Company: GOOGL
Filing Date: 2025-02-05
Form Type: 10-K
Source: 0001652044-25-000014
Chunk: 64

Company: Alphabet Inc.
Filing Date: 2025-02-05
Form: 10-K
Item: Item 8
Chunk 64
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8)Stock-based compensation expense(1.2)(0.8)(1.5)Federal research credit(2.2)(1.8)(1.5)Deferred tax asset valuation allowance0.9 0.6 0.4 State and local income taxes0.8 1.0 1.1 Effect of tax law change0.0 (1.4)0.0 Other(1.0)(0.4)0.2 Effective tax rate15.9 %13.9 %16.4 %In 2023, the IRS issued a rule change allowing taxpayers to temporarily apply the regulations in effect prior to 2022 related to U.S. federal foreign tax credits as well as a separate rule change with guidance on the capitalization and amortization of R&D expenses. A cumulative one-time adjustment for these tax rule changes was recorded in 2023.

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Table of ContentsAlphabet Inc.

Deferred Income TaxesDeferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities were as follows (in millions):As of December 31,20232024Deferred tax assets:Accrued employee benefits$1,855 $1,834 Accruals and reserves not currently deductible2,481 2,552 Tax credits6,609 6,384 Net operating losses2,965 3,472 Operating leases3,526 3,336 Capitalized research and development17,757 25,903 Other1,951 1,376 Total deferred tax assets37,144 44,857 Valuation allowance(10,999)(11,493)Total deferred tax assets net of valuation allowance26,145 33,364 Deferred tax liabilities:Property and equipment, net(8,189)(9,932)Net investment gains(2,405)(2,978)Operating leases(2,965)(2,986)Other(902)(1,008)Total deferred tax liabilities(14,461)(16,904)Net deferred tax assets (liabilities)$11,684 $16,460 As of December 31, 2024, our federal, state, and foreign net operating loss carryforwards for income tax purposes were approximately $8.4 billion, $19.4 billion, and