SEC filings

Financial statements glossary

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

Google Segment

  • Includes our main products such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube. Our technical infrastructure and some newer efforts like virtual reality are also included in Google.
  • Google generates revenues primarily from advertising; sales of apps, in-app purchases, digital content products, and hardware; and licensing and service fees, including fees received for Google Cloud offerings.

Other Bets

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

Revenues and monetization

Advertising revenue: Google properties

  • Advertising revenues that are generated on Google search properties which includes revenues from traffic generated by search distribution partners who use Google.com as their default search in browsers, toolbars, etc.
  • Other Google owned and operated properties like Gmail, Google Maps, Google Play and YouTube

Advertising revenue: Google Network Members’ properties

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

Google Other revenues

  • Revenues from apps, in-app purchases, and digital content (such as movies or e-books) in the Google Play store. Revenues from app sales and in-app purchases are recorded on our income statement net of payout to the developer. Sales of certain digital content on the Play store are recorded on a gross basis.
  • Google Cloud offerings, which primarily includes Google Cloud Platform and G Suite
  • Hardware, including Chromecast, Daydream View VR headset, Google Home, Google Wifi, Pixel Buds, Pixel Clips, Pixel phones and PixelBook.
  • YouTube Red and YouTube TV subscription fees and Google Play Music
  • 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)
  • 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 AdMob, AdSense for Content and AdSense for Search
  • 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 search access points and services
  • Distribution partners include browser providers, mobile carriers, original equipment manufacturers, and software developers

TAC to Google Network Members

  • Amounts paid to Google Network Members primarily for ads displayed on their properties

Other cost of revenues

  • Amortization of certain intangible assets
  • Content acquisition costs primarily related to payments to content providers from whom we license 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
  • Expenses associated with our data center and other operations (including bandwidth, compensation expenses (including stock-based compensation), depreciation, energy, and other equipment costs)
  • Inventory related costs for hardware we sell

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 February 5, 2018, 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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