Corporate affairs

Finance

Google's initial public offering (IPO) took place on August 19, 2004. At IPO, the company offered 19,605,052 shares at a price of $85 per share. The sale of $1.67 billion gave Google a market capitalization of more than $23 billion. The stock performed well after the IPO, with shares hitting $350 for the first time on October 31, 2007, primarily because of strong sales and earnings in the online advertising market. The surge in stock price was fueled mainly by individual investors, as opposed to large institutional investors and mutual funds. GOOG shares split into GOOG class C shares and GOOGL class A shares. The company is listed on the NASDAQ stock exchange under the ticker symbols GOOGL and GOOG, and on the Frankfurt Stock Exchange under the ticker symbol GGQ1. These ticker symbols now refer to Alphabet Inc., Google's holding company, since the fourth quarter of 2015.update

The corporation's consolidated revenue for the third quarter of 2013 was reported in mid-October 2013 as $14.89 billion, a 12 percent increase compared to the previous quarter. Google's Internet business was responsible for $10.8 billion of this total, with an increase in the number of users' clicks on advertisements. By January 2014, Google's market capitalization had grown to $397 billion.

Google uses various tax avoidance strategies. Out of the five largest United States based technology companies, it pays the lowest taxes to the countries of origin of its revenues. Google between 2007 and 2010 saved $3.1 billion in taxes by shuttling non-U.S. profits through Ireland and the Netherlands and then to Bermuda. Such techniques lower its non-U.S. tax rate to 2.3 per cent, while normally the corporate tax rate in for instance the UK is 28 per cent. This has reportedly sparked a French investigation into Google's transfer pricing practices.

Google said it overhauled its controversial global tax structure and consolidated all of its intellectual property holdings back to the US.

Google Vice-President Matt Brittin testified to the Public Accounts Committee of the UK House of Commons that his UK sales team made no sales and hence owed no sales taxes to the UK. In January 2016, Google reached a settlement with the UK to pay £130m in back taxes plus higher taxes in future. In 2017, Google channeled $22.7 billion from the Netherlands to Bermuda to reduce its tax bill.

In 2013, Google ranked 5th in lobbying spending, up from 213th in 2003. In 2012, the company ranked 2nd in campaign donations of technology and Internet sections.

Corporate identity

The name "Google" originated from a misspelling of "googol", which refers to the number represented by a 1 followed by one-hundred zeros. Page and Brin write in their original paper on PageRank: "We chose our systems name, Google, because it is a common spelling of googol, or 10100 and fits well with our goal of building very large-scale search engines." Having found its way increasingly into everyday language, the verb "google" was added to the Merriam Webster Collegiate Dictionary and the Oxford English Dictionary in 2006, meaning "to use the Google search engine to obtain information on the Internet." Google's mission statement, from the outset, was "to organize the world's information and make it universally accessible and useful", and its unofficial slogan is "Don't be evil". In October 2015, a related motto was adopted in the Alphabet corporate code of conduct by the phrase: "Do the right thing". The original motto was retained in the code of conduct of Google, now a subsidiary of Alphabet.

The original Google logo was designed by Sergey Brin. Since 1998,update Google has been designing special, temporary alternate logos to place on their homepage intended to celebrate holidays, events, achievements and people. The first Google Doodle was in honor of the Burning Man Festival of 1998. The doodle was designed by Larry Page and Sergey Brin to notify users of their absence in case the servers crashed. Subsequent Google Doodles were designed by an outside contractor, until Larry and Sergey asked then-intern Dennis Hwang to design a logo for Bastille Day in 2000. From that point onward, Doodles have been organized and created by a team of employees termed "Doodlers".

Google has a tradition of creating April Fools' Day jokes. Its first on April 1, 2000 was Google MentalPlex which allegedly featured the use of mental power to search the web. In 2007, Google announced a free Internet service called TiSP, or Toilet Internet Service Provider, where one obtained a connection by flushing one end of a fiber-optic cable down their toilet.

Google's services contain easter eggs, such as the Swedish Chef's "Bork bork bork," Pig Latin, "Hacker" or leetspeak, Elmer Fudd, Pirate, and Klingon as language selections for its search engine. When searching for the word "anagram," meaning a rearrangement of letters from one word to form other valid words, Google's suggestion feature displays "Did you mean: nag a ram?"

Workplace culture

On Fortune magazine's list of the best companies to work for, Google ranked first in 2007, 2008 and 2012, and fourth in 2009 and 2010. Google was also nominated in 2010 to be the world's most attractive employer to graduating students in the Universum Communications talent attraction index. Google's corporate philosophy includes principles such as "you can make money without doing evil," "you can be serious without a suit," and "work should be challenging and the challenge should be fun."

As of December 2018,update Google had 98,771 employees. Google's 2017update diversity report states that 31 percent of its workforce are women and 69 percent are men, with the ethnicity of its workforce being predominantly white (56%) and Asian (35%). Within tech roles, however, 20 percent were women; and 25 percent of leadership roles were held by women.

Google's employees are hired based on a hierarchical system. Employees are split into six hierarchies based on experience and can range "from entry-level data center workers at level one to managers and experienced engineers at level six." As a motivation technique, Google uses a policy known as Innovation Time Off, where Google engineers are encouraged to spend 20% of their work time on projects that interest them. Some of Google's services, such as Gmail, Google News, Orkut, and AdSense originated from these independent endeavors. In a talk at Stanford University, Marissa Mayer, Google's Vice-President of Search Products and User Experience until July 2012, showed that half of all new product launches in the second half of 2005 had originated from the Innovation Time Off.

In 2005, articles in The New York Times and other sources began suggesting that Google had lost its anti-corporate, no evil philosophy. In an effort to maintain the company's unique culture, Google designated a Chief Culture Officer whose purpose was to develop and maintain the culture and work on ways to keep true to the core values that the company was founded on. Google has also faced allegations of sexism and ageism from former employees. In 2013, a class action against several Silicon Valley companies, including Google, was filed for alleged "no cold call" agreements which restrained the recruitment of high-tech employees. In a lawsuit filed January 8, 2018, multiple employees and job applicants alleged Google discriminated against a class defined by their “conservative political views, male gender, and/or … Caucasian or Asian race”.

Office locations

Google's headquarters in Mountain View, California is referred to as "the Googleplex", a play on words on the number googolplex and the headquarters itself being a complex of buildings. Internationally, Google has over 78 offices in more than 50 countries.

In 2006, Google moved into about 300,000 square feet (27,900 m2) of office space in New York City, at 111 Eighth Avenue in Manhattan. The office was designed and built specially for Google, and houses its largest advertising sales team, which has been instrumental in securing large partnerships. In 2010, Google bought the building housing the headquarter, in a deal that valued the property at around $1.9 billion. In March 2018, Google's parent company Alphabet bought the nearby Chelsea Market building for $2.4 billion. The sale is touted as one of the most expensive real estate transactions for a single building in the history of New York. In November 2018, Google announced its plan to expand its New York City office to a capacity of 12,000 employees. The same December, it was announced that a $1 billion, 1,700,000-square-foot (160,000 m2) headquarters for Google would be built in Manhattan's Hudson Square neighborhood. Called Google Hudson Square, the new campus is projected to more than double the number of Google employees working in New York City.

By late 2006, Google established a new headquarters for its AdWords division in Ann Arbor, Michigan. In November 2006, Google opened offices on Carnegie Mellon's campus in Pittsburgh, focusing on shopping-related advertisement coding and smartphone applications and programs. Other office locations in the U.S. include Atlanta, Georgia; Austin, Texas; Boulder, Colorado; Cambridge, Massachusetts; San Francisco, California; Seattle, Washington; Kirkland, Washington; Birmingham, Michigan; Reston, Virginia, and Washington, D.C.

It also has product research and development operations in cities around the world, namely Sydney (birthplace location of Google Maps) and London (part of Android development). In November 2013, Google announced plans for a new London headquarter, a 1 million square foot office able to accommodate 4,500 employees. Recognized as one of the biggest ever commercial property acquisitions at the time of the deal's announcement in January, Google submitted plans for the new headquarter to the Camden Council in June 2017. In May 2015, Google announced its intention to create its own campus in Hyderabad, India. The new campus, reported to be the company's largest outside the United States, will accommodate 13,000 employees.

Infrastructure

Google data centers are located in North and South America, Asia, and Europe. There is no official data on the number of servers in Google data centers; however, research and advisory firm Gartner estimated in a July 2016 report that Google at the time had 2.5 million servers. Traditionally, Google relied on parallel computing on commodity hardware like mainstream x86 computers (similar to home PCs) to keep costs per query low. In 2005, it started developing its own designs, which were only revealed in 2009.

In the late 2010s, Google began to build its own private submarine communications cables. The first, named Curie, connects California with Chile and was completed on November 15, 2019. The second fully Google-owned undersea cable, named Dunant, connects the United States with France and is planned to begin operation in 2020.

Environment

In October 2006, the company announced plans to install thousands of solar panels to provide up to 1.6 megawatts of electricity, enough to satisfy approximately 30% of the campus' energy needs. The system will be the largest solar power system constructed on a U.S. corporate campus and one of the largest on any corporate site in the world. Since 2007,update Google has aimed for carbon neutrality in regard to its operations.

Google disclosed in September 2011 that it "continuously uses enough electricity to power 200,000 homes", almost 260 million watts or about a quarter of the output of a nuclear power plant. Total carbon emissions for 2010 were just under 1.5 million metric tons, mostly due to fossil fuels that provide electricity for the data centers. Google said that 25 percent of its energy was supplied by renewable fuels in 2010. An average search uses only 0.3 watt-hours of electricity, so all global searches are only 12.5 million watts or 5% of the total electricity consumption by Google.

In 2010, Google Energy made its first investment in a renewable energy project, putting $38.8 million into two wind farms in North Dakota. The company announced the two locations will generate 169.5 megawatts of power, enough to supply 55,000 homes. In February 2010, the Federal Energy Regulatory Commission FERC granted Google an authorization to buy and sell energy at market rates. The corporation exercised this authorization in September 2013 when it announced it would purchase all the electricity produced by the not-yet-built 240-megawatt Happy Hereford wind farm.

In July 2010, Google signed an agreement with an Iowa wind farm to buy 114 megawatts of energy for 20 years.

In December 2016, Google announced that—starting in 2017—it will power all of its data centers, as well as all of its offices, from 100% renewable energy. The commitment will make Google "the world's largest corporate buyer of renewable power, with commitments reaching 2.6 gigawatts (2,600 megawatts) of wind and solar energy". Google also stated that it does not count that as its final goal; it says that "since the wind doesn't blow 24 hours a day, we'll also broaden our purchases to a variety of energy sources that can enable renewable power, every hour of every day". Additionally, the project will "help support communities" around the world, as the purchase commitments will "result in infrastructure investments of more than $3.5 billion globally", and will "generate tens of millions of dollars per year in revenue to local property owners, and tens of millions more to local and national governments in tax revenue".

In November 2017, Google bought 536 megawatts of wind power. The purchase made the firm reach 100% renewable energy. The wind energy comes from two power plants in South Dakota, one in Iowa and one in Oklahoma.

In September 2019, Google's chief executive announced plans for a $2 billion wind and solar investment, the biggest renewable energy deal in corporate history. This will grow their green energy profile by 40%, giving them an extra 1.6 gigawatt of clean energy, the company said.

Google donates to politicians who deny climate change including Jim Inhofe as well as sponsoring climate change denial political groups including the State Policy Network and the Competitive Enterprise Institute.

Philanthropy

In 2004, Google formed the not-for-profit philanthropic Google.org, with a start-up fund of $1 billion. The mission of the organization is to create awareness about climate change, global public health, and global poverty. One of its first projects was to develop a viable plug-in hybrid electric vehicle that can attain 100 miles per gallon. Google hired Larry Brilliant as the program's executive director in 2004 and Megan Smith has sinceupdate replaced him as director.

In 2008, Google announced its "project 10100" which accepted ideas for how to help the community and then allowed Google users to vote on their favorites. After two years of silence, during which many wondered what had happened to the program, Google revealed the winners of the project, giving a total of ten million dollars to various ideas ranging from non-profit organizations that promote education to a website that intends to make all legal documents public and online.

In March 2007, in partnership with the Mathematical Sciences Research Institute (MSRI), Google hosted the first Julia Robinson Mathematics Festival at its headquarters in Mountain View. In 2011, Google donated 1 million euros to International Mathematical Olympiad to support the next five annual International Mathematical Olympiads (2011–2015). In July 2012, Google launched a "Legalize Love" campaign in support of gay rights.