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low-quality, deceptive, or harmful content.
•Consumer  protection : Consumer protection laws, including the EU’s New Deal for Consumers, which could 
result in monetary penalties and create a range of new compliance obligations.
In addition, the applicability and scope of these and other laws and regulations, as interpreted by courts , 
regulators, or administrative bodies, remain uncertain and could be interpreted in ways that harm our business. For 
example, we rely on statutory safe harbors, like those set forth in the Digital Millennium Copyright Act and Section 230 
of the Communications Decency Act in the U.S. and the E-Commerce Directive in Europe, to protect against liability for 
various linking, caching, ranking, recommending, and hosting activities. Legislation or court rulings affecting these safe 
harbors may adversely affect us and may impose significant operational challenges. There are legislative proposals 
and pending litigation in the U.S., EU, and around the world that could diminish or eliminate safe harbor protection for 
websites and online platforms. Our development, use, and commercialization of AI products and services (including 
our implementation of AI in our offerings and internal systems) could subject us to regulatory action and legal liability, 
including under specific legislation regulating AI, as well as new applications of existing data protection, cybersecurity, 
privacy, intellectual property, and other laws.
We are and may continue to be subject to claims, lawsuits, regulatory and government investigations, 
enforcement actions, consent orders, and other forms of regulatory scrutiny and legal liability that could harm 
our business, reputation, financial condition, and operating results.
We are subject to claims, lawsuits, regulatory and government investigations, other proceedings, and orders 
involving competition, intellectual property, data privacy and security, tax and related compliance, labor and 
employment, commercial disputes, content generated by our users, goods and services offered by advertisers or 
publishers using our platforms, personal injury, and other matters. We  are also  subject to a variety of claims including 
product warranty, product liability, and consumer protection claims related to product defects, among other litigation, 
and we may also be subject to claims involving health and safety, hazardous materials usage, other environmental 
effects, AI training, development, and commercialization , or service disruptions or failures. Claims have been brought,


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and we expect will continue to be brought, against us for defamation, negligence, breaches of contract, copyright and 
trademark infringement, unfair competition, unlawful activity, torts, privacy rights violations, fraud, or other legal 
theories based on the nature and content of information available on or via our services, the design and effect of our 
products and services, or due to our involvement in hosting, transmitting, marketing, branding, or providing access to 
content created by third parties. Table of Contents Alphabet Inc.
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For example, in December 2023, a California jury delivered a verdict in Epic Games v. Google  finding that Google 
violated antitrust laws related to Google Play's billing practices. The presiding judge will determine remedies in 2024 
and the range of potential remedies vary widely. We plan to appeal. In addition, the U.S. Department of Justice, 
various U.S. states, and other plaintiffs have filed several antitrust lawsuits about various aspects of our business, 
including our advertising technologies and practices, the operation and distribution of Google Search, and the 
operation and distribution of the Android operating system and Play Store. Other regulatory agencies in the U.S. and 
around the world, including competition enforcers, consumer protection agencies, and data protection authorities, have 
challenged and may continue to challenge our business practices and compliance with laws and regulations. We are 
cooperating with these investigations and defending litigation  or appealing decisions where appropriate.  
Various laws, regulations, investigations, enforcement lawsuits, and regulatory actions have  involved in the past , 
and may in the future result in substantial fines and penalties, injunctive relief, ongoing monitoring and auditing 
obligations, changes to our products and services, alterations to our business models and operations , including 
divestiture , and collateral related civil litigation or other adverse consequences, all of which could harm our business, 
reputation, financial condition, and operating results. 
Any of these legal proceedings could result in legal costs, diversion of management resources, negative publicity 
and other harms to our business. Estimating liabilities for our pending proceedings is a complex, fact-specific , and 
speculative process that requires significant judgment, and the amounts we are ultimately liable for may be less than or 
exceed our estimates. The resolution of one or more such proceedings has resulted in, and may in the future result in, 
additional substantial fines, penalties, injunctions, and other sanctions that could harm our business, reputation, 
financial condition, and operating results. 
For additional information about the ongoing material legal proceedings to which we are subject, see Legal 
Proceedings in Part I, Item 3 of this Annual Report on Form 10-K.
Privacy, data protection, and data usage regulations are complex and rapidly evolving areas. Any failure


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or alleged failure to comply with these laws could harm our business, reputation, financial condition, and 
operating results. 
Authorities around the world have adopted and are considering a number of legislative and regulatory proposals 
concerning data protection, data usage, and encryption of user data. Adverse legal rulings, legislation, or regulation 
have resulted in, and may continue to result in, fines and orders requiring that we change our practices, which have 
had and could continue to have an adverse effect on how we provide services, harming our business, reputation, 
financial condition, and operating results. These laws and regulations are evolving and subject to interpretation, and 
compliance obligations could cause us to incur substantial costs or harm the quality and operations of our products 
and services in ways that harm our business.  Examples of these laws include : 
•The General Data Protection Regulation and the United Kingdom General Data Protection Regulations, which 
apply to all of our activities conducted from an establishment in the EU or the United Kingdom, respectively, or 
related to products and services that we offer to EU or the United Kingdom users or customers, respectively, or 
the monitoring of their behavior in the EU or the UK, respectively.
•Various comprehensive U.S. state and foreign privacy laws, which give new data privacy rights to their 
respective residents (including, in California, a private right of action in the event of a data breach resulting 
from our failure to implement and maintain reasonable security procedures and practices) and impose 
significant obligations on controllers and processors of consumer data.
•State laws governing the processing of biometric information, such as the Illinois Biometric Information Privacy 
Act and the Texas Capture or Use of Biometric Identifier Act, which impose obligations on businesses that 
collect or disclose consumer biometric information. 
•Various federal, state, and foreign laws governing how companies provide age appropriate experiences to 
children and minors, including the collection and processing of children and minor’s data. These include the 
Children’s Online Privacy Protection Act of 1998, and the United Kingdom Age-Appropriate Design Code, all of 
which address the use and disclosure of the personal data of children and minors and impose obligations on 
online services or products directed to or likely to be accessed by children. 
•The California Internet of Things Security Law, which regulates the security of data used in connection with 
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internet-connected devices.
•The EU’s Digital Markets Act, which will require in-scope companies to obtain user consent for combining data 
across certain products and require search engines to share anonymized data with rival companies, among 
other changes. Table of Contents Alphabet Inc.
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Further, we are subject to evolving laws and regulations that dictate whether, how, and under what circumstances 
we can transfer, process and/or receive personal data, as well as ongoing enforcement actions from supervisory 
authorities related to cross-border transfers of personal data.  The validity of various data transfer mechanisms  we 
currently rely upon remains subject to legal, regulatory, and political developments in both Europe and the U.S., which 
may require us to adapt our existing arrangements.
We face, and may continue to face, intellectual property and other claims that could be costly to defend, 
result in significant damage awards or other costs (including indemnification awards), and limit our ability to 
use certain technologies. 
We, like other internet, technology, and media companies, are frequently subject to litigation based on allegations 
of infringement or other violations of intellectual property rights, including patent, copyright, trade secrets, and 
trademarks. Parties have also sought broad injunctive relief against us by filing claims in U.S. and international courts 
and the U.S. International Trade Commission (ITC) for exclusion and cease-and-desist orders. In addition, patent-
holding companies may frequently seek to generate income from patents they have obtained by bringing claims 
against us. As we continue to expand our business, the number of intellectual property claims against us has increased 
and may continue to increase as we develop and acquire new products, services, and technologies. 
Adverse results in any of these lawsuits may include awards of monetary damages, costly royalty or licensing 
agreements (if licenses are available at all), or orders limiting our ability to sell our products and services in the U.S. or 
elsewhere, including by preventing us from offering certain features, functionalities, products, or services in certain 
jurisdictions. They may also cause us to change our business practices in ways that could result in a loss of revenues 
for us and otherwise harm our business. 
Many of our agreements with our customers and partners, including certain suppliers, require us to defend 
against certain intellectual property infringement claims and in some cases indemnify them for certain intellectual 
property infringement claims against them, which could result in increased costs for defending such claims or 
significant damages if there were an adverse ruling in any such claims. Such customers and partners may also


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discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could 
result in loss of revenues and harm our business. Moreover, intellectual property indemnities provided to us by our 
suppliers, when obtainable, may not cover all damages and losses suffered by us and our customers arising from 
intellectual property infringement claims. Furthermore, in connection with our divestitures, we have agreed, and may in 
the future agree, to provide indemnification for certain potential liabilities, including those associated with intellectual 
property claims. Regardless of their merits, intellectual property claims are often time consuming and expensive to 
litigate or settle. To the extent such claims are successful, they could harm our business, including our product and 
service offerings, financial condition, and operating results. 
Expectations relating to ESG considerations could expose us to potential liabilities, increased costs, and 
reputational harm. 
We are subject to laws, regulations, and other measures that govern a wide range of topics, including those 
related to matters beyond our core products and services. For instance, new laws, regulations, policies, and 
international accords relating to ESG matters, including sustainability, climate change,  human capital, and diversity, are 
being developed and formalized in Europe, the U.S., and elsewhere, which may entail specific, target-driven 
frameworks and/or disclosure requirements. We have implemented robust ESG programs, adopted reporting 
frameworks and principles, and announced a number of goals and initiatives. The implementation of these goals and 
initiatives may require considerable investments, and our goals, with all of their contingencies, dependencies, and in 
certain cases, reliance on third-party verification and/or performance, are complex and ambitious,  and may change. 
We cannot guarantee that our goals and initiatives will be fully realized on the timelines we expect or at all, and 
projects that are completed as planned may not achieve the results we anticipate . Any failure, or perceived failure, by 
us to adhere to our public statements, comply fully with developing interpretations of ESG laws and regulations, or 
meet evolving and varied stakeholder expectations and standards could harm our business, reputation, financial 
condition, and operating results.
We could be subject to changes in tax rates, the adoption of new U.S. or international tax legislation, or


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exposure to additional tax liabilities. 
We are subject to a variety of taxes and tax collection obligations in the U.S. and numerous foreign jurisdictions. 
Our effective tax rates are affected by a variety of factors, including changes in the mix of earnings in jurisdictions with 
different statutory tax rates, net gains and losses on hedges and related transactions under our foreign exchange risk 
management program, changes in our stock price for shares issued as employee compensation, changes in the 
valuation of our deferred tax assets or liabilities, and the application of different provisions of tax laws or changes in tax 
laws, regulations, or accounting principles (including changes in the interpretation of existing laws). Further, if we are Table of Contents Alphabet Inc.
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unable or fail to collect taxes on behalf of customers, employees and partners as the withholding agent, we could 
become liable for taxes that are levied against third parties. 
We are subject to regular review and audit by both domestic and foreign tax authorities. As a result, we have 
received, and may in the future receive, assessments in multiple jurisdictions, on various tax-related assertions, such 
as transfer-pricing adjustments or permanent-establishment claims. Any adverse outcome of such a review or audit 
could harm our financial condition and operating results, require adverse changes to our business practices, or subject 
us to additional litigation and regulatory inquiries. In addition, the determination of our worldwide provision for income 
taxes and other tax liabilities requires significant judgment and often involves uncertainty. Although we believe our 
estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements 
and may affect our financial results in the period or periods for which such determination is made. 
Furthermore, due to shifting economic and political conditions, tax policies, laws, or rates in various jurisdictions 
may be subject to significant changes in ways that could harm our financial condition and operating results. For 
example, various jurisdictions around the world have enacted or are considering revenue-based taxes such as digital 
services taxes and other targeted taxes, which could lead to inconsistent and potentially overlapping international tax 
regimes. The Organization for Economic Cooperation and Development (OECD) is coordinating negotiations among 
more than  140 countries with the goal of achieving consensus around substantial changes to international tax policies, 
including the implementation of a minimum global effective tax rate of 15%. O ur effective tax rate and cash tax 
payments could increase in future years as a result of these changes.
Risks Related to Ownership of our Stock 
We cannot guarantee that any share repurchase program will be fully consummated or will enhance long-
term stockholder value, and share repurchases could increase the volatility of our stock prices and could 
diminish our cash reserves. 
We engage in share repurchases of our Class A and Class C stock from time to time in accordance with 
authorizations from the Board of Directors of Alphabet. Our repurchase program does not have an expiration date and 
does not obligate Alphabet to repurchase any specific dollar amount or to acquire any specific number of shares.


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Further, our share repurchases could affect our share trading prices, increase their volatility, reduce our cash reserves 
and may be suspended or terminated at any time, which may result in a decrease in the trading prices of our stock. 
The concentration of our stock ownership limits our stockholders’ ability to influence corporate matters. 
Our Class B stock has 10 votes per share, our Class A stock has one vote per share, and our Class C stock has 
no voting rights. As of December 31, 2023, Larry Page and Sergey Brin beneficially owned approximately 86.5% of our 
outstanding Class B stock, which represented approximately  51.5%  of the voting power of our outstanding common 
stock. Through their stock ownership, Larry and Sergey have significant influence over all matters requiring 
stockholder approval, including the election of directors and significant corporate transactions, such as a merger or 
other sale of our company or our assets, for the foreseeable future. In addition, because our Class C stock carries no 
voting rights (except as required by applicable law), the issuance of the Class C stock, including in future stock-based 
acquisition transactions and to fund employee equity incentive programs, could continue Larry and Sergey’s current 
relative voting power and their ability to elect all of our directors and to determine the outcome of most matters 
submitted to a vote of our stockholders. The share repurchases made pursuant to our repurchase program may also 
affect Larry and Sergey’s relative voting power. This concentrated control limits or severely restricts other stockholders’ 
ability to influence corporate matters and we may take actions that some of our stockholders do not view as beneficial, 
which could reduce the market price of our Class A stock and our Class C stock. 
Provisions in our charter documents and under Delaware law could discourage a takeover that 
stockholders may consider favorable. 
Provisions in Alphabet’s certificate of incorporation and bylaws may have the effect of delaying or preventing a 
change of control or changes in our management. These provisions include the following: 
•Our Board of Directors has the right to elect directors to fill a vacancy created by the expansion of the Board of 
Directors or the resignation, death, or removal of a director.
•Our stockholders may not act by written consent, which makes it difficult to take certain actions without holding


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a stockholders' meeting.
•Our certificate of incorporation prohibits cumulative voting in the election of directors. This limits the ability of 
minority stockholders to elect director candidates.Table of Contents Alphabet Inc.
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•Stockholders must provide advance notice to nominate individuals for election to the Board of Directors or to 
propose matters that can be acted upon at a stockholders’ meeting. These provisions may discourage or deter 
a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or 
otherwise attempting to obtain control of our company. 
•Our Board of Directors may issue, without stockholder approval, shares of undesignated preferred stock, 
which makes it possible for our Board of Directors to issue preferred stock with voting or other rights or 
preferences that could impede the success of any attempt to acquire us. 
As a Delaware corporation, we are also subject to certain Delaware anti-takeover provisions. Under Delaware 
law, a corporation may not engage in a business combination with any holder of 15% or more of its outstanding voting 
stock unless the holder has held the stock for three years or, among other things, the Board of Directors has approved 
the transaction. Our Board of Directors could rely on Delaware law to prevent or delay an acquisition of us. 
The trading price for our Class A stock and non-voting Class C stock may continue to be volatile. 
The trading price of our stock has at times experienced significant volatility and may continue to be volatile. In 
addition to the factors discussed in this report, the trading prices of our Class A stock and Class C stock have 
fluctuated, and may continue to fluctuate widely, in response to various factors, many of which are beyond our control, 
including, among others, the activities of our peers and changes in broader economic and political conditions around 
the world. These broad market and industry factors could harm the market price of our Class A stock and our Class C 
stock, regardless of our actual operating performance. 
General Risks 
Our operating results may fluctuate, which makes our results difficult to predict and could cause our 
results to fall short of expectations. 
Our operating results have fluctuated, and may in the future fluctuate, as a result of a number of factors, many 
outside of our control, including the cyclical nature and seasonality in our business and geopolitical events. As a result, 
comparing our operating results (including our expenses as a percentage of our revenues) on a period-to-period basis


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may not be meaningful, and our past results should not be relied on as an indication of our future performance. 
Consequently, our operating results in future quarters may fall below expectations. 
Acquisitions, joint ventures, investments, and divestitures could result in operating difficulties, dilution, 
and other consequences that could harm our business, financial condition, and operating results. 
Acquisitions, joint ventures, investments, and divestitures are important elements of our overall corporate strategy 
and use of capital, and these transactions could be material to our financial condition and operating results. We expect 
to continue to evaluate and enter into discussions regarding a wide array of such potential strategic arrangements, 
which could create unforeseen operating difficulties and expenditures. Some of the areas where we face risks include: 
•diversion of management time and focus from operating our business to challenges related to acquisitions and 
other strategic arrangements; 
•failure to obtain required approvals on a timely basis, if at all, from governmental authorities, or conditions 
placed upon approval that could, among other things, delay or prevent us from completing a transaction, or 
otherwise restrict our ability to realize the expected financial or strategic goals of a transaction;
•failure to successfully integrate the acquired operations, technologies, services, and personnel (including 
cultural integration and retention of employees) and further develop the acquired business or technology; 
•implementation of controls (or remediation of control deficiencies), procedures, and policies at the acquired 
company; 
•integration of the acquired company’s accounting and other administrative systems, and the coordination of 
product, engineering, and sales and marketing functions;
•transition of operations, users, and customers onto our existing platforms;
•in the case of foreign acquisitions, the need to integrate operations across different cultures and languages 
and to address the particular economic, currency, political, and regulatory risks associated with specific 
countries; 
•failure to accomplish commercial, strategic or financial objectives with respect to investments, joint ventures, 
and other strategic arrangements;
•failure to realize the value of investments and joint ventures due to a lack of liquidity;Table of Contents Alphabet Inc.
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•liability for activities of the acquired company before the acquisition, including patent and trademark 
infringement claims, data privacy and security issues, violations of laws, commercial disputes, tax liabilities, 
warranty claims, product liabilities, and other known and unknown liabilities; and
•litigation or other claims in connection with the acquired company, including claims from terminated 
employees, customers, former stockholders, or other third parties.
Our failure to address these risks or other problems encountered in connection with our past or future acquisitions 
and other strategic arrangements could cause us to fail to realize their anticipated benefits, incur unanticipated 
liabilities, and harm our business generally. 
Our acquisitions and other strategic arrangements could also result in dilutive issuances of our equity securities, 
the incurrence of debt, contingent liabilities, or amortization expenses, or impairment of goodwill and/or purchased 
long-lived assets, and restructuring charges, any of which could harm our financial condition and operating results. 
Also, the anticipated benefits or value of our acquisitions and other strategic arrangements may not materialize. In 
connection with our divestitures, we have agreed, and may in the future agree, to provide indemnification for certain 
potential liabilities, which could harm our financial condition and operating results. 
We rely on highly skilled personnel and, if we are unable to retain or motivate key personnel, hire 
qualified personnel, or maintain and continue to adapt our corporate culture, we may not be able to grow or 
operate effectively. 
Our performance and future success depends in large part upon the continued service of key technical leads as 
well as  members of our senior management team. For instance, Sundar Pichai is critical to the overall management of 
Alphabet and its subsidiaries and plays an important role in the development of our technology, maintaining our 
culture, and setting our strategic direction. 
Our ability to compete effectively and our future success depend  on our continuing to identify, hire, develop, 
motivate, and retain highly skilled personnel for all areas of our organization. Competition in our industry for qualified 
employees is intense, and certain of our competitors have directly targeted, and may continue to target, our 
employees. In addition, our compensation arrangements, such as our equity award programs, may not always be 
successful in attracting new employees and retaining and motivating our existing employees. Restrictive immigration


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policy and regulatory changes may also affect our ability to hire, mobilize, or retain some of our global talent. All of our 
executive officers and key employees are at-will employees, and we do not maintain any key-person life insurance 
policies.
In addition, we believe that our corporate culture fosters innovation, creativity, and teamwork. As our organization 
grows and evolves, we may need to adapt our corporate culture and work environments to ever-changing 
circumstances, such as during times of a natural disaster or pandemic, and these changes could affect our ability to 
compete effectively or have an adverse effect on our corporate culture. Under our hybrid work models, we may 
experience increased costs and/or disruption, in addition to potential effects on our ability to operate effectively and 
maintain our corporate culture. 
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 1C.  CYBERSECURITY
We maintain a comprehensive process for identifying, assessing, and managing material risks from cybersecurity 
threats as part of our broader risk management system and processes. We obtain input, as appropriate, for our 
cybersecurity risk management program on the security industry and threat trends from multiple external experts and 
internal threat intelligence teams.  Teams of dedicated privacy, safety, and security professionals oversee cybersecurity 
risk management and mitigation, incident prevention, detection, and remediation. Leadership for these teams are 
professionals with deep cybersecurity expertise across multiple industries, including our Vice President of Privacy, 
Safety , and Security Engineering . Our executive leadership team, along with input from the above teams, are 
responsible for our overall enterprise risk management system and processes and regularly consider cybersecurity 
risks in the context of other material risks to the company.
As part of our cybersecurity risk management system, our incident management team s track and log privacy and 
security incidents across Alphabet , our vendors, and other third-party service providers to remediate and resolve any 
such incidents. Significant incidents are reviewed regularly by a cross-functional working group to determine whether 
further escalation is appropriate. Any incident assessed as  potentially being or potentially  becoming material is 
immediately escalated for further assessment, and then reported to designated members of our senior management. 
We consult with  outside counsel as appropriate, including on materiality analysis and disclosure matters , and our Table of Contents Alphabet Inc.


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senior management makes the final materiality determinations and disclosure and other compliance decisions. Our 
management  apprises Alphabet’s  independent public accounting firm of matters and any relevan t developments .
The Audit and Compliance Committe e has oversight responsibility for risk s and incidents relating to cybersecurity 
threats, including compliance with disclosure requirements, cooperation with law enforcement, and related effects on 
financial and other risks, and it reports  any f indings and recommendations, as appropriate, to the full Board for 
consideration. Senior management regularly discusses cyber risks and trends  and, should they arise, any material 
incidents with the Audit and Compliance Committee.  Internal Audit maintains a dedicated cybersecurity auditing team 
that independently  tests our cybersecurity controls.  
Our business strategy, results of operations and financial condition have not been materially affected by risks from 
cybersecurity threats, including as a result of previous ly identified cybersecurity incidents , but we cannot provide 
assurance that they will not be materially affected in the future by such risks or any future material incidents. For more 
information on our cybersecurity related risks, see Item 1A Risk Factors of this Annual Report on Form 10-K.
ITEM 2. PROPERTIES
Our headquarters are located in Mountain View, California. We own and lease office facilities and data centers 
around the world, primarily in Asia, Eu rope, and North America . We believe our existing facilities are in good condition 
and suitable for the conduct of our business.
ITEM 3. LEGAL PROCEEDINGS
For a description of our material pending legal proceedings, see Legal Matters in Note 10  of the Notes to 
Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K, which is 
incorporated herein by reference.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND 
ISSUER PURCHASES OF EQUITY SECURITIES
As of October 2, 2015, Alphabet Inc. became the successor issuer of Google Inc. pursuant to Rule 12g-3(a) under 
the Exchange Act. Our Class A stock has been listed on the Nasdaq Global Select Market under the symbol “GOOG”


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since August 19, 2004, and under the symbol "GOOGL" since April 3, 2014. Prior to August 19, 2004, there was no 
public market for our stock. Our Class B stock is neither listed nor traded. Our Class C stock has been listed on the 
Nasdaq Global Select Market under the symbol “GOOG” since April 3, 2014.
Holders of Record
As of December 31, 2023 , there were approximately  7,305  and 1,757  stockholders of record of our Class A stock 
and Class C stock, respectively. Because many of our shares of Class A stock and Class C stock are held by brokers 
and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders 
represented by these record holders. As of December 31, 2023 , there were approximately 59 stockholders of record of 
our Class B stock.
Dividend Policy
We have never declared or paid any cash dividend on our common or capital stock. The primary use of capital 
continues to be to invest for the long-term growth of the business. We regularly evaluate our cash and capital structure, 
including the size, pace, and form of capital return to stockholders.Table of Contents Alphabet Inc.
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Issuer Purchases of Equity Securities
The following table presents information with respect to Alphabet's repurchases of Class A and Class C stock 
during the quarter ended December 31, 2023 : 
PeriodTotal Number of 
Class A Shares 
Purchased 
(in thousands)(1)Total Number of 
Class C Shares 
Purchased 
(in thousands)(1)Average Price 
Paid per 
Class A 
Share(2)Average Price 
Paid per 
Class C 
Share(2)Total Number of 
Shares 
Purchased as 
Part of Publicly 
Announced 
Programs
(in thousands)(1)Approximate 
Dollar Value of 
Shares that May 
Yet Be Purchased 
Under the 
Program 
(in millions)
October 1 - 31  9,923  38,687 $ 134.66 $ 135.65  48,610 $ 45,736 
November 1 - 30  9,197  28,198 $ 134.53 $ 135.16  37,395 $ 40,725 
December 1 - 31  7,502  24,760 $ 135.76 $ 136.37  32,262 $ 36,347 
Total  26,622  91,645  118,267 
(1) R epurchases are being executed from time to time, subject to general business and market conditions and other investment 
opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. The 
repurchase program does not have an expiration date. For additional information related to share repurchases, s ee Note 11  of 
the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
(2)Average price paid per share includes costs associated with the repurchases.Table of Contents Alphabet Inc.
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Stock Performance Graphs
The graph below matches Alphabet Inc. Class A's cumulative five-year total stockholder return on common stock 
with the cumulative total returns of the S&P 500 index, the NASDAQ Composite index, and the RDG Internet 
Composite index. The graph tracks the performance of a $100 investment in our common stock and in each index 
(with the reinvestment of all dividends) from December 31, 2018 , to December 31, 2023 . The returns shown are based 
on historical results and are not intended to suggest future performance.
COMPARISON OF CUMULATIVE 5-YEAR TOTAL RETURN*
ALPHABET INC. CLASS A COMMON STOCK
Among Alphabet Inc., the S&P 500 Index, the
NASDAQ Composite Index, and the RDG Internet Composite Index
Alphabet Inc. Class A S&P 500 NASDAQ Composite
RDG Internet Composite12/183/19 6/19 9/1912/193/20 6/20 9/2012/203/21 6/21 9/2112/213/22 6/22 9/2212/223/23 6/23 9/2312/23$0$50$100$150$200$250$300$350$400
*$100 invested on December 31, 2018 , in stock or index, including reinvestment of dividends. 
Copyright© 2024  S&P, a division of The McGraw-Hill Companies Inc. All rights reserved.Table of Contents Alphabet Inc.
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The graph below matches Alphabet Inc. Class C's cumulative five-year total stockholder return on capital stock 
with the cumulative total returns of the S&P 500 index, the NASDAQ Composite index, and the RDG Internet 
Composite index. The graph tracks the performance of a $100 investment in our Class C capital stock and in each 
index (with the reinvestment of all dividends) from December 31, 2018 , to December 31, 2023 . The returns shown are 
based on historical results and are not intended to suggest future performance.
COMPARISON OF CUMULATIVE 5-YEAR TOTAL RETURN*
ALPHABET INC. CLASS C CAPITAL STOCK
Among Alphabet Inc., the S&P 500 Index, the
NASDAQ Composite Index, and the RDG Internet Composite Index
Alphabet Inc. Class C S&P 500 NASDAQ Composite
RDG Internet Composite12/183/19 6/19 9/1912/193/20 6/20 9/2012/203/21 6/21 9/2112/213/22 6/22 9/2212/223/23 6/23 9/2312/23$0$50$100$150$200$250$300$350$400
*$100 invested on December 31, 2018 , in stock or in index, including reinvestment of dividends.
Copyright© 2024  S&P, a division of The McGraw-Hill Companies Inc. All rights reserved.
ITEM 6. [Reserved]Table of Contents Alphabet Inc.
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS
Please read the following discussion and analysis of our financial condition and results of operations together with 
“Note about Forward-Looking Statements,” Part I, Item 1 "Business," Part I, Item 1A "Risk Factors," and our 
consolidated financial statements and related notes included under Item 8 of this Annual Report on Form 10-K. 
The following section generally discusses 2023 results compared to 2022 results. Discussion of 2022 results 
compared to 2021  results to the extent not included in this report can be found in Item 7 of our 2022  Annual Report on 
Form 10-K .
Understanding Alphabet’s Financial Results
Alphabet is a collection of businesses — the largest of which is Google. We report Google in two segments, 
Google Services and Google Cloud; we also report all non-Google businesses collectively as Other Bets. For 
additional information on our segments, see Part I, Item 1 Business and Note 15  of the Notes to Consolidated 
Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Trends in Our Business and Financial Effect
The following long-term trends have contributed to the results of our consolidated operations, and we anticipate 
that they will continue to affect our future results:
•Users' behaviors and advertising continue to shift online as the digital economy evolves .
The continuing evolution of the online world has contributed to the growth of our business and our revenues since 
inception. We expect that this evolution will continue to benefit our business and our revenues, although at a slower 
pace than we have experienced historically, in particular after the outsized growth in our advertising revenues during 
the COVID-19 pandemic. In addition, we face increasing competition for user engagement and advertisers, which may 
affect our revenues.
•Users continue to access our products and services using diverse devices and modalities, which 
allows for new advertising formats that may benefit our revenues but adversely affect our margins.
Our users are accessing our products and services via diverse devices and modalities, such as smartphones, 
wearables, connected TVs, and smart home devices , and want to be able to be connected no matter where they are or


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what they are doing. We are focused on expanding our products and services to stay in front of these trends in order to 
maintain and grow our business.
We benefit from advertising revenues generated from different channels, including mobile, and newer advertising 
formats. The margins from these channels and newer products have generally been lower than those from traditional 
desktop search. Additionally, as the market for a particular device type or modality matures, our advertising revenues 
may be affected. For example, chang ing dynamics within  the global smartphone market, such as increased market 
saturation in developed countries, can affect our mobile advertising revenues.
We expect TAC paid to our distribution partners and Google Network partners to increase as our revenues grow 
and TAC as a percentage of our advertising revenues ("TAC rate") to be affected by changes in device mix; geographic 
mix; partner agreement terms; partner mix; the percentage of queries channeled through paid access points; product 
mix; the relative revenue growth rates of advertising revenues from different channels; and revenue share terms.
We expect these trends to continue to affect our revenues and put pressure on our margins.
•As online advertising evolves, we continue to expand our product offerings, which may affect our 
monetization.
As interactions between users and advertisers change, and as online user behavior evolves, we continue to 
expand our product offerings to serve these changing needs, which may affect our monetization. For example, 
revenues from ads on YouTube and Google Play monetize at a lower rate than our traditional search ads. We also 
expect to continue to incorporate AI innovations into our products, such as AI in Searc h, that could affect our 
monetization trends.  When developing new products and services we generally focus first on user experience and then 
on monetization.
•As users in developing economies increasingly come online, our revenues from international markets 
continue to increase, and may require continued investments. In addition, movements in foreign exchange 
rates affect such revenues. Table of Contents Alphabet Inc.
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The shift to online, as well as the advent of the multi-device world, has brought opportunities outside of the U.S., 
including in emerging markets, such as India. We continue to invest heavily and develop localized versions of our 
products and advertising programs relevant to our users in these markets. This has led to a trend of increased 
revenues from emerging markets.  We expect that our results will continue to be affected by our performance in these 
markets, particularly as low-cost mobile devices become more available. This trend could affect our revenues as 
developing markets initially monetize at a lower rate than more mature markets.
International revenues represent a significant portion of our revenues and are subject to fluctuations in foreign 
currency exchange rates relative to the U.S. dollar. While we have a foreign exchange risk management program 
designed to reduce our exposure to these fluctuations, this program does not fully offset their effect on our revenues 
and earnings.
•The revenues that we derive beyond advertising  are increasing and may adversely affect our margins.
Revenues  from cloud, consumer subscriptions, platforms, and devices, which may have differing characteristics 
than our advertising revenues,  have grown over time, and we expect this trend to continue as we focus on expanding 
our products and services . The margins on these revenues vary significantly and are generally lower than the margins 
on our advertising revenues.  For example,  sales of our device s  adversely affect our consolidated margins due to 
pressures on pricing and higher cost of sales.
•As we continue to serve our users and expand our businesses, we will invest heavily  in operating and 
capital expenditures.
We continue to make significant research and development investments in areas of strategic focus as we seek to 
develop new, innovative offerings, improve our existing offerings, a nd rapidly and responsibly deploy AI  across our 
businesses. We also expect to  increase , relative to 2023 , our investmen t in our technical infrastructure, including 
servers, netw ork 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 . In addition, acquisitions and strategic investments contribute to the 
breadth and depth of our offerings, expand our expertise in engineering and other functional areas, and build strong 
partnerships around strategic initiatives .


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partnerships around strategic initiatives .
•We continue to face an evolving regulatory environment, and we are subject to claims, lawsuits, 
investigations, and other forms of potential legal liability, which could affect our business practices and 
financial results.
Changes in social, political, economic, tax, and regulatory conditions or in laws  and policies governing a wide 
range of topics and related legal matters, including investigations, lawsuits, and regulatory actions, have resulted in 
fines and caused us to change our business practices . As these global trends continue, our cost of doing business may 
increase, our ability to pursue certain business models or offer certain products or services may be limited, and we 
may need to change our business practices to comply with evolving regulatory and legal matters . Examples include t he 
antitrust complaints filed by  the U.S. Department of Justice and a number of state Attorneys General; legislative 
proposals and pending litigation in the U.S., EU, and around the world that could diminish or eliminate safe harbor 
protection for websites and online platforms; and the Digital Markets Act and Digital Services Act in Europe and various 
legislative proposals in the U.S. focused on large technology platforms. For additional information, see Item 1A Risk 
Factors and Legal Matters in Note 10  of the Notes to Consolidated Financial Statements included in Part II, Item 8 of 
this Annual Report on Form 10-K.
•Our employees are critical to our success and we expect to continue investing in them.
Our employees are among our best assets  and are critical for our continued success. We expect to continue 
hiring talented employees around the globe and to provide competitive compensation programs. For additional 
information, see Culture and Workforce in Part I, Item 1 Business of this Annual Report on Form 10-K.
Revenues and Monetization Metrics
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide 
enterprise customers of all sizes with infrastructure and platform services as well as communication and collaboration 
tools; sales of other products and services, such as apps and in-app purchases, and devices; and fees received for 
consumer subscription-based products. For additional information on how we recognize revenue, see Note 1  of the 
Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.


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In addition to the long-term trends and their financial effect on our business discussed above, fluctuations in our 
revenues have been, and may continue to be, affected by a combination of general factors, including:
•changes in foreign currency exchange rates;Table of Contents Alphabet Inc.
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•changes in pricing, such as those resulting from changes in fee structures, discounts, and customer incentives ;
•general economic conditions and various external dynamics, including geopolitical events,  regulations, and 
other measures and their effect on advertiser, consumer, and enterprise spending ; 
•new product and service launches; and
•seasonality.
Additionally, fluctuations in our revenues generated from advertising ("Google advertising"), revenues from other 
sources ("Google subscriptions, platforms, and devices revenues"), Google Cloud, and Other Bets revenues have 
been, and may continue to be, affected by other factors unique to each set of revenues, as described below.
Google Services
Google Services revenues consist of Google advertising as well as Google subscriptions, platforms, and devices 
revenues.
Google Advertising
Google advertising revenues are comprised of the following: 
•Google Search & other, which includes revenues generated on Google search properties (including revenues 
from traffic generated by search distribution partners who use Google.com as their default search in browsers, 
toolbars, etc.), and other Google owned and operated properties like Gmail, Google Maps, and Google Play;
•YouTube ads, which includes revenues generated on YouTube properties; and
•Google Network, which includes revenues generated on Google Network properties participating in AdMob, 
AdSense, and Google Ad Manager.
We use certain metrics to track how well traffic across various properties is monetized as it relates to our 
advertising revenues: paid clicks and cost-per-click pertain to traffic on Google Search & other properties, while 
impressions and cost-per-impression pertain to traffic on our Google Network properties.
Paid clicks represent engagement by users and include clicks on advertisements by end-users on Google search 
properties and other Google owned and operated properties including Gmail, Google Maps, and Google Play.  Cost-
per-click is defined as click-driven revenues divided by our total number of paid clicks and represents the average 
amount we charge advertisers for each engagement by users.
Impressions include impressions displayed to users on Google Network properties participating primarily in 
AdMob, AdSense, and Google Ad Manager.  Cost-per-impression is defined as impression-based and click-based 
revenues divided by our total number of impressions, and represents the average amount we charge advertisers for 
each impression displayed to users.  
As our business evolves, we periodically review, refine, and update our methodologies for monitoring, gathering,


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and counting the number of paid clicks and the number of impressions, and for identifying the revenues generated by 
the corresponding click and impression activity.
Fluctuations in our advertising revenues, as well as the change in paid clicks and cost-per-click on Google Search 
& other properties and the change in impressions and cost-per-impression on Google Network properties and the 
correlation between these items have been, and may continue to be, affected by factors in addition to the general 
factors described above, such as:
•advertiser competition for keywords;
•changes in advertising quality, formats, delivery or policy;
•changes in device mix; 
•seasonal fluctuations in internet usage, advertising expenditures, and underlying business trends, such as 
traditional retail seasonality; and
•traffic growth in emerging markets compared to more mature markets and across various verticals and 
channels.Table of Contents Alphabet Inc.
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Google Subscriptions, Platforms, and Devices
Google subscriptions, platforms, and devices revenues are comprised of the following:
•consumer subscript ions, which primarily include revenues from YouTube services, such YouTube TV, YouTube  
Music and Premium , and NFL Sunday Ticket, as well as Google One;
•platforms, which primarily include revenues from Google Play from the sales of apps and in-app purchases;
•devices, which primarily include sales of the Pixel family of devices; and
•other products and services.
Fluctuations in our Google subscriptions, platforms, and devices revenues have been, and may continue to be, 
affected by factors in addition to the general factors described above, such as changes in customer usage and 
demand, number of subscribers, and fluctuations in the timing of product launches.
Google Cloud
Google Cloud revenues are comprised of the following:
•Google Cloud Platform , which generates consumption-based fees and subscriptions for infrastructure, 
platform, and other services. These services provide access to solutions such as cybersecurity, databases, 
analytics, and AI offerings including our AI infrastructure, Vertex AI platform , and Duet AI for Google Cloud ;
•Google Workspace, which includes subscriptions for cloud-based communication and collaboration tools for 
enterprises, such as Calendar, Gmail, Docs, Drive, and Meet, with integrated features like Duet AI in Google 
Workspace; and
•other enterprise services.
Fluctuations in our Google Cloud revenues have been, and may continue to be, affected by  factors  in addition to 
the general factors described above , such as customer usage.
Other Bets
Revenues from Other Bets are generated primarily from the sale of health care- related services  and internet 
services .
Costs and Expenses 
Our cost structure has two components: cost of revenues and operating expenses. Our operating expenses 
include costs related to R&D, sales and marketing, and general and administrative functions. Certain of our costs and 
expenses, including those associated with the operation of our technical infrastructure as well as components of our 
operating expenses, are generally less variable in nature and may not correlate to changes in revenue. Additionally, 
fluctuations in compensation expenses may not directly correlate with changes in headcount, in particular due to 
annual stock-based compensation (SBC) awards  that generally vest over four years. 
Cost of Revenues


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Cost of Revenues
Cost of revenues is comprised of TAC and other costs of revenues.
•TAC includes: 
◦amounts paid to our distribution partners who make available our search access points and services. 
Our distribution partners include browser providers, mobile carriers, original equipment manufacturers, 
and software developers ; and
◦amounts paid to Google Network partners primarily for ads displayed on their properties.
•Other cost of revenues  primarily includes :
◦compensation expense related to our data centers and other operations such as content review and 
customer and product support;
◦content acquisition costs, which are 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);
◦depreciation expense related to our technical infrastructure; and
◦inventory and other costs related to the devices  we sell.Table of Contents Alphabet Inc.
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TAC as a percentage of revenues generated from ads placed on Google Network properties are significantly 
higher than TAC as a percentage of revenues generated from ads placed on Google Search & other properties, 
because most of the advertiser revenues from ads served on Google Network properties are paid as TAC to our 
Google Network partners.
Operating Expenses
Operating expenses are generally incurred during our normal course of business, which we categorize as either 
R&D, sales and marketing, or general and administrative.
The main components of our R&D expenses are:
•compensation expenses for engineering and technical employees responsible for R&D related to our existing 
and new products and services; 
•depreciation ; and
•third-party services fees primarily relating to consulting and outsourced services in support of our engineering 
and product development efforts.
The main components of our sales and marketing expenses are:
•compensation expenses for employees engaged in sales and marketing, sales support, and certain customer 
service functions; and
•spending relating to our advertising and promotional activities in support of our products and services.
The main components of our general and administrative expenses are:
•compensation expenses for employees in finance, human resources, information technology, legal, and other 
administrative support functions; 
•expenses relating to legal matters, including certain  fines and settlements; and 
•third-party services fees, including audit, consulting, outside legal, and other outsourced administrative 
services.
Other Income (Expense), Net 
OI&E, net primarily consists of interest income (expense), the effect of foreign currency exchange gains (losses), 
net gains (losses) and impairment on our marketable and non-marketable securities, performance fees, and income 
(loss) and impairment from our equity method investments. 
For additional information, including how we account for our investments and factors that can drive fluctuations in 
the value of our investments, see Note 1  and Note 3  of the Notes to Consolidated Financial Statements included in 
Part II, Item 8 as well as Item 7A Quantitative and Qualitative Disclosures About Market Risk of this Annual Report on 
Form 10-K.
Provision for Income Taxes  
Provision for income taxes represents the estimated amount of federal, state, and foreign income taxes incurred


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in the U.S. and the many jurisdictions in which we operate. The provision includes the effect of reserve provisions and 
changes to reserves that are considered appropriate as well as the related net interest and penalties.
For additional information, including a reconciliation of the U.S. federal statutory rate to our effective tax rate, see 
Note 14  of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.Table of Contents Alphabet Inc.
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Executive Overview
The following table summarizes our consolidated financial results (in millions, except for per share information 
and percentages):
Year Ended December 31,
2022 2023 $ Change % Change
Consolidated revenues $ 282,836 $ 307,394 $ 24,558  9 %
Change in consolidated constant currency revenues(1) 10 %
Cost of revenues $ 126,203 $ 133,332 $ 7,129  6 %
Operating expenses $ 81,791 $ 89,769 $ 7,978  10 %
Operating income $ 74,842 $ 84,293 $ 9,451  13 %
Operating margin  26 %  27 %  1 %
Other income (expense), net $ (3,514) $ 1,424 $ 4,938 NM
Net income $ 59,972 $ 73,795 $ 13,823  23 %
Diluted EPS $ 4.56 $ 5.80 $ 1.24  27 %
NM = Not Meaningful
(1) See "Use of Non-GAAP Constant Currency Information " below for details relating to our use of constant currency information. 
•Revenues were $307.4 billion , an increase  of 9% year over year, primarily driven by an increase  in Google 
Services revenues of $19.0 billion , or 8%, and an increase  in Google Cloud revenues of $6.8 billion , or 26%. 
•Total constant currency revenues, which exclude the effect of hedging, increased 10% year over year.
•Cost of revenues  was $133.3 billion , an increase  of 6% year over year, primarily driven by increase s in content 
acquisition costs , compensation expenses, and TAC . The increase in compensation expenses included 
charges related to employee severance associated with the reduction in our workforce . Additionally, cost of 
revenues benefited from a reduction in depreciation due to the change in estimated useful lives of our servers 
and network equipment.
•Operating expenses were $89.8 billion , an increase  of 10% year over year , primarily driven by an increase in 
compensation expenses  and charges related to our office space optimization efforts . The increase in


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compensation expenses was largely  the result of  charges related to employee severance associated with the 
reduction in our workforce  and an increase in SBC expense.  Operating  expenses benefited from  the change in 
the estimated useful lives of our servers and certain network equipment.
Other Information:
•In January 2023, we announced a reduction of our workforce , and as a result we recorded employee 
severance and related charges of $2.1 billion  for the year ended December 31, 2023. In addition, we are 
taking actions to optimize our global office space. As a result, exit charges recorded during the year ended 
December 31, 2023, were $1.8 billion . In addition to these exit charges, for the year ended December 31, 
2023, we incurred  $269 million  in accelerated rent and accelerated depreciation . For additional information, 
see Note 8  of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on 
Form 10-K.
•In January 2023, we completed an assessment of the useful lives of our servers and network equipment, 
resulting in a change in the estimated useful life of our servers and certain network equipment to six years. 
The effect of this change was a reduction in depreciation expense of $3.9 billion  for the year ended December 
31, 2023, recognized primarily in cost of revenues and R&D expenses. For additional information, see Note 1  
of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.Table of Contents Alphabet Inc.
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•On July 21,  2023, the IRS announced a rule change allowing taxpayers to temporarily apply the regulations in 
effect prior to 2022 related to U.S. federal foreign tax credits. This announcement applies to foreign taxes paid 
or accrued in the fiscal years 2022 and 2023. A cumulative one-time adjustment applicable to  the prior period 
for this tax rule change was recorded in 2023  and is reflected in  our effective tax rate of 13.9%  for the year 
ended December 31, 2023.
•Repurchases of Class A and Class C shares were $62.2 billion  for the year ended December 31, 2023 . For 
additional information, see Note 11  of the Notes to Consolidated Financial Statements included in Item 8 of this 
Annual Report on Form 10-K.
•Operating cash flow was $101.7 billion  for the year ended December 31, 2023 .
•Capital expenditures, which primarily reflected investments in technical infrastructure, were $32.3 billion  for the 
year ended December 31, 2023 .
•As of December 31, 2023 , we had  182,502  employees.
Financial Results
Revenues
The following table presents revenues by type (in millions):
Year Ended December 31,
2022 2023
Google Search & other $ 162,450 $ 175,033 
YouTube ads  29,243  31,510 
Google Network  32,780  31,312 
Google advertising  224,473  237,855 
Google subscriptions, platforms, and devices  29,055  34,688 
Google Services total  253,528  272,543 
Google Cloud  26,280  33,088 
Other Bets  1,068  1,527 
Hedging gains (losses)  1,960  236 
Total revenues $ 282,836 $ 307,394 
Google Services
Google advertising revenues
Google Search & other
Google Search & other revenues increased  $12.6 billion  from 2022  to 2023 . The overall growth was driven by


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interrelated factors including increases in search queries resulting from growth in user adoption and usage on mobile 
device s; growth in advertiser spending; and  improvements we have made in ad formats and delivery .
YouTube ads
YouTube ads revenues increased  $2.3 billion  from 2022  to 2023 . The growth was driven by our brand and direct 
response advertising products, both of which benefited from increased spending by our advertisers.
Google Network
Google Network revenues decreased  $1.5 billion  from 2022  to 2023 , primarily driven by a decrease in Google Ad 
Manager and AdSense revenues.Table of Contents Alphabet Inc.
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Monetization Metrics
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 2022  to 2023 :
Google Search & other
Paid clicks change  7 %
Cost-per-click change  1 %
Google Network
Impressions change  (5) %
Cost-per-impression change  0 %
Changes in paid clicks and impressions are driven by a number of interrelated factors, including changes in 
advertiser spending; ongoing product and policy changes; and, as it relates to paid clicks, fluctuations in search 
queries resulting from changes in user adoption and usage, primarily  on mobile devices .
Changes in cost-per-click and cost-per-impression are driven by a number of interrelated factors including 
changes in device mix , geographic mix, advertiser spending, ongoing product and policy changes, product mix, 
property mix, and changes in foreign currency exchange rates.
Google subscriptions, platforms, and devices
Google subscriptions , platforms, a nd devices  revenues increased  $5.6 billion  from 2022  to 2023  primarily driven 
by growth in subscriptions , largely for YouTube services. The growth in YouTube services was primarily  due to an 
increase in paid subscribers.
Google subscriptions, platforms, and devices revenues increased $1.0 billion from 2021 to 2022 primarily driven 
by growth in subscription and device revenues, partially offset by a decrease in platform revenues. The growth in 
subscriptions was largely for YouTube services, primarily due to an increase in paid subscribers. The growth in device 
revenues was primarily driven by increased sales of Pixel devices. The decrease in platform revenues was primarily 
due to Google Play, driven by the fee structure changes we announced in 2021 as well as a decrease in buyer 
spending. Additionally, the overall increase in Google subscriptions, platforms, and devices revenues was adversely 
affected by the unfavorable effect of foreign currency exchange rates.
Google Cloud
Google Cloud revenues increased  $6.8 billion  from 2022  to 2023 . 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.
Revenues by Geography


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drivers of growth in Google Cloud Platform.
Revenues by Geography
The following table presents revenues by geography as a percentage of revenues, determined based on the 
addresses of our customers:
 Year Ended December 31,
 2022 2023
United States  48 %  47 %
EMEA  29 %  30 %
APAC  16 %  17 %
Other Americas  6 %  6 %
Hedging gains (losses)  1 %  0 %
For additional information, see Note 2  of the Notes to Consolidated Financial Statements included in Item 8 of this 
Annual Report on Form 10-K.Table of Contents Alphabet Inc.
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Use of Non-GAAP Constant Currency Information
International revenues, which represent a significant portion of our revenues, are generally transacted in multiple 
currencies and therefore are affected by fluctuations in foreign currency exchange rates.
The effect of currency exchange rates on our business is an important factor in understanding period-to-period 
comparisons. We use non-GAAP constant currency revenues ("constant currency revenues") and non-GAAP 
percentage change in constant currency revenues ("percentage change in constant currency revenues") for financial 
and operational decision-making and as a means to evaluate period-to-period comparisons. We believe the 
presentation of results on a constant currency basis in addition to U.S. Generally Accepted Accounting Principles 
(GAAP) results helps improve the ability to understand our performance, because it excludes the effects of foreign 
currency volatility that are not indicative of our core operating results.
Constant currency information compares results between periods as if exchange rates had remained constant 
period over period. We define constant currency revenues as revenues excluding the effect of foreign currency 
exchange rate movements ("FX Effect") as well as hedging activities, which are recognized at the consolidated level. 
We use constant currency revenues to determine the constant currency revenue percentage change on a year-on-year 
basis. Constant currency revenues are calculated by translating current period revenues using prior year comparable 
period exchange rates, as well as excluding any hedging effects realized in the current period.
Constant currency revenue percentage change is calculated by determining the change in current period 
revenues over prior year comparable period revenues where current period foreign currency revenues are translated 
using prior year comparable period exchange rates and hedging effects are excluded from revenues of both periods.
These results should be considered in addition to, not as a substitute for, results reported in accordance with 
GAAP. Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures 
used by other companies and are not a measure of performance presented in accordance with GAAP.
The following table presents the foreign currency exchange effect on international revenues and total revenues (in 
millions, except percentages):
Year Ended December 31, 2023
% Change from Prior Period
Year Ended December 31,Less FX 
EffectConstant 
Currency 
RevenuesAs 
ReportedLess 
Hedging 
EffectLess FX 
EffectConstant 
Currency 
Revenues 2022 2023


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EffectConstant 
Currency 
Revenues 2022 2023
United States $ 134,814 $ 146,286 $ 0 $ 146,286  9 %  0 %  9 %
EMEA  82,062  91,038  460  90,578  11 %  1 %  10 %
APAC  47,024  51,514  (1,759)  53,273  10 %  (3) %  13 %
Other Americas  16,976  18,320  (654)  18,974  8 %  (4) %  12 %
Revenues, excluding hedging effect  280,876  307,158  (1,953)  309,111  9 %  (1) %  10 %
Hedging gains (losses)  1,960  236 
Total revenues(1)$ 282,836 $ 307,394 $ 309,111  9 %  0 %  (1) %  10 %
(1)Total constant currency revenues of $309.1 billion  for 2023  increased $28.2 billion  compared to $280.9 billion  in revenues, 
excluding hedging effect, for 2022 .
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.
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.
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.Table of Contents Alphabet Inc.
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Costs and Expenses
Cost of Revenues
The following table presents cost of revenues, including TAC (in millions, except percentages):
 Year Ended December 31,
 2021 2022 2023
TAC $ 45,566 $ 48,955 $ 50,886 
Other cost of revenues  65,373  77,248  82,446 
Total cost of revenues $ 110,939 $ 126,203 $ 133,332 
Total cost of revenues as a percentage of revenues  43 %  45 %  43 %
Cost of revenues increased  $7.1 billion  from 2022  to 2023  due to an increase  in other cost of revenues and TAC 
of $5.2 billion  and $1.9 billion , respectively.
The increase  in TAC from 2022  to 2023  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 21.8%  to 21.4%  from 2022  to 
2023  primarily due to a revenue mix shift from Google Network properties to Google Search & other properties. The 
TAC rate on Google Search & other revenues and the TAC rate on Google Network revenues were both substantially 
consistent from 2022 to 2023.
The increase  in other cost of revenues from 2022  to 2023  was primarily due to increases in content acquisition 
costs, largely for YouTube, and compensation expenses, which  included $479 million  of charges related to employee 
severance associated with the reduction in our workforce . Additionally, other cost of revenues benefited from a 
reduction in depreciation expense due to the change in estimated useful lives of our servers and network equipment.
The increase  in other cost of revenues of $11.9 billion  from 2021 to 2022  was primarily due to increases in device 
costs, compensation expenses, depreciation, and equipment-related expenses.
Research and Development
The following table presents R&D expenses (in millions, except percentages):
 Year Ended December 31,
 2022 2023
Research and development expenses $ 39,500 $ 45,427


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Research and development expenses $ 39,500 $ 45,427 
Research and development expenses as a percentage of revenues  14 %  15 %
R&D expenses increased  $5.9 billion  from 2022  to 2023  primarily driven by an increase in compensation 
expenses of $2.9 billion, $870 million in charges related to our office space optimization efforts, and an increase in 
depreciation expense of $722 million. The $2.9 billion increase in compensation expenses  was largely the result of a 
4% increase in average headcount , after adjusting for roles affected by the reduction in our workforce, and an increase 
in SBC expense. Additionally, the increase in compensation expenses included  $848 million in employee severance 
charges associated with the reduction in our workforce.  The $722 million increase in depreciation expense reflected an 
offsetting benefit of the change in the estimated useful lives of our servers and network equipment.
Sales and Marketing
The following table presents sales and marketing expenses (in millions, except percentages):
 Year Ended December 31,
 2022 2023
Sales and marketing expenses $ 26,567 $ 27,917 
Sales and marketing expenses as a percentage of revenues  9 %  9 %
Sales and marketing expenses increased  $1.4 billion  from 2022  to 2023 , primarily driven by an increase in 
compensation expenses of $1.6 billion, partially offset by a decrease in advertising and promotional activities of $441 
million. The $1.6 billion increase in compensation expenses was largely the result of $497 million in employee 
severance charges associated with the reduction in our workforce in addition to a combination of other factors, none of 
which were individually significant .Table of Contents Alphabet Inc.
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General and Administrative
The following table presents general and administrative expenses (in millions, except percentages):
 Year Ended December 31,
 2022 2023
General and administrative expenses $ 15,724 $ 16,425 
General and administrative expenses as a percentage of revenues  6 %  5 %
General and administrative expenses increased  $701 million  from 2022  to 2023 , primarily driven by an increase in 
compensation expenses of $416 million, which was largely the result of $264 million in employee severance charges 
associated with the reduction in our workforce  in addition to a combination of other factors, none of which were 
individually significant . 
Segment Profitability
The following table presents segment operating income (loss) (in millions).
Year Ended December 31,
2022 2023
Operating income (loss):
Google Services $ 82,699 $ 95,858 
Google Cloud  (1,922)  1,716 
Other Bets  (4,636)  (4,095) 
Alphabet-level activities(1) (1,299)  (9,186) 
Total income from operations $ 74,842 $ 84,293 
(1)In addition to the costs included in Alphabet-level activities , hedging gains (losses) related to revenue were $2.0 billion  and 
$236 million  in 2022 and 2023 , respectively . For the year ended December 31, 2023, Alphabet-level activities include charges 
related to the reduction  in force and our office space optimization efforts  totaling  $3.9 billion . In addition, for the year ended 
December 31, 2023, we incurred $269 million  in accelerated rent and accelerated depreciation. For additional information 
relating to our workforce reduction and other initiatives, see Note 8  of the Notes to Consolidated Financial Statements included 
in Item 8 of this Annual Report on Form 10-K. For additional information relating to our segments, see Note 15  of the Notes to 
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Google Services
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was primarily driven by an increase in revenues, partially offset by an increase in content acquisition costs and 
compensation expenses  including  an increase in SBC expense . Additionally, operating income benefited from a 
reduction in costs driven by the change in the estimated useful lives of our servers and certain network equipment.
Google Cloud
Google Cloud operating income of $1.7 billion  for 2023  compared to an operating loss of $1.9 billion  for 2022  
represents an increase of $3.6 billion . The increase in operating income was primarily driven by an increase in 
revenues, partially offset by an increase in compensation expenses l argely driven by  headcount growth . Additionally, 
operating income benefited from a reduction in costs driven by the change in the estimated useful lives of our servers 
and certain network equipment.
Other Bets
Other Bets operating loss decreased  $541 million  from 2022  to 2023  primarily due to growth in revenues  as well 
as a reduction in valuation-based compensation liabilities related to Other Bet companies .
Other Income (Expense), Net
The following table presents OI&E, (in millions):Table of Contents Alphabet Inc.
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Year Ended December 31,
 2022 2023
Interest income $ 2,174 $ 3,865 
Interest expense  (357)  (308) 
Foreign currency exchange gain (loss), net  (654)  (1,238) 
Gain (loss) on debt securities, net  (2,064)  (1,215) 
Gain (loss) on equity securities, net  (3,455)  392 
Performance fees  798  257 
Income (loss) and impairment from equity method investments, net  (337)  (628) 
Other  381  299 
Other income (expense), net $ (3,514) $ 1,424 
OI&E, net increased $4.9 billion  from 2022 to 2023. The increase was primarily due to fluctuations in the value of 
equity securities reflecting market driven changes in the value of our marketable equity securities, investment specific  
event driven changes  in our non-marketable equity securities, and increased interest income due to interest rates. 
For additional information, see Note 7  of the Notes to Consolidated Financial Statements included in Item 8 of this 
Annual Report on Form 10-K.
Provision for Income Taxes
The following table presents provision for income taxes (in millions, except for effective tax rate):
 Year Ended December 31,
 2022 2023
Income before provision for income taxes $ 71,328 $ 85,717 
Provision for income taxes $ 11,356 $ 11,922 
Effective tax rate  15.9 %  13.9 %
In 2023, the Internal Revenue Services (IRS) issued a rule change allowing taxpayers to temporarily apply the 
regulations in effect prior to 2022 related to U.S. federal foreign tax credits, as well as a separate rule change with 
interim guidance on the capitalization and amortization of R&D expenses. A cumulative one-time adjustment applicable 
to the prior period for these tax rule changes  was recorded in 2023.
The effective tax rate decreased from 2022  to 2023 , reflecting the effect of the two tax rule changes described 
above, particularly the change related to foreign tax cred its. The effect of these tax rule changes was partially offset by


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changes in uncertain tax benefits  and a decrease  in the U.S. federal Foreign Derived Intangible Income tax deduction.
The OECD is coordin ating negotiations among more than 140 countries with the goal of achieving consensus 
around substantial changes to international tax policies, including the implementation of a minimum global effective tax 
rate of 15%. While various countries have implemented the legislation as of January 1, 2024, we do not expect a 
resulting material change to our income tax provision for the 2024 fiscal year. As additional jurisdictions enact such 
legislation, we expect our effective tax rate and cash tax payments could increase in f uture years. 
Financial Condition
Cash, Cash Equivalents, and Marketable Securities
As of December 31, 2023 , we had $110.9 billion  in cash, cash equivalents, and short-term marketable securities. 
Cash equivalents and marketable securities a re comprised of time deposits, money market funds, highly liquid 
government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity 
securities.
Sources, Uses of Cash and Related Trends
Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow 
that we generate from operations. The primary use of capital continues to be to invest for the long-term growth of the 
business. We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to 
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The following table presents our cash flows (in millions):
 Year Ended December 31,
 2022 2023
Net cash provided by operating activities $ 91,495 $ 101,746 
Net cash used in investing activities $ (20,298) $ (27,063) 
Net cash used in financing activities $ (69,757) $ (72,093) 
Cash Provided by Operating Activities
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 .
Our primary uses of cash from operating activities include payments to distribution and Google Network partners, 
to employees for compensation, and to content providers. Other uses  of cash from operating activities include 
payments to suppliers for devices, to tax authorities for income taxes, and other general corporate expenditures .
Net cash provided by operating activities increased  from 2022  to 2023  due to the increase in cash received from 
customers, partially offset by increase s in ca sh paid for cost of revenues and operating expenses.
Cash Used in Investing Activities
Cash provided by investing activities consists primarily of maturities and sales of investments in marketable and 
non-marketable securities. Cash used in investing activities consists primarily of purchases of marketable and non-
marketable securities, purchases of property and equipment, and payments for acquisitions.
Net cash used in investing activities increased  from 2022  to 2023  due to a decrease in maturities and sales of 
marketable securities, partially offset by a decrease in payments for acquisitions.
Cash Used in Financing Activities
Cash provided by financing activities consists primarily of proceeds from issuance of debt and proceeds from the 
sale of interes ts in consolidated entities. Cash used in financing activities consists primarily of repurchases of stock, 
net payments related to stock-based award activities, and repayments of debt.
Net cash used in financing activities increased  from 2022  to 2023  due to an increase in repurchases of stock.
Liquidity and Material Cash Requirements


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Liquidity and Material Cash Requirements
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.
Capital Expenditures and Leases
We make investments in land and buildings for data centers and offices and information technology assets 
through purchases of property and equipment and lease arrangements  to provide capacity for the growth of our 
services and products.
Capital Expenditures
Our capital investments in propert y and equipment consist primarily of the following major categories:
•technical infrastructure , which consists of our investments in servers and network equipment for computing, 
storage, and networking requirements for ongoing business activities, including AI, (collectively referred to as 
our information technology assets ) and data center land and building construction; and
•office facilities , ground-up development projects, and building improvements  (also referred to as "fit-outs").
Construction in progress consists primarily of technical infrastructure and office facilities which have not yet been 
placed in service. The time frame from date of purchase to placement in service of these assets may extend from 
months to years. For example, our data center construction projects are generally multi-year projects with multiple 
phases, where we acquire land and buildings, construct buildings, and secure and install information technology 
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During the years ended December 31, 2022  and 2023 , we spent $31.5 billion  and $32.3 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 years ended December 31, 2022  and 2023 , our depreciation  on property and equipment were $13.5 billion  and 
$11.9 billion , respectively .  
Leases 
For the years ended December 31, 2022  and 2023 , we recognized total operating lease assets of $4.4 billion  and 
$2.9 billion , respectively. As of December 31, 2023 , the amount of total future lease payments under operating leases, 
which had a weighted average remaining lease term of eight  years, was $17.7 billion , of which $3.2 billion  is short-
term. As of December 31, 2023 , we have entered into leases that have not yet commenced with future short-term and 
long-term lease payments of  $657 million  and $3.3 billion , that are not yet recorded on our Consolidated Balance 
Sheets. These leases will commence between 2024  and 2026  with non-cancelable lease terms of one to 25 years. 
For the years ended December 31, 2022  and 2023 , our operating lease expenses (including variable lease costs) 
were $3.7 billion  and $4.5 billion , respectively. Finance lease costs  were not material for the years ended 
December 31, 2022  and 2023 . For additional information, see Note 4  of the Notes to Consolidated Financial 
Statements included in Item 8 of this Annual Report on Form 10-K.
Financing
We have a short-term debt financing program of up to $10.0 billion  through the issuance of commercial paper. Net


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proceeds from this program are used for general corporate purposes. As of December 31, 2023 , we had no 
commercial paper outstanding.
As of December 31, 2023 , we had $10.0 billion  of revolving credit facilities, $4.0 billion  expiring in April 2024  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.
As of December 31, 2023 , we had senior unsecured notes outstanding with a total carrying value of $12.9 billion  
with short-term and long-term future interest payments of $214 million  and $3.6 billion , respectively. For additional 
information, see Note 6  of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on 
Form 10-K.
We primarily utilize contract manufacturers for the assembly of our servers used in our technical infrastructure 
and devices we sell. We have agreements where we may purchase components directly from suppliers and then 
supply these components to contract manufacturers for use in the assembly of the servers and d evice s. Certain of 
these arrangements result in a portion of the cash received from and paid to the contract manufacturers to be 
presented as financing activities in the Consolidated Statements of Cash Flows included in Item 8 of this Annual 
Report on F orm 10-K.
Share Repurchase Program
During 2023  we repurchased and subsequently retired 528 million  shares for $62.2 billion .
In April 2023, 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 December 31, 2023, $36.3 billion  remains available for Class A and 
Class C share repurchases.
The following table presents Class A and Class C shares repurchased and subsequently retired (in millions):
Year Ended December 31, 2022 Year Ended December 31, 2023
Shares Amount Shares Amount
Class A share repurchases 61$ 6,719 78$ 9,316


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Class C share repurchases 469  52,577 450  52,868 
Total share repurchases(1)530 $ 59,296 528 $ 62,184 
(1)         Shares repurchased include unsettled repurchases as of December 31, 2023 .
For additional information, see Note 11  of the Notes to Consolidated Financial Statements included in Item 8 of 
this Annual Report on Form 10-K.Table of Contents Alphabet Inc.
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European Commission Fines
In 2017, 2018 and 2019, the EC announced decisions that certain actions taken by Google infringed European 
competition law and imposed fines of €2.4 billion  ($2.7 billion  as of June 27, 2017 ), €4.3 billion  ($5.1 billion  as of 
June 30, 2018 ), and €1.5 billion  ($1.7 billion  as of March 20, 2019 ), respectively. On September 14, 2022, the General 
Court reduced the 2018 fine from €4.3 billion  to €4.1 billion. We subsequently filed an appeal to the European Court of 
Justice.
While each EC decision is under appeal, we included the fines in accrued expenses and other current liabilities 
on our Consolidated Balance Sheets as we provided bank guarantees (in lieu of a cash payment) for the fines. For 
additional information, see Note 10  of the Notes to Consolidated Financial Statements included in Item 8 of this Annual 
Report on Form 10-K.
Taxes
As of December 31, 2023 , we had income taxes payabl e of $4.2 billion , of which $2.1 billion  was short-term, 
related to a one-time transition tax payable incurred as a result of the U.S. Tax Cuts and Jobs Act ("Tax Act").  As 
permitted by the Tax Act, we will pay the transition tax in annual interest-free installments through 2025 . We also have 
long-term taxes payable  of $6.3 billion  primarily related to uncertain tax positions as of December 31, 2023 .
Purchase Commitments and Other Contractual Obligations
As of December 31, 2023 , we had material purchase commitments and other contractual obligations of $45.9 
billion , of which $31.6 billion  was short-term. These amounts primarily consist of p urchase orders for certain technical 
infrastructure as well as  the non-cancelable portion or the minimum cancellation fee in certain agreements related to 
commitments to purchase licenses, including content licenses, inventory and network capacity . For those agreements 
with variable terms, we do not estimate the non-cancelable obligation beyond any minimum quantities and/or pricing as


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of December 31, 2023 . In certain instances, the amount of our contractual obligations may change based on the 
expected timing of order fulfillment from our suppliers.  For more  information related to our content licenses, see Note 
10 of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
In addition, we regularly enter into multi-year, non-cancellable agreements to purchase renewable energy and 
energy attributes, such as renewable energy certificates. These agreements do not include a minimum dollar 
commitment. The amounts to be paid under these agreements are based on the actual volumes to be generated and 
are not readily determinable.
Critical Accounting Estimates
We prepare our consolidated financial statements in accordance with GAAP. In doing so, we have to make 
estimates and assumptions. Our critical accounting estimates are those estimates that involve a significant level of 
uncertainty at the time the estimate was made, and changes in them have had or are reasonably likely to have a 
material effect on our financial condition or results of operations. Accordingly, actual results could differ materially from 
our estimates. We base our estimates on past experience and other assumptions that we believe are reasonable 
under the circumstances, and we evaluate these estimates on an ongoing basis. We have reviewed our critical 
accounting estimates with the Audit and Compliance Committee of our Board of Directors.
For a summary of significant accounting policies and the effect on our financial statements, see Note 1  of the 
Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.
Fair Value Measurements of Non-Marketable Equity Securities
We measure certain financial instruments at fair value on a nonrecurring basis, consisting primarily of our non-
marketable equity securities. These investments are accounted for under the measurement alternative method ("the 
measurement alternative") and are measured at cost, less impairment, subject to upward and downward adjustments 
resulting from observable price changes for identical or similar investments of the same issuer. These adjustments 
require quantitative assessments of the fair value of our securities, which may require the use of unobservable inputs. 
Adjustments are determined primarily based on a market approach as of the transaction date and involve the use of 
estimates using the best information available, which may include cash flow projections or other available market data .


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Non-marketable equity securities are also evaluated for impairment, based on qualitative factors including the 
companies' financial and liquidity position and access to capital resources, among others. When indicators of 
impairment exist, we prepare quantitative measurements of the fair value of our equity investments using a market 
approach or an income approach, which requires judgment and the use of unobservable inputs, including discount 
rates, investee revenues and costs, and comparable market data of private and public companies, among others. Table of Contents Alphabet Inc.
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When the quantitative remeasurements of fair value indicate an impairment exists, we write down the investment to its 
current fair value.
We also have compensation arrangements with payouts based on realized returns from certain investments, i.e. 
performance fees. We record compensation expense based on the estimated payouts on an ongoing basis, which may 
result in expense recognized before investment returns are realized and compensation is paid and may require the use 
of unobservable inputs.
Property and Equipment
We assess the reasonableness of the useful lives of our property and equipment periodically as well as when 
other changes occur, such as when there are changes to ongoing business operations, changes in the planned use 
and utilization of assets, or technological advancements, that could indicate a change in the period over which we 
expect to benefit from the assets. 
Income Taxes
We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating 
our uncertain tax positions and determining our provision for income taxes.
Recording an uncertain tax position involves various qualitative considerations, including evaluation of 
comparable and resolved tax exposures, applicability of tax laws, and likelihood of settlement. We evaluate uncertain 
tax positions periodically, considering changes in facts and circumstances, such as new regulations or recent judicial 
opinions, as well as the status of audit activities by taxing authorities. Although we believe we have adequately 
reserved for our uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not 
be different. To the extent that the final tax outcome of these matters is different than the amounts recorded, such 
differences will affect the provision for income taxes and the effective tax rate in the period in which such determination 
is made.
The provision for income taxes includes the effect of reserve provisions and changes to reserves as well as the 
related net interest and penalties. In addition, we are subject to the continuous examination of our income tax returns 
by the IRS and other tax authorities which may assert assessments against us. We regularly assess the likelihood of 
adverse outcomes resulting from these examinations and assessments to determine the adequacy of our provision for 
income taxes .
Loss Contingencies
We are regularly subject to claims, lawsuits, regulatory and government investigations, other proceedings, and 
consent orders involving competition, intellectual property, privacy, data security , tax and related compliance, labor and


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employment, commercial disputes, content generated by our users, goods and services offered by advertisers or 
publishers using our platforms, personal injury consumer protection,  and other matters. Certain of these matters 
include speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe 
that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a 
loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss  in Note 10  of 
the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K. 
We evaluate, on a regular basis, developments in our legal matters that could affect the amount of liability that 
has been previously accrued, and the matters and related reasonably possible losses disclosed, and make 
adjustments and changes to our disclosures. Significant judgment is required to determine both the likelihood and the 
estimated amount of a loss related to such matters. Until the final resolution of such matters, there may be an 
exposure to loss in excess of the amount recorded, and such amounts could be material.
Change in Accounting Estimate
In January 2023, we completed an assessment of the useful lives of our server s and network equipment resulting 
in a change in the estimated useful life of our servers and certain network equipment to six years. This change in 
accounting estimate was effective beginning fiscal year 2023. For additional information, see Note 1  of the Notes to 
Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K .Table of Contents Alphabet Inc.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to financial market risks, including changes in foreign currency exchange rates, interest rates, 
and equity investment risks. 
Foreign Currency Exchange Risk
We transact business globally in multiple currencies. International revenues, as well as costs and expenses 
denominated in foreign currencies, expose us to the risk of fluctuations in foreign currency exchange rates against the 
U.S. dollar. As discussed below, we enter into derivative instruments to hedge foreign currency risk. Principal 
currencies hedged included the Australian dollar, British pound, Canadian dollar, Euro, and Japanese yen.  For the 
purpose of analyzing foreign currency exchange risk, we considered the historical trends in foreign currency exchange 
rates and determined that it was reasonably possible that adverse changes in exchange rates of 10% could be 
experienced .
We use foreign currency forward and option contracts to offset the foreign exchange risk on assets and liabilities 
denominated in currencies other than the functional currency of the subsidiary. These forward and option contracts 
reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on our assets and 
liabilities. The foreign currency gains and losses on these assets and liabilities are recorded in OI&E, which are offset 
by the gains and losses on the forward and option contracts.
If an adverse 10% foreign currency exchange rate change was applied to total monetary assets, liabilities, and 
commitments denominated in currencies other than the functional currencies at the balance sheet date, it would have 
resulted in an adverse effect on income before income taxes of approxima tely $136 million  and $503 million  as of 
December 31, 2022  and 2023 , respectively, after consideration of the effect of foreign exchange contracts in place for 
the years ended December 31, 2022  and 2023 .
We use foreign currency forward and option contracts, including collars (an option strategy comprised of a 
combination of purchased and written options) to protect forecasted U.S. dollar-equivalent earnings from changes in 
foreign currency exchange rates.  When the U.S. dollar strengthens, gains from foreign currency forward and option 
contacts reduce the foreign currency losses related to our earnings. When the U.S. dollar weakens, losses from foreign


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currency forward and option contracts offset the foreign currency gains related to our earnings. These hedging 
contracts reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements. We designate 
these contracts as cash flow hedges for accounting purposes. We reflect the gains or losses of foreign currency spot 
rate changes as a component of accumulated other comprehensive income (AOCI) and subsequently reclassify them 
into revenues to offset the hedged exposures as they occur. 
If the U.S. dollar weakened by 10% as of December 31, 2022  and 2023 , the amount recorded in AOCI related to 
our cash flow hedges before tax effect would have been approximately  $1.3 billion  and  $1.5 billion  lower as of 
December 31, 2022  and 2023 , respectively. The change in the value recorded in AOCI would be expected to offset a 
corresponding foreign currency change in forecasted hedged revenues when recognized.
We use foreign exchange forward contracts designated as net investment hedges to hedge the foreign currency 
risks related to investment in foreign subsidiaries. These forward contracts serve to offset the foreign currency 
translation risk from our foreign operations.
If the U.S. dollar weakened by 10%, the amount recorded in cumulative translation adjustment (CTA) within AOCI 
related to our net investment hedges before tax effect would have been approximately $903 million  and $946 million  
lower as of December 31, 2022  and 2023 , respectively. The change in value recorded in CTA would be expected to 
offset a corresponding foreign currency translation gain or loss from our investment in foreign subsidiaries.
Interest Rate Risk
Our Corporate Treasury investment strategy is to achieve a return that w ill allow us to preserve capital and 
maintain liquidity. We invest primarily in debt securities, including government bonds, corporate debt securities, 
mortgage-backed and asset-backed securities, money market and other funds, time deposits, and interest rate 
derivatives. By policy, we limit the amount of credit exposure to any one issuer. Our investments in both fixed rate and 
floating rate interest earning securities carry a degree of interest rate risk. Fixed rate securities may have their fair 
market value adversely affected due to a rise in interest rates, while floating rate securities may produce less income


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than predicted if interest rates fall. Unrealized gains or losses on our marketable debt securities are primarily due to 
interest rate fluctuations as compared to interest rates at the time of purchase. For certain fixed and variable rate debt 
securities, we have elected the fair value option for which changes in fair value are recorded in OI&E. We measure 
securities for which we have not elected the fair value option at fair value with gains and losses recorded in AOCI until 
the securities are sold, less any expected credit losses. Table of Contents Alphabet Inc.
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We use value-at-risk (VaR) analysis to determine the potential effect of fluctuations in interest rates on the value 
of our marketable debt security portfolio. The VaR is the expected loss in fair value, for a given confidence interval, for 
our investment portfolio due to adverse movements in interest rates. We use a variance/covariance VaR model with 
95% confidence interval. The estimated one-day loss in fair value of marketable debt securities as of December 31, 
2022  and 2023  are shown below (in millions):
 As of December 31,12-Month Average 
As of December 31,
 2022 2023 2022 2023
Risk category - interest rate $ 256 $ 296 $ 198 $ 271 
Actual future gains and losses associated with our marketable debt security portfolio may differ materially from the 
sensitivity analyses performed as of December 31, 2022  and 2023  due to the inherent limitations associated with 
predicting the timing and amount of changes in interest rates and our actual exposures and positions. VaR analysis is 
not intended to represent actual losses but is used as a risk estimation.
Equity Investment Risk
Our marketable and non-marketable equity securities are subject to a wide variety of market-related risks that 
could substantially reduce or increase the fair value of our holdings.
Our marketable equity securities are publicly traded stocks or funds and our non-marketable equity securities are 
investments in privately held companies, some of which are in the startup or development stages.
We record marketable equity securities not accounted for under the equity method at fair value based on readily 
determinable market values, of which publicly traded stocks and mutual funds are subject to market price volatility, and 
represent $5.2 billion  and $6.0 billion  of our investments as of December 31, 2022  and 2023 , respectively. A 
hypothetical adverse price change of 10% on our December 31, 2023  balance would decrease the fair value of 
marketable equity securities by $597 million . From time to time, we may enter into derivatives to hedge the market 
price risk on certain of our marketable equity securities.
Our non-marketable equity securities not accounted for under the equity method are adjusted to fair value for


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observable transactions for identical or similar investments of the same issuer or impairment (referred to as the 
measurement alternative). The fair value measured at the time of the observable transaction is not necessarily an 
indication of the current fair value as of the balance sheet date. These investments, especially those that are in the 
early stages, are inherently risky because the technologies or products these companies have under development are 
typically in the early phases and may never materialize, and they may experience a decline in financial condition, 
which could result in a loss of a substantial part of our investment in these companies. Valuations of our equity 
investments in private companies are inherently more complex due to the lack of readily available market data and 
observable transactions at lower valuations could result in significant losses. In addition, global economic conditions 
could result in additional volatility. The success of our investment in any private company is also typically dependent on 
the likelihood of our ability to realize appreciation in the value of investments through liquidity events such as public 
offerings, acquisitions, private sales or other market events. Changes in the valuation of non-marketable equity 
securities may not directly correlate with changes in valuation of marketable equity securities. As of December 31, 
2022  and 2023 , the carrying value of our non-marketable equity securities, which were accounted for under the 
measurement alternative, was $28.5 billion  and $28.8 billion , respectively. 
The carrying values of our equity method investments, which totaled approximately $1.7 billion  as of 
December 31, 2022  and 2023 , generally do not fluctuate based on market price changes. However, these investments 
could be impaired if the carrying value exceeds the fair value and is not expected to recover.
For additional information about our equity investments, see Note 1  and Note 3  of the Notes to Consolidated 
Financial Statements included in Item 8 of this Annual Report on Form 10-K.Table of Contents Alphabet Inc.
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Alphabet Inc.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
 Page
Reports of Independent Registered Public Accounting Firm  (PCAOB ID: 42) 48
Financial Statements:
Consolidated Balance Sheets 51
Consolidated Statements of Income 52
Consolidated Statements of Comprehensive Income 53
Consolidated Statements of Stockholders’ Equity 54
Consolidated Statements of Cash Flows 55
Notes to Consolidated Financial Statements 56Table of Contents Alphabet Inc.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of Alphabet Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Alphabet Inc. (the Company) as of December 31, 
2022  and 2023 , the related consolidated statements of income, comprehensive income, stockholders' equity and cash 
flows for each of the three years in the period ended December 31, 2023 , and the related notes and financial 
statement schedule listed in the Index at Item 15 (collectively referred to as the “consolidated financial statements”). In 
our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the 
Company at December 31, 2022  and 2023 , and the results of its operations and its cash flows for each of the three 
years in the period ended December 31, 2023 , in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United 
States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023 , based on criteria 
established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the 
Treadway Commission (2013 framework), and our report dated January 30, 2024  expressed an unqualified opinion 
thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an 
opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with 
the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal 
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether the financial statements are free of material 
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material 
misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to


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those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in 
the financial statements. Our audits also included evaluating the accounting principles used and significant estimates 
made by management, as well as evaluating the overall presentation of the financial statements. We believe that our 
audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial 
statements that was communicated or required to be communicated to the audit committee and that: (1) relates to 
accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, 
subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion 
on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter 
below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates. Table of Contents Alphabet Inc.
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Loss Contingencies 
Description of 
the MatterThe Company is regularly subject to claims, lawsuits, regulatory and government investigations, 
other proceedings, and consent orders involving competition, intellectual property, data privacy and 
security, tax and related compliance, labor and employment, commercial disputes, content 
generated by its users, goods and services offered by advertisers or publishers using their 
platforms, personal injury, consumer protection, and other matters. As described in Note 10 to the 
consolidated financial statements “Commitments and contingencies” such claims, lawsuits, 
regulatory and government investigations, other proceedings, and consent orders could result in 
adverse consequences.
Significant judgment is required to determine both the likelihood, and the estimated amount, of a 
loss related to such matters. Auditing management’s accounting for and disclosure of loss 
contingencies from these matters involved challenging and subjective auditor judgment in 
assessing the Company’s evaluation of the probability of a loss, and the estimated amount or 
range of loss.
How We 
Addressed the 
Matter in Our 
AuditWe tested relevant controls over the identified risks associated with management’s accounting for 
and disclosure of these matters. This included controls over management’s assessment of the 
probability of incurrence of a loss and whether the loss or range of loss was reasonably estimable 
and the development of related disclosures.
Our audit procedures included gaining an understanding of previous rulings and the status of 
ongoing lawsuits, reviewing letters addressing the matters from internal and external legal counsel, 
meeting with internal legal counsel to discuss the allegations, and obtaining a representation letter 
from management on these matters. We also evaluated the Company’s disclosures in relation to 
these matters.
/s/ Ernst & Young LLP
We have served as the Company's auditor since 1999.
San Jose, California
January 30, 2024Table of Contents Alphabet Inc.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of Alphabet Inc.
Opinion on Internal Control Over Financial Reporting
We have audited Alphabet Inc.’s internal control over financial reporting as of December 31, 2023, based on criteria 
established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the 
Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Alphabet Inc. (the Company) maintained, 
in all material respects, effective internal control over financial reporting as of December 31, 2023, based on the COSO 
criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United 
States) (PCAOB), the 2023 consolidated financial statements of the Company and our report dated January 30, 2024 
expressed an unqualified opinion thereon. 
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its 
assessment of the effectiveness of internal control over financial reporting included in the accompanying 
Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the 
Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with 
the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal 
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was 
maintained in all material respects. 
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a 
material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on 
the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We 
believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding 
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with


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generally accepted accounting principles. A company’s internal control over financial reporting includes those policies 
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the 
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are 
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting 
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations 
of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely 
detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on 
the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become 
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may 
deteriorate.
/s/ Ernst & Young LLP
San Jose, California
January 30, 2024Table of Contents Alphabet Inc.
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Alphabet Inc.
CONSOLIDATED BALANCE SHEETS
(in millions, except par value per share amounts)
As of December 31,
2022 2023
Assets
Current assets:
Cash and cash equivalents $ 21,879 $ 24,048 
Marketable securities  91,883  86,868 
Total cash, cash equivalents, and marketable securities  113,762  110,916 
Accounts receivable, net  40,258  47,964 
Other current assets  10,775  12,650 
Total current assets  164,795  171,530 
Non-marketable securities  30,492  31,008 
Deferred income taxes  5,261  12,169 
Property and equipment, net  112,668  134,345 
Operating lease assets  14,381  14,091 
Goodwill  28,960  29,198 
Other non-current assets  8,707  10,051 
Total assets $ 365,264 $ 402,392 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 5,128 $ 7,493 
Accrued compensation and benefits  14,028  15,140 
Accrued expenses and other current liabilities  37,866  46,168 
Accrued revenue share  8,370  8,876 
Deferred revenue  3,908  4,137 
Total current liabilities  69,300  81,814 
Long-term debt  14,701  13,253 
Deferred revenue, non-current  599  911 
Income taxes payable, non-current  9,258  8,474 
Deferred income taxes  514  485 
Operating lease liabilities  12,501  12,460 
Other long-term liabilities  2,247  1,616 
Total liabilities  109,120  119,013 
Commitments and Contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.001  par value per share, 100 shares authorized; no shares 
issued and outstanding  0  0


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issued and outstanding  0  0 
Class A, Class B, and Class C stock and additional paid-in capital, $0.001  par value 
per share: 300,000  shares authorized (Class A 180,000 , Class B 60,000 , Class C 
60,000 ); 12,849  (Class A 5,964 , Class B 883, Class C 6,002 ) and 12,460  (Class A 
5,899 , Class B 870, Class C 5,691 ) shares issued and outstanding  68,184  76,534 
Accumulated other comprehensive income (loss)  (7,603)  (4,402) 
Retained earnings  195,563  211,247 
Total stockholders’ equity  256,144  283,379 
Total liabilities and stockholders’ equity $ 365,264 $ 402,392 
See accompanying notes.Table of Contents Alphabet Inc.
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Alphabet Inc.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)
 Year Ended December 31,
 2021 2022 2023
Revenues $ 257,637 $ 282,836 $ 307,394 
Costs and expenses:
Cost of revenues  110,939  126,203  133,332 
Research and development  31,562  39,500  45,427 
Sales and marketing  22,912  26,567  27,917 
General and administrative  13,510  15,724  16,425 
Total costs and expenses  178,923  207,994  223,101 
Income from operations  78,714  74,842  84,293 
Other income (expense), net  12,020  (3,514)  1,424 
Income before income taxes  90,734  71,328  85,717 
Provision for income taxes  14,701  11,356  11,922 
Net income $ 76,033 $ 59,972 $ 73,795 
Basic net income per share of Class A, Class B, and Class C stock $ 5.69 $ 4.59 $ 5.84 
Diluted net income per share of Class A, Class B, and Class C stock $ 5.61 $ 4.56 $ 5.80 
See accompanying notes.Table of Contents Alphabet Inc.
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Alphabet Inc.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
 Year Ended December 31,
 2021 2022 2023
Net income $ 76,033 $ 59,972 $ 73,795 
Other comprehensive income (loss):
Change in foreign currency translation adjustment  (1,442)  (1,836)  735 
Available-for-sale investments:
Change in net unrealized gains (losses)  (1,312)  (4,720)  1,344 
Less: reclassification adjustment for net (gains) losses included in 
net income  (64)  1,007  1,168 
Net change, net of income tax benefit (expense) of $394 , $1,056 , 
and $(698)  (1,376)  (3,713)  2,512 
Cash flow hedges:
Change in net unrealized gains (losses)  716  1,275  168 
Less: reclassification adjustment for net (gains) losses included in 
net income  (154)  (1,706)  (214) 
Net change, net of income tax benefit (expense) of $(122) , $110 , 
and $2  562  (431)  (46) 
Other comprehensive income (loss)  (2,256)  (5,980)  3,201 
Comprehensive income $ 73,777 $ 53,992 $ 76,996 
See accompanying notes.Table of Contents Alphabet Inc.
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Alphabet Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in millions)
 Class A, Class B, Class C 
Stock and
Additional Paid-In CapitalAccumulated
Other
Comprehensive
Income (Loss)Retained
EarningsTotal
Stockholders’
Equity  Shares Amount
Balance as of December 31, 2020  13,504 $ 58,510 $ 633 $ 163,401 $ 222,544 
Stock issued  145  12  0  0  12 
Stock-based compensation expense  0  15,539  0  0  15,539 
Tax withholding related to vesting of 
restricted stock units and other  0  (10,273)  0  0  (10,273) 
Repurchases of stock  (407)  (2,324)  0  (47,950)  (50,274) 
Sale of interest in consolidated entities  0  310  0  0  310 
Net income  0  0  0  76,033  76,033 
Other comprehensive income (loss)  0  0  (2,256)  0  (2,256) 
Balance as of December 31, 2021  13,242  61,774  (1,623)  191,484  251,635 
Stock issued  137  8  0  0  8 
Stock-based compensation expense  0  19,525  0  0  19,525 
Tax withholding related to vesting of 
restricted stock units and other  0  (9,754)  0  (1)  (9,755) 
Repurchases of stock  (530)  (3,404)  0  (55,892)  (59,296) 
Sale of interest in consolidated entities  0  35  0  0  35 
Net income  0  0  0  59,972  59,972


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Other comprehensive income (loss)  0  0  (5,980)  0  (5,980) 
Balance as of December 31, 2022  12,849  68,184  (7,603)  195,563  256,144 
Stock issued  139  0  0  0  0 
Stock-based compensation expense  0  22,578  0  0  22,578 
Tax withholding related to vesting of 
restricted stock units and other  0  (10,164)  0  9  (10,155) 
Repurchases of stock  (528)  (4,064)  0  (58,120)  (62,184) 
Net income  0  0  0  73,795  73,795 
Other comprehensive income (loss)  0  0  3,201  0  3,201 
Balance as of December 31, 2023  12,460 $ 76,534 $ (4,402) $ 211,247 $ 283,379 
See accompanying notes.Table of Contents Alphabet Inc.
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Alphabet Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 Year Ended December 31,
 2021 2022 2023
Operating activities
Net income $ 76,033 $ 59,972 $ 73,795 
Adjustments:
Depreciation of property and equipment  10,273  13,475  11,946 
Stock-based compensation expense  15,376  19,362  22,460 
Deferred income taxes  1,808  (8,081)  (7,763) 
(Gain) loss on debt and equity securities, net  (12,270)  5,519  823 
Other  1,955  3,483  4,330 
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net  (9,095)  (2,317)  (7,833) 
Income taxes, net  (625)  584  523 
Other assets  (1,846)  (5,046)  (2,143) 
Accounts payable  283  707  664 
Accrued expenses and other liabilities  7,304  3,915  3,937 
Accrued revenue share  1,682  (445)  482 
Deferred revenue  774  367  525 
Net cash provided by operating activities  91,652  91,495  101,746 
Investing activities
Purchases of property and equipment  (24,640)  (31,485)  (32,251) 
Purchases of marketable securities  (135,196)  (78,874)  (77,858) 
Maturities and sales of marketable securities  128,294  97,822  86,672 
Purchases of non-marketable securities  (2,838)  (2,531)  (3,027) 
Maturities and sales of non-marketable securities  934  150  947 
Acquisitions, net of cash acquired, and purchases of intangible assets  (2,618)  (6,969)  (495)


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Other investing activities  541  1,589  (1,051) 
Net cash used in investing activities  (35,523)  (20,298)  (27,063) 
Financing activities
Net payments related to stock-based award activities  (10,162)  (9,300)  (9,837) 
Repurchases of stock  (50,274)  (59,296)  (61,504) 
Proceeds from issuance of debt, net of costs  20,199  52,872  10,790 
Repayments of debt  (21,435)  (54,068)  (11,550) 
Proceeds from sale of interest in consolidated entities, net  310  35  8 
Net cash used in financing activities  (61,362)  (69,757)  (72,093) 
Effect of exchange rate changes on cash and cash equivalents  (287)  (506)  (421) 
Net increase (decrease) in cash and cash equivalents  (5,520)  934  2,169 
Cash and cash equivalents at beginning of period  26,465  20,945  21,879 
Cash and cash equivalents at end of period $ 20,945 $ 21,879 $ 24,048 
Supplemental disclosures of cash flow information
Cash paid for income taxes, net of refunds $ 13,412 $ 18,892 $ 19,164 
See accompanying notes.Table of Contents Alphabet Inc.
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Alphabet Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1.    Summary of Significant Accounting Policies
Nature of Operations
Google was incorporate d in California in September 1998 and re-incorporated in the State of Delaware in August 
2003. In 2015, we implemented a holding company reorganization, and as a result, Alphabet Inc. ("Alphabet") became 
the successor issuer to Google.
We generate revenues by delivering relevant, cost-effective online advertising; cloud-based solutions that provide 
enterprise customers with infrastructure and platform services as well as communication and collaboration tools; sales 
of other products and services, such as  fees received for consumer subscription-based products, apps and in-app 
purchases, and devices .
Basis of Consolidation
The consolidated financial statements of Alphabet include the accounts of Alphabet and entities consolid ated 
under the variable interest and voting models. Intercompany balances and transactions have been eliminated.
Use of Estimates
Preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and 
assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. 
Actual results could differ materially from these estimates due to uncertainties. On an ongoing basis, we evaluate our 
estimates, including those related to the allowance for credit losses; content licenses;  contingent liabilities; fair values 
of financial instruments and goodwill; income taxes; inventory; and useful lives of property and equipment,  among 
others. We base our estimates on assumptions, both historical and forward looking, that are believed to be reasonable, 
and the results of which form the basis for making judgments about the carrying values of assets and liabilities.
In January 2023, we completed an assessment of the useful lives of our servers and network equipment and 
adjusted the estimated useful life of our servers from four years  to six years  and the estimated useful life of certain 
network equipment from five years  to six years . This change in accounting estimate was effective beginning in fiscal 
year 2023. Based on the carrying value of servers and certain network equipment as of December 31, 2022, and those 
placed in service during the year ended December 31, 2023, the effect of this change in estimate was a reduction in


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depreciation expense of $3.9 billion  and an increase in net income of $3.0 billion , or $0.24  per basic and $0.24  per 
diluted share,  for the year ended December 31, 2023.
Revenue Recognition
Revenues are recognized when control of the promised goods or services is transferred to our customers, and 
the collectibility of an amount that we expect in exchange for those goods or services is probable.  Sales and other 
similar taxes are excluded from revenues. 
Advertising Revenues
We generate advertising revenues primarily by delivering advertising on:
•Google Search and other properties, including revenues from traffic generated by search distribution partners 
who use Google.com as their default search in browsers, toolbars, etc. and other Google owned and operated 
properties like Gmail, Google Maps, and Google Play;
•YouTube properties; and
•Google Network properties, including revenues from Google Network properties participating in AdMob, 
AdSense, and Google Ad Manager.
Our customers generally purchase advertising inventory through Google Ads, Google Ad Manager, Google 
Display & Video 360, and Google Marketing Platform, among others.
We offer advertising by delivering both performance and brand advertising. We recognize revenues for 
performance advertising when a user engages with the advertisement . For brand advertising, we recognize revenues 
when the ad is displayed, or a user views the ad.
For ads placed on Google Network properties, we evaluate whether we are the principal  (i.e., report revenues on 
a gross basis) or agent (i.e., report revenues on a net basis). Generally, we report advertising revenues for ads placed 
on Google Network properties on a gross basis, that is, the amounts billed to our customers are recorded as revenues, Table of Contents Alphabet Inc.
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and amounts paid to Google Network partners are recorded as cost of revenues. Where we are the principal, we 
control the advertising inventory before it is transferred to our customers. Our control is evidenced by our sole ability to 
monetize the advertising inventory before it is transferred to our customers and is further supported by us being 
primarily responsible to our customers and having a level of discretion in establishing pricing.
Google  Subscriptions, Platforms, and Device s
Google subscriptions, platforms, and devices revenues consist of revenues from:
•consumer subscriptions, which primarily include revenues from YouTube services, such YouTube TV, YouTube 
Music and Premium, and NFL Sunday Ticket, as well as Google One;
•platforms, which primarily include revenues from Google Play from the sales of apps and in-app purchases;
•devices, which primarily include sales of the Pixel family of devices; and
•other products and services.
Subscription revenues are recognized ratably over the period of the subscription, primarily monthly . We report 
revenues from Google Play app sales and in-app purchases on a net basis, because our performance obligation is to 
facilitate a transaction between app developers and end users, for which we earn a service fee. 
Google Cloud Revenues
Google Cloud revenues consist of revenues from:
•Google Cloud Platform, which generates consumption-based fees and subscriptions for infrastructure, 
platform, and other services. These services provide access to solutions such as cybersecurity, databases, 
analytics, and AI offerings including our AI infrastructure, Vertex AI platform, and Duet AI for Google Cloud;
•Google Workspace, which includes subscriptions for cloud-based communication and collaboration tools for 
enterprises, such as Calendar, Gmail, Docs, Drive, and Meet, with integrated features like Duet AI in Google 
Workspace; and
•other enterprise services.
Our cloud services are generally provided on either a consumption or subscription basis and may have contract 
terms longer than a year. Revenues related to cloud services provided on a consumption basis are recognized when 
the customer utilizes the services, based on the quantity of services consumed. Revenues related to cloud services 
provided on a subscription basis are recognized ratably over the contract term as the customer receives and 
consumes the benefits of the cloud services.
Arrangements with Multiple Performance Obligations
Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate


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revenues to each performance obligation based on its relative standalone selling price. We generally determine 
standalone selling prices based on the prices charged to customers.
Customer Incentives and Credits
Certain customers receive cash-based incentives or credits, which are accounted for as variable consideration. 
We estimate these amounts based on the expected amount to be provided to customers and reduce revenues. We 
believe that there will not be significant changes to our estimates of variable consideration.
Sales Commissions
We expense sales commissions when incurred when the period of the expected benefit is one year or less. We 
recognize an asset for certain sales commissions and  amortize i f the expected benefit period is greater than one year. 
These costs are recorded within sales and marketing expenses.
Cost of Revenues
Cost of revenues consists of TAC and other costs of revenues.
•TAC includes: 
◦amounts paid to our distribution partners who make available our search access points and services. 
Our distribution partners include browser providers, mobile carriers, original equipment manufacturers, 
and software developers; and
◦amounts paid to Google Network partners primarily for ads displayed on their properties.Table of Contents Alphabet Inc.
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•Other cost of revenues includes:
◦compensation expense related to our data centers and other operations such as content review and 
customer and product support;
◦content acquisition costs, which are 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);
◦depreciation expense related to our technical infrastructure; and
◦inventory and other costs related to the devices we sell.
Software Development  Costs
We expense software development costs, including costs to develop software products or the software 
component of products to be sold, leased, or marketed to external users, before technological feasibility is reached. 
Technological feasibility is typically reached shortly before the release of such products. As a result, development costs 
that meet the criteria for capitalization were not material for the periods presented.
Software development costs also include costs to develop software to be used solely to meet internal needs and 
cloud-based applications used to deliver our services. We capitalize development costs related to these software 
applications once the preliminary project stage is complete and it is probable that the project will be completed and the 
software will be used to perform the function intended. Costs capitalized for developing such software applications 
were not material for the periods presented.
Stock-based Compensation  
Stock-based compensation (SBC)  primarily consists of Alphabet restricted stock units (RSUs). RSUs are equity 
classified and measured at the fair market value of the underlying stock at the grant date. We recognize RSU expense 
using the straight-line attribution method over the requisite service period and account for forfeitures as they occur.
For RSUs, shares are issued on the vesting dates net of the applicable statutory income tax withholding to be 
paid by us on behalf of our employees. As a result, fewer shares are issued than the number of RSUs outstanding, and 
the income tax withholding is recorded as a reduction to additional paid-in capital.
Additionally, SBC includes other stock-based awards, such as performance stock units (PSUs) that include 
market conditions and awards that may be settled in cash or the stock of certain Other Bet companies . PSUs and  
certain awards granted by Other Bet companies  are equity classified and expense is recognized over the requisite


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service period. Certain awards granted by Other Bet companies are liability classified and remeasured at fair value 
through settlement. The fair value of awards granted by Other Bet companies is based on the equity valuation of the 
respective Other Bet company.
Advertising and Promotional Expenses
We expense advertising and promotional costs in the period in which they are incurred.  For the years ended 
December 31, 2021 , 2022 , and 2023 , advertising and promotional expenses totaled approximately $7.9 billion , $9.2 
billion , and $8.7 billion , respectively.
Performance Fees
Performance fees refer to compensation arrangements with payouts based on realized returns from certain 
investments. We record compensation expense based on the estimated payouts on an ongoing basis, which may 
result in expense recognized before investment returns are realized and compensation is paid and may require the use 
of unobservable inputs . Performance fees are recorded as a component of OI&E.
Fair Value Measurements 
Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a 
liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that 
is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and 
liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based 
on the observability of the inputs available in the market used to measure fair value:
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active 
markets.Table of Contents Alphabet Inc.
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Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for 
identical or similar instruments in markets that are not active, and model-based valuation techniques for which all 
significant inputs are observable in the market or can be derived from observable market data. Where applicable, 
these models project future cash flows and discount the future amounts to a present value using market-based 
observable inputs including interest rate curves, foreign exchange rates, and credit ratings.
Level 3 - Unobservable inputs that are supported by little or no market activities.
The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of 
unobservable inputs when measuring fair value. The determination of fair value involves the use of appropriate 
valuation methods and relevant inputs into valuation models.
Our financial assets and liabilities that are measured at fair value on a recurring basis include cash equivalents, 
marketable securities, derivative financial instruments, and certain non-marketable debt securities. Our financial assets 
measured at fair value on a nonrecurring basis include non-marketable equity securities. Other financial assets and 
liabilities are carried at cost with fair value disclosed, if required.
We measure certain other instruments, including SBC awards settled in the stock of O ther Bet companies, and 
certain assets and liabilities acquired in a business combination, also at fair value on a nonrecurring basis. 
Financial Instruments
Our financial instruments include cash, cash equivalents, marketable and non-marketable securities, derivative 
financial instruments and accounts receivable.
Credit Risks
We are subject to credit risk primarily from cash equivalents, marketable debt securities, derivative financial 
instruments, including foreign exchange contracts, and accounts receivable.  We manage our credit risk exposure 
through timely assessment of our counterparty creditworthiness, credit limits and use of collateral management. 
Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts 
receivable are typically unsecured and are derived from revenues earned from customers located around the world. 
We manage our credit risk exposure by performing ongoing evaluations to determine customer credit and we limit the 
amount of credit we extend. We generally do not require collateral from our customers.
Cash Equivalents
We invest excess cash primarily in government bonds, corporate debt securities, mortgage-backed and asset-
backed securities, time deposits, and money market funds.


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backed securities, time deposits, and money market funds.
Marketable Securities
We classify all marketable debt securities that have effective maturities of three months or less from the date of 
purchase as cash equivalents and those with effective maturities of greater than three months as marketable securities 
on our Consolidated Balance Sheets. We determine the appropriate classification of our investments in marketable 
debt securities at the time of purchase and reevaluate such designation at each balance sheet date. We have 
classified and accounted for our marketable debt securities as available-for-sale. After consideration of our risk versus 
reward objectives, as well as our liquidity requirements, we may sell these debt securities prior to their effective 
maturities. As we view these securities as available to support current operations, we classify highly liquid securities 
with maturities beyond 12 months as current assets under the caption marketable securities on the Consolidated 
Balance Sheets. We carry these securities at fair value, and report the unrealized gains and losses, net of taxes, as a 
component of stockholders’ equity, except for the changes in allowance for expected credit losses, which are recorded 
in OI&E. For certain marketable debt securities we have elected the fair value option, for which changes in fair value 
are recorded in OI&E. We determine any realized gains or losses on the sale of marketable debt securities on a 
specific identification method, and we record such gains and losses as a component of OI&E .
Our investments in marketable equity securities are measured at fair value with the related gains and losses, 
including unrealized, recognized in OI&E.  We classify our marketable equity securities subject to long-term lock-up 
restrictions beyond 12 months as other non-current assets on the Consolidated Balance Sheets.
Non-Marketable Securities
Non-marketable securities primarily consist of equity securities . We account for non-marketable equity securities 
through which we exercise significant influence but do not have control over the investee under the equity method. All 
other non-marketable equity securities that we hold are primarily accounted for under the measurement alternative. 
Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus Table of Contents Alphabet Inc.
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changes resulting from observable price changes in orderly transactions for identical or similar investments of the 
same issuer.  Adjustments are determined primarily based on a market approach  as of the transaction date and are 
recorded as a component of OI&E.
Non-marketable securities that do not have effective contractual maturity dates are classified as other non-
current assets on the Consolidated Balance Sheets.
Derivative Financial Instruments
See Note 3  for the accounting policy pertaining to derivative financial instruments. 
Accounts Receivable
Our payment terms for accounts receivable vary by the types and locations of our customers and the products or 
services offered. The term between invoicing and when payment is due is not significant. For certain products or 
services and customers, we require payment before the products or services are delivered to the customer. 
Additionally, accounts receivable includes amounts for services performed in advance of the right to invoice the 
customer.
We maintain an allowance for credit losses for accounts receivable, which is recorded as an offset to accounts 
receivable, and changes in such are classified as general and administrative expense in the Consolidated Statements 
of Income. We assess collectibility by reviewing accounts receivable on a collective basis where similar characteristics 
exist and on an individual basis when we identify specific customers with known disputes or collectibility issues. In 
determining the amount of the allowance for credit losses, we consider historical collectibility based on past due status 
and make judgments about the creditworthiness of customers based on ongoing credit evaluations. We also consider 
customer-specific information, current market conditions, and reasonable and supportable forecasts of future economic 
conditions.
Other
Our financial instruments also include debt and equity investments in companies with which we also entered into 
commercial arrangements at or near the same time.  For these transactions, judgment is required in assessing the 
substance of the arrangements, including assessing whether the components of the arrangements should be 
accounted for as separate transactions under the applicable GAAP, and determining the value of the components of 
the arrangements, including the fair value of the investments. Additionally, if our investment in such companies 
becomes impaired, any remaining performance obligations would be reassessed and may be reduced.
Impairment of Investments
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We periodically review our debt and non-marketable equity securities for impairment. 
For debt securities in an unrealized loss position, we determine whether a credit loss exists. The credit loss is 
estimated by considering available information relevant to the collectibility of the security and information about past 
events, current conditions, and reasonable and supportable forecasts. Any credit loss is recorded as a charge to OI&E, 
not to exceed the amount of the unrealized loss. Unrealized losses other than the credit loss are recognized in AOCI. If 
we have an intent to sell, or if it is more likely than not that we will be required to sell a debt security in an unrealized 
loss position before recovery of its amortized cost basis, we will write down the security to its fair value and record the 
corresponding charge as a component of OI&E. 
For non-marketable equity securities, including equity method investments, we consider whether impairment 
indicators exist by evaluating the companies' financial and liquidity position and access to capital resources, among 
other indicators. If the assessment indicates that the investment is impaired, we write down the investment to its fair 
value by recording the corresponding charge as a component of OI&E. We prepare quantitative measurements of the 
fair value of our equity investments using a market approach or an income approach.
Inventory
Inventory consists primarily of finished goods and is stated at the lower of cost and net realizable value. Cost is 
computed using the first-in, first-out method.
Variable Interest Entities
We determine at the inception of each arrangement whether an entity in which we have made an investment or in 
which we have other variable interests is considered a variable interest entity (VIE). We consolidate VIEs when we are 
the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct activities that most 
significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses Table of Contents Alphabet Inc.
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or benefits. If we are not the primary beneficiary in a VIE, we account for the investment or other variable interests in a 
VIE in accordance with applicable GAAP.
Periodically, we assess whether any changes in our interest or relationship with the entity affect our determination 
of whether the entity is a VIE and, if so, whether we are the primary beneficiary. 
Property and Equipment
Property and equipment includes the following categories: land and buildings, information technology assets, 
construction in progress, leasehold improvements, and furniture and fixtures. Land and buildings include land, offices, 
data centers, and related building improvements. Information technology assets include servers and network 
equipment. Construction in progress is the construction or development of property and equipment that have not yet 
been placed in service. 
Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the 
straight-line method over the estimated useful lives of the assets, which we regularly evaluate. Land is not depreciated. 
We depreciate buildings over periods of seven  to 25 years . We depreciate information technology assets generally 
over a period of six years  for servers and network equipment.  We depreciate leasehold improvements over the shorter 
of the remaining lease term or the estimated useful lives of the assets. Depreciation for buildings, information 
technology assets, leasehold improvements, and furniture and fixtures commences once they are ready for our 
intended use.
Goodwill
We allocate goodwill to reporting units based on the expected benefit from the business combination. We 
evaluate our reporting units periodically, as well as when changes in our operating segments occur. For changes in 
reporting units, we reassign goodwill using a relative fair value allocation approach. We test our goodwill for 
impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be 
impaired. Goodwill impairments were not material for the periods presented.
Leases
We determine if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-
lease components. Payments under our lease arrangements are primarily fixed. Non-lease components primarily 
include payments for maintenance and utilities. We combine fixed payments for non-lease components with lease 
payments and account for them together as a single lease component which increases the amount of our lease assets 
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and liabilities.
Certain lease agreements contain variable payments, which are expensed as incurred and not included in the 
lease assets and liabilities. These amounts  primarily  include  payments affected by the Consumer Price Index, and 
payments for maintenance and utilities.
Lease assets and liabilities are recognized at the present value of the future lease payments at the lease 
commencement date. The interest rate used to determine the present value of the future lease payments is our 
incremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental 
borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, 
and in economic environments where the leased asset is located. Our lease terms include periods under options to 
extend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the 
base, non-cancelable, lease term when determining the lease assets and liabilities. Lease assets also include any 
prepaid lease payments and lease incentives.
Operating lease assets and liabilities are included on our Consolidated Balance Sheets. The current portion of our 
operating lease liabilities is included in accrued expenses and other current liabilities, and the long-term portion is 
included in operating lease liabilities. Finance lease assets are included in property and equipment, net. Finance lease 
liabilities are included in accrued expenses and other current liabilities or long-term debt.
Operating lease expense (excluding variable lease costs) is recognized on a straight-line basis over the lease 
term.
Impairment of Long-Lived Assets
We review lease s, property and equipment, and intangible assets,  excluding goodwill, for impairment when 
events or changes in circumstances indicate the carrying amount may not be recoverable. The evaluation is performed 
at the lowest level of identifiable cash flows independent of other assets. We measure recoverability of these assets by 
comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected Table of Contents Alphabet Inc.
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to generate. If the carrying value of the assets or asset group is not recoverable, the impairment recognized is 
measured as the amount by which the carrying value exceeds its fair value. 
Income T axes
We account for income taxes using the asset and liability method, under which we recognize the amount of taxes 
payable or refundable for the current year and deferred tax assets and liabilities for the future tax consequences of 
events that have been recognized in our financial statements or tax returns. We measure current and deferred tax 
assets and liabilities based on provisions of enacted tax law. We evaluate the likelihood of future realization  of our 
deferred tax assets based on all available evidence and establish a valuation allowance to reduce deferred tax assets 
when it is more likely than not that they will not be realized or release a valuation allowance to increase deferred tax 
assets when it is more likely than not that they will be realized. We have elected to account for the tax effects of the 
global intangible low tax Income provision as a current period expense.
We recognize the financial statement effects of a tax position when it is more likely than not that, based on 
technical merits, the position will be sustained upon examination. The tax benefits of the position recognized in the 
financial statements are then measured based on the largest amount of benefit that is greater than 50% likely to be 
realized upon settlement with a taxing authority. In addition, we recognize interest and penalties related to 
unrecognized tax benefits as a component of the income tax provision.
Business Combinations
We include the results of operations of the businesses that we acquire as of the acquisition date. We allocate the 
purchase price of the acquisitions to the assets acquired and liabilities assumed based on their estimated fair values, 
except for revenue contracts acquired, which are recognized in accordance with our revenue recognition policy. The 
excess of the purchase price over the fair values of identifiable assets and liabilities is recorded as goodwill. 
Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred.
Foreign Currency
We translate the financial statements of our international subsidiaries to U.S. dollars using month-end exchange 
rates for assets and liabilities, and average rates for the annual period derived from month-end exchange rates for 
revenues, costs, and expenses. We record translation gains and losses in AOCI as a component of stockholders’


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equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction 
currency to functional currency as a component of foreign currency exchange gain (loss) in OI&E .
Recent  Accounting Pronouncements
In November 2023, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update 
(ASU) 2023-07 "Segment Reporting (Topic 280):Improvements to Reportable Segment Disclosures" which expands 
annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about 
significant segment expenses. ASU 2023-07  is effective for our annual periods beginning  January 1, 2024, and for 
interim periods beginning January 1, 2025, with early adoption permitted. We  are currently evaluating the potential 
effect that the updated standard will have on our financial statement disclosures.
In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax 
Disclosures"  to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and 
income taxes paid. ASU 2023-09  is effective for our annual periods beginning J anuary 1, 2025, with early adoption 
permitted. W e are currently evaluating the potential effect that the updated standard will have on our financial 
statement disclosures.
Prior Period Reclassifications
Certain amounts in prior periods have been reclassified to conform with current period presentation.Table of Contents Alphabet Inc.
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Note 2.    Revenues  
Disaggregated Revenues
The following table presents revenues disaggregated by type (in millions):
Year Ended December 31,
2021 2022 2023
Google Search & other $ 148,951 $ 162,450 $ 175,033 
YouTube ads  28,845  29,243  31,510 
Google Network  31,701  32,780  31,312 
Google advertising  209,497  224,473  237,855 
Google subscriptions, platforms, and devices  28,032  29,055  34,688 
Google Services total  237,529  253,528  272,543 
Google Cloud  19,206  26,280  33,088 
Other Bets  753  1,068  1,527 
Hedging gains (losses)  149  1,960  236 
Total revenues $ 257,637 $ 282,836 $ 307,394 
No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2021 , 
2022 , or 2023 . 
The following table presents revenues disaggregated by geography, based on the addresses of our customers (in 
millions):
Year Ended December 31,
 2021 2022 2023
United States $ 117,854  46 % $ 134,814  48 % $ 146,286  47 %
EMEA(1) 79,107  31  82,062  29  91,038  30 
APAC(1) 46,123  18  47,024  16  51,514  17 
Other Americas(1) 14,404  5  16,976  6  18,320  6 
Hedging gains (losses)  149  0  1,960  1  236  0 
Total revenues $ 257,637  100 % $ 282,836  100 % $ 307,394  100 %


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(1)Regions represent Europe, the Middle East, and Africa (EMEA); Asia-Pacific (APAC); and Canada and Latin America ("Other 
Americas").
Revenue Backlog
As of December 31, 2023 , we had $74.1 billion  of remaining performance obligations (“revenue backlog”), 
primarily related to Google Cloud. Our revenue backlog represents commitments in customer contracts for future 
services that have not yet been recognized as revenue. The estimated revenue backlog and timing of revenue 
recognition for these commitments is largely driven by our ability to deliver in accordance with relevant contract terms 
and when our customers utilize services . We expect to recognize approximately half of the revenue backlog as 
revenues over the next 24 months  with the remaining to be recognized thereafter. Revenue backlog includes related 
deferred revenue currently recorded as well as amounts that will be invoiced in future periods, and excludes contracts 
with an original expected term of one year or less and cancellable contracts.
Deferred Revenues
We record deferred revenues when cash payments are received or due in advance of our performance, including 
amounts which are refundable. Deferred revenues primarily relate to Google Cloud and Google subscriptions, 
platforms, and devices . Total deferred revenue as of December 31, 2022  was $4.5 billion , of which $2.4 billion  was 
recognized as revenues for the year ended December 31, 2023 .
Note 3.    Financial Instruments  
Fair Value Measurements
Investments Measured at Fair Value on a Recurring Basis
Cash, cash equivalents, and marketable equity securities are measured at fair value and classified within Level 1 Table of Contents Alphabet Inc.
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and Level 2 in the fair value hierarchy, because we use quoted prices for identical assets in active markets or inputs 
that are based upon quoted prices for similar instruments in active markets.
Debt securities are measured at fair value and classified within Level 2 in the fair value hierarchy, because we use 
quoted market prices to the extent available or alternative pricing sources and models utilizing market observable 
inputs to determine fair value. For certain marketable debt securities, we have elected the fair value option for which 
changes in fair value are recorded in OI&E. The fair value option was elected for these securities to align with the 
unrealized gains and losses from related derivative contracts.
The following tables summarize our cash, cash equivalents, and marketable securities measured at fair value on 
a recurring basis (in millions):
As of December 31, 2022
Fair Value 
HierarchyAdjusted 
CostGross 
Unrealized 
GainsGross 
Unrealized 
Losses Fair ValueCash and 
Cash 
EquivalentsMarketable 
Securities
Fair value changes 
recorded in other 
comprehensive income
Time deposits Level 2 $ 5,297 $ 0 $ 0 $ 5,297 $ 5,293 $ 4 
Government bonds Level 2 41,036  64  (2,045)  39,055  283  38,772 
Corporate debt securities Level 2 28,578  8  (1,569)  27,017  1  27,016 
Mortgage-backed and 
asset-backed securities Level 2 16,176  5  (1,242)  14,939  0  14,939 
Total investments with 
fair value change 
reflected in other 
comprehensive 
income(1)$ 91,087 $ 77 $ (4,856) $ 86,308 $ 5,577 $ 80,731 
Fair value adjustments 
recorded in net income
Money market funds Level 1 $ 7,234 $ 7,234 $ 0 
Current marketable 
equity securities(2)Level 1
 4,013  0  4,013


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4,013  0  4,013 
Mutual funds Level 2  339  0  339 
Government bonds Level 2  1,877  440  1,437 
Corporate debt securities Level 2  3,744  65  3,679 
Mortgage-backed and 
asset-backed securitiesLevel 2
 1,686  2  1,684 
Total investments with 
fair value change 
recorded in net 
income $ 18,893 $ 7,741 $ 11,152 
Cash  0  8,561  0 
Total $ 91,087 $ 77 $ (4,856) $ 105,201 $ 21,879 $ 91,883 
(1)Represents gross unrealized gains and losses for debt securities recorded to AOCI.
(2)The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $803 million  as of 
December 31, 2022  is included within other non-current assets.Table of Contents Alphabet Inc.
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As of December 31, 2023
Fair Value 
HierarchyAdjusted 
CostGross 
Unrealized 
GainsGross 
Unrealized 
Losses Fair ValueCash and 
Cash 
EquivalentsMarketable 
Securities
Fair value changes 
recorded in other 
comprehensive income
Time deposits Level 2 $ 2,628 $ 0 $ 0 $ 2,628 $ 2,628 $ 0 
Government bonds Level 2  38,106  233  (679)  37,660  1,993  35,667 
Corporate debt securities Level 2  22,457  112  (637)  21,932  0  21,932 
Mortgage-backed and 
asset-backed securities Level 2 17,243  88  (634)  16,697  0  16,697 
Total investments with 
fair value change 
reflected in other 
comprehensive 
income(1)$ 80,434 $ 433 $ (1,950) $ 78,917 $ 4,621 $ 74,296 
Fair value adjustments 
recorded in net income
Money market funds Level 1 $ 6,480 $ 6,480 $ 0 
Current marketable 
equity securities(2)Level 1 4,282  0 4,282
Mutual funds Level 2 311  0 311
Government bonds Level 2 1,952  347 1,605
Corporate debt securities Level 2 3,782  91 3,691
Mortgage-backed and 
asset-backed securitiesLevel 2
2,683  0 2,683
Total investments with 
fair value change 
recorded in net 
income $ 19,490 $ 6,918 $ 12,572 
Cash  0  12,509  0 
Total $ 80,434 $ 433 $ (1,950) $ 98,407 $ 24,048 $ 86,868 
(1)Represents gross unrealized gains and losses for debt securities recorded to AOCI.


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(2)The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.4 billion  as of 
December 31, 2023  is included within other non-current assets.
Investments Measured at Fair Value on a Nonrecurring Basis
Our non-marketable equity securities are investments in privately held companies without readily determinable 
market values. The carrying value of our non-marketable equity securities is adjusted to fair value upon observable 
transactions for identical or similar investments of the same issuer or impairment. Non-marketable equity securities 
that have been remeasured during the period based on observable transactions are classified within Level 2 or Level 3 
in the fair value hierarchy because we estimate the value based on valuation methods, including option  pricing models, 
market comparable approach, and common stock equivalent method,  which may include a combination of the 
observable transaction price at the transaction date and other unobservable inputs including volatility,  expected time to 
exit, risk free rate, and the rights, and obligations of the securities we hold.  These inputs significantly vary based on 
investment type. The fair value of non-marketable equity securities that have been remeasured due to impairment are 
classified within Level 3.
As of  December 31, 2023 , the carrying value of our non-marketable equity securities was $28.8 billion , of which 
$13.7 billion  were remeasured at fair value during the year ended December 31, 2023 , and primarily classified within 
Level 2 of the fair value hierarchy at the time of measurement. Table of Contents Alphabet Inc.
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Debt Securities
The following table summarizes the estimated fair value of investments in available-for-sale marketable debt 
securities by effective contractual maturity dates (in millions):
As of December 31, 
2023
Due in one year or less $ 11,231 
Due in one year through five years  41,477 
Due in five years through 10 years  15,351 
Due after 10 years  14,216 
Total $ 82,275 
The following tables present fair values and gross unrealized losses recorded to AOCI, aggregated by 
investment category and the length of time that individual securities have been in a continuous loss position (in 
millions):
 As of December 31, 2022
 Less than 12 Months 12 Months or Greater Total
 Fair ValueUnrealized
Loss Fair ValueUnrealized
Loss Fair ValueUnrealized
Loss
Government bonds $ 21,039 $ (1,004) $ 13,438 $ (1,041) $ 34,477 $ (2,045) 
Corporate debt securities  11,228  (440)  15,125  (1,052)  26,353  (1,492) 
Mortgage-backed and asset-backed 
securities  7,725  (585)  6,964  (657)  14,689  (1,242) 
Total $ 39,992 $ (2,029) $ 35,527 $ (2,750) $ 75,519 $ (4,779) 
 As of December 31, 2023
 Less than 12 Months 12 Months or Greater Total
 Fair ValueUnrealized
Loss Fair ValueUnrealized
Loss Fair ValueUnrealized
Loss
Government bonds $ 1,456 $ (22) $ 13,897 $ (657) $ 15,353 $ (679) 
Corporate debt securities  827  (5)  15,367  (592)  16,194  (597) 
Mortgage-backed and asset-backed 
securities  2,945  (26)  7,916  (608)  10,861  (634)


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Total $ 5,228 $ (53) $ 37,180 $ (1,857) $ 42,408 $ (1,910) 
We determine realized gains or losses on the sale or extinguishment of debt securities on a specific identification 
method. The following table summarizes gains and losses for debt securities, reflected as a component of OI&E (in 
millions): 
Year Ended December 31,
 2021 2022 2023
Unrealized gain (loss) on fair value option debt securities $ (122) $ (557) $ 386 
Gross realized gain on debt securities  432  103  182 
Gross realized loss on debt securities  (329)  (1,588)  (1,833) 
(Increase) decrease in allowance for credit losses  (91)  (22)  50 
Total gain (loss) on debt securities recognized in other income 
(expense), net $ (110) $ (2,064) $ (1,215) Table of Contents Alphabet Inc.
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Equity Investments
The carrying value of equity securities is measured as the total initial cost plus the cumulative net gain (loss). 
Gains and losses, including impairments , are included as a component of OI&E in the Consolidated Statements of 
Income. See  Note 7  for further details on OI&E.
The carrying values for marketable and non-marketable equity securities are summarized below (in millions):
As of December 31, 2022 As of December 31, 2023
Marketable 
Equity 
SecuritiesNon-Marketable 
Equity 
Securities TotalMarketable 
Equity 
SecuritiesNon-Marketable 
Equity 
Securities Total
Total initial cost $ 5,764 $ 16,157 $ 21,921 $ 5,418 $ 17,616 $ 23,034 
Cumulative net 
gain (loss)(1) (608)  12,372  11,764  555  11,150  11,705 
Carrying value $ 5,156 $ 28,529 $ 33,685 $ 5,973 $ 28,766 $ 34,739 
(1)Non-marketable equity securities cumulative net gain (loss) is comprised of $16.8 billion  gains and $4.5 billion  losses 
(including impairments) as of December 31, 2022  and $18.1 billion  gains and $6.9 billion  losses (including impairments) as of 
December 31, 2023 .
Gains and Losses on Marketable and Non-marketable Equity Securities
Gains and losses (including impairments), net, for marketable and non-marketable equity securities included in 
OI&E are summarized below (in millions):
Year Ended December 31,
 2021 2022 2023
Realized net gain (loss) on equity securities sold during the 
period $ 1,196 $ (442) $ 690 
Unrealized net gain (loss) on marketable equity securities  1,335  (3,242)  790 
Unrealized net gain (loss) on non-marketable equity securities(1) 9,849  229  (1,088)


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Total gain (loss) on equity securities in other income 
(expense), net $ 12,380 $ (3,455) $ 392 
(1)Unrealized gain (loss) on non-marketable equity securities accounted for under the measurement alternative is comprised of 
$10.0 billion , $3.3 billion , and $1.8 billion  of upward adjustments as of December 31, 2021 , 2022 , and 2023 , respectively, and 
$122 million , $3.0 billion , and $2.9 billion  of downward adjustments (including impairments) as of December 31, 2021 , 2022 , 
and 2023 , respectively.
In the table above, realized net gain (loss) on equity securities sold during the period reflects the difference 
between the sale proceeds and the carrying value of the equity securities at the beginning of the period or the 
purchase date, if later.
Cumulative net gains (losses) on equity securities sold during the period, which is summarized in the following 
table (in millions), represents the total net gains (losses) recognized after the initial purchase date of the equity security 
sold during the period. While these net gains (losses) may have been reflected in periods prior to the period of sale, we 
believe they are important supplemental information as they reflect the economic net gains (losses) on the securities 
sold during the period. Cumulative net gains (losses) are calculated as the difference between the sale price and the 
initial purchase price for the equity security sold during the period.
Equity Securities Sold During the Year 
Ended December 31,
 2022 2023
Total sale price $ 1,784 $ 1,981 
Total initial cost  937  1,512 
Cumulative net gains (losses) $ 847 $ 469 
Equity  Securities Accounted for Under the Equity Method
As of December 31, 2022  and 2023 , equity securities accounted for under the equity method had a carrying value 
of approximately $1.5 billion  and $1.7 billion , respectively. Our share of gains and losses, including impairments, are


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included as a component of OI&E, in the Consolidated Statements of Income. See Note 7  for further details on OI&E.  Table of Contents Alphabet Inc.
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Derivative Financial Instruments
We use derivative instruments to manage risks relating to our ongoing business operations. The primary risk 
managed is foreign exchange risk. We use foreign currency contracts to reduce the risk that our cash flows, earnings, 
and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We 
also enter into derivative instruments to partially offset our exposure to other risks and enhance investment returns.
We recognize derivative instruments in the Consolidated Balance Sheets at fair value and classify the derivatives 
primarily within Level 2 in the fair value hierarchy. We present our collar contracts (an option strategy comprised of a 
combination of purchased and written options) at net fair values and present all other derivatives at gross fair values. 
The accounting treatment for derivatives is based on the intended use and hedge designation.
Cash Flow Hedges
We designate foreign currency forward and option contracts (including collars) as cash flow hedges to hedge 
certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. These contracts have 
maturities of 24 months  or less.
Cash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and 
subsequently reclassified to revenue when the hedged item is recognized in earnings. We exclude forward points and 
time value from our assessment of hedge effectiveness and amortize them on a straight-line basis over the life of the 
hedging instrument in revenues. The difference between fair value changes of the excluded component and the 
amount amortized to revenues is recorded in AOCI.
As of December 31, 2023 , the net accumulated gain on our foreign currency cash flow hedges before tax effect 
was $47 million , which is expected to be reclassified from AOCI into revenues within the next 12 months.
Fair Value Hedges
We designate foreign currency forward contracts as fair value hedges to hedge foreign currency risks for our 
marketable securities denominated in currencies other than the U.S. dollar. Fair value hedge amounts included in the 
assessment of hedge effectiveness are recognized in OI&E, along with the offsetting gains and losses of the related 
hedged items. We exclude forward points from the assessment of hedge effectiveness and recognize changes in the 
excluded component in OI&E.
Net Investment Hedges
We designate foreign currency forward contracts as net investment hedges to hedge the foreign currency risks


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related to our investment in foreign subsidiaries. Net investment hedge amounts included in the assessment of hedge 
effectiveness are recognized in AOCI along with the foreign currency translation adjustment. We exclude forward 
points from the assessment of hedge effectiveness and recognize changes in the excluded component in OI&E.
Other Derivatives
We enter into foreign currency forward and option contracts that are not designated as hedging instruments to 
hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the 
functional currency of a subsidiary. Gains and losses on these derivatives that are not designated as accounting 
hedges are primarily recorded in OI&E along with the foreign currency gains and losses on monetary assets and 
liabilities.
We also use derivatives not designated as hedging instruments to manage risks relating to interest rates, 
commodity prices, credit exposures, and to enhance investment returns.  From time to time, we enter into derivatives to 
hedge the market price risk on certain of our marketable equity securities. Gains and losses arising from other 
derivatives are primarily reflected within the “other” component of OI&E. See Note 7  for further details. Table of Contents Alphabet Inc.
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The gross notional amounts of outstanding derivative instruments were as follows (in millions):
As of December 31,
2022 2023
Derivatives designated as hedging instruments:
Foreign exchange contracts
Cash flow hedges  $ 15,972 $ 18,039 
Fair value hedges $ 2,117 $ 2,065 
Net investment hedges $ 8,751 $ 9,472 
Derivatives not designated as hedging instruments:
Foreign exchange contracts $ 34,979 $ 39,722 
Other contracts $ 7,932 $ 10,818 
The fair values of outstanding derivative instruments were as follows (in millions):
 As of December 31, 2022 As of December 31, 2023
 Assets(1)Liabilities(2)Assets(1)Liabilities(2)
Derivatives designated as hedging instruments:
     Foreign exchange contracts $ 271 $ 556 $ 205 $ 242 
Derivatives not designated as hedging 
instruments:
     Foreign exchange contracts  365  207  134  156 
     Other contracts  40  47  114  47 
Total derivatives not designated as hedging 
instruments  405  254  248  203 
Total $ 676 $ 810 $ 453 $ 445 
(1) Derivative assets are recorded as other current and non-current assets in the Consolidated Balance Sheets.
(2) Derivative liabilities are recorded as accrued expenses and other liabilities, current and non-current in the Consolidated 
Balance Sheets.
The gains (losses)  on derivatives in cash flow hedging and net investment hedging relationships recognized in 
other comprehensive income (OCI) are summarized below (in millions):
 Year Ended December 31,
2021 2022 2023
Derivatives in cash flow hedging relationship:
Foreign exchange contracts
Amount included in the assessment of effectiveness $ 806 $ 1,699 $ 90 
Amount excluded from the assessment of 
effectiveness  48  (188)  84 
Derivatives in net investment hedging relationship:
Foreign exchange contracts
Amount included in the assessment of effectiveness  754  608  (287)


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The table below presents the gains (losses) of our derivatives on the Consolidated Statements of Income: (in 
millions):
Year Ended December 31,
2021 2022 2023
RevenuesOther 
income 
(expense), 
net RevenuesOther 
income 
(expense), 
net RevenuesOther 
income 
(expense), 
net
Total amounts in the Consolidated Statements of 
Income $ 257,637 $ 12,020 $ 282,836 $ (3,514) $ 307,394 $ 1,424 
Effect of cash flow hedges:
Foreign exchange contracts
Amount reclassified from AOCI to income $ 165 $ 0 $ 2,046 $ 0 $ 213 $ 0 
Amount excluded from the assessment of 
effectiveness (amortized)  (16)  0  (85)  0  24  0 
Effect of fair value hedges:
Foreign exchange contracts
Hedged items  0  (95)  0  (162)  0  59 
Derivatives designated as hedging 
instruments  0  95  0  163  0  (59) 
Amount excluded from the assessment of 
effectiveness  0  8  0  16  0  15 
Effect of net investment hedges:
Foreign exchange contracts
Amount excluded from the assessment of 
effectiveness  0  82  0  171  0  187 
Effect of non designated hedges:
Foreign exchange contracts  0  (860) 0 (395)  0  7 
Other contracts  0  101  0  144  0  53 
Total gains (losses) $ 149 $ (669) $ 1,961 $ (63) $ 237 $ 262 
Offsetting of Derivatives
We enter into master netting arrangements and collateral security arrangements to reduce credit risk. Cash 
collateral received related to derivative instruments under our collateral security arrangements are included in other 
current assets  with a corresponding liability . Cash and non-cash collateral pledged related to derivative instruments


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under our collateral security arrangements are included in other current assets .Table of Contents Alphabet Inc.
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The gross amounts of derivative instruments subject to master netting arrangements with various 
counterparties, and cash and non-cash collateral received and pledged under such agreements were as follows (in 
millions):
As of December 31, 2022
Gross Amounts Not Offset in 
the Consolidated Balance 
Sheets, but Have Legal Rights 
to Offset
Gross 
Amounts 
RecognizedGross 
Amounts 
Offset in the 
Consolidated 
Balance 
SheetsNet Amounts  
Presented in 
the 
Consolidated 
Balance 
SheetsFinancial 
Instruments(1)Cash and 
Non-Cash 
Collateral 
Received or 
Pledged Net Amounts
Derivatives assets $ 760 $ (84) $ 676 $ (463) $ (132) $ 81 
Derivatives liabilities $ 894 $ (84) $ 810 $ (463) $ (28) $ 319 
As of December 31, 2023
Gross Amounts Not Offset in 
the Consolidated Balance 
Sheets, but Have Legal Rights 
to Offset
Gross 
Amounts
RecognizedGross 
Amounts 
Offset in the 
Consolidated 
Balance 
SheetsNet Amounts 
Presented in 
the 
Consolidated 
Balance 
SheetsFinancial 
Instruments(1)Cash and 
Non-Cash 
Collateral 
Received or 
Pledged Net Amounts
Derivatives assets $ 535 $ (82) $ 453 $ (213) $ (75) $ 165 
Derivatives liabilities $ 527 $ (82) $ 445 $ (213) $ (16) $ 216 
(1) The balances as of December 31, 2022 and 2023 were related to derivatives allowed to be net settled in accordance with our 
master netting agreements.
Note 4.        Leases  
We have entered into operating lease agreements primarily for data centers, land, and offices throughout the 
world with lease periods expiring between 2024  and 2063 . 
Components of operating lease expense were as follows (in millions):
Year Ended December 31,


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Year Ended December 31,
2021 2022 2023
Operating lease cost $ 2,699 $ 2,900 $ 3,362 
Variable lease cost  726  838  1,182 
Total operating lease cost $ 3,425 $ 3,738 $ 4,544 
Supplemental information related to operating leases was as follows (in millions):
Year Ended December 31,
2021 2022 2023
Cash payments for operating leases $ 2,489 $ 2,722 $ 3,173 
New operating lease assets obtained in exchange for 
operating lease liabilities $ 2,951 $ 4,383 $ 2,877 Table of Contents Alphabet Inc.
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As of December 31, 2023 , our operating leases had a weighted average remaining lease term of 8.1 years  and a 
weighted average discount rate of 3.1% . Future lease payments under operating leases as of December 31, 2023  
were as follows (in millions):
2024 $ 3,179 
2025  2,929 
2026  2,450 
2027  1,951 
2028  1,488 
Thereafter  5,685 
Total future lease payments  17,682 
Less imputed interest  (2,431) 
Total lease liability balance $ 15,251 
As of December 31, 2023 , we have entered into leases that have not yet commenced with short-term and long-
term future lease payments of $657 million  and $3.3 billion  that are not yet recorded on our Consolidated Balance 
Sheets. These leases will commence between 2024  and 2026  with non-cancelable lease terms betwee n one and 25 
years.
Note 5.        Variable Interest Entities 
Consolidated Variable Interest Entities
We consolidate VIEs in which we hold a variable interest and are the primary beneficiary. The results of 
operations and financial position of these VIEs are included in our consolidated financial statements.  
 For certain consolidated VIEs, their assets are not available to us and their creditors do not have recourse to us. 
As of December 31, 2022  and 2023 , assets that can only be used to settle obligations of these VIEs were $4.1 billion  
and $4.9 billion , respectively, and the liabilities for which creditors only have recourse to the VIEs were $2.6 billion  and 
$2.5 billion , respectively.  We may continue to fund ongoing operations of certain VIEs that are included within Other 
Bets.  
Total noncontrolling interests (NCI) in our consolidated subsidiaries were $3.8 billion  and $3.4 billion  as of 
December 31, 2022  and 2023 , respectively, of which $1.1 billion  is redeemable noncontrolling interest (RNCI) for both


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periods. NCI and RNCI are included within additional paid-in capital. Net loss attributable to noncontrolling interests 
was not material for an y period presented and is included within the "other" component of OI&E. See Note 7  for further 
details on OI&E.
Unconsolidated Variable Interest Entities
We have investments in VIEs in which we are not the primary beneficiary. These VIEs include private companies 
that are primarily early stage companies and certain renewable energy entities in which activities involve power 
generation using renewable sources.
We have determined that the governance structures of these entities do not allow us to direct the activities that 
would significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of 
operations and financial position of these VIEs are not included in our consolidated financial statements. We account 
for these investments primarily as non-marketable equity securities or equity method investments.
The maximum exposure of these unconsolidated VIEs is generally based on the current carrying value of the 
investments and any future funding commitments. The m aximum exposure  and carrying value of these unconsolidated 
VIEs were $2.8 billion  and $2.7 billion , respectively, as of December 31, 2022  and $5.7 billion  and $4.0 billion , 
respectively, as of December 31, 2023 . The difference between the maximum exposure and the carrying value relates 
primarily to future funding commitments.
Note 6.       Debt  
Short-Term Debt
We have a debt financing program of up to $10.0 billion  through the issuance of commercial paper. Net proceeds 
from this program are used for general corporate purposes. We had no commercial paper outstanding as of 
December 31, 2022  and 2023 . 
Our short-term debt balance also includes the current portion of certain long-term debt.Table of Contents Alphabet Inc.
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Long-Term Debt
Total outstanding debt is summarized below (in millions, except percentages):
Effective 
Interest RateAs of December 31,
Maturity Coupon Rate 2022 2023
Debt
2014-2020 Notes issuances 2024 - 2060 0.45%  - 3.38% 0.57%  - 3.38% $ 13,000 $ 13,000 
Future finance lease payments, net and 
other (1) 2,142  1,746 
      Total debt  15,142  14,746 
Unamortized discount and debt 
issuance costs  (143)  (130) 
Less: Current portion of long-term 
notes(2) 0  (1,000) 
Less: Current portion of future finance 
lease payments, net and other current 
debt(1)(2) (298)  (363) 
       Total long-term debt $ 14,701 $ 13,253 
(1)Future finance lease payments are net of imputed interest.
(2)Total current portion of long-term debt is included within other accrued expenses and current liabilities. See Note 7 for further 
details.
The notes in the table above are fixed-rate senior unsecured obligations and generally rank equally with each 
other. We may redeem the notes at any time in whole or in part at specified redemption prices. The effective interest 
rates are based on proceeds received with interest payable semi-annually.
The total estimated fair value of the outstanding notes was approximately $9.9 billion  and $10.3 billion  as of 
December 31, 2022  and December 31, 2023 , respectively. The fair value was determined based on observable market 
prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value 
hierarchy.
As of December 31, 2023 , the aggregate future principal payments for long-term debt, including finance lease 
liabilities, for each of the next five years and thereafter were as follows (in millions):
2024 $ 1,299 
2025 1,163
2026 2,165
2027 1,143
2028 132
Thereafter 8,960


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2028 132
Thereafter 8,960
Total $ 14,862 
Credit Facility
As of December 31, 2023 , we had $10.0 billion  of revolving credit facilities, of which $4.0 billion  expires in April 
2024  and $6.0 billion  expires 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 
were outstanding under the credit facilities as of December 31, 2022  and 2023 .
Note 7.        Supplemental Financial Statement Information  
Accounts Receivable
The allowance for credit losses on accounts receivable was $754 million  and $771 million  as of December 31, 
2022  and 2023 , respectively.Table of Contents Alphabet Inc.
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Property and Equipment, Net
Property and equipment, net, consisted of the following (in millions):
As of December 31,
2022 2023
Land and buildings $ 66,897 $ 74,083 
Information technology assets  66,267  80,594 
Construction in progress  27,657  35,229 
Leasehold improvements  10,575  11,425 
Furniture and fixtures  314  472 
Property and equipment, gross  171,710  201,803 
Less: accumulated depreciation  (59,042)  (67,458) 
Property and equipment, net $ 112,668 $ 134,345 
Our technical infrastructure is comprised of information technology assets, including servers and networking 
equipment , and data center land and buildings.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in millions):
As of December 31,
2022 2023
European Commission fines(1)$ 9,106 $ 9,525 
Accrued purchases of property and equipment  3,019  4,679 
Accrued customer liabilities  3,619  4,140 
Current operating lease liabilities  2,477  2,791 
Income taxes payable, net  1,632  2,748 
Other accrued expenses and current liabilities  18,013  22,285 
Accrued expenses and other current liabilities $ 37,866 $ 46,168 
(1) While each EC decision is under appeal, the fines are included in accrued expenses and other current liabilities on our 
Consolidated Balance Sheets, as we provided bank guarantees (in lieu of a cash payment) for the fines. Amounts include the 
effects of foreign exchange and interest. Se e Note 10  for further details .Table of Contents Alphabet Inc.
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Accumulated Other Comprehensive Income (Loss)
Components of AOCI, net of income tax, were as follows (in millions):
Foreign Currency 
Translation 
AdjustmentsUnrealized Gains 
(Losses) on 
Available-for-Sale 
InvestmentsUnrealized 
Gains (Losses) 
on Cash Flow 
Hedges Total
Balance as of December 31, 2020 $ (864) $ 1,612 $ (115) $ 633 
Other comprehensive income (loss) before 
reclassifications  (1,442)  (1,312)  668  (2,086) 
Amounts excluded from the assessment of 
hedge effectiveness recorded in AOCI  0  0  48  48 
Amounts reclassified from AOCI  0  (64)  (154)  (218) 
Other comprehensive income (loss)  (1,442)  (1,376)  562  (2,256) 
Balance as of December 31, 2021  (2,306)  236  447  (1,623) 
Other comprehensive income (loss) before 
reclassifications  (1,836)  (4,720)  1,463  (5,093) 
Amounts excluded from the assessment of 
hedge effectiveness recorded in AOCI  0  0  (188)  (188) 
Amounts reclassified from AOCI  0  1,007  (1,706)  (699) 
Other comprehensive income (loss)  (1,836)  (3,713)  (431)  (5,980) 
Balance as of December 31, 2022  (4,142)  (3,477)  16  (7,603) 
Other comprehensive income (loss) before 
reclassifications  735  1,344  84  2,163 
Amounts excluded from the assessment of 
hedge effectiveness recorded in AOCI  0  0  84  84 
Amounts reclassified from AOCI  0  1,168  (214)  954


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Other comprehensive income (loss)  735  2,512  (46)  3,201 
Balance as of December 31, 2023 $ (3,407) $ (965) $ (30) $ (4,402) 
The effects on net income of amounts reclassified from AOCI were as follows (in millions):
Gains (Losses) Reclassified from AOCI to the 
Consolidated Statements of Income
Year Ended December 31,
 AOCI Components Location 2021 2022 2023
Unrealized gains (losses) on available-for-sale investments
Other income (expense), net $ 82 $ (1,291) $ (1,497) 
Benefit (provision) for income 
taxes  (18)  284  329 
Net of income tax  64  (1,007)  (1,168) 
Unrealized gains (losses) on cash flow hedges
Foreign exchange contracts Revenue  165  2,046  213 
Interest rate contracts Other income (expense), net  6  6  6 
Benefit (provision) for income 
taxes  (17)  (346)  (5) 
Net of income tax  154  1,706  214 
Total amount reclassified, net of income tax $ 218 $ 699 $ (954) Table of Contents Alphabet Inc.
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Other Income (Expense), Net 
Components of OI&E  were as follows (in millions): 
 Year Ended December 31,
 2021 2022 2023
Interest income $ 1,499 $ 2,174 $ 3,865 
Interest expense(1) (346)  (357)  (308) 
Foreign currency exchange gain (loss), net  (240)  (654)  (1,238) 
Gain (loss) on debt securities, net  (110)  (2,064)  (1,215) 
Gain (loss) on equity securities, net  12,380  (3,455)  392 
Performance fees  (1,908)  798  257 
Income (loss) and impairment from equity method investments, net  334  (337)  (628) 
Other  411  381  299 
Other income (expense), net $ 12,020 $ (3,514) $ 1,424 
(1) Interest expense is net of interest capitalized of $163 million , $128 million , and $181 million  for the years ended December 31, 
2021 , 2022 , and 2023 , respectively.
Note 8.        Workforce Reduction and Other Initiatives  
We have a company-wide effort underway to re-engineer our cost base. As part of this program, in January 2023, 
we announced a reduction of our workforce. As a result, total employee severance and related charges recorded 
during the year ended December 31, 2023 wer e $2.1 billion . Substantially all of the employees affected were no longer 
included in our headcount as of December 31, 2023.
In addition, we are taking actions to optimize our global office space.  As a result, exit charges recorded during the 
year ended December 31, 2023 , were $1.8 billion  as reflected in the table below. In addition to these exit charges, for 
the year ended December 31, 2023 , we incurred $269 million  in accelerated rent and accelerated depreciation, which 
are not included in the table below.
Severance and office space exit charges are included within our consolidated statements of income as follows (in


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millions):
Year Ended December 31, 2023
Severance 
and Related (1)Office Space Total
Cost of revenues $ 479 $ 481 $ 960 
Research and development 848  870  1,718 
Sales and marketing 497  257  754 
General and administrative 264  237  501 
Total charges $ 2,088 $ 1,845 $ 3,933 
(1)Severance includes amounts to be settled in cash, accounted for as one-time involuntary employee termination benefits, and 
SBC.
For segment reporting, the substantial majority  of these charges are included within Alphabet-level activities in our 
segment results.
For the  year ended December 31, 2023 , changes in liabilities resulting from the severance charges and related 
accruals were as follows (in millions):
Severance and 
Related
Balance as of December 31, 2022 $ 0 
Charges(1) 1,656 
Cash payments  (1,579) 
Balance as of December 31, 2023(2)$ 77 
(1)Excludes non-cash SBC of $432 million .
(2)Included in accrued compensation and benefits on the Consolidated Balance Sheets.Table of Contents Alphabet Inc.
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Note 9.        Goodwill
Changes in the carrying amount of goodwill for the years ended December 31, 2022  and 2023  were as follows 
(in millions):
Google 
Services Google Cloud Other Bets Total
Balance as of December 31, 2021 $ 19,826 $ 2,337 $ 793 $ 22,956 
Acquisitions  1,176  4,876  119  6,171 
Foreign currency translation and other adjustments  (155)  (8)  (4)  (167) 
Balance as of December 31, 2022  20,847  7,205  908  28,960 
Acquisitions  240  3  0  243 
Foreign currency translation and other adjustments  31  (9)  (27)  (5) 
Balance as of December 31, 2023 $ 21,118 $ 7,199 $ 881 $ 29,198 
Note 10.        Commitments and Contingencies  
Commitments
We have content licensing agreements with future fixed or minimum guaranteed commitments of $10.6 billion  as 
of December 31, 2023 , of which the majority is paid over  seven years  ending in the first quarter of 2030.
Indemnifications
In the normal course of business, including to facilitate transactions in our services and products and corporate 
activities, we indemnify certain parties, including advertisers, Google Network partners, distribution partners, 
customers of Google Cloud offerings, lessors,  and service providers with respect to certain matters. We have agreed 
to defend and/or hold certain parties harmless against losses arising from a breach of representations or covenants, or 
out of intellectual property infringement or other claims made against certain parties. Several of these agreements limit 
the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered 
into indemnification agreements with our officers and directors, and our bylaws contain similar indemnification 
obligations to our agents.
It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification 
agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, the


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payments we have made under such agreements have not had a material adverse effect on our results of operations, 
cash flows, or financial position. However, to the extent that valid indemnification claims arise in the future, future 
payments by us could be significant and could have a material adverse effect on our results of operations or cash flows 
in a particular period. 
As of December 31, 2023 , we did not have any material indemnification claims that were probable or reasonably 
possible.
Legal Matters
We record a liability when we believe that it is probable that a loss has been incurred, and the amount can be 
reasonably estimated. If we determine that a loss is reasonably possible and the loss or range of loss can be 
estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could affect 
the amount of liability that has been previously accrued, and the matters and related reasonably possible losses 
disclosed, and make adjustments as appropriate.
Certain outstanding matters seek speculative, substantial or indeterminate monetary amounts, substantial 
changes to our business practices and products, or structural remedies. Significant judgment is required to determine 
both the likelihood of there being a loss and the estimated amount of a loss related to such matters, and we may be 
unable to estimate the reasonably possible loss or range of losses. The outcomes of outstanding legal matters are 
inherently unpredictable and subject to significant uncertainties, and could, either individually or in aggregate, have a 
material adverse effect.
We expense legal fees in the period in which they are incurred.Table of Contents Alphabet Inc.
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Antitrust Investigations
On November 30, 2010, the EC's Directorate General for Competition opened an investigation into various 
antitrust-related complaints against us.
On June 27, 2017, the EC announced its decision that certain actions taken by Google regarding its display and 
ranking of shopping search results and ads infringed European competition law. The EC decision imposed a €2.4 
billion  ($2.7 billion  as of June 27, 2017 ) fine. On September 11, 2017, we appealed the EC decision to the General 
Court, and on September 27, 2017, we implemented product changes to bring shopping ads into compliance with the 
EC's decision. We recognized a charge of $2.7 billion  for the fine in the second quarter of 2017. On November 10, 
2021, the General Court rejected our appeal, and we subsequently filed an appeal with the European Court of Justice 
on January 20, 2022.
On July 18, 2018, the EC announced its decision that certain provisions in Google’s Android-related distribution 
agreements infringed European competition law. The EC decision imposed a €4.3 billion  ($5.1 billion  as of June 30, 
2018 ) fine and directed the termination of the conduct at issue. On October 9, 2018, we appealed the EC decision, and 
on October 29, 2018, we implemented changes to certain of our Android distribution practices. On September 14, 
2022, the General Court reduced the fine from €4.3 billion  to €4.1 billion . We subsequently filed an appeal with the 
European Court of Justice. In 2018, we recognized a charge of $5.1 billion  for the fine, which we reduced by 
$217 million  in 2022.
On March 20, 2019, the EC announced its decision that certain contractual provisions in agreements that Google 
had with AdSense for Search partners infringed European competition law. The EC decision imposed a fine of €1.5 
billion  ($1.7 billion  as of March 20, 2019 ) and directed actions related to AdSense for Search partners' agreements,


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which we implemented prior to the decision. On June 4, 2019, we appealed the EC decision. We recognized a charge 
of $1.7 billion  for the fine in the first quarter of 2019.
From time to time we are subject to formal and informal inquiries and investigations on various competition 
matters by regulatory authorities in the U.S., Europe, and other jurisdictions globally. Examples, for which given their 
nature we cannot estimate a possible loss, include:
•In August 2019, we began receiving civil investigative demands from the U.S. Department of Justice (DOJ) 
requesting information and documents relating to our prior antitrust investigations and certain aspects of our 
business. The DOJ and a number of state Attorneys General filed a lawsuit in the U.S. District Court for the 
District of Columbia on October 20, 2020 alleging that Google violated U.S. antitrust laws relating to Search 
and Search advertising. The trial ended on November 16, 2023, and we expect a decision in 2024. Further, in 
June 2022, the Australian Competition and Consumer Commission (ACCC) and the United Kingdom's 
Competition and Markets Authority (CMA) each opened an investigation into Search distribution practices.
•On December 16, 2020, a number of state Attorneys General filed an antitrust complaint in the U.S. District 
Court for the Eastern District of Texas, alleging that Google violated U.S. antitrust laws as well as state 
deceptive trade laws relating to its advertising technology , and a trial is scheduled for March 2025.  Additionally, 
on January 24, 2023, the DOJ, along with a number of state Attorneys General, filed an antitrust complaint in 
the U.S. District Court for the Eastern District of Virginia alleging that Google’s digital advertising technology 
products violate U.S. antitrust laws, and on April 17, 2023, a number of additional state Attorneys General 
joined the complaint. The EC, the CMA, and the ACCC each opened a formal investigation into Google's 
advertising technology business practices on June 22, 2021, May 25, 2022, and June 29, 2022, respectively.


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On June 14, 2023, the EC issued a Statement of Objections (SO) informing Google of its preliminary view that 
Google violated European antitrust laws relating to its advertising technology. We responded to the SO on 
December 1, 2023.
•On July 7, 2021, a number of state Attorneys General filed an antitrust complaint in the U.S. District Court for 
the Northern District of California, alleging that Google’s operation of Android and Google Pla y violated U.S. 
antitrust laws and state antitrust and consumer protection laws. In September 2023, we reached a settlement 
in principle with 50 state Attorneys General and three territories. The U.S. District Court subsequently vacated 
the trial date with the states, and any final approval of the settlement is expected to occur in 2024. In May 
2022, the EC and the CMA each opened investigations into Google Play’s business practices. Korean 
regulators are investigating Google Play's billing practices, including a formal review in May 2022 of Google's 
compliance with the new app store billing regulations. 
We believe we have strong arguments against these claims and will defend ourselves vigorously . We continue to 
cooperate with federal and state regulators in the U.S., the EC, and other regulators around the world.Table of Contents Alphabet Inc.
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Privacy Matters 
We are subject to a number of privacy-related laws and regulations, and we currently are party to  a number of 
privacy investigations and lawsuits ongoing in multiple jurisdictions. For example, there are ongoing investigations and 
litigation in the U.S. and the EU, including those relating to our collection and use of location information and 
advertising practices, which could result in significant fines, judgments, and product changes. 
Patent and Intellectual Property Claims
We have had patent, copyright, trade secret, and trademark infringement  lawsuits filed against us claiming that 
certain of our products, services, and technologies infringe others' intellectual property rights. Adverse results in these 
lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders 
preventing us from offering certain features, functionalities, products, or services. As a result, we may have to change 
our business practices and develop non-infringing products or technologies, which could result in a loss of revenues for 
us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly 
become an important forum to litigate intellectual property disputes because an ultimate loss in an ITC action can 
result in a prohibition on importing infringing products into the U.S. Because the U.S. is an important market, a 
prohibition on importation could have an adverse effect on us, including preventing us from importing many important 
products into the U.S. or necessitating workarounds that may limit certain features of our products.
Furthermore, many of our agreements with our customers and partners require us to indemnify them against 
certain intellectual property infringement claims, which would increase our costs as a result of defending such claims, 
and may require that we pay significant damages if there were an adverse ruling in any such claims. In addition, our 
customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions 
or otherwise, which could result in loss of revenues and adversely affect our business.
Other
We are subject to claims, lawsuits, regulatory and government investigations, other proceedings, and consent 
orders involving competition, intellectual property, data security, tax and related compliance, labor and employment, 
commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using


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our platforms, personal injury, consumer protection, and other matters.  For example, in December 2023, a California 
jury delivered a verdict in  Epic Games v. Google  finding that Google violated antitrust laws related to Google Play's 
business. The pr esiding judge will determine remedies in 2024, and the range of potential remedies vary widely. We 
plan to appeal.  We also periodically have data incidents that we report to relevant regulators as required by law.  
These  claims , consent orders, lawsuits, regulatory and government investigations, and other proceedings could 
result in substantial fines and penalties, injunctive relief, ongoing monitoring and auditing obligations, changes to our 
products and services, alterations to our business models and operations, and collateral related civil litigation or other 
adverse consequences,  all of which could harm our business, reputation, financial condition, and operating results.
We have ongoing legal matters relating to Russia. For example, civil judgments that include compounding 
penalties have been imposed upon us in connection with disputes regarding the termination of accounts, including 
those of sanctioned parties. We do not believe these ongoing legal matters will have a material adverse effect .
Non-Income Taxes
We are under audit by various domestic and foreign tax authorities with regards to non-income tax matters. The 
subject matter of non-income tax audits primarily arises from disputes on the tax treatment and tax rate applied to the 
sale of our products and services in these jurisdictions and the tax treatment of certain employee benefits. We accrue 
non-income taxes that may result from examinations by, or any negotiated agreements with, these tax authorities when 
a loss is probable and reasonably estimable. If we determine that a loss is reasonably possible and the loss or range of 
loss can be estimated, we disclose the reasonably possible loss. Due to the inherent complexity and uncertainty of 
these matters and judicial process in certain jurisdictions, the final outcome may be materially different from our 
expectations.
See, Note 14  for information regarding income tax contingencies.Table of Contents Alphabet Inc.
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Note 11.        Stockholders' Equity  
Class A and Class B Common Stock and Class C Capital Stock
Our Board of Directors has authorized three  classes of stock, Class A and Class B common stock, and Class C 
capital stock. The rights of the holders of each class of our common and capital stock are identical, except with respect 
to voting. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock 
is entitled to 10 votes per share. Class C capital stock has no voting rights, except as required by applicable law. 
Shares of Class B common stock may be converted at any time at the option of the stockholder and automatically 
convert upon sale or transfer to Class A common stock.
Share Repurchases
In the years ended December 31, 2021 , 2022 , and 2023 , we repurchased  $50.3 billion , $59.3 billion , and 
$62.2 billion , respectively, of Alphabet's Class A and Class C shares.
In April 2023, 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 December 31, 2023 , $36.3 billion  remains available for Class A 
and Class C share repurchases. 
The following table presents Class A and Class C shares repurchased and subsequently retired (in millions):
Year Ended December 31, 2022 Year Ended December 31, 2023
Shares Amount Shares Amount
Class A share repurchases 61$ 6,719 78$ 9,316 
Class C share repurchases 469  52,577 450  52,868 
Total share repurchases(1)530 $ 59,296 528 $ 62,184 
(1)         Shares repurchased include unsettled repurchases as of December 31, 2023 .
Class A and Class C shares are repurchased in a manner deemed in the best interest of the company and its 
stockholders, taking into account the economic cost and prevailing market conditions, including the relative trading 
prices and volumes of the Class A and Class C shares. Repurchases are executed from time to time, subject to


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general business and market conditions and other investment opportunities, through open market purchases or 
privately negotiated transactions, including through Rule 10b5-1 plans. The repurchase program does not have an 
expiration date.
Note 12.        Net Income Per Share  
We compute net income per share of Class A, Class B, and Class C stock using the two-class method. Basic net 
income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net 
income per share is computed using the weighted-average number of shares and the effect of potentially dilutive 
securities outstanding during the period. Potentially dilutive securities consist of RSUs and other contingently issuable 
shares. The dilutive effect of outstanding RSUs and other contingently issuable shares is reflected in diluted earnings 
per share by application of the treasury stock method. The computation of the diluted net income per share of Class A 
stock assumes the conversion of Class B stock, while the diluted net income per share of Class B stock does not 
assume the conversion of those shares.
The rights, including the liquidation and dividend rights, of the holders of our Class A, Class B, and Class C stock 
are identical, except with respect to voting. Furthermore, there are a number of safeguards built into our certificate of 
incorporation, as well as Delaware law, which preclude our Board of Directors from declaring or paying unequal per 
share dividends on our Class A, Class B, and Class C stock. Specifically, Delaware law provides that amendments to 
our certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a 
given class of stock must be approved by the class of stock adversely affected by the proposed amendment. In 
addition, our certificate of incorporation provides that before any such amendment may be put to a stockholder vote, it 
must be approved by the unanimous consent of our Board of Directors. As a result, the undistributed earnings for each 
year are allocated based on the contractual participation rights of the Class A, Class B, and Class C stock as if the 
earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed 
earnings are allocated on a proportionate basis.


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earnings are allocated on a proportionate basis. 
In the years ended December 31, 2021 , 2022 , and 2023 , the net income per share amounts are the same for 
Class A, Class B, and Class C stock because the holders of each class are entitled to equal per share dividends or 
distributions in liquidation in accordance with the Amended and Restated Certificate of Incorporation of Alphabet Inc.Table of Contents Alphabet Inc.
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The following table  sets forth the computation of basic and diluted net income per share of Class A, Class B, and 
Class C stock (in millions, except per share amounts):
 Year Ended December 31,
 2021
 Class A Class B Class C
Basic net income per share:
Numerator
Allocation of undistributed earnings $ 34,200 $ 5,174 $ 36,659 
Denominator
Number of shares used in per share computation  6,006  909  6,438 
Basic net income per share $ 5.69 $ 5.69 $ 5.69 
Diluted net income per share:
Numerator
Allocation of undistributed earnings for basic computation $ 34,200 $ 5,174 $ 36,659 
Reallocation of undistributed earnings as a result of conversion of Class B to Class A 
shares  5,174  0  0 
Reallocation of undistributed earnings  (581)  (77)  581 
Allocation of undistributed earnings $ 38,793 $ 5,097 $ 37,240 
Denominator
Number of shares used in basic computation  6,006  909  6,438 
Weighted-average effect of dilutive securities
Add:
Conversion of Class B to Class A shares outstanding  909  0  0 
Restricted stock units and other contingently issuable shares  0  0  200 
Number of shares used in per share computation  6,915  909  6,638 
Diluted net income per share $ 5.61 $ 5.61 $ 5.61 
 Year Ended December 31,
 2022
 Class A Class B Class C
Basic net income per share:
Numerator
Allocation of undistributed earnings $ 27,518 $ 4,072 $ 28,382 
Denominator
Number of shares used in per share computation  5,994  887  6,182 
Basic net income per share $ 4.59 $ 4.59 $ 4.59 
Diluted net income per share:
Numerator
Allocation of undistributed earnings for basic computation $ 27,518 $ 4,072 $ 28,382


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Reallocation of undistributed earnings as a result of conversion of Class B to Class A 
shares  4,072  0  0 
Reallocation of undistributed earnings  (230)  (30)  230 
Allocation of undistributed earnings $ 31,360 $ 4,042 $ 28,612 
Denominator
Number of shares used in basic computation  5,994  887  6,182 
Weighted-average effect of dilutive securities
Add:
Conversion of Class B to Class A shares outstanding  887  0  0 
Restricted stock units and other contingently issuable shares  0  0  96 
Number of shares used in per share computation  6,881  887  6,278 
Diluted net income per share $ 4.56 $ 4.56 $ 4.56 Table of Contents Alphabet Inc.
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Year Ended December 31,
 2023
 Class A Class B Class C
Basic net income per share:
Numerator
Allocation of undistributed earnings $ 34,601 $ 5,124 $ 34,070 
Denominator
Number of shares used in per share computation  5,922  877  5,831 
Basic net income per share $ 5.84 $ 5.84 $ 5.84 
Diluted net income per share:
Numerator
Allocation of undistributed earnings for basic computation $ 34,601 $ 5,124 $ 34,070 
Reallocation of undistributed earnings as a result of conversion of Class B to Class A 
shares  5,124  0  0 
Reallocation of undistributed earnings  (287)  (37)  287 
Allocation of undistributed earnings $ 39,438 $ 5,087 $ 34,357 
Denominator
Number of shares used in basic computation  5,922  877  5,831 
Weighted-average effect of dilutive securities
Add:
Conversion of Class B to Class A shares outstanding  877  0  0 
Restricted stock units and other contingently issuable shares  0  0  92 
Number of shares used in per share computation  6,799  877  5,923 
Diluted net income per share $ 5.80 $ 5.80 $ 5.80 
Note 13.        Compensation Plans  
Stock Plans
Our stock plans include the Alphabet Amended and Restated 2021 Stock Plan ("Alphabet 2021 Stock Plan") and 
Other Bet s stock-based plans. Under our stock plans, RSUs and other types of awards may be granted. Under the 
Alphabet 2021 Stock Plan, an RSU award is an agreement to issue shares of our Class C stock at the time the award 
vests. RSUs generally vest over four years  contingent upon employment on the vesting date.
As of December 31, 2023 , there were 723 million  shares of Class C stock reserved for future issuance under the 
Alphabet 2021 Stock Plan.
Stock-Based Compensation


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Alphabet 2021 Stock Plan.
Stock-Based Compensation
For the years ended December 31, 2021 , 2022 , and 2023 , total SBC expense was $15.7 billion , $19.5 billion , and 
$22.1 billion , including amounts associated with awards we expect to settle in Alphabet stock of $15.0 billion , $18.8 
billion , and $21.7 billion , respectively.
During the year ended December 31, 2023 , total SBC expense includes $432 million  associated with workforce 
reduction costs. See Note 8  for further details.
For the years ended December 31, 2021 , 2022 , and 2023 , we recognized tax benefits on total SBC expense, 
which are reflected in the provision for income taxes in the Consolidated Statements of Income, of $3.1 billion , $3.9 
billion , and $4.5 billion , respectively.
For the years ended December 31, 2021 , 2022 , and 2023 , tax benefit realized related to awards vested or 
exercised during the period was $5.9 billion , $4.7 billion , and $5.6 billion , respectively. These amounts do not include 
the indirect effects of stock-based awards, which primarily relate to the R&D tax credit.
Stock-Based Award ActivitiesTable of Contents Alphabet Inc.
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The following table summarizes the activities for  unvested Alphabet RSUs  for the year ended December 31, 2023  
(in millions, except per share amounts):
Unvested Restricted Stock Units
     Number of    
SharesWeighted-
Average
Grant-Date
Fair Value
Unvested as of December 31, 2022  324 $ 107.98 
Granted  263 $ 97.59 
Vested  (217) $ 100.36 
Forfeited/canceled  (32) $ 106.56 
Unvested as of December 31, 2023  338 $ 104.93 
The weighted-average grant-date fair value of RSUs granted during the years ended December 31,  2021  and 
2022  was $97.46  and $127.22 , respectively. Total fair value of RSUs, as of their respective vesting dates, during the 
years ended December 31, 2021 , 2022 , and 2023 , were $28.8 billion , $23.9 billion , and $26.6 billion , respectively.
As of December 31, 2023 , there was $33.5 billion  of unrecognized compensation cost related to unvested RSUs. 
This amount is expected to be recognized over a weighted-average period of 2.5 years . 
Note 14.        Income Taxes  
Income from continuing operations before income taxes consisted of the following (in millions):
Year Ended December 31,
 2021 2022 2023
Domestic operations $ 77,016 $ 61,307 $ 73,600 
Foreign operations  13,718  10,021  12,117 
Total $ 90,734 $ 71,328 $ 85,717 
Provision for income taxes consisted of the following (in millions):
Year Ended December 31,
 2021 2022 2023
Current:
Federal and state $ 10,126 $ 17,120 $ 17,125 
Foreign  2,692  2,434  2,526 
Total  12,818  19,554  19,651 
Deferred:


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Deferred:
Federal and state  2,018  (8,052)  (7,482) 
Foreign  (135)  (146)  (247) 
Total  1,883  (8,198)  (7,729) 
Provision for income taxes $ 14,701 $ 11,356 $ 11,922 Table of Contents Alphabet Inc.
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The reconciliation of federal statutory income tax rate to our effective income tax rate was as follows:
Year Ended December 31,
 2021 2022 2023
U.S. federal statutory tax rate  21.0 %  21.0 %  21.0 %
Foreign income taxed at different rates  0.2  3.0  0.3 
Foreign-derived intangible income deduction  (2.5)  (5.4)  (4.6) 
Stock-based compensation expense  (2.5)  (1.2)  (0.8) 
Federal research credit  (1.6)  (2.2)  (1.8) 
Deferred tax asset valuation allowance  0.6  0.9  0.6 
State and local income taxes  1.0  0.8  1.0 
Effect of tax law change  0.0  0.0  (1.4) 
Other  0.0  (1.0)  (0.4) 
Effective tax rate  16.2 %  15.9 %  13.9 %
In 2022, there was an increase in the U.S. Foreign Derived Intangible Income tax deduction from the effects of 
capitalization and amortization of R&D expenses starting in 2022 as required by the 2017 Tax Cuts and Jobs Act.
In 2023, the  IRS issued a rule change allowing taxpayers to temporarily apply the regulations in effect prior to 
2022 related to U.S. federal foreign tax credits as well as a separate rule change with interim guidance on the 
capitalization and amortization of R&D expenses. A cumulative one-time adjustment applicable to the prior period for 
these tax rule changes was recorded in 2023.
Deferred Income Taxes
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets 
and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components 
of our deferred tax assets and liabilities were as follows (in millions):
As of December 31,
2022 2023
Deferred tax assets:
Accrued employee benefits $ 955 $ 1,855


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Accrued employee benefits $ 955 $ 1,855 
Accruals and reserves not currently deductible  1,956  2,481 
Tax credits  6,002  6,609 
Net operating losses  2,557  2,965 
Operating leases  2,711  3,526 
Capitalized research and development(1) 10,381  17,757 
Other  2,289  1,951 
Total deferred tax assets  26,851  37,144 
Valuation allowance  (9,553)  (10,999) 
Total deferred tax assets net of valuation allowance  17,298  26,145 
Deferred tax liabilities:
Property and equipment, net  (6,607)  (8,189) 
Net investment gains  (2,361)  (2,405) 
Operating leases  (2,491)  (2,965) 
Other  (1,092)  (902) 
Total deferred tax liabilities  (12,551)  (14,461) 
Net deferred tax assets (liabilities) $ 4,747 $ 11,684 
(1)As required by the 2017 Tax Cuts and Jobs Act, effective January 1, 2022, our research and development expenditures were 
capitalized and amortized which resulted in substantially higher cash taxes starting in 2022 with an equal amount of deferred 
tax benefit.  
As of December 31, 2023 , our federal, state, and foreign net operating loss carryforwards for income tax 
purposes were approximately $7.1 billion , $18.6 billion , and $1.8 billion  respectively. If not utilized, the federal net Table of Contents Alphabet Inc.
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operating loss carryforwards will begin to expire in 202 4, foreign net operating loss carryforwards will begin to expire in 
2025 and the state net operating loss carryforwards will begin to expire in 2029. It is more likely than not that the 
majority of the net operating loss carryforwards will not be realized; therefore, we have recorded a valuation allowance 
against them. The net operating loss carryforwards are subject to various annual limitations under the tax laws of the 
different jurisdictions.
As of December 31, 2023 , our Federal and California research and development credit carryforwards for income 
tax purposes were approximately $600 million  and $6.3 billion , respectively. If not utilized, the Federal R&D credit will 
begin to expire in 2037 and the California R&D credit can be carried over indefinitely. We believe the majority of the 
federal tax credit and state tax credit is not likely to be realized.
As of December 31, 2023 , our investment tax credit carryforwards for state income tax purposes were 
approximately $1.0 billion  and will begin to expire in 2029. We use the flow-through method of accounting for 
investment tax credits. We believe this tax credit is not likely to be realized.
As of December 31, 2023 , we maintained a valuation allowance with respect to California deferred tax assets, 
certain federal net operating losses, certain state net operating losses and tax credits, net deferred tax assets relating 
to Other Bet companies, and certain foreign net operating losses that we believe are not likely to be realized. We 
continue to reassess the remaining valuation allowance quarterly, and if future evidence allows for a partial or full 
release of the valuation allowance, a tax benefit will be recorded accordingly. 
Uncertain Tax Positions
The following table summarizes the activity related to our gross unrecognized tax benefits (in millions):
 2021 2022 2023
Beginning gross unrecognized tax benefits $ 3,837 $ 5,158 $ 7,055 
Increases related to prior year tax positions  529  253  740 
Decreases related to prior year tax positions  (263)  (437)  (682) 
Decreases related to settlement with tax authorities  (329)  (140)  (21)


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Increases related to current year tax positions  1,384  2,221  2,346 
Ending gross unrecognized tax benefits $ 5,158 $ 7,055 $ 9,438 Year Ended December 31,
We are subject to income taxes in the U.S. and foreign jurisdictions. Significant judgment is required in evaluating 
our uncertain tax positions and determining our provision for income taxes. The total amount of gross unrecognized tax 
benefits was $5.2 billion , $7.1 billion , and $9.4 billion  as of December 31, 2021 , 2022 , and 2023 , respectively, of which 
$3.7 billion , $5.3 billion , and $7.4 billion , if recognized, would affect our effective tax rate, respectively. 
As of December 31, 2022  and 2023 , we accrued $346 million  and $622 million  in interest and penalties in 
provision for income taxes, respectively.
We file income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. Our two 
major tax jurisdictions are the U.S. federal and Ireland. We are subject to the continuous examination of our income tax 
returns by the IRS and other tax authorities. The IRS is currently examining our 2016 through 2021 tax returns. We 
have also received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or 
permanent establishment. We continue to defend such claims as presented.
The tax years 2016 through 2022 remain subject to examination by the appropriate governmental agencies for 
Irish tax purposes. There are other ongoing audits in various other jurisdictions that are not material to our financial 
statements.
We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the 
adequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax 
authorities and the effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.
We believe that an adequate provision has been made for any adjustments that may result from tax examinations. 
However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are 
resolved in a manner not consistent with management's expectations, we could be required to adjust our provision for


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income taxes in the period such resolutions occur. Although the timing of resolution, settlement, and closure of audits is 
not certain, it is reasonably possible that our unrecognized tax benefits from certain U.S. federal, state, and non U.S. 
tax positions could decrease by approximately $700 million  in the next 12 months. Positions that may be resolved 
include various U.S. and non-U.S. matters.Table of Contents Alphabet Inc.
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Note 15.        Information about Segments and Geographic Areas  
We report our segment results as Google Services, Google Cloud, and Other Bets:
•Google Services includes products and services such as ads, Android, Chrome, devices, Google Maps, 
Google Play, Search, and YouTube. Google Services generates revenues primarily from advertising;  fees 
received for consumer subscription-based products such as YouTube TV,  YouTube Music and Premium , and 
NFL Sunday Ticket; the sale of apps and in-app purchases and devices.
•Google Cloud includes infrastructure and platform services, collaboration tools, and other services for 
enterprise customers. Google Cloud generates revenues primarily from consumption-based fees and 
subscriptions received for Google Cloud Platform services, Google Workspace communication and 
collaboration tools, and other enterprise services.
•Other Bets is a combination of multiple operating segments that are not individually material. Revenues from 
Other Bets are generated primarily from the sale of health care-related services and internet services.
Revenues, certain costs, such as costs associated with content and traffic acquisition, certain engineering 
activities, and devices, as well as certain operating expenses are directly attributable to our segments. Due to the 
integrated nature of Alphabet, other costs and expenses, such as technical infrastructure and office facilities, are 
managed centrally at a consolidated level. These costs, including the associated depreciation and impairment, are 
allocated to operating segments as a service cost generally based on usage, headcount, or revenue.
Reflecting DeepMind's increasing collaboration with Google Services, Google Cloud, and Other Bets, beginning in 
the first quarter of 2023 DeepMind is reported as part of Alphabet-level activities instead of within Other Bets. 
Additionally, beginning in the first quarter of 2023, we updated and simplified our cost allocation methodologies to 
provide our business leaders with increased transparency for decision-making. Prior periods have been recast to 
conform to the current presentation.
As announced on April 20, 2023, we brought together part of Google Research (the Brain team) and DeepMind to 
significantly accelerate our progress in artificial intelligence (AI). The group, called Google DeepMind, is reported within 
Alphabet-level activities prospectively beginning in the second quarter of 2023. Previously, the Brain team was 
included within Google Services.


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included within Google Services.
Certain costs are not allocated to our segments because they represent Alphabet-level activitie s. These costs 
primarily include AI-focused shared  R&D activities, including development costs of our general AI models ; corporate 
initiatives such as our philanthropic activities; corporate shared costs such as certain finance, human resource, and 
legal costs, including certain fines and settlements. Charges associated with reductions in our workforce and office 
space during 2023 were not allocated to our segments. Additionally, hedging gains (losses) related to revenue are not 
allocated to our segments.
Our operating segments are not evaluated using asset information.
The following table presents information about our segments (in millions) :
Year Ended December 31,
2021 2022 2023
Revenues:
Google Services $ 237,529 $ 253,528 $ 272,543 
Google Cloud  19,206  26,280  33,088 
Other Bets  753  1,068  1,527 
Hedging gains (losses)  149  1,960  236 
Total revenues $ 257,637 $ 282,836 $ 307,394 
Operating income (loss):
Google Services $ 88,132 $ 82,699 $ 95,858 
Google Cloud  (2,282)  (1,922)  1,716 
Other Bets  (4,051)  (4,636)  (4,095) 
Alphabet-level activities  (3,085)  (1,299)  (9,186) 
Total income from operations $ 78,714 $ 74,842 $ 84,293 
See Note 2  for information relating to revenues by geography.Table of Contents Alphabet Inc.
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The following table presents long-lived assets by geographic area, which includes property and equipment, net 
and operating lease assets (in millions):
As of December 31,
 2022 2023
Long-lived assets:
United States $ 93,565 $ 110,053 
International  33,484  38,383 
Total long-lived assets $ 127,049 $ 148,436 Table of Contents Alphabet Inc.
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL 
DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our chief executive officer and chief financial officer, evaluated the 
effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act, as of the 
end of the period covered by this Annual Report on Form 10-K.
Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of December 31, 
2023 , our disclosure controls and procedures are designed at a reasonable assurance level and are effective to 
provide reasonable assurance that information we are required to disclose in reports that we file or submit under the 
Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules 
and forms, and that such information is accumulated and communicated to our management, including our chief 
executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting that occurred during the quarter 
ended December 31, 2023  that have materially affected, or are reasonably likely to materially affect, our internal 
control over financial reporting. 
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial 
reporting, as defined in Rule 13a-15(f) of the Exchange Act. Our management conducted an evaluation of the 
effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated 
Framework  issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). 
Based on this evaluation, management concluded that our internal control over financial reporting was effective as of 
December 31, 2023 . Management reviewed the results of its assessment with our Audit and Compliance Committee. 
The effectiveness of our internal control over financial reporting as of December 31, 2023  has been audited by Ernst & 
Young LLP , an independent registered public accounting firm, as stated in its report which is included in Item 8 of this 
Annual Report on Form 10-K.


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Annual Report on Form 10-K.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures, management recognizes that any controls 
and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the 
desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there 
are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible 
controls and procedures relative to their costs.Table of Contents Alphabet Inc.
88.


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ITEM 9B. OTHER INFORMATION
10b5-1 Trading Plans
During the fiscal quarter ended December 31, 2023 , the following Section 16 officer and directors adopted, 
modified or terminated  a “Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K of the Exchange 
Act):
•John Hennessy , Chair of t he Board of Directors , through the John L. Hennessy & Andrea J. Hennessy 
Revocable Trust, adopted  a new trading plan on November 1, 2023  (with the first trade under the new plan 
scheduled for February 12, 2024). The trading plan will be effective until March 12, 2025 to sell 6,664  shares of 
Class C Capital Stock and 11,336  shares of Class A Common Stock.
•Ann Mather , former member of the Board of Directors , terminated  her trading plan on October 30, 2023 , 
effective with her resignation from the Board of Directors. The trading plan previously permitted the sale of 
12,580  shares of Class C Capital Stock and would have been effective until June 2, 2024.
•Ruth M. Porat , President and Chief Investment Officer; Chief Financial Officer , adopted  a new trading plan on 
November 30, 2023  (with the first trade under the new plan scheduled for March 8, 2024). The trading plan will 
be effective until March 8, 2025 to sell all of the (net) shares of up to 82,900  (gross) Class C Capital Stock 
issued upon the vesting of her Alphabet 2021 Performance Stock Units, as adjusted based on performance 
(net shares are net of tax withholding).
There were no “non-Rule 10b5-1 trading arrangements” (as defined in Item 408 of Regulation S-K of the 
Exchange Act) adopted, modified or terminated  during the fiscal quarter ended December 31, 2023 by our directors 
and Section 16 officers. Each of the Rule 10b5-1 trading arrangements are in accordance with our Policy Against 
Insider Trading and actual sale transactions made pursuant to such trading arrangements will be disclosed publicly in


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Section 16 filings with the SEC in accordance with applicable securities laws, rules and regulations.
Required Disclosure Pursuant to Section 13(r) of the Exchange Act
As previously disclosed, Google LLC, a subsidiary of Alphabet, filed notifications with the Russian Federal 
Security Service pursuant to Russian encryption control requirements, which must be complied with prior to the import 
of covered items. The information provided pursuant to Section 13(r) of the Exchange Act in Part II, Item 5 of our 
Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 is incorporated herein by reference.
ITEM 9C.  DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.Table of Contents Alphabet Inc.
89.


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PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
The information required by this item will be included under the caption “Directors, Executive Officers, and 
Corporate Governance” in our Proxy Statement for the 2024  Annual Meeting of Stockholders to be filed with the SEC 
within 120 days of the fiscal year ended December 31, 2023  (2024  Proxy Statement) and is incorporated herein by 
reference. The information required by this item regarding delinquent filers pursuant to Item 405 of Regulation S-K will 
be included under the caption “Delinquent Section 16(a) Reports” in the 2024  Proxy Statement and is incorporated 
herein by reference.
ITEM 11. EXECUTIVE COMPENSATION
The information required by this item will be included under the captions “Director Compensation,” “Executive 
Compensation” and “Directors, Executive Officers, and Corporate Governance—Corporate Governance and Board 
Matters—Compensation Committee Interlocks and Insider Participation” in the 2024  Proxy Statement and is 
incorporated herein by reference , except as to information disclosed therein pursuant to Item 402(v) of Regulation S-K 
relating to pay versus performance .
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED 
STOCKHOLDER MATTERS
The information required by this item will be included under the captions “Common Stock Ownership of Certain 
Beneficial Owners and Management” and “Equity Compensation Plan Information” in the 2024  Proxy Statement and is 
incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this item will be included under the captions “Certain Relationships and Related 
Transactions” and “Directors, Executive Officers, and Corporate Governance—Corporate Governance and Board 
Matters—Director Independence” in the 2024  Proxy Statement and is incorporated herein by reference.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item will be included under the caption “Independent Registered Public 
Accounting Firm” in the 2024  Proxy Statement and is incorporated herein by reference.Table of Contents Alphabet Inc.
90.


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PART IV
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
We have filed the following documents as part of this Annual Report on Form 10-K:
1. Consolidated Financial Statements
Reports of Independent Registered Public Accounting Firm 48
Financial Statements:
Consolidated Balance Sheets 51
Consolidated Statements of Income 52
Consolidated Statements of Comprehensive Income 53
Consolidated Statements of Stockholders’ Equity 54
Consolidated Statements of Cash Flows 55
Notes to Consolidated Financial Statements 56
2. Financial Statement Schedules
Schedule II: Valuation and Qualifying Accounts
The table below details the activity of the allowance for credit losses and sales credits for the years ended 
December 31, 2021 , 2022 , and 2023  (in millions):
Balance at
Beginning of Year Additions UsageBalance at
End of Year
Year ended December 31, 2021 $ 1,344 $ 2,092 $ (2,047) $ 1,389 
Year ended December 31, 2022 $ 1,389 $ 2,125 $ (2,301) $ 1,213 
Year ended December 31, 2023 $ 1,213 $ 3,115 $ (2,737) $ 1,591 
Note: Additions to the allowance for credit losses are charged to expense. Additions to the allowance for sales credits are charged against 
revenues.
All other schedules have been omitted because they are not required, not applicable, or the required information 
is otherwise included.
3. Exhibits
2.01 Agreement and Plan of Merger, dated 
October 2, 2015, by and among Google Inc., 
the Registrant and Maple Technologies Inc.Current Report on Form 8-K 
(File No. 001-37580) October 2, 2015
3.01 Amended and Restated Certificate of 
Incorporation of the RegistrantCurrent Report on Form 8-K 
(File No. 001-37580) June 3, 2022
3.02 Amended and Restated Bylaws of the 
Registrant, dated October 19, 2022Current Report on Form 8-K


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(File No. 001-37580)October 25, 2022
4.01 Specimen Class A Common Stock certificate Current Report on Form 8-K 
(File No. 001-37580)October 2, 2015
4.02 Specimen Class C Capital Stock certificate Current Report on Form 8-K 
(File No. 001-37580)October 2, 2015
4.03 Alphabet Inc. Deferred Compensation Plan Current Report on Form 8-K 
(File No. 001-37580)October 2, 2015
4.04 Transfer Restriction Agreement, dated 
October 2, 2015, between the Registrant and 
Larry Page and certain of his affiliates Current Report on Form 8-K 
(File No. 001-37580)October 2, 2015
4.05 Transfer Restriction Agreement, dated 
October 2, 2015, between the Registrant and 
Sergey Brin and certain of his affiliates Current Report on Form 8-K 
(File No. 001-37580)October 2, 2015
4.06 Joinder Agreement, dated December 31, 
2021, among the Registrant, Sergey Brin and 
certain of his affiliates  Annual Report on Form 10-K 
(File No. 001-37580)February 2, 2022Exhibit
Number DescriptionIncorporated by reference herein
Form DateTable of Contents Alphabet Inc.
91.


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4.07 Transfer Restriction Agreement, dated 
October 2, 2015, between the Registrant and 
Eric E. Schmidt and certain of its affiliatesCurrent Report on Form 8-K 
(File No. 001-37580)October 2, 2015
4.08 Class C Undertaking, dated October 2, 2015, 
executed by the RegistrantCurrent Report on Form 8-K 
(File No. 001-37580)October 2, 2015
4.09 Indenture, dated February 12, 2016, between 
the Registrant and The Bank of New York 
Mellon Trust Company, N.A., as TrusteeRegistration Statement on 
Form S-3 
(File No. 333-209510)February 12, 2016
4.10 Registrant Registration Rights Agreement 
dated December 14, 2015Registration Statement on 
Form S-3 
(File No. 333-209518)February 12, 2016
4.11 First Supplemental Indenture, dated April 27, 
2016, between the Registrant and The Bank 
of New York Mellon Trust Company, N.A., as 
trusteeCurrent Report on Form 8-K
(File No. 001-37580)April 27, 2016
4.12 Form of the Registrant’s 3.375% Notes due 
2024 (included in Exhibit 4.11)
4.13 Form of the Registrant’s 1.998% Note due 
2026Current Report on Form 8-K 
(File No. 001-37580)August 9, 2016
4.14 Form of Global Note representing the 
Registrant’s 0.450% notes due 2025Current Report on Form 8-K 
(File No. 001-37580)August 5, 2020
4.15 Form of Global Note representing the 
Registrant’s 0.800% notes due 2027Current Report on Form 8-K 
(File No. 001-37580)August 5, 2020
4.16 Form of Global Note representing the 
Registrant’s 1.100% notes due 2030Current Report on Form 8-K


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(File No. 001-37580)August 5, 2020
4.17 Form of Global Note representing the 
Registrant’s 1.900% notes due 2040Current Report on Form 8-K 
(File No. 001-37580)August 5, 2020
4.18 Form of Global Note representing the 
Registrant’s 2.050% notes due 2050Current Report on Form 8-K 
(File No. 001-37580)August 5, 2020
4.19 Form of Global Note representing the 
Registrant’s 2.250% notes due 2060Current Report on Form 8-K 
(File No. 001-37580)August 5, 2020
4.20 Description of Registrant’s Securities Annual Report on Form 10-K 
(File No. 001-37580)February 3, 2023
10.01 u Form of Indemnification Agreement entered 
into between the Registrant, its affiliates and 
its directors and officers Current Report on Form 8-K 
(File No. 001-37580)October 2, 2015
10.02 u*Form of Offer Letter for Directors
10.03 u Offer Letter, dated March 20, 2015, between 
Ruth Porat and Google Inc., as assumed by 
the Registrant on October 2, 2015Current Report on Form 8-K 
(File No. 001-36380)March 26, 2015
10.04 u Compensation Plan Agreement, dated 
October 2, 2015, between Google Inc. and 
the RegistrantCurrent Report on Form 8-K 
(File No. 001-37580)October 2, 2015
10.05 u Director Arrangements Agreement, dated 
October 2, 2015, between Google Inc. and 
the RegistrantCurrent Report on Form 8-K 
(File No. 001-37580)October 2, 2015
10.06 u Alphabet Inc. Deferred Compensation Plan Current Report on Form 8-K 
(File No. 001-37580)October 2, 2015
10.07 u Alphabet Inc. Amended and Restated 2012


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Stock PlanCurrent Report on Form 8-K
(File No. 001-37580)June 5, 2020
10.07.1 u Alphabet Inc. Amended and Restated 2012 
Stock Plan - Form of Alphabet Restricted 
Stock Unit AgreementAnnual Report on Form 10-K
(File No. 001-37580)February 4, 2020
10.07.2 u Alphabet Inc. 2012 Stock Plan - Form of 
Alphabet Restricted Stock Unit AgreementQuarterly Report on Form 10-
Q  (File No. 001-37580)November 3, 
2016Exhibit
Number DescriptionIncorporated by reference herein
Form DateTable of Contents Alphabet Inc.
92.


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10.08 u Alphabet Inc. Amended and Restated 2021 
Stock PlanCurrent Report on Form 8-K 
(file No. 001-37580)June 3, 2022
10.08.1 u Alphabet Inc. Amended and Restated 2021 
Stock Plan - Form of Alphabet Restricted 
Stock Unit AgreementQuarterly Report on Form 10-
Q (file No. 001-37580)July 28, 2021
10.08.2 u Alphabet Inc. Amended and Restated 2021 
Stock Plan - Form of Alphabet Restricted 
Stock Unit AgreementQuarterly Report on Form 10-
Q (File No. 001-37580)July 26, 2023
10.08.3 u Alphabet Inc. Amended and Restated 2021 
Stock Plan - Form of Alphabet 2022 CEO 
Performance Stock Unit AgreementAnnual Report on Form 10-K 
(File No. 001-37580) February 3, 2023
10.08.4 u Alphabet Inc. Amended and Restated 2021 
Stock Plan - Form of Alphabet 2022 Non-
CEO Performance Stock Unit AgreementAnnual Report on Form 10-K
(File No. 001-37580)February 4, 2020
10.08.5 u Alphabet Inc. Amended and Restated 2021 
Stock Plan - Form of Alphabet 2023 Non-
CEO Performance Stock Unit AgreementQuarterly Report on Form 10-
Q (File No. 001-37580)July 26, 2023
10.09 u Alphabet Inc. Company Bonus Plan, as 
amendedAnnual Report on Form 10-K
(File No. 001-37350)February 2, 2023
21.01 * Subsidiaries of the Registrant
23.01 * Consent of Independent Registered Public 
Accounting Firm
24.01 * Power of Attorney (incorporated by reference 
to the signature page of this Annual Report 
on Form 10-K)
31.01 * Certification of Chief Executive Officer 
pursuant to Exchange Act Rules 13a-14(a) 
and 15d-14(a), as adopted pursuant to 
Section 302 of the Sarbanes-Oxley Act of 
2002


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2002
31.02 * Certification of Chief Financial Officer 
pursuant to Exchange Act Rules 13a-14(a) 
and 15d-14(a), as adopted pursuant to 
Section 302 of the Sarbanes-Oxley Act of 
2002
32.01 ‡ Certifications of Chief Executive Officer and 
Chief Financial Officer pursuant to 18 U.S.C. 
Section 1350, as adopted pursuant to 
Section 906 of the Sarbanes-Oxley Act of 
2002
97.01 * Clawback Policy
101.INS * Inline XBRL Instance Document - the 
instance document does not appear in the 
Interactive Data File because its XBRL tags 
are embedded within the Inline XBRL 
document
101.SCH * Inline XBRL Taxonomy Extension Schema 
Document
101.CAL * Inline XBRL Taxonomy Extension Calculation 
Linkbase Document
101.DEF * Inline XBRL Taxonomy Extension Definition 
Linkbase Document
101.LAB * Inline XBRL Taxonomy Extension Label 
Linkbase DocumentExhibit
Number DescriptionIncorporated by reference herein
Form DateTable of Contents Alphabet Inc.
93.


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101.PRE * Inline XBRL Taxonomy Extension 
Presentation Linkbase Document
104 Cover Page Interactive Data File (embedded 
within the Inline XBRL document and 
contained in Exhibit 101)Exhibit
Number DescriptionIncorporated by reference herein
Form Date
_________________
u Indicates management compensatory plan, contract, or arrangement.
* Filed herewith.
‡ Furnished herewith.
ITEM 16. FORM 10-K SUMMARY
None.Table of Contents Alphabet Inc.
94.


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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has 
duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: January 30, 2024  
 ALPHABET INC.
By: /S/    S UNDAR  PICHAI        
Sundar Pichai
Chief Executive Officer
(Principal Executive Officer of the Registrant)
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes 
and appoints Sundar Pichai and Ruth M. Porat, jointly and severally, his or her attorney-in-fact, with the power of 
substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K and 
to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange 
Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or 
substitutes, may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been 
signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
 
 Table of Contents Alphabet Inc.
95.


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Signature Title Date
/S/    S UNDAR  PICHAIChief Executive Officer and Director (Principal 
Executive Officer) January 30, 2024
Sundar Pichai
/S/    R UTH M. P ORAT        President and Chief Investment Officer; Chief 
Financial Officer (Principal Financial Officer) January 30, 2024
Ruth M. Porat
/S/    A MIE THUENER  O'T OOLE        Vice President, Corporate Controller and 
Principal Accounting Officer January 30, 2024
Amie Thuener O'Toole
/S/    F RANCES H. A RNOLD        Director January 30, 2024
Frances H. Arnold
/S/    S ERGEY  BRIN        Co-Founder and Director January 30, 2024
Sergey Brin
/S/   R. M ARTIN  CHAVEZ       Director January 30, 2024
R. Martin Chávez
/S/    L. J OHN DOERR        Director January 30, 2024
L. John Doerr
/S/    R OGER  W. F ERGUSON JR.       Director January 30, 2024
Roger W. Ferguson Jr.
/S/    J OHN L. H ENNESSY         Director, Chair January 30, 2024
John L. Hennessy
/S/    L ARRY  PAGE        Co-Founder and Director January 30, 2024
Larry Page
/S/    K. R AM SHRIRAM       Director January 30, 2024
K. Ram Shriram
/S/    R OBIN L. W ASHINGTON       Director January 30, 2024
Robin L. WashingtonTable of Contents Alphabet Inc.
96.


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UNITED ST ATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________
FORM 10-K
__________________________
(Mark One)
☒    ANNUAL  REPOR T PURSUANT  TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE ACT  OF 1934
For the fiscal year  ended December  31, 2023
or
☐    TRANSITION REPOR T PURSUANT  TO SECTION 13 OR 15(d) OF  THE SECURITIES EXCHANGE ACT  OF 1934
For the transition period fr om            to            
Commission File Number: 001-35551
__________________________
Meta Platforms, Inc.
(Exact name of r egistrant as specified in its charter)
__________________________
Delawar e 20-1665019
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
1 Meta Way, Menlo Park, California 94025
(Address of principal executive offices and Zip Code)
(650) 543-4800
(Registrant's telephone number, including area code)
__________________________
Securities r egister ed pursuant to Section 12(b) of the Act:
Title of each class Trading symbol(s) Name of each exchange on which registered
Class A Common Stock, $0.000006 par value MET A The Nasdaq Stock Market LLC
Securities r egister ed pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☒   No   ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ☐  No  ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (Exchange Act) during the preceding
12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒     No  ☐


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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒     No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions
of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section
404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to
previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers
during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐     No   ☒
The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant as of June 30, 2023, the last business day of the registrant's most recently completed second fiscal


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quarter, was $637 billion based upon the closing price reported for such date on the Nasdaq Global Select Market. On January 26, 2024, the registrant had 2,200,048,907 shares of Class A common
stock and 349,356,199 shares of Class B common stock outstanding.


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DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant's Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated
herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2023.


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Meta Platforms, Inc.
Form 10-K
TABLE OF CONTENTS
Page
Note About Forward-Looking Statements 3
Limitations of Key Metrics and Other Data 4
PART I
Item 1. Business 7
Item 1A. Risk Factors 15
Item 1B. Unresolved Staff Comments 51
Item 1C. Cybersecurity 51
Item 2. Properties 52
Item 3. Legal Proceedings 52
Item 4. Mine Safety Disclosures 56
PART II
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 57
Item 6. [Reserved] 58
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 59
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 82
Item 8. Financial Statements and Supplementary Data 84
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 126
Item 9A. Controls and Procedures 126
Item 9B. Other Information 126
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 126
PART III
Item 10. Directors, Executive Officers and Corporate Governance 127
Item 11. Executive Compensation 127
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 127
Item 13. Certain Relationships and Related Transactions, and Director Independence 127
Item 14. Principal Accountant Fees and Services 127
PART IV
Item 15. Exhibit and Financial Statement Schedules 128
Item 16. Form 10-K Summary 130
Signatures 131
2


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Table of Contents
NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements. All statements contained in this Annual Report on Form 10-K other than
statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our
objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect,"
and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current
expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-
term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties
and assumptions, including those described in Part I, Item 1A, "Risk Factors" in this Annual Report on Form 10-K. Moreover, we operate in a very competitive
and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact
of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in
any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Annual
Report on Form 10-K may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking
statements.
We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given
these risks and uncertainties, readers are cautioned not to place undue reliance on such forward‑looking statements.
Unless expressly indicated or the context requires otherwise, the terms "Meta," "company," "we," "us," and "our" in this document refer to Meta
Platforms, Inc., a Delaware corporation, and, where appropriate, its subsidiaries. The term "Family" refers to our Facebook, Instagram, Messenger, and
WhatsApp products. For references to accessing Meta's products on the "web" or via a "website," such terms refer to accessing such products on personal


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computers. For references to accessing Meta's products on "mobile," such term refers to accessing such products via a mobile application or via a mobile-
optimized version of our websites such as m.facebook.com, whether on a mobile phone or tablet.
3


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Table of Contents
LIMITATIONS OF KEY METRICS AND OTHER DATA
The numbers for our key metrics are calculated using internal company data based on the activity of user accounts. We report our estimates of the
numbers of our daily active people (DAP), monthly active people (MAP), and average revenue per person (ARPP) (collectively, our "Family metrics") based
on the activity of users who visited at least one of Facebook, Instagram, Messenger, and WhatsApp (collectively, our "Family" of products) during the
applicable period of measurement. We have historically reported the numbers of our daily active users (DAUs), monthly active users (MAUs), and average
revenue per user (ARPU) (collectively, our "Facebook metrics") based on user activity only on Facebook and Messenger and not on our other products. We
believe our Family metrics better reflect the size of our community and the fact that many people are using more than one of our products. Beginning with our
Quarterly Report on Form 10-Q to be filed for the first quarter of 2024, we will no longer report DAUs, MAUs, ARPU, and MAP in our periodic reports filed
with the Securities and Exchange Commission, but will continue reporting DAP and ARPP (calculated based on DAP).
While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are
inherent challenges in measuring usage of our products across large online and mobile populations around the world. The methodologies used to measure these
metrics require significant judgment and are also susceptible to algorithm or other technical errors. In addition, we are continually seeking to improve our
estimates of our user base, and such estimates may change due to improvements or changes in our methodology. We regularly review our processes for
calculating these metrics, and from time to time we discover inaccuracies in our metrics or make adjustments to improve their accuracy, which can result in
adjustments to our historical metrics. Our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to
apply different methodologies for such adjustments. We generally do not intend to update previously disclosed Family metrics for any such inaccuracies or
adjustments that are within the error margins disclosed below.
In addition, our Family metrics and Facebook metrics estimates will differ from estimates published by third parties due to differences in methodology


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or other factors such as data limitations or other challenges in measuring large online and mobile populations. For example, our Family metrics estimates in
some instances exceed estimates of addressable online and mobile populations that are based on data published by third parties.
Family Metrics
Many people in our community have user accounts on more than one of our products, and some people have multiple user accounts within an individual
product. Accordingly, for our Family metrics, we do not seek to count the total number of user accounts across our products because we believe that would not
reflect the actual size of our community. Rather, our Family metrics represent our estimates of the number of unique people using at least one of Facebook,
Instagram, Messenger, and WhatsApp. We do not require people to use a common identifier or link their accounts to use multiple products in our Family, and
therefore must seek to attribute multiple user accounts within and across products to individual people. To calculate these metrics, we rely upon complex
techniques, algorithms and machine learning models that seek to count the individual people behind user accounts, including by matching multiple user
accounts within an individual product and across multiple products when we believe they are attributable to a single person, and counting such group of
accounts as one person. These techniques and models require significant judgment, are subject to data and other limitations discussed below, and inherently are
subject to statistical variances and uncertainties. We estimate the potential error in our Family metrics primarily based on user survey data, which itself is
subject to error as well. While we expect the error margin for our Family metrics to vary from period to period, we estimate that such margin generally will be
approximately 3% of our worldwide MAP. At our scale, it is very difficult to attribute multiple user accounts within and across products to individual people,
and it is possible that the actual numbers of unique people using our products may vary significantly from our estimates, potentially beyond our estimated error
margins. As a result, it is also possible that our Family metrics may indicate changes or trends in user numbers that do not match actual changes or trends.
To calculate our estimates of Family DAP and MAP, we currently use a series of machine learning models that are developed based on internal reviews
of limited samples of user accounts and calibrated against user survey data. We apply significant judgment in designing these models and calculating these
estimates. For example, to match user accounts within individual products and across multiple products, we use data signals such as similar device information,


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IP addresses, and user names. We also calibrate our models against data from periodic user surveys of varying sizes and frequency across our products, which
are inherently subject to error. The timing and results of such user surveys have in the past contributed, and may in the future contribute, to changes in our
reported Family metrics from period to period. In addition, our data limitations may affect our understanding of certain details of our business and increase the
risk of error for our Family metrics estimates.
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Our techniques and models rely on a variety of data signals from different products, and we rely on more limited data signals for some products compared to
others. For example, as a result of limited visibility into encrypted products, we have fewer data signals from WhatsApp user accounts and primarily rely on
phone numbers and device information to match WhatsApp user accounts with accounts on our other products. Any loss of access to data signals we use in our
process for calculating Family metrics, whether as a result of our own product decisions, actions by third-party browser or mobile platforms, regulatory or
legislative requirements, or other factors, also may impact the stability or accuracy of our reported Family metrics, as well as our ability to report these metrics
at all. Our estimates of Family metrics also may change as our methodologies evolve, including through the application of new data signals or technologies,
product changes, or other improvements in our user surveys, algorithms, or machine learning that may improve our ability to match accounts within and across
our products or otherwise evaluate the broad population of our users. In addition, such evolution may allow us to identify previously undetected violating
accounts (as defined below).
We regularly evaluate our Family metrics to estimate the percentage of our MAP consisting solely of "violating" accounts. We define "violating"
accounts as accounts which we believe are intended to be used for purposes that violate our terms of service, including bots and spam. In the fourth quarter of
2023, we estimated that approximately 3% of our worldwide MAP consisted solely of violating accounts. Such estimation is based on an internal review of a
limited sample of accounts, and we apply significant judgment in making this determination. For example, we look for account information and behaviors
associated with Facebook and Instagram accounts that appear to be inauthentic to the reviewers, but we have limited visibility into WhatsApp user activity due
to encryption. In addition, if we believe an individual person has one or more violating accounts, we do not include such person in our violating accounts
estimation as long as we believe they have one account that does not constitute a violating account. From time to time, we disable certain user accounts, make
product changes, or take other actions to reduce the number of violating accounts among our users, which may also reduce our DAP and MAP estimates in a
particular period. Violating accounts are very difficult to measure at our scale, and it is possible that the actual number of violating accounts may vary


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significantly from our estimates.
The numbers of Family DAP and MAP discussed in this Annual Report on Form 10-K, as well as ARPP, do not include users on our other products,
unless they would otherwise qualify as DAP or MAP, respectively, based on their other activities on our Family products.
Facebook Metrics
We regularly evaluate our Facebook metrics to estimate the number of "duplicate" and "false" accounts among our MAUs. A duplicate account is one
that a user maintains in addition to his or her principal account. We divide "false" accounts into two categories: (1) user-misclassified accounts, where users
have created personal profiles for a business, organization, or non-human entity such as a pet (such entities are permitted on Facebook using a Page rather than
a personal profile under our terms of service); and (2) violating accounts, which represent user profiles that we believe are intended to be used for purposes that
violate our terms of service, such as bots and spam. The estimates of duplicate and false accounts are based on an internal review of a limited sample of
accounts, and we apply significant judgment in making this determination. For example, to identify duplicate accounts we use data signals such as identical IP
addresses and similar user names, and to identify false accounts we look for names that appear to be fake or other behavior that appears inauthentic to the
reviewers. Any loss of access to data signals we use in this process, whether as a result of our own product decisions, actions by third-party browser or mobile
platforms, regulatory or legislative requirements, or other factors, also may impact the stability or accuracy of our estimates of duplicate and false accounts.
Our estimates also may change as our methodologies evolve, including through the application of new data signals or technologies or product changes that may
allow us to identify previously undetected duplicate or false accounts and may improve our ability to evaluate a broader population of our users. Duplicate and
false accounts are very difficult to measure at our scale, and it is possible that the actual number of duplicate and false accounts may vary significantly from our
estimates.
In the fourth quarter of 2023, we estimated that duplicate accounts may have represented approximately 10% of our worldwide MAUs. We believe the
percentage of duplicate accounts is meaningfully higher in developing markets such as the Philippines and Vietnam, as compared to more developed markets.


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In the fourth quarter of 2023, we estimated that false accounts may have represented approximately 4% of our worldwide MAUs. Our estimation of false
accounts can vary as a result of episodic spikes in the creation of such accounts, which we have seen originate more frequently in specific countries such as
Indonesia, Vietnam, and Nigeria. From time to time, we disable certain user accounts, make product changes, or take other actions to reduce the number of
duplicate or false accounts among our users, which may also reduce our DAU and MAU estimates in a particular period.
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The numbers of DAUs and MAUs discussed in this Annual Report on Form 10-K, as well as ARPU, do not include users on Instagram, WhatsApp, or
our other products, unless they would otherwise qualify as DAUs or MAUs, respectively, based on their other activities on Facebook.
User Geography
Our data regarding the geographic location of our users is estimated based on a number of factors, such as the user's IP address and self-disclosed
location. These factors may not always accurately reflect the user's actual location. For example, a user may appear to be accessing Facebook from the location
of the proxy server that the user connects to rather than from the user's actual location. The methodologies used to measure our metrics are also susceptible to
algorithm or other technical errors, and our estimates for revenue by user location and revenue by user device are also affected by these factors.
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PART I
Item 1.Business
Overview
Our mission is to give people the power to build community and bring the world closer together.
All of our products, including our apps, share the vision of helping to bring the metaverse to life. We build technology that helps people connect and
share, find communities, and grow businesses. Our products enable people to connect and share with friends and family through mobile devices, personal
computers, virtual reality (VR) and mixed reality (MR) headsets, and wearables. We also help people discover and learn about what is going on in the world
around them, enable people to share their experiences, ideas, photos and videos, and other activities with audiences ranging from their closest family members
and friends to the public at large, and stay connected everywhere by accessing our products. Meta is moving our offerings beyond 2D screens toward
immersive experiences like augmented and virtual reality to help build the metaverse, which we believe is the next evolution in social technology. Our vision
for the metaverse does not center on any single product, but rather an entire ecosystem of experiences, devices, and new technologies. While the metaverse is in
the very early stages of its development, we believe it will become the next computing platform and the future of social interaction. Across our work, we are
innovating in artificial intelligence (AI) technologies to build new experiences that help make our platform more social, useful, and immersive.
We report financial results for two segments: Family of Apps (FoA) and Reality Labs (RL). Currently, we generate substantially all of our revenue from
selling advertising placements on our family of apps to marketers, which is reflected in FoA. Ads on our platform enable marketers to reach people across a
range of marketing objectives, such as generating leads or driving awareness. Marketers purchase ads that can appear in multiple places including on Facebook,
Instagram, Messenger, and third-party applications and websites. RL generates revenue from sales of consumer hardware products, software, and content.
We invest in our business based on our company priorities. In 2024, we intend to focus on six key investment areas: AI, the metaverse, our discovery
engine, monetization of our products and services, regulatory readiness, and enhancing developer efficiency to build, iterate, and optimize products quickly.
Our AI investments support initiatives across our products and services, helping power the systems that rank content in our apps, our discovery engine that


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recommends relevant content, the tools advertisers use to reach customers, the development of new generative AI experiences, and the tools that make our
product development more efficient and productive.
The majority of our investments are directed toward developing our family of apps. In 2023, 80% of our total costs and expenses were recognized in
FoA and 20% were recognized in RL. Our FoA investments were $70.13 billion in 2023 and include expenses relating to headcount, data centers and technical
infrastructure as part of our efforts to develop our apps and our advertising services. We are also making significant investments in our metaverse efforts,
including developing virtual and augmented reality devices, software for social platforms, neural interfaces, and other foundational technologies. Our total RL
investments were $18.02 billion in 2023 and include expenses relating to headcount and technology development across these efforts. These are fundamentally
new technologies that we expect will evolve as the metaverse ecosystem develops, and many products for the metaverse may only be fully realized in the next
decade. Although it is inherently difficult to predict when and how the metaverse ecosystem will develop, we expect our RL segment to continue to operate at a
loss for the foreseeable future, and our ability to support our metaverse efforts is dependent on generating sufficient profits from other areas of our business. We
expect this will be a complex, evolving, and long-term initiative. We are investing now because we believe this is the next chapter of the internet and will
unlock monetization opportunities for businesses, developers, and creators, including around advertising, hardware, and digital goods.
Family of Apps Products
• Facebook. Facebook helps give people the power to build community and bring the world closer together. It's a place for people to share life's
moments and discuss what's happening, nurture and build relationships, discover and connect to interests, and create economic opportunity. They
can do this through Feed, Reels, Stories, Groups, Marketplace, and more.
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• Instagram. Instagram brings people closer to the people and things they love. Instagram Feed, Stories, Reels, Live, and messaging are places
where people and creators can connect and express themselves through photos, video, and private messaging, and discover and shop from their
favorite businesses.
• Messenger. Messenger is a simple yet powerful messaging application for people to connect with friends, family, communities, and businesses
across platforms and devices through text, audio, and video calls.
• Threads. Threads is an application for text-based updates and public conversations, where communities come together to discuss topics of interest.
People can connect directly with their favorite creators and others who love the same things or build a loyal following of their own to share their
ideas, opinions, and creativity with the world.
• WhatsApp. WhatsApp is a simple, reliable, and secure messaging application that is used by people and businesses around the world to
communicate and transact in a private way. Within WhatsApp we launched WhatsApp Channels, a one-to-many broadcast service designed to help
people follow information from people and organizations that are important to them.
Reality Labs Products
Many of our metaverse investments are directed toward long-term, cutting-edge research and development for products that are not on the market today
and may only be fully realized in the next decade. This includes exploring new technologies such as neural interfaces using electromyography, which lets
people control their devices using neuromuscular signals, as well as innovations in AI and hardware to help build next-generation interfaces. In the near term,
we are continuing to develop early metaverse experiences through Reality Labs products that help people feel connected, anytime, anywhere.
Our current product offerings in VR include our Meta Quest devices, as well as software and content available through the Meta Quest Store, which
enable a range of social experiences that allow people to defy physical distance while engaging in gaming, fitness, entertainment, and more. For example, Meta
Horizon Worlds is a social platform where people can interact with friends, meet new people, play games, and attend virtual events.
To drive greater adoption and acceptance of VR we have also introduced MR capabilities, which allow users to experience the immersion and presence
of VR while still being grounded in the physical world, through our Meta Quest Pro and Meta Quest 3 devices.
We have continued to advance our augmented reality (AR) roadmap to include offerings such as the Ray-Ban Meta smart glasses, which feature Meta


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AI, our advanced conversational assistant, as well as offer the ability to livestream video and let people stay more present through hands-free interaction. We
also offer Meta Spark, a platform that allows creators and businesses to build AR experiences that bring the digital and physical worlds together in our apps.
In general, while all of these investments are part of our long-term initiative to help build the metaverse, our VR and social platform efforts also include
notable shorter-term projects developing specific products and services to go to market, whereas our AR efforts are primarily directed toward longer-term
research and development projects. For example, in 2024, we expect to spend approximately 50% of our Reality Labs operating expenses on our AR initiatives,
approximately 40% on our VR (including MR) initiatives, and approximately 10% on social platforms and other initiatives. We apply significant judgment in
estimating this expense breakdown as there are certain shared costs across product lines, and our expectations are subject to change, including as the metaverse
ecosystem and our business strategies evolve. In particular, we regularly evaluate our product roadmaps and make significant changes as our understanding of
the technological challenges and market landscape and our product ideas and designs evolve.
Competition
Our business is characterized by innovation, rapid change, and disruptive technologies. We compete with companies providing connection, sharing,
discovery, and communication products and services to users online, as well as companies that sell advertising to businesses looking to reach consumers and/or
develop tools and systems for managing and optimizing advertising campaigns. We face significant competition in every aspect of our business, including, but
not limited to, companies that facilitate the ability of users to create, share, communicate, and discover content and information online or
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enable marketers to reach their existing or prospective audiences. We compete to attract, engage, and retain people who use our products, to attract and retain
businesses that use our free or paid business and advertising services, and to attract and retain developers who build compelling applications that integrate with
our products. We also compete with companies that develop and deliver consumer hardware and virtual and augmented reality products and services. We also
expect to face additional competition as we introduce or acquire new products, as our existing products evolve, or as other companies introduce new products
and services, including as part of efforts to develop the metaverse or innovate through the development and application of new technologies such as AI.
Technology
Our product development philosophy centers on continuous innovation in creating and improving products that are social by design, which means that
our products are designed to place people and their social interactions at the core of the product experience. As our user base grows, as engagement with
products like video, VR, and MR increases, and as we deepen our investment in new technologies, our computing needs continue to expand. We have designed
and built our own data centers and key portions of our technical infrastructure, and a substantial portion of our technical infrastructure is also provided by third
parties. Our ability to provide and continue to innovate our products and services depends on the continued availability of components, power, and network
capacity.
We make significant investments in technology both to improve our existing products and services and to develop new ones, as well as for our marketers
and developers. We are also investing in protecting the security, privacy, and integrity of our platform by investing in both people and technology to strengthen
our systems against abuse. Across all of these efforts, we are making significant investments in AI initiatives, including generative AI, to, among other things,
recommend relevant content across our products through our AI-powered discovery engine, enhance our advertising tools and improve our ad delivery,
targeting, and measurement capabilities, and to develop new products as well as new features for existing products.
Sales and Operations
The majority of our marketers use our self-service ad platform to launch and manage their advertising campaigns. We also have a global sales force that
is focused on attracting and retaining advertisers and providing support to them throughout the stages of the marketing cycle from pre-purchase decision-
making to real-time optimizations to post-campaign analytics. We work directly with these advertisers, as well as through advertising agencies and resellers.


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We operate offices in approximately 90 cities around the globe, the majority of which have a sales presence. We also invest in and rely on self-service tools to
provide direct customer support to our users and partners.
For our RL products, our sales and operations efforts utilize third-party sales channels such as retailers, resellers, and our direct-to-consumer channel,
Meta.com. These efforts are focused on driving consumer and enterprise sales and adoption of our Meta Quest portfolio of products and Ray-Ban Meta smart
glasses.
Marketing
Historically, our communities have generally grown organically with people inviting their friends to connect with them, supported by internal efforts to
stimulate awareness and interest. In addition, we have invested and will continue to invest in marketing our products and services to grow our brand and help
build community around the world.
Intellectual Property
To establish and protect our proprietary rights, we rely on a combination of patents, trademarks, copyrights, trade secrets, including know-how, license
agreements, confidentiality procedures, non-disclosure agreements with third parties, employee disclosure and invention assignment agreements, and other
contractual rights. In addition, to further protect our proprietary rights, from time to time we have purchased patents and patent applications from third parties.
We do not believe that our proprietary technology is dependent on any single patent or copyright or groups of related patents or copyrights. We believe the
duration of our patents is adequate relative to the expected lives of our products.
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Government Regulation
We are subject to a variety of laws and regulations in the United States and abroad that involve matters central to our business, many of which are still
evolving and being tested in courts, and could be interpreted in ways that could harm our business. These laws and regulations involve matters including
privacy, data use, data protection and personal information, the provision of our services to younger users, biometrics, encryption, rights of publicity, content,
integrity, intellectual property, advertising, marketing, distribution, data security, data retention and deletion, data localization and storage, data disclosure, AI
and machine learning, electronic contracts and other communications, competition, protection of minors, consumer protection, civil rights, accessibility,
telecommunications, product liability, e-commerce, taxation, economic or other trade controls including sanctions, anti-corruption and political law
compliance, securities law compliance, and online payment services. Foreign data protection, privacy, content, competition, consumer protection, and other
laws and regulations can impose different obligations or be more restrictive than those in the United States, and create the potential for significant fines to be
imposed.
These U.S. federal and state, EU, and other international laws and regulations, which in some cases can be enforced by private parties in addition to
government entities, are constantly evolving and can be subject to significant change. As a result, the application, interpretation, and enforcement of these laws
and regulations are often uncertain, particularly in the new and rapidly evolving industry in which we operate, and may be interpreted and applied
inconsistently from jurisdiction to jurisdiction and inconsistently with our current policies and practices. For example, regulatory or legislative actions or
litigation concerning the manner in which we display content to our users, moderate content, provide our services to younger users, or are able to use data in
various ways, including for advertising, or otherwise relating to content that is made available on our products, could adversely affect our financial results,
including by imposing significant fines that increasingly may be calculated based on global revenue. In the United States, in 2023, the U.S. Supreme Court
heard oral argument in a matter in which the scope of the protections available to online platforms under Section 230 of the Communications Decency Act
(Section 230) was at issue, but it ultimately declined to address Section 230 in its decision. In addition, there have been, and continue to be, various efforts to


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remove or restrict the scope of the protections available to online platforms under Section 230, and any such changes may increase our costs or require
significant changes to our products, business practices, or operations, which could adversely affect our business and financial results.
We are also subject to evolving laws and regulations that dictate whether, how, and under what circumstances we can transfer, process or receive certain
data that is critical to our operations, including data shared between countries or regions in which we operate and data shared among our products and services.
If we are unable to transfer data between and among countries and regions in which we operate, or if we are restricted from sharing data among our products
and services, it could affect our ability to provide our services, the manner in which we provide our services or our ability to target ads, which could adversely
affect our financial results. For example, the Privacy Shield, a transfer framework we relied upon for data transferred from the European Union to the United
States, was invalidated in July 2020 by the Court of Justice of the European Union (CJEU). In addition, the other bases upon which Meta relies to transfer such
data, such as Standard Contractual Clauses (SCCs), have been subjected to regulatory and judicial scrutiny. For example, although the CJEU upheld the
validity of SCCs as a basis to transfer user data from the European Union to the United States in July 2020, on May 12, 2023, the Irish Data Protection
Committee (IDPC) issued a Final Decision concluding that Meta Platforms Ireland's reliance on SCCs in respect of certain transfers of European Economic
Area (EEA) Facebook user data was not in compliance with the European General Data Protection Regulation (GDPR). The IDPC issued an administrative fine
of EUR €1.2 billion as well as corrective orders requiring Meta Platforms Ireland to suspend the relevant transfers and to bring its processing operations into
compliance with Chapter V GDPR by ceasing the unlawful processing, including storage, of such data in the United States. We are appealing this decision and
the corrective orders are currently subject to an interim stay from the Irish High Court. Separately, on March 25, 2022, the European Union and United States
announced that they had reached an agreement in principle on a new EU-U.S. Data Privacy Framework (EU-U.S. DPF). On October 7, 2022, President Biden


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signed the Executive Order on Enhancing Safeguards for United States Signals Intelligence Activities (E.O.), and on June 30, 2023, the European Union and
the three additional countries making up the EEA were designated by the United States Attorney General as a "qualifying state" under Section 3(f) of the E.O.
On July 10, 2023, the European Commission adopted an adequacy decision in relation to the United States. The adequacy decision concludes that the United
States ensures an adequate level of protection for personal data transferred from the European Union to organizations in the United States that are included in
the "Data Privacy Framework List," maintained and made publicly available by the United States Department of Commerce pursuant to the EU-U.S. DPF. The
implementation of the EU-U.S. DPF and the adequacy decision are important and welcome milestones, and we are implementing steps to comply with the
above corrective orders following engagement with the IDPC. If we are required to take additional steps to comply with the corrective orders, this could
increase the cost and complexity of delivering our products and services in Europe. Furthermore, the EU-U.S. DPF replaces
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two prior adequacy frameworks which were invalidated by the CJEU. A further invalidation of the EU-U.S. DPF by the CJEU could create considerable
uncertainty and lead to us being unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe, which
would materially and adversely affect our business, financial condition, and results of operations.
We have been subject to other significant legislative and regulatory developments, which together with proposed or new legislation and regulations
could significantly affect our business in the future. For example, we have implemented a number of product changes and controls as a result of requirements
under the GDPR, and may implement additional changes in the future. The GDPR also requires submission of personal data breach notifications to our lead
European Union privacy regulator, the IDPC, and includes significant penalties for non-compliance with the notification obligation as well as other
requirements of the regulation. The interpretation of the GDPR is still evolving, including through decisions of the CJEU, and draft decisions in investigations
by the IDPC are subject to review by other European privacy regulators as part of the GDPR's consistency mechanism, which may lead to significant changes
in the final outcome of such investigations. As a result, the interpretation and enforcement of the GDPR, as well as the imposition and amount of penalties for
non-compliance, are subject to significant uncertainty, and as it evolves, could potentially have a negative impact on our business and/or our operations. In
addition, Brazil, the United Kingdom, and other countries have enacted similar data protection regulations imposing data privacy-related requirements on
products and services offered to users in their respective jurisdictions. The California Consumer Privacy Act, as amended by the California Privacy Rights Act,
and similar laws recently enacted by other states also establish certain transparency rules and create certain data privacy rights for users. Some states have also
proposed or enacted laws specifically focused on the privacy rights and controls for users under 18 years old and their parents or guardians. Like
comprehensive privacy laws, these laws are evolving and subject to interpretation, and may restrict our ability to offer certain products and services provided to
all or certain cohorts of users in those states, adversely affecting our advertising business. In addition, the European Union's ePrivacy Directive and national
implementation laws impose additional limitations on the use of data across messaging products and include significant penalties for non-compliance. Changes


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to our products or business practices as a result of these or similar developments have adversely affected, and may in the future adversely affect, our advertising
business. For example, in response to regulatory developments in Europe, we announced plans to change the legal basis for behavioral advertising on Facebook
and Instagram in the EU, EEA, and Switzerland from "legitimate interests" to "consent," and in November 2023 we began offering users in the region a
"subscription for no ads" alternative. We are continuing to engage with regulators on our new consent model, including regarding compliance with
requirements under the GDPR, Digital Markets Act (DMA), and EU consumer laws. These or any similar developments in the future may negatively impact
our user growth and engagement, revenue, and financial results. Similarly, there are a number of legislative proposals or recently enacted laws in the European
Union, the United States, at both the federal and state level, as well as other jurisdictions that could impose new obligations or limitations in areas affecting our
business. For example, the DMA in the European Union imposes new restrictions and requirements on companies like ours, including in areas such as the
combination of data across services, mergers and acquisitions, and product design. The DMA also includes significant penalties for non-compliance, and its key
requirements will be enforceable against designated gatekeeper companies beginning in March 2024. The DMA has caused, and may in the future cause, us to
incur significant compliance costs and make changes to our products or business practices. The requirements under the DMA will likely be subject to further
interpretation and regulatory engagement. Pending or future proposals to modify competition laws in the United States and other jurisdictions could have
similar effects. We are also subject to content-related legislation such as the Digital Services Act (DSA) in the European Union, which started to apply to our
business as of August 2023, imposes certain restrictions and requirements for our products and services, and subjects us to increased compliance costs. The
DSA also includes significant penalties for non-compliance. In addition, some countries, such as India and Turkey, are considering or have passed legislation
implementing data protection requirements, new competition requirements, or requiring local storage and processing of data or similar requirements that could
require substantial changes to our products, increase the cost and complexity of delivering our services, cause us to cease the offering of our products and


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services in certain countries, and/or result in fines or other penalties. New legislation or regulatory decisions that restrict our ability to collect and use
information about minors may also result in limitations on our advertising services or our ability to offer products and services to minors in certain
jurisdictions.
We are, and expect to continue to be, the subject of investigations, inquiries, data requests, requests for information, actions, and audits by government
authorities and regulators in the United States, Europe, and around the world, particularly in the areas of privacy, data use and data protection, including with
respect to processing of sensitive data, data from third parties, data for advertising purposes, data security, minors, safety, law enforcement, consumer
protection, civil rights, content moderation, use of our platform for illegal, illicit, or otherwise objectionable activity, competition, AI, and machine learning.
We are also currently, and may in the future be, subject to regulatory orders or consent decrees, including the modified consent order we entered into with the
U.S. Federal Trade Commission (FTC), which took effect in April 2020 and,
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among other things, required us to significantly enhance our practices and processes for privacy compliance and oversight. The FTC also continues to monitor
us and our compliance with the modified consent order and initiated an administrative proceeding against us, which we are challenging, that alleges deficient
compliance and violations of the Children's Online Privacy Protection Act (COPPA), the COPPA Rule, and Section 5 of the Federal Trade Commission Act and
seeks changes to our business. If we are unsuccessful in our challenge to the FTC's action and the agency imposes its proposed order in its current form, we
would be subject to significant limitations, including on our ability to launch new and modified products or use data of users under 18 years old. Orders issued
by, or inquiries or enforcement actions initiated by, government or regulatory authorities could cause us to incur substantial costs, expose us to civil and
criminal liability (including liability for our personnel) or penalties (including substantial monetary remedies), interrupt or require us to change our business
practices in a manner materially adverse to our business (including changes to our products or user data practices), result in negative publicity and reputational
harm, divert resources and the time and attention of management from our business, or subject us to other structural or behavioral remedies that adversely
affect our business.
For additional information about government regulation applicable to our business, see Part I, Item 1A, "Risk Factors" in this Annual Report on Form
10-K.
Human Capital
At Meta, everything we do is about helping people feel connected and closer, and we are proud of our unique company culture.
We had a global workforce of 67,317 employees as of December 31, 2023, and we have offices in approximately 90 cities around the world. We are
committed to fostering an enriching environment for our workforce and we are focused on supporting our people in doing the best work of their careers. We
offer competitive compensation and a wide range of benefits, including many learning and development resources, and we work to build a diverse and
inclusive workplace.
Beginning in November 2022, we took a number of steps to reduce our expense base. For example, our cost reduction efforts have included scaling back
budgets, reducing company perks, shrinking our real estate footprint, and employee layoffs and restructurings. We make it a priority to treat outgoing


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employees with respect and provide a generous severance package. For U.S. employees, that includes severance of 16 weeks of base pay plus two additional
weeks for every year of service, payment for all remaining paid time off, restricted stock unit vesting through their last day on payroll, health insurance,
coverage of the cost of healthcare for employees and their families for six months, career services that included three months of career support with an external
vendor and early access to unpublished job leads, immigration support that included dedicated immigration specialists to help guide employees based on their
needs. We offer similar support for outgoing employees outside of the United States while taking into account local employment laws.
Employee Learning and Development
We value our investment in growing and keeping a highly skilled workforce. We aim to provide all of our employees with regular performance reviews
twice a year as we believe it is an important part of how we support their growth and career development while also recognizing and rewarding their impact at
Meta. We also offer career development opportunities and work experience programs that extend beyond the physical and virtual classroom. To do this, we
utilize various learning modalities, such as live virtual and in-person learning experiences, on-demand e-learning, self-service resources, learning communities,
and coaching engagements.
The Pulse of Our Workforce
Each year, we conduct company-wide employee surveys to help us understand how employees feel about working at Meta and what we can do to
improve their experience. Our surveys help us measure company, manager, team, and personal experience over time. Further, our more frequent surveys, such
as those that have been administered daily to an ongoing random sample of employees, allow us to measure real-time sentiment around emerging events and
company changes. These surveys are designed to invite feedback and actionable suggestions, inform decisions, and drive change across the company. In 2024,
we expect to update our listening strategy and product capabilities, based on feedback from key groups, to further improve actionability and impact.
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Compensation, Benefits, Health, and Well-being
We offer competitive compensation to attract and retain the best people, and we help care for our people so they can focus on our mission. Our
employees' total compensation package includes market-competitive salary, bonuses or sales incentives, and equity. We generally offer full-time employees
equity at the time of hire and through annual equity grants because we want them to be owners of the company and committed to our long-term success. We
have conducted pay equity analyses for many years, and continue to be committed to pay equity. For example, in July 2023, we announced that our analyses
confirm that we continue to have pay equity across genders globally and by race in the United States for people in similar jobs, accounting for factors such as
location, role, and level.
Through Life@ Meta, our holistic approach to benefits, we continue to provide our employees and their dependents with resources to help them thrive.
We offer a wide range of benefits across areas such as health, family, finance, community, and time away, including family building benefits, family care
resources, retirement savings plans, access to legal services, Meta Resource Groups to build community at Meta, and health and well-being benefits.
Our health and well-being programs are designed to give employees a choice of flexible benefits to help them reach their personal well-being goals. Our
programs are tailored to help boost employee physical and mental health, create financial peace of mind, provide support for families, and help employees
build a strong community. Programs are designed and funded to support needs like autism care, cancer care, transgender services, holistic well-being, including
mental health programs and retirement savings, which represent a few of the ways we support our employees and their dependents.
Diverse and Inclusive Workplace
We work to build a diverse and inclusive workplace where we can leverage our collective cognitive diversity to build the best products and make the
best decisions for the global community we serve.
In our 2023 Responsible Business Practices Report, we published our global diversity and U.S. ethnic diversity workforce data. As of December 31,
2022, our global employee base was composed of 45.4% underrepresented people, with 47.9% underrepresented people in the U.S., and 43.1% of our leaders


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in the U.S. being people of color. As published in our 2023 Responsible Business Practices Report, people with disabilities now represent 7.2% of our U.S.
workforce, and based on voluntary self-identification, veterans represented 2.3% and members of the LGBTQ+ community make up 9.8% of our U.S.
workforce.
We want our products to work for people around the world and we need to grow and keep the best talent in order to do that. We also remain committed
to having a skilled, inclusive and diverse workforce because we believe cognitive diversity fuels innovation. To aid in this effort, we have taken steps to reduce
bias from our hiring processes and performance management systems, as well as offering learning and development courses for our employees.
Corporate Information
We were incorporated in Delaware in July 2004. We completed our initial public offering in May 2012 and our Class A common stock is currently listed
on the Nasdaq Global Select Market under the symbol "META." Our principal executive offices are located at 1 Meta Way, Menlo Park, California 94025, and
our telephone number is (650) 543-4800.
Meta, the Meta logo, Meta Quest, Meta Horizon, Facebook, FB, Instagram, Oculus, WhatsApp, Reels, and our other registered or common law
trademarks, service marks, or trade names appearing in this Annual Report on Form 10-K are the property of Meta Platforms, Inc. or its affiliates. Other
trademarks, service marks, or trade names appearing in this Annual Report on Form 10‑K are the property of their respective owners.
Available Information
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to
Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (Exchange Act), are filed with the U.S. Securities and Exchange Commission
(SEC). We are subject to the informational requirements of the Exchange Act and file or furnish reports, proxy statements, and other information with the SEC.
Such reports and other information filed by us with the SEC are available free of charge on our website at investor.fb.com when such reports are
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available on the SEC's website. We use our investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg's Facebook Page
(www.facebook.com/zuck), Instagram account (www.instagram.com/zuck), and Threads profile (www.threads.net/zuck) as means of disclosing material non-
public information and for complying with our disclosure obligations under Regulation FD.
The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file
electronically with the SEC at www.sec.gov.
The contents of the websites referred to above are not incorporated into this filing. Further, our references to the URLs for these websites are intended to
be inactive textual references only.
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Item 1A.Risk Factors
Certain factors may have a material adverse effect on our business, financial condition, and results of operations. You should consider carefully the risks and
uncertainties described below, in addition to other information contained in this Annual Report on Form 10-K, including our consolidated financial statements
and related notes. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that
we currently believe are not material, may also become important factors that adversely affect our business. If any of the following risks actually occurs, our
business, financial condition, results of operations, and future prospects could be materially and adversely affected. In that event, the trading price of our
Class A common stock could decline, and you could lose part or all of your investment.
Summary Risk Factors
Our business is subject to a number of risks, including risks that may prevent us from achieving our business objectives or may adversely affect our
business, financial condition, results of operations, cash flows, and prospects. These risks are discussed more fully below and include, but are not limited to,
risks related to:
Risks Related to Our Product Offerings
•our ability to add and retain users and maintain levels of user engagement with our products;
•the loss of, or reduction in spending by, our marketers;
•reduced availability of data signals used by our ad targeting and measurement tools;
•ineffective operation with mobile operating systems or changes in our relationships with mobile operating system partners;
•failure of our new products, or changes to our existing products, to attract or retain users or generate revenue;
Risks Related to Our Business Operations and Financial Results
•our ability to compete effectively;
•fluctuations in our financial results;
•unfavorable media coverage and other risks affecting our ability to maintain and enhance our brands;
•our ability to build, maintain, and scale our technical infrastructure, and risks associated with disruptions in our service, catastrophic events, and
crises;
•operating our business in multiple countries around the world;
•acquisitions and our ability to successfully integrate our acquisitions;
•litigation, including class action lawsuits;
Risks Related to Government Regulation and Enforcement
•government restrictions on access to Facebook or our other products, or other actions that impair our ability to sell advertising, in their countries;


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•complex and evolving U.S. and foreign privacy, data use and data protection, content, competition, consumer protection, and other laws and
regulations, including the General Data Protection Regulation (GDPR), Digital Markets Act (DMA), and Digital Services Act (DSA);
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•the impact of government investigations, enforcement actions, and settlements, including litigation and investigations by privacy, consumer
protection, and competition authorities;
•our ability to comply with regulatory and legislative privacy requirements, including our consent order with the Federal Trade Commission (FTC);
Risks Related to Data, Security, Platform Integrity, and Intellectual Property
•the occurrence of security breaches, improper access to or disclosure of our data or user data, and other cyber incidents, as well as intentional misuse
of our services and other undesirable activity on our platform;
•our ability to obtain, maintain, protect, and enforce our intellectual property rights; and
Risks Related to Ownership of Our Class A Common Stock
•limitations on the ability of holders of our Class A Common Stock to influence corporate matters due to the dual class structure of our common stock
and the control of a majority of the voting power of our outstanding capital stock by our founder, Board Chair, and Chief Executive Officer (CEO).
Risks Related to Our Product Offerings
If we fail to retain existing users or add new users, or if our users decrease their level of engagement with our products, our revenue, financial results, and
business may be significantly harmed.
The size of our active user base and our users' level of engagement across our products are critical to our success. Our financial performance has been
and will continue to be significantly determined by our success in adding, retaining, and engaging active users of our products that deliver ad impressions,
particularly for Facebook and Instagram. We have experienced, and expect to continue to experience, fluctuations and declines in the size of our active user
base in one or more markets from time to time, particularly in markets where we have achieved higher penetration rates. User growth and engagement are also
impacted by a number of other factors, including competitive products and services, such as TikTok, that have reduced some users' engagement with our
products and services, as well as global and regional business, macroeconomic, and geopolitical conditions. For example, the COVID-19 pandemic led to
increases and decreases in the size and engagement of our active user base from period to period at different points during the pandemic. In addition, in
connection with the war in Ukraine, access to Facebook and Instagram was restricted in Russia and these services were then prohibited by the Russian


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government, which contributed to slight decreases in the size of our active user base following the onset of the war. Any future declines in the size of our active
user base may adversely impact our ability to deliver ad impressions and, in turn, our financial performance.
If people do not perceive our products to be useful, reliable, and trustworthy, we may not be able to attract or retain users or otherwise maintain or
increase the frequency and duration of their engagement. A number of other social networking companies that achieved early popularity have since seen their
active user bases or levels of engagement decline, in some cases precipitously. There is no guarantee that we will not experience a similar erosion of our active
user base or engagement levels. Our user engagement patterns have changed over time, and user engagement can be difficult to measure, particularly as we and
our competitors introduce new and different products and services. Any number of factors can negatively affect user retention, growth, and engagement,
including if:
•users increasingly engage with other competitive products or services;
•we fail to introduce new features, products, or services that users find engaging or if we introduce new products or services, or make changes to
existing products and services, that are not favorably received;
•users feel that their experience is diminished as a result of the decisions we make with respect to the frequency, prominence, format, size, and quality
of ads that we display;
•users have difficulty installing, updating, or otherwise accessing our products on mobile devices as a result of actions by us or third parties that we rely
on to distribute our products and deliver our services;
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•user behavior on any of our products changes, including decreases in the quality and frequency of content shared on our products and services;
•we are unable to continue to develop products for mobile devices that users find engaging, that work with a variety of mobile operating systems and
networks, and that achieve a high level of market acceptance;
•there are decreases in user sentiment due to questions about the quality or usefulness of our products or our user data practices, concerns about the
nature of content made available on our products, or concerns related to privacy, safety, security, well-being, or other factors;
•we are unable to manage and prioritize information to ensure users are presented with content that is appropriate, interesting, useful, and relevant to
them;
•we are unable to obtain or attract engaging third-party content;
•we are unable to successfully maintain or grow usage of and engagement with applications that integrate with our products;
•users adopt new technologies where our products may be displaced in favor of other products or services, or may not be featured or otherwise
available;
•there are changes mandated by legislation, government and regulatory authorities, or litigation that adversely affect our products or users;
•we are unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe, or are otherwise limited
in our business operations, as a result of European courts invalidating the EU-U.S. DPF or regulators, courts, or legislative bodies determining that the
legal bases we rely upon to transfer user data from the European Union to the United States are invalid;
•there is decreased engagement with our products, or failure to accept our terms of service, as part of changes that we have implemented or may
implement in the future, whether voluntarily, in connection with the GDPR, the European Union's ePrivacy Directive, the DMA, the DSA, U.S. state
privacy and youth social media laws including the California Consumer Privacy Act (CCPA), as amended by the California Privacy Rights Act
(CPRA), Arkansas Social Media Safety Act, Ohio Parental Notification Act, Utah Social Media Regulation Act, or other laws, regulations, or
regulatory actions, or otherwise;
•technical or other problems prevent us from delivering our products in a rapid and reliable manner or otherwise affect the user experience, such as
security breaches or failure to prevent or limit spam or otherwise objectionable content, or users feel their experience is diminished as a result of our


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efforts to protect the security and integrity of our platform;
•we adopt terms, policies, or procedures related to areas such as sharing, content, user data, or advertising, or we take, or fail to take, actions to enforce
our policies, that are perceived negatively by our users or the general public, including as a result of decisions or recommendations from the
independent Oversight Board regarding content on our platform;
•we elect to focus our product decisions on longer-term initiatives that do not prioritize near-term user growth and engagement (for example, we have
announced plans to focus product decisions on optimizing the young adult experience in the long term);
•we make changes in our user account login or registration processes or changes in how we promote different products and services across our family
of products;
•initiatives designed to attract and retain users and engagement, including the use of evolving technologies such as generative artificial intelligence, are
unsuccessful or discontinued, whether as a result of actions by us, our competitors, or other third parties, or otherwise;
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•third-party initiatives that may enable greater use of our products, including low-cost or discounted data plans, are scaled back or discontinued, or the
pricing of data plans otherwise increases;
•there is decreased engagement with our products as a result of taxes imposed on the use of social media or other mobile applications in certain
countries, internet shutdowns, or other actions by governments that affect the accessibility of our products in their countries (for example, beginning in
the first quarter of 2022, our user growth and engagement were adversely affected by the war in Ukraine and service restrictions imposed by the
Russian government);
•we fail to provide adequate customer service to users, marketers, developers, or other partners;
•we, developers whose products are integrated with our products, or other partners and companies in our industry are the subject of adverse media
reports or other negative publicity, including as a result of our or their user data practices; or
•our current or future products, such as our development tools and application programming interfaces that enable developers to build, grow, and
monetize applications, reduce user activity on our products by making it easier for our users to interact and share on third-party applications.
From time to time, certain of these factors have negatively affected user retention, growth, and engagement to varying degrees. If we are unable to
maintain or increase our user base and user engagement, particularly for our significant revenue-generating products like Facebook and Instagram, our revenue
and financial results may be adversely affected. Any significant decrease in user retention, growth, or engagement could render our products less attractive to
users, marketers, and developers, which is likely to have a material and adverse impact on our ability to deliver ad impressions and, accordingly, our revenue,
business, financial condition, and results of operations. As the size of our active user base fluctuates in one or more markets from time to time, we will become
increasingly dependent on our ability to maintain or increase levels of user engagement and monetization in order to grow revenue.
We generate substantially all of our revenue from advertising. The loss of marketers, or reduction in spending by marketers, could seriously harm our
business.
Substantially all of our revenue is currently generated from marketers advertising on Facebook and Instagram. As is common in the industry, our
marketers do not have long-term advertising commitments with us. Many of our marketers spend only a relatively small portion of their overall advertising


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budget with us. Marketers will not continue to do business with us, or they will reduce the budgets they are willing to commit to us, if we do not deliver ads in
an effective manner, if they do not believe that their investment in advertising with us will generate a competitive return relative to other alternatives, or if they
are not satisfied for any other reason. We have implemented, and we will continue to implement, changes to our user data practices. Some of these changes
reduce our ability to effectively target ads, which has to some extent adversely affected, and will continue to adversely affect, our advertising business. If we
are unable to provide marketers with a suitable return on investment, the demand for our ads may not increase, or may decline, in which case our revenue and
financial results may be harmed.
Our advertising revenue can also be adversely affected by a number of other factors, including:
•decreases in user engagement, including time spent on our products;
•our inability to continue to increase user access to and engagement with our products;
•product changes or inventory management decisions we may make that change the size, format, frequency, or relative prominence of ads displayed on
our products or of other unpaid content shared by marketers on our products;
•our inability to maintain or increase marketer demand, the pricing of our ads, or both;
•our inability to maintain or increase the quantity or quality of ads shown to users;
•changes to the content or application of third-party policies that limit our ability to deliver, target, or measure the
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effectiveness of advertising, including changes by mobile operating system and browser providers such as Apple and Google;
•adverse litigation, government actions, or legislative, regulatory, or other legal developments relating to advertising, including developments that may
impact our ability to deliver, target, or measure the effectiveness of advertising;
•user behavior or product changes that may reduce traffic to features or products that we monetize at a higher rate, such as our feed and Stories
products, including as a result of increased usage of our Reels or other video or messaging products;
•reductions of advertising by marketers due to our efforts to implement or enforce advertising policies that protect the security and integrity of our
platform;
•the availability, accuracy, utility, and security of analytics and measurement solutions offered by us or third parties that demonstrate the value of our
ads to marketers, or our ability to further improve such tools;
•loss of advertising market share to our competitors, including if prices to purchase our ads increase or if competitors offer lower priced, more
integrated, or otherwise more effective products;
•limitations on our ability to offer a number of our most significant products and services, including Facebook and Instagram, in Europe as a result of
European courts invalidating the EU-U.S. DPF or regulators, courts, or legislative bodies determining that the legal bases we rely upon to transfer user
data from the European Union to the United States are invalid;
•limitations on our ability to deliver ads to users under the age of 18 and, in some cases, to continue to offer certain products or services to certain
cohorts of users, whether voluntarily, as a result of new laws and regulations in the United States and other jurisdictions, or otherwise;
•changes in our marketing and sales or other operations that we are required to or elect to make as a result of risks related to complying with laws or
regulatory requirements or other government actions;
•decisions by marketers to reduce their advertising as a result of announcements by us or adverse media reports or other negative publicity involving
us, our user data practices, our advertising metrics or tools, content on our products, our interpretation, implementation, or enforcement of policies
relating to content on our products (including as a result of decisions or recommendations from the independent Oversight Board), developers with
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applications that are integrated with our products, or other companies in our industry;
•reductions of advertising by marketers due to illegal, illicit, or otherwise objectionable content made available on our products by third parties,
questions about our user data practices or the security of our platform, concerns about brand safety or potential legal liability, or uncertainty regarding
their own legal and compliance obligations;
•the effectiveness of our ad targeting or degree to which users consent to or opt out of the use of data for ads, including as a result of product changes
and controls that we have implemented or may implement in the future in connection with the GDPR, ePrivacy Directive, CCPA, as amended by the
CPRA, DMA, other laws, regulations, regulatory actions, or litigation, or otherwise, that impact our ability to use data for advertising purposes (for
example, in November 2023, in response to regulatory developments in Europe, we began offering our users a "subscription for no ads" alternative in
the EU, EEA, and Switzerland);
•the degree to which users cease or reduce the number of times they engage with our ads;
•changes in the way advertising on mobile devices or on personal computers is measured or priced;
•the success of technologies designed to block the display of ads or ad measurement tools;
•changes in the composition of our marketer base or our inability to maintain or grow our marketer base; and
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•the impact of macroeconomic and geopolitical conditions, whether in the advertising industry in general, or among specific types of marketers or
within particular geographies, which in turn can have broader effects in other regions (for example, the war in Ukraine and service restrictions
imposed by the Russian government have adversely affected our advertising business in Europe and other regions, and advertiser spending also can be
subject to adverse effects from the Israel-Hamas war).
From time to time, certain of these factors have adversely affected our advertising revenue to varying degrees. The occurrence of any of these or other
factors in the future could result in a reduction in demand for our ads, which may reduce the prices we receive for our ads, or cause marketers to stop
advertising with us altogether, either of which would negatively affect our revenue and financial results.
Our ad targeting and measurement tools incorporate data signals from user activity on websites and services that we do not control, as well as signals
generated within our products, and changes to the regulatory environment, third-party mobile operating systems and browsers, and our own products have
impacted, and we expect will continue to impact, the availability of such signals, which will adversely affect our advertising revenue.
Our ad targeting and measurement tools rely on data signals from user activity on websites and services that we do not control, as well as signals
generated within our products, in order to deliver relevant and effective ads to our users, and any changes in our ability to use such signals will adversely affect
our business. For example, legislative and regulatory developments, such as the GDPR, ePrivacy Directive, and CCPA, as amended by the CPRA, have
impacted, and we expect will continue to impact, our ability to use such signals in our ad products. In particular, we have seen increases in the number of users
opting to control certain types of ad targeting in Europe following product changes implemented in connection with our GDPR and ePrivacy Directive
compliance, and we have introduced product changes that limit data signal use for certain users in California following adoption of the CCPA. Judicial and
regulatory guidance, decisions, or enforcement actions, or new legislation in these or other jurisdictions, such as the DMA, may require us to make additional
changes to our products in the future that further reduce our ability to use these signals, which has occurred in the past. For example, in response to regulatory


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developments in Europe, we announced plans to change the legal basis for behavioral advertising on Facebook and Instagram in the European Union, European
Economic Area, and Switzerland from "legitimate interests" to "consent," and in November 2023 we began offering users in the region a "subscription for no
ads" alternative. We are continuing to engage with regulators on our new consent model, including regarding compliance with requirements under the GDPR,
DMA, and EU consumer laws.
In addition, mobile operating system and browser providers, such as Apple and Google, have implemented product changes and/or announced future
plans to limit the ability of websites and application developers to collect and use these signals to target and measure advertising. For example, in 2021, Apple
made certain changes to its products and data use policies in connection with changes to its iOS operating system that reduce our and other iOS developers'
ability to target and measure advertising, which has negatively impacted, and we expect will continue to negatively impact, the size of the budgets marketers
are willing to commit to us and other advertising platforms. In addition, we have implemented, and may continue to implement, product changes that give users
the ability to limit our use of such data signals to improve ads and other experiences on our products and services, including changes implemented in
connection with the GDPR, ePrivacy Directive, DMA, and other regulatory frameworks.
These developments have limited our ability to target and measure the effectiveness of ads on our platform and negatively impacted our advertising
revenue. For example, our advertising revenue has been negatively impacted by marketer reaction to targeting and measurement challenges associated with iOS
changes beginning in 2021. If we are unable to mitigate these developments as they take further effect in the future, our targeting and measurement capabilities
will be materially and adversely affected, which would in turn significantly impact our advertising revenue.
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Our user growth, engagement, and monetization on mobile devices depend upon effective operation with mobile operating systems, networks, technologies,
products, and standards that we do not control.
The substantial majority of our revenue is generated from advertising on mobile devices. There is no guarantee that popular mobile devices will continue
to feature our products, or that mobile device users will continue to use our products rather than competing products. We are dependent on the interoperability
of our products with popular mobile operating systems, networks, technologies, products, and standards that we do not control, such as the Android and iOS
operating systems and mobile browsers. Changes, bugs, or technical issues in such systems, or changes in our relationships with mobile operating system
partners, handset manufacturers, browser developers, or mobile carriers, or in the content or application of their terms of service or policies (which they have
made in the past and continue to seek to implement) that degrade our products' functionality, reduce or eliminate our ability to update or distribute our products,
give preferential treatment to competitive products, limit our ability to deliver, target, or measure the effectiveness of ads, or charge fees related to the
distribution of our products or our delivery of ads have adversely affected, and could in the future adversely affect, the usage of our products and monetization
on mobile devices. For example, Apple previously released an update to its Safari browser that limits the use of third-party cookies, which reduces our ability
to provide the most relevant ads to our users and impacts monetization, and also released changes to iOS that limit our ability to target and measure ads
effectively, while expanding their own advertising business. In addition, in January 2024, Google began the process of phasing out third-party cookies in its
Chrome browser. We expect that any similar changes to Apple's, Google's, or other browser or mobile platforms will further limit our ability to target and
measure the effectiveness of ads and impact monetization. Additionally, in order to deliver high quality mobile products, it is important that our products work
well with a range of mobile technologies, products, systems, networks, and standards that we do not control, and that we have good relationships with handset
manufacturers, mobile carriers, and browser developers. We may not be successful in maintaining or developing relationships with key participants in the
mobile ecosystem or in developing products that operate effectively with these technologies, products, systems, networks, or standards. In the event that it is


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more difficult for our users to access and use our products on their mobile devices, or if our users choose not to access or use our products on their mobile
devices or use mobile products that do not offer access to our products, our user growth and user engagement could be harmed. From time to time, we may also
take actions regarding the distribution of our products or the operation of our business based on what we believe to be in our long-term best interests. Such
actions may adversely affect our users and our relationships with the operators of mobile operating systems, handset manufacturers, mobile carriers, browser
developers, other business partners, or advertisers, and there is no assurance that these actions will result in the anticipated long-term benefits. In the event that
our users are adversely affected by these actions or if our relationships with such third parties deteriorate, our user growth, engagement, and monetization could
be adversely affected and our business could be harmed. We have experienced challenges in operating with mobile operating systems, networks, technologies,
products, and standards that we do not control, and any such occurrences in the future may negatively impact our user growth, engagement, and monetization
on mobile devices, which may in turn materially and adversely affect our business and financial results.
Our new products and changes to existing products could fail to attract or retain users or generate revenue and profits, or otherwise adversely affect our
business.
Our ability to retain, increase, and engage our user base and to increase our revenue depends heavily on our ability to continue to evolve our existing
products and to create successful new products, both independently and in conjunction with developers or other third parties. We may introduce significant
changes to our existing products or acquire or introduce new and unproven products, including using technologies with which we have little or no prior
development or operating experience. For example, we have relatively limited experience with consumer hardware products and virtual and augmented reality
technology, which may adversely affect our ability to successfully develop and market these evolving products and technologies. We are also making
significant investments in artificial intelligence (AI) initiatives across our business. For example, we recently launched new AI features on our products,
including conversational AIs, stickers, and editing tools. We continue to incur substantial costs, and we may not be successful in generating profits, in
connection with these efforts.
In addition, we have invested, and expect to continue to invest, significant resources in growing our messaging products to support increasing usage of


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such products. We have historically monetized messaging in only a limited fashion, and we may not be successful in our efforts to generate meaningful revenue
or profits from messaging over the long term. We also recently commenced implementation of end-to-end encryption across our messaging services on
Facebook and Instagram, which has been subject to governmental and regulatory scrutiny in multiple jurisdictions.
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If our new products or changes to existing products fail to engage users, marketers, or developers, or if our business plans are unsuccessful, we may fail
to attract or retain users or to generate sufficient revenue, operating margin, or other value to justify our investments, and our business may be adversely
affected.
We may not be successful in our artificial intelligence initiatives, which could adversely affect our business, reputation, or financial results.
We are making significant investments in AI initiatives, including generative AI, to, among other things, recommend relevant content across our
products, enhance our advertising tools, develop new products, and develop new features for existing products. In particular, we expect our AI initiatives will
require increased investment in infrastructure and headcount.
There are significant risks involved in developing and deploying AI and there can be no assurance that the usage of AI will enhance our products or
services or be beneficial to our business, including our efficiency or profitability. For example, our AI-related efforts, particularly those related to generative AI,
subject us to risks related to harmful or illegal content, accuracy, misinformation (including related to elections), bias, discrimination, toxicity, intellectual
property infringement or misappropriation, defamation, data privacy, cybersecurity, and sanctions and export controls, among others. It is also uncertain how
various laws related to online services, intermediary liability, and other issues will apply to content generated by AI. In addition, we are subject to the risks of
new or enhanced governmental or regulatory scrutiny, litigation, or other legal liability, ethical concerns, negative consumer perceptions as to automation and
AI, activities that threaten people's safety or well-being on- or offline, or other complications that could adversely affect our business, reputation, or financial
results.
As a result of the complexity and rapid development of AI, it is also the subject of evolving review by various governmental and regulatory agencies in
jurisdictions around the world, which are applying, or are considering applying, platform moderation, intellectual property, cybersecurity, and data protection
laws to AI and/or are considering general legal frameworks on AI. We may not always be able to anticipate how courts and regulators will apply existing laws
to AI, predict how new legal frameworks will develop to address AI, or otherwise respond to these frameworks as they are still rapidly evolving. We may also
have to expend resources to adjust our offerings in certain jurisdictions if the legal frameworks on AI are not consistent across jurisdictions.


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Further, we face significant competition from other companies that are developing their own AI features and technologies. Other companies may
develop AI features and technologies that are similar or superior to our technologies or are more cost-effective to develop and deploy. Given the long history of
development in the AI sector, other parties may have (or in the future may obtain) patents or other proprietary rights that would prevent, limit, or interfere with
our ability to make, use, or sell our own AI features. Further, our ability to continue to develop and effectively deploy AI technologies is dependent on access to
specific third-party equipment and other physical infrastructure, such as processing hardware and network capacity, as to which we cannot control the
availability or pricing, especially in a highly competitive environment.
We are also developing AI technology that we make available via open source, commercial, and non-commercial license agreements to third-parties that
can use this technology for use in their own products and services. We may not have insight into, or control over, the practices of third parties who may utilize
such AI technologies. As such, we cannot guarantee that third parties will not use such AI technologies for improper purposes, including through the
dissemination of illegal, inaccurate, defamatory or harmful content, intellectual property infringement or misappropriation, furthering bias or discrimination,
cybersecurity attacks, data privacy violations, other activities that threaten people's safety or well-being on- or offline, or to develop competing technologies.
While we may mitigate certain risks associated with the improper use of our AI models through both technical measures and the inclusion of contractual
restrictions on third-party use in any agreement between us and any third party, we cannot guarantee that such measures will be effective. Such improper use by
any third party could adversely affect our business, reputation, or financial results or subject us to legal liability.
It is not possible to predict all of the risks related to the use of AI and changes in laws, rules, directives, and regulations governing the use of AI may
adversely affect our ability to develop and use AI or subject us to legal liability.
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We make product and investment decisions that may not prioritize short-term financial results and may not produce the long-term benefits that we expect.
We frequently make product and investment decisions that may not prioritize short-term financial results if we believe that the decisions are consistent
with our mission and benefit the aggregate user experience and will thereby improve our financial performance over the long term. For example, we have
implemented, and we will continue to implement, changes to our user data practices. Some of these changes reduce our ability to effectively target ads, which
has to some extent adversely affected, and will continue to adversely affect, our advertising business. For example, our Off-Facebook Activity tool enables
users to place limits on our storage and use of information about their interactions with advertisers' apps and websites, which reduces our ability to deliver the
most relevant and effective ads to our users. Similarly, from time to time we update our feed display and ranking algorithms or other product features to
improve the user experience, and these changes have had, and may in the future have, the effect of reducing time spent and some measures of user engagement
with our products, which could adversely affect our financial results. From time to time, we also change the size, frequency, or relative prominence of ads as
part of our product and monetization strategies. In addition, we have made, and we expect to continue to make, other changes to our products which may
adversely affect the distribution of content of publishers, marketers, and developers, and could reduce their incentive to invest in their efforts on our products.
We also may introduce new features or other changes to existing products, or introduce new stand-alone products, that attract users away from properties,
formats, or use cases where we have more proven means of monetization, such as our feed products. In addition, as we focus on growing users and engagement
across our family of products, from time to time these efforts have reduced, and may in the future reduce, engagement with one or more products and services
in favor of other products or services that we monetize less successfully or that are not growing as quickly. For example, we plan to continue to promote Reels,
which we expect will continue to monetize at a lower rate than our feed and Stories products for the foreseeable future. These decisions may adversely affect
our business and results of operations and may not produce the long-term benefits that we expect.


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We may not be successful in our metaverse strategy and investments, which could adversely affect our business, reputation, or financial results.
We believe the metaverse, an embodied internet where people have immersive experiences beyond two-dimensional screens, is the next evolution in
social technology. In 2021, we announced a shift in our business and product strategy to focus on helping to bring the metaverse to life. We expect this will be a
complex, evolving, and long-term initiative that will involve the development of new and emerging technologies, continued investment in infrastructure as well
as privacy, safety, and security efforts, and collaboration with other companies, developers, partners, and other participants. However, the metaverse may not
develop in accordance with our expectations, and market acceptance of features, products, or services we build for the metaverse is uncertain. We regularly
evaluate our product roadmaps and make significant changes as our understanding of the technological challenges and market landscape and our product ideas
and designs evolve. In addition, we have relatively limited experience with consumer hardware products and virtual and augmented reality technology, which
may enable other companies to compete more effectively than us. We may be unsuccessful in our research and product development efforts, including if we are
unable to develop relationships with key participants in the metaverse or develop products that operate effectively with metaverse technologies, products,
systems, networks, or standards. Our metaverse efforts may also divert resources and management attention from other areas of our business. We expect to
continue to make significant investments in virtual and augmented reality and other technologies to support these efforts, and our ability to support these efforts
is dependent on generating sufficient profits from other areas of our business. In addition, as our metaverse efforts evolve, we may be subject to a variety of
existing or new laws and regulations in the United States and international jurisdictions, including in the areas of privacy, safety, competition, content
regulation, consumer protection, and e-commerce, which may delay or impede the development of our products and services, increase our operating costs,
require significant management time and attention, or otherwise harm our business. As a result of these or other factors, our metaverse strategy and investments
may not be successful in the foreseeable future, or at all, which could adversely affect our business, reputation, or financial results.
If we are not able to maintain and enhance our brands, our ability to maintain or expand our base of users, marketers, and developers may be impaired,


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and our business and financial results may be harmed.
We believe that our brands have significantly contributed to the success of our business. We also believe that maintaining and enhancing our brands is
critical to maintaining and expanding our base of users, marketers, and developers. Many of our new users are referred by existing users. Maintaining and
enhancing our brands will depend largely on our ability to continue to provide useful, reliable, trustworthy, and innovative products, which we may not do
successfully. We may introduce new products, terms of service, or policies that users do not like, which may negatively affect our brands.
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Additionally, the actions of our developers or advertisers may affect our brands if users do not have a positive experience using third-party applications
integrated with our products or interacting with parties that advertise through our products. We will also continue to experience media, legislative, or regulatory
scrutiny of our actions or decisions regarding user privacy, data use, encryption, content, product design, algorithms, advertising, competition, generative AI,
younger users, and other issues, including actions or decisions in connection with elections or geopolitical events, which has adversely affected, and may in the
future adversely affect, our reputation and brands. For example, beginning in September 2021, we became the subject of media, legislative, and regulatory
scrutiny as a result of a former employee's allegations and release of internal company documents relating to, among other things, our algorithms, advertising
and user metrics, and content enforcement practices, as well as misinformation and other undesirable activity on our platform, and user well-being. In addition,
in March 2018, we announced developments regarding the misuse of certain data by a developer that shared such data with third parties in violation of our
terms and policies. We also may fail to respond expeditiously or appropriately to the sharing of content on our services, or to practices by advertisers or
developers, that are illegal, illicit, or in violation of our policies, or fail to otherwise enforce our policies, address objectionable content or practices on our
services, or address other user concerns, which has occurred in the past and which could erode confidence in our brands.
Our brands may also be negatively affected by the actions of users that are deemed to be hostile or inappropriate to other users, by the actions of users
acting under false or inauthentic identities, by the use of our products or services to disseminate information that is deemed to be misleading (or intended to
manipulate opinions), by perceived or actual efforts by governments to obtain access to user information for security-related purposes or to censor certain
content on our platform, by the use of our products or services for illicit or objectionable ends, including, for example, any such actions around geopolitical
events or elections in the United States and around the world, by decisions or recommendations regarding content on our platform from the independent
Oversight Board, by research or media reports concerning the perceived or actual impacts of our products or services on user well-being, by our decisions


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regarding whether to remove content or suspend participation on our platform by persons who violate our community standards or terms of service, or by any
negative sentiment associated with our management.
Maintaining and enhancing our brands will require us to make substantial investments and these investments may not be successful. Certain of our
actions, such as the foregoing matter regarding developer misuse of data and concerns around our handling of political speech and advertising, hate speech, and
other content, as well as user well-being issues, have eroded confidence in our brands and may continue to do so in the future. If we fail to successfully
promote and maintain our brands or if we incur excessive expenses in this effort, our business and financial results may be adversely affected.
We may not be able to continue to successfully maintain or grow usage of and engagement with applications that integrate with our products.
We have made and are continuing to make investments to enable developers to build, grow, and monetize applications that integrate with our products.
Such existing and prospective developers may not be successful in building, growing, or monetizing applications that create and maintain user engagement.
Additionally, developers may choose to build on other platforms, including platforms controlled by third parties, rather than building products that integrate
with our products. We are continuously seeking to balance the distribution objectives of our developers with our desire to provide an optimal user experience,
and we may not be successful in achieving a balance that continues to attract and retain such developers. For example, from time to time, we have taken actions
to reduce the volume of communications from these developers to users on our products with the objective of enhancing the user experience, and such actions
have reduced distribution from, user engagement with, and our monetization opportunities from, applications integrated with our products. In addition, as part
of our efforts related to privacy, safety, and security, we conduct investigations and audits of platform applications from time to time, and we also have
announced several product changes that restrict developer access to certain user data. In some instances, these actions, as well as other actions to enforce our
policies applicable to developers, have adversely affected, or will adversely affect, our relationships with developers. If we are not successful in our efforts to
maintain or grow the number of developers that choose to build products that integrate with our products or if we are unable to continue to build and maintain
good relations with such developers, our user growth and user engagement and our financial results may be adversely affected.
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Risks Related to Our Business Operations and Financial Results
Our business is highly competitive. Competition presents an ongoing threat to the success of our business.
We compete with companies providing connection, sharing, discovery, and communication products and services to users online, as well as companies
that sell advertising to businesses looking to reach consumers and/or develop tools and systems for managing and optimizing advertising campaigns. We face
significant competition in every aspect of our business, including, but not limited to, companies that facilitate the ability of users to create, share, communicate,
and discover content and information online or enable marketers to reach their existing or prospective audiences. We compete to attract, engage, and retain
people who use our products, to attract and retain businesses that use our free or paid business and advertising services, and to attract and retain developers who
build compelling applications that integrate with our products. We also compete with companies that develop and deliver consumer hardware and virtual and
augmented reality products and services. We also expect to face additional competition as we introduce or acquire new products, as our existing products
evolve, or as other companies introduce new products and services, including as part of efforts to develop the metaverse or innovate through the development
and application of new technologies such as AI.
Some of our current and potential competitors may have greater resources, experience, or stronger competitive positions in certain product segments,
geographic regions, or user demographics than we do. For example, some of our competitors may be domiciled in different countries and subject to political,
legal, and regulatory regimes that enable them to compete more effectively than us. These factors may allow our competitors to respond more effectively than
us to new or emerging technologies and changes in market conditions. We believe that some users, particularly younger users, are aware of and actively
engaging with other products and services similar to, or as a substitute for, our products and services, and we believe that some users have reduced their use of
and engagement with our products and services in favor of these other products and services. In addition, from time to time we make updates to our products
and services to improve the user experience (including to help provide users with safe, positive, age-appropriate experiences), and these changes have had, and
may in the future have, the effect of reducing time spent and some measures of user engagement with our products and services. In the event that users


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increasingly engage with other products and services, we may experience a decline in use and engagement in key user demographics or more broadly, in which
case our business would likely be harmed.
Our competitors may develop products, features, or services that are similar to ours or that achieve greater acceptance, may undertake more far-reaching
and successful product development efforts or marketing campaigns, or may adopt more aggressive pricing policies. Some competitors may gain a competitive
advantage against us in areas where we operate, including: by making acquisitions; by limiting our ability to deliver, target, or measure the effectiveness of ads;
by imposing fees or other charges related to our applications or our delivery of ads; by making access to our products more difficult or impossible; by making it
more difficult to communicate with our users; or by integrating competing platforms, applications, or features into products they control such as mobile device
operating systems, search engines, browsers, or e-commerce platforms. For example, each of Apple and Google have integrated competitive products with iOS
and Android, respectively. In addition, Apple has released changes to iOS that limit our ability, and the ability of others in the digital advertising industry, to
target and measure ads effectively. As a result, our competitors may, and in some cases will, acquire and engage users or generate advertising or other revenue
at the expense of our own efforts, which would negatively affect our business and financial results. In addition, from time to time, we may take actions in
response to competitive threats, but we cannot assure you that these actions will be successful or that they will not negatively affect our business and financial
results.
We believe that our ability to compete effectively depends upon many factors both within and beyond our control, including:
•the popularity, usefulness, ease of use, performance, and reliability of our products compared to our competitors' products;
•the size and composition of our user base;
•the engagement of users with our products and competing products;
•our ability to attract and retain businesses who use our free or paid business and advertising services;
•the timing and market acceptance of products, including developments and enhancements to our or our competitors' products;
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•our safety and security efforts and our ability to protect user data and to provide users with control over their data;
•our ability to distribute our products to new and existing users;
•our ability to monetize our products;
•the frequency, size, format, quality, and relative prominence of the ads displayed by us or our competitors;
•customer service and support efforts;
•marketing and selling efforts, including our ability to measure the effectiveness of our ads and to provide marketers with a compelling return on their
investments;
•our ability to establish and maintain developers' interest in building applications that integrate with our products;
•our ability to establish and maintain publisher interest in integrating their content with our products;
•changes mandated by legislation, regulatory authorities, or litigation, some of which may have a disproportionate effect on us;
•acquisitions or consolidation within our industry, which may result in more formidable competitors;
•our ability to attract, retain, and motivate talented employees, particularly software engineers, designers, and product managers;
•our ability to cost-effectively manage our operations; and
•our reputation and brand strength relative to those of our competitors.
If we are not able to compete effectively, our user base, level of user engagement, and ability to deliver ad impressions may decrease, we may become
less attractive to developers and marketers, and our revenue and results of operations may be materially and adversely affected.
Our financial results will fluctuate from quarter to quarter and are difficult to predict.
Our quarterly financial results have fluctuated in the past and will fluctuate in the future. Additionally, we have a limited operating history with the
current scale of our business, which makes it difficult to forecast our future results. As a result, you should not rely upon our past quarterly financial results as
indicators of future performance. You should take into account the risks and uncertainties frequently encountered by companies in rapidly evolving markets.
Our financial results in any given quarter can be influenced by numerous factors, many of which we are unable to predict or are outside of our control,
including:
•our ability to maintain and grow our user base and user engagement, particularly for our products that deliver ad impressions;
•our ability to attract and retain marketers in a particular period;
•our ability to recognize revenue or collect payments from marketers or advertising agencies or resellers in a particular period;


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•fluctuations in spending by our marketers due to seasonality, such as historically strong spending in the fourth quarter of each year, episodic regional
or global events, or other factors;
•the frequency, prominence, size, format, and quality of ads shown to users;
•the success of technologies designed to block the display of ads;
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•changes to the content or application of third-party policies that limit our ability to deliver, target, or measure the effectiveness of advertising,
including changes by mobile operating system and browser providers such as Apple and Google;
•the pricing of our ads and other products;
•the diversification and growth of revenue sources beyond advertising on Facebook and Instagram;
•our ability to generate revenue from Payments, or the sale of our consumer hardware products or other products we may introduce in the future;
•changes to existing products or services or the development and introduction of new products or services by us or our competitors;
•user behavior or product changes that may reduce traffic to features or products that we successfully monetize;
•increases in marketing, sales, and other operating expenses that we will incur to grow and expand our business and to remain competitive, including
costs related to our data centers and technical infrastructure;
•costs related to our privacy, safety, security, and content review efforts, including as a result of implementing changes to our practices, whether
voluntarily, in connection with laws, regulations, regulatory actions, or decisions or recommendations from the independent Oversight Board, or
otherwise;
•costs and expenses related to the development, manufacturing, and delivery of our consumer hardware products;
•our ability to maintain gross margins and operating margins;
•costs related to acquisitions, including costs associated with amortization and additional investments to develop the acquired technologies;
•charges associated with impairment or abandonment of any assets on our balance sheet, including as a result of changes to our real property lease
arrangements and data center assets;
•our ability to obtain equipment, components, and labor for our data centers and other technical infrastructure in a timely and cost-effective manner;
•system failures or outages or government blocking that prevent us from serving ads for any period of time;
•breaches of security or privacy, and the costs associated with any such breaches and remediation;
•changes in the manner in which we distribute our products or inaccessibility of our products due to third-party actions;
•fees paid to third parties for content or the distribution of our products;
•refunds or other concessions provided to advertisers;
•share-based compensation expense, including acquisition-related expense;
•adverse litigation judgments, settlements, or other litigation-related costs;


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•adverse litigation judgments, settlements, or other litigation-related costs;
•changes in the legislative or regulatory environment, including with respect to privacy, data protection, antitrust, content, or AI, or actions by
governments or regulators, including fines, orders, or consent decrees;
•the overall tax rate for our business, which is affected by the mix of income we earn in the U.S. and in jurisdictions with different tax rates, the effects
of share-based compensation, the effects of integrating intellectual property from
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acquisitions, the effects of changes in our business or structure, and the effects of discrete items such as legal and tax settlements and tax elections;
•the impact of changes in tax laws or judicial or regulatory interpretations of tax laws, which are recorded in the period such laws are enacted or
interpretations are issued, and may significantly affect the effective tax rate of that period;
•tax obligations that may arise from resolutions of tax examinations, including the examination we are currently under by the Internal Revenue Service
(IRS), that materially differ from the amounts we have anticipated;
•fluctuations in currency exchange rates and changes in the proportion of our revenue and expenses denominated in foreign currencies;
•trading activity in our share repurchase program;
•fluctuations in the market values of our investments in marketable securities, in the valuation of our non-marketable equity securities, and in interest
rates;
•the incurrence of indebtedness or our ability to refinance existing indebtedness on acceptable terms;
•changes in U.S. generally accepted accounting principles; and
•changes in regional or global business, macroeconomic, or geopolitical conditions, which may impact the other factors described above.
Unfavorable media coverage negatively affects our business.
We receive a high degree of media coverage around the world. Our reputation has been, and could in the future be, adversely affected by unfavorable
publicity regarding, for example, our privacy practices, advertising policies, product decisions, product quality, litigation or regulatory activity, government
surveillance, the actions of our advertisers, the actions of our developers whose products are integrated with our products, the use of our products or services
for illicit or objectionable ends, the substance or enforcement of our community standards, terms of service, or other policies, the actions of our users, the
quality and integrity of content shared on our platform, the perceived or actual impacts of our products or services on user well-being, our management, or the
actions of other companies that provide similar services to ours. For example, we have been the subject of significant media coverage involving concerns
around our handling of political speech and advertising, hate speech, and other content, as well as user well-being issues, and we continue to receive negative
publicity related to these topics. Beginning in September 2021, we became the subject of significant media coverage as a result of allegations and the release of


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internal company documents by a former employee. In addition, we have been, and may in the future be, subject to negative publicity in connection with our
handling of misinformation and other illicit or objectionable use of our products or services, including in connection with geopolitical events and elections in
the United States and around the world. Any such negative publicity could have an adverse effect on the size, engagement, and loyalty of our user base and
marketer demand for advertising on our products, which could result in decreased revenue and adversely affect our business and financial results, and we have
experienced such adverse effects to varying degrees from time to time.
We are subject to the risk of catastrophic events and crises, which may have a significant adverse impact on our business and operations.
We are subject to the risk of public health crises such as pandemics, earthquakes, adverse weather conditions, other natural disasters, terrorism,
geopolitical conflict, other physical security threats, power loss, cyber-attacks, and other catastrophic events and crises. For example, the COVID-19 pandemic
previously significantly impacted our business and results of operations. In particular, the pandemic resulted in authorities implementing numerous
preventative measures from time to time to contain or mitigate the outbreak of the virus, such as travel bans and restrictions, limitations on business activity,
quarantines, and shelter-in-place orders, which caused business slowdowns or shutdowns in certain affected countries and regions. These developments led to
volatility in the demand for and pricing of our advertising services at various points throughout the pandemic, and we may experience similar effects in the
future as a result of the pandemic or other catastrophic events. Such events also expose our business, operations, and workforce to a variety of other risks,
including:
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•volatility in the size of our user base and user engagement;
•delays in product development or releases, or reductions in manufacturing production and sales of consumer hardware, as a result of inventory
shortages, supply chain or labor shortages;
•significant volatility and disruption of global financial markets, which could cause fluctuations in currency exchange rates or negatively impact our
ability to access capital in the future;
•illnesses to key employees, or a significant portion of our workforce, which may result in inefficiencies, delays, and disruptions in our business; and
•increased volatility and uncertainty in the financial projections we use as the basis for estimates used in our financial statements.
Any of these developments may adversely affect our business, harm our reputation, or result in legal or regulatory actions against us.
We incur significant expenses in operating our business, and some of our investments, particularly our investments in Reality Labs, have the effect of
reducing our operating margin and profitability. If our investments are not successful longer-term, our business and financial performance will be
harmed.
We incur significant expenses in operating our business, and we expect our expenses to continue to increase in the future as we broaden our user base, as
users increase the amount and types of content they consume and the data they share with us, for example with respect to video, as we develop and implement
new products, as we market new and existing products and promote our brands, as we continue to expand our technical infrastructure, as we continue to invest
in new and unproven technologies, including AI and machine learning, and as we continue our efforts to focus on privacy, safety, security, and content review.
We have recently undertaken cost reduction measures in light of a more challenging operating environment, which may adversely affect these or other business
initiatives, and some of these measures have involved, and may in the future involve, up-front charges and outlays of cash to reduce certain longer-term
expenses. In addition, from time to time we are subject to settlements, judgments, fines, or other monetary penalties in connection with legal and regulatory
developments that may be material to our business. We are also continuing to increase our investments in new platforms and technologies, including as part of
our efforts related to building the metaverse. Some of these investments, particularly our significant investments in Reality Labs, have generated only limited


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revenue and reduced our operating margin and profitability, and we expect the adverse financial impact of such investments to continue for the foreseeable
future. For example, our investments in Reality Labs reduced our 2023 overall operating profit by approximately $16.12 billion, and we expect our Reality
Labs investments and operating losses to increase meaningfully in 2024. If our investments are not successful longer-term, our business and financial
performance will be harmed.
Our business is dependent on our ability to maintain and scale our technical infrastructure, and any significant disruption in our products and services
could damage our reputation, result in a potential loss of users and engagement, and adversely affect our financial results.
Our reputation and ability to attract, retain, and serve our users is dependent upon the reliable performance of our products and services and our
underlying technical infrastructure. We have experienced, and may in the future experience, interruptions in the availability or performance of our products and
services from time to time. Our systems may not be adequately designed or may not operate with the reliability and redundancy necessary to avoid
performance delays or outages that could be harmful to our business. If our products or services are unavailable when users attempt to access them, or if they
do not load as quickly as expected, users may not use our products or services as often in the future, or at all, and our ability to serve ads may be disrupted, any
of which could adversely affect our business and financial performance. We have experienced such issues to varying degrees from time to time. In addition, as
the amount and types of information shared on our products continue to grow and evolve, as the usage patterns of our global community continue to evolve,
and as our internal operational demands continue to grow, especially with the deployment of AI technologies, we will need an increasing amount of technical
infrastructure, including network capacity and computing power, to continue to satisfy our needs. It is possible that we may fail to continue to effectively scale
and grow our technical infrastructure to accommodate these increased demands, which may adversely affect our user engagement and advertising revenue. In
addition, our business may be subject to interruptions, delays, or failures resulting from earthquakes, adverse weather conditions, other natural
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disasters, power loss, terrorism, geopolitical conflict, other physical security threats, cyber-attacks, or other catastrophic events and crises. Global climate
change could result in certain types of natural disasters occurring more frequently or with more intense effects. Any such events may result in users being
subject to service disruptions or outages and we may not be able to recover our technical infrastructure and user data in a timely manner to restart or provide
our services, which may adversely affect our financial results. We also have been, and may in the future be, subject to increased energy and/or other costs to
maintain the availability or performance of our products and services in connection with any such events.
A substantial portion of our technical infrastructure is provided by third parties. Any disruption or failure in the services we receive from these providers
could harm our ability to handle existing or increased traffic and could significantly harm our business. Any financial or other difficulties these providers face
may adversely affect our business, and we exercise little control over these providers, which increases our vulnerability to problems with the services they
provide. We have experienced, and expect to continue to experience, various challenges with the supply chain related to supporting our technical infrastructure.
As a result, we have adjusted, and may continue to adjust in the future, our procurement practices to adapt to the evolving landscape. We may not be able to
secure sufficient components, equipment, or services from third parties to satisfy our needs, or we may be required to procure such components, equipment, or
services on unfavorable terms.
Any of these developments may result in interruptions in the availability or performance of our products or services, require unfavorable changes to
existing products or services, delay the introduction of future products or services, or otherwise adversely affect our business and financial results.
We have experienced, and could experience in the future, difficulties in building and operating key portions of our technical infrastructure.
We have designed and built our own data centers and key portions of our technical infrastructure through which we serve our products, and we plan to
continue to significantly expand the size of our infrastructure primarily through data centers, subsea and terrestrial fiber optic cable systems, and other projects.
The infrastructure expansion we are undertaking is complex and involves projects in multiple locations around the world, including in developing regions that
expose us to increased risks relating to anti-corruption compliance, trade compliance, and political challenges, among others. We have changed, suspended, and


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terminated certain of these projects as a result of various factors, and may continue to do so in the future. Additional unanticipated delays or disruptions in the
completion of these projects, including due to the availability of components, power, or network capacity, or any shortage of labor necessary in building
portions of such projects, challenges in obtaining required government or regulatory approvals, or other geopolitical challenges or actions by governments,
whether as a result of trade disputes or otherwise, may lead to increased project costs, operational inefficiencies, interruptions in the delivery or degradation of
the quality or reliability of our products and services, or impairment of assets on our balance sheet. For example, like others in our industry, we rely on certain
third-party equipment and components for our technical infrastructure that are manufactured by a small number of third parties, often with significant
operations in a single region such as Asia. Any of the foregoing delays or disruptions, including actions by governments or geopolitical events such as
international conflicts, could result in tariffs, sanctions, export controls, and other measures that restrict international trade, could reduce or eliminate the ability
of our suppliers, manufacturers, or other third-party providers to continue their operations to manufacture, or limit or eliminate our ability to purchase, key
components of our technical infrastructure.
In addition, there may be issues related to this infrastructure that are not identified during the testing phases of design and implementation, which may
only become evident after we have started to fully utilize the underlying equipment, that could further degrade the user experience or increase our costs.
Further, much of our technical infrastructure is located outside the United States, and action by a foreign government, or our response to such government
action, has resulted, and may result in the future, in the impairment of a portion of our technical infrastructure, which may interrupt the delivery or degrade the
quality or reliability of our products and lead to a negative user experience or increase our costs. Any of these events could adversely affect our business,
reputation, or financial results.
Real or perceived inaccuracies in our community and other metrics may harm our reputation and negatively affect our business.
The numbers for our key metrics, which include our Family metrics (DAP, MAP, and average revenue per person (ARPP)) and Facebook metrics
(DAUs, MAUs, and average revenue per user (ARPU)), are calculated using internal company data based on the activity of user accounts. While these numbers


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are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring
usage of our products across large online and mobile populations around the world. The methodologies used to measure these metrics
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require significant judgment and are also susceptible to algorithm or other technical errors. In addition, we are continually seeking to improve our estimates of
our user base, and such estimates may change due to improvements or changes in our methodology. We regularly review our processes for calculating these
metrics, and from time to time we discover inaccuracies in our metrics or make adjustments to improve their accuracy, which can result in adjustments to our
historical metrics. Our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to apply different
methodologies for such adjustments. We generally do not intend to update previously disclosed Family metrics for any such inaccuracies or adjustments that
are within the error margins disclosed below.
In addition, our Family metrics and Facebook metrics estimates will differ from estimates published by third parties due to differences in methodology
or other factors such as data limitations or other challenges in measuring large online and mobile populations. For example, our Family metrics estimates in
some instances exceed estimates of addressable online and mobile populations that are based on data published by third parties.
Many people in our community have user accounts on more than one of our products, and some people have multiple user accounts within an individual
product. Accordingly, for our Family metrics, we do not seek to count the total number of user accounts across our products because we believe that would not
reflect the actual size of our community. Rather, our Family metrics represent our estimates of the number of unique people using at least one of Facebook,
Instagram, Messenger, and WhatsApp. We do not require people to use a common identifier or link their accounts to use multiple products in our Family, and
therefore must seek to attribute multiple user accounts within and across products to individual people. To calculate these metrics, we rely upon complex
techniques, algorithms and machine learning models that seek to count the individual people behind user accounts, including by matching multiple user
accounts within an individual product and across multiple products when we believe they are attributable to a single person, and counting such group of
accounts as one person. These techniques and models require significant judgment, are subject to data and other limitations discussed below, and inherently are
subject to statistical variances and uncertainties. We estimate the potential error in our Family metrics primarily based on user survey data, which itself is
subject to error as well. While we expect the error margin for our Family metrics to vary from period to period, we estimate that such margin generally will be


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approximately 3% of our worldwide MAP. At our scale, it is very difficult to attribute multiple user accounts within and across products to individual people,
and it is possible that the actual numbers of unique people using our products may vary significantly from our estimates, potentially beyond our estimated error
margins. As a result, it is also possible that our Family metrics may indicate changes or trends in user numbers that do not match actual changes or trends.
To calculate our estimates of Family DAP and MAP, we currently use a series of machine learning models that are developed based on internal reviews
of limited samples of user accounts and calibrated against user survey data. We apply significant judgment in designing these models and calculating these
estimates. For example, to match user accounts within individual products and across multiple products, we use data signals such as similar device information,
IP addresses, and user names. We also calibrate our models against data from periodic user surveys of varying sizes and frequency across our products, which
are inherently subject to error. The timing and results of such user surveys have in the past contributed, and may in the future contribute, to changes in our
reported Family metrics from period to period. In addition, our data limitations may affect our understanding of certain details of our business and increase the
risk of error for our Family metrics estimates. Our techniques and models rely on a variety of data signals from different products, and we rely on more limited
data signals for some products compared to others. For example, as a result of limited visibility into encrypted products, we have fewer data signals from
WhatsApp user accounts and primarily rely on phone numbers and device information to match WhatsApp user accounts with accounts on our other products.
Any loss of access to data signals we use in our process for calculating Family metrics, whether as a result of our own product decisions, actions by third-party
browser or mobile platforms, regulatory or legislative requirements, or other factors, also may impact the stability or accuracy of our reported Family metrics,
as well as our ability to report these metrics at all. Our estimates of Family metrics also may change as our methodologies evolve, including through the
application of new data signals or technologies, product changes, or other improvements in our user surveys, algorithms, or machine learning that may improve
our ability to match accounts within and across our products or otherwise evaluate the broad population of our users. In addition, such evolution may allow us
to identify previously undetected violating accounts (as defined below).


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to identify previously undetected violating accounts (as defined below).
We regularly evaluate our Family metrics to estimate the percentage of our MAP consisting solely of "violating" accounts. We define "violating"
accounts as accounts which we believe are intended to be used for purposes that violate our terms of service, including bots and spam. In the fourth quarter of
2023, we estimated that approximately 3% of our worldwide MAP consisted solely of violating accounts. Such estimation is based on an internal review of a
limited sample of accounts, and we apply significant judgment in making this determination. For example, we look for account information and behaviors
associated with Facebook and Instagram accounts that appear to be inauthentic to the reviewers, but we have
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limited visibility into WhatsApp user activity due to encryption. In addition, if we believe an individual person has one or more violating accounts, we do not
include such person in our violating accounts estimation as long as we believe they have one account that does not constitute a violating account. From time to
time, we disable certain user accounts, make product changes, or take other actions to reduce the number of violating accounts among our users, which may
also reduce our DAP and MAP estimates in a particular period. Violating accounts are very difficult to measure at our scale, and it is possible that the actual
number of violating accounts may vary significantly from our estimates.
We also regularly evaluate our Facebook metrics to estimate the number of "duplicate" and "false" accounts among our MAUs. A duplicate account is
one that a user maintains in addition to his or her principal account. We divide "false" accounts into two categories: (1) user-misclassified accounts, where users
have created personal profiles for a business, organization, or non-human entity such as a pet (such entities are permitted on Facebook using a Page rather than
a personal profile under our terms of service); and (2) violating accounts, which represent user profiles that we believe are intended to be used for purposes that
violate our terms of service, such as bots and spam. The estimates of duplicate and false accounts are based on an internal review of a limited sample of
accounts, and we apply significant judgment in making this determination. For example, to identify duplicate accounts we use data signals such as identical IP
addresses and similar user names, and to identify false accounts we look for names that appear to be fake or other behavior that appears inauthentic to the
reviewers. Any loss of access to data signals we use in this process, whether as a result of our own product decisions, actions by third-party browser or mobile
platforms, regulatory or legislative requirements, or other factors, also may impact the stability or accuracy of our estimates of duplicate and false accounts.
Our estimates also may change as our methodologies evolve, including through the application of new data signals or technologies or product changes that may
allow us to identify previously undetected duplicate or false accounts and may improve our ability to evaluate a broader population of our users. Duplicate and
false accounts are very difficult to measure at our scale, and it is possible that the actual number of duplicate and false accounts may vary significantly from our
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estimates.
In the fourth quarter of 2023, we estimated that duplicate accounts may have represented approximately 10% of our worldwide MAUs. We believe the
percentage of duplicate accounts is meaningfully higher in developing markets such as the Philippines and Vietnam, as compared to more developed markets.
In the fourth quarter of 2023, we estimated that false accounts may have represented approximately 4% of our worldwide MAUs. Our estimation of false
accounts can vary as a result of episodic spikes in the creation of such accounts, which we have seen originate more frequently in specific countries such as
Indonesia, Vietnam, and Nigeria. From time to time, we disable certain user accounts, make product changes, or take other actions to reduce the number of
duplicate or false accounts among our users, which may also reduce our DAU and MAU estimates in a particular period.
Other data limitations also may affect our understanding of certain details of our business. For example, while user-provided data indicates a decline in
usage among younger users, this age data may be unreliable because a disproportionate number of our younger users register with an inaccurate age.
Accordingly, our understanding of usage by age group may not be complete.
In addition, our data regarding the geographic location of our users is estimated based on a number of factors, such as the user's IP address and self-
disclosed location. These factors may not always accurately reflect the user's actual location. For example, a user may appear to be accessing Facebook from
the location of the proxy server that the user connects to rather than from the user's actual location. The methodologies used to measure our metrics are also
susceptible to algorithm or other technical errors, and our estimates for revenue by user location and revenue by user device are also affected by these factors.
In addition, from time to time we provide, or rely on, certain other metrics and estimates, including those relating to the reach and effectiveness of our
ads. Many of our metrics involve the use of estimations and judgments, and our metrics and estimates are subject to software bugs, inconsistencies in our
systems, and human error. Such metrics and estimates also change from time to time due to improvements or changes in our terminology or methodology,
including as a result of loss of access to data signals we use in calculating such metrics and estimates. We have been, and may in the future be, subject to


