v3.22.4
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Marketable equity securities
The following tables summarize our cash, cash equivalents, and marketable securities measured at fair value on a recurring basis (in millions):
As of December 31, 2021
Fair Value HierarchyAdjusted CostGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities
Fair value changes recorded in other comprehensive income
Time deposits(1)
Level 2$5,133 $0 $0 $5,133 $5,133 $0 
Government bondsLevel 253,288258 (238)53,308 5 53,303 
Corporate debt securitiesLevel 235,605194 (223)35,576 12 35,564 
Mortgage-backed and asset-backed securitiesLevel 218,82996 (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 fundsLevel 1$7,499 $7,499 $0 
Current marketable equity securities(3)
Level 15,998 0 5,998 
Mutual fundsLevel 2351 0 351 
Government bondsLevel 21,165 0 1,165 
Corporate debt securitiesLevel 22,503 0 2,503 
Mortgage-backed and asset-backed securitiesLevel 21,007 0 1,007 
Total investments with fair value change recorded in Net Income$18,523 $7,499 $11,024 
Cash0 8,296 0 
Total$112,855 $548 $(573)$131,353 $20,945 $118,704 
(1)The majority of our time deposits are domestic deposits.
(2)Represents gross unrealized gains and losses for debt securities recorded to AOCI.
(3)The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $1.4 billion as of December 31, 2021 is included within other non-current assets.
As of December 31, 2022
Fair Value HierarchyAdjusted CostGross Unrealized GainsGross Unrealized LossesFair ValueCash and Cash EquivalentsMarketable Securities
Fair value changes recorded in other comprehensive income
Time deposits(1)
Level 2$5,297 $0 $0 $5,297 $5,293 $4 
Government bondsLevel 241,036 64 (2,045)39,055 283 38,772 
Corporate debt securitiesLevel 228,578 8 (1,569)27,017 1 27,016 
Mortgage-backed and asset-backed securitiesLevel 216,176 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 fundsLevel 1$7,234 $7,234 $0 
Current marketable equity securities(3)
Level 14,0130 4,013
Mutual fundsLevel 23390 339
Government bondsLevel 21,877440 1,437
Corporate debt securitiesLevel 23,74465 3,679
Mortgage-backed and asset-backed securitiesLevel 21,6862 1,684
Total investments with fair value change recorded in Net Income$18,893 $7,741 $11,152 
Cash0 8,561 0 
Total$91,087 $77 $(4,856)$105,201 $21,879 $91,883 
(1)The majority of our time deposits are domestic deposits.
(2)Represents gross unrealized gains and losses for debt securities recorded to AOCI.
(3)The long-term portion of marketable equity securities (subject to long-term lock-up restrictions) of $803 million as of December 31, 2022 is included within other non-current assets.
Available-for-sale debt securities 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,
 202020212022
Unrealized gain (loss) on fair value option debt securities(1)
$86 $(122)$(557)
Gross realized gain on debt securities899 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.
Investments by maturity date
The following table summarizes the estimated fair value of investments in available-for-sale marketable debt securities by effective contractual maturity dates (in millions):
As of December 31, 2022
Due in 1 year or less$8,170 
Due in 1 year through 5 years51,698 
Due in 5 years through 10 years16,083 
Due after 10 years11,580 
Total$87,531 
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following tables present fair values and gross unrealized losses recorded to AOCI, 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, 2021
 Less than 12 Months12 Months or GreaterTotal
 Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss
Government bonds$32,843 $(236)$71 $(2)$32,914 $(238)
Corporate debt securities22,737 (152)303 (5)23,040 (157)
Mortgage-backed and asset-backed securities11,502 (106)248 (6)11,750 (112)
Total$67,082 $(494)$622 $(13)$67,704 $(507)
 As of December 31, 2022
 Less than 12 Months12 Months or GreaterTotal
 Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss
Government bonds$21,039 $(1,004)$13,438 $(1,041)$34,477 $(2,045)
Corporate debt securities11,228 (440)15,125 (1,052)26,353 (1,492)
Mortgage-backed and asset-backed securities7,725 (585)6,964 (657)14,689 (1,242)
Total$39,992 $(2,029)$35,527 $(2,750)$75,519 $(4,779)
Carrying Value Of Marketable And Non-Marketable Equity Securities
The carrying values for marketable and non-marketable equity securities are summarized below (in millions):

As of December 31, 2021As of December 31, 2022
Marketable Equity SecuritiesNon-Marketable Equity SecuritiesTotalMarketable Equity SecuritiesNon-Marketable Equity SecuritiesTotal
Total initial cost$4,211 $15,135 $19,346 $5,764 $16,157 $21,921 
Cumulative net gain (loss)(1)
3,58712,436 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.
Gains and losses on equity securities
Gains and losses (including impairments), net, for marketable and non-marketable equity securities included in other income (expense), net are summarized below (in millions):
Year Ended December 31,
 202020212022
Realized net gain (loss) on equity securities sold during the period$1,339 $1,196 $(442)
Unrealized net gain (loss) on marketable equity securities2,722 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.
Cumulative Net Gain (Loss) On Equity Securities Sold
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.
Equity Securities Sold During the Year Ended December 31,
 20212022
Total sale price$5,604 $1,784 
Total initial cost1,206 937 
Cumulative net gains (losses)(1)
$4,398 $847 
(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.
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,
20212022
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 
Schedule of derivative instruments
The fair values of outstanding derivative instruments were as follows (in millions):
 As of December 31, 2021As 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 contracts42 452 365 207 
     Other contracts52 121 40 47 
Total derivatives not designated as hedging instruments94 573 405 254 
Total$961 $581 $676 $810 
(1)    Derivative assets are recorded as other current and non-current assets in the Consolidated Balance Sheets.
(2)    Derivative liabilities are recorded as accrued expenses and other liabilities, current and non-current in the Consolidated Balance Sheets.
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) are summarized below (in millions):
 Gains (Losses) Recognized in OCI
on Derivatives Before Tax Effect
 Year Ended December 31,
202020212022
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 
The table below presents the gains (losses) of our derivatives on the Consolidated Statements of Income: (in millions):
 Gains (Losses) Recognized in Income
Year Ended December 31,
202020212022
RevenuesOther income (expense), netRevenuesOther income (expense), netRevenuesOther 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 items0 18 0 (95)0 (162)
Derivatives designated as hedging instruments0 (18)0 95 0 163 
Amount excluded from the assessment of effectiveness0 4 0 8 0 16 
Effect of net investment hedges:
Foreign exchange contracts
Amount excluded from the assessment of effectiveness0 151 0 82 0 171 
Effect of non designated hedges:
Foreign exchange contracts0 718 0(860)0 (395)
Other contracts0 (906)0 101 0 144 
Total gains (losses)
$177 $(33)$149 $(669)$1,961 $(63)
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):
As of December 31, 2021
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset
Gross Amounts RecognizedGross Amounts Offset in the Consolidated Balance SheetsNet Amounts Presented in the Consolidated Balance Sheets
Financial Instruments(1)
Cash and Non-Cash Collateral Received or PledgedNet 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 SheetsNet Amounts Presented in the Consolidated Balance Sheets
Financial Instruments(1)
Cash and Non-Cash Collateral Received or PledgedNet Amounts
Derivatives assets$760 $(84)$676 $(463)$(132)$81 
Derivatives liabilities$894 $(84)$810 $(463)$(28)$319 
(1)    The balances as of December 31, 2021 and 2022 were related to derivatives allowed to be net settled in accordance with our master netting agreements.
Offsetting liabilities
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):
As of December 31, 2021
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset
Gross Amounts RecognizedGross Amounts Offset in the Consolidated Balance SheetsNet Amounts Presented in the Consolidated Balance Sheets
Financial Instruments(1)
Cash and Non-Cash Collateral Received or PledgedNet 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 SheetsNet Amounts Presented in the Consolidated Balance Sheets
Financial Instruments(1)
Cash and Non-Cash Collateral Received or PledgedNet Amounts
Derivatives assets$760 $(84)$676 $(463)$(132)$81 
Derivatives liabilities$894 $(84)$810 $(463)$(28)$319 
(1)    The balances as of December 31, 2021 and 2022 were related to derivatives allowed to be net settled in accordance with our master netting agreements.