SEC filings

Financial statements glossary

A glossary of terms you’ll find on Alphabet financial statements.

Google Segment

  • Includes our main internet products such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, Google Play as well as hardware products we sell, such as the Pixel phone, Google Home, Chromecast and the Daydream View VR headset. Our technical infrastructure and some newer efforts like Virtual Reality are also included in Google.
  • Google generates revenues primarily from advertising, sales of digital content, apps and cloud offerings, and sales of hardware products.

Other Bets

  • Includes businesses such as Access/Google Fiber, Calico, CapitalG, GV, Nest, Verily, Waymo, X and other initiatives.
  • Revenues from the Other Bets are derived primarily through the sales of internet and TV services through Google Fiber, Nest hardware products and services, and licensing and R&D services through Verily.

Revenues and monetization

Advertising revenue: Google properties

  • AdWords revenue that is generated on Google.com. This includes revenue from traffic generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.
  • Advertising revenue generated on other Google owned and operated properties like Gmail, Maps, and Google Play
  • Advertising revenue generated on YouTube, including but not limited to, YouTube TrueView and Google Preferred

Advertising revenue: Google Network Members’ properties

  • AdSense (such as AdSense for Search, AdSense for Content, etc.)
  • AdMob
  • DoubleClick AdExchange

Google Other revenues

  • Sales of apps, digital content and in-app purchases in the Google Play store. Revenues from app sales are recorded on our income statement net of payout to the developer
  • Sales of hardware such as Pixel phones, Google Home, Chromecast, the Daydream View VR headset and Google Wifi
  • Licensing-related revenue, including the licensing of web search services where we help power organic searches on partners’ sites
  • Service fees received for our Google Cloud offerings, which includes G Suite and our Maps API
  • YouTube Red subscription fees and Google Play Music
  • Licensing of ITA software
  • Fees paid by merchants and customers of our Google Express service

Monetization: Paid clicks on Google properties

  • Clicks on ads by end users related to searches on Google.com
  • Clicks related to ads on other owned and operated properties including Gmail, Maps, and Google Play
  • Viewed YouTube engagement ads like TrueView (counted as an engagement when the user chooses NOT to skip the ad) and certain trial ad formats
  • CPM-based ads are not included in our reported properties paid clicks

Monetization: Paid clicks on Google Network Members' properties

  • Clicks by end users related to ads served on Google Network Members’ properties participating in our AdSense for Search, AdSense for Content and AdMob businesses
  • CPM-based ads, such as programmatic and reservation based ad buying, are not included in our reported Network paid clicks

Expenses

Traffic acquisition costs (TAC) paid to distribution partners

  • Amounts paid to make available our access points and services
  • Distribution partners include browser providers, mobile carriers, original equipment manufacturers, and software developers
  • YouTube partner payments are included in Other Cost of Revenue, not in TAC

TAC to Google Network Members

  • Revenue share payments we make to those parties that allow us to place ads on their properties

Other cost of revenues

  • The expenses associated with the operation of our data centers (including depreciation, labor, energy, bandwidth, and other equipment costs)
  • Content acquisition costs primarily related to payments to certain content providers from whom we license their video and other content for distribution on YouTube and Google Play (we pay fees to these content providers based on revenues generated or a flat fee)
  • Credit card and other transaction fees related to processing customer transactions
  • Stock-based compensation expense for employees working on activities and products related to Cost of Revenues
  • Inventory related costs for hardware we sell
  • Amortization of certain intangible assets

Other accounting items

We use primarily forwards to help protect and mitigate volatility in our earnings from foreign currency movements. Currency forwards are contracts to sell foreign currency at a specific exchange rate on a future date. Net spot-to-spot hedging gains or losses from using forwards are recognized in our revenue line. We also use options selectively.

Note: All information is as of March 2017, and we undertake no duty to update this information unless required by law.

Tax forms

Alphabet merger: Form 8937 (PDF)
Class C Adjustment Payment: Form 8937 (PDF)
Class C and Class A: Form 8937 (PDF)
2016 Alphabet for Google Bond Exchange: Form 8937 for 2021 Notes (PDF)
2016 Alphabet for Google Bond Exchange: Form 8937 for 2024 Notes (PDF)

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