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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 Twelve Months Ended
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December 31, December 31,
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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 $4,675 $4,923 $14,136 $16,348
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Adjustments:
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Depreciation expense and impairment of property and equipment 1,010 1,153 3,523 4,132
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Amortization and impairment of intangible assets 257 251 1,456 931
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Stock-based compensation expense 1,187 1,436 4,279 5,203
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Excess tax benefits from stock-based award activities (181) (194) (648) (548)
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Deferred income taxes 394 387 (104) (179)
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Gain on divestiture of business (740) 0 (740) 0
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(Gain) loss on marketable and non-marketable investments, net (13) 302 (390) 334
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Other 35 55 192 212
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Changes in assets and liabilities, net of effects of acquisitions:
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Accounts receivable (1,151) (1,758) (1,641) (2,094)
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Income taxes, net 14 (1,272) 591 (179)
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Prepaid revenue share, expenses and other assets (47) (522) 459 (318)
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Accounts payable 549 371 436 203
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Accrued expenses and other liabilities 341 777 757 1,597
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Accrued revenue share 209 408 245 339
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Deferred revenue (175) 98 (175) 43
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Net cash provided by operating activities 6,364 6,415 22,376 26,024
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Investing activities
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Purchases of property and equipment (3,551) (2,100) (10,959) (9,915)
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Purchases of marketable securities (13,118) (18,151) (56,310) (74,368)
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Maturities and sales of marketable securities 14,665 16,045 51,315 62,905
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Purchases of non-marketable investments (691) (401) (1,227) (2,172)
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Cash collateral related to securities lending (626) (838) 1,403 (350)
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Investments in reverse repurchase agreements (50) (50) (775) 425
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Proceeds from divestiture of business 386 0 386 0
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Acquisitions, net of cash acquired, and purchases of intangibles and other assets (256) 8 (4,888) (236)
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Net cash used in investing activities (3,241) (5,487) (21,055) (23,711)
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Financing activities
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Net payments related to stock-based award activities (521) (765) (2,069) (2,375)
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Excess tax benefits from stock-based award activities 181 194 648 548
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Adjustment Payment to Class C capital stockholders 0 0 0 (47)
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Repurchases of capital stock 0 (1,780) 0 (1,780)
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Proceeds from issuance of debt, net of costs 2,458 3,373 11,625 13,705
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Repayments of debt (2,462) (3,387) (11,643) (13,728)
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Net cash used in financing activities (344) (2,365) (1,439) (3,677)
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Effect of exchange rate changes on cash and cash equivalents (197) (82) (433) (434)
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Net increase (decrease) in cash and cash equivalents 2,582 (1,519) (551) (1,798)
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Cash and cash equivalents at beginning of period 15,605 18,068 18,898 18,347
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Reclassification of assets previously held for sale 160 0 0
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Cash and cash equivalents at end of period $18,347 $16,549 $18,347 $16,549
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