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Google Inc.

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CONSOLIDATED STATEMENTS OF CASH FLOWS

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(In millions)

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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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Operating activities

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Net income $3,346 $3,452

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Adjustments:

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Depreciation expense and loss on disposal of property and equipment 584 816

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Amortization of intangible and other assets 315 270

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Stock-based compensation expense 708 887

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Excess tax benefits from stock-based award activities (94) (155)

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Deferred income taxes 202 144

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Gain on equity interest 0 (103)

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Gain on sale of non-marketable equity investments 0 (117)

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Other 37 (14)

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Changes in assets and liabilities, net of effects of acquisitions:

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Accounts receivable 256 267

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Income taxes, net (335) 201

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Inventories (142) 26

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Prepaid revenue share, expenses and other assets (212) (334)

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Accounts payable 87 177

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Accrued expenses and other liabilities (1,059) (1,079)

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Accrued revenue share (27) (70)

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Deferred revenue (33) 23

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Net cash provided by operating activities 3,633 4,391

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Investing activities

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Purchases of property and equipment (1,203) (2,345)

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Purchases of marketable securities (7,834) (12,082)

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Maturities and sales of marketable securities 6,319 9,406

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Investments in non-marketable equity investments (36) (168)

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Cash collateral related to securities lending 564 779

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Investments in reverse repurchase agreements 0 50

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Acquisitions, net of cash acquired, and purchases of intangibles and other assets (251) (2,947)

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Net cash used in investing activities (2,441) (7,307)

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Financing activities

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Net payments related to stock-based award activities (210) (326)

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Excess tax benefits from stock-based award activities 94 155

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Proceeds from issuance of debt, net of costs 2,922 3,416

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Repayments of debt (3,323) (2,423)

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Net cash (used in) provided by financing activities (517) 822

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Effect of exchange rate changes on cash and cash equivalents (78) (5)

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Net increase (decrease) in cash and cash equivalents 597 (2,099)

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Cash and cash equivalents at beginning of period 14,778 18,898

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Reclassification to assets held for sale 0 (160)

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Cash and cash equivalents at end of period $15,375 $16,639