GOOGLAlphabet Inc. (Class A)

•AI: Laws and regulations focused on the development, use, and provision of AI technologies and other digital products and services, which could result in monetary penalties or other regulatory actions. For example, the EU AI Act came into force on August 1, 2024, and will generally become fully applicable after a two-year transitional period (although certain obligations will take effect at an earlier or later time). have already taken effect). The EU AI Act introduces various requirements for AI systems and models placed on the market or put into service in the EU, including specific transparency transparency, safety, and other copyright requirements for general purpose AI systems and the models on which those systems are based. Various countries, including Brazil, India, Japan, South Korea, Singapore, and Vietnam, have also enacted or are considering enacting regulations focused on AI. In the U.S., there US, an increasing amount of legislative and regulatory activity regarding AI is increasing uncertainty as to taking place at the federal government's approach state level. In 2025, state legislatures considered more than 1,000 AI-related bills, including on fundamental model research and development, synthetic media, algorithmic decision-making, and many others, and took a variety of approaches to AI regulation going forward, as regulation. For instance, in 2025, California and New York passed the continued applicability Transparency in Frontier Artificial Intelligence Act and the Responsible AI Safety and Education Act, respectively, each of which imposes safety and reporting obligations on developers of frontier models. At the same time, the White House's 2023 Executive Order on the Safe, Secure, and Trustworthy Development and Use of Order, Removing Barriers to American Leadership in Artificial Intelligence, which lays out a framework for the U.S. government, among other things, to monitor private sector development of certain foundation models, remains subject to regulatory development. Several states are considering enacting or have already enacted regulations concerning the use of prioritizes deregulation, while its AI technologies, including those focused on consumer protection, and depending on the scope of AI regulation at the federal level, some states may move to regulate AI model development and deployment. Further, at the federal and state level, there have been various proposals (and in some cases laws enacted) addressing “deepfakes” and other AI-generated synthetic media. Action Plan emphasizes accelerating American innovation leadership.

•Advertising Technology: In December 2020, a number of state Attorneys General filed a lawsuit in the U.S. US District Court for the Eastern District of Texas alleging that Google violated U.S. concerning Google's advertising technology and its compliance with US antitrust laws as well as and state deceptive trade laws relating to its advertising technology, and a trial is scheduled for March 2025. Additionally, in laws. In January 2023, the DOJ, along with a number of state Attorneys General, filed a lawsuit in the U.S. US District Court for the Eastern District of Virginia alleging that Google violated U.S. concerning Google's advertising technology and its compliance with US antitrust laws relating to its advertising technology, laws, and a number of additional state Attorneys General subsequently joined the lawsuit. The trial ended In April 2025, the US District Court for the Eastern District of Virginia issued a mixed decision in the DOJ case against Google, ruling that neither Google's advertiser tools nor the DoubleClick and AdMeld acquisitions were anticompetitive, but that Google's publisher tools unfairly excluded rivals. A separate proceeding to determine remedies, the range of which vary widely, took place in September 2024, 2025, with the parties presenting differing remedy proposals. The DOJ's remedy proposal includes structural remedies that could have a material adverse effect on our business. Closing arguments were held in November 2025, and we expect are awaiting a final judgment. After that judgment, we plan to appeal the adverse portion of the April 2025 decision and potentially aspects of the remedies decision. A trial in the state Attorneys General case in the Eastern District of Texas will take place after a decision on remedies is issued in early 2025. the DOJ case. Given the nature of these matters, we cannot estimate a possible loss.

In December 2023, September 2025, the Financial Accounting Standards Board (FASB) FASB issued Accounting Standards Update (ASU) 2023-09 "Income Taxes (Topics 740): ASU 2025-06 "Intangibles: Goodwill and Other‒Internal-Use Software (Subtopic 350-40): Targeted Improvements to Income Tax Disclosures" the Accounting for Internal-Use Software" to expand modernize the disclosure requirements accounting for income taxes. software costs under Subtopic 350-40, Intangibles‒Goodwill and Other‒Internal-Use Software (referred to as “internal-use software”). Upon adoption adoption, we will be required to disclose additional specified categories in account for internal-use software under the rate reconciliation in both percentage updated capitalization criteria. The standard is effective for our interim and dollar amounts. We will also be required to disclose the amount of income taxes paid disaggregated by jurisdiction, among other disclosure requirements. annual 2028 periods, with early adoption permitted. The standard can be applied either prospectively prospectively, retrospectively, or retrospectively. under a modified transition approach. We will adopt the standard in our 2025 annual period and are currently assessing adoption timing, the method of adoption, and the effect that the updated standard will have on our consolidated financial statement disclosures. statements.

For the years ended December 31, 2023 and 2024, we recognized additional operating lease assets of $2.9 billion and $2.5 billion, and additional finance lease assets of $564 million and $313 million, respectively. As of December 31, 2024, 2025, the amount of total undiscounted future lease payments under operating leases, which had a weighted average remaining lease term of 7.8 years, leases was $17.0 $18.3 billion, of which $3.2 $3.3 billion is short-term, and total undiscounted future lease payments under finance leases, which had a weighted average remaining lease term of 10.4 years, leases was $1.9 $2.9 billion, of which $257 $491 million is short-term. As of December 31, 2024, we have entered into leases that have not yet commenced with future short-term and long-term lease payments of $773 million and $6.5 billion, respectively, that are not yet recorded on our Consolidated Balance Sheets. These leases will commence between 2025 and 2028 with non-cancelable lease terms of one to 25 years.