Cash, cash equivalents, and marketable equity securities are measured at fair value and classified within Level 1 and Level 2 in the fair value hierarchy, because we use quoted prices for identical assets in active markets or inputs that are based upon quoted prices for similar instruments in active markets.

Debt securities are classified within Level 2 in the fair value hierarchy, because we use quoted market prices to the extent available or alternative pricing sources and models utilizing market observable inputs to determine fair value. For certain marketable debt securities, we have elected the fair value option for which changes in fair value are recorded in other income (expense), net. The fair value option was elected for these securities to align with the unrealized gains and losses from related derivative contracts.


		As of December 31, 2021
	Fair Value Hierarchy	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Fair value changes recorded in other comprehensive income
Time deposits(1)	Level 2	$	5,133	$	0	$	0	$	5,133	$	5,133	$	0
Government bonds	Level 2	53,288		258		(238)		53,308		5		53,303
Corporate debt securities	Level 2	35,605		194		(223)		35,576		12		35,564
Mortgage-backed and asset-backed securities	Level 2	18,829		96		(112)		18,813		0		18,813
Total investments with fair value change reflected in Other Comprehensive Income(2)		$	112,855	$	548	$	(573)	$	112,830	$	5,150	$	107,680
Fair value adjustments recorded in net income
Money market funds	Level 1							$	7,499	$	7,499	$	0
Current marketable equity securities(3)	Level 1							5,998		0		5,998
Mutual funds	Level 2							351		0		351
Government bonds	Level 2							1,165		0		1,165
Corporate debt securities	Level 2							2,503		0		2,503
Mortgage-backed and asset-backed securities	Level 2							1,007		0		1,007
Total investments with fair value change recorded in Net Income								$	18,523	$	7,499	$	11,024
Cash								0		8,296		0
Total		$	112,855	$	548	$	(573)	$	131,353	$	20,945	$	118,704


		As of December 31, 2022
	Fair Value Hierarchy	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Fair value changes recorded in other comprehensive income
Time deposits(1)	Level 2	$	5,297	$	0	$	0	$	5,297	$	5,293	$	4
Government bonds	Level 2	41,036		64		(2,045)		39,055		283		38,772
Corporate debt securities	Level 2	28,578		8		(1,569)		27,017		1		27,016
Mortgage-backed and asset-backed securities	Level 2	16,176		5		(1,242)		14,939		0		14,939
Total investments with fair value change reflected in Other Comprehensive Income(2)		$	91,087	$	77	$	(4,856)	$	86,308	$	5,577	$	80,731
Fair value adjustments recorded in net income
Money market funds	Level 1							$	7,234	$	7,234	$	0
Current marketable equity securities(3)	Level 1							4,013		0		4,013
Mutual funds	Level 2							339		0		339
Government bonds	Level 2							1,877		440		1,437
Corporate debt securities	Level 2							3,744		65		3,679
Mortgage-backed and asset-backed securities	Level 2							1,686		2		1,684
Total investments with fair value change recorded in Net Income								$	18,893	$	7,741	$	11,152
Cash								0		8,561		0
Total		$	91,087	$	77	$	(4,856)	$	105,201	$	21,879	$	91,883

Our non-marketable equity securities are investments in privately held companies without readily determinable market values. The carrying value of our non-marketable equity securities is adjusted to fair value upon observable transactions for identical or similar investments of the same issuer or impairment. Non-marketable equity securities that have been remeasured during the period based on observable transactions are classified within Level 2 or Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3.

During the year ended December 31, 2022, included in the $28.5 billion of non-marketable equity securities held as of the end of the period, $14.1 billion were measured at fair value and primarily classified as Level 2 investments.


	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)


	As of December 31, 2022
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government bonds	$	21,039	$	(1,004)	$	13,438	$	(1,041)	$	34,477	$	(2,045)
Corporate debt securities	11,228		(440)		15,125		(1,052)		26,353		(1,492)
Mortgage-backed and asset-backed securities	7,725		(585)		6,964		(657)		14,689		(1,242)
Total	$	39,992	$	(2,029)	$	35,527	$	(2,750)	$	75,519	$	(4,779)

We determine realized gains or losses on the sale or extinguishment of debt securities on a specific identification method.The following table summarizes gains and losses for debt securities, reflected as a component of other income (expense), net (in millions):


	Year Ended December 31,
	2020		2021		2022
Unrealized gain (loss) on fair value option debt securities(1)	$	86	$	(122)	$	(557)
Gross realized gain on debt securities	899		432		103
Gross realized loss on debt securities	(184)		(329)		(1,588)
(Increase)/decrease in allowance for credit losses	(76)		(91)		(22)
Total gain (loss) on debt securities recognized in other income (expense), net	$	725	$	(110)	$	(2,064)

(1)Accumulated unrealized net gains (losses) related to debt securities still held where we have elected the fair value option were $87 million, $(35) million, and $(592) million as of December 31, 2020, 2021, and 2022, respectively.

The carrying value of equity securities is measured as the total initial cost plus the cumulative net gain (loss). Our share of gains and losses, including impairments, are included as a component of other income (expense), net, in the Consolidated Statements of Income. See Note 7 for further details on other income (expense), net.


	As of December 31, 2021						As of December 31, 2022
	Marketable Equity Securities		Non-Marketable Equity Securities		Total		Marketable Equity Securities		Non-Marketable Equity Securities		Total
Total initial cost	$	4,211	$	15,135	$	19,346	$	5,764	$	16,157	$	21,921
Cumulative net gain (loss)(1)	3,587		12,436		16,023		(608)		12,372		11,764
Carrying value	$	7,798	$	27,571	$	35,369	$	5,156	$	28,529	$	33,685

(1)Non-marketable equity securities cumulative net gain (loss) is comprised of $14.1 billion gains and $1.7 billion losses (including impairments) as of December 31, 2021 and $16.8 billion gains and $4.5 billion losses (including impairments) as of December 31, 2022.


	Year Ended December 31,
	2020		2021		2022
Realized net gain (loss) on equity securities sold during the period	$	1,339	$	1,196	$	(442)
Unrealized net gain (loss) on marketable equity securities	2,722		1,335		(3,242)
Unrealized net gain (loss) on non-marketable equity securities(1)	1,531		9,849		229
Total gain (loss) on equity securities in other income (expense), net	$	5,592	$	12,380	$	(3,455)

(1)Unrealized gain (loss) on non-marketable equity securities accounted for under the measurement alternative is comprised of $3.0 billion, $10.0 billion, and $3.3 billion of upward adjustments as of December 31, 2020, 2021, and 2022, respectively, and $1.5 billion, $122 million, and $3.0 billion of downward adjustments (including impairments) as of December 31, 2020, 2021, and 2022, respectively.

In the table above, realized net gain (loss) on equity securities sold during the period reflects the difference between the sale proceeds and the carrying value of the equity securities at the beginning of the period or the purchase date, if later.

Cumulative net gains (losses) on equity securities sold during the period, which is summarized in the following table (in millions), represents the total net gains (losses) recognized after the initial purchase date of the equity security sold during the period. While these net gains (losses) may have been reflected in periods prior to the period of sale, we believe they are important supplemental information as they reflect the economic net gains (losses) on the securities sold during the period. Cumulative net gains (losses) are calculated as the difference between the sale price and the initial purchase price for the equity security sold during the period.

(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.

As of December 31, 2021 and 2022, equity securities accounted for under the equity method had a carrying value of approximately $1.5 billion for both years. Our share of gains and losses, including impairments, are included as a component of other income (expense), net, in the Consolidated Statements of Income. See Note 7 for further details on other income (expense), net.

We use derivative instruments to manage risks relating to our ongoing business operations. The primary risk managed is foreign exchange risk. We use foreign currency contracts to reduce the risk that our cash flows, earnings, and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We also enter into derivative instruments to partially offset our exposure to other risks and enhance investment returns.

We recognize derivative instruments in the Consolidated Balance Sheets at fair value and classify the derivatives primarily within Level 2 in the fair value hierarchy. We present our collar contracts (an option strategy comprised of a combination of purchased and written options) at net fair values and present all other derivatives at gross fair values. The accounting treatment for derivatives is based on the intended use and hedge designation.

We designate foreign currency forward and option contracts (including collars) as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. These contracts have maturities of 24 months or less.

Cash flow hedge amounts included in the assessment of hedge effectiveness are deferred in AOCI and subsequently reclassified to revenue when the hedged item is recognized in earnings. We exclude forward points and time value from our assessment of hedge effectiveness and amortize them on a straight-line basis over the life of the hedging instrument in revenues. The difference between fair value changes of the excluded component and the amount amortized to revenues is recorded in AOCI.

We designate foreign currency forward contracts as fair value hedges to hedge foreign currency risks for our marketable securities denominated in currencies other than the U.S. dollar. Fair value hedge amounts included in the assessment of hedge effectiveness are recognized in other income (expense), net, along with the offsetting gains and losses of the related hedged items. We exclude forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in other income (expense), net.

We designate foreign currency forward contracts as net investment hedges to hedge the foreign currency risks related to our investment in foreign subsidiaries. Net investment hedge amounts included in the assessment of hedge effectiveness are recognized in AOCI along with the foreign currency translation adjustment. We exclude forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in other income (expense), net.

We enter into foreign currency forward and option contracts that are not designated as hedging instruments to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. Gains and losses on these derivatives that are not designated as accounting hedges are primarily recorded in other income (expense), net along with the foreign currency gains and losses on monetary assets and liabilities.

We also use derivatives not designated as hedging instruments to manage risks relating to interest rates, commodity prices, credit exposures, and to enhance investment returns. From time to time, we enter into derivatives to hedge the market price risk on certain of our marketable equity securities. Gains and losses arising from other derivatives are primarily reflected within the “other” component of other income (expense), net. See Note 7 for further details.


	As of December 31,
	2021		2022

Derivatives designated as hedging instruments:
Foreign exchange contracts
Cash flow hedges	$	16,362	$	15,972
Fair value hedges	$	2,556	$	2,117
Net investment hedges	$	10,159	$	8,751
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	41,031	$	34,979
Other contracts	$	4,275	$	7,932


	As of December 31, 2021				As of December 31, 2022
	Assets(1)		Liabilities(2)		Assets(1)		Liabilities(2)
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	867	$	8	$	271	$	556

Derivatives not designated as hedging instruments:
Foreign exchange contracts	42		452		365		207
Other contracts	52		121		40		47
Total derivatives not designated as hedging instruments	94		573		405		254
Total	$	961	$	581	$	676	$	810


	Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect
	Year Ended December 31,
	2020		2021		2022
Derivatives in cash flow hedging relationship:
Foreign exchange contracts
Amount included in the assessment of effectiveness	$	102	$	806	$	1,699
Amount excluded from the assessment of effectiveness	(37)		48		(188)
Derivatives in net investment hedging relationship:
Foreign exchange contracts
Amount included in the assessment of effectiveness	(851)		754		608
Total	$	(786)	$	1,608	$	2,119


	Gains (Losses) Recognized in Income
	Year Ended December 31,
	2020				2021				2022
	Revenues		Other income (expense), net		Revenues		Other income (expense), net		Revenues		Other income (expense), net
Total amounts in the Consolidated Statements of Income	$	182,527	$	6,858	$	257,637	$	12,020	$	282,836	$	(3,514)

Effect of cash flow hedges:
Foreign exchange contracts
Amount reclassified from AOCI to income	$	144	$	0	$	165	$	0	$	2,046	$	0
Amount excluded from the assessment of effectiveness (amortized)	33		0		(16)		0		(85)		0

Effect of fair value hedges:
Foreign exchange contracts
Hedged items	0		18		0		(95)		0		(162)
Derivatives designated as hedging instruments	0		(18)		0		95		0		163
Amount excluded from the assessment of effectiveness	0		4		0		8		0		16
Effect of net investment hedges:
Foreign exchange contracts
Amount excluded from the assessment of effectiveness	0		151		0		82		0		171
Effect of non designated hedges:
Foreign exchange contracts	0		718		0		(860)		0		(395)
Other contracts	0		(906)		0		101		0		144
Total gains (losses)	$	177	$	(33)	$	149	$	(669)	$	1,961	$	(63)

We enter into master netting arrangements and collateral security arrangements to reduce credit risk. Cash collateral received related to derivative instruments under our collateral security arrangements are included in other current assets with a corresponding liability. Cash and non-cash collateral pledged related to derivative instruments under our collateral security arrangements are included in other current assets.


	As of December 31, 2021
							Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments(1)		Cash and Non-Cash Collateral Received or Pledged		Net Amounts
Derivatives assets	$	999	$	(38)	$	961	$	(434)	$	(406)	$	121
Derivatives liabilities	$	619	$	(38)	$	581	$	(434)	$	(114)	$	33

	As of December 31, 2022
							Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments(1)		Cash and Non-Cash Collateral Received or Pledged		Net Amounts
Derivatives assets	$	760	$	(84)	$	676	$	(463)	$	(132)	$	81
Derivatives liabilities	$	894	$	(84)	$	810	$	(463)	$	(28)	$	319