Company: GOOGL
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001652044-25-000062
Chunk: 77

Company: Alphabet Inc.
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 see Note 3 and Note 7 of the Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q.

Provision for Income Taxes

The following table presents provision for income taxes (in millions, except effective tax rate):

Three Months EndedSix Months EndedJune 30,June 30,2024202520242025Income before provision for income taxes$27,551 $33,933 $55,866 $75,722 Provision for income taxes$3,932 $5,737 $8,585 $12,986 Effective tax rate14.3 %16.9 %15.4 %17.1 %

The effective tax rate increased from the three months ended June 30, 2024 to the three months ended June 30, 2025. This increase was primarily due to a decrease in SBC-related tax benefits, and a non-deductible legal settlement in the U.S., partially offset by changes in prior period tax positions.

The effective tax rate increased from the six months ended June 30, 2024 to the six months ended June 30, 2025. This increase was primarily due to a decrease in SBC-related tax benefits, lower effective tax rate impacts in the U.S. federal Foreign Derived Intangible Income tax deduction, and a non-deductible legal settlement in the U.S., partially offset by changes in prior period tax positions.

 On July 4, 2025, the OBBBA was signed into law. This legislation includes changes to U.S. federal tax law, which may be subject to further clarification and the issuance of interpretive guidance. We are assessing the legislation and its effect on our consolidated financial statements, which we expect to begin reflecting in the three month period ended September 30, 2025.

The Organization for Economic Cooperation and Development is coordinating negotiations among more than 140 countries with the goal of achieving consensus around substantial changes to international tax policies, 

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including the implementation of a minimum global effective tax rate of 15%. Some countries have already implemented the legislation effective January 1, 2024, and we expect others to follow, however this did not have a material effect on our income tax provision for the period ending June 30, 2025.

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

As of June 30, 2025, we had $95.1 billion in cash