Supplemental Financial Statement Information

12 Months Ended

Dec. 31, 2020

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, 2019		As of December 31, 2020
Land and buildings	$	39,865	$	49,732
Information technology assets	36,840		45,906
Construction in progress	21,036		23,111
Leasehold improvements	6,310		7,516
Furniture and fixtures	156		197
Property and equipment, gross	104,207		126,462
Less: accumulated depreciation	(30,561)		(41,713)
Property and equipment, net	$	73,646	$	84,749

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following (in millions):

	As of December 31, 2019		As of December 31, 2020
European Commission fines(1)	$	9,405	$	10,409
Accrued customer liabilities	2,245		3,118
Accrued purchases of property and equipment	2,411		2,197
Current operating lease liabilities	1,199		1,694
Other accrued expenses and current liabilities	7,807		11,213
Accrued expenses and other current liabilities	$	23,067	$	28,631

(1)    Includes the effects of foreign exchange and interest. See Note 10 for further details.

Accumulated Other Comprehensive Income (Loss)

The components of AOCI, net of tax, were as follows (in millions):

	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, 2017	$	(1,103)	$	233	$	(122)	$	(992)
Cumulative effect of accounting change	0		(98)		0		(98)
Other comprehensive income (loss) before reclassifications	(781)		88		264		(429)
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI	0		0		26		26
Amounts reclassified from AOCI	0		(911)		98		(813)
Other comprehensive income (loss)	(781)		(823)		388		(1,216)
Balance as of December 31, 2018	(1,884)		(688)		266		(2,306)
Cumulative effect of accounting change	0		0		(30)		(30)
Other comprehensive income (loss) before reclassifications	(119)		1,611		36		1,528
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI	0		0		(14)		(14)
Amounts reclassified from AOCI	0		(111)		(299)		(410)
Other comprehensive income (loss)	(119)		1,500		(277)		1,104
Balance as of December 31, 2019	(2,003)		812		(41)		(1,232)
Other comprehensive income (loss) before reclassifications	1,139		1,313		79		2,531
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI	0		0		(37)		(37)
Amounts reclassified from AOCI	0		(513)		(116)		(629)
Other comprehensive income (loss)	1,139		800		(74)		1,865
Balance as of December 31, 2020	$	(864)	$	1,612	$	(115)	$	633

The effects on net income of amounts reclassified from AOCI were as follows (in millions):

		Gains (Losses) Reclassified from AOCI to the Consolidated Statements of Income
		Year Ended December 31,
AOCI Components	Location	2018		2019		2020
Unrealized gains (losses) on available-for-sale investments
	Other income (expense), net	$	1,190	$	149	$	650
	Benefit (provision) for income taxes	(279)		(38)		(137)
	Net of tax	911		111		513
Unrealized gains (losses) on cash flow hedges
Foreign exchange contracts	Revenue	(139)		367		144
Interest rate contracts	Other income (expense), net	6		6		6
	Benefit (provision) for income taxes	35		(74)		(34)
	Net of tax	(98)		299		116
Total amount reclassified, net of tax		$	813	$	410	$	629

Other Income (Expense), Net

The components of other income (expense), net, were as follows (in millions): 

	Year Ended December 31,
	2018		2019		2020
Interest income	$	1,878	$	2,427	$	1,865
Interest expense(1)	(114)		(100)		(135)
Foreign currency exchange gain (loss), net (2)	(80)		103		(344)
Gain (loss) on debt securities, net(3)	1,190		149		725
Gain (loss) on equity securities, net	5,460		2,649		5,592
Performance fees	(1,203)		(326)		(609)
Income (loss) and impairment from equity method investments, net	(120)		390		401
Other(4)	378		102		(637)
Other income (expense), net	$	7,389	$	5,394	$	6,858

(1)    Interest expense is net of interest capitalized of $92 million, $167 million, and $218 million for the years ended December 31, 2018, 2019, and 2020, respectively.

(2)    Our foreign currency exchange gain (loss), net, is primarily related to the forward points for our foreign currency hedging contracts and foreign exchange transaction gains and losses from the conversion of the transaction currency to the functional currency, offset by the foreign currency hedging contracts' losses and gains.

(3)    During the year ended December 31, 2018, the terms of a non-marketable debt security were modified resulting in an unrealized $1.3 billion gain.

(4)    During the year ended December 31, 2020, we entered into derivatives that hedged the changes in fair value of certain marketable equity securities, which resulted in a $902 million loss. The offsetting recognized gains on the marketable equity securities are reflected in Gain (loss) on equity securities, net.