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Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Available-for-sale debt securities The following tables summarize our debt securities by significant investment categories as of December 31, 2018 and March 31, 2019 (in millions):
 
As of December 31, 2018
 
Adjusted
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Cash and Cash
Equivalents
 
Marketable
Securities
Level 2:
 
 
 
 
 
 
 
 
 
 
 
Time deposits(1)
$
2,202

 
$
0

 
$
0

 
$
2,202

 
$
2,202

 
$
0

Government bonds
53,634

 
71

 
(414
)
 
53,291

 
3,717

 
49,574

Corporate debt securities
25,383

 
15

 
(316
)
 
25,082

 
44

 
25,038

Mortgage-backed and asset-backed securities
16,918

 
11

 
(324
)
 
16,605

 
0

 
16,605

Total
$
98,137

 
$
97

 
$
(1,054
)
 
$
97,180

 
$
5,963

 
$
91,217

 
As of March 31, 2019
 
Adjusted
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Cash and Cash
Equivalents
 
Marketable
Securities
 
(unaudited)
Level 2:
 
 
 
 
 
 
 
 
 
 
 
Time deposits(1)
$
2,612

 
$
0

 
$
0

 
$
2,612

 
$
2,598

 
$
14

Government bonds
54,291

 
195

 
(206
)
 
54,280

 
4,114

 
50,166

Corporate debt securities
25,482

 
128

 
(109
)
 
25,501

 
8

 
25,493

Mortgage-backed and asset-backed securities
16,465

 
36

 
(188
)
 
16,313

 
0

 
16,313

Total
$
98,850

 
$
359

 
$
(503
)
 
$
98,706

 
$
6,720

 
$
91,986

(1) 
The majority of our time deposits are domestic deposits.
Investments by maturity date The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions, unaudited):
 
As of
March 31, 2019
Due in 1 year
$
21,969

Due in 1 year through 5 years
57,477

Due in 5 years through 10 years
2,522

Due after 10 years
10,018

Total
$
91,986
Schedule of unrealized loss on debt securities The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2018 and March 31, 2019, 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, 2018
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
Government bonds
$
12,019

 
$
(85
)
 
$
23,877

 
$
(329
)
 
$
35,896

 
$
(414
)
Corporate debt securities
10,171

 
(107
)
 
11,545

 
(209
)
 
21,716

 
(316
)
Mortgage-backed and asset-backed securities
5,534

 
(75
)
 
8,519

 
(249
)
 
14,053

 
(324
)
Total
$
27,724

 
$
(267
)
 
$
43,941

 
$
(787
)
 
$
71,665

 
$
(1,054
)
 
As of March 31, 2019
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
 
(unaudited)
Government bonds
$
1,089

 
$
(1
)
 
$
24,177

 
$
(205
)
 
$
25,266

 
$
(206
)
Corporate debt securities
1,503

 
(5
)
 
13,503

 
(104
)
 
15,006

 
(109
)
Mortgage-backed and asset-backed securities
899

 
(2
)
 
10,361

 
(186
)
 
11,260

 
(188
)
Total
$
3,491

 
$
(8
)
 
$
48,041

 
$
(495
)
 
$
51,532

 
$
(503
)
Marketable equity securities The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2018 and March 31, 2019 (in millions):
 
As of December 31, 2018
 
Cash and Cash Equivalents
 
Marketable
Securities
Level 1:
 
 
 
Money market funds
$
3,493

 
$
0

Marketable equity securities
0

 
994

 
3,493

 
994

Level 2:
 
 
 
Mutual funds
0

 
228

Total
$
3,493

 
$
1,222


 
 
As of March 31, 2019
 
 
(unaudited)
 
 
Cash and Cash Equivalents
 
Marketable Securities
Level 1:
 
 
 
 
Money market funds
 
$
6,452

 
$
0

Marketable equity securities(1)
 
0

 
2,115

 
 
6,452

 
2,115

Level 2:
 
 
 
 
Mutual funds
 
0

 
239

Total
 
$
6,452

 
$
2,354


(1) 
Includes an investment that was reclassified from non-marketable equity securities following the initial public offering of the issuer.
Summary of unrealized gains and losses for non-marketable equity securities The following is a summary of unrealized gains and losses recorded in other income (expense), net, and included as adjustments to the carrying value of non-marketable equity securities (in millions, unaudited):
 
Three Months Ended
 
March 31,
 
2018
 
2019
Unrealized gains
$
2,511

 
$
456

Unrealized losses (including impairment)
(23
)
 
(66
)
Total unrealized gain (loss) for non-marketable equity securities
$
2,488

 
$
390


The following table summarizes the total carrying value of our non-marketable equity securities held as of March 31, 2019 including cumulative unrealized gains and losses (in millions, unaudited):
Initial cost basis
 
$
8,561

Unrealized gains
 
4,634

Unrealized losses (including impairment)
 
(248
)
Total carrying value at the end of the period
 
$
12,947
Gains and losses on equity securities Gains and losses for our marketable and non-marketable equity securities are summarized below (in millions, unaudited):
 
Three Months Ended
 
March 31,
 
2018
 
2019
Net gain (loss) on equity securities sold during the period
$
387

 
$
42

Unrealized gain (loss) on equity securities held as of the end of the period(1)
2,644

 
1,041

Total gain (loss) recognized in other income (expense), net
$
3,031

 
$
1,083


(1) 
Includes $2,488 million and $390 million related to non-marketable equity securities for the three months ended March 31, 2018 and 2019, respectively.
Schedule of derivative instruments The fair values of our outstanding derivative instruments were as follows (in millions):
 
 
 
As of December 31, 2018
  
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
 
$
459

 
$
54

 
$
513

Total
 
 
$
459

 
$
54

 
$
513

Derivative Liabilities:
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
Foreign exchange contracts
Accrued expenses and other liabilities, current and non-current
 
$
5

 
$
228

 
$
233

Total
 
 
$
5

 
$
228

 
$
233

 
 
 
As of March 31, 2019
  
Balance Sheet Location
 
Fair Value of
Derivatives
Designated as
Hedging Instruments
 
Fair Value of
Derivatives Not
Designated as
Hedging Instruments
 
Total Fair Value
 
 
 
(unaudited)
Derivative Assets:
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
Foreign exchange contracts
Other current and non-current assets
 
$
475

 
$
15

 
$
490

Total
 
 
$
475

 
$
15

 
$
490

Derivative Liabilities:
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
Foreign exchange contracts
Accrued expenses and other liabilities, current and non-current
 
$
13

 
$
348

 
$
361

Total
 
 
$
13

 
$
348

 
$
361
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, unaudited):
 
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect
 
Three Months Ended
 
March 31,

2018
 
2019
Derivatives in Cash Flow Hedging Relationship:
 
 
 
Foreign exchange contracts
 
 
 
Amount included in the assessment of effectiveness
$
(319
)
 
$
(6
)
Amount excluded from the assessment of effectiveness
(7
)
 
(30
)
Derivatives in Net Investment Hedging Relationship:
 
 
 
Foreign exchange contracts
 
 
 
Amount included in the assessment of effectiveness
0

 
64

Total
$
(326
)
 
$
28

 
The effect of derivative instruments on income is summarized below (in millions, unaudited):
 
Gains (Losses) Recognized in Income
 
Three Months Ended
 
March 31,
 
2018
 
2019
 
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
$
31,146

 
$
2,910

 
$
36,339

 
$
1,538

 
 
 
 
 
 
 
 
Gains (Losses) on Derivatives in Cash Flow Hedging Relationship:
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
Amount of gains (losses) reclassified from AOCI to income
$
(247
)
 
$
0

 
$
128

 
$
0

Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach
8

 
0

 
9

 
0

Gains (Losses) on Derivatives in Fair Value Hedging Relationship:
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
Hedged items
0

 
113

 
0

 
22

Derivatives designated as hedging instruments
0

 
(113
)
 
0

 
(22
)
Amount excluded from the assessment of effectiveness
0

 
11

 
0

 
10

Gains (Losses) on Derivatives in Net Investment Hedging Relationship:
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
Amount excluded from the assessment of effectiveness
0

 
0

 
0

 
54

Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
0

 
(100
)
 
0

 
(249
)
Total gains (losses)
$
(239
)
 
$
(89
)
 
$
137

 
$
(185
)
Offsetting assets As of December 31, 2018 and March 31, 2019, information related to these offsetting arrangements were as follows (in millions):
Offsetting of Assets
 
As of December 31, 2018
 
 
 
 
 
 
 
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
$
569

 
$
(56
)
 
$
513

 
$
(90
)
(1) 
$
(307
)
 
$
(14
)
 
$
102

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2019
 
 
 
 
 
 
 
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
 
(unaudited)
Derivatives
$
529

 
$
(39
)
 
$
490

 
$
(85
)
(1) 
$
(399
)
 
$
(2
)
 
$
4

(1) 
The balances as of December 31, 2018 and March 31, 2019 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements.
Offsetting liabilities Offsetting of Liabilities
 
As of December 31, 2018
 
 
 
 
 
 
 
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
$
289

 
$
(56
)
 
$
233

 
$
(90
)
(2) 
$
0

 
$
0

 
$
143

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31, 2019
 
 
 
 
 
 
 
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
 
(unaudited)
Derivatives
$
400

 
$
(39
)
 
$
361

 
$
(85
)
(2) 
$
0

 
$
0

 
$
276

(2) 
The balances as of December 31, 2018 and March 31, 2019 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements.