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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

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March 31,

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2013 2014

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(unaudited)

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Revenues $12,951 $15,420

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Costs and expenses:

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Cost of revenues (1) 5,136 5,961

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Research and development (1) 1,617 2,126

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Sales and marketing (1) 1,435 1,729

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General and administrative (1) 1,015 1,489

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Total costs and expenses 9,203 11,305

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Income from operations 3,748 4,115

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Interest and other income, net 134 357

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Income from continuing operations before income taxes 3,882 4,472

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Provision for income taxes 354 822

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Net income from continuing operations 3,528 3,650

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Net loss from discontinued operations (1) (182) (198)

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Net income $3,346 $3,452

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Net income (loss) per share - basic:

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Continuing operations $5.34 $5.42

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Discontinued operations (0.28) (0.29)

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Net income (loss) per share - basic $5.06 $5.13

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Net income (loss) per share - diluted:

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Continuing operations $5.24 $5.33

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Discontinued operations (0.27) (0.29)

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Net income (loss) per share - diluted $4.97 $5.04

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Shares used in per share calculation - basic 660,908 672,587

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Shares used in per share calculation - diluted 673,326 685,212

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

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Cost of revenues $99 $95

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Research and development 338 456

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Sales and marketing 118 147

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General and administrative 100 141

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Discontinued operations 53 48

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Total stock-based compensation expense $708 $887