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Google Inc.

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CONSOLIDATED STATEMENTS OF INCOME

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(In millions, except share amounts which are reflected in thousands and per share amounts)

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Three Months Ended Twelve Months Ended

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December 31, December 31,

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2012 2013 2012 2013

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(unaudited) (unaudited)

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Revenues:

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Google (advertising and other) $12,905 $15,707 $46,039 $55,519

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Motorola Mobile (hardware and other) 1,514 1,151 4,136 4,306

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Total revenues 14,419 16,858 50,175 59,825

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Costs and expenses:

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Cost of revenues - Google (advertising and other) (1) 4,963 6,253 17,176 21,993

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Cost of revenues - Motorola Mobile (hardware and other) (1) 1,250 1,185 3,458 3,865

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Research and development (1) 1,935 2,111 6,793 7,952

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Sales and marketing (1) 1,751 2,126 6,143 7,253

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General and administrative (1) 1,126 1,261 3,845 4,796

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Total costs and expenses 11,025 12,936 37,415 45,859

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Income from operations 3,394 3,922 12,760 13,966

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Interest and other income, net 152 125 626 530

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Income from continuing operations before income taxes 3,546 4,047 13,386 14,496

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Provision for income taxes 639 666 2,598 2,282

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Net income from continuing operations 2,907 3,381 10,788 12,214

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Net income (loss) from discontinued operations (21) (5) (51) 706

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Net income $2,886 $3,376 $10,737 $12,920

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Net income (loss) per share - basic:

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Continuing operations $8.83 $10.10 $32.97 $36.70

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Discontinued operations (0.06) (0.02) (0.16) 2.12

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Net income (loss) per share - basic $8.77 $10.08 $32.81 $38.82

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Net income (loss) per share - diluted:

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Continuing operations $8.68 $9.91 $32.46 $36.05

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Discontinued operations (0.06) (0.01) (0.15) 2.08

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Net income (loss) per share - diluted $8.62 $9.90 $32.31 $38.13

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Shares used in per share calculation - basic 329,363 334,836 327,213 332,846

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Shares used in per share calculation - diluted 334,977 341,003 332,305 338,809

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(1) Includes stock-based compensation expense as follows:

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Cost of revenues - Google (advertising and other) $101 $127 $359 $469

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Cost of revenues - Motorola Mobile (hardware and other) 4 4 14 18

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Research and development 364 482 1,325 1,717

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Sales and marketing 130 159 498 578

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General and administrative 109 130 453 486

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$708 $902 $2,649 $3,268