Strong market position in the online search and video advertising market; Revenues are geographically diversified with low customer concentration risk; Significant revenue contribution from high margin products, supporting consolidated operating earnings and cash flows; Exposure to economic cycle fluctuations as a majority of total revenues are derived from advertising; and Increased regulatory scrutiny across regions. Significant financial flexibility from substantial net cash balances with cash and investments of about $78 billion and funded debt of about $4 billion; and Robust internal cash flow generation, with free operating cash flow (FOCF) of about $21 billion in the last 12 months ended June 30, 2016, despite sizeable investments in research and development. The stable outlook reflects S&P Global Ratings' expectation that Alphabet
