Google 2009 Annual Report Download - page 67

Quarterly Results of Operations
You should read the following tables presenting our quarterly results of operations in conjunction with the
consolidated financial statements and related notes contained elsewhere in this Annual Report on Form 10-K. We
have prepared the unaudited information on the same basis as our audited consolidated financial statements. You
should also keep in mind, as you read the following tables, that our operating results for any quarter are not
necessarily indicative of results for any future quarters or for a full year.
The following table presents our unaudited quarterly results of operations for the eight quarters ended
December 31, 2009. This table includes all adjustments, consisting only of normal recurring adjustments, that we
consider necessary for fair presentation of our financial position and operating results for the quarters presented.
Both seasonal fluctuations in internet usage and traditional retail seasonality have affected, and are likely to
continue to affect, our business. Internet usage generally slows during the summer months, and commercial
queries typically increase significantly in the fourth quarter of each year. These seasonal trends have caused and
will likely continue to cause, fluctuations in our quarterly results, including fluctuations in sequential revenue
growth rates.
Quarter Ended
Mar 31,
2008 Jun 30, 2008 Sep 30, 2008 Dec 31, 2008 Mar 31, 2009 Jun 30, 2009 Sep 30, 2009 Dec 31, 2009
(in millions, except per share amounts)
(unaudited)
Consolidated Statements of
Income Data:
Revenues ........................ $ 5,186.1 $5,367.2 $ 5,541.4 $ 5,700.9 $5,509.0 $ 5,522.9 $5,944.9 $6,673.8
Costs and expenses:
Cost of revenues ............. 2,110.5 2,147.6 2,173.4 2,190.0 2,101.5 2,108.0 2,226.2 2,408.4
Research and development . . . 673.1 682.2 704.6 733.3 641.6 707.6 757.5 736.2
Sales and marketing .......... 446.9 484.5 508.8 506.0 434.0 469.0 497.8 583.1
General and administrative .... 409.3 474.8 507.1 411.4 448.3 364.4 389.6 465.1
Total costs and expenses .......... 3,639.8 3,789.1 3,893.9 3,840.7 3,625.4 3,649.0 3,871.1 4,192.8
Income from operations ........... 1,546.3 1,578.1 1,647.5 1,860.2 1,883.6 1,873.9 2,073.8 2,481.0
Impairment of equity investments . . — — — (1,094.8) — — — —
Interest income and other, net ...... 167.3 57.9 21.2 69.9 6.2 (17.7) (7.2) 87.7
Income before income taxes ....... 1,713.6 1,636.0 1,668.7 835.3 1,889.8 1,856.2 2,066.6 2,568.7
Provision for income taxes ......... 406.5 388.5 378.8 452.9 467.0 371.6 427.6 594.6
Net income ...................... $ 1,307.1 $ 1,247.5 $ 1,289.9 $ 382.4 $ 1,422.8 $ 1,484.6 $ 1,639.0 $ 1,974.1
Net income per share of Class A and
Class B common stock:
Basic ....................... $ 4.17 $ 3.97 $ 4.10 $ 1.22 $ 4.51 $ 4.70 $ 5.18 $ 6.22
Diluted ...................... $ 4.12 $ 3.92 $ 4.06 $ 1.21 $ 4.49 $ 4.66 $ 5.13 $ 6.13
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