A Look at Google’s Expenses


google expenses

From internet browsers to smartphone operating systems to map applications, Google creates a wide range of technological wonders for everyday computer users. The software company encourages employee motivation by allowing workers to spend part of their workweek creating whatever they want, and this hands-off approach has led to astronomical profits. Google’s total revenue in 2011 was $37.0 billion. How does the company spend those piles of cash?

Roughly one-third of income goes to maintenance and manufacturing, including costs like labor, utilities and operating expenses for servers. About one-fourth of income goes to Google Network members who help generate advertising income. Google invests heavily in employees; in 2011, all employees received a 10 percent raise. Around $5 billion each goes to research and development and marketing. Taxes in 2011 were $2.6 billion. Although many of Google’s most popular services are completely free, the company is obviously doing something right.

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