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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 Nine Months Ended

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September 30, September 30,

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2013 2014 2013 2014

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(unaudited)

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Revenues $13,754 $16,523 $39,812 $47,898

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Costs and expenses:

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Cost of revenues (1) 5,409 6,695 15,740 18,770

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Research and development (1) 1,821 2,655 5,204 7,019

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Sales and marketing (1) 1,628 2,084 4,646 5,754

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General and administrative (1) 1,135 1,365 3,248 4,258

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Total costs and expenses 9,993 12,799 28,838 35,801

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Income from operations 3,761 3,724 10,974 12,097

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Interest and other income, net 14 133 384 635

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Income from continuing operations before income taxes 3,775 3,857 11,358 12,732

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Provision for income taxes 612 859 1,893 2,594

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Net income from continuing operations 3,163 2,998 9,465 10,138

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Net income (loss) from discontinued operations (1) (193) (185) 79 (451)

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Net income $2,970 $2,813 $9,544 $9,687

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Net income (loss) per share - basic:

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Continuing operations $4.74 $4.42 $14.25 $15.02

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Discontinued operations (0.29) (0.27) 0.12 (0.67)

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Net income per share - basic $4.45 $4.15 $14.37 $14.35

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Net income (loss) per share - diluted:

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Continuing operations $4.66 $4.36 $14.00 $14.77

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Discontinued operations (0.28) (0.27) 0.12 (0.66)

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Net income per share - diluted $4.38 $4.09 $14.12 $14.11

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Shares used in per share calculation - basic 667,232 677,097 664,366 674,933

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Shares used in per share calculation - diluted 678,470 688,215 676,156 686,597

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

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Cost of revenues $133 $169 $342 $364

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Research and development 436 666 1,175 1,569

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Sales and marketing 155 197 398 502

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General and administrative 132 223 339 539

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Discontinued operations 30 35 187 118

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Total stock-based compensation expense $886 $1,290 $2,441 $3,092