Financial statements glossary
A glossary of terms you’ll find on Alphabet financial statements.
- Includes our main internet products such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome, Google Play as well as hardware initiatives. 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, and digital content, service fees for cloud offerings, and sales of hardware products.
- 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, 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, and Google Play
- 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.)
- DoubleClick AdExchange and DoubleClick Bid Manager
Google Other revenues
- Revenues from Apps, in-app purchases, and digital content in the Google Play store. Revenues from app sales are recorded on our income statement net of payout to the developer.
- Google Cloud offerings, which includes G Suite and our Maps API
- 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 AdSense for Search, AdSense for Content and AdMob
- CPM-based ads, such as programmatic and reservation based ad buying, are not included in our reported Network paid clicks
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
- There are no YouTube related costs in TAC
TAC to Google Network Members
- Amounts paid 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 including SBC, 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
- 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 November 2017, and we undertake no duty to update this information unless required by law.