Alphabet Inc
For the period ended Jun 30, 2024. Filed Jul 24, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 24, 2024
GOOGL$284.78+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-26.
0001652044-24-000053
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-24.
0001652044-24-000079
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 205 previous paragraphs and 214 current paragraphs.
154 unchanged; 44 reworded; 11 added; 7 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 14 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
◦other technical infrastructure operations costs, including bandwidth, energy, and equipment costs.
Current report
(2)For additional information on the calculation of diluted EPS, see Note 10 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Current report
•Cost of revenues was $35.5 billion, an increase of 11% year over year, primarily driven by increases in content acquisition costs, TAC, depreciation expense, digital services tax related to the recently enacted law in Canada, which is applied retroactively, and other technical infrastructure operations costs.
Current report
•Operating expenses were $21.8 billion, an increase of 5% year over year, primarily driven by increases in compensation expenses, depreciation expense, and third-party services fees. The increase in compensation expenses was largely due to an increase in SBC expenses, which primarily reflects the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period. These increases were partially offset by a reduction in charges related to legal matters.
Current report
•As of June 30, 2024, we had 179,582 employees.
Current report
Google Network revenues decreased $406 million from the three months ended June 30, 2023 to the three months ended June 30, 2024, primarily driven by a decrease in AdMob revenues. Additionally, Google Network revenues were adversely affected by changes in foreign currency exchange rates for the three months ended June 30, 2024.
Current report
The increase in other cost of revenues from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024 was primarily due to increases in content acquisition costs, largely for YouTube, depreciation expense, digital services tax related to the recently enacted law in Canada, which is applied retroactively, and other technical infrastructure operations costs. Additionally, an increase in third-party service fees contributed to the increase in other cost of revenues from the six months ended June 30, 2023 to the six months ended June 30, 2024.
Current report
R&D expenses increased $1.3 billion from the three months ended June 30, 2023 to the three months ended June 30, 2024, primarily driven by increases in compensation expenses of $585 million, depreciation expense of $331 million, and third-party services fees of $219 million. The increase in compensation expenses was largely due to an increase in SBC expenses of $471 million, which primarily reflects the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period.
Current report
Sales and marketing expenses increased $11 million from the three months ended June 30, 2023 to the three months ended June 30, 2024, and decreased $96 million from the six months ended June 30, 2023 to the six months ended June 30, 2024, due to a combination of factors, none of which were individually significant.
Current report
Other Bets operating loss increased $321 million and $116 million from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The increase in operating loss was primarily due to an increase in compensation expenses as a result of the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period. Additionally, growth in revenues partially offset the increase in operating loss from the six months ended June 30, 2023 to the six months ended June 30, 2024.
Current report
OI&E increased $61 million from the three months ended June 30, 2023 to the three months ended June 30, 2024. Net unrealized losses in marketable equity securities reflecting market driven changes were offset by a decrease in unrealized losses on non-marketable equity securities from fair value adjustments related to observable transactions and increased interest income related to higher interest rates.
Removed paragraphs (7)
Previous report
•Cost of revenues was $33.7 billion, an increase of 10% year over year, primarily driven by increases in TAC, content acquisition costs, and depreciation expense. These increases were partially offset by decreases in compensation expenses, largely the result of a reduction in employee severance and related charges, and charges related to our office space optimization efforts.
Previous report
•Operating expenses were $21.4 billion, a decrease of 2% year over year, primarily driven by decreases in charges related to our office space optimization efforts, compensation expenses, largely the result of a reduction in employee severance and related charges, and charges related to legal matters. These decreases were partially offset by an increase in depreciation expense.
Previous report
•Compensation expenses included employee severance and related charges for the three months ended March 31, 2024 of $716 million, a $1.3 billion decrease in severance and related charges as compared to the three months ended March 31, 2023. For the first quarter of 2024, these charges are included within cost of revenues, research and development, sales and marketing, and general and administrative expenses in the amounts of $153 million, $247 million, $217 million, and $99 million, respectively.
Previous report
•As of March 31, 2024, we had 180,895 employees.
Previous report
The increase in other cost of revenues from the three months ended March 31, 2023 to the three months ended March 31, 2024 was primarily due to increases in content acquisition costs, largely for YouTube, and depreciation expense. These increases were partially offset by decreases in compensation expenses, largely the result of a reduction in employee severance and related charges of $308 million, and charges related to our office space optimization efforts of $220 million.
Previous report
Sales and marketing expenses decreased $107 million from the three months ended March 31, 2023 to the three months ended March 31, 2024, primarily driven by a decrease in compensation expenses of $85 million, largely the result of a reduction in employee severance and related charges of $228 million, partially offset by a combination of factors, none of which were individually significant.
Previous report
Other Bets operating loss decreased $205 million from the three months ended March 31, 2023 to the three months ended March 31, 2024 primarily due to growth in revenues.
Reworded paragraphs (44)
Previous wording
Please read the following discussion and analysis of our financial condition and results of operations together with "Note About Forward-Looking Statements" and our consolidated financial statements and related notes included under Item 1 of this Quarterly Report on Form 10-Q as well as our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including Part I, Item 1A "Risk Factors," as updated in this Quarterly Report on Form 10-Q.
Current wording
Please read the following discussion and analysis of our financial condition and results of operations together with "Note About Forward-Looking Statements" and our consolidated financial statements and related notes included under Item 1 of this Quarterly Report on Form 10-Q as well as our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including Part I, Item 1A "Risk Factors," as updated in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and in this Quarterly Report on Form 10-Q.
Previous wording
◦compensation expense related to our data centers and other operations such as content review and customer and product support;
Current wording
◦compensation expense related to our technical infrastructure and other operations such as content review and customer and product support;
Previous wording
◦depreciation expense related to our technical infrastructure; and
Current wording
◦depreciation expense related to our technical infrastructure;
Previous wording
◦inventory and other costs related to the devices we sell.
Current wording
◦inventory and other costs related to the devices we sell; and
Previous wording
•Revenues were $80.5 billion, an increase of 15% year over year, primarily driven by an increase in Google Services revenues of $8.4 billion, or 14%, and an increase in Google Cloud revenues of $2.1 billion, or 28%.
Current wording
•Revenues were $84.7 billion, an increase of 14% year over year, primarily driven by an increase in Google Services revenues of $7.6 billion, or 12%, and an increase in Google Cloud revenues of $2.3 billion, or 29%.
Previous wording
•Total constant currency revenues, which exclude the effect of hedging, increased 16% year over year.
Current wording
•Total constant currency revenues, which exclude the effect of hedging, increased 15% year over year.
Previous wording
•On April 25, 2024, the Board of Directors of Alphabet approved the initiation of a cash dividend program, and declared a cash dividend of $0.20 per share that will be paid on June 17, 2024, to stockholders of record as of June 10, 2024, on each of the company’s Class A, Class B, and Class C shares. See Note 9 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-Q for additional information.
Current wording
•Dividend payments to stockholders of Class A, Class B, and Class C shares were $1.2 billion, $173 million, and $1.1 billion, respectively, totaling $2.5 billion for the three months ended June 30, 2024. On July 23, 2024, Alphabet announced a cash dividend of $0.20 per share that will be paid on September 16, 2024, to stockholders of record as of September 9, 2024, on each of the company’s Class A, Class B, and Class C shares. For additional information, see Note 9 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
•Repurchases of Class A and Class C shares were $3.4 billion and $12.7 billion, respectively, totaling $16.1 billion for the three months ended March 31, 2024. In April 2024, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion of its Class A and Class C shares. For additional information, see Note 9 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q for additional information.
Current wording
•Repurchases of Class A and Class C shares were $3.3 billion and $12.3 billion, respectively, totaling $15.6 billion for the three months ended June 30, 2024. For additional information, see Note 9 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
•Operating cash flow was $28.8 billion for the three months ended March 31, 2024.
Current wording
•Operating cash flow was $26.6 billion for the three months ended June 30, 2024.
Previous wording
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $12.0 billion for the three months ended March 31, 2024.
Current wording
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $13.2 billion for the three months ended June 30, 2024.
Previous wording
Google Search & other revenues increased $5.8 billion from the three months ended March 31, 2023 to the three months ended March 31, 2024. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Current wording
Google Search & other revenues increased $5.9 billion and $11.7 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The overall growth was driven by interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile devices; growth in advertiser spending; and improvements we have made in ad formats and delivery.
Previous wording
YouTube ads revenues increased $1.4 billion from the three months ended March 31, 2023 to the three months ended March 31, 2024. The growth was driven by our direct response and brand advertising products, both of which benefited from increased spending by our advertisers.
Current wording
YouTube ads revenues increased $998 million and $2.4 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The growth was driven by our brand advertising products followed by our direct response advertising products, both of which benefited from increased spending by our advertisers.
Previous wording
Google Network revenues decreased $83 million from the three months ended March 31, 2023 to the three months ended March 31, 2024 primarily driven by a decrease in AdSense revenues.
Current wording
Google Network revenues decreased $489 million from the six months ended June 30, 2023 to the six months ended June 30, 2024 primarily driven by a decrease in AdSense revenues. Additionally, Google Network revenues were adversely affected by changes in foreign currency exchange rates for the six months ended June 30, 2024.
Previous wording
The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from three months ended March 31, 2023 to three months ended March 31, 2024:
Current wording
The following table presents changes in monetization metrics for Google Search & other revenues (paid clicks and cost-per-click) and Google Network revenues (impressions and cost-per-impression), expressed as a percentage, from three and six months ended June 30, 2023 to three and six months ended June 30, 2024:
Previous wording
Google subscriptions, platforms, and devices revenues increased $1.3 billion from the three months ended March 31, 2023 to the three months ended March 31, 2024, primarily driven by an increase in subscription revenues, largely from growth in the number of paid subscribers for YouTube services.
Current wording
Google subscriptions, platforms, and devices revenues increased $1.2 billion and $2.5 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The growth was primarily driven by an increase in subscription revenues, largely from growth in the number of paid subscribers for YouTube services.
Previous wording
Google Cloud revenues increased $2.1 billion from the three months ended March 31, 2023 to the three months ended March 31, 2024. Growth was primarily driven by Google Cloud Platform followed by Google Workspace offerings. Google Cloud's infrastructure and platform services were the largest drivers of growth in Google Cloud Platform.
Current wording
Google Cloud revenues increased $2.3 billion and $4.4 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The growth was primarily driven by Google Cloud Platform followed by Google Workspace offerings. Google Cloud's infrastructure and platform services were the largest drivers of growth in Google Cloud Platform.
Previous wording
(1)Total constant currency revenues of $80.9 billion for the three months ended March 31, 2024 increased $11.2 billion compared to $69.7 billion in revenues, excluding hedging effect, for the three months ended March 31, 2023.
Current wording
(1)Total constant currency revenues of $85.9 billion for the three months ended June 30, 2024 increased $11.3 billion compared to $74.6 billion in revenues, excluding hedging effect, for the three months ended June 30, 2023.
Previous wording
EMEA revenue growth was favorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar weakening relative to the Euro, partially offset by the U.S. dollar strengthening relative to the Turkish lira.
Current wording
EMEA revenue growth was not materially affected by changes in foreign currency exchange rates, as the effect of the U.S. dollar strengthening relative to the Turkish lira was largely offset by the U.S. dollar weakening relative to the British pound and the Euro.
Previous wording
Cost of revenues increased $3.1 billion from the three months ended March 31, 2023 to the three months ended March 31, 2024 due to an increase in other cost of revenues and TAC of $1.9 billion and $1.2 billion, respectively.
Current wording
Cost of revenues increased $3.6 billion from the three months ended June 30, 2023 to the three months ended June 30, 2024 due to an increase in other cost of revenues and TAC of $2.7 billion and $850 million, respectively. Cost of revenues increased $6.7 billion from the six months ended June 30, 2023 to the six months ended June 30, 2024 due to an increase in other cost of revenues and TAC of $4.6 billion and $2.1 billion, respectively.
Previous wording
The increase in TAC from the three months ended March 31, 2023 to the three months ended March 31, 2024 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 21.5% to 21.0% from the three months ended March 31, 2023 to the three months ended March 31, 2024 primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The TAC rate on Google Search & other revenues was substantially consistent from the three months ended March 31, 2023 to the three months ended March 31, 2024. The TAC rate on Google Network revenues reflected a slight increase from the three months ended March 31, 2023 to the three months ended March 31, 2024 due to a combination of factors, none of which were individually significant.
Current wording
The increase in TAC from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024 was largely due to an increase in TAC paid to distribution partners, primarily driven by growth in revenues subject to TAC. The TAC rate decreased from 21.6% to 20.7% from the three months ended June 30, 2023 to the three months ended June 30, 2024 and decreased from 21.5% to 20.9% from the six months ended June 30, 2023 to the six months ended June 30, 2024, primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The TAC rate on Google Search & other revenues was substantially consistent from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024. The TAC rate on Google Network revenues was substantially consistent from the three months ended June 30, 2023 to the three months ended June 30, 2024 and reflected a slight increase from the six months ended June 30, 2023 to the six months ended June 30, 2024 due to a combination of factors, none of which were individually significant.
Previous wording
R&D expenses increased $435 million from the three months ended March 31, 2023 to the three months ended March 31, 2024, primarily driven by increases in depreciation expense of $308 million and third-party services fees of $253 million, partially offset by a decrease in charges associated with our office space optimization efforts of $247 million. Additionally, a decrease in compensation expenses of $64 million was primarily the result of a reduction in employee severance and related charges of $588 million. This decrease was partially offset by an increase in SBC expense of $320 million, excluding employee severance and related charges.
Current wording
R&D expenses increased $1.7 billion from the six months ended June 30, 2023 to the six months ended June 30, 2024, primarily driven by increases in depreciation expense of $640 million, compensation expenses of $522 million, and third-party services fees of $472 million. The increase in compensation expenses was primarily related to an increase in SBC expenses of $790 million, excluding employee severance and related charges, and reflects the reduction in valuation-based compensation liabilities related to certain Other Bets recognized in the prior year comparable period. The increase in compensation expenses is partially offset by a reduction in employee severance and related charges of $569 million.
Previous wording
General and administrative expenses decreased $733 million from the three months ended March 31, 2023 to the three months ended March 31, 2024, primarily driven by a reduction in charges related to legal matters of $248 million and a combination of factors, none of which were individually significant.
Current wording
General and administrative expenses decreased $323 million and $1.1 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, primarily driven by a reduction in charges related to legal matters of $471 million and $718 million, respectively, as well as a combination of factors, none of which were individually significant.
Previous wording
(1)In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $84 million and $72 million for the three months ended March 31, 2023 and 2024, respectively. For thethree months ended March 31, 2023 and 2024, Alphabet-level activities included substantially all of the charges related to employee severance and our office space optimization efforts. For additional information relating to our segments, see Note 13 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Current wording
(1)In addition to the costs included in Alphabet-level activities, hedging gains (losses) related to revenue were $3 million and $102 million for the three months ended June 30, 2023 and 2024, respectively, and $87 million and $174 million for the six months ended June 30, 2023 and 2024, respectively. For the three and six months ended June 30, 2023 and 2024, Alphabet-level activities included substantially all of the charges related to employee severance and our office space optimization efforts. For additional information relating to our segments, see Note 13 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
Google Services operating income increased $6.2 billion from the three months ended March 31, 2023 to the three months ended March 31, 2024. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in TAC and content acquisition costs. Additionally, a reduction in compensation expenses contributed to the increase in operating income.
Current wording
Google Services operating income increased $6.2 billion from the three months ended June 30, 2023 to the three months ended June 30, 2024. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in content acquisition costs and TAC. Additionally, a reduction in compensation expenses contributed to the increase in operating income.
Previous wording
Google Cloud operating income increased $709 million from the three months ended March 31, 2023 to the three months ended March 31, 2024. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in compensation expenses, largely driven by headcount growth, and usage costs for technical infrastructure assets.
Current wording
Google Cloud operating income increased $777 million and $1.5 billion from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, respectively. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in usage costs for technical infrastructure assets as well as compensation expenses, largely driven by headcount growth.
Previous wording
OI&E increased $2.1 billion from the three months ended March 31, 2023 to the three months ended March 31, 2024. The increase was primarily due to net unrealized gains in non-marketable equity securities due to fair value adjustments related to observable transactions and increased interest income due to interest rates.
Current wording
OI&E increased $2.1 billion from the six months ended June 30, 2023 to the six months ended June 30, 2024. The increase was primarily due to an increase in net unrealized gains on non-marketable equity securities driven by fair value adjustments related to observable transactions and increased interest income related to higher interest rates. The increases were partially offset by net unrealized losses in marketable equity securities reflecting market driven changes.
Previous wording
The effective tax rate decreased from the three months ended March 31, 2023 to the three months ended March 31, 2024, primarily due to the tax rule change related to U.S. federal foreign tax credits issued by the IRS in July 2023 and an increase in stock-based compensation-related tax benefits, partially offset by a decrease in the U.S. federal Foreign Derived Intangible Income tax deduction and an increase in taxes for certain U.S. jurisdictions.
Current wording
The effective tax rate decreased from the three and six months ended June 30, 2023 to the three and six months ended June 30, 2024, primarily due to the tax rule change related to U.S. federal foreign tax credits issued by the IRS in July 2023, an increase in stock-based compensation-related tax benefits, partially offset by a decrease in the U.S. federal Foreign Derived Intangible Income tax deduction.
Previous wording
As of March 31, 2024, we had $108.1 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.
Current wording
As of June 30, 2024, we had$100.7 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.
Previous wording
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other properties, Google Network properties, and YouTube properties. In Google Services, we also generate cash through consumer subscriptions and the sale of apps and in-app purchases and devices. In Google Cloud, we generate cash through consumption-based fees and subscriptions for infrastructure, platform, collaboration tools, and other cloud services.
Current wording
Our largest source of cash provided by operations are advertising revenues generated by Google Search & other properties, Google Network properties, and YouTube properties. In Google Services, we also generate cash through consumer subscriptions, the sale of apps and in-app purchases, and devices. In Google Cloud, we generate cash through consumption-based fees and subscriptions for infrastructure, platform, collaboration tools, and other cloud services.
Previous wording
Net cash provided by operating activities increased from the three months ended March 31, 2023 to the three months ended March 31, 2024 due to the increase in cash received from customers, partially offset by an increase in cash payments for cost of revenues and operating expenses.
Current wording
Net cash provided by operating activities increased from the six months ended June 30, 2023 to the six months ended June 30, 2024 due to an increase in cash received from customers, partially offset by an increase in tax payments. The increase in tax payments in comparison to the prior year comparable period was primarily due to the 2023 IRS payment deferral relief made available to taxpayers headquartered in designated counties in California.
Previous wording
Net cash used in investing activities increased from the three months ended March 31, 2023 to the three months ended March 31, 2024 primarily due to an increase in purchases of property and equipment.
Current wording
Net cash used in investing activities decreased from the six months ended June 30, 2023 to the six months ended June 30, 2024 primarily due to an increase in maturities and sales of marketable securities, partially offset by increases in purchases of property and equipment and purchases of marketable securities.
Previous wording
Net cash used in financing activities increased from the three months ended March 31, 2023 to the three months ended March 31, 2024 due to increases in net repayments related to debt, net payments related to stock-based award activities, and repurchases of stock.
Current wording
Net cash used in financing activities increased from the six months ended June 30, 2023 to the six months ended June 30, 2024 due to dividend payments, increases in repurchases of stock, and net payments related to stock-based award activities.
Previous wording
We expect existing cash, cash equivalents, short-term marketable securities, cash flows from operations and financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing activities for at least the next 12 months and thereafter for the foreseeable future.
Current wording
We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing activities for at least the next 12 months, and thereafter for the foreseeable future.
Previous wording
During the three months ended March 31, 2023 and 2024, we spent $6.3 billion and $12.0 billion on capital expenditures, respectively. We expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support of AI products and services. Depreciation of our property and equipment commences when the deployment of such assets are completed and are ready for our intended use. Land is not depreciated. For the three months ended March 31, 2023 and 2024, our depreciation on property and equipment was $2.6 billion and $3.4 billion, respectively.
Current wording
During the six months ended June 30, 2023 and 2024, we spent $13.2 billion and $25.2 billion on capital expenditures, respectively. We expect to increase, relative to 2023, our investment in our technical infrastructure, including servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support of AI products and services. Depreciation of our property and equipment commences when the deployment of such assets are completed and are ready for our intended use. Land is not depreciated. For the six months ended June 30, 2023 and 2024, our depreciation on property and equipment was $5.5 billion and $7.1 billion, respectively.
Previous wording
For the three months ended March 31, 2023 and 2024, we recognized total operating lease assets of $1.1 billion and $0.4 billion, respectively. As of March 31, 2024, the amount of total future lease payments under operating leases, which had a weighted average remaining lease term of 8 years, was$17.2 billion.
Current wording
For the six months ended June 30, 2023 and 2024, we recognized total operating lease assets of $1.7 billion and $897 million, respectively. As of June 30, 2024, the amount of total future lease payments under operating leases, which had a weighted average remaining lease term of 7.9 years, was $16.9 billion.
Previous wording
As of March 31, 2024, we have entered into leases that have not yet commenced with future lease payments of $3.6 billion, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2024 and 2026 with non-cancelable lease terms ofone to 25 years.
Current wording
As of June 30, 2024, we have entered into leases that have not yet commenced with future lease payments of $5.2 billion, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2024 and 2027 with non-cancelable lease terms of one to 25 years.
Previous wording
For the three months ended March 31, 2023 and 2024, our operating lease expenses (including variable lease costs) were $1.1 billion and $1.1 billion, respectively. Finance lease costs were not material for the three months ended March 31, 2023 and 2024.
Current wording
For the six months ended June 30, 2023 and 2024, our operating lease expenses (including variable lease costs) were $2.2 billion and $2.3 billion, respectively. Finance lease costs were not material for the six months ended June 30, 2023 and 2024.
Previous wording
As of March 31, 2024, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2024 and $6.0 billion expiring in April 2028. In April 2024, we entered into a new $4.0 billion revolving credit facility expiring in April 2025. The interest rates for all credit facilities are determined based on a formula using certain market rates, as well as our progress toward the achievement of certain sustainability goals. No amounts have been borrowed under the credit facilities.
Current wording
As of June 30, 2024, we had $10.0 billion of revolving credit facilities, $4.0 billion expiring in April 2025 and $6.0 billion expiring in April 2028. The interest rates for all credit facilities are determined based on a formula using certain market rates, as well as our progress toward the achievement of certain sustainability goals. No amounts have been borrowed under the credit facilities.
Previous wording
During the three months ended March 31, 2024, we repurchased and subsequently retired 111 million shares for $16.1 billion.
Current wording
During the three and six months ended June 30, 2024, we repurchased and subsequently retired 92 million and 203 million shares for $15.6 billion and $31.7 billion, respectively.
Previous wording
In April 2023, the Board of Directors of Alphabet authorized the company to repurchase up to $70.0 billion of its Class A and Class C shares. As of March 31, 2024, $20.4 billion remained available for Class A and Class C share repurchases. In April 2024, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion of its Class A and Class C shares.
Current wording
In April 2023, the Board of Directors of Alphabet authorized the company to repurchase up to $70.0 billion of its Class A and Class C shares. In April 2024, the Board of Directors of Alphabet authorized the company to repurchase up to an additional $70.0 billion of its Class A and Class C shares. As of June 30, 2024, $74.9 billion remained available for Class A and Class C share repurchases.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
EMEA revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Turkish lira.
Current report — wording carried from elsewhere
(1)Total constant currency revenues of $166.8 billion for the six months ended June 30, 2024 increased $22.5 billion compared to $144.4 billion in revenues, excluding hedging effect, for the six months ended June 30, 2023.
Current report — wording carried from elsewhere
APAC revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Japanese yen.
Current report — wording carried from elsewhere
Other Americas revenue growth was unfavorably affected by changes in foreign currency exchange rates, primarily due to the U.S. dollar strengthening relative to the Argentine peso.
Current report — wording carried from elsewhere
Google Services operating income increased $12.4 billion from the six months ended June 30, 2023 to the six months ended June 30, 2024. The increase in operating income was primarily driven by an increase in revenues, partially offset by increases in TAC and content acquisition costs. Additionally, a reduction in compensation expenses contributed to the increase in operating income.