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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 Nine Months Ended

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September 30, September 30,

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2013 2014 2013 2014

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(unaudited) (unaudited)

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Operating activities

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

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Adjustments:

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Depreciation expense and loss on disposal of property and equipment 693 884 2,024 2,513

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Amortization and impariment of intangibles and other assets 281 663 879 1,199

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Stock-based compensation expense 886 1,290 2,441 3,092

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Excess tax benefits from stock-based award activities (104) (175) (302) (467)

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Deferred income taxes (140) (360) 125 (498)

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Gain on divestiture of businesses (15) 0 (705) 0

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Gain on equity interest 0 0 0 (126)

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Gain on sale of non-marketable equity investments 0 (1) 0 (139)

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Other 98 55 44 45

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

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Accounts receivable (516) (36) (454) (490)

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Income taxes, net 77 413 (79) 351

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Inventories 112 26 (46) 46

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Prepaid revenue share, expenses and other assets 199 (39) (149) 460

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Accounts payable 357 (127) 285 (113)

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Accrued expenses and other liabilities 93 484 (270) 416

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Accrued revenue share 0 104 8 36

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Deferred revenue 92 0 76 0

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Net cash provided by operating activities 5,083 5,994 13,421 16,012

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Investing activities

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Purchases of property and equipment (2,289) (2,417) (5,103) (7,408)

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Purchases of marketable securities (8,964) (18,335) (31,746) (43,192)

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Maturities and sales of marketable securities 6,235 13,045 23,241 36,650

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Investments in non-marketable equity investments (299) (69) (471) (536)

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Cash collateral related to securities lending (1,318) 316 220 2,029

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Investments in reverse repurchase agreements 670 (725) 600 (725)

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Proceeds from divestiture of businesses 174 0 2,525 0

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Acquisitions, net of cash acquired, and purchases of intangibles and other assets (27) (1,142) (1,328) (4,632)

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Net cash used in investing activities (5,818) (9,327) (12,062) (17,814)

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Financing activities

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Net payments related to stock-based award activities (369) (627) (637) (1,548)

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Excess tax benefits from stock-based award activities 104 175 302 467

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Proceeds from issuance of debt, net of costs 2,699 2,874 8,350 9,167

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Repayments of debt (2,701) (2,877) (8,904) (9,181)

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Net cash used in financing activities (267) (455) (889) (1,095)

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Effect of exchange rate changes on cash and cash equivalents 80 (227) (6) (236)

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Net increase (decrease) in cash and cash equivalents (922) (4,015) 464 (3,133)

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Cash and cash equivalents at beginning of period 16,164 19,620 14,778 18,898

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Reclassification to assets held for sale 0 0 0 (160)

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Cash and cash equivalents at end of period $15,242 $15,605 $15,242 $15,605