provided by Operating Activities Our largest source of cash provided by our operations are advertising revenues generated by Google properties and Google Payments Due By Period Less than 1-3 3-5 More than Total 1 year years years 5 years Operating lease obligations, net of sublease income mounts S 8,753 5 1,160 S 2.182 S 1,796 S 3,615 Purchase obligations 7,154 4,548 1,910 241 455 Long-term debt obligations) 4,744 112 224 1,170 3,238 ax payable 10.233 890 1,746 1,746 5.851 Other long-term liabilities reflected on our balance heet 2,416 348 619 511 938 Total contractual obligations S 33,300 S 7,058 5 6,681 S 5,464 14.097 For further information, refer to Note 10 of the Notes to Consolidated Financial Statements included in Part Il of this Annual Report on Form 10- K. December 31, 2016 December 31, 2017 S S 12,918 73,415 86,333 14,137 95 268 4,575 105,408 5,878 383 34,234 3,307 16,468 1,819 167,497 10,715 91,156 101,871 18,336 369 749 2.983 124,308 7.813 680 42,383 2.692 16,747 2.672 197,295 S S Assets Current assets: Cash and cash equivalents Marketable securities Total cash, cash equivalents, and marketable securities Accounts receivable, net of allowance of S467 and $674 Income taxes receivable, net Inventory Other current assets Total current assets Non-marketable investments Deferred income taxes Property and equipment, net 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 Other long-term liabilities Total liabilities Commitments and Contingencies (Note 10) Stockholders' equity: Convertible preferred stock, 50.001 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, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000. Class B 3,000,000. Class C 3,000,000); 691,293 (Class A 296,992, Class S S 2.041 3,976 6,144 2.942 1,099 554 16.756 3,935 202 4,677 226 2,665 28,461 3,137 4,581 10.177 3,975 1,432 881 24,183 3,969 340 12,812 430 3,059 44,793 0 0 nn 170 cm nr 07 ASS 290,470, vlasSD +0,912, Class 349,341) shares issued and outstanding Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 36,307 (2,402) 105,131 139,036 167,497 40.247 (992) 113,247 152,502 197,295 S S See accompanying notes. 48 able of Contents Alphabet Inc. Alphabet Inc. CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) Year Ended December 31, 2015 2016 2017 Levenues S 74,989 S 90,272 S 110,855 -osts and expenses: Cost of revenues 28,164 35,138 45,583 Research and development 12.282 13,948 16,625 Sales and marketing 9,047 10,485 12,893 General and administrative 6,136 6,985 6,872 European Commission fine 0 0 2,736 otal costs and expenses 55,629 66,556 84,709 come from operations 19,360 23,716 26,146 ther income (expense), net 291 434 1,047 ncome before income taxes 19,651 24.150 27,193 rovision for income taxes 3,303 4,672 14,531 et income S 16,348 5 19,478 S 12,662 ess: Adjustment Payment to Class C capital stockholders 522 0 0 et income available to all stockholders S 15,826 S 19,478 S 12,662 S asic net income per share of Class A and B common stock asic net income per share of Class C capital stock S S 23.11 24.63 28.32 S 28.32 S 18.27 18.27 iluted net income per share of Class A and B common stock iluted net income per share of Class C capital stock S S 22.84 24.34 S S 27.85 S 27.85 S 18.00 18.00 See accompanying notes Table of Contents Alphabet Inc. Alphabet Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Year Ended December 31, 2015 2016 16,348 S 19,478 S 2017 12,662 S (1,067) (599) 1,543 (715) (314) 307 let income Other comprehensive income (loss): Change in foreign currency translation adjustment Available-for-sale investments: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of S29, 50, and So) Cash flow hedges: Change in net unrealized gains (losses) Less: reclassification adjustment for net (gains) losses included in net income Net change (net of tax effect of $115, $64, and $247) Other comprehensive income (loss) Comprehensive income 208 (507) 221 (93) 105 412 676 515 (638) (1,003) (327) (1,901) 14,447 (351) 164 (528) 18,950 $ 93 (545 1,410 14,072 S See accomnanvina notes 0 0 0 0 Alphabet Inc. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In millions, except share amounts which are reflected in thousands) Class A and Class B Common Stock, Class C Capital Stock Accumulated and Other Total Additional Paid-In Capital Comprehensive Retained Stockholders Shares Amount Income (Loss) Earnings Equity Balance as of December 31, 2014 680,1725 28,767 S 27 S 75,066 S 103,860 Common and capital stock issued 8,714 664 0 0 664 Stock-based compensation expense 0 5,151 5,151 Stock-based compensation tax benefits 0 815 0 815 Tax withholding related to vesting of restricted stock units (2.779) 0 (2.779) Repurchases of capital stock (2,391) (111) (1,669) (1,780) Adjustment Payment to Class C capital stockholders 853 475 0 (522) (47) Net income 0 0 0 16,348 16,348 Other comprehensive loss 0 0 (1.901) 0 (1,901) Balance as of December 31, 2015 687,348 32.982 (1,874) 89,223 120,331 Cumulative effect of accounting change 0 180 0 (133) 47 Common and capital stock issued 9.106 298 0 298 Stock-based compensation expense 0 6,700 0 6,700 Tax withholding related to vesting of restricted stock units 0 (3,597) 0 (3,597) Repurchases of capital stock (5,161) (256) 0 (3,437) (3,693) Net income 0 0 0 19,478 19,478 Other comprehensive loss 0 (528) 0 (528) Balance as of December 31, 2016 691,293 36,307 (2,402) 105,131 139,036 Cumulative effect of accounting change 0 0 (15) (15) Common and capital stock issued 8,652 212 0 0 212 Stock-based compensation expense 0 7.694 0 7,694 Tax withholding related to vesting of restricted stock units (4,373) 0 (4,373) Repurchases of capital stock (5,162) (315) 0 (4,531) (4,846) Sale of subsidiary shares 722 0 0 722 Net income 0 0 0 12,662 12,662 Other comprehensive income 0 0 1,410 0 1,410 Balance as of December 31, 2017 694,783 40,247 S (992) S 113,247 $ 152,502 0 0 0 0 0 0 Year Ended December 31, 2016 2015 2017 16,348 $ 19,478 S 12.662 4,132 931 5.203 (179) 334 212 5.287 877 6.703 (38) 275 174 6.103 812 7.679 258 194 137 (2.094) (179) (318) 203 1.597 339 43 26.572 (2.578) 3.125 312 110 1.515 593 223 38.036 (3.768) 8,211 (2.164) 731 4,891 955 390 37.091 Operating activities Net income Adjustments: Depreciation and impairment of property and equipment Amortization and impairment of intangible assets Stock-based compensation expense Deferred income taxes Loss on marketable and non-marketable investments, net Other Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable Income taxes, net Other assets Accounts payable Accrued expenses and other liabilities Accrued revenue share Deferred revenue Net cash provided by operating activities Investing activities Purchases of property and equipment Proceeds from disposals of property and equipment Purchases of marketable securities Maturities and sales of marketable securities Purchases of non-marketable investments Maturities and sales of non-marketable investments Cash collateral related to securities lending Investments in reverse repurchase agreements Acquisitions, net of cash acquired, and purchases of intangible assets Proceeds from collection of notes receivable Net cash used in investing activities Financing activities Net payments related to stock-based award activities Adjustment Payment to Class C capital stockholders Repurchases of capital stock Proceeds from issuance of debt, net of costs Repayments of debt Proceeds from sale of subsidiary shares Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (9.950) 35 (74,368) 62.905 (2.326) 154 (350) 425 (236) 0 (23.711) (10.212) 240 (84.509) 88.895 (1.100) 494 (2.428) 450 (986) 0 (31.165) (13.184) 99 (92.195) 73.959 (1.745) 533 0 0 (287) 1.410 (31.401) (2.375) (47) (1.780) 13.705 (13.728) 0 (4.225) (434) (1.798) 18.347 16.549 (3.304) 0 (3.693) 8.729 (10.064) 0 (8.332) (170) (3.631) 16,549 12.918 (4.166) 0 (4.846) 4.291 (4.377) 800 (8.298) 405 (2.203) 12.918 10.715 $ S S Supplemental disclosures of cash flow information Cash paid for taxes, net of refunds Cash paid for interest, net of amounts capitalized $ S 3.651 $ 96 1.843 84 $ $ 6.191 84