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Google has posted second quarter results, showing healthy growth for the period ended 30 June.

“Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus 7 tablet, which has received rave reviews,” says Larry Page, CEO of Google. “This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”

During the quarter, Google completed its acquisition of Motorola Mobility Holdings. The assets and liabilities of Motorola were included in Google’s Consolidated Balance Sheet as of June 30, 2012, and the operating results of Motorola were included in Google’s Consolidated Statement of Income from the acquisition date through June 30, 2012.

CFO Patrick Pichette noted: “We can expect Motorola to continue to show some accounting variability, as is typical with the closing of such large transactions.”

Google reported consolidated revenues of $12.21 billion for the quarter ended June 30, 2012, an increase of 35% compared to the second quarter of 2011. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the second quarter of 2012, TAC totaled $2.60 billion, or 25% of advertising revenues.

Operating income, operating margin, net income, and earnings per share (EPS) are reported on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures at the end of this release.

GAAP operating income in the second quarter of 2012 was $3.20 billion, or 26% of revenues. This compares to GAAP operating income of $2.88 billion, or 32% of revenues, in the second quarter of 2011. Non-GAAP operating income in the second quarter of 2012 was $3.95 billion, or 32% of revenues. This compares to non-GAAP operating income of $3.32 billion, or 37% of revenues, in the second quarter of 2011.

GAAP net income in the second quarter of 2012 was $2.79 billion, compared to $2.51 billion in the second quarter of 2011. Non-GAAP net income in the second quarter of 2012 was $3.35 billion, compared to $2.85 billion in the second quarter of 2011.

GAAP EPS in the second quarter of 2012 was $8.42 on 331 million diluted shares outstanding, compared to $7.68 in the second quarter of 2011 on 326 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2012 was $10.12, compared to $8.74 in the second quarter of 2011.

Non-GAAP operating income and non-GAAP operating margin exclude the expenses related to stock-based compensation (SBC) and severance and benefit arrangements in connection with the Motorola acquisition in the second quarter of 2012. Non-GAAP net income and non-GAAP EPS exclude the expenses noted above, net of the related tax benefit. In the second quarter of 2012, the expense related to SBC and the related tax benefits were $565 million and $135 million, compared to $435 million and $91 million in the second quarter of 2011. In the second quarter of 2012, the charge related to severance and benefit arrangements in connection with the Motorola acquisition was $182 million and the related tax benefit was $51 million.