Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Available-for-sale debt securities

The following tables summarize our debt securities, for which we did not elect the fair value option, by significant investment categories as of December 31, 2019 and 2020 (in millions):

	As of December 31, 2019
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Level 2:
Time deposits(1)	$	2,294	$	0	$	0	$	2,294	$	2,294	$	0
Government bonds	55,033		434		(30)		55,437		4,518		50,919
Corporate debt securities	27,164		337		(3)		27,498		44		27,454
Mortgage-backed and asset-backed securities	19,453		96		(41)		19,508		0		19,508
Total	$	103,944	$	867	$	(74)	$	104,737	$	6,856	$	97,881

	As of December 31, 2020
	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Level 2:
Time deposits(1)	$	3,564	$	0	$	0	$	3,564	$	3,564	$	0
Government bonds	55,156		793		(9)		55,940		2,527		53,413
Corporate debt securities	31,521		704		(2)		32,223		8		32,215
Mortgage-backed and asset-backed securities	16,767		364		(7)		17,124		0		17,124
Total	$	107,008	$	1,861	$	(18)	$	108,851	$	6,099	$	102,752

(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 by stated contractual maturity dates (in millions):

	As of December 31, 2020
Due in 1 year or less	$	19,795
Due in 1 year through 5 years	69,228
Due in 5 years through 10 years	2,739
Due after 10 years	13,038
Total	$	104,800

Schedule of unrealized loss on debt securities

The following tables present fair values and gross unrealized losses recorded to AOCI as of December 31, 2019 and 2020, 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, 2019
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government bonds	$	6,752	$	(20)	$	4,590	$	(10)	$	11,342	$	(30)
Corporate debt securities	1,665		(2)		978		(1)		2,643		(3)
Mortgage-backed and asset-backed securities	4,536		(13)		2,835		(28)		7,371		(41)
Total	$	12,953	$	(35)	$	8,403	$	(39)	$	21,356	$	(74)

	As of December 31, 2020
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government bonds	$	5,516	$	(9)	$	3	$	0	$	5,519	$	(9)
Corporate debt securities	1,999		(1)		0		0		1,999		(1)
Mortgage-backed and asset-backed securities	929		(5)		242		(2)		1,171		(7)
Total	$	8,444	$	(15)	$	245	$	(2)	$	8,689	$	(17)

Gains and losses on equity securities

Gains and losses reflected in other income (expense), net, for our marketable and non-marketable equity securities are summarized below (in millions):

	Year Ended December 31,
	2019		2020
Net gain (loss) on equity securities sold during the period	$	(301)	$	1,339
Net unrealized gain (loss) on equity securities held as of the end of the period	2,950		4,253
Total gain (loss) recognized in other income (expense), net	$	2,649	$	5,592

Cumulative net gains on equity securities sold

	Equity Securities Sold During the Year Ended December 31,
	2019		2020
Total sale price	$	3,134	$	4,767
Total initial cost	858		2,674
Cumulative net gains (losses)	$	2,276	$	2,093

Summary of unrealized gains and losses for non-marketable equity securities

The carrying values for our marketable and non-marketable equity securities are summarized below (in millions):

	As of December 31, 2019
	Marketable Equity Securities		Non-Marketable Equity Securities		Total
Total initial cost	$	1,935	$	8,297	$	10,232
Cumulative net gain (loss)(1)	1,361		3,056		4,417
Carrying value	$	3,296	$	11,353	$	14,649

(1)Non-marketable equity securities cumulative net gain (loss) is comprised of $3.5 billion unrealized gains and $445 million unrealized losses (including impairment).

	As of December 31, 2020
	Marketable Equity Securities		Non-Marketable Equity Securities		Total
Total initial cost	$	2,227	$	14,616	$	16,843
Cumulative net gain (loss)(1)	3,631		4,277		7,908
Carrying value(2)	$	5,858	$	18,893	$	24,751

(1)Non-marketable equity securities cumulative net gain (loss) is comprised of $6.1 billion unrealized gains and $1.9 billion unrealized losses (including impairment).

(2)The long-term portion of marketable equity securities of $429 million is included in other non-current assets.

Marketable equity securities

The following table summarizes marketable equity securities measured at fair value by significant investment categories as of December 31, 2019 and 2020 (in millions):

	As of December 31, 2019				As of December 31, 2020
	Cash and Cash Equivalents		Marketable Equity Securities		Cash and Cash Equivalents		Marketable Equity Securities
Level 1:
Money market funds	$	4,604	$	0	$	12,210	$	0
Marketable equity securities(1)(2)	0		3,046		0		5,470
	4,604		3,046		12,210		5,470
Level 2:
Mutual funds	0		250		0		388
Total	$	4,604	$	3,296	$	12,210	$	5,858

(1)    The balance as of December 31, 2019 and 2020 includes investments that were reclassified from non-marketable equity securities following the commencement of public market trading of the issuers or acquisition by public entities. As of December 31, 2020 certain investments are subject to short-term lock-up restrictions.

(2)    As of December 31, 2020 the long-term portion of marketable equity securities of $429 million is included within other non-current assets.

Total unrealized gain (loss) 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):

	Year Ended December 31,
	2019		2020
Unrealized gains	$	2,163	$	3,020
Unrealized losses (including impairment)	(372)		(1,489)
Total unrealized gain (loss) for non-marketable equity securities	$	1,791	$	1,531

Schedule of gross notional amounts of derivative instruments

The gross notional amounts of our outstanding derivative instruments were as follows (in millions):

	As of December 31, 2019		As of December 31, 2020
Derivatives Designated as Hedging Instruments:
Foreign exchange contracts
Cash flow hedges	$	13,207	$	10,187
Fair value hedges	$	455	$	1,569
Net investment hedges	$	9,318	$	9,965
Derivatives Not Designated as Hedging Instruments:
Foreign exchange contracts	$	43,497	$	39,861
Other contracts	$	117	$	2,399

Schedule of derivative instruments

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

		As of December 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
Derivative Assets:
Level 2:
Foreign exchange contracts	Other current and non-current assets	$	91	$	253	$	344
Other contracts	Other current and non-current assets	0		1		1
Total		$	91	$	254	$	345
Derivative Liabilities:
Level 2:
Foreign exchange contracts	Accrued expenses and other liabilities, current and non-current	$	173	$	196	$	369
Other contracts	Accrued expenses and other liabilities, current and non-current	0		13		13
Total		$	173	$	209	$	382

		As of December 31, 2020
	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	$	33	$	316	$	349
Other contracts	Other current and non-current assets	0		16		16
Total		$	33	$	332	$	365
Derivative Liabilities:
Level 2:
Foreign exchange contracts	Accrued expenses and other liabilities, current and non-current	$	395	$	185	$	580
Other contracts	Accrued expenses and other liabilities, current and non-current	0		942		942
Total		$	395	$	1,127	$	1,522

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,
	2018		2019		2020
Derivatives in Cash Flow Hedging Relationship:
Foreign exchange contracts
Amount included in the assessment of effectiveness	$	332	$	38	$	102
Amount excluded from the assessment of effectiveness	26		(14)		(37)
Derivatives in Net Investment Hedging Relationship:
Foreign exchange contracts
Amount included in the assessment of effectiveness	136		131		(851)
Total	$	494	$	155	$	(786)

The effect of derivative instruments on income is summarized below (in millions):

	Gains (Losses) Recognized in Income
	Year Ended December 31,
	2018				2019				2020
	Revenues		Other income (expense), net		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	$	136,819	$	7,389	$	161,857	$	5,394	$	182,527	$	6,858
Gains (Losses) on Derivatives in Cash Flow Hedging Relationship:
Foreign exchange contracts
Amount of gains (losses) reclassified from AOCI to income	$	(139)	$	0	$	367	$	0	$	144	$	0
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach	1		0		88		0		33		0
Gains (Losses) on Derivatives in Fair Value Hedging Relationship:
Foreign exchange contracts
Hedged items	0		(96)		0		(19)		0		18
Derivatives designated as hedging instruments	0		96		0		19		0		(18)
Amount excluded from the assessment of effectiveness	0		37		0		25		0		4
Gains (Losses) on Derivatives in Net Investment Hedging Relationship:
Foreign exchange contracts
Amount excluded from the assessment of effectiveness	0		78		0		243		0		151
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Foreign exchange contracts	0		54		0		(413)		0		718
Other Contracts	0		0		0		0		0		(906)
Total gains (losses)	$	(138)	$	169	$	455	$	(145)	$	177	$	(33)

Offsetting assets

The gross amounts of our 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):

Offsetting of Assets

	As of December 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
Derivatives	$	366	$	(21)	$	345	$	(88)	(1)	$	(234)	$	0	$	23
	As of December 31, 2020
							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	$	397	$	(32)	$	365	$	(295)	(1)	$	(16)	$	0	$	54

(1)    The balances as of December 31, 2019 and 2020 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, 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
Derivatives	$	403	$	(21)	$	382	$	(88)	(2)	$	0	$	0	$	294
	As of December 31, 2020
							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	$	1,554	$	(32)	$	1,522	$	(295)	(2)	$	(1)	$	(943)	$	283

(2)    The balances as of December 31, 2019 and 2020 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements.