subject to U. foreign laws regulations new businesses products services technologies laws. governments proposed adopted new laws digital economy data privacy competition environmental AI online content. costs compliance high increase.


New changing laws regulations inconsistent practices less useful products services altered business practices business models costs liability. Examples include laws technology business practices large technology platforms Digital Markets Act European


settlements U. S. South Korea Google billing policies fees business model new regulations jurisdictions. Laws regulations development AI technologies digital products services penalties regulatory actions. agreement EU AI Act December 2023 transparency requirements AI systems models. White House Executive Order Artificial Intelligence. private sector development models. privacy collection processing Laws collection processing sharing advertising data privacy protection laws children's data breach notification laws limiting data transfers localization. intellectual property EU Directive Copyright Digital Single Market European Economic Area transpositions licensing regimes liability property rights payments regulatory actions.moderation laws removal disclosure obligations EU Digital Services Act Senate Bill 7072 House Bill 20 Singapore Australia United Kingdom penalties disclosure YouTube low-quality deceptive harmful content. protection New Deal Consumers penalties new compliance obligations.


applicability scope laws regulations uncertain business. rely safe harbors Digital Millennium Copyright Act Communications Decency Act. E-Commerce Directive liability linking caching ranking recommending hosting. Legislation rulings harbors operational challenges. legislative proposals. EU diminish safe harbor protection. development commercialization AI products services regulatory action legal liability data protection cybersecurity privacy intellectual property laws.


claims lawsuits investigations consent orders scrutiny liability business reputation financial results.


subject to claims lawsuits investigations orders competition intellectual property data privacy security tax compliance labor employment commercial disputes content services personal injury. product warranty liability consumer protection health safety hazardous materials environmental effects AI training development commercialization service disruptions. Claims defamation negligence breaches contract copyright trademark infringement unfair competition unlawful activity torts privacy violations fraud marketing branding content.


December 2023 California jury Epic Games. Google violated antitrust laws Play billing practices. judge remedies 2024. plan appeal. Department Justice. states plaintiffs filed antitrust lawsuits advertising Google Search Android Play Store. regulatory agencies. competition consumer protection data protection authorities business practices compliance. cooperating defending appealing.


laws regulations investigations lawsuits actions fines penalties injunctive relief changes products business models divestiture litigation consequences harm business reputation financial results.


legal proceedings could costs diversion negative publicity harms business. Estimating liabilities complex speculative judgment may estimates. resolution fines penalties injunctions sanctions business reputation financial condition operating results.


Legal Proceedings Part I Item 3 Annual Report Form.


Privacy data protection usage regulations evolving. business reputation financial results.


Authorities legislative proposals data protection usage encryption. Adverse legal rulings resulted fines orders practices business reputation financial condition results. laws regulations evolving subject interpretation compliance obligations could costs harm quality. laws include General Data Protection Regulation United Kingdom General Data Protection Regulations apply activities EU United Kingdom. U. S. state foreign privacy laws data privacy rights private right of action data breach obligations on controllers processors data. laws biometric information Illinois Biometric Information Privacy Act Texas Capture Use Biometric Identifier Act obligations. federal foreign laws age appropriate experiences minors. Children’s Online Privacy Protection Act 1998 United Kingdom Age-Appropriate Design Code address obligations services products. California Internet of Things Security Law regulates security data internet-connected devices.Digital Markets Act consent combining search engines share anonymized data.


subject to evolving laws regulations process personal data enforcement. validity data transfer mechanisms subject legal regulatory political developments Europe U. S. adapt arrangements.


face intellectual property claims costly defend damage indemnification limit use technologies.


internet technology media companies intellectual property rights patent copyright trade secrets trademarks. Parties sought relief. international courts. International Trade Commission exclusion cease-desist orders. patent-holding companies income patents claims. business intellectual property claims new products technologies.


Adverse results lawsuits include damages royalty licensing agreements orders limiting products services U. S. features services jurisdictions. change business practices loss revenues harm business.


agreements with customers require us defend against infringement claims indemnify increased costs damages. customers may discontinue products services technologies loss revenues harm business. intellectual property indemnities may not cover all damages losses. divestitures agreed to provide indemnification for liabilities including intellectual property claims. intellectual property claims time consuming expensive. could harm business product financial condition operating results.


ESG liabilities costs reputational.


subject to laws regulations measures topics products services. new laws regulations policies accords sustainability climate change human capital diversity Europe U. S. frameworks disclosure requirements. implemented ESG programs adopted reporting frameworks announced goals initiatives. investments complex ambitious may change. guarantee goals projects not achieve results. failure adhere statements comply ESG laws regulations meet stakeholder expectations standards harm business reputation financial condition operating results.


subject tax rates. tax legislation tax liabilities.


subject to taxes obligations U. S. foreign jurisdictions. tax rates affected by factors earnings gains losses hedges foreign exchange risk management program stock price employee compensation valuation deferred tax assets tax laws accounting principles.


collect taxes withholding agent liable taxes third parties.


subject to review audit domestic foreign tax authorities. received assessments multiple jurisdictions tax assertions transfer-pricing permanent-establishment claims. adverse outcome harm financial results changes inquiries. determination worldwide provision income taxes requires judgment uncertainty. estimates tax outcome differ affect financial results.


shifting economic conditions tax policies laws rates jurisdictions financial operating results. jurisdictions digital inconsistent international tax regimes.) negotiations 140 countries consensus changes international tax policies minimum global effective tax rate 15%. effective tax rate cash tax payments could increase.


guarantee share repurchase program stockholder value increase diminish cash reserves.


engage share repurchases Class A C stock authorizations Board Directors Alphabet. repurchase program expiration obligate Alphabet acquire shares. repurchases affect prices increase volatility reduce cash reserves prices.


stock ownership limits matters.


Class B 10 votes per share Class A one vote C no voting rights. December 31, 2023 Larry Page Sergey Brin owned 86. 5% Class B stock 51. 5% voting power. Larry Sergey influence matters election directors corporate transactions merger sale. Class C stock no voting rights issuance Larry Sergey’s voting power directors outcome matters. share repurchases affect Larry voting power. concentrated control matters reduce market price Class A Class C stock.


Delaware law discourage takeover stockholders.


in Alphabet’s certificate bylaws control management. include Board of Directors directors vacancy expansion resignation death removal. stockholders act written consent difficult actions without meeting. prohibits cumulative voting. limits minority stockholders.


Alphabet Inc. •Stockholders advance notice nominate for election Board propose matters meeting. provisions may discourage deter potential acquirer proxies control. Board of Directors may issue without approval undesignated preferred stock impede attempt.


Delaware corporation subject anti-takeover provisions. law business holder 15% voting stock unless three years Board Directors transaction. rely Delaware law prevent acquisition.


trading price A C volatile.


trading price stock experienced volatility may continue. Class A C stock fluctuated factors beyond control activities peers economic political conditions. factors could harm market price Class A C stock regardless operating performance.


operating results fluctuate difficult short expectations.


operating results fluctuated factors outside control cyclical seasonality geopolitical events. comparing operating results expenses revenues past results future performance. results future quarters may fall below expectations.


Acquisitions ventures investments divestitures dilution business results.


Acquisitions joint ventures investments divestitures important corporate strategy capital financial condition operating results. expect evaluate discussions potential strategic arrangements difficulties expenditures. risks include •diversion management to acquisitions obtain approvals governmental authorities conditions delay restrict financial goals integrate acquired operations technologies services personnel business controls procedures policies acquired company accounting administrative systems coordination product engineering sales marketing functions •transition operations users customers existing platforms foreign integrate operations across cultures languages address economic currency political regulatory risks accomplish commercial strategic financial objectives realize value lack liquidity


Alphabet. acquired patent trademark data privacy commercial disputes tax warranty product liabilities company terminated employees customers former stockholders third parties.


failure address risks past acquisitions arrangements realize benefits liabilities harm business.


acquisitions arrangements dilutive debt contingent liabilities amortization expenses impairment goodwill assets restructuring charges harm financial operating results. anticipated benefits materialize. agreed provide indemnification liabilities financial results.


rely skilled personnel retain hire adapt corporate culture grow operate effectively.


performance success service technical leads senior management team. Sundar Pichai critical Alphabet subsidiaries technology culture strategic direction.


future success depend hire develop skilled personnel. Competition for intense competitors targeted employees. compensation arrangements equity award programs attracting. Restrictive regulatory changes affect hire global talent. executive officers key employees at-will key-person life insurance policies.


believe corporate culture fosters innovation creativity teamwork. organization adapt culture-changing circumstances natural disaster pandemic changes affect culture. hybrid work models increased costs disruption potential effects culture.


maintain process identifying assessing managing risks cybersecurity. obtain input external experts teams. privacy safety security professionals oversee risk management prevention detection remediation. Leadership cybersecurity expertise Vice President Privacy. executive leadership team enterprise risk management system cybersecurity risks risks.


incident teams track log privacy security incidents Alphabet vendors third providers. incidents reviewed cross-functional group escalation. incident material escalated reported to senior management. consult outside counsel materiality analysis disclosure


senior management materiality compliance decisions. accounting developments.


Audit Compliance Committee cybersecurity disclosure cooperation law enforcement financial risks reports findings recommendations Board. Senior management discusses risks incidents. Internal Audit cybersecurity team tests controls.


business strategy results financial condition not affected by cybersecurity assurance future. information cybersecurity see Item 1A Risk Factors Annual Report Form 10-K.


headquarters Mountain View California. own lease office data centers Asia Europe North America. facilities.


Matters Note 10 Financial Statements Part II Item 8 Annual Report 10-K incorporated.


EQUITY STOCKHOLDER SECURITIES


October 2 2015, Alphabet. successor Google. Rule Exchange Act. Class A stock Nasdaq August 19, 2004, April 3, 2014. no public market. Class B. C since April 3 2014.


December 31, 2023 7,305 1,757 stockholders Class A C stock. shares held by brokers institutions estimate total. 2023 59 stockholders Class B stock.


never declared paid cash dividend stock. primary long-term growth. evaluate cash capital structure capital return.


table Alphabet repurchases A C stock December 2023 Class A Shares Purchased C Shares Price A C Shares Purchased Announced Programs Dollar Value Shares millions October 1 - 31,687.,610,736 November 1 - 30,197,198.,395,725 December 1 - 31,760.,262,347,622,645,267


Repurchases executed business conditions investment opportunities Rule 10b5-1 plans. expiration date. Note 11 Financial Statements Item 8 Annual Report Form 10-K.


price share repurchases.


graph matches Alphabet. five-year return S&P 500 NASDAQ RDG Internet Composite. $100 investment stock dividends December 31, 2018 2023. returns historical not future performance.


$100 2018 reinvestment dividends.


2024 S&P McGraw-Hill.


graph matches Alphabet. Class C five-year return S&P 500 NASDAQ RDG Internet. $100 investment Class C dividends December 31, 2018 2023. returns historical not future.


2018 index reinvestment dividends.


financial condition results Forward-Looking Statements Part Factors consolidated financial statements Item 8 Annual Report Form 10-K.


section discusses 2023 results 2022. Item 7 2022 Annual Report Form 10-K.


Alphabet Google. report Services Cloud non-Google Other Bets. Part I Item 1 Business Note 15 Statements 8 Annual Report 10-K.


long-term trends consolidated operations future behaviors advertising shift online digital economy.


evolution online contributed business revenues since. expect evolution revenues slower after growth advertising revenues COVID-19. increasing competition user engagement affect revenues. access diverse devices new advertising formats revenues affect margins.


users accessing products services smartphones wearables TVs smart home devices want. focused expanding products services trends maintain grow business.


benefit from advertising revenues mobile newer formats. margins lower desktop search. market device matures revenues. dynamics smartphone saturation affect mobile revenues.


expect TAC distribution Google Network increase revenues advertising revenues affected device geographic partner agreement queries paid access points product growth revenue share.


trends affect revenues margins. online advertising affect monetization.


interactions change online behavior evolves product affect monetization. YouTube Google Play monetize lower search ads. AI innovations monetization. focus user experience monetization. economies online revenues international markets increase require investments. foreign exchange rates affect revenues.


shift online multi-device opportunities outside U. S. emerging markets India. invest develop localized products. increased revenues emerging markets. results affected performance low-cost mobile devices. affect revenues developing markets monetize lower.


International revenues subject foreign currency. dollar foreign exchange risk management program offset effect revenues earnings. revenues beyond advertising increasing affect margins.


Revenues from cloud consumer subscriptions platforms devices grown expect trend expanding products services. margins vary lower than advertising. sales devices affect margins pricing cost. expand businesses invest operating capital expenditures.


research improve deploy AI. expect increase 2023 investment technical infrastructure servers network equipment data centers growth business long-term initiatives AI products services. acquisitions investments contribute expand expertise build partnerships. evolving regulatory environment subject claims lawsuits investigations legal liability affect business practices financial results.


Changes social political economic tax regulatory conditions laws fines business practices. global trends cost models products practices. Examples antitrust complaints. Department Justice state Attorneys General legislative proposals. safe harbor protection Digital Markets Act Digital Services Act legislative proposals. large technology platforms. Item 1A Risk Factors Legal Matters Note 10 Consolidated Financial Statements Part II Item 8 Annual Report Form 10-K. employees critical success.


employees critical success. competitive compensation. Culture Workforce Part I Item 1 Annual Report Form 10-K.


generate online advertising cloud solutions infrastructure platform services communication collaboration tools sales devices fees products. Note 1 Financial Statements Item 8 Annual Report Form 10-K.


long-term trends financial effect fluctuations revenues affected factors foreign currency exchange rates


Alphabet. pricing fee discounts incentives economic conditions external dynamics geopolitical regulations spending product launches.


fluctuations revenues advertising other sources subscriptions platforms devices Cloud Other Bets by factors unique.


Services advertising subscriptions platforms devices.


Google advertising revenues •Google Search revenues properties traffic search distribution partners. Google properties Gmail Maps Play ads revenues properties Network revenues properties AdMob AdSense Google Ad Manager.


metrics traffic advertising revenues paid clicks cost-per-click Google Search impressions cost-per-impression Google Network.


Paid clicks engagement advertisements Google search Gmail Maps Play. Cost-per-click-driven revenues divided paid clicks average advertisers.


Impressions Google Network AdMob AdSense Ad Manager. Cost-per-impression revenues divided impressions average advertisers.


business evolves review update methodologies monitoring counting paid clicks impressions identifying revenues.


advertising revenues paid clicks cost-per-click Google Search impressions cost-per Google Network affected •advertiser competition advertising quality formats delivery policy device mix fluctuations internet usage advertising expenditures business trends growth emerging markets verticals channels.


Google subscriptions platforms devices revenues subscriptions YouTube services Music NFL Sunday Ticket Google One Google Play apps in-app purchases Pixel family products services.


Google subscriptions platforms devices revenues affected by customer usage demand number subscribers timing product launches.


Google Cloud revenues Platform generates fees subscriptions infrastructure services. cybersecurity databases AI Vertex AI Duet AI Workspace subscriptions communication Calendar Gmail Docs Drive Duet AI enterprise services.


Fluctuations Google Cloud revenues affected by customer usage.


Revenues Bets healthcare internet.


cost structure revenues operating expenses. operating expenses include R&D sales marketing administrative functions. less variable correlate revenue. fluctuations compensation expenses correlate with headcount compensation awards four years.


revenues TAC costs. includes


paid partners search points. providers mobile carriers equipment software developers


paid Google partners ads properties. revenues


expense data centers content review support


acquisition costs payments content providers YouTube Google Play pay fees revenues flat


costs devices sell.


TAC revenues Google Network properties higher than Google Search other properties revenues Network paid as TAC partners.


Operating expenses incurred business R&D sales marketing.


R&D expenses •compensation employees products •depreciation-party services fees consulting outsourced services engineering product development.


sales marketing expenses •compensation employees support customer service advertising promotional activities products services.


expenses finance human resources technology legal legal matters fines settlements-party services fees audit consulting outsourced services.


&E interest income foreign currency exchange gains marketable-marketable securities performance fees equity investments.


investments Note 1 3 Financial Statements Part II Item 8 7A Disclosures Market Risk Annual Report Form 10-K.


Provision income taxes estimated federal state foreign. S. jurisdictions. includes reserve provisions changes interest penalties.


. tax Note 14 Consolidated Financial Statements Item 8 Annual Report Form 10-K.


table summarizes consolidated financial results millions per share Ended December 31, Change Consolidated revenues#307,394,558 Change consolidated currency Cost revenues,332,129% Operating expenses,769 Operating income,293,451#% Operating margin Other income Net income,795,823 Diluted EPS.


Non-GAAP Constant Currency Information. $307. 4 billion Google Services $19. 0 billion 8% Google Cloud $6. 8 billion 26%. constant currency revenues increased 10%. $133. 3 billion increase 6% driven content acquisition costs compensation expenses TAC. employee severance. benefited depreciation lives servers network equipment. expenses $89. 8 billion increase 10% compensation expenses office space optimization efforts. severance SBC expense. lives servers network equipment.


January 2023 announced reduction workforce recorded employee severance charges $2. 1 billion year December 31,. global office space. exit charges $1. 8 billion. incurred $269 million accelerated rent depreciation. Note 8 Notes Financial Statements. January 2023 assessment servers network equipment estimated life six years. reduction depreciation expense $3. 9 billion 2023 cost revenues R&D expenses. Note 1 Financial Statements.


Alphabet. July 2023 IRS rule change regulations. foreign tax credits. taxes 2022 2023. adjustment 2023 tax rate 13. 9% December 31, 2023. Class A C shares $62. 2 billion. Note 11 Financial Statements 8 Annual Report Form 10-K. cash flow $101. 7 billion. expenditures infrastructure $32. 3 billion. 182,502 employees.


table revenues Ended Google Search,450,033 YouTube ads Google Network,312 advertising subscriptions platforms devices,688 Services Cloud Bets Hedging gains revenues,394


Google revenues increased $12. 6 billion 2022 2023. queries advertiser spending ad formats delivery.


YouTube revenues increased $2. 3 billion 2022 2023. brand.


. billion 2022 2023 Ad Manager AdSense.


table monetization metrics Google Search Network 2022 to 2023 Google Paid clicks Cost-per-click Google Network Impressions Cost-per-impression


paid clicks impressions driven advertiser spending product policy search queries user adoption usage mobile.


cost-per-click-impression driven device geographic advertiser spending product policy property foreign rates.


Google subscriptions increased $5. 6 billion 2022 2023 YouTube. paid subscribers.


Google subscriptions platforms devices revenues increased $1. billion 2021 to 2022 offset decrease platform. growth YouTube services paid subscribers. Pixel devices. decrease Google Play fee structure changes decrease buyer spending. affected foreign currency exchange rates.


Cloud revenues increased $6. 8 billion 2022 2023. driven Platform Workspace.


table presents revenues geography addresses Ended December 31, United States EMEA APAC Americas Hedging gains


Note 2 Financial Statements Item 8 Annual Report.


International revenues transacted multiple currencies affected exchange rates.


effect currency exchange rates business comparisons. use non-GAAP constant currency revenues percentage change for financial operational decision-making comparisons. presentation results constant currency. Accounting Principles performance excludes effects foreign currency volatility results.


Constant currency compares results exchange rates. revenues excluding foreign currency rate movements hedging activities recognized consolidated level. currency revenues percentage change-year. calculated translating revenues rates hedging effects.


currency revenue change calculated revenues foreign currency revenues translated exchange rates hedging effects excluded.


results not substitute results GAAP. Results constant currency not comparable titled measures not measure performance GAAP.


table presents foreign currency exchange effect international revenues millions Ended December 31, 2023 Change Prior Period FX Effect Currency Revenues Hedging Effect United States,286 EMEA,578 APAC,273 Other Americas,320,974 Revenues excluding hedging effect,158 Hedging gains (losses Total,111


revenues $309. billion 2023. billion. billion 2022.


EMEA revenue growth affected currency rates. dollar Euro offset. strengthening Turkish.


APAC revenue currency rates. dollar strengthening Japanese.


Americas revenue growth currency rates. dollar Argentine peso.


table presents cost revenues TAC millions Ended December 31, TAC,566,955,886 Other cost revenues,446 Total cost,939,203,332 percentage


$7. billion 2022 2023 $5. $1. 9 billion.


increase TAC 2022 2023 due distribution partners revenues. TAC rate decreased 21. 8% to. 4% 2023 revenue Google Network Google Search. consistent 2022 2023.


increase revenues 2022 2023 due content acquisition YouTube compensation expenses $479 million employee severance. depreciation expense lives servers network equipment.


revenues $11. billion 2021 2022 device depreciation.


table presents R&D expenses millions except Ended December Research expenses,427 percentage revenues


R&D expenses increased $5. 9 billion 2022 2023 compensation $2. 9 billion $870 million office space optimization depreciation $722 million. billion 4% increase headcount SBC expense. $848 million employee severance. $722 million servers network equipment.


table presents sales marketing expenses millions Ended December Sales expenses#27,917 percentage revenues


Sales marketing expenses increased $1. 4 billion 2022 2023 compensation $1. 6 billion advertising $441 million. billion $497 million employee severance workforce.


table presents general administrative expenses millions except Ended December expenses percentage revenues#


expenses increased $701 million 2022 2023 compensation expenses $416 million $264 million employee severance workforce factors.


table presents operating income millions. Ended December Google Services,858 Cloud Bets,095) Alphabet,186) income,842,293


costs Alphabet activities hedging gains revenue $2. 0 billion $236 million 2022 2023. December 2023 activities reduction force office space optimization $3. 9 billion. incurred $269 million accelerated rent depreciation. workforce reduction Note 8 Financial Annual 10-K. Note 15.


Google Services income increased $13. 2 billion 2022 2023. revenues offset content acquisition costs SBC expense. lives servers network equipment.


Google Cloud income $1. 7 billion 2023 $1. 9 billion 2022 $3. 6 billion. revenues compensation expenses headcount growth. costs servers network equipment.


loss decreased $541 million 2022 2023 growth liabilities.


table OI


Alphabet Inc. Ended December Interest income,174,865 expense Foreign currency exchange gain(1,238) debt securities equity securities Performance fees Income equity investments income


OI&E increased $4. 9 billion 2022 to 2023. increase due fluctuations increased interest income interest rates.


Note 7 Financial Statements 8 Annual Report.


table provision income taxes effective tax Ended December Income before provision Provision taxes,922 Effective tax rate.


2023 Internal Revenue Services issued rule change apply regulations 2022. foreign tax credits capitalization amortization R&D expenses. cumulative-time adjustment 2023.


effective tax rate decreased 2022 2023 rule changes foreign tax credits. offset uncertain tax benefits. tax deduction.


OECD negotiations 140 countries tax minimum tax rate 15%. countries implemented legislation January 1 2024 change income tax 2024. jurisdictions tax rate cash tax payments increase.


December 2023 $110. 9 billion cash securities. deposits funds bonds debt mortgage equity.


sources liquidity cash equivalents securities cash flow operations. primary capital long-term growth. evaluate cash capital structure capital return.


table presents cash flows Ended December cash operating,495 investing(20,298),063) financing,757)(72,093)


cash advertising revenues Google Search Network YouTube. Services subscriptions sale apps purchases devices. Cloud fees subscriptions infrastructure collaboration services.


uses cash include distribution Google Network partners employees content providers. Other suppliers tax authorities expenditures.


Net cash increased 2022 2023 customers offset cash revenues expenses.


Cash investing activities maturities sales securities. Cash used purchases property equipment payments acquisitions.


cash investing 2022 2023 maturities sales offset payments acquisitions.


Cash financing debt sale interests consolidated entities. Cash repurchases stock payments repayments debt.


cash financing 2022 2023 repurchases.


expect cash equivalents securities flows financing commitments investing next 12 months foreseeable future.


land buildings data centers offices purchases equipment lease growth services products.


capital investments in property equipment categories infrastructure servers network equipment computing storage networking data center land building construction facilities building improvements-outs").


Construction progress technical infrastructure office facilities not service. purchase to months to years. data center multi-year phases acquire land secure install.


2022 2023 spent $31. 5 billion $32. 3 billion capital. increase investment technical infrastructure servers data centers growth AI products. Depreciation property. Land depreciated. 2022 2023 $13. 5 billion $11. 9 billion.


2022 2023 recognized lease assets $4. 4 billion $2. 9 billion. 2023 future payments $17. 7 billion $3. 2 billion short-term. $657 million $3. 3 billion Balance Sheets. 2024 2026 non one 25 years.


2022 2023 lease expenses $3. 7 billion $4. 5 billion. lease costs. Note 4 Financial Statements Annual Report Form.


short-term debt financing $10. billion commercial paper. December 2023 no commercial paper.


December 2023 $10. billion credit facilities $4. billion 2024 $6. billion 2028. interest rates market rates sustainability goals. borrowed.


December 2023 senior unsecured notes $12. 9 billion payments $214 million $3. 6 billion. 6 Annual Report.


utilize contract manufacturers assembly servers infrastructure devices. agreements purchase components supply manufacturers. arrangements cash manufacturers financing Consolidated Statements Cash Flows Item 8 Annual Report Form 10-K.


528 million shares $62.


2023 Alphabet repurchase $70. billion A C. December 2023 $36. billion repurchases.


table presents A C shares repurchased retired Ended 2022 2023 A repurchases#6,719,316 C repurchases,577,868,296,184


Shares repurchased unsettled.


Note 11 Financial Statements 8 Annual Report.


2017 2019 EC Google €2. 4 billion$2. 7 billion €4. 3 billion. €1. 5 billion. 20 2022 Court 2018 fine. 3 billion €4. 1 billion. Justice


EC decision included fines expenses liabilities Balance Sheets guarantees. Note 10 Financial Statements Item 8 Annual Report Form 10-K.


December 2023 income taxes $4. 2 billion $2. 1 billion short-term tax. Tax Cuts. 2025. long-term taxes $6. 3 billion uncertain tax positions.


December 31, 2023 purchase commitments obligations $45. 9 billion $31. 6 billion short-term. purchase orders technical infrastructure non-cancelable fee agreements. non obligation minimum quantities pricing. obligations change fulfillment. Note 10 Consolidated Financial Statements Item 8 Annual Report Form 10-K.


enter multi-year non-cancellable agreements renewable energy certificates. minimum dollar commitment. based volumes not determinable.


prepare consolidated financial statements GAAP. make estimates assumptions. critical estimates significant uncertainty changes financial condition results. actual results differ estimates. base estimates past experience assumptions evaluate. reviewed estimates with Audit Compliance Committee Board Directors.


accounting policies statements Note 1 Statements 8 Annual Report 10-K.


measure financial instruments nonrecurring non-marketable equity securities. measurement alternative method cost less impairment adjustments price changes issuer. adjustments require assessments unobservable inputs. Adjustments determined market approach estimates best information cash flow projections market data.


Non-marketable equity securities evaluated impairment financial liquidity position capital. indicators prepare measurements equity market income unobservable inputs discount rates revenues costs market data.


quantitative remeasurements impairment write investment.


compensation arrangements returns investments. fees. record compensation expense estimated payouts expense before returns unobservable inputs.


assess useful lives property equipment periodically changes business operations planned use utilization assets technological advancements change period benefit.


subject taxes. foreign jurisdictions. judgment tax positions provision.


Recording uncertain tax position involves considerations tax exposures applicability laws likelihood settlement. evaluate positions periodically changes new regulations judicial opinions audit activities. uncertain tax positions no final tax outcome different. differences affect provision income taxes effective tax rate.


provision income taxes includes reserve provisions changes net interest penalties. subject examination returns by IRS tax authorities assessments. assess adverse outcomes.


subject claims lawsuits investigations consent orders competition intellectual property privacy data security tax compliance labor employment commercial disputes content goods services personal injury protection. speculative claims damages. record liability loss. loss disclose Note 10 Consolidated Financial Statements Item 8 Annual Report Form 10-K.


evaluate developments legal matters liability accrued possible losses make adjustments disclosures. judgment required determine likelihood estimated loss. Until final resolution exposure loss recorded amounts material.


January 2023 assessment servers equipment six years. effective year 2023. Note 1 Consolidated Financial Statements Item 8 Annual Report Form 10-K.


exposed financial market risks currency equity.


transact business currencies. revenues costs expenses risk fluctuations. dollar. enter derivative instruments hedge risk. currencies Australian dollar British pound Canadian dollar Euro Japanese yen. historical trends adverse changes 10%.


use foreign currency option contracts exchange risk assets liabilities. reduce effect foreign currency exchange rate movements assets liabilities. currency gains losses recorded OI&E offset contracts.


adverse 10% foreign currency exchange rate change assets liabilities commitments adverse effect income $136 million $503 million December 31, 2022 2023 foreign exchange contracts.


use foreign currency option contracts collars protect. dollar earnings exchange rates. dollar strengthens gains reduce losses. weakens losses offset gains. contracts reduce eliminate effect exchange rate movements. designate cash flow hedges. reflect gains losses rate changes income reclassify into revenues offset hedged exposures.


. dollar weakened 10% December 2022 2023 AOCI hedges $1. 3 billion $1. 5 billion lower December 2022 2023. hedged revenues.


foreign exchange contracts investment hedges currency risks subsidiaries. currency translation risk.


. dollar weakened 10% investment hedges $903 million $946 million lower December 31, 2022 2023. change value foreign currency foreign subsidiaries.


Corporate Treasury investment strategy return capital liquidity. invest debt securities government bonds corporate debt mortgage asset-backed funds time deposits interest rate derivatives. limit credit exposure issuer. investments fixed floating rate rate risk. Fixed floating less income. Unrealized gains losses due interest rate fluctuations. fair value option changes recorded OI&E. measure securities gains losses AOCI less credit losses.


value-at-risk analysis effect fluctuations interest rates debt portfolio. expected loss value interest rates. variance/covariance VaR model 95% confidence interval. estimated one-day loss debt securities December 2022 2023-Month Average Risk category interest rate


future gains losses debt portfolio differ analyses 2022 2023 limitations interest rates exposures positions. VaR analysis losses risk estimation.


marketable non-marketable equity securities risks reduce value.


marketable securities publicly traded stocks non-marketable companies startup development.


record equity securities value stocks mutual funds volatility represent $5. 2 billion $6. 0 billion investments December 2022 2023. adverse price change 10% 2023 $597 million. derivatives hedge risk.


non-marketable equity securities not adjusted to fair value for transactions issuer measurement alternative. fair value not current balance. investments early stages risky financial loss. Valuations equity complex lack market data lower valuations losses. global economic conditions volatility. success investment on appreciation liquidity events public offerings private sales market events. valuation non-marketable equity securities not correlate with marketable equity securities. December 31, 2022 2023 carrying value non-marketable equity securities accounted $28. 5 billion $28. 8 billion.


equity investments $1. 7 billion December 31, 2022 2023 fluctuate price changes. exceeds value.


equity 1 3 Statements 8 Annual Report Form 10-K.


Reports Accounting Firm 42 Financial Statements Balance Sheets Income Comprehensive Equity Cash Flows


Stockholders Alphabet.


audited consolidated balance sheets Alphabet Inc. December 31, 2022 2023 statements income stockholders' equity cash flows three notes financial statement schedule Index Item 15. statements present financial position December 31, 2022 2023 results operations cash flows U. accounting principles.


audited Public Company Accounting Oversight Board control financial reporting December 31, 2023 Internal Framework report January 30, 2024 unqualified opinion.


financial statements responsibility Company management. opinion audits. public accounting firm registered PCAOB independent. federal securities laws Securities Exchange Commission PCAOB.


conducted audits standards PCAOB. standards require plan audit assurance financial statements free misstatement. audits included risks misstatement. procedures included examining evidence amounts disclosures statements. accounting principles estimates management overall presentation. audits provide reasonable basis for opinion.


critical audit matter from current period audit of financial statements communicated to audit committee relates to accounts disclosures material to challenging complex judgments. alter our opinion on consolidated financial statements not separate opinion on.


Loss Contingencies Company subject to claims lawsuits investigations consent orders competition intellectual property data privacy tax compliance labor employment commercial disputes content goods services personal injury consumer protection. Note 10 financial statements “Commitments adverse consequences. judgment likelihood estimated amount loss. Auditing loss contingencies auditor judgment probability loss estimated.


Addressed Matter Audit tested controls over risks accounting disclosure. included controls over probability incurrence loss development disclosures. audit procedures included previous rulings status lawsuits letters from legal counsel meeting representation letter management. evaluated Company’s disclosures.


served auditor.


audited Alphabet Inc. control financial reporting December 31, 2023 Internal Framework Sponsoring Organizations Treadway Commission. Alphabet. maintained control reporting 2023.


audited Public Company Accounting Oversight 2023 statements report January 30 unqualified opinion.


management responsible internal control financial reporting assessment Report. responsibility opinion control based audit. public accounting firm registered PCAOB independent U. S. federal securities laws rules Securities and Exchange Commission PCAOB.


conducted audit PCAOB. standards require plan assurance internal control financial reporting.


audit included understanding internal control financial reporting risk material weakness testing effectiveness procedures necessary. audit provides basis opinion.


internal control over financial reporting assurance reliability financial reporting preparation financial statements for accounting principles. includes policies procedures maintenance records transactions dispositions assets assurance transactions recorded necessary preparation financial statements receipts expenditures with authorizations management directors assurance prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


December Assets Cash,879,048 Marketable securities,868,916 Accounts receivable,650 Non securities,008 Deferred income taxes Property equipment,345 lease Goodwill,198 non-current assets,264 Liabilities Stockholders’ Equity Accounts payable,128 compensation benefits expenses liabilities,168 revenue Deferred revenue liabilities Long debt,253 Deferred revenue taxes lease liabilities long-term liabilities,013 Commitments Contingencies Stockholders’ equity Preferred stock. 100 shares no issued outstanding A B C capital. shares authorized A 180,000 B 60,000 C 12,849 883 6,002) 12,460 5,899 870 shares issued outstanding income earnings,247 equity,379 liabilities equity,264


Ended December Revenues,394 Costs expenses revenues,939,203,332 Research development,500,427 Sales marketing,912,567 General administrative costs expenses,101 Income operations,842,293,020 before taxes,734,328 Provision taxes,701,356,922 Net income#59,972,795 net income stock. 69. 59. 84 income. 56.


Ended December Net income,795 income foreign currency translation adjustment,442 investments unrealized gains,312),344 reclassification,168 income tax benefit $394 $1,056 $(698),376),713) Cash flow hedges unrealized gains reclassification(1,706) tax benefit $(122) $110 $2 income,256(5,980),201 income,777,996


A B C Stock Paid Capital Balance December 31, 2020,504 Stock compensation expense,539 Tax withholding,273) Repurchases(2,324) Sale interest income Balance December 31, 2021,774 Stock Tax withholding(9,754 Repurchases(3,404) Sale interest entities income Balance December 31, 2022,849######68,184,578 Tax withholding,164) Repurchases,064) income Balance December 31, 2023,460#76,534


Ended December Net income,795 Adjustments Depreciation property equipment,273 Stock compensation,376,362,460 Deferred income taxes loss debt equity securities,270,330 Changes assets Accounts receivable,095) Income taxes Other assets Accounts payable Accrued expenses liabilities revenue Deferred revenue Net cash,652,495 Investing Purchases property equipment,251) marketable securities,196),874),294,672 non Acquisitions purchases intangible assets(2,618)(6,969) activities(1,051) cash(20,298),063) Financing payments stock,162)(9,300)(9,837) Repurchases(50,274)(59,296) issuance debt,199,790 Repayments debt(54,068)(11,550) sale interest financing(61,362)(69,757)(72,093) exchange rate cash equivalents(5,520),169,465,945,879 end,945,879,048 cash flow income taxes refunds,892,164


incorporated California 1998-incorporated Delaware 2003. reorganization Alphabet. successor Google.


generate online advertising cloud solutions infrastructure platform services communication collaboration tools sales products apps devices.


consolidated statements entities variable voting. Intercompany transactions eliminated.


consolidated financial statements GAAP requires estimates assumptions. results differ uncertainties. evaluate estimates credit losses licenses contingent liabilities values financial instruments income taxes inventory useful lives property equipment. base estimates on assumptions values assets liabilities.


January 2023 adjusted four six equipment five six. effective fiscal year 2023. servers equipment December 31, 2022 31, 2023 depreciation expense $3. 9 billion increase net income $3. 0 billion $0. 24 basic. diluted share December 31, 2023.


Revenues recognized promised transferred customers collectibility probable. Sales taxes excluded revenues.


generate advertising revenues delivering Search properties traffic search partners. Google properties Gmail Maps Play Network properties revenues AdMob AdSense Google Ad Manager.


purchase Ads Manager Display Video Marketing Platform.


offer performance brand. recognize revenues performance engages. brand revenues displayed views.


ads Google Network properties evaluate principal. or agent. net. report advertising revenues gross basis amounts billed customers recorded revenues


paid to Google partners recorded cost revenues. principal control advertising inventory before customers. control evidenced by supported responsible discretion establishing pricing.


Google subscriptions platforms devices revenues subscriptions YouTube services TV Music NFL Sunday Ticket One Google Play apps in-app purchases Pixel family products services.


Subscription revenues recognized monthly. report Google Play sales in-app purchases transaction developers users earn service fee.


Google Cloud revenues Cloud Platform fees subscriptions infrastructure services. cybersecurity databases AI Vertex Duet AI Workspace subscriptions communication collaboration Calendar Gmail Docs Drive Duet AI enterprise services.


cloud services provided consumption or subscription contract terms longer year. Revenues recognized consumed. Revenues subscription recognized over contract term receives consumes benefits.


contracts include multiple obligations. allocate revenues standalone selling price. determine charged.


customers receive cash incentives credits variable consideration. estimate reduce revenues. significant changes estimates.


expense sales commissions year less. recognize asset commissions amortize. recorded sales marketing expenses.


revenues TAC costs. includes


paid partners search points. providers mobile carriers equipment software developers


paid Google ads properties.


. revenues


expense data centers content review support


acquisition costs payments content providers YouTube Google Play pay fees revenues flat


costs devices sell.


expense software development costs before technological feasibility reached. feasibility before release. development costs criteria capitalization not material periods.


Software development costs include internal needs cloud-based applications services. capitalize costs preliminary project stage probable function. Costs capitalized not material periods presented.


Stock compensation Alphabet units. equity classified measured market value grant date. RSU expense account forfeitures.


RSUs shares issued vesting dates income tax withholding. fewer shares issued RSUs income tax withholding capital.


SBC includes stock awards performance stock units market conditions settled cash stock Bet companies. equity classified expense recognized service period. awards liability classified remeasured fair value. equity valuation.


expense advertising. 2021 2022 2023 $7. billion $9. 2 $8. billion.


Performance fees compensation arrangements payouts returns investments. record expense estimated payouts expense before returns unobservable inputs. OI&E.


Fair value exit price sell asset transfer liability transaction market. market-based determined assumptions pricing asset liability. Assets liabilities fair value measured classified three-tier fair value hierarchy inputs


inputs prices assets liabilities markets.


Level 2 Inputs prices active markets model-based valuation techniques inputs. models project future cash flows discount value inputs interest rate curves foreign exchange rates credit ratings.


Unobservable inputs supported activities.


fair value hierarchy requires minimize unobservable. determination involves valuation methods inputs models.


assets liabilities include cash marketable securities derivative instruments non-marketable debt securities. non equity securities. cost value disclosed.


measure instruments SBC awards assets liabilities combination fair value nonrecurring.


instruments equivalents securities accounts receivable.


credit risk cash debt securities instruments foreign exchange contracts accounts receivable. manage risk creditworthiness credit limits collateral management. Foreign exchange contracts high credit. Accounts receivable unsecured revenues. credit risk credit. require collateral.


cash bonds mortgage securities deposits funds.


classify marketable debt securities three months or less cash equivalents greater than three months marketable Balance Sheets. determine classification reevaluate. securities available-for-sale. liquidity requirements sell prior maturities. classify liquid securities maturities beyond 12 months current assets marketable securities. carry securities fair value report unrealized gains losses stockholders’ equity except changes credit losses recorded in OI&E. certain fair value option recorded OI&E. determine gains losses sale record OI&E.


investments equity securities value gains losses recognized.-up 12 months non-current Consolidated Balance Sheets.


Non-marketable securities equity. account influence control investee. securities accounted measurement alternative. carrying value measured at cost less impairment


price transactions investments issuer. Adjustments market approach transaction date recorded OI&E.


Non-marketable securities non-current Balance Sheets.


3 accounting policy.


payment terms accounts receivable vary locations products. term invoicing payment significant. certain require payment before delivered. receivable services right invoice.


maintain allowance credit losses recorded classified general administrative expense Consolidated Statements Income. assess collectibility customers disputes issues. consider historical collectibility past due status creditworthiness credit evaluations. customer-specific information market conditions forecasts future economic conditions.


financial instruments include debt equity investments in companies entered commercial arrangements. judgment required substance arrangements under GAAP value fair value. if investment impaired remaining performance obligations reassessed reduced.


review debt non.


debt securities unrealized loss determine credit loss. estimated collectibility past events current conditions forecasts. credit loss recorded charge OI&E not unrealized loss. losses recognized AOCI. intent sell before recovery amortized cost write down fair value record charge&E.


non-marketable equity securities consider impairment indicators financial liquidity position capital. impaired write down fair value charge. prepare measurements fair value market income approach.


Inventory finished goods cost value. computed first method.


determine arrangement entity investment variable interests entity (VIE). consolidate VIEs primary beneficiary. direct activities affect economic performance obligation absorb majority losses


. not primary beneficiary account investment variable interests GAAP.


assess changes interest entity affect determination VIE primary beneficiary.


Property equipment land technology construction leasehold improvements furniture fixtures. buildings offices data centers improvements. servers network equipment. Construction.


Property equipment cost less depreciation. recorded estimated lives. Land not depreciated. buildings seven to 25 years. information technology assets six years. leasehold improvements lease term. Depreciation furniture commences ready use.


allocate goodwill units expected benefit business combination. evaluate periodically changes. reassign goodwill fair value allocation. test goodwill impairment annually. impairments not material periods.


determine inception. lease agreements contain non-lease components. Payments fixed. Non-lease maintenance utilities. combine single lease increases lease assets liabilities.


lease agreements variable payments expensed liabilities. Consumer Price Index maintenance utilities.


Lease assets liabilities recognized present value future lease payments commencement. incremental borrowing rate. interest collateralized basis similar terms payments economic environments. lease terms include options extend terminate lease. base non-cancelable lease term assets liabilities. include prepaid lease payments incentives.


lease assets liabilities Consolidated Balance Sheets. expenses long-term. Finance lease assets property equipment. liabilities accrued expenses long-term debt.


lease expense recognized straight-line term.


review leases property equipment intangible assets excluding goodwill impairment. evaluation lowest cash flows independent. measure recoverability carrying amounts future cash flows


generate. carrying value recoverable impairment measured exceeds value.


account income taxes asset liability method recognize taxes payable current year deferred tax assets liabilities future consequences financial statements. measure deferred tax assets liabilities tax law. evaluate likelihood future realization establish reduce increase. account tax effects global intangible low tax Income provision current period expense.


recognize financial statement effects tax position sustained examination. tax benefits measured largest benefit 50% settlement authority. interest penalties unrecognized tax benefits income tax provision.


include results acquisition date. allocate purchase price assets liabilities estimated values except revenue contracts recognized. excess purchase price values recorded goodwill. Acquisition expenses recognized expensed incurred.


translate financial statements subsidiaries. dollars rates assets liabilities annual revenues expenses. record translation gains losses AOCI stockholders’ equity. reflect exchange gains losses conversion.


November 2023 Financial Standards Board issued 2023-07 Reporting Disclosures expands interim expenses. effective annual January 2024 interim January 1 2025 early adoption. evaluating financial statement disclosures.


December 2023 FASB issued ASU 2023-09 requirements rate reconciliation. effective January 1, 2025 early adoption. evaluating effect financial statement disclosures.


amounts prior reclassified current.


table revenues Ended Google Search,450,033 YouTube ads,243 Google Network,701,780 advertising,497 Google subscriptions platforms devices,055,688 Services Google Cloud,206,280 Bets Hedging gains revenues,394


10% revenues 2021 2022 2023.


table presents revenues disaggregated geography addresses customers Ended December United States,854,286 EMEA(1),107,062 APAC(1),123,024 Americas(1),404,320 Hedging gains Total revenues,394


Regions Europe East Africa Asia-Pacific Latin America.


December 31, 2023 $74. 1 billion obligations Google Cloud. backlog future recognized revenue. estimated revenue backlog driven contract terms. expect recognize half revenue backlog next 24 months remaining thereafter. includes deferred revenue excludes contracts one year less cancellable contracts.


record deferred revenues. Google Cloud subscriptions platforms devices. revenue December 2022 $4. 5 billion $2. 4 billion 2023.


Cash equivalents securities measured Level


Level 2 fair value hierarchy quoted prices identical assets markets.


Debt securities measured Level 2 quoted market prices alternative sources models. debt securities elected fair value option changes recorded OI&E. unrealized gains losses contracts.


tables summarize cash equivalents marketable securities fair value December 31, Value Hierarchy Cost Gains Value Equivalents Securities changes income Time deposits,297 Government bonds,055,772 Corporate debt securities,578 Mortgage-backed securities,176 investments fair value change,087,308 value adjustments net income Money market funds,234 marketable equity,013 Mutual funds Government bonds Corporate debt securities,744Mortgage-backed securities investments value change net#18,893,152 Cash Total#91,087(4,856),201,879,883


gains losses securities.


long-term equity securities $803 million December 31, 2022.


.December 31, Value Hierarchy Cost Gains Value Equivalents Securities changes income Time deposits Government bonds,106,660,667 Corporate debt securities,457 Mortgage-backed securities,243,697 investments fair value change,434,296 value adjustments net income Money market funds marketable equity,282 Mutual funds Government bonds Corporate debt securities,782,691 Mortgage-backed-backed securities,683,683 investmentschange net#19,490#6,918,572 Cash Total#80,434,950,407,048,868


long-term equity securities $1. 4 billion December 2023.


non equity securities companies without market values. carrying value adjusted to value transactions. remeasured based transactions Level 2 or 3 fair value valuation methods option pricing market common stock method price inputs volatility risk free rate rights obligations. inputs vary investment type. fair value remeasured due to impairment Level 3.


December 2023 non-marketable securities $28. 8 billion $13. 7 billion remeasured Level 2 value.


table debt securities maturity dates December 31, 2023 one year,231 five,477 10,351 after 10 years,216 Total,275


tables present values losses AOCI aggregated by investment category continuous loss December 31, 2022 than 12 Months Greater Loss Government bonds(1,004),438,477 Corporate debt securities(1,492) Mortgage-backed securities,242) Total(2,029),750(4,779) of December 31, 2023 than 12 Months or Greater Loss Loss Government bonds,897,353 Corporate debt securities Mortgage-backed asset-backed securities Total,228(53),180,408(1,910)


determine gains losses sale extinguishment debt securities identification method. table summarizes gains losses securities OI&E Ended December Unrealized gain debt securities gain loss(1,833) credit losses gain debt securities income(2,064)(1,215)


value equity securities cost net gain. Gains losses&E Consolidated Statements Income. Note 7.


carrying values marketable non equity securities summarized December 31, December 31, 2023-Marketable initial cost#5,764,157,418 net gain,372,764,150,705 Carrying value,156,685,766,739


-marketable equity $16. billion gains $4. billion losses December 2022 $18. billion. losses


Gains losses marketable non equity securities summarized Ended December net gain equity securities,196(442 Unrealized marketable,335,242) non-marketable equity(1,088) Total gain equity securities,380(3,455)


non equity securities $10. $3. $1. billion upward adjustments December 2021 2022 2023 $122. $2. billion downward adjustments December.


table net gain equity securities sold reflects sale proceeds carrying value purchase.


Cumulative net gains (losses equity securities sold summarized table total after initial purchase date. reflect economic net gains. calculated difference between sale price initial purchase price. Securities Sold Ended December 31, Total sale price#1,784#1,981 initial cost Cumulative net gains (losses#847


December 2022 2023 equity securities $1. 5 billion $1. 7 billion. gains losses Statements Income. Note 7.


derivative instruments. primary foreign exchange risk. contracts risk cash flows earnings investment rate fluctuations. enter instruments offset enhance investment returns.


recognize derivative instruments Balance Sheets classify Level 2. present collar contracts net derivatives gross values. accounting intended use hedge designation.


foreign currency option contracts cash flow hedges transactions. dollar maturities 24 months.


Cash flow hedge amounts deferred AOCI reclassified revenue recognized earnings. exclude forward points time value amortize revenues. difference value amortized recorded AOCI.


2023 gain foreign currency hedges $47 million AOCI revenues 12 months.


designate foreign currency forward contracts value hedges risks securities. dollar. hedge amounts recognized OI&E gains losses. exclude forward points recognize changes.


foreign currency contracts investment hedges risks subsidiaries. amounts recognized AOCI translation adjustment. exclude forward points recognize changes OI&E.


enter foreign currency contracts not hedging hedge intercompany transactions assets liabilities subsidiary. Gains losses recorded OI&E currency gains assets liabilities.


use derivatives interest rates commodity prices credit returns. enter hedge market price risk equity securities. Gains losses reflected OI&E. Note 7.


derivative instruments December 31, hedging Foreign exchange contracts Cash flow hedges,972 Fair value hedges Net investment,472 Foreign exchange contracts,979,722 Other contracts,818


values derivative instruments December 31, 2022 December 31, 2023 Derivatives hedging instruments Foreign exchange contracts Derivatives exchange contracts Other contracts derivatives not#676#810#453#445


Derivative Consolidated Balance Sheets.


Derivative liabilities Consolidated Balance Sheets.


gains derivatives cash net investment summarized Ended December 31, Derivatives cash flow Foreign exchange#806#1,699#90 excluded####(188) Derivatives net investment Foreign exchange####608 Total#1,608#2,119#(113)


table presents gains derivatives Consolidated Statements Income Ended December Total amounts Statements#257,637,020#282,836,394 Effect cash flow hedges Foreign exchange reclassified AOCI to income Amount excluded effectiveness fair value hedges Foreign exchange Hedged items Derivatives hedging instruments Amount excluded net investment hedges Foreign exchange excluded Effect non designated hedges Foreign exchange contracts Other contractsgains (losses)(63)#237#262


master netting collateral security reduce credit risk. Cash collateral derivative included assets liability. Cash non-cash collateral pledged.


gross amounts derivative instruments netting arrangements cash non-cash collateral received pledged December 31, 2022 Amounts Not Offset Balance Legal Rights Offset Amounts Recognized Offset Amounts Non-Cash Collateral Received Pledged Amounts Derivatives assets(84#676 Derivatives liabilities#894#810#319 December 31, 2023 Amounts Not Offset Legal Rights Offset Offset Amounts Non-Cash Collateral Received Pledged Amounts Derivatives assets#453 Derivatives liabilities#445


balances December 2022 2023 derivatives netting agreements.


entered data centers land offices 2024 2063.


operating lease expense Ended December lease cost,900,362 Variable lease cost,182 Total lease cost,738


information operating leases Ended December 31, Cash payments leases,489,722,173 New assets liabilities,951,383#2,877


2023 leases 8. years discount 3. 1%. payments 2024,179 2025,929 2026,450 2027 2028 lease payments,682 interest,431) lease liability balance,251


2023 entered leases payments $657 million. 3 billion Balance Sheets. commence 2024 2026 non-cancelable 25 years.


consolidate VIEs variable interest primary beneficiary. financial position statements.


consolidated VIEs creditors recourse. December 2022 2023 assets obligations $4. 1 billion $4. 9 billion liabilities $2. 6 billion $2. 5 billion. fund.


noncontrolling interests subsidiaries $3. 8 billion $3. 4 billion December 2022 2023 $1. 1 billion redeemable. capital. loss included OI&E. Note 7.


investments VIEs not primary beneficiary. early stage renewable energy entities power.


determined governance structures activities economic performance. not primary beneficiary results operations financial included financial statements. account non-marketable equity securities.


exposure unconsolidated current future commitments. $2. 8 billion $2. 7 billion December 31, 2022 $5. $4. billion December 31, 2023. difference future.


debt financing $10. billion commercial paper. proceeds. no paper 2022 2023.


short-term debt long-term.


debt millions Interest December Debt 2014-2020 Notes - 2060. 45%. 38%. 57%. 38% Future finance lease payments debt Unamortized discount issuance costs long future finance lease payments long-term debt,253


finance lease interest.


long-term debt expenses liabilities. Note 7.


notes fixed-rate unsecured obligations rank equally. redeem prices. interest rates proceeds semi-annually.


value notes $9. billion $10. 3 billion December 2022 2023. determined prices Level 2 fair value.


December 31, 2023 payments long-term debt five years 2024 2025,163 2026,165 2027,143 2028


December 31, 2023 $10. billion revolving credit $4. billion 2024 $6. billion 2028. interest rates market sustainability goals. 2022 2023.


losses $754 $771 million 2022 2023.


Property equipment December 31, Land buildings,083 Information technology,594 Construction,229 Leasehold improvements,425 Furniture fixtures gross accumulated depreciation(59,668,345


infrastructure servers data center land buildings.


Accrued expenses liabilities December 31, European Commission,106 purchases property equipment customer liabilities,140 lease liabilities,791 Income taxes,748 expenses liabilities,285 liabilities,866,168


EC decision appeal fines expenses liabilities Consolidated Balance Sheets guarantees. foreign exchange interest. Note 10.


AOCI Currency Translation Adjustments Investments Cash Flow Hedges Balance December 31, 2020 income (loss before reclassifications,442,312)(2,086) excluded reclassified (loss,442,376),256) Balance December 31, 2021(2,306)(1,623) reclassifications(1,836)(4,720),093) excluded Amounts reclassified(1,706) income (loss,713)(5,980) Balance December 31, 2022,142),477)(7,603) before reclassifications,344,163 excluded reclassified,168 income (loss,201 Balance December 31, 2023#(965)(4,402)


effects net income reclassified AOCI Reclassified Consolidated Statements Ended December 31, AOCI Components gains-sale investments income taxes income tax(1,007),168 gains cash flow hedges Foreign exchange contracts Interest rate contracts income taxes income tax reclassified net income tax(954)


Components&E Ended December 31, Interest income,174,865 Interest Foreign currency exchange gain(1,238) debt securities(1,215) equity securities,380(3,455) Performance fees Income equity investments income,020(3,514)


Interest $163 $128 $181 million 2021 2022 2023.


company-wide effort re-engineer cost base. reduction workforce. employee severance charges December 31, 2023 $2. billion. employees headcount December.


global office space. exit charges December 2023 $1. 8 billion table. incurred $269 million accelerated rent depreciation not included.


Severance office space exit charges Ended 2023 Space Cost revenues#479 Research development Sales marketing administrative charges#2,088#1,845#3,933


includes settled cash termination benefits SBC.


segment majority charges Alphabet activities.


December 31, 2023 liabilities severance charges accruals Balance December 31, 2022 Cash payments Balance December


non $432.


Consolidated Balance Sheets.


goodwill 2022 2023 Services Cloud Bets Balance December 31, 2021,956 Acquisitions,171 Foreign currency adjustments Balance December 31, 2022,847,205,960 Acquisitions adjustments Balance December 31, 2023,118,199#881,198


licensing agreements $10. 6 billion 2023 majority seven years 2030.


indemnify advertisers Google Network distribution customers Cloud lessors service providers. agreed defend hold parties losses breach representations covenants intellectual property infringement claims. agreements limit time indemnification claim amount. indemnification agreements officers directors bylaws agents.


not possible estimate maximum potential amount indemnification agreements due unique facts circumstances each. payments operations cash flows financial position. valid indemnification claims future payments could operations cash flows.


December 31, 2023 indemnification claims.


record liability probable loss incurred amount estimated. determine loss possible estimated disclose loss. evaluate developments legal matters affect liability accrued losses make adjustments appropriate.


matters seek speculative monetary amounts changes business practices structural remedies. judgment required likelihood loss estimated amount estimate possible loss. outcomes legal matters unpredictable uncertainties adverse effect.


expense fees incurred.


30 EC Directorate antitrust complaints.


June 27, 2017 EC Google competition law. €2. 4 billion$2. 7 billion fine. September 11 appealed implemented changes. $2. 7 billion fine second quarter. November 10, 2021 Court appeal filed European Court Justice January 20, 2022.


July 18 2018 EC Android law. €4. 3 billion$5. 1 billion fine termination. October appealed implemented Android. September 14 2022 reduced fine. €4. 1 billion. appeal Court Justice. $5. 1 billion reduced $217 million 2022.


March 20 2019 EC AdSense competition law. fine €1. 5 billion$1. 7 billion actions implemented. June 4 2019 appealed. recognized $1. 7 billion first quarter 2019.


subject inquiries U. S. Europe. August 2019 demands. Justice antitrust investigations. Attorneys filed lawsuit. Columbia October 20, 2020 Google violated. antitrust laws. trial ended November 16, 2023 expect decision 2024. June 2022 Australian Competition Commission United Kingdom Competition Markets Authority Search. December 16, 2020 Attorneys antitrust complaint. Eastern Texas Google violated. antitrust trade laws advertising trial March 2025. January 24, 2023 DOJ antitrust complaint. Eastern Virginia advertising. antitrust laws April 17, 2023 Attorneys General joined. EC CMA ACCC investigation Google advertising June 22, 2021 May 25, 2022 June 29,. June 14, 2023 EC Statement Objections antitrust laws. responded December 1, 2023.July 7, 2021 state Attorneys antitrust complaint. Northern District California Android Play. September 2023 settlement 50 Attorneys three territories. Court vacated trial final approval 2024. May 2022 EC CMA Google. Korean regulators billing review May 2022 app store billing regulations.


believe arguments claims defend. cooperate federal state regulators U. EC.


subject privacy laws party investigations lawsuits jurisdictions. investigations U. S. EU location information advertising practices fines judgments product changes.


patent copyright trade secret trademark infringement lawsuits filed against us claiming products services technologies infringe property rights. Adverse results include damages royalty licensing agreements orders preventing. change business practices develop non products loss revenues business. International Trade Commission important disputes loss prohibition importing infringing products. important market prohibition importation products. workarounds features.


agreements with customers require indemnify against intellectual property infringement claims increase costs damages adverse ruling. customers discontinue products services technologies injunctions loss revenues business.


subject claims lawsuits investigations consent orders competition intellectual property data security tax compliance labor employment commercial disputes content personal injury consumer protection. 2023 California jury Epic Games. Google antitrust. remedies 2024. plan appeal. data incidents.


claims consent orders lawsuits investigations proceedings fines penalties injunctive relief changes business litigation consequences business reputation financial results.


ongoing legal matters Russia. civil judgments compounding penalties imposed termination accounts. material adverse effect.


under audit by domestic foreign tax authorities non tax matters. disputes on tax treatment rate products services employee benefits. accrue taxes from when loss probable estimable. If loss possible disclose loss. complexity uncertainty judicial process final outcome may different expectations.


Note 14 tax.


A B C Capital


Board Directors authorized three classes stock A B C capital stock. rights identical except voting. A one vote. B 10 votes. C no voting rights except law. Shares Class B stock sale transfer Class A.


2021 2022 2023 $50. $59. $62. Alphabet C shares.


2023 Alphabet repurchase $70. billion A C. December 2023 $36. billion repurchases.


table presents A C shares repurchased retired Ended 2022 2023 A repurchases#6,719,316 C repurchases,577,868,296,184


Shares repurchased unsettled.


A C shares repurchased company stockholders economic cost market conditions prices volumes. Repurchases business market conditions investment opportunities market transactions Rule 10b5-1 plans. repurchase expiration date.


compute net income Class A B C stock two-class method. income weighted-average shares. Diluted income effect dilutive securities. securities RSUs contingently issuable shares. dilutive effect reflected diluted earnings treasury stock method. diluted income A assumes conversion B stock B.


rights liquidation dividend rights Class A B C stock identical except voting. safeguards certificate incorporation Delaware law preclude Board Directors declaring unequal dividends stock. Delaware law amendments rights stock must by affected. before amendment stockholder vote unanimous consent Board Directors. undistributed earnings allocated based on contractual participation rights Class A C stock. liquidation dividend rights identical earnings allocated proportionate.


2021 2022 2023 net income share same Class A B C stock holders equal dividends Certificate Incorporation Alphabet.


table basic diluted net income per share Class A B C stock millions Ended December A B C net income per share Allocation undistributed earnings,200,174,659 shares income. Diluted net income undistributed earnings,200,659 Reallocation conversion Class B A shares undistributed,097,240 shares Weighted-average effect dilutive Conversion Class B A shares Restricted stock units contingently issuable shares shares computation Diluted net income per share.Ended December 31, A B C net income share Allocation undistributed earnings#27,518,072,382 shares share computation,182 income share. income undistributed earnings,072,382 conversion Class B A shares,360,042,612 shares computation,182 Weighted-average effect dilutive Conversion Class B A shares Restricted stock units contingently issuable shares shares share computation,278 Diluted net income per share.


Alphabet Inc. Ended December 31, A B C net income share undistributed earnings,601,070 shares share net income share. income undistributed earnings,601 earnings conversion Class B A shares,438,087,357 shares computation Weighted-average effect dilutive Conversion Class B Class A shares Restricted stock units contingently issuable shares shares share computation Diluted net income per share.


stock plans Alphabet 2021 Stock Plan Other Bets. RSUs awards granted. RSU award shares Class C stock. vest four years contingent employment.


723 million C Alphabet 2021 Stock Plan.


2021 2022 2023 SBC expense $15. $19. $22. Alphabet $15. $18. $21. billion.


SBC $432 million workforce reduction. Note 8.


2021 2022 2023 recognized tax benefits SBC expense Consolidated Statements $3. 5 billion.


2021 2022 2023 tax benefit $5. billion $4. 7 billion. 6 billion. stock R&D tax.


table unvested Alphabet RSUs 2023 Stock Units December 2022. 98 Granted. 59 Vested. 36 Forfeited/canceled. 56 Unvested December 2023. 93


grant RSUs 2022 $97. $127. 22,. 2023 $28. 8 billion $23. 9 billion $26. 6 billion.


December 2023 $33. billion unrecognized compensation RSUs. 5 years.


operations taxes Ended December Domestic operations,016,307,600 Foreign operations,718,117 Total,734,328#85,717


income taxes Ended December 31, Federal state,126,120 Foreign,434 Total,554,651 Deferred Federal(8,052) Foreign Total(8,198) income taxes,701,356,922


reconciliation federal statutory income tax effective rate Ended December. federal statutory tax rate. Foreign income taxed different rates. Foreign-derived intangible income deduction. Stock-based compensation expense. Federal research credit. Deferred tax valuation allowance. State local income taxes. tax law change. Effective tax rate.


2022 increase. tax deduction R&D expenses 2017 Tax Cuts Jobs Act.


2023 IRS issued rule change apply regulations 2022. tax credits capitalization amortization R&D expenses. cumulative-time adjustment recorded 2023.


Deferred income taxes differences liabilities. deferred tax assets liabilities December Deferred tax assets Accrued employee benefits Accruals reserves deductible,481 Tax credits operating losses,965 leases Capitalized research,757 deferred tax assets,144 Valuation allowance,999,145 Deferred tax liabilities Property equipment investment gains Operating leases Total deferred tax liabilities,551,461),684


Tax Cuts Jobs Act 2022 research capitalized amortized higher taxes deferred tax.


December 2023 federal $7. billion $18. 6 billion. 8 billion.


loss carryforwards expire 2024 foreign 2025 state net 2029. majority net loss carryforwards recorded valuation allowance against. subject annual limitations tax laws jurisdictions.


December 2023 Federal California credit carryforwards $600 million $6. 3 billion. Federal 2037 California carried indefinitely. majority federal state.


December 31, 2023 investment tax credit carryforwards $1. 0 billion expire 2029. flow-through tax.


December 31, 2023 maintained valuation allowance California tax assets federal state tax credits deferred assets companies foreign losses. reassess valuation allowance quarterly release tax benefit recorded.


table summarizes tax benefits Ended December,837,158,055 Increases tax positions Decreases Decreases settlement tax authorities(21) Increases current year tax positions,384,221 Ending benefits,158,055,438


subject taxes. foreign jurisdictions. judgment tax positions provision. unrecognized tax benefits $5. 2 $7. $9. 4 billion December 2021 2022 2023. tax rate.


2023 accrued $346 $622 million interest penalties.


file income tax returns U. foreign. major. Ireland. continuous examination IRS. examining 2016 2021 tax returns. received assessments foreign jurisdictions permanent establishment. defend claims.


tax years 2016 2022 Irish. audits jurisdictions not financial statements.


assess adverse outcomes provision income taxes. monitor discussions tax authorities effect expiration statute limitations jurisdictions.


believe adequate provision adjustments tax examinations. outcome tax audits. issues management adjust provision income taxes. timing resolution possible unrecognized tax benefits. federal state non. tax positions decrease $700 million next 12 months. Positions include. non. matters.


report segment results Google Services Cloud Other Bets Services ads Android Chrome devices Maps Play Search YouTube. revenues advertising fees YouTube NFL Sunday Ticket sale apps devices. Cloud infrastructure collaboration tools enterprise customers. revenues consumption fees subscriptions. Bets segments. Revenues healthcare internet services.


Revenues costs engineering activities operating expenses attributable segments. integrated Alphabet infrastructure office facilities managed. depreciation impairment allocated segments service based on usage headcount revenue.


DeepMind collaboration Google Services Cloud Other Bets first quarter 2023 Alphabet-level activities. updated cost allocation methodologies transparency. Prior periods current.


announced April 20 2023 Google Research DeepMind artificial. Google DeepMind Alphabet activities second quarter 2023. Google Services.


costs not allocated Alphabet-level activities. include AI R&D finance human resource legal fines settlements. reductions workforce office space 2023 not allocated. hedging gains not allocated.


segments evaluated.


table segments December Revenues Google Services Google Cloud,280 Other Bets Hedging gains revenues,394 Operating income Google Services,132,858 Cloud,282) Other Bets,051) Alphabet activities,186) income operations#78,714,842,293


Note 2 revenues.


table presents long-lived assets geographic area property equipment lease December United States,565 International,383,049,436


management financial evaluated disclosure controls procedures Rule 13a-15 Exchange Act Annual Report Form 10-K.


evaluation chief executive financial concluded December 31, 2023 disclosure controls procedures designed reasonable assurance information Exchange Act recorded processed summarized reported SEC’s rules information accumulated communicated management timely decisions disclosure.


no changes in control over financial reporting quarter ended December 31, 2023.


management internal control financial reporting Rule 13a-15(f) Exchange Act. Internal Control—Integrated Framework Committee Sponsoring Organizations Treadway Commission. concluded effective December 31, 2023. reviewed results Audit Compliance Committee. audited by Ernst & Young LLP Item 8 Annual Report Form 10-K.


designing evaluating disclosure controls procedures management recognizes reasonable assurance achieving desired objectives. design reflect resource constraints judgment evaluating benefits relative costs.


fiscal quarter December 2023 Section 16 directors 10b5-1 trading Exchange Hennessy. trading plan November 1 2023 first trade February 12 2024). March 12 2025 6,664 Class C Capital Stock 11,336 Class A Common Stock. Mather terminated trading plan October 30 2023. 12,580 shares C Capital Stock June 2, 2024. Porat President trading plan November 30 2023 first trade March 8 2024). March 8 2025 82,900 Class C Capital Stock 2021 Performance Stock Units.


no-Rule 10b5-1 408 Exchange Act adopted modified terminated quarter 2023 directors Section 16 officers. 10b5-1 Policy Against Insider Trading transactions disclosed Section 16 filings SEC.


Google Alphabet filed Russian Security encryption import items. Section 13 Exchange Act Part II Item 5 Quarterly Report Form 10-Q September 30 2023.


Officers Corporate Proxy Statement 2024 Annual Meeting filed SEC 120 days fiscal year December 2023 incorporated. delinquent filers 405 Regulation S-K Section 16(a) 2024 Proxy Statement incorporated.


information required item Officers Corporate Insider 2024 Proxy Statement incorporated except information disclosed Item 402(v) Regulation S-K pay versus performance.


OWNERS MANAGEMENT STOCKHOLDER


information Stock Ownership Owners Compensation Plan 2024 Proxy Statement incorporated reference.


information required item captions Relationships Executive Officers Corporate 2024 Proxy Statement incorporated reference.


information Public Accounting 2024 Proxy Statement incorporated reference.


filed documents Annual Report Form 10-K. Financial Statements Accounting Firm Balance Sheets Income Stockholders’ Equity Cash Flows


table details credit losses sales credits years December 2021 2022 2023 Beginning End Year December 31, 2021,344(2,047),389 2022,389,125(2,301) December 2023,115,737


schedules omitted not required applicable.


Exhibit. Plan Merger October 2 2015, Google. Registrant Maple Technologies. Report Form 8-K.-37580) 2 2015. Restated Certificate Incorporation. 3 2022. Bylaws Registrant October 19, 2022. 25 2022. Class A Common Stock certificate. 2 2015. Class C Capital Stock certificate. Inc. Deferred Compensation Plan. Restriction Agreement Registrant Larry Page affiliates. Restriction Agreement Registrant Sergey Brin affiliates. Agreement December 31, 2021 Registrant Sergey Brin affiliates Report Form 10-K.-37580) 2 2022


Alphabet. Exhibit. Restriction Agreement October 2 2015, Registrant Eric. Schmidt affiliates Report Form 8-K. 001-37580) 2 2015. C Undertaking Registrant. February 12 2016, Registrant Bank New York Mellon Trust Company. Trustee Statement Form S-3. Registration Rights Agreement December 14 2015. Supplemental Indenture April 27, 2016, Registrant Bank New York Mellon Trust Company. Report Form 8-K.-37580). 375% Notes due 2024. 998% Note 2026 8-K.-37580) 9 2016. Global Note. 450% 2025. 5 2020. 800% 2027.100% notes 2030 Report Form 8-K. 001-37580) 5 2020. Global Note. 900% notes due 2040. 5 2020. 050% notes due 2050. 2020. 250% notes due 2060. 5 2020. Registrant’s Securities Report Form 10-K.-37580) 3 2023. Indemnification Agreement Registrant affiliates directors officers.-37580) 2 2015. Offer Letter. March 20 2015, Ruth Porat Google Inc. Registrant October 2 2015. 2015. Plan Agreement October 2 Google. Registrant. Arrangements Agreement Google. Inc. Deferred Compensation Plan.2 2015. 2012 Stock Plan Report Form 8-K. 5 2020. Stock Plan Stock Unit Report Form 10-K. 4 2020. Stock Plan Stock Report Form 10-Q. 3 2016


Alphabet. Exhibit. Amended 2021 Stock Plan Report Form 8-K. 001-37580) 3 2022. 2021 Stock Plan Restricted Stock Unit Agreement Report Form 10-Q. 001-37580) 28, 2021. Stock Plan. 26, 2023. Stock 2022 Stock Unit Agreement Report 10-K. 001-37580) 3 2023. Stock Agreement. 4 2020. Amended 2021 Stock Plan 2023 Non-CEO Stock Unit Agreement Report.-37580) 26, 2023. Inc. Company Bonus Plan Report Form 10-K. 001-37350 2 2023. Independent Public Accounting. Attorney Annual Report Form 10-K.Chief Executive Exchange Act Rules 13a-14 15d-14 Section 302 Sarbanes-Oxley Act. Chief Financial Officer Exchange Act Rules 302 Act. Chief Executive Financial Officer 18 U. S. C. Section 1350 Section 906 Sarbanes-Oxley Act. XBRL Instance Document Interactive Data File XBRL tags Inline XBRL. XBRL Taxonomy Extension Schema. Extension. Extension. Extension


Alphabet. Exhibit. XBRL Taxonomy Extension Interactive Data File XBRL Exhibit 101


management plan contract.


Filed.


Section 13 Securities Exchange Act 1934 Registrant Annual Report Form 10-K undersigned.


INC. SUNDAR PICHAI Officer Registrant


KNOW PERSONS PRESENTS each signature below Sundar Pichai Ruth M. Porat attorney-in-fact power substitution sign amendments Annual Report Form 10-K file exhibits Securities Exchange Commission ratifying confirming attorneys-in do.


Securities Exchange Act 1934 Annual Report Form 10-K signed Registrant dates.


Alphabet. SUNDAR PICHAI Executive Officer 30 2024 RUTH M. PORAT Chief Investment Officer Financial Officer. AMIE THUENER O'TOOLE President Corporate Controller Principal Accounting Officer FRANCES H. ARNOLD. SERGEY BRIN-Founder Director R. MARTIN CHAVEZ. JOHN DOERR. ROGER W. FERGUSON. JOHN L. HENNESSY. PAGE Director. RAM SHRIRAM. ROBIN L. WASHINGTON.


Home Depot. largest home improvement retailer sales 2023. building materials home improvement lawn garden décor facilities maintenance repair operations. installation tool equipment rental. 2023 operated 2,335 stores U. S. Canada Mexico. stores average 104,000 feet enclosed space 24,000 feet outside garden. maintain distribution fulfillment centers e-commerce websites. Mexico. consolidated subsidiaries.


Home Depot. Delaware 1978. 2455 Paces Ferry Atlanta. (770) 433-8211.


retail landscape changed complex macroeconomic environment customer expectations evolving. fiscal 2023 experienced year moderation after unprecedented growth navigated consumer consumption services rising interest rate. cost due to investments interconnected shopping experience digital physical worlds. leverage investments invest goals provide best customer experience home improvement develop differentiated capabilities extend position low-cost provider efficient investor home improvement.


believe goals grow deliver value shareholders. steadfast commitment corporate responsibility needs customers associates partners communities creates value.


deliver objective create shareholder value disciplined capital allocation. principles reinvest business growth faster market. pay quarterly dividend. return excess cash shareholders repurchases.


2023 invested $3. 2 billion capital goals interconnected customer experience. productivity product transportation costs fixed cost $500 million realized 2024. reinvesting sales costs customer experience competitiveness shareholder value.


2023 returned $16 billion cash dividends repurchases. capital allocation Part II. Financial.


serve groups DIY professional developed approaches needs DIY Customers


customers homeowners purchase products complete projects. associates assist stores online resources product project knowledge. offer clinics workshops knowledge emotional connection. preferences behaviors changing investing serve.


customers renovators contractors handymen contractors plumbers painters. residential multifamily hospitality commercial facilities education healthcare government office.


initiatives growth Pros complex. customized online experience dedicated sales force Pro products brands delivery network Pro Xtra loyalty program enhanced credit. investing expanded supply chain trade credit showroom space enhanced order management.


MRO HD Supply distributor MRO products services multifamily hospitality healthcare government. distribution center model sales e-commerce catalogs.


October 2023 leadership aligning sales global store organization serve Pros leveraging ecosystem capabilities. recognize value Pros strive make jobs grow businesses expanded capabilities Path Pro network skilled labor shortage. investments deepening relationships increased engagement sales.


DIY DIFM. homeowners Pros. offer services flooring water heaters bath garage doors cabinets makeovers countertops sheds furnaces air windows. purchase stores online in-home consultations. focus Pros higher product sales.


Home Depot store stocks 30,000 to 40,000 items national proprietary products. online offerings extended aisle offer broader assortment websites mobile applications homedepot. hdsupply. MRO custom window coverings. textiles décor products.


merchandising competitive advantage product innovation value product authority home improvement. 2023 merchandising resets refine assortments productivity products improve visual merchandising. values stores online. expectations innovation localization personalization tools leverage data collaboration supplier partners. enhanced merchandising interconnected shopping experience provide best value optimize product assortments. merchandising team leverages technology works inventory supply chain supplier partners manage assortments drive innovation cost adjust inventory.


merchandising offer services installation DIY DIFM. tool equipment rentals U. S. Canada value convenience Pros consumers. improve experience grow more locations rental tools better technology.


global sourcing program products from manufacturers U. S. 2023. offices Mexico Canada China India Vietnam Europe. social environmental responsibility global responsible sourcing program. supplier contracts products comply international federal state local laws. require responsible standards supply chain transparency laws child forced labor health safety environmental compensation hours work. agreement includes factory audit visits non-Canada non-U. S. suppliers. 2023 Responsible Sourcing Report. information. quality assurance engineering resources safety quality performance standards private branded products.


business recognized North America. Home Depot® trademark marketing products e-commerce stores business. registered trademarks service marks copyrights internet domain names domestically internationally brands Hampton Home Decorators Glacier. duration trademark registrations varies. valid renewed indefinitely registrations maintained.


maintain patent portfolios business operations retail services products protect innovations. Patents term twenty years from filed. portfolio terms vary. no essential. assess merchandising departments product lines expand products Home proprietary brands.


industry competitive fragmented evolving. competition retailers suppliers providers distributors manufacturers. competitors range brick-mortar multichannel online home improvement retailers


hardware stores electrical plumbing lumber yards. design showrooms discount paint retailers warehouse clubs MRO distributors home décor home improvement equipment rental. internet price transparency.


in-store online compete customer experience price quality product availability delivery. store location presentation shopping experience. Pros sales support competitive credit pricing project planning tools product quantities. faster times low-price free shipping convenient pickup. delivery pickup costs supply chain investments.


business seasonal influences. highest second fiscal quarter spring season.


enhance frictionless shopping experience stores online job site homes investments website mobile apps experience.


digital properties critical for interconnected customers research check inventory online before store online. customers access ratings reviews compare prices view assortment purchase. investments in interconnected experience physical retail presence digital capabilities.


majority traffic mobile devices. expect simplicity relevancy. investments presentation navigation. enhanced more information landing page related products fulfillment options. search site functionality category presentation product content speed checkout fulfillment yielded traffic conversion sales growth.


interconnected shopping experience specific encompasses journey inspiration purchase fulfillment post-purchase care support. Customers expect personalized messaging connecting marketing online in-store experiences engagement. product know-how invest infrastructure capabilities relevant marketing messages.


stores hub business shopping navigation convenience checkout. fiscal 2023 investments expectations. investments wayfinding signage refresh packages self-service lockers online order storage curbside service electronic shelf label re-design front-end reconfigured service desks improved layouts self-checkout. self-help tools mobile app navigation. maps location. invested compensation front-line associates lower attrition engagement fewer safety incidents.


driving higher customer satisfaction experience. identified areas population growth market voids 2023 plan open 80 new stores five. stores relieve high-volume stores add less experience revenue growth.


Investing in Associate Productivity. improve store operations complexity inefficient processes time serving. improvements optimizing product flow availability time locating simpler order management system expanding mobile learning tools using labor model tools activity customer needs. associates used web handheld devices. current digital “hdPhone” devices enhanced functionality query inventory access applications assist locating. hdPhones. access Sidekick product low stock prioritize highest value tasks. 2023 rolled Computer Vision. stores visibility product strategically-directed tasking-shelf availability.


Investing Safety. committed safe shopping working environment customers associates. culture safety Taking Care People leaders. use data risk invest tools equipment technology reduce risks packaging processes behaviors. associate training awareness target roles safety mental wellness.


empower EH&S associates evaluate develop enforce policies processes programs stores facilities offices. policies operations safety line-of-sight leaders. store inspection checklists audits maintenance merchandising safety standards.


focus building competitive advantages supply chain expectations. shopping experience invest supply chain network fastest efficient reliable delivery home improvement. product availability speed reliability delivery managing costs. supply chain investments operate meet needs challenging environment.


forecast replenish store products inventory management utilize distribution centers. supply chain includes distribution center platforms U. S. Canada Mexico. rapid deployment stocking bulk flatbed direct fulfillment. invested automate mechanize rapid deployment center network efficiency product.


supply chain network expanded fulfillment facilities speed reliability delivery. offer same day next day delivery products stores fulfillment centers. omni-channel fulfillment centers market delivery operations freight focus on appliances. met goals control appliance delivery manage volume 2022 2023


last mile delivery capacity. opened flatbed distribution centers lumber building materials. network competitive advantage industry capabilities home improvement. supply chain network.


leverage stores pickup return delivery locations. premium real estate footprint competitive advantage. four retail programs BOSS BOPIS BODFS BORIS. curbside pickup self-service lockers. car van delivery U. stores. fiscal 2023 50% U. online orders fulfilled through store. focus efficiency experience delivery. intent portfolio efficient timely reliable delivery optimizing fulfillment delivery needs inventory locations transportation options.


view corporate responsibility business support associates customers partners communities business long-term value shareholders. ESG operations culture. organize efforts three pillars Focus People Operate Sustainably Strengthen Communities. Highlights. information see annual ESG Report. homedepot./responsibility.


culture associates provide competitive advantages key market conditions. associates essential experience service customers demand. focus compelling associate experience. investing competitive wages benefits culture tools training development opportunities Home Depot. foundation customers first care associates.


Values. Home Depot ethics integrity values culture-centric business. drives human capital management. servant leadership inverted pyramid customers associates top senior management base. culture core values foundation business guiding principles decisions.


values guide attract retain skilled associates. empower associates superior customer experience embody values culture development rewards programs. Leaders participate programs


culture leadership collaboration inclusiveness associate engagement unconscious bias. values capital.