We compute net income per share of Class A, Class B, and Class C stock using the two-class method. Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of RSUs and other contingently issuable shares. The dilutive effect of outstanding RSUs and other contingently issuable shares is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A stock assumes the conversion of Class B stock, while the diluted net income per share of Class B stock does not assume the conversion of those shares.

The rights, including the liquidation and dividend rights, of the holders of our Class A, Class B, and Class C stock are identical, except with respect to voting. Furthermore, there are a number of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude our Board of Directors from declaring or paying unequal per share dividends on our Class A, Class B, and Class C stock. Specifically, Delaware law provides that amendments to our certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a given class of stock must be approved by the class of stock adversely affected by the proposed amendment. In addition, our certificate of incorporation provides that before any such amendment may be put to a stockholder vote, it must be approved by the unanimous consent of our Board of Directors. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A, Class B, and Class C stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis.

In the years ended December 31, 2021, 2022, and 2023, the net income per share amounts are the same for Class A, Class B, and Class C stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with the Amended and Restated Certificate of Incorporation of Alphabet Inc.


	Year Ended December 31,
	2021
	Class A		Class B		Class C
Basic net income per share:
Numerator

Allocation of undistributed earnings	$	34,200	$	5,174	$	36,659
Denominator
Number of shares used in per share computation	6,006		909		6,438



Basic net income per share	$	5.69	$	5.69	$	5.69
Diluted net income per share:
Numerator
Allocation of undistributed earnings for basic computation	$	34,200	$	5,174	$	36,659
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares	5,174		0		0
Reallocation of undistributed earnings	(581)		(77)		581

Allocation of undistributed earnings	$	38,793	$	5,097	$	37,240





Denominator
Number of shares used in basic computation	6,006		909		6,438
Weighted-average effect of dilutive securities
Add:
Conversion of Class B to Class A shares outstanding	909		0		0

Restricted stock units and other contingently issuable shares	0		0		200
Number of shares used in per share computation	6,915		909		6,638




Diluted net income per share	$	5.61	$	5.61	$	5.61


	Year Ended December 31,
	2022
	Class A		Class B		Class C
Basic net income per share:
Numerator



Allocation of undistributed earnings	$	27,518	$	4,072	$	28,382
Denominator
Number of shares used in per share computation	5,994		887		6,182



Basic net income per share	$	4.59	$	4.59	$	4.59
Diluted net income per share:
Numerator
Allocation of undistributed earnings for basic computation	$	27,518	$	4,072	$	28,382
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares	4,072		0		0
Reallocation of undistributed earnings	(230)		(30)		230
Allocation of undistributed earnings	$	31,360	$	4,042	$	28,612





Denominator
Number of shares used in basic computation	5,994		887		6,182
Weighted-average effect of dilutive securities
Add:
Conversion of Class B to Class A shares outstanding	887		0		0

Restricted stock units and other contingently issuable shares	0		0		96
Number of shares used in per share computation	6,881		887		6,278




Diluted net income per share	$	4.56	$	4.56	$	4.56


	Year Ended December 31,
	2023
	Class A		Class B		Class C
Basic net income per share:
Numerator
Allocation of undistributed earnings	$	34,601	$	5,124	$	34,070
Denominator
Number of shares used in per share computation	5,922		877		5,831



Basic net income per share	$	5.84	$	5.84	$	5.84
Diluted net income per share:
Numerator

Allocation of undistributed earnings for basic computation	$	34,601	$	5,124	$	34,070


Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares	5,124		0		0
Reallocation of undistributed earnings	(287)		(37)		287
Allocation of undistributed earnings	$	39,438	$	5,087	$	34,357





Denominator
Number of shares used in basic computation	5,922		877		5,831
Weighted-average effect of dilutive securities
Add:
Conversion of Class B to Class A shares outstanding	877		0		0

Restricted stock units and other contingently issuable shares	0		0		92
Number of shares used in per share computation	6,799		877		5,923




Diluted net income per share	$	5.80	$	5.80	$	5.80