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Supplemental Financial Statement Information
 9 Months Ended
Sep. 30, 2017
Balance Sheet Components Disclosure [Abstract]  
Supplemental Financial Statement Information
Supplemental Financial Statement Information
Property and Equipment, Net
Property and equipment, net, consisted of the following (in millions):
 
As of
December 31, 2016
 
As of
September 30, 2017
 
 
 
(unaudited)
Land and buildings
$
19,804

 
$
22,367

Information technology assets
16,084

 
19,454

Construction in progress
8,166

 
10,280

Leasehold improvements
3,415

 
4,208

Furniture and fixtures
58

 
49

Property and equipment, gross
47,527

 
56,358

Less: accumulated depreciation and amortization
(13,293
)
 
(16,238
)
Property and equipment, net
$
34,234

 
$
40,120


As of September 30, 2017, assets under capital lease with a cost basis of $364 million were included in property and equipment.
Note Receivable
In connection with the sale of our Motorola Mobile business to Lenovo Group Limited (Lenovo) on October 29, 2014, we received an interest-free, three-year prepayable promissory note (Note Receivable) due October 2017. The Note Receivable was included on our Consolidated Balance Sheets in other current assets. Based on the general market conditions and the credit quality of Lenovo at the time of the sale, we discounted the Note Receivable at an effective interest rate of 4.5%. The Note Receivable was fully repaid in May 2017. The outstanding balances are shown in the table below (in millions):
 
As of
December 31, 2016
 
As of
September 30, 2017
 
 
 
(unaudited)
Principal of the Note Receivable
$
1,448

 
$
0

Less: unamortized discount for the Note Receivable
(51
)
 
0

Total
$
1,397

 
$
0


As of December 31, 2016, we did not recognize a valuation allowance on the Note Receivable.
Accrued expenses and other current liabilities
Accrued expenses and other current liabilities consisted of the following (in millions):
 
As of
December 31, 2016
 
As of
September 30, 2017
 
 
 
(unaudited)
European Commission fine(1)
$
0

 
$
2,844

Accrued customer liabilities
1,256

 
1,262

Other accrued expenses and current liabilities
4,888

 
5,201

Accrued expenses and other current liabilities
$
6,144

 
$
9,307


(1) 
Includes the effects of foreign exchange.
Accumulated Other Comprehensive Income (Loss)
The components of AOCI, net of tax, were as follows (in millions, unaudited):
 
Foreign Currency Translation Adjustments
 
Unrealized Gains (Losses) on Available-for-Sale Investments
 
Unrealized Gains (Losses) on Cash Flow Hedges
 
Total
Balance as of December 31, 2015
$
(2,047
)
 
$
(86
)
 
$
259

 
$
(1,874
)
Other comprehensive income (loss) before reclassifications
166

 
627

 
148

 
941

Amounts reclassified from AOCI
0

 
137

 
(236
)
 
(99
)
Other comprehensive income (loss)
166

 
764

 
(88
)
 
842

Balance as of September 30, 2016
$
(1,881
)
 
$
678

 
$
171

 
$
(1,032
)
 
Foreign Currency Translation Adjustments
 
Unrealized Gains (Losses) on Available-for-Sale Investments
 
Unrealized Gains (Losses) on Cash Flow Hedges
 
Total
Balance as of December 31, 2016
$
(2,646
)
 
$
(179
)
 
$
423

 
$
(2,402
)
Other comprehensive income (loss) before reclassifications
1,457

 
803

 
(668
)
 
1,592

Amounts reclassified from AOCI
0

 
98

 
(34
)
 
64

Other comprehensive income (loss)
1,457

 
901

 
(702
)
 
1,656

Balance as of September 30, 2017
$
(1,189
)
 
$
722

 
$
(279
)
 
$
(746
)

The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited):
 
 
 
 
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
 
September 30,
 
September 30,
 AOCI Components
 
Location
 
2016
 
2017
 
2016
 
2017
Unrealized gains (losses) on available-for-sale investments
 
 
 
 
 
 
 
 
 
 
Other income (expense), net
 
$
46

 
$
(47
)
 
$
(137
)
 
$
(98
)
 
 
Provision for income taxes
 
0

 
0

 
0

 
0

 
 
Net of tax
 
$
46

 
$
(47
)
 
$
(137
)
 
$
(98
)
Unrealized gains (losses) on cash flow hedges
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
Revenue
 
$
105

 
$
(191
)
 
$
352

 
$
29

Interest rate contracts
 
Other income (expense), net
 
1

 
1

 
4

 
4

 
 
Benefit (provision) for income taxes
 
(39
)
 
65

 
(120
)
 
1

 
 
Net of tax
 
$
67

 
$
(125
)
 
$
236

 
$
34

Total amount reclassified, net of tax
 
$
113

 
$
(172
)
 
$
99

 
$
(64
)

Other Income (Expense), Net
The components of other income (expense), net, were as follows (in millions, unaudited):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2016
 
2017
 
2016
 
2017
Interest income
$
318

 
$
306

 
$
895

 
$
912

Interest expense
(29
)
 
(27
)
 
(91
)
 
(73
)
Foreign currency exchange losses, net
(123
)
 
(53
)
 
(437
)
 
(101
)
Gain (loss) on marketable securities, net
50

 
(44
)
 
(126
)
 
(81
)
Gain (loss) on non-marketable investments, net
40

 
(32
)
 
(78
)
 
(79
)
Other
22

 
47

 
53

 
115

Other income (expense), net
$
278

 
$
197

 
$
216

 
$
693


Interest expense in the preceding table is net of interest capitalized of $0 million and $13 million for the three months ended September 30, 2016 and 2017, respectively, and $0 million and $32 million for the nine months ended September 30, 2016 and 2017, respectively.