Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair values of our outstanding derivative instruments were as follows (in millions):


	Balance Sheet Location	Fair Value of Derivative Instruments
	Balance Sheet Location	As of December 31, 2010		As of December 31, 2011
Derivative Assets
Derivatives designated as hedging instruments:
Foreign exchange contracts	Prepaid revenue share, expenses and other assets, current and non-current	$	342	$	333
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Prepaid revenue share, expenses and other assets, current		0		4

Total		$	342	$	337

Derivative Liabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts	Accrued expenses and other current liabilities	$	5	$	5
Derivatives not designated as hedging instruments:
Foreign exchange contracts	Accrued expenses and other current liabilities		3		1

Total		$	8	$	6

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income is summarized below (in millions):


	Increase (Decrease) in Gains Recognized in AOCI on Derivatives Before Tax Effect (Effective Portion)
	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationship	2009			2010		2011
Foreign exchange contracts	$	(14	)	$	331	$	54


	Gains Reclassified from AOCI into Income (Effective Portion)
		Year Ended December 31,
Derivatives in Cash Flow Hedging Relationship	Location	2009		2010		2011
Foreign exchange contracts	Revenues	$	325	$	203	$	43


	Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion)⁽¹⁾
		Year Ended December 31,
Derivatives in Cash Flow Hedging Relationship	Location	2009			2010			2011
Foreign exchange contracts	Interest and other income, net	$	(268	)	$	(320	)	$	(323	)

¹	Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented.

The effect of derivative instruments in fair value hedging relationships on income is summarized below (in millions):


	Gains (Losses) Recognized in Income on Derivatives⁽²⁾
		Year Ended December 31,
Derivatives in Fair Value Hedging Relationship	Location	2009			2010			2011
Foreign exchange contracts	Interest and other income, net	$	2		$	(35	)	$	(2	)
Hedged item	Interest and other income, net		(2	)		29			(12	)

Total		$	0		$	(6	)	$	(14	)

²	Losses related to the amount excluded from effectiveness testing of the hedges were $0, $6 million, and $14 million for the years ended December 31, 2009, December 31, 2010, and December 31, 2011.

The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions):


	Gains (Losses) Recognized in Income on Derivatives
		Year Ended December 31,
Derivatives Not Designated As Hedging Instruments	Location	2009			2010			2011
Foreign exchange contracts	Interest and other income, net	$	(78	)	$	(40	)	$	29
Interest rate contracts	Interest and other income, net		0			0			(19	)

		$	(78	)	$	(40	)	$	10

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details