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Alphabet 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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2014 2015 2014 2015
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(unaudited)
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Operating activities
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Net income $2,739 $3,979 $9,461 $11,425
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Adjustments
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Depreciation expense and impairment of property and equipment 884 1,030 2,513 2,979
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Amortization and impairment of intangible assets 663 218 1,199 680
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Stock-based compensation expense 1,290 1,432 3,092 3,767
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Excess tax benefits from stock-based award activities (175) (138) (467) (354)
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Deferred income taxes (360) (416) (498) (566)
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Gain on equity interest 0 0 (126) 0
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(Gain) loss on marketable and non-marketable investments, net (12) (1) (251) 32
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Other 66 41 157 157
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Changes in assets and liabilities, net of effects of acquisitions
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Accounts receivable (36) (267) (490) (336)
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Income taxes, net 487 (857) 577 1,093
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Prepaid revenue share, expenses and other assets (13) 142 506 204
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Accounts payable (127) 230 (113) (168)
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Accrued expenses and other liabilities 484 583 416 820
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Accrued revenue share 104 52 36 (69)
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Deferred revenue 0 (21) 0 (55)
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Net cash provided by operating activities 5,994 6,007 16,012 19,609
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Investing activities
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Purchases of property and equipment (2,417) (2,373) (7,408) (7,815)
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Purchases of marketable securities (18,335) (23,091) (43,192) (56,217)
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Maturities and sales of marketable securities 13,045 19,274 36,650 46,860
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Purchases of non-marketable investments (69) (322) (536) (1,771)
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Cash collateral related to securities lending 316 572 2,029 488
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Investments in reverse repurchase agreements (725) 225 (725) 475
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Acquisitions, net of cash acquired, and purchases of intangibles and other assets (1,142) (102) (4,632) (244)
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Net cash used in investing activities (9,327) (5,817) (17,814) (18,224)
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Financing activities
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Net payments related to stock-based award activities (627) (606) (1,548) (1,610)
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Excess tax benefits from stock-based award activities 175 138 467 354
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Adjustment Payment to Class C capital stockholders 0 0 0 (47)
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Proceeds from issuance of debt, net of costs 2,874 3,634 9,167 10,332
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Repayments of debt (2,877) (3,637) (9,181) (10,341)
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Net cash used in financing activities (455) (471) (1,095) (1,312)
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Effect of exchange rate changes on cash and cash equivalents (227) (104) (236) (352)
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Net decrease in cash and cash equivalents (4,015) (385) (3,133) (279)
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Cash and cash equivalents at beginning of period 19,620 18,453 18,898 18,347
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Reclassification of assets previously held for sale 0 0 (160) 0
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Cash and cash equivalents at end of period $15,605 $18,068 $15,605 $18,068