Financial Instruments (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Fair Value Disclosures [Abstract] |
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| Available-for-sale debt securities |
The following tables summarize debt securities, for which we did not elect the fair value option, by significant investment categories as of December 31, 2020 and 2021 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | Adjusted
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | | Cash and
Cash
Equivalents | | Marketable
Securities | | Level 2: | | | | | | | | | | | | Time deposits(1) | $ | 3,564 | | | $ | 0 | | | $ | 0 | | | $ | 3,564 | | | $ | 3,564 | | | $ | 0 | | | Government bonds | 55,156 | | | 793 | | | (9) | | | 55,940 | | | 2,527 | | | 53,413 | | | Corporate debt securities | 31,521 | | | 704 | | | (2) | | | 32,223 | | | 8 | | | 32,215 | | | Mortgage-backed and asset-backed securities | 16,767 | | | 364 | | | (7) | | | 17,124 | | | 0 | | | 17,124 | | | Total | $ | 107,008 | | | $ | 1,861 | | | $ | (18) | | | $ | 108,851 | | | $ | 6,099 | | | $ | 102,752 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2021 | | | Adjusted
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | | Cash and
Cash
Equivalents | | Marketable
Securities | | Level 2: | | | | | | | | | | | | Time deposits(1) | $ | 5,133 | | | $ | 0 | | | $ | 0 | | | $ | 5,133 | | | $ | 5,133 | | | $ | 0 | | | Government bonds | 53,288 | | | 258 | | | (238) | | | 53,308 | | | 5 | | | 53,303 | | | Corporate debt securities | 35,605 | | | 194 | | | (223) | | | 35,576 | | | 12 | | | 35,564 | | | Mortgage-backed and asset-backed securities | 18,829 | | | 96 | | | (112) | | | 18,813 | | | 0 | | | 18,813 | | | Total | $ | 112,855 | | | $ | 548 | | | $ | (573) | | | $ | 112,830 | | | $ | 5,150 | | | $ | 107,680 | |
(1)The majority of our time deposits are domestic deposits.
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| Investments by maturity date |
The following table summarizes the estimated fair value of investments in marketable debt securities by stated contractual maturity dates (in millions): | | | | | | | As of
December 31, 2021 | | Due in 1 year or less | $ | 16,192 | | | Due in 1 year through 5 years | 78,625 | | | Due in 5 years through 10 years | 4,675 | | | Due after 10 years | 12,864 | | | Total | $ | 112,356 | |
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| Schedule of unrealized loss on debt securities |
The following tables present fair values and gross unrealized losses recorded to AOCI as of December 31, 2020 and 2021, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | Less than 12 Months | | 12 Months or Greater | | Total | | | Fair Value | | Unrealized
Loss | | Fair Value | | Unrealized
Loss | | Fair Value | | Unrealized
Loss | | Government bonds | $ | 5,516 | | | $ | (9) | | | $ | 3 | | | $ | 0 | | | $ | 5,519 | | | $ | (9) | | | Corporate debt securities | 1,999 | | | (1) | | | 0 | | | 0 | | | 1,999 | | | (1) | | | Mortgage-backed and asset-backed securities | 929 | | | (5) | | | 242 | | | (2) | | | 1,171 | | | (7) | | | Total | $ | 8,444 | | | $ | (15) | | | $ | 245 | | | $ | (2) | | | $ | 8,689 | | | $ | (17) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2021 | | | Less than 12 Months | | 12 Months or Greater | | Total | | | Fair Value | | Unrealized
Loss | | Fair Value | | Unrealized
Loss | | Fair Value | | Unrealized
Loss | | Government bonds | $ | 32,843 | | | $ | (236) | | | $ | 71 | | | $ | (2) | | | $ | 32,914 | | | $ | (238) | | | Corporate debt securities | 22,737 | | | (152) | | | 303 | | | (5) | | | 23,040 | | | (157) | | | Mortgage-backed and asset-backed securities | 11,502 | | | (106) | | | 248 | | | (6) | | | 11,750 | | | (112) | | | Total | $ | 67,082 | | | $ | (494) | | | $ | 622 | | | $ | (13) | | | $ | 67,704 | | | $ | (507) | |
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| Gains and losses on equity securities |
Gains and losses reflected in other income (expense), net, for marketable and non-marketable equity securities are summarized below (in millions): | | | | | | | | | | | | | Year Ended December 31, | | | 2020 | | 2021 | | Net gain (loss) on equity securities sold during the period | $ | 1,339 | | | $ | 1,196 | | | Unrealized gain (loss) on equity securities held as of the end of the period | 4,253 | | | 11,184 | | | Total gain (loss) recognized in other income (expense), net | $ | 5,592 | | | $ | 12,380 | |
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| Cumulative net gains on equity securities sold |
| | | | | | | | | | | | | Equity Securities Sold During the Year Ended December 31, | | | 2020 | | 2021 | | Total sale price | $ | 4,767 | | | $ | 5,604 | | | Total initial cost | 2,674 | | | 1,206 | | Cumulative net gains(1) | $ | 2,093 | | | $ | 4,398 | |
(1)Cumulative net gains excludes cumulative losses of $738 million resulting from our equity derivatives, which hedged the changes in fair value of certain marketable equity securities sold during the year ended December 31, 2021. The associated derivative liabilities arising from these losses were settled against our holdings of the underlying equity securities.
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| Summary of unrealized gains and losses for non-marketable equity securities |
The carrying values for marketable and non-marketable equity securities are summarized below (in millions): | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | Marketable Equity Securities | | Non-Marketable Equity Securities | | Total | | Total initial cost | $ | 2,227 | | | $ | 14,616 | | | $ | 16,843 | | Cumulative net gain (loss)(1) | 3,631 | | | 4,277 | | | 7,908 | | Carrying value(2) | $ | 5,858 | | | $ | 18,893 | | | $ | 24,751 | |
(1)Non-marketable equity securities cumulative net gain (loss) is comprised of $6.1 billion gains and $1.9 billion losses (including impairment). (2)The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $429 million is included within other non-current assets. | | | | | | | | | | | | | | | | | | | As of December 31, 2021 | | Marketable Equity Securities | | Non-Marketable Equity Securities | | Total | | Total initial cost | $ | 4,211 | | | $ | 15,135 | | | $ | 19,346 | | Cumulative net gain (loss)(1) | 3,587 | | | 12,436 | | | 16,023 | | Carrying value(2) | $ | 7,798 | | | $ | 27,571 | | | $ | 35,369 | |
(1)Non-marketable equity securities cumulative net gain (loss) is comprised of $14.1 billion gains and $1.7 billion losses (including impairment). (2)The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.4 billion is included within other non-current assets.
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| Marketable equity securities |
The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2020 and 2021 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | As of December 31, 2021 | | | Cash and Cash Equivalents | | Marketable Equity
Securities | | Cash and Cash Equivalents | | Marketable Equity
Securities | | Level 1: | | | | | | | | | Money market funds | $ | 12,210 | | | $ | 0 | | | $ | 7,499 | | | $ | 0 | | Marketable equity securities(1)(2) | 0 | | | 5,470 | | | 0 | | | 7,447 | | | 12,210 | | | 5,470 | | | 7,499 | | | 7,447 | | | Level 2: | | | | | | | | | Mutual funds | 0 | | | 388 | | | 0 | | | 351 | | | Total | $ | 12,210 | | | $ | 5,858 | | | $ | 7,499 | | | $ | 7,798 | |
(1) The balance as of December 31, 2020 and 2021 includes investments that were reclassified from non-marketable equity securities following the commencement of public market trading of the issuers or acquisition by public entities (certain investments are subject to short-term lock-up restrictions). (2) As of December 31, 2020 and 2021, the long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $429 million and $1.4 billion, respectively, is included within other non-current assets.
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| Total unrealized gain (loss) for non-marketable equity securities |
The following is a summary of unrealized gains and losses recorded in other income (expense), net, which are included as adjustments to the carrying value of non-marketable equity securities held as of the end of the period (in millions): | | | | | | | | | | | | | | | Year Ended December 31, | | | | 2020 | | 2021 | | | | Unrealized gains on non-marketable equity securities | $ | 3,020 | | | $ | 9,971 | | | | | Unrealized losses on non-marketable equity securities (including impairment) | (1,489) | | | (122) | | | | | Total unrealized gain (loss) recognized on non-marketable equity securities | $ | 1,531 | | | $ | 9,849 | | | |
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| Schedule of gross notional amounts of derivative instruments |
The gross notional amounts of outstanding derivative instruments were as follows (in millions): | | | | | | | | | | | | | As of December 31, | | 2020 | | 2021 | | | | | | Derivatives Designated as Hedging Instruments: | | | | Foreign exchange contracts | | | | | Cash flow hedges | $ | 10,187 | | | $ | 16,362 | | | Fair value hedges | $ | 1,569 | | | $ | 2,556 | | | Net investment hedges | $ | 9,965 | | | $ | 10,159 | | | Derivatives Not Designated as Hedging Instruments: | | | | Foreign exchange contracts | $ | 39,861 | | | $ | 41,031 | | | Other contracts | $ | 2,399 | | | $ | 4,275 | |
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| Schedule of derivative instruments |
The fair values of outstanding derivative instruments were as follows (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | Balance Sheet Location | | Fair Value of
Derivatives
Designated as
Hedging Instruments | | Fair Value of
Derivatives Not
Designated as
Hedging Instruments | | Total Fair
Value | | Derivative Assets: | | | | | | | | | | Level 2: | | | | | | | | | | Foreign exchange contracts | | Other current and non-current assets | | $ | 33 | | | $ | 316 | | | $ | 349 | | | Other contracts | | Other current and non-current assets | | 0 | | | 16 | | | 16 | | | Total | | | | $ | 33 | | | $ | 332 | | | $ | 365 | | | Derivative Liabilities: | | | | | | | | | | Level 2: | | | | | | | | | | Foreign exchange contracts | | Accrued expenses and other liabilities, current and non-current | | $ | 395 | | | $ | 185 | | | $ | 580 | | | Other contracts | | Accrued expenses and other liabilities, current and non-current | | 0 | | | 942 | | | 942 | | | Total | | | | $ | 395 | | | $ | 1,127 | | | $ | 1,522 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2021 | | | Balance Sheet Location | | Fair Value of
Derivatives
Designated as
Hedging Instruments | | Fair Value of
Derivatives Not
Designated as
Hedging Instruments | | Total Fair
Value | | Derivative Assets: | | | | | | | | | | Level 2: | | | | | | | | | | Foreign exchange contracts | | Other current and non-current assets | | $ | 867 | | | $ | 42 | | | $ | 909 | | | Other contracts | | Other current and non-current assets | | 0 | | | 52 | | | 52 | | | Total | | | | $ | 867 | | | $ | 94 | | | $ | 961 | | | Derivative Liabilities: | | | | | | | | | | Level 2: | | | | | | | | | | Foreign exchange contracts | | Accrued expenses and other liabilities, current and non-current | | $ | 8 | | | $ | 452 | | | $ | 460 | | | Other contracts | | Accrued expenses and other liabilities, current and non-current | | 0 | | | 121 | | | 121 | | | Total | | | | $ | 8 | | | $ | 573 | | | $ | 581 | |
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| Schedule of gain (loss) on derivative instruments |
The gains (losses) on derivatives in cash flow hedging and net investment hedging relationships recognized in other comprehensive income (OCI) were summarized below (in millions): | | | | | | | | | | | | | | | | | | | | Gains (Losses) Recognized in OCI
on Derivatives Before Tax Effect | | | Year Ended December 31, | | 2019 | | 2020 | | 2021 | | Derivatives in Cash Flow Hedging Relationship: | | | | | | | Foreign exchange contracts | | | | | | | Amount included in the assessment of effectiveness | $ | 38 | | | $ | 102 | | | $ | 806 | | | Amount excluded from the assessment of effectiveness | (14) | | | (37) | | | 48 | | | Derivatives in Net Investment Hedging Relationship: | | | | | | | Foreign exchange contracts | | | | | | | Amount included in the assessment of effectiveness | 131 | | | (851) | | | 754 | | | Total | $ | 155 | | | $ | (786) | | | $ | 1,608 | |
The effect of derivative instruments on income was summarized below (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gains (Losses) Recognized in Income | | Year Ended December 31, | | 2019 | | 2020 | | 2021 | | Revenues | | Other income (expense), net | | Revenues | | Other income (expense), net | | Revenues | | Other income (expense), net | | Total amounts presented in the Consolidated Statements of Income in which the effects of cash flow and fair value hedges are recorded | $ | 161,857 | | | $ | 5,394 | | | $ | 182,527 | | | $ | 6,858 | | | $ | 257,637 | | | $ | 12,020 | | | | | | | | | | | | | | | Gains (Losses) on Derivatives in Cash Flow Hedging Relationship: | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI to income | $ | 367 | | | $ | 0 | | | $ | 144 | | | $ | 0 | | | $ | 165 | | | $ | 0 | | | Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach | 88 | | | 0 | | | 33 | | | 0 | | | (16) | | | 0 | | | | | | | | | | | | | | | Gains (Losses) on Derivatives in Fair Value Hedging Relationship: | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | Hedged items | 0 | | | (19) | | | 0 | | | 18 | | | 0 | | | (95) | | | Derivatives designated as hedging instruments | 0 | | | 19 | | | 0 | | | (18) | | | 0 | | | 95 | | | Amount excluded from the assessment of effectiveness | 0 | | | 25 | | | 0 | | | 4 | | | 0 | | | 8 | | | Gains (Losses) on Derivatives in Net Investment Hedging Relationship: | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | Amount excluded from the assessment of effectiveness | 0 | | | 243 | | | 0 | | | 151 | | | 0 | | | 82 | | | Gains (Losses) on Derivatives Not Designated as Hedging Instruments: | | | | | | | | | | | | | Foreign exchange contracts | 0 | | | (413) | | | 0 | | 718 | | | 0 | | | (860) | | | Other Contracts | 0 | | | 0 | | | 0 | | | (906) | | | 0 | | | 101 | | Total gains (losses) | $ | 455 | | | $ | (145) | | | $ | 177 | | | $ | (33) | | | $ | 149 | | | $ | (669) | |
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| Offsetting assets |
The gross amounts of derivative instruments subject to master netting arrangements with various counterparties, and cash and non-cash collateral received and pledged under such agreements were as follows (in millions): Offsetting of Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | | | | Gross Amounts of Recognized Assets | | Gross Amounts Offset in the Consolidated Balance Sheets | | Net Presented in the Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Received | | Non-Cash Collateral Received | | Net Assets Exposed | | Derivatives | $ | 397 | | | $ | (32) | | | $ | 365 | | | $ | (295) | | (1) | $ | (16) | | | $ | 0 | | | $ | 54 | | | | | | | | | | | | | | | | | As of December 31, 2021 | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | | | | Gross Amounts of Recognized Assets | | Gross Amounts Offset in the Consolidated Balance Sheets | | Net Presented in the Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Received | | Non-Cash Collateral Received | | Net Assets Exposed | | Derivatives | $ | 999 | | | $ | (38) | | | $ | 961 | | | $ | (434) | | (1) | $ | (394) | | | $ | (12) | | | $ | 121 | |
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| Offsetting liabilities |
Offsetting of Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | | | | Gross Amounts of Recognized Liabilities | | Gross Amounts Offset in the Consolidated Balance Sheets | | Net Presented in the Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Pledged | | Non-Cash Collateral Pledged | | Net Liabilities | | Derivatives | $ | 1,554 | | | $ | (32) | | | $ | 1,522 | | | $ | (295) | | (2) | $ | (1) | | | $ | (943) | | | $ | 283 | | | | | | | | | | | | | | | | | As of December 31, 2021 | | | | | | | | Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | | | Gross Amounts of Recognized Liabilities | | Gross Amounts Offset in the Consolidated Balance Sheets | | Net Presented in the Consolidated Balance Sheets | | Financial Instruments | | Cash Collateral Pledged | | Non-Cash Collateral Pledged | | Net Liabilities | | Derivatives | $ | 619 | | | $ | (38) | | | $ | 581 | | | $ | (434) | | (2) | $ | (4) | | | $ | (110) | | | $ | 33 | |
(2) The balances as of December 31, 2020 and 2021 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements.
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