Company: GOOGL
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001652044-25-000043
Chunk: 126

Company: Alphabet Inc.
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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 of debt.

Net cash used in financing activities increased from the three months ended March 31, 2024 to the three months ended March 31, 2025 due to dividend payments, partially offset by an increase in proceeds from issuance of debt, net of repayments.

Liquidity and Material Cash Requirements

We expect existing cash, cash equivalents, short-term marketable securities, and cash flows from operations and financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing activities for at least the next 12 months, and thereafter for the foreseeable future.

Capital Expenditures and Leases

We make investments in land, buildings, and servers and network equipment through purchases of property and equipment and lease arrangements to provide capacity for the growth of our services and products. 

Capital Expenditures

Our capital investments in property and equipment consist primarily of the following major categories:

•technical infrastructure, which consists of our investments in servers and network equipment for computing, storage, and networking requirements for ongoing business activities, including AI, and data center land and building construction; and

•office facilities, ground-up development projects, and building improvements (also referred to as "fit-outs").

Assets not yet in service are those that are not ready for our intended use, including assets in the process of construction or assembly, and consists primarily of technical infrastructure. The time frame from date of purchase to placement in service of these assets may extend from months to years. For example, our data center construction projects are generally multi-year projects with multiple phases, where we acquire land and buildings, construct buildings, and secure and install servers and network equipment. 

During the three months ended March 31, 2024 and 2025, we spent $12.0 billion and $17.2 billion on capital expenditures, respectively. We expect to increase, relative to 2024, our investment in our technical infrastructure, including servers, network equipment, and data centers, to support the growth of our business and our long-term initiatives, in particular in support of AI products and services. Depreciation of our property and equipment commences when such assets are ready for our intended use. For the three months ended March 31, 2024 and 2025, depreciation on property and equipment was $3.4 billion and $4.5 billion, respectively. 

Leases

As of March 31, 2025, the amount of total future lease payments under operating and finance leases was $17.0 billion and