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Alphabet Inc.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(In millions; unaudited)
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Three Months Ended Six Months Ended
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June 30, June 30,
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2015 2016 2015 2016
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Operating activities
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Net income $3,931 $4,877 $7,446 $9,084
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Adjustments:
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Depreciation and impairment of property and equipment 1,011 1,271 1,949 2,426
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Amortization and impairment of intangible assets 223 219 462 435
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Stock-based compensation expense 1,132 1,503 2,335 2,997
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Deferred income taxes (221) (50) (150) 364
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Loss on marketable and non-marketable investments, net 17 14 33 294
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Other 55 27 116 91
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Changes in assets and liabilities, net of effects of acquisitions:
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Accounts receivable (767) (835) (69) (17)
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Income taxes, net 1,123 1,409 1,950 1,680
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Prepaid revenue share, expenses and other assets 19 (24) 62 161
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Accounts payable (374) 48 (398) (221)
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Accrued expenses and other liabilities 838 593 237 (471)
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Accrued revenue share 84 83 (121) (48)
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Deferred revenue 25 (15) (34) 3
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Net cash provided by operating activities 7,096 9,120 13,818 16,778
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Investing activities
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Purchases of property and equipment (2,515) (2,123) (5,442) (4,551)
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Purchases of marketable securities (20,568) (24,840) (33,126) (45,588)
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Maturities and sales of marketable securities 17,197 20,346 27,586 37,789
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Purchases of non-marketable investments (375) (262) (1,449) (583)
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Cash collateral related to securities lending 1,036 (106) (84) (363)
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Investments in reverse repurchase agreements 200 (150) 250 (50)
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Acquisitions, net of cash acquired, and purchases of intangible assets (78) (38) (142) (72)
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Net cash used in investing activities (5,103) (7,173) (12,407) (13,418)
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Financing activities
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Net payments related to stock-based award activities (511) (803) (1,004) (1,610)
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Adjustment payment to Class C capital stockholders (47) 0 (47) 0
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Repurchases of capital stock 0 (1,595) 0 (3,693)
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Proceeds from issuance of debt, net of costs 3,393 1,797 6,698 5,753
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Repayments of debt (3,396) (2,839) (6,704) (6,801)
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Net cash used in financing activities (561) (3,440) (1,057) (6,351)
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Effect of exchange rate changes on cash and cash equivalents 45 9 (248) 69
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Net increase (decrease) in cash and cash equivalents 1,477 (1,484) 106 (2,922)
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Cash and cash equivalents at beginning of period 16,976 15,111 18,347 16,549
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Cash and cash equivalents at end of period $18,453 $13,627 $18,453 $13,627
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