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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 Nine Months Ended
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September 30, September 30,
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2015 2016 2015 2016
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Operating activities
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Net income $3,979 $5,061 $11,425 $14,145
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Adjustments:
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Depreciation and impairment of property and equipment 1,030 1,377 2,979 3,803
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Amortization and impairment of intangible assets 218 219 680 654
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Stock-based compensation expense 1,432 1,860 3,767 4,857
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Deferred income taxes (416) (245) (566) 119
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(Gain) loss on marketable and non-marketable investments, net (1) (90) 32 204
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Other 41 26 157 117
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Changes in assets and liabilities, net of effects of acquisitions:
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Accounts receivable (267) (282) (336) (299)
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Income taxes, net (857) 473 1,093 2,153
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Prepaid revenue share, expenses and other assets 142 (47) 204 114
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Accounts payable 230 459 (168) 238
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Accrued expenses and other liabilities 583 809 820 338
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Accrued revenue share 52 186 (69) 138
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Deferred revenue (21) 39 (55) 42
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Net cash provided by operating activities 6,145 9,845 19,963 26,623
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Investing activities
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Purchases of property and equipment (2,383) (2,554) (7,848) (7,134)
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Proceeds from disposals of property and equipment 10 197 33 226
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Purchases of marketable securities (23,091) (25,371) (56,217) (70,959)
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Maturities and sales of marketable securities 19,274 16,590 46,860 54,379
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Purchases of non-marketable investments (322) (90) (1,771) (673)
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Cash collateral related to securities lending 572 (2,065) 488 (2,428)
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Investments in reverse repurchase agreements 225 500 475 450
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Acquisitions, net of cash acquired, and purchases of intangible assets (102) (252) (244) (324)
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Net cash used in investing activities (5,817) (13,045) (18,224) (26,463)
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Financing activities
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Net payments related to stock-based award activities (606) (815) (1,610) (2,425)
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Adjustment payment to Class C capital stockholders 0 0 (47) 0
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Repurchases of capital stock 0 0 0 (3,693)
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Proceeds from issuance of debt, net of costs 3,634 2,976 10,332 8,729
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Repayments of debt (3,637) (3,250) (10,341) (10,051)
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Net cash used in financing activities (609) (1,089) (1,666) (7,440)
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Effect of exchange rate changes on cash and cash equivalents (104) 68 (352) 137
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Net decrease in cash and cash equivalents (385) (4,221) (279) (7,143)
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Cash and cash equivalents at beginning of period 18,453 13,627 18,347 16,549
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Cash and cash equivalents at end of period $18,068 $9,406 $18,068 $9,406
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