Company: GOOGL
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001652044-25-000043
Chunk: 12

Company: Alphabet Inc.
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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 gains on equity securities. The net gains on equity securities were due to net unrealized gains on non-marketable equity securities driven by fair value adjustments related to observable transactions.

For additional information, 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.

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Provision for Income Taxes

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

Three Months EndedMarch 31,20242025Income before provision for income taxes$28,315 $41,789 Provision for income taxes$4,653 $7,249 Effective tax rate16.4 %17.3 %

The effective tax rate increased from the three months ended March 31, 2024 to the three months ended March 31, 2025. This increase was primarily due to lower effective tax rate impacts in the U.S. federal Foreign Derived Intangible Income tax deduction, R&D credits, and stock-based compensation-related tax benefits. 

The OECD is coordinating negotiations among more than 140 countries with the goal of achieving consensus around substantial changes to international tax policies, including the implementation of a minimum global effective tax rate of 15%. 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 March 31, 2025.

Financial Condition

Cash, Cash Equivalents, and Marketable Securities

As of March 31, 2025, we had $95.3 billion in cash, cash equivalents, and short-term marketable securities. Cash equivalents and marketable securities are comprised of time deposits, money market funds, highly liquid government bonds, corporate debt securities, mortgage-backed and asset-backed securities, and marketable equity securities.

Sources, Uses of Cash and Related Trends

Our principal sources of liquidity are cash, cash equivalents, and marketable securities, as well as the cash flow that we generate from operations. The primary use of capital continues to be to invest for the long-term growth of the business. We regularly evaluate our cash and capital structure, including the size, pace, and form of capital return to stockholders.

The following table presents cash flows (in millions):

 Three Months EndedMarch 31, 20242025Net cash provided by operating activities$28,848 $36,150 Net cash used in investing activities$(