Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 22, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GOOG, GOOGL | |
Entity Registrant Name | Google Inc. | |
Entity Central Index Key | 1,288,776 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 291,327,781 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 50,893,362 | |
Class C Capital Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 345,504,021 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 18,068 | $ 18,347 |
Marketable securities | 54,699 | 46,048 |
Total cash, cash equivalents, and marketable securities (including securities loaned of $4,058 and $4,351) | 72,767 | 64,395 |
Accounts receivable, net of allowance of $225 and $291 | 9,749 | 9,383 |
Receivable under reverse repurchase agreements | 400 | 875 |
Deferred income taxes, net | 2,212 | 1,322 |
Income taxes receivable, net | 287 | 591 |
Prepaid revenue share, expenses and other assets | 2,688 | 3,412 |
Total current assets | 88,103 | 79,978 |
Prepaid revenue share, expenses and other assets, non-current | 3,329 | 3,280 |
Non-marketable investments | 4,813 | 3,079 |
Property and equipment, net | 28,338 | 23,883 |
Intangible assets, net | 4,023 | 4,607 |
Goodwill | 15,675 | 15,599 |
Total assets | 144,281 | 130,426 |
Current liabilities: | ||
Accounts payable | 1,549 | 1,715 |
Short-term debt | 3,237 | 2,009 |
Accrued compensation and benefits | 2,988 | 3,069 |
Accrued expenses and other current liabilities | 4,598 | 4,434 |
Accrued revenue share | 1,899 | 1,952 |
Securities lending payable | 3,266 | 2,778 |
Deferred revenue | 705 | 752 |
Income taxes payable, net | 215 | 96 |
Total current liabilities | 18,457 | 16,805 |
Long-term debt | 1,994 | 3,228 |
Deferred revenue, non-current | 133 | 104 |
Income taxes payable, non-current | 3,596 | 3,340 |
Deferred income taxes, net, non-current | 1,976 | 1,971 |
Other long-term liabilities | $ 1,884 | $ 1,118 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | $ 0 | $ 0 |
Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 680,172 (Class A 286,560, Class B 53,213, Class C 340,399) and par value of $680 (Class A $287, Class B $53, Class C $340) and 687,693 (Class A 291,214, Class B 50,990, Class C 345,489) and par value of $688 (Class A $291, Class B $51, Class C $346) shares issued and outstanding | 31,864 | 28,767 |
Accumulated other comprehensive income (loss) | (1,592) | 27 |
Retained earnings | 85,969 | 75,066 |
Total stockholders’ equity | 116,241 | 103,860 |
Total liabilities and stockholders’ equity | $ 144,281 | $ 130,426 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Total cash equivalents and marketable securities, securities loaned | $ 4,351,000 | $ 4,058,000 |
Accounts receivable, allowance | $ 291,000 | $ 225,000 |
Convertible preferred stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Convertible preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common and Capital Stock, Par or Slated Value Per Share | $ 0.001 | $ 0.001 |
Common and Capital Stock, Shares Authorized | 15,000,000,000 | 15,000,000,000 |
Common and Capital Stock, Value, Issued | $ 688 | $ 680 |
Common and Capital Stock, Shares, Issued | 687,693,000 | 680,172,000 |
Common and Capital Stock, Shares, Outstanding | 687,693,000 | 680,172,000 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, number of shares authorized | 9,000,000,000 | 9,000,000,000 |
Common stock, par value | $ 291 | $ 287 |
Common stock, shares issued | 291,214,000 | 286,560,000 |
Common stock, shares outstanding | 291,214,000 | 286,560,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, number of shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, par value | $ 51 | $ 53 |
Common stock, shares issued | 50,990,000 | 53,213,000 |
Common stock, shares outstanding | 50,990,000 | 53,213,000 |
Class C Capital Stock | ||
Capital stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Capital stock, number of shares authorized | 3,000,000,000 | 3,000,000,000 |
Capital stock, value, issued | $ 346 | $ 340 |
Capital stock, shares issued | 345,489,000 | 340,399,000 |
Capital stock, shares outstanding | 345,489,000 | 340,399,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Revenues | $ 18,675 | $ 16,523 | $ 53,660 | $ 47,898 |
Costs and expenses: | ||||
Cost of revenues | 7,037 | 6,695 | 19,976 | 18,770 |
Research and development | 3,230 | 2,655 | 8,772 | 7,019 |
Sales and marketing | 2,223 | 2,084 | 6,368 | 5,754 |
General and administrative | 1,477 | 1,365 | 4,564 | 4,258 |
Total costs and expenses | 13,967 | 12,799 | 39,680 | 35,801 |
Income from operations | 4,708 | 3,724 | 13,980 | 12,097 |
Interest and other income, net | 183 | 133 | 471 | 635 |
Income from continuing operations before income taxes | 4,891 | 3,857 | 14,451 | 12,732 |
Provision for income taxes | 912 | 933 | 3,026 | 2,820 |
Net income from continuing operations | 3,979 | 2,924 | 11,425 | 9,912 |
Net loss from discontinued operations | 0 | (185) | 0 | (451) |
Net income | 3,979 | 2,739 | 11,425 | 9,461 |
Less: Adjustment Payment to Class C capital stockholders | 0 | 0 | 522 | 0 |
Net income available to all stockholders | $ 3,979 | $ 2,739 | $ 10,903 | $ 9,461 |
Basic net income (loss) per share of Class A and B common stock and Class C capital stock | ||||
Continuing operations (in dollars per share) | $ 4.32 | $ 14.69 | ||
Net income per share - basic (in dollars per share) | 4.05 | 14.02 | ||
Diluted net income (loss) per share of Class A and B common stock and Class C capital stock | ||||
Continuing operations (in dollars per share) | 4.25 | 14.44 | ||
Net income per share - diluted (in dollars per share) | 3.98 | 13.78 | ||
Common Class A and Common Class B | ||||
Basic net income (loss) per share of Class A and B common stock and Class C capital stock | ||||
Continuing operations (in dollars per share) | $ 5.80 | 4.32 | $ 15.95 | 14.69 |
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.67) |
Net income per share - basic (in dollars per share) | 5.80 | 4.05 | 15.95 | 14.02 |
Diluted net income (loss) per share of Class A and B common stock and Class C capital stock | ||||
Continuing operations (in dollars per share) | 5.73 | 4.25 | 15.77 | 14.44 |
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.66) |
Net income per share - diluted (in dollars per share) | $ 5.73 | $ 3.98 | $ 15.77 | $ 13.78 |
Class C Capital Stock | ||||
Costs and expenses: | ||||
Net income from continuing operations | $ 1,998 | $ 1,462 | $ 5,468 | $ 4,957 |
Net loss from discontinued operations | 0 | (92) | 0 | (226) |
Net income | $ 1,998 | $ 1,370 | 5,990 | 4,731 |
Less: Adjustment Payment to Class C capital stockholders | $ (522) | $ 0 | ||
Basic net income (loss) per share of Class A and B common stock and Class C capital stock | ||||
Continuing operations (in dollars per share) | $ 5.80 | $ 4.32 | $ 17.47 | $ 14.69 |
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.67) |
Net income per share - basic (in dollars per share) | 5.80 | 4.05 | 17.47 | 14.02 |
Diluted net income (loss) per share of Class A and B common stock and Class C capital stock | ||||
Continuing operations (in dollars per share) | 5.73 | 4.25 | 17.27 | 14.44 |
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.66) |
Net income per share - diluted (in dollars per share) | $ 5.73 | $ 3.98 | $ 17.27 | $ 13.78 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,979 | $ 2,739 | $ 11,425 | $ 9,461 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (145) | (677) | (850) | (623) |
Available-for-sale investments: | ||||
Change in net unrealized gains (losses) | (389) | (195) | (504) | 250 |
Less: reclassification adjustment for net (gains) losses included in net income | 4 | (15) | (73) | (122) |
Net change (net of tax effect of $66, $2, $38, and $29) | (385) | (210) | (577) | 128 |
Cash flow hedges: | ||||
Change in net unrealized gains | 79 | 310 | 580 | 304 |
Less: reclassification adjustment for net (gains) losses included in net income | (212) | (7) | (772) | (16) |
Net change (net of tax effect of $122, $58, $113, and $68) | (133) | 303 | (192) | 288 |
Other comprehensive income (loss) | (663) | (584) | (1,619) | (207) |
Comprehensive income | $ 3,316 | $ 2,155 | $ 9,806 | $ 9,254 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect related to available-for-sale investments | $ 2 | $ (66) | $ (29) | $ 38 |
Tax effect related to cash flow hedges | $ (58) | $ 122 | $ (68) | $ 113 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities | ||
Net income | $ 11,425 | $ 9,461 |
Adjustments: | ||
Depreciation expense and impairment of property and equipment | 2,979 | 2,513 |
Amortization and impairment of intangible assets | 680 | 1,199 |
Stock-based compensation expense | 3,767 | 3,092 |
Excess tax benefits from stock-based award activities | (354) | (467) |
Deferred income taxes | (566) | (498) |
Gain on equity interest | 0 | (126) |
(Gain) loss on marketable and non-marketable investments, net | 32 | (251) |
Other | 157 | 157 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (336) | (490) |
Income taxes, net | 1,093 | 577 |
Prepaid revenue share, expenses and other assets | 204 | 506 |
Accounts payable | (168) | (113) |
Accrued expenses and other liabilities | 820 | 416 |
Accrued revenue share | (69) | 36 |
Deferred revenue | (55) | 0 |
Net cash provided by operating activities | 19,609 | 16,012 |
Investing activities | ||
Purchases of property and equipment | (7,815) | (7,408) |
Purchases of marketable securities | (56,217) | (43,192) |
Maturities and sales of marketable securities | 46,860 | 36,650 |
Purchases of non-marketable investments | (1,771) | (536) |
Cash collateral related to securities lending | 488 | 2,029 |
Investments in reverse repurchase agreements | 475 | (725) |
Acquisitions, net of cash acquired, and purchases of intangibles and other assets | (244) | (4,632) |
Net cash used in investing activities | (18,224) | (17,814) |
Financing activities | ||
Net payments related to stock-based award activities | (1,610) | (1,548) |
Excess tax benefits from stock-based award activities | 354 | 467 |
Adjustment Payment to Class C capital stockholders | (47) | 0 |
Proceeds from issuance of debt, net of costs | 10,332 | 9,167 |
Repayments of debt | (10,341) | (9,181) |
Net cash used in financing activities | (1,312) | (1,095) |
Effect of exchange rate changes on cash and cash equivalents | (352) | (236) |
Net decrease in cash and cash equivalents | (279) | (3,133) |
Cash and cash equivalents at beginning of period | 18,347 | 18,898 |
Reclassification of assets previously held for sale | 0 | (160) |
Cash and cash equivalents at end of period | 18,068 | 15,605 |
Supplemental disclosures of cash flow information | ||
Cash paid for taxes | 2,317 | 2,382 |
Cash paid for interest | 66 | 56 |
Shares issued in connection with the Class C Adjustment Payment | $ 475 | $ 0 |
Google Inc. and Summary of Sign
Google Inc. and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Google Inc. and Summary of Significant Accounting Policies | Google Inc. and Summary of Significant Accounting Policies We were incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. We generate revenues primarily by delivering relevant, cost-effective online advertising. On October 29, 2014, we sold the Motorola Mobile business (Motorola Mobile) to Lenovo Group Limited (Lenovo). The financial results of Motorola Mobile are presented as net loss from discontinued operations on the Consolidated Statements of Income for the three and nine months ended September 30, 2014 . See Note 8 for further discussion of the sale. On August 10, 2015, we announced plans to create a new public holding company, Alphabet Inc. (Alphabet), and a new operating structure. On October 2, 2015, we announced the implementation of the holding company reorganization, in which Alphabet became the successor issuer to Google. Basis of Consolidation The consolidated financial statements include the accounts of Google Inc. and our subsidiaries. All intercompany balances and transactions have been eliminated. Unaudited Interim Financial Information The accompanying Consolidated Balance Sheet as of September 30, 2015 , the Consolidated Statements of Income for the three and nine months ended September 30, 2014 and 2015 , the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2014 and 2015 , and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2015 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of September 30, 2015 , our results of operations for the three and nine months ended September 30, 2014 and 2015 , and our cash flows for the nine months ended September 30, 2014 and 2015 . The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 . These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 , filed with the SEC on February 6, 2015. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. In June 2014, the FASB issued Accounting Standards Update No. 2014-10 (ASU 2014-10) "Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation". ASU 2014-10 removes the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification (ASC) thereby removing the financial reporting distinction between development stage entities and other reporting entities. The additional elimination of related consolidation guidance will require companies with interests in development stage entities to reassess whether such entities are variable interest entities under ASC Topic 810, Consolidation. ASU 2014-10 will be applied retrospectively for annual reporting periods beginning after December 15, 2015, and interim periods therein. Early application of these amendments is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2014-10 on our consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption of ASU 2015-02 on our consolidated financial statements. Revision of Previously Issued Financial Statements In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities, and as a consequence, we revised our income tax expense for periods beginning in 2008 through the first quarter of 2015 in the cumulative amount of $711 million . We evaluated the materiality of the income tax expense impact quantitatively and qualitatively and concluded it was not material to any of the prior periods impacted and that correction of income tax expense as an out of period adjustment in the quarter ended June 30, 2015 would not be material to our consolidated financial statements for the year ending December 31, 2015. Consolidated revenues are not impacted. We elected to revise previously issued consolidated financial statements for the periods impacted. Refer to Note 15 for additional information. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Fair Value Measurements We measure our cash equivalents, marketable securities, foreign currency and interest rate derivative contracts, and non-marketable debt securities at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 - Unobservable inputs that are supported by little or no market activities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. We classify our foreign currency and interest rate derivative contracts primarily within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. We classify our non-marketable investments within Level 3 as the valuation inputs are not observable in an active market. Cash, Cash Equivalents and Marketable Securities The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of December 31, 2014 and September 30, 2015 (in millions): As of December 31, 2014 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Cash $ 9,863 $ 0 $ 0 $ 9,863 $ 9,863 $ 0 Level 1: Money market and other funds 2,532 0 0 2,532 2,532 0 U.S. government notes 15,320 37 (4 ) 15,353 1,128 14,225 Marketable equity securities 988 428 (64 ) 1,352 0 1,352 18,840 465 (68 ) 19,237 3,660 15,577 Level 2: Time deposits (1) 2,409 0 0 2,409 2,309 100 Money market and other funds (2) 1,762 0 0 1,762 1,762 0 Fixed-income bond funds (3) 385 0 (38 ) 347 0 347 U.S. government agencies 2,327 8 (1 ) 2,334 750 1,584 Foreign government bonds 1,828 22 (10 ) 1,840 0 1,840 Municipal securities 3,370 33 (6 ) 3,397 3 3,394 Corporate debt securities 11,499 114 (122 ) 11,491 0 11,491 Agency mortgage-backed securities 8,196 109 (42 ) 8,263 0 8,263 Asset-backed securities 3,456 1 (5 ) 3,452 0 3,452 35,232 287 (224 ) 35,295 4,824 30,471 Total $ 63,935 $ 752 $ (292 ) $ 64,395 $ 18,347 $ 46,048 As of September 30, 2015 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable (unaudited) Cash $ 10,986 $ 0 $ 0 $ 10,986 $ 10,986 $ 0 Level 1: Money market and other funds 3,668 0 0 3,668 3,668 0 U.S. government notes 18,146 114 0 18,260 0 18,260 Marketable equity securities 1,014 196 (315 ) 895 0 895 22,828 310 (315 ) 22,823 3,668 19,155 Level 2: Time deposits (1) 3,434 0 0 3,434 1,458 1,976 Money market and other funds (2) 1,855 0 0 1,855 1,855 0 Fixed-income bond funds (3) 370 0 (84 ) 286 0 286 U.S. government agencies 1,331 6 0 1,337 100 1,237 Foreign government bonds 2,422 17 (23 ) 2,416 0 2,416 Municipal securities 3,629 37 (4 ) 3,662 0 3,662 Corporate debt securities 13,536 79 (239 ) 13,376 1 13,375 Agency mortgage-backed securities 9,434 101 (24 ) 9,511 0 9,511 Asset-backed securities 3,084 2 (5 ) 3,081 0 3,081 39,095 242 (379 ) 38,958 3,414 35,544 Total $ 72,909 $ 552 $ (694 ) $ 72,767 $ 18,068 $ 54,699 (1) The majority of our time deposits are foreign deposits. (2) The balances as of December 31, 2014 and September 30, 2015 were related to cash collateral received in connection with our securities lending program, which was invested in reverse repurchase agreements maturing within three months. See section titled " Securities Lending Program " below for further discussion of this program. (3) Fixed-income bond funds consist of mutual funds that primarily invest in corporate and government bonds. We determine realized gains or losses on the sale of marketable securities on a specific identification method. We recognized gross realized gains of $33 million and $189 million for the three and nine months ended September 30, 2014 and $54 million and $235 million for the three and nine months ended September 30, 2015 . We recognized gross realized losses of $15 million and $49 million for the three and nine months ended September 30, 2014 and $60 million and $156 million for the three and nine months ended September 30, 2015 . We reflect these gains and losses as a component of interest and other income, net, in the accompanying Consolidated Statements of Income. The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): As of (unaudited) Due in 1 year $ 8,525 Due in 1 year through 5 years 27,725 Due in 5 years through 10 years 7,244 Due after 10 years 10,024 Total $ 53,518 Non-marketable Investments We included $90 million and $991 million of available-for-sale debt securities in our non-marketable investments as of December 31, 2014 and September 30, 2015 . These debt securities are primarily preferred stock with certain features and convertible notes issued by private companies that do not have readily determinable market values and are categorized accordingly as Level 3 in the fair value hierarchy. To estimate the fair value of these securities, we use a combination of valuation methodologies, including market and income approaches based on prior transaction prices; estimated timing, probability, and amount of cash flows; and illiquidity considerations. Financial information of the private companies may not be available and consequently we will estimate the value based on the best available information at the measurement date. As of December 31, 2014 and September 30, 2015 , the estimated fair value of these debt securities approximated their carrying value. In addition, since these securities do not have contractual maturity dates and we do not intend to liquidate them in the next 12 months, we have classified them as non-current assets on the accompanying Consolidated Balance Sheet as of December 31, 2014 and September 30, 2015 . The following table presents reconciliations for our assets measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) (in millions): Level 3 (unaudited) Balance as of December 31, 2014 $ 90 Purchases, issuances, and settlements (1) 901 Balance as of September 30, 2015 $ 991 (1) Purchases of securities included our $900 million investment in SpaceX, a space exploration and space transport company, made during January 2015. Impairment Considerations for Available-for-sale Investments The following tables present gross unrealized losses and fair values for those marketable investments that were in an unrealized loss position as of December 31, 2014 and September 30, 2015 , 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, 2014 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized U.S. government notes $ 4,490 $ (4 ) $ 0 $ 0 $ 4,490 $ (4 ) U.S. government agencies 830 (1 ) 0 0 830 (1 ) Foreign government bonds 255 (7 ) 43 (3 ) 298 (10 ) Municipal securities 877 (3 ) 174 (3 ) 1,051 (6 ) Corporate debt securities 5,851 (112 ) 225 (10 ) 6,076 (122 ) Agency mortgage-backed securities 609 (1 ) 2,168 (41 ) 2,777 (42 ) Asset-backed securities 2,388 (4 ) 174 (1 ) 2,562 (5 ) Fixed-income bond funds 347 (38 ) 0 0 347 (38 ) Marketable equity securities 690 (64 ) 0 0 690 (64 ) Total $ 16,337 $ (234 ) $ 2,784 $ (58 ) $ 19,121 $ (292 ) As of September 30, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized (unaudited) Foreign government bonds $ 873 $ (19 ) $ 27 $ (4 ) $ 900 $ (23 ) Municipal securities 356 (3 ) 23 (1 ) 379 (4 ) Corporate debt securities 7,152 (187 ) 651 (52 ) 7,803 (239 ) Agency mortgage-backed securities 1,355 (8 ) 739 (16 ) 2,094 (24 ) Asset-backed securities 1,650 (4 ) 230 (1 ) 1,880 (5 ) Fixed-income bond funds 0 0 286 (84 ) 286 (84 ) Marketable equity securities 790 (315 ) 0 0 790 (315 ) Total $ 12,176 $ (536 ) $ 1,956 $ (158 ) $ 14,132 $ (694 ) We periodically review our available-for-sale debt and equity securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and our intent to sell. For debt securities, we also consider whether (i) it is more likely than not that we will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. During the three and nine months ended September 30, 2014 and 2015 , we did not recognize any other-than-temporary impairment loss. Securities Lending Program From time to time, we enter into securities lending agreements with financial institutions to enhance investment income. We loan certain securities which are collateralized in the form of cash or securities. Cash collateral is usually invested in reverse repurchase agreements which are collateralized in the form of securities. We classify loaned securities as cash equivalents or marketable securities and record the cash collateral as an asset with a corresponding liability in the accompanying Consolidated Balance Sheets. We classify reverse repurchase agreements maturing within three months as cash equivalents and those longer than three months as receivable under reverse repurchase agreements in the accompanying Consolidated Balance Sheets. For security collateral received, we do not record an asset or liability except in the event of counterparty default. Our securities lending transactions were accounted for as secured borrowings with significant investment categories as follows (in millions): As of September 30, 2015 Remaining Contractual Maturity of the Agreements Securities Lending Transactions Overnight and Continuous Up to 30 days 30 - 90 Days Greater Than 90 Days Total (unaudited) U.S. government notes $ 1,779 $ 1,001 $ 0 $ 101 $ 2,881 U.S. government agencies 192 0 0 0 192 Corporate debt securities 193 0 0 0 193 Total $ 2,164 $ 1,001 $ 0 $ 101 $ 3,266 Gross amount of recognized liabilities for securities lending in offsetting disclosure $ 3,266 Amounts related to agreements not included in securities lending in offsetting disclosure $ 0 Derivative Financial Instruments We recognize derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. We record changes in the fair value (i.e. gains or losses) of the derivatives in the accompanying Consolidated Statements of income as interest and other income, net, as part of revenues, or as a component of accumulated other comprehensive income (AOCI) in the accompanying Consolidated Balance Sheets, as discussed below. We enter into foreign currency contracts with financial institutions to reduce the risk that our cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. We use certain interest rate derivative contracts to hedge interest rate exposures on our fixed income securities and our anticipated debt issuance. Our program is not used for trading or speculative purposes. We enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. To further reduce credit risk, we enter into collateral security arrangements under which the counterparty is required to provide collateral when the net fair value of certain financial instruments fluctuates from contractually established thresholds. We can take possession of the collateral in the event of counterparty default. As of December 31, 2014 and September 30, 2015 , we received cash collateral related to the derivative instruments under our collateral security arrangements of $268 million and $105 million . Cash Flow Hedges We use options designated as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. The notional principal of these contracts was approximately $13.6 billion and $9.7 billion as of December 31, 2014 and September 30, 2015 . These foreign exchange contracts have maturities of 36 months or less. In 2012, we entered into forward-starting interest rate swaps, with a total notional amount of $1.0 billion and terms calling for us to receive interest at a variable rate and to pay interest at a fixed rate, that effectively locked in an interest rate on our anticipated debt issuance of $1.0 billion in 2014. We issued $1.0 billion of unsecured senior notes in February 2014 (see details in Note 3). As a result, we terminated the forward-starting interest rate swaps upon the debt issuance. The gain associated with the termination is reported within operating activities in the Consolidated Statement of Cash Flows for the nine months ended September 30, 2014 , consistent with the impact of the hedged item. We reflect gains or losses on the effective portion of a cash flow hedge as a component of AOCI and subsequently reclassify cumulative gains and losses to revenues or interest expense when the hedged transactions are recorded. If the hedged transactions become probable of not occurring, the corresponding amounts in AOCI would be immediately reclassified to interest and other income, net. Further, we exclude the change in the time value of the options from our assessment of hedge effectiveness. We record the premium paid or time value of an option on the date of purchase as an asset. Thereafter, we recognize changes to this time value in interest and other income, net. As of September 30, 2015 , the effective portion of our cash flow hedges before tax effect was $556 million , of which $466 million is expected to be reclassified from AOCI into earnings within the next 12 months. Fair Value Hedges We use forward contracts designated as fair value hedges to hedge foreign currency risks for our investments denominated in currencies other than the U.S. dollar. We exclude changes in the time value for these forward contracts from the assessment of hedge effectiveness. The notional principal of these contracts was $1.5 billion and $2.0 billion as of December 31, 2014 and September 30, 2015 . We use interest rate swaps designated as fair value hedges to hedge interest rate risk for certain fixed rate securities. The notional principal of these contracts was $175 million and $290 million as of December 31, 2014 and September 30, 2015 . Gains and losses on these forward contracts and interest rate swaps are recognized in interest and other income, net, along with the offsetting losses and gains of the related hedged items. Cash flows from these forward contracts and interest rate swaps are reported within investment activities in the Consolidated Statements of Cash Flows, consistent with the impact of the hedged items. Other Derivatives Other derivatives not designated as hedging instruments consist of forward contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the local currency of a subsidiary. We recognize gains and losses on these contracts, as well as the related costs in interest and other income, net along with the foreign currency gains and losses on monetary assets and liabilities. The notional principal of foreign exchange contracts outstanding was $6.2 billion and $5.7 billion as of December 31, 2014 and September 30, 2015 . We also use exchange-traded interest rate futures contracts and “To Be Announced” (TBA) forward purchase commitments of mortgage-backed assets to hedge interest rate risks on certain fixed income securities. The TBA contracts meet the definition of derivative instruments in cases where physical delivery of the assets is not taken at the earliest available delivery date. Our interest rate futures and TBA contracts (together interest rate contracts) are not designated as hedging instruments. We recognize gains and losses on these contracts, as well as the related costs, in interest and other income, net. The gains and losses are generally economically offset by unrealized gains and losses in the underlying available-for-sale securities, which are recorded as a component of AOCI until the securities are sold or other-than-temporarily impaired, at which time the amounts are moved from AOCI into interest and other income, net. The total notional amounts of interest rate contracts outstanding were $150 million as of December 31, 2014 and $450 million as of September 30, 2015 . The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2014 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 Prepaid revenue share, expenses and other assets, current and non-current $ 851 $ 0 $ 851 Interest rate contracts Prepaid revenue share, expenses and other assets, current and non-current 1 0 1 Total $ 852 $ 0 $ 852 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other current liabilities $ 0 $ 3 $ 3 Interest rate contracts Accrued expenses and other liabilities, current and non-current 1 0 1 Total $ 1 $ 3 $ 4 As of September 30, 2015 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 Prepaid revenue share, expenses and other assets, current and non-current $ 545 $ 1 $ 546 Total $ 545 $ 1 $ 546 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other current liabilities $ 0 $ 3 $ 3 Interest rate contracts Accrued expenses and other liabilities, current and non-current 6 1 7 Total $ 6 $ 4 $ 10 The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) is summarized below (in millions): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship 2014 2015 2014 2015 (unaudited) Foreign exchange contracts $ 436 $ 97 $ 458 $ 813 Interest rate contracts 0 0 (31 ) 0 Total $ 436 $ 97 $ 427 $ 813 Gains Reclassified from AOCI into Income (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship Income Statement Location 2014 2015 2014 2015 (unaudited) Foreign exchange contracts Revenues $ 10 $ 286 $ 24 $ 1,068 Interest rate contracts Interest and other income, net 1 1 2 3 Total $ 11 $ 287 $ 26 $ 1,071 Gains (Losses) Recognized in Income on Derivatives (1) (Amount Excluded from Effectiveness Testing and Ineffective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship Income Statement Location 2014 2015 2014 2015 (unaudited) Foreign exchange contracts Interest and other income, net $ (52 ) $ (63 ) $ (186 ) $ (230 ) Interest rate contracts Interest and other income, net 0 0 4 0 Total $ (52 ) $ (63 ) $ (182 ) $ (230 ) (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) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Fair Value Hedging Relationship Income Statement Location 2014 2015 2014 2015 (unaudited) Foreign Exchange Hedges: Foreign exchange contracts Interest and other income, net $ 73 $ 72 $ 52 $ 139 Hedged item Interest and other income, net (75 ) (73 ) (58 ) (144 ) Total $ (2 ) $ (1 ) $ (6 ) $ (5 ) Interest Rate Hedges: Interest rate contracts Interest and other income, net $ 0 $ (5 ) $ 0 $ (6 ) Hedged item Interest and other income, net 0 5 0 6 Total $ 0 $ 0 $ 0 $ 0 (2) Losses related to the amount excluded from effectiveness testing of the hedges were $2 million and $6 million for the three and nine months ended September 30, 2014 and $1 million and $5 million for the three and nine months ended September 30, 2015 . The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income on Derivatives Three Months Ended Nine Months Ended September 30, September 30, Derivatives Not Designated As Hedging Instruments Income Statement Location 2014 2015 2014 2015 (unaudited) Foreign exchange contracts Interest and other income, net and net loss from discontinued operations $ 172 $ 150 $ 59 $ 241 Interest rate contracts Interest and other income, net 2 3 2 0 Total $ 174 $ 153 $ 61 $ 241 Offsetting of Derivatives, Securities Lending and Reverse Repurchase Agreements We present our derivatives, securities lending and reverse repurchase agreements at gross fair values in the Consolidated Balance Sheets. However, our master netting and other similar arrangements allow net settlements under certain conditions. As of December 31, 2014 and September 30, 2015 , information related to these offsetting arrangements was as follows (in millions): Offsetting of Assets As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description 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 $ 852 $ 0 $ 852 $ (1 ) (1) $ (251 ) $ (412 ) $ 188 Reverse repurchase agreements 2,637 0 2,637 (2) 0 0 (2,637 ) 0 Total $ 3,489 $ 0 $ 3,489 $ (1 ) $ (251 ) $ (3,049 ) $ 188 As of September 30, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description 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 $ 546 $ 0 $ 546 $ (2 ) (1) $ (93 ) $ (303 ) $ 148 Reverse repurchase agreements 2,255 0 2,255 (2) 0 0 (2,255 ) 0 Total $ 2,801 $ 0 $ 2,801 $ (2 ) $ (93 ) $ (2,558 ) $ 148 (1) The balances as of December 31, 2014 and September 30, 2015 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. (2) The balances as of December 31, 2014 and September 30, 2015 included $1,762 million and $1,855 million recorded in cash and cash equivalents, respectively, and $875 million and $400 million recorded in receivable under reverse repurchase agreements, respectively. Offsetting of Liabilities As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description 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 $ 4 $ 0 $ 4 $ (1 ) (3) $ 0 $ 0 $ 3 Securities lending agreements 2,778 0 2,778 0 0 (2,740 ) 38 Total $ 2,782 $ 0 $ 2,782 $ (1 ) $ 0 $ (2,740 ) $ 41 As of September 30, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description 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 $ 10 $ 0 $ 10 $ (2 ) (3) $ (4 ) $ 0 $ 4 Securities lending agreements 3,266 0 3,266 0 0 (3,245 ) 21 Total $ 3,276 $ 0 $ 3,276 $ (2 ) $ (4 ) $ (3,245 ) $ 25 (3) The balances as of December 31, 2014 and September 30, 2015 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Short-Term Debt We have a debt financing program of up to $3.0 billion through the issuance of commercial paper. Net proceeds from this program are used for general corporate purposes. As of December 31, 2014 and September 30, 2015 , we had $2.0 billion of outstanding commercial paper recorded as short-term debt with weighted-average interest rates of 0.1% and 0.2% respectively. In conjunction with this program, we have a $3.0 billion revolving credit facility which expires in July 2016 . The interest rate for the credit facility is determined based on a formula using certain market rates. As of December 31, 2014 and September 30, 2015 , we were in compliance with the financial covenants in the credit facility, and no amounts were outstanding under the credit facility as of December 31, 2014 and September 30, 2015 . The estimated fair value of the commercial paper approximated its carrying value as of December 31, 2014 and September 30, 2015 . Our short-term debt balance also includes the short-term portion of certain long-term debt, as described in the section below. Long-Term Debt We issued $1.0 billion of unsecured senior notes (the "2014 Notes") in February 2014 and $3.0 billion of unsecured senior notes in three tranches (collectively, the "2011 Notes") in May 2011. We used the net proceeds from the issuance of the 2011 Notes to repay a portion of our outstanding commercial paper and for general corporate purposes. We used the net proceeds from the issuance of the 2014 Notes for the repayment of the portion of the principal amount of our 2011 Notes which matured on May 19, 2014 and for general corporate purposes. The total outstanding Notes are summarized below (in millions): As of As of (unaudited) Short-Term Portion of Long-Term Debt 2.125% Notes due on May 19, 2016 (1) $ 0 $ 999 Capital Lease Obligation 10 238 Total $ 10 $ 1,237 Long-Term Debt 2.125% Notes due on May 19, 2016 $ 1,000 $ 0 3.625% Notes due on May 19, 2021 1,000 1,000 3.375% Notes due on February 25, 2024 1,000 1,000 Unamortized discount for the Notes above (8 ) (6 ) Subtotal 2,992 1,994 Capital Lease Obligation 236 0 Total $ 3,228 $ 1,994 (1) The outstanding Notes as of September 30, 2015 are net of unamortized discount of $1 million . The effective interest yields of the Notes due in 2016, 2021, and 2024 were 2.241% , 3.734% and 3.377% , respectively. Interest on the 2011 and 2014 Notes is payable semi-annually. The 2011 and 2014 Notes rank equally with each other and with all of our other senior unsecured and unsubordinated indebtedness from time to time outstanding. We may redeem the 2011 and 2014 Notes at any time in whole or in part at specified redemption prices. We are not subject to any financial covenants under the 2011 Notes or the 2014 Notes. The total estimated fair value of the outstanding 2011 and 2014 Notes was approximately $3.1 billion as of December 31, 2014 and September 30, 2015 . The fair value of the outstanding 2011 and 2014 Notes was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy. In August 2013, we entered into a capital lease obligation on certain property which expires in 2028. We intend to exercise the option to purchase the property in 2016, and as such the long term portion of the capital lease obligation was reclassified as short term. The effective rate of the capital lease obligation approximates the market rate. The estimated fair value of the capital lease obligation approximated its carrying value as of December 31, 2014 and September 30, 2015 . |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheet Components Disclosure [Abstract] | |
Balance Sheet Components | Balance Sheet Components Property and Equipment Property and equipment consisted of the following (in millions): As of As of (unaudited) Land and buildings $ 13,326 $ 15,353 Information technology assets 10,918 13,354 Construction in progress 6,555 7,799 Leasehold improvements 1,868 2,321 Furniture and fixtures 79 81 Property and equipment, gross 32,746 38,908 Less: accumulated depreciation and amortization (8,863 ) (10,570 ) Property and equipment, net $ 23,883 $ 28,338 Property under capital lease with a cost basis of $258 million was included in land and buildings as of September 30, 2015 . Prepaid Revenue Share, Expenses and Other Assets, Non-Current Note Receivable In connection with the sale of our Motorola Mobile business on October 29, 2014, we received an interest-free, three -year prepayable promissory note (the "Note Receivable") due October 2017 from Lenovo. The Note Receivable is included in prepaid revenue share, expenses and other assets, non-current, on our Consolidated Balance Sheets. Based on the general market conditions and the credit quality of Lenovo, we discounted the Note Receivable at an effective interest rate of 4.5% as shown in the table below (in millions): As of As of (unaudited) Principal of the Note Receivable $ 1,500 $ 1,500 Less: unamortized discount for the Note Receivable (175 ) (129 ) Total $ 1,325 $ 1,371 As of December 31, 2014 and September 30, 2015 , we did not recognize a valuation allowance on the Note Receivable. 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 on Cash Flow Hedges Total Balance as of December 31, 2013 $ 16 $ 50 $ 59 $ 125 Other comprehensive income (loss) before reclassifications (623 ) 250 304 (69 ) Amounts reclassified from AOCI 0 (122 ) (16 ) (138 ) Other comprehensive income (loss) (623 ) 128 288 (207 ) Balance as of September 30, 2014 $ (607 ) $ 178 $ 347 $ (82 ) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains on Cash Flow Hedges Total Balance as of December 31, 2014 $ (980 ) $ 421 $ 586 $ 27 Other comprehensive income (loss) before reclassifications (850 ) (504 ) 580 (774 ) Amounts reclassified from AOCI 0 (73 ) (772 ) (845 ) Other comprehensive income (loss) (850 ) (577 ) (192 ) (1,619 ) Balance as of September 30, 2015 $ (1,830 ) $ (156 ) $ 394 $ (1,592 ) 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 September 30, Nine Months Ended September 30, AOCI Components Location 2014 2015 2014 2015 Unrealized gains (losses) on available-for-sale investments Interest and other income, net $ 18 $ (6 ) $ 140 $ 79 Provision for income taxes (3 ) 2 (18 ) (6 ) Net of tax $ 15 $ (4 ) $ 122 $ 73 Unrealized gains on cash flow hedges Foreign exchange contracts Revenue $ 10 $ 286 $ 24 $ 1,068 Interest rate contracts Interest and other income, net 1 1 2 3 Provision for income taxes (4 ) (75 ) (10 ) (299 ) Net of tax $ 7 $ 212 $ 16 $ 772 Total amount reclassified, net of tax $ 22 $ 208 $ 138 $ 845 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the nine months ended September 30, 2015 , we completed various acquisitions and purchases of intangible assets for total consideration of approximately $250 million . In aggregate, $2 million was cash acquired, $81 million was attributed to intangible assets, $135 million was attributed to goodwill, and $32 million was attributed to net assets acquired . These acquisitions generally enhance the breadth and depth of our offerings and expand our expertise in engineering and other functional areas. The amount of goodwill expected to be deductible for tax purposes is approximately $18 million . Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated results of operations, either individually or in aggregate. For all acquisitions completed during the nine months ended September 30, 2015 , patents and developed technology have a weighted-average useful life of 4.1 years, customer relationships have a weighted-average useful life of 4.0 years, and trade names and other have a weighted-average useful life of 8.3 years. |
Collaboration Agreement
Collaboration Agreement | 9 Months Ended |
Sep. 30, 2015 | |
Research and Development [Abstract] | |
Collaboration Agreement | Collaboration Agreement On September 18, 2013, we announced the formation of Calico, a life science company with a mission to harness advanced technologies to increase our understanding of the biology that controls lifespan. Calico's results of operations and statement of financial position are included in our consolidated financial statements. As of September 30, 2015 , Google has contributed $240 million to Calico in exchange for Calico convertible preferred units. As of September 30, 2015 , Google has also committed to fund an additional $490 million on an as-needed basis. In September 2014, AbbVie Inc. (AbbVie) and Calico announced a research and development collaboration intended to help both companies discover, develop, and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. As of September 30, 2015 , AbbVie has contributed $750 million to fund the collaboration pursuant to the agreement, which reflects its total commitment. As of September 30, 2015 , Calico has contributed $ 250 million and committed up to an additional $ 500 million . Calico will use its scientific expertise to establish a world-class research and development facility, with a focus on drug discovery and early drug development; and AbbVie will provide scientific and clinical development support and its commercial expertise to bring new discoveries to market. Both companies will share costs and profits equally. AbbVie's contribution has been recorded as a liability on Calico's financial statements, which is reduced and reflected as a reduction to research and development expense as eligible research and development costs are incurred by Calico over the next few years. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill for the nine months ended September 30, 2015 were as follows (in millions, unaudited): Balance as of December 31, 2014 $ 15,599 Goodwill acquired 135 Goodwill adjustment (59 ) Balance as of September 30, 2015 $ 15,675 Other Intangible Assets Information regarding our purchased intangible assets was as follows (in millions): As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 6,547 $ 2,513 $ 4,034 Customer relationships 1,410 1,168 242 Trade names and other 696 365 331 Total $ 8,653 $ 4,046 $ 4,607 As of September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value (unaudited) Patents and developed technology $ 6,595 $ 3,037 $ 3,558 Customer relationships 1,374 1,209 165 Trade names and other 738 438 300 Total $ 8,707 $ 4,684 $ 4,023 Amortization expense relating to our purchased intangible assets was $285 million and $821 million for the three and nine months ended September 30, 2014 and $218 million and $679 million for the three and nine months ended September 30, 2015 . For the three and nine months ended September 30, 2014 , amortization expense related to Motorola Mobile was included in net loss from discontinued operations. As of September 30, 2015 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter was as follows (in millions, unaudited): Remainder of 2015 $ 215 2016 804 2017 727 2018 640 2019 530 Thereafter 1,107 $ 4,023 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On October 29, 2014, we closed the sale of the Motorola Mobile business to Lenovo. We maintain ownership of the vast majority of the Motorola Mobile patent portfolio, including pre-closing patent applications and invention disclosures, which we licensed to Motorola Mobile for its continued operations. Additionally, in connection with the sale, we agreed to indemnify Lenovo for certain potential liabilities of the Motorola Mobile business, for which we recorded a liability of $130 million at the time of close. The following table presents financial results of the Motorola Mobile business for the three and nine months ended September 30, 2014 , which were presented as net loss from discontinued operations (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2014 2014 Revenues $ 1,718 $ 4,901 Loss from discontinued operations before income taxes (217 ) (590 ) Benefits from income taxes 32 139 Net loss from discontinued operations $ (185 ) $ (451 ) |
Interest and Other Income, Net
Interest and Other Income, Net | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income, Net | Interest and Other Income, Net The components of interest and other income, net, were as follows (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Interest income $ 187 $ 259 $ 524 $ 725 Interest expense (25 ) (26 ) (76 ) (78 ) Realized gains (losses) on marketable securities, net 18 (6 ) 140 79 Foreign currency exchange losses, net (67 ) (100 ) (269 ) (261 ) Realized gain on equity interest 0 0 126 0 Realized gains (losses) on non-marketable investments, net (6 ) 7 111 (111 ) Other income, net 26 49 79 117 Interest and other income, net $ 133 $ 183 $ 635 $ 471 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Legal Matters Antitrust Investigations On November 30, 2010, the European Commission's (EC) Directorate General for Competition opened an investigation into various antitrust-related complaints against us. On April 15, 2015, the EC issued a Statement of Objections (SO) regarding the display and ranking of shopping search results. The EC also opened a formal investigation into Android. We responded to the SO on August 27, 2015 and will continue to cooperate with the EC. The Comision Nacional de Defensa de la Competencia in Argentina, the Competition Commission of India (CCI), Brazil's Council for Economic Defense (CADE), the Canadian Competition Bureau (CCB), and the Federal Antimonopoly Service (FAS) of the Russian Federation have also opened investigations into certain of our business practices. In August 2015, we received the CCI Director General's report with interim findings of competition law infringements regarding search and ads. In September 2015, FAS found that there has been a competition law infringement in Android mobile distribution. We will respond to the CCI's report and are considering an appeal of the FAS decision. In July 2015, the Taiwan Fair Trade Commission informed us that it was closing its antitrust investigations of our business practices. The state attorney general from Mississippi issued subpoenas in 2011 and 2012 in an antitrust investigation of our business practices. We have responded to those subpoenas, and we remain willing to cooperate with them if they have any further information requests. Patent and Intellectual Property Claims We have had patent, copyright, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe the intellectual property rights of others. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services, and may also cause us to change our business practices, and require development of non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to litigate intellectual property disputes because an ultimate loss for a company or its suppliers in an ITC action could result in a prohibition on importing infringing products into the U.S. Since the U.S. is an important market, a prohibition on importation could have an adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating workarounds that may limit certain features of our products. Furthermore, many of our agreements with our customers and partners require us to indemnify them for certain intellectual property infringement claims against them, which would increase our costs as a result of defending such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims. Our customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely impact our business. Other We are also regularly subject to claims, suits, government investigations, and other proceedings involving competition (such as the pending EC investigations described above), intellectual property, privacy, tax, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters. Such claims, suits, government investigations, and other proceedings could result in fines, civil or criminal penalties, or other adverse consequences. Certain of our outstanding legal matters include speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is possible and a range of the loss can be reasonably estimated, we disclose the range of the possible loss. We evaluate, on a monthly basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related ranges of possible losses disclosed, and make adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. With respect to our outstanding legal matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. We expense legal fees in the period in which they are incurred. Taxes We are under audit by the Internal Revenue Service (IRS) and various other domestic and foreign tax authorities with regards to income tax and indirect tax matters. We have reserved for potential adjustments to our provision for income taxes and accrual of indirect taxes that may result from examinations by, or any negotiated agreements with, these tax authorities, and we believe that the final outcome of these examinations or agreements will not have a material effect on our results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state, and foreign income tax liabilities and indirect tax liabilities are less than the ultimate assessment, it would result in a further charge to expense. Please see Note 13 for additional information regarding contingencies related to our income taxes. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): Three Months Ended September 30, 2014 2015 (unaudited) Class A Class B Class C Class A Class B Class C Basic net income (loss) per share: Numerator Allocation of undistributed earnings - continuing operations $ 1,226 $ 236 $ 1,462 $ 1,683 $ 298 $ 1,998 Allocation of undistributed earnings - discontinued operations (78 ) (15 ) (92 ) 0 0 0 Total $ 1,148 $ 221 $ 1,370 $ 1,683 $ 298 $ 1,998 Denominator Number of shares used in per share computation 283,850 54,623 338,624 290,368 51,369 344,698 Basic net income (loss) per share: Continuing operations $ 4.32 $ 4.32 $ 4.32 $ 5.80 $ 5.80 $ 5.80 Discontinued operations (0.27 ) (0.27 ) (0.27 ) 0.00 0.00 0.00 Basic net income per share $ 4.05 $ 4.05 $ 4.05 $ 5.80 $ 5.80 $ 5.80 Diluted net income (loss) per share: Numerator Allocation of undistributed earnings for basic computation - continuing operations $ 1,226 $ 236 $ 1,462 $ 1,683 $ 298 $ 1,998 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 236 0 0 298 0 0 Reallocation of undistributed earnings (2 ) (4 ) 2 (10 ) (4 ) 10 Allocation of undistributed earnings - continuing operations $ 1,460 $ 232 $ 1,464 $ 1,971 $ 294 $ 2,008 Allocation of undistributed earnings for basic computation - discontinued operations (78 ) (15 ) (92 ) 0 0 0 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares (15 ) 0 0 0 0 0 Reallocation of undistributed earnings 1 0 (1 ) 0 0 0 Allocation of undistributed earnings - discontinued operations $ (92 ) $ (15 ) $ (93 ) $ 0 $ 0 $ 0 Denominator Number of shares used in basic computation 283,850 54,623 338,624 290,368 51,369 344,698 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 54,623 0 0 51,369 0 0 Employee stock options 1,985 0 1,962 1,342 0 1,300 Restricted stock units and other contingently issuable shares 3,062 0 4,109 835 0 4,407 Number of shares used in per share computation 343,520 54,623 344,695 343,914 51,369 350,405 Diluted net income (loss) per share: Continuing operations $ 4.25 $ 4.25 $ 4.25 $ 5.73 $ 5.73 $ 5.73 Discontinued operations (0.27 ) (0.27 ) (0.27 ) 0.00 0.00 0.00 Diluted net income per share $ 3.98 $ 3.98 $ 3.98 $ 5.73 $ 5.73 $ 5.73 Nine Months Ended September 30, 2014 2015 (unaudited) Class A Class B Class C Class A Class B Class C Basic net income (loss) per share: Numerator Adjustment Payment to Class C capital stockholders - continuing operations $ 0 $ 0 $ 0 $ 0 $ 0 $ 522 Allocation of undistributed earnings - continuing operations 4,142 813 4,957 4,604 831 5,468 Allocation of undistributed earnings - discontinued operations (188 ) (37 ) (226 ) 0 0 0 Total $ 3,954 $ 776 $ 4,731 $ 4,604 $ 831 $ 5,990 Denominator Number of shares used in per share computation 282,014 55,357 337,562 288,686 52,108 342,862 Basic net income (loss) per share: Continuing operations $ 14.69 $ 14.69 $ 14.69 $ 15.95 $ 15.95 $ 17.47 Discontinued operations (0.67 ) (0.67 ) (0.67 ) 0.00 0.00 0.00 Basic net income per share $ 14.02 $ 14.02 $ 14.02 $ 15.95 $ 15.95 $ 17.47 Diluted net income (loss) per share: Numerator Adjustment Payment to Class C capital stockholders - continuing operations $ 0 $ 0 $ 0 $ 0 $ 0 $ 522 Allocation of undistributed earnings for basic computation - continuing operations $ 4,142 $ 813 $ 4,957 $ 4,604 $ 831 $ 5,468 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 813 0 0 831 0 0 Reallocation of undistributed earnings (5 ) (14 ) 5 (24 ) (9 ) 24 Allocation of undistributed earnings - continuing operations $ 4,950 $ 799 $ 4,962 $ 5,411 $ 822 $ 5,492 Allocation of undistributed earnings for basic computation - discontinued operations (188 ) (37 ) (226 ) 0 0 0 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares (37 ) 0 0 0 0 0 Reallocation of undistributed earnings 0 1 0 0 0 0 Allocation of undistributed earnings - discontinued operations $ (225 ) $ (36 ) $ (226 ) $ 0 $ 0 $ 0 Denominator Number of shares used in basic computation 282,014 55,357 337,562 288,686 52,108 342,862 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 55,357 0 0 52,108 0 0 Employee stock options 2,139 0 2,127 1,527 0 1,484 Restricted stock units and other contingently issuable shares 3,362 0 4,036 893 0 4,005 Number of shares used in per share computation 342,872 55,357 343,725 343,214 52,108 348,351 Diluted net income (loss) per share: Continuing operations $ 14.44 $ 14.44 $ 14.44 $ 15.77 $ 15.77 $ 17.27 Discontinued operations (0.66 ) (0.66 ) (0.66 ) 0.00 0.00 0.00 Diluted net income per share $ 13.78 $ 13.78 $ 13.78 $ 15.77 $ 15.77 $ 17.27 Stock Split Effected In Form of Stock Dividend In January 2014, our board of directors approved the distribution of shares of Class C capital stock as a dividend to our holders of Class A and Class B common stock (the Stock Split). The Stock Split had a record date of March 27, 2014 and a payment date of April 2, 2014. In the second quarter of 2015, in accordance with a settlement of litigation involving the authorization to distribute Class C capital stock, at the close of trading on April 2, 2015, the last trading day of the 365 day period following the first date the Class C shares traded on NASDAQ (Lookback Period), we determined that a payment (the Adjustment Payment) in the amount of $522 million was due to Class C capital stockholders. The amount of the Adjustment Payment was based on the percentage difference that developed between the volume-weighted average price of Class A and Class C shares during the Lookback Period, as supplied by NASDAQ Data-on-Demand, and was payable to holders of Class C capital stock as of the end of the Lookback Period in cash, Class A common stock, Class C capital stock, or a combination thereof, at the discretion of our board of directors. On April 22, 2015, our board of directors approved the Adjustment Payment in shares of Class C capital stock, and cash in lieu of any fractional shares of Class C capital stock. In May 2015, the Adjustment Payment was made, resulting in the issuance of approximately 853 thousand shares of Class C capital stock and $47 million of cash in lieu of fractional shares of Class C capital stock. In the nine months ended September 30, 2015 , the Adjustment Payment was allocated to the numerator for calculating net income per share of Class C capital stock from net income available to all stockholders and the remaining undistributed earnings were allocated on a pro rata basis to Class A and Class B common stock and Class C capital stock based on the number of shares used in the per share computation for each class of stock. The weighted-average share impact of the Adjustment Payment is included in the denominator of both basic and diluted net income per share computations for the nine months ended September 30, 2015 . In the three and nine months ended September 30, 2014 and three months ended September 30, 2015 , the net income per share amounts are the same for Class A and Class B common stock and Class C capital stock because the holders of each class are entitled to equal per share dividends or distributions in liquidation in accordance with our Fourth Amended and Restated Certificate of Incorporation. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock-Based Compensation The following table presents our aggregate stock-based compensation expense by type of costs and expenses per the Consolidated Statements of Income (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 (unaudited) Cost of revenues $ 169 $ 231 $ 364 $ 554 Research and development 666 741 1,569 1,939 Sales and marketing 197 250 502 651 General and administrative 223 210 539 623 Discontinued operations 35 0 118 0 Total stock-based compensation expense $ 1,290 $ 1,432 $ 3,092 $ 3,767 Stock-Based Award Activities The following table summarizes the activities for our stock options for the nine months ended September 30, 2015 : Options Outstanding Number of Weighted- Weighted- Aggregate (1) (unaudited) Balance as of December 31, 2014 7,240,419 $ 215.56 Granted 0 N/A Exercised (1,736,987 ) $ 191.10 Forfeited/canceled (266,388 ) $ 311.31 Balance as of September 30, 2015 5,237,044 $ 218.80 3.8 $ 2,120 Exercisable as of September 30, 2015 4,768,764 $ 209.30 3.6 $ 1,976 Exercisable as of September 30, 2015 and expected to vest thereafter (2) 5,181,225 $ 217.75 3.8 $ 2,103 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $638.37 and $608.42 for our Class A common stock and Class C capital stock, respectively, on September 30, 2015 . (2) Options expected to vest reflect an estimated forfeiture rate. As of September 30, 2015 , there was $18 million of unrecognized compensation cost related to outstanding Google employee stock options. This amount is expected to be recognized over a weighted-average period of 0.8 years . To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation expense related to these awards will be different from our expectations. The following table summarizes the activities for our unvested restricted stock units (RSUs) for the nine months ended September 30, 2015 : Unvested Restricted Stock Units Number of Weighted- (unaudited) Unvested as of December 31, 2014 24,619,549 $ 487.80 Granted 13,116,639 $ 530.39 Vested (8,322,365 ) $ 443.27 Forfeited/canceled (1,757,674 ) $ 487.20 Unvested as of September 30, 2015 27,656,149 $ 520.97 Expected to vest after September 30, 2015 (1) 24,359,536 $ 520.97 (1) RSUs expected to vest reflect an estimated forfeiture rate. As of September 30, 2015 , there was $11.7 billion of unrecognized compensation cost related to unvested Google employee RSUs. This amount is expected to be recognized over a weighted-average period of 2.8 years . To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation expense related to these awards will be different from our expectations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes. Our total gross unrecognized tax benefits were $3,294 million and $3,918 million as of December 31, 2014 and September 30, 2015 . Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $2,909 million and $3,385 million as of December 31, 2014 and September 30, 2015 . Our existing tax positions will continue to generate an increase in liabilities for unrecognized tax benefits. Our effective tax rate is lower than the U.S. statutory rate primarily because of more earnings realized in countries that have lower statutory tax rates. Our effective tax rate in the future will depend on the portion of our profits earned within and outside the United States. Our effective tax rate could fluctuate significantly on a quarterly basis and could be adversely affected to the extent earnings are lower than anticipated in countries that have lower statutory rates and higher than anticipated in countries that have higher statutory rates. Our effective tax rate could also fluctuate due to the net gains and losses recognized by legal entities on certain hedges and related hedged intercompany and other transactions under our foreign exchange risk management program, by changes in the valuation of our deferred tax assets or liabilities, or by changes in tax laws, regulations, or accounting principles, as well as certain discrete items. In addition, we are subject to the continuous examination of our income tax returns by the IRS and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. We believe that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner not consistent with management's expectations, we could be required to adjust its provision for income taxes in the period such resolution occurs. Although timing of the resolution and/or closure of audits is not certain, we do not believe it is reasonably possible that the unrecognized tax benefits will materially change in the next 12 months. We have received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend against any and all such claims as presented. While we believe it is more likely than not that our tax position will be sustained, it is reasonably possible that we will have future obligations related to these matters. On July 27, 2015, the United States Tax Court, in an opinion in Altera Corp. v. Commissioner, invalidated the portion of the Treasury regulations issued under IRC Section 482 requiring related-party participants in a cost-sharing arrangement to share stock-based compensation costs. The opinion is subject to being issued as a final decision and is also subject to appeal by the Internal Revenue Service. The net impact to our consolidated financial statements was not material. We will continue to monitor developments related to the case and the potential impact on our consolidated financial statements. |
Information about Segments and
Information about Segments and Geographic Areas | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Information about Segments and Geographic Areas | Information about Segments and Geographic Areas Subsequent to the completion of our sale of the Motorola Mobile business on October 29, 2014, we operate as a single operating segment. Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. In conjunction with the reorganization as discussed in Note 1, we are implementing a new operating structure which is being introduced in phases. For financial reporting purposes, we expect to disclose our Google business as a single segment and all other Alphabet businesses combined as Other Bets beginning in the fourth quarter of 2015. Revenues by geography are based on the billing addresses of our customers. The following tables set forth revenues and long-lived assets by geographic area (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 (unaudited) Revenues: United States (1) $ 7,324 $ 8,748 $ 21,177 $ 24,517 United Kingdom 1,627 1,792 4,826 5,145 Rest of the world (1) 7,572 8,135 21,895 23,998 Total revenues $ 16,523 $ 18,675 $ 47,898 $ 53,660 (1) In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities. We revised the classification of such revenues between Rest of the world and U.S. for prior periods. Please refer to Note 1 and Note 15 for further information. As of As of (unaudited) Long-lived assets: United States $ 37,355 $ 42,761 International 13,093 13,417 Total long-lived assets $ 50,448 $ 56,178 |
Revisions
Revisions | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities, and as a consequence, we revised our income tax expense for periods beginning in 2008 through the first quarter of 2015 in the cumulative amount of $711 million . We have evaluated the materiality of the income tax expense impact quantitatively and qualitatively and concluded it was not material to any of the prior periods impacted and that correction of income tax expense as an out of period adjustment in the quarter ended June 30, 2015 would not be material to our consolidated financial statements for the year ending December 31, 2015. Consolidated revenues are not impacted. We elected to revise previously issued consolidated financial statements for the periods impacted to correct the effect of this immaterial income tax expense underaccrual for the corresponding periods. The following table presents the impact of these corrections on affected Consolidated Balance Sheet line items as of December 31, 2014 (in millions; unaudited): As of December 31, 2014 As Previously Reported Adjustment As Revised Selected Balance Sheets Data: Income tax receivable, net $ 1,298 $ (707 ) $ 591 Total current assets 80,685 (707 ) 79,978 Total assets 131,133 (707 ) 130,426 Income taxes payable, non-current 3,407 (67 ) 3,340 Retained earnings 75,706 (640 ) 75,066 Total stockholders' equity 104,500 (640 ) 103,860 Total liabilities and stockholders' equity $ 131,133 $ (707 ) $ 130,426 The following table presents the impact of these corrections on affected Consolidated Statements of Income line items for the three and nine months ended September 30, 2014 and the three months ended March 31, 2015 (in millions, except per share amounts; unaudited): Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Income Data: Provision for income taxes $ 859 $ 74 $ 933 $ 2,594 $ 226 $ 2,820 Net income from continuing operations 2,998 (74 ) 2,924 10,138 (226 ) 9,912 Net income $ 2,813 $ (74 ) $ 2,739 $ 9,687 $ (226 ) $ 9,461 Basic net income per share from continuing operations $ 4.42 $ (0.10 ) $ 4.32 $ 15.02 $ (0.33 ) $ 14.69 Basic net income per share 4.15 (0.10 ) 4.05 14.35 (0.33 ) 14.02 Diluted net income per share from continuing operations $ 4.36 $ (0.11 ) $ 4.25 $ 14.77 $ (0.33 ) $ 14.44 Diluted net income per share 4.09 (0.11 ) 3.98 14.11 (0.33 ) 13.78 Three Months Ended March 31, 2015 As Previously Reported Adjustment As Revised Selected Statements of Income Data: Provision for income taxes $ 1,018 $ 71 $ 1,089 Net income from continuing operations 3,586 (71 ) 3,515 Net income $ 3,586 $ (71 ) $ 3,515 Basic net income per share from continuing operations $ 5.27 $ (0.11 ) $ 5.16 Basic net income per share 5.27 (0.11 ) 5.16 Diluted net income per share from continuing operations $ 5.20 $ (0.10 ) $ 5.10 Diluted net income per share 5.20 (0.10 ) 5.10 The following table presents the impact of these corrections on affected Consolidated Statements of Comprehensive Income line items for the three and nine months ended September 30, 2014 and the three months ended March 31, 2015 (in millions; unaudited): Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Comprehensive Income Data: Net income $ 2,813 $ (74 ) $ 2,739 $ 9,687 $ (226 ) $ 9,461 Comprehensive income 2,229 (74 ) 2,155 9,480 (226 ) 9,254 Three Months Ended March 31, 2015 As Previously Reported Adjustment As Revised Selected Statements of Comprehensive Income Data: Net income $ 3,586 $ (71 ) $ 3,515 Comprehensive income 3,188 (71 ) 3,117 The following table presents the impact of these corrections on affected Consolidated Statements of Cash Flows line items for the nine months ended September 30, 2014 and the three months ended March 31, 2015 (in millions; unaudited): Nine Months Ended September 30, 2014 Three Months Ended March 31, 2015 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Cash Flows Data: Net income $ 9,687 $ (226 ) $ 9,461 $ 3,586 $ (71 ) $ 3,515 Changes in income taxes, net 351 226 577 756 71 827 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 2, 2015, Google implemented a legal reorganization, which resulted in Alphabet owning all of the outstanding stock of Google. Consequently, Google became a direct, wholly owned subsidiary of Alphabet. Each share of each class of Google stock issued and outstanding immediately prior to the legal reorganization automatically converted into an equivalent corresponding share of Alphabet stock, and Google’s stockholders immediately prior to the consummation of the legal reorganization became stockholders of Alphabet. In October 2015, the board of directors of Alphabet authorized the company to repurchase up to $5,099,019,513.59 of its Class C capital stock, commencing in the fourth quarter of 2015. The repurchase is expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. |
Google Inc. and Summary of Si24
Google Inc. and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations | We were incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. We generate revenues primarily by delivering relevant, cost-effective online advertising. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of Google Inc. and our subsidiaries. All intercompany balances and transactions have been eliminated. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying Consolidated Balance Sheet as of September 30, 2015 , the Consolidated Statements of Income for the three and nine months ended September 30, 2014 and 2015 , the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2014 and 2015 , and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2015 are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position as of September 30, 2015 , our results of operations for the three and nine months ended September 30, 2014 and 2015 , and our cash flows for the nine months ended September 30, 2014 and 2015 . The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 . These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 , filed with the SEC on February 6, 2015. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash, Cash Equivalents and Short-term Investments | The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of December 31, 2014 and September 30, 2015 (in millions): As of December 31, 2014 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable Cash $ 9,863 $ 0 $ 0 $ 9,863 $ 9,863 $ 0 Level 1: Money market and other funds 2,532 0 0 2,532 2,532 0 U.S. government notes 15,320 37 (4 ) 15,353 1,128 14,225 Marketable equity securities 988 428 (64 ) 1,352 0 1,352 18,840 465 (68 ) 19,237 3,660 15,577 Level 2: Time deposits (1) 2,409 0 0 2,409 2,309 100 Money market and other funds (2) 1,762 0 0 1,762 1,762 0 Fixed-income bond funds (3) 385 0 (38 ) 347 0 347 U.S. government agencies 2,327 8 (1 ) 2,334 750 1,584 Foreign government bonds 1,828 22 (10 ) 1,840 0 1,840 Municipal securities 3,370 33 (6 ) 3,397 3 3,394 Corporate debt securities 11,499 114 (122 ) 11,491 0 11,491 Agency mortgage-backed securities 8,196 109 (42 ) 8,263 0 8,263 Asset-backed securities 3,456 1 (5 ) 3,452 0 3,452 35,232 287 (224 ) 35,295 4,824 30,471 Total $ 63,935 $ 752 $ (292 ) $ 64,395 $ 18,347 $ 46,048 As of September 30, 2015 Adjusted Cost Gross Unrealized Gains Gross Fair Cash and Cash Equivalents Marketable (unaudited) Cash $ 10,986 $ 0 $ 0 $ 10,986 $ 10,986 $ 0 Level 1: Money market and other funds 3,668 0 0 3,668 3,668 0 U.S. government notes 18,146 114 0 18,260 0 18,260 Marketable equity securities 1,014 196 (315 ) 895 0 895 22,828 310 (315 ) 22,823 3,668 19,155 Level 2: Time deposits (1) 3,434 0 0 3,434 1,458 1,976 Money market and other funds (2) 1,855 0 0 1,855 1,855 0 Fixed-income bond funds (3) 370 0 (84 ) 286 0 286 U.S. government agencies 1,331 6 0 1,337 100 1,237 Foreign government bonds 2,422 17 (23 ) 2,416 0 2,416 Municipal securities 3,629 37 (4 ) 3,662 0 3,662 Corporate debt securities 13,536 79 (239 ) 13,376 1 13,375 Agency mortgage-backed securities 9,434 101 (24 ) 9,511 0 9,511 Asset-backed securities 3,084 2 (5 ) 3,081 0 3,081 39,095 242 (379 ) 38,958 3,414 35,544 Total $ 72,909 $ 552 $ (694 ) $ 72,767 $ 18,068 $ 54,699 (1) The majority of our time deposits are foreign deposits. (2) The balances as of December 31, 2014 and September 30, 2015 were related to cash collateral received in connection with our securities lending program, which was invested in reverse repurchase agreements maturing within three months. See section titled " Securities Lending Program " below for further discussion of this program. (3) Fixed-income bond funds consist of mutual funds that primarily invest in corporate and government bonds. |
Investments Classified by Contractual Maturity Date | The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): As of (unaudited) Due in 1 year $ 8,525 Due in 1 year through 5 years 27,725 Due in 5 years through 10 years 7,244 Due after 10 years 10,024 Total $ 53,518 |
Schedule of Other Investments Not Readily Marketable | The following table presents reconciliations for our assets measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3) (in millions): Level 3 (unaudited) Balance as of December 31, 2014 $ 90 Purchases, issuances, and settlements (1) 901 Balance as of September 30, 2015 $ 991 (1) Purchases of securities included our $900 million investment in SpaceX, a space exploration and space transport company, made during January 2015. |
Schedule of Unrealized Loss on Investments | The following tables present gross unrealized losses and fair values for those marketable investments that were in an unrealized loss position as of December 31, 2014 and September 30, 2015 , 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, 2014 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized U.S. government notes $ 4,490 $ (4 ) $ 0 $ 0 $ 4,490 $ (4 ) U.S. government agencies 830 (1 ) 0 0 830 (1 ) Foreign government bonds 255 (7 ) 43 (3 ) 298 (10 ) Municipal securities 877 (3 ) 174 (3 ) 1,051 (6 ) Corporate debt securities 5,851 (112 ) 225 (10 ) 6,076 (122 ) Agency mortgage-backed securities 609 (1 ) 2,168 (41 ) 2,777 (42 ) Asset-backed securities 2,388 (4 ) 174 (1 ) 2,562 (5 ) Fixed-income bond funds 347 (38 ) 0 0 347 (38 ) Marketable equity securities 690 (64 ) 0 0 690 (64 ) Total $ 16,337 $ (234 ) $ 2,784 $ (58 ) $ 19,121 $ (292 ) As of September 30, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized (unaudited) Foreign government bonds $ 873 $ (19 ) $ 27 $ (4 ) $ 900 $ (23 ) Municipal securities 356 (3 ) 23 (1 ) 379 (4 ) Corporate debt securities 7,152 (187 ) 651 (52 ) 7,803 (239 ) Agency mortgage-backed securities 1,355 (8 ) 739 (16 ) 2,094 (24 ) Asset-backed securities 1,650 (4 ) 230 (1 ) 1,880 (5 ) Fixed-income bond funds 0 0 286 (84 ) 286 (84 ) Marketable equity securities 790 (315 ) 0 0 790 (315 ) Total $ 12,176 $ (536 ) $ 1,956 $ (158 ) $ 14,132 $ (694 ) |
Schedule of Repurchase Agreements | Our securities lending transactions were accounted for as secured borrowings with significant investment categories as follows (in millions): As of September 30, 2015 Remaining Contractual Maturity of the Agreements Securities Lending Transactions Overnight and Continuous Up to 30 days 30 - 90 Days Greater Than 90 Days Total (unaudited) U.S. government notes $ 1,779 $ 1,001 $ 0 $ 101 $ 2,881 U.S. government agencies 192 0 0 0 192 Corporate debt securities 193 0 0 0 193 Total $ 2,164 $ 1,001 $ 0 $ 101 $ 3,266 Gross amount of recognized liabilities for securities lending in offsetting disclosure $ 3,266 Amounts related to agreements not included in securities lending in offsetting disclosure $ 0 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of our outstanding derivative instruments were as follows (in millions): As of December 31, 2014 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 Prepaid revenue share, expenses and other assets, current and non-current $ 851 $ 0 $ 851 Interest rate contracts Prepaid revenue share, expenses and other assets, current and non-current 1 0 1 Total $ 852 $ 0 $ 852 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other current liabilities $ 0 $ 3 $ 3 Interest rate contracts Accrued expenses and other liabilities, current and non-current 1 0 1 Total $ 1 $ 3 $ 4 As of September 30, 2015 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 Prepaid revenue share, expenses and other assets, current and non-current $ 545 $ 1 $ 546 Total $ 545 $ 1 $ 546 Derivative Liabilities: Level 2: Foreign exchange contracts Accrued expenses and other current liabilities $ 0 $ 3 $ 3 Interest rate contracts Accrued expenses and other liabilities, current and non-current 6 1 7 Total $ 6 $ 4 $ 10 |
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 (OCI) is summarized below (in millions): Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship 2014 2015 2014 2015 (unaudited) Foreign exchange contracts $ 436 $ 97 $ 458 $ 813 Interest rate contracts 0 0 (31 ) 0 Total $ 436 $ 97 $ 427 $ 813 Gains Reclassified from AOCI into Income (Effective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship Income Statement Location 2014 2015 2014 2015 (unaudited) Foreign exchange contracts Revenues $ 10 $ 286 $ 24 $ 1,068 Interest rate contracts Interest and other income, net 1 1 2 3 Total $ 11 $ 287 $ 26 $ 1,071 Gains (Losses) Recognized in Income on Derivatives (1) (Amount Excluded from Effectiveness Testing and Ineffective Portion) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Cash Flow Hedging Relationship Income Statement Location 2014 2015 2014 2015 (unaudited) Foreign exchange contracts Interest and other income, net $ (52 ) $ (63 ) $ (186 ) $ (230 ) Interest rate contracts Interest and other income, net 0 0 4 0 Total $ (52 ) $ (63 ) $ (182 ) $ (230 ) (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) Three Months Ended Nine Months Ended September 30, September 30, Derivatives in Fair Value Hedging Relationship Income Statement Location 2014 2015 2014 2015 (unaudited) Foreign Exchange Hedges: Foreign exchange contracts Interest and other income, net $ 73 $ 72 $ 52 $ 139 Hedged item Interest and other income, net (75 ) (73 ) (58 ) (144 ) Total $ (2 ) $ (1 ) $ (6 ) $ (5 ) Interest Rate Hedges: Interest rate contracts Interest and other income, net $ 0 $ (5 ) $ 0 $ (6 ) Hedged item Interest and other income, net 0 5 0 6 Total $ 0 $ 0 $ 0 $ 0 (2) Losses related to the amount excluded from effectiveness testing of the hedges were $2 million and $6 million for the three and nine months ended September 30, 2014 and $1 million and $5 million for the three and nine months ended September 30, 2015 . The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions): Gains (Losses) Recognized in Income on Derivatives Three Months Ended Nine Months Ended September 30, September 30, Derivatives Not Designated As Hedging Instruments Income Statement Location 2014 2015 2014 2015 (unaudited) Foreign exchange contracts Interest and other income, net and net loss from discontinued operations $ 172 $ 150 $ 59 $ 241 Interest rate contracts Interest and other income, net 2 3 2 0 Total $ 174 $ 153 $ 61 $ 241 |
Offsetting Assets | As of December 31, 2014 and September 30, 2015 , information related to these offsetting arrangements was as follows (in millions): Offsetting of Assets As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description 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 $ 852 $ 0 $ 852 $ (1 ) (1) $ (251 ) $ (412 ) $ 188 Reverse repurchase agreements 2,637 0 2,637 (2) 0 0 (2,637 ) 0 Total $ 3,489 $ 0 $ 3,489 $ (1 ) $ (251 ) $ (3,049 ) $ 188 As of September 30, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description 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 $ 546 $ 0 $ 546 $ (2 ) (1) $ (93 ) $ (303 ) $ 148 Reverse repurchase agreements 2,255 0 2,255 (2) 0 0 (2,255 ) 0 Total $ 2,801 $ 0 $ 2,801 $ (2 ) $ (93 ) $ (2,558 ) $ 148 (1) The balances as of December 31, 2014 and September 30, 2015 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. (2) The balances as of December 31, 2014 and September 30, 2015 included $1,762 million and $1,855 million recorded in cash and cash equivalents, respectively, and $875 million and $400 million recorded in receivable under reverse repurchase agreements, respectively. |
Offsetting Liabilities | Offsetting of Liabilities As of December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description 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 $ 4 $ 0 $ 4 $ (1 ) (3) $ 0 $ 0 $ 3 Securities lending agreements 2,778 0 2,778 0 0 (2,740 ) 38 Total $ 2,782 $ 0 $ 2,782 $ (1 ) $ 0 $ (2,740 ) $ 41 As of September 30, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset Description 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 $ 10 $ 0 $ 10 $ (2 ) (3) $ (4 ) $ 0 $ 4 Securities lending agreements 3,266 0 3,266 0 0 (3,245 ) 21 Total $ 3,276 $ 0 $ 3,276 $ (2 ) $ (4 ) $ (3,245 ) $ 25 (3) The balances as of December 31, 2014 and September 30, 2015 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The total outstanding Notes are summarized below (in millions): As of As of (unaudited) Short-Term Portion of Long-Term Debt 2.125% Notes due on May 19, 2016 (1) $ 0 $ 999 Capital Lease Obligation 10 238 Total $ 10 $ 1,237 Long-Term Debt 2.125% Notes due on May 19, 2016 $ 1,000 $ 0 3.625% Notes due on May 19, 2021 1,000 1,000 3.375% Notes due on February 25, 2024 1,000 1,000 Unamortized discount for the Notes above (8 ) (6 ) Subtotal 2,992 1,994 Capital Lease Obligation 236 0 Total $ 3,228 $ 1,994 (1) The outstanding Notes as of September 30, 2015 are net of unamortized discount of $1 million . |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Balance Sheet Components Disclosure [Abstract] | |
Property and Equipment | Property and equipment consisted of the following (in millions): As of As of (unaudited) Land and buildings $ 13,326 $ 15,353 Information technology assets 10,918 13,354 Construction in progress 6,555 7,799 Leasehold improvements 1,868 2,321 Furniture and fixtures 79 81 Property and equipment, gross 32,746 38,908 Less: accumulated depreciation and amortization (8,863 ) (10,570 ) Property and equipment, net $ 23,883 $ 28,338 |
Schedule of Notes Receivable | Based on the general market conditions and the credit quality of Lenovo, we discounted the Note Receivable at an effective interest rate of 4.5% as shown in the table below (in millions): As of As of (unaudited) Principal of the Note Receivable $ 1,500 $ 1,500 Less: unamortized discount for the Note Receivable (175 ) (129 ) Total $ 1,325 $ 1,371 |
Components of Accumulated Other Comprehensive Income | 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 on Cash Flow Hedges Total Balance as of December 31, 2013 $ 16 $ 50 $ 59 $ 125 Other comprehensive income (loss) before reclassifications (623 ) 250 304 (69 ) Amounts reclassified from AOCI 0 (122 ) (16 ) (138 ) Other comprehensive income (loss) (623 ) 128 288 (207 ) Balance as of September 30, 2014 $ (607 ) $ 178 $ 347 $ (82 ) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on Available-for-Sale Investments Unrealized Gains on Cash Flow Hedges Total Balance as of December 31, 2014 $ (980 ) $ 421 $ 586 $ 27 Other comprehensive income (loss) before reclassifications (850 ) (504 ) 580 (774 ) Amounts reclassified from AOCI 0 (73 ) (772 ) (845 ) Other comprehensive income (loss) (850 ) (577 ) (192 ) (1,619 ) Balance as of September 30, 2015 $ (1,830 ) $ (156 ) $ 394 $ (1,592 ) |
Schedule of Effect on Net Income of Amounts Reclassified from Accumulated OCI | 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 September 30, Nine Months Ended September 30, AOCI Components Location 2014 2015 2014 2015 Unrealized gains (losses) on available-for-sale investments Interest and other income, net $ 18 $ (6 ) $ 140 $ 79 Provision for income taxes (3 ) 2 (18 ) (6 ) Net of tax $ 15 $ (4 ) $ 122 $ 73 Unrealized gains on cash flow hedges Foreign exchange contracts Revenue $ 10 $ 286 $ 24 $ 1,068 Interest rate contracts Interest and other income, net 1 1 2 3 Provision for income taxes (4 ) (75 ) (10 ) (299 ) Net of tax $ 7 $ 212 $ 16 $ 772 Total amount reclassified, net of tax $ 22 $ 208 $ 138 $ 845 |
Goodwill and Other Intangible28
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2015 were as follows (in millions, unaudited): Balance as of December 31, 2014 $ 15,599 Goodwill acquired 135 Goodwill adjustment (59 ) Balance as of September 30, 2015 $ 15,675 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Information regarding our purchased intangible assets was as follows (in millions): As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Value Patents and developed technology $ 6,547 $ 2,513 $ 4,034 Customer relationships 1,410 1,168 242 Trade names and other 696 365 331 Total $ 8,653 $ 4,046 $ 4,607 As of September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value (unaudited) Patents and developed technology $ 6,595 $ 3,037 $ 3,558 Customer relationships 1,374 1,209 165 Trade names and other 738 438 300 Total $ 8,707 $ 4,684 $ 4,023 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2015 , expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter was as follows (in millions, unaudited): Remainder of 2015 $ 215 2016 804 2017 727 2018 640 2019 530 Thereafter 1,107 $ 4,023 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Motorola Mobile | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Financial Results and Aggregate Carrying Amounts of Major Assets and Liabilities of Businesses Disposed of | The following table presents financial results of the Motorola Mobile business for the three and nine months ended September 30, 2014 , which were presented as net loss from discontinued operations (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2014 2014 Revenues $ 1,718 $ 4,901 Loss from discontinued operations before income taxes (217 ) (590 ) Benefits from income taxes 32 139 Net loss from discontinued operations $ (185 ) $ (451 ) |
Interest and Other Income, Net
Interest and Other Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of interest and other income, net, were as follows (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 Interest income $ 187 $ 259 $ 524 $ 725 Interest expense (25 ) (26 ) (76 ) (78 ) Realized gains (losses) on marketable securities, net 18 (6 ) 140 79 Foreign currency exchange losses, net (67 ) (100 ) (269 ) (261 ) Realized gain on equity interest 0 0 126 0 Realized gains (losses) on non-marketable investments, net (6 ) 7 111 (111 ) Other income, net 26 49 79 117 Interest and other income, net $ 133 $ 183 $ 635 $ 471 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): Three Months Ended September 30, 2014 2015 (unaudited) Class A Class B Class C Class A Class B Class C Basic net income (loss) per share: Numerator Allocation of undistributed earnings - continuing operations $ 1,226 $ 236 $ 1,462 $ 1,683 $ 298 $ 1,998 Allocation of undistributed earnings - discontinued operations (78 ) (15 ) (92 ) 0 0 0 Total $ 1,148 $ 221 $ 1,370 $ 1,683 $ 298 $ 1,998 Denominator Number of shares used in per share computation 283,850 54,623 338,624 290,368 51,369 344,698 Basic net income (loss) per share: Continuing operations $ 4.32 $ 4.32 $ 4.32 $ 5.80 $ 5.80 $ 5.80 Discontinued operations (0.27 ) (0.27 ) (0.27 ) 0.00 0.00 0.00 Basic net income per share $ 4.05 $ 4.05 $ 4.05 $ 5.80 $ 5.80 $ 5.80 Diluted net income (loss) per share: Numerator Allocation of undistributed earnings for basic computation - continuing operations $ 1,226 $ 236 $ 1,462 $ 1,683 $ 298 $ 1,998 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 236 0 0 298 0 0 Reallocation of undistributed earnings (2 ) (4 ) 2 (10 ) (4 ) 10 Allocation of undistributed earnings - continuing operations $ 1,460 $ 232 $ 1,464 $ 1,971 $ 294 $ 2,008 Allocation of undistributed earnings for basic computation - discontinued operations (78 ) (15 ) (92 ) 0 0 0 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares (15 ) 0 0 0 0 0 Reallocation of undistributed earnings 1 0 (1 ) 0 0 0 Allocation of undistributed earnings - discontinued operations $ (92 ) $ (15 ) $ (93 ) $ 0 $ 0 $ 0 Denominator Number of shares used in basic computation 283,850 54,623 338,624 290,368 51,369 344,698 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 54,623 0 0 51,369 0 0 Employee stock options 1,985 0 1,962 1,342 0 1,300 Restricted stock units and other contingently issuable shares 3,062 0 4,109 835 0 4,407 Number of shares used in per share computation 343,520 54,623 344,695 343,914 51,369 350,405 Diluted net income (loss) per share: Continuing operations $ 4.25 $ 4.25 $ 4.25 $ 5.73 $ 5.73 $ 5.73 Discontinued operations (0.27 ) (0.27 ) (0.27 ) 0.00 0.00 0.00 Diluted net income per share $ 3.98 $ 3.98 $ 3.98 $ 5.73 $ 5.73 $ 5.73 Nine Months Ended September 30, 2014 2015 (unaudited) Class A Class B Class C Class A Class B Class C Basic net income (loss) per share: Numerator Adjustment Payment to Class C capital stockholders - continuing operations $ 0 $ 0 $ 0 $ 0 $ 0 $ 522 Allocation of undistributed earnings - continuing operations 4,142 813 4,957 4,604 831 5,468 Allocation of undistributed earnings - discontinued operations (188 ) (37 ) (226 ) 0 0 0 Total $ 3,954 $ 776 $ 4,731 $ 4,604 $ 831 $ 5,990 Denominator Number of shares used in per share computation 282,014 55,357 337,562 288,686 52,108 342,862 Basic net income (loss) per share: Continuing operations $ 14.69 $ 14.69 $ 14.69 $ 15.95 $ 15.95 $ 17.47 Discontinued operations (0.67 ) (0.67 ) (0.67 ) 0.00 0.00 0.00 Basic net income per share $ 14.02 $ 14.02 $ 14.02 $ 15.95 $ 15.95 $ 17.47 Diluted net income (loss) per share: Numerator Adjustment Payment to Class C capital stockholders - continuing operations $ 0 $ 0 $ 0 $ 0 $ 0 $ 522 Allocation of undistributed earnings for basic computation - continuing operations $ 4,142 $ 813 $ 4,957 $ 4,604 $ 831 $ 5,468 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares 813 0 0 831 0 0 Reallocation of undistributed earnings (5 ) (14 ) 5 (24 ) (9 ) 24 Allocation of undistributed earnings - continuing operations $ 4,950 $ 799 $ 4,962 $ 5,411 $ 822 $ 5,492 Allocation of undistributed earnings for basic computation - discontinued operations (188 ) (37 ) (226 ) 0 0 0 Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares (37 ) 0 0 0 0 0 Reallocation of undistributed earnings 0 1 0 0 0 0 Allocation of undistributed earnings - discontinued operations $ (225 ) $ (36 ) $ (226 ) $ 0 $ 0 $ 0 Denominator Number of shares used in basic computation 282,014 55,357 337,562 288,686 52,108 342,862 Weighted-average effect of dilutive securities Add: Conversion of Class B to Class A common shares outstanding 55,357 0 0 52,108 0 0 Employee stock options 2,139 0 2,127 1,527 0 1,484 Restricted stock units and other contingently issuable shares 3,362 0 4,036 893 0 4,005 Number of shares used in per share computation 342,872 55,357 343,725 343,214 52,108 348,351 Diluted net income (loss) per share: Continuing operations $ 14.44 $ 14.44 $ 14.44 $ 15.77 $ 15.77 $ 17.27 Discontinued operations (0.66 ) (0.66 ) (0.66 ) 0.00 0.00 0.00 Diluted net income per share $ 13.78 $ 13.78 $ 13.78 $ 15.77 $ 15.77 $ 17.27 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents our aggregate stock-based compensation expense by type of costs and expenses per the Consolidated Statements of Income (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 (unaudited) Cost of revenues $ 169 $ 231 $ 364 $ 554 Research and development 666 741 1,569 1,939 Sales and marketing 197 250 502 651 General and administrative 223 210 539 623 Discontinued operations 35 0 118 0 Total stock-based compensation expense $ 1,290 $ 1,432 $ 3,092 $ 3,767 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the activities for our stock options for the nine months ended September 30, 2015 : Options Outstanding Number of Weighted- Weighted- Aggregate (1) (unaudited) Balance as of December 31, 2014 7,240,419 $ 215.56 Granted 0 N/A Exercised (1,736,987 ) $ 191.10 Forfeited/canceled (266,388 ) $ 311.31 Balance as of September 30, 2015 5,237,044 $ 218.80 3.8 $ 2,120 Exercisable as of September 30, 2015 4,768,764 $ 209.30 3.6 $ 1,976 Exercisable as of September 30, 2015 and expected to vest thereafter (2) 5,181,225 $ 217.75 3.8 $ 2,103 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $638.37 and $608.42 for our Class A common stock and Class C capital stock, respectively, on September 30, 2015 . (2) Options expected to vest reflect an estimated forfeiture rate. |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes the activities for our unvested restricted stock units (RSUs) for the nine months ended September 30, 2015 : Unvested Restricted Stock Units Number of Weighted- (unaudited) Unvested as of December 31, 2014 24,619,549 $ 487.80 Granted 13,116,639 $ 530.39 Vested (8,322,365 ) $ 443.27 Forfeited/canceled (1,757,674 ) $ 487.20 Unvested as of September 30, 2015 27,656,149 $ 520.97 Expected to vest after September 30, 2015 (1) 24,359,536 $ 520.97 (1) RSUs expected to vest reflect an estimated forfeiture rate. |
Information about Segments an33
Information about Segments and Geographic Areas (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-lived Assets by Geographical Areas | The following tables set forth revenues and long-lived assets by geographic area (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2014 2015 2014 2015 (unaudited) Revenues: United States (1) $ 7,324 $ 8,748 $ 21,177 $ 24,517 United Kingdom 1,627 1,792 4,826 5,145 Rest of the world (1) 7,572 8,135 21,895 23,998 Total revenues $ 16,523 $ 18,675 $ 47,898 $ 53,660 (1) In the second quarter of 2015, we identified an incorrect classification of certain revenues between legal entities. We revised the classification of such revenues between Rest of the world and U.S. for prior periods. Please refer to Note 1 and Note 15 for further information. As of As of (unaudited) Long-lived assets: United States $ 37,355 $ 42,761 International 13,093 13,417 Total long-lived assets $ 50,448 $ 56,178 |
Revisions (Tables)
Revisions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule Prior Period Adjustments | The following table presents the impact of these corrections on affected Consolidated Balance Sheet line items as of December 31, 2014 (in millions; unaudited): As of December 31, 2014 As Previously Reported Adjustment As Revised Selected Balance Sheets Data: Income tax receivable, net $ 1,298 $ (707 ) $ 591 Total current assets 80,685 (707 ) 79,978 Total assets 131,133 (707 ) 130,426 Income taxes payable, non-current 3,407 (67 ) 3,340 Retained earnings 75,706 (640 ) 75,066 Total stockholders' equity 104,500 (640 ) 103,860 Total liabilities and stockholders' equity $ 131,133 $ (707 ) $ 130,426 The following table presents the impact of these corrections on affected Consolidated Statements of Income line items for the three and nine months ended September 30, 2014 and the three months ended March 31, 2015 (in millions, except per share amounts; unaudited): Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Income Data: Provision for income taxes $ 859 $ 74 $ 933 $ 2,594 $ 226 $ 2,820 Net income from continuing operations 2,998 (74 ) 2,924 10,138 (226 ) 9,912 Net income $ 2,813 $ (74 ) $ 2,739 $ 9,687 $ (226 ) $ 9,461 Basic net income per share from continuing operations $ 4.42 $ (0.10 ) $ 4.32 $ 15.02 $ (0.33 ) $ 14.69 Basic net income per share 4.15 (0.10 ) 4.05 14.35 (0.33 ) 14.02 Diluted net income per share from continuing operations $ 4.36 $ (0.11 ) $ 4.25 $ 14.77 $ (0.33 ) $ 14.44 Diluted net income per share 4.09 (0.11 ) 3.98 14.11 (0.33 ) 13.78 Three Months Ended March 31, 2015 As Previously Reported Adjustment As Revised Selected Statements of Income Data: Provision for income taxes $ 1,018 $ 71 $ 1,089 Net income from continuing operations 3,586 (71 ) 3,515 Net income $ 3,586 $ (71 ) $ 3,515 Basic net income per share from continuing operations $ 5.27 $ (0.11 ) $ 5.16 Basic net income per share 5.27 (0.11 ) 5.16 Diluted net income per share from continuing operations $ 5.20 $ (0.10 ) $ 5.10 Diluted net income per share 5.20 (0.10 ) 5.10 The following table presents the impact of these corrections on affected Consolidated Statements of Comprehensive Income line items for the three and nine months ended September 30, 2014 and the three months ended March 31, 2015 (in millions; unaudited): Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Comprehensive Income Data: Net income $ 2,813 $ (74 ) $ 2,739 $ 9,687 $ (226 ) $ 9,461 Comprehensive income 2,229 (74 ) 2,155 9,480 (226 ) 9,254 Three Months Ended March 31, 2015 As Previously Reported Adjustment As Revised Selected Statements of Comprehensive Income Data: Net income $ 3,586 $ (71 ) $ 3,515 Comprehensive income 3,188 (71 ) 3,117 The following table presents the impact of these corrections on affected Consolidated Statements of Cash Flows line items for the nine months ended September 30, 2014 and the three months ended March 31, 2015 (in millions; unaudited): Nine Months Ended September 30, 2014 Three Months Ended March 31, 2015 As Previously Reported Adjustment As Revised As Previously Reported Adjustment As Revised Selected Statements of Cash Flows Data: Net income $ 9,687 $ (226 ) $ 9,461 $ 3,586 $ (71 ) $ 3,515 Changes in income taxes, net 351 226 577 756 71 827 |
Google Inc. and Summary of Si35
Google Inc. and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | Mar. 31, 2015USD ($) |
Adjustment | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Cumulative adjustment to income tax expense (benefit) | $ 711 |
Financial Instruments (Cash, Ca
Financial Instruments (Cash, Cash Equivalents and Marketable Securities Measured at Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Value By Significant Investment Category) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | $ 72,909 | $ 63,935 | |
Gross Unrealized Gains | 552 | 752 | |
Gross Unrealized Losses | (694) | (292) | |
Fair Value | 72,767 | 64,395 | |
Cash and Cash Equivalents | 18,068 | 18,347 | $ 15,605 |
Marketable Securities | 54,699 | 46,048 | |
Cash | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 10,986 | 9,863 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 10,986 | 9,863 | |
Cash and Cash Equivalents | 10,986 | 9,863 | |
Marketable Securities | 0 | 0 | |
Level 1 | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 22,828 | 18,840 | |
Gross Unrealized Gains | 310 | 465 | |
Gross Unrealized Losses | (315) | (68) | |
Fair Value | 22,823 | 19,237 | |
Cash and Cash Equivalents | 3,668 | 3,660 | |
Marketable Securities | 19,155 | 15,577 | |
Level 1 | Money market and other funds | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 3,668 | 2,532 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 3,668 | 2,532 | |
Cash and Cash Equivalents | 3,668 | 2,532 | |
Marketable Securities | 0 | 0 | |
Level 1 | U.S. government notes | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 18,146 | 15,320 | |
Gross Unrealized Gains | 114 | 37 | |
Gross Unrealized Losses | 0 | (4) | |
Fair Value | 18,260 | 15,353 | |
Cash and Cash Equivalents | 0 | 1,128 | |
Marketable Securities | 18,260 | 14,225 | |
Level 1 | Marketable equity securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 1,014 | 988 | |
Gross Unrealized Gains | 196 | 428 | |
Gross Unrealized Losses | (315) | (64) | |
Fair Value | 895 | 1,352 | |
Cash and Cash Equivalents | 0 | 0 | |
Marketable Securities | 895 | 1,352 | |
Level 2 | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 39,095 | 35,232 | |
Gross Unrealized Gains | 242 | 287 | |
Gross Unrealized Losses | (379) | (224) | |
Fair Value | 38,958 | 35,295 | |
Cash and Cash Equivalents | 3,414 | 4,824 | |
Marketable Securities | 35,544 | 30,471 | |
Level 2 | Money market and other funds | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 1,855 | 1,762 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,855 | 1,762 | |
Cash and Cash Equivalents | 1,855 | 1,762 | |
Marketable Securities | 0 | 0 | |
Level 2 | Time deposits(1) | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 3,434 | 2,409 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 3,434 | 2,409 | |
Cash and Cash Equivalents | 1,458 | 2,309 | |
Marketable Securities | 1,976 | 100 | |
Level 2 | Fixed-income bond funds(3) | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 370 | 385 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (84) | (38) | |
Fair Value | 286 | 347 | |
Cash and Cash Equivalents | 0 | 0 | |
Marketable Securities | 286 | 347 | |
Level 2 | U.S. government agencies | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 1,331 | 2,327 | |
Gross Unrealized Gains | 6 | 8 | |
Gross Unrealized Losses | 0 | (1) | |
Fair Value | 1,337 | 2,334 | |
Cash and Cash Equivalents | 100 | 750 | |
Marketable Securities | 1,237 | 1,584 | |
Level 2 | Foreign government bonds | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 2,422 | 1,828 | |
Gross Unrealized Gains | 17 | 22 | |
Gross Unrealized Losses | (23) | (10) | |
Fair Value | 2,416 | 1,840 | |
Cash and Cash Equivalents | 0 | 0 | |
Marketable Securities | 2,416 | 1,840 | |
Level 2 | Municipal securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 3,629 | 3,370 | |
Gross Unrealized Gains | 37 | 33 | |
Gross Unrealized Losses | (4) | (6) | |
Fair Value | 3,662 | 3,397 | |
Cash and Cash Equivalents | 0 | 3 | |
Marketable Securities | 3,662 | 3,394 | |
Level 2 | Corporate debt securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 13,536 | 11,499 | |
Gross Unrealized Gains | 79 | 114 | |
Gross Unrealized Losses | (239) | (122) | |
Fair Value | 13,376 | 11,491 | |
Cash and Cash Equivalents | 1 | 0 | |
Marketable Securities | 13,375 | 11,491 | |
Level 2 | Agency mortgage-backed securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 9,434 | 8,196 | |
Gross Unrealized Gains | 101 | 109 | |
Gross Unrealized Losses | (24) | (42) | |
Fair Value | 9,511 | 8,263 | |
Cash and Cash Equivalents | 0 | 0 | |
Marketable Securities | 9,511 | 8,263 | |
Level 2 | Asset-backed securities | |||
Cash, cash equivalents and marketable securities [Line Items] | |||
Adjusted Cost | 3,084 | 3,456 | |
Gross Unrealized Gains | 2 | 1 | |
Gross Unrealized Losses | (5) | (5) | |
Fair Value | 3,081 | 3,452 | |
Cash and Cash Equivalents | 0 | 0 | |
Marketable Securities | $ 3,081 | $ 3,452 |
Financial Instruments (Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) $ in Millions | Sep. 30, 2015USD ($) |
Fair Value Disclosures [Abstract] | |
Due in 1 year | $ 8,525 |
Due in 1 year through 5 years | 27,725 |
Due in 5 years through 10 years | 7,244 |
Due after 10 years | 10,024 |
Total | $ 53,518 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Other Investments Not Readily Marketable) (Details) - Level 3 - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Jan. 31, 2015 | Sep. 30, 2015 | |
Other Investments Not Readily Marketable [Roll Forward] | ||
Balance as of December 31, 2014 | $ 90 | $ 90 |
Purchases, issuances, and settlements(1) | 901 | |
Balance as of September 30, 2015 | $ 991 | |
SpaceX | ||
Other Investments Not Readily Marketable [Roll Forward] | ||
Purchases, issuances, and settlements(1) | $ 900 |
Financial Instruments (Gross Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 12,176 | $ 16,337 |
Less than 12 Months, Unrealized Loss | (536) | (234) |
12 Months or Greater, Fair Value | 1,956 | 2,784 |
12 Months or Greater, Unrealized Loss | (158) | (58) |
Total Fair Value | 14,132 | 19,121 |
Total Unrealized Loss | (694) | (292) |
U.S. government notes | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,490 | |
Less than 12 Months, Unrealized Loss | (4) | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Loss | 0 | |
Total Fair Value | 4,490 | |
Total Unrealized Loss | (4) | |
U.S. government agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 830 | |
Less than 12 Months, Unrealized Loss | (1) | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Loss | 0 | |
Total Fair Value | 830 | |
Total Unrealized Loss | (1) | |
Foreign government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 873 | 255 |
Less than 12 Months, Unrealized Loss | (19) | (7) |
12 Months or Greater, Fair Value | 27 | 43 |
12 Months or Greater, Unrealized Loss | (4) | (3) |
Total Fair Value | 900 | 298 |
Total Unrealized Loss | (23) | (10) |
Municipal securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 356 | 877 |
Less than 12 Months, Unrealized Loss | (3) | (3) |
12 Months or Greater, Fair Value | 23 | 174 |
12 Months or Greater, Unrealized Loss | (1) | (3) |
Total Fair Value | 379 | 1,051 |
Total Unrealized Loss | (4) | (6) |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 7,152 | 5,851 |
Less than 12 Months, Unrealized Loss | (187) | (112) |
12 Months or Greater, Fair Value | 651 | 225 |
12 Months or Greater, Unrealized Loss | (52) | (10) |
Total Fair Value | 7,803 | 6,076 |
Total Unrealized Loss | (239) | (122) |
Agency mortgage-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,355 | 609 |
Less than 12 Months, Unrealized Loss | (8) | (1) |
12 Months or Greater, Fair Value | 739 | 2,168 |
12 Months or Greater, Unrealized Loss | (16) | (41) |
Total Fair Value | 2,094 | 2,777 |
Total Unrealized Loss | (24) | (42) |
Asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,650 | 2,388 |
Less than 12 Months, Unrealized Loss | (4) | (4) |
12 Months or Greater, Fair Value | 230 | 174 |
12 Months or Greater, Unrealized Loss | (1) | (1) |
Total Fair Value | 1,880 | 2,562 |
Total Unrealized Loss | (5) | (5) |
Fixed-income bond funds(3) | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 347 |
Less than 12 Months, Unrealized Loss | 0 | (38) |
12 Months or Greater, Fair Value | 286 | 0 |
12 Months or Greater, Unrealized Loss | (84) | 0 |
Total Fair Value | 286 | 347 |
Total Unrealized Loss | (84) | (38) |
Marketable equity securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 790 | 690 |
Less than 12 Months, Unrealized Loss | (315) | (64) |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total Fair Value | 790 | 690 |
Total Unrealized Loss | $ (315) | $ (64) |
Financial Instruments (Securiti
Financial Instruments (Securities Lending Program) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | $ 3,266 | $ 2,778 |
Securities lending payable | 3,266 | 2,778 |
Amounts related to agreements not included in securities lending in offsetting disclosure | 0 | $ 0 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 2,164 | |
Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 1,001 | |
30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 101 | |
U.S. government notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 2,881 | |
U.S. government notes | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 1,779 | |
U.S. government notes | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 1,001 | |
U.S. government notes | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
U.S. government notes | Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 101 | |
U.S. government agencies | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 192 | |
U.S. government agencies | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 192 | |
U.S. government agencies | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
U.S. government agencies | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
U.S. government agencies | Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
Corporate debt securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 193 | |
Corporate debt securities | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 193 | |
Corporate debt securities | Up to 30 days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
Corporate debt securities | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | 0 | |
Corporate debt securities | Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Total | $ 0 |
Financial Instruments (Fair Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Assets: | ||
Derivative Assets | $ 546 | $ 852 |
Derivative Liabilities: | ||
Derivative Liabilities | 10 | 4 |
Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 546 | 851 |
Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 3 | 3 |
Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 1 | |
Level 2 | Interest rate contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 7 | 1 |
Fair Value of Derivatives Designated as Hedging Instruments | ||
Derivative Assets: | ||
Derivative Assets | 545 | 852 |
Derivative Liabilities: | ||
Derivative Liabilities | 6 | 1 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 545 | 851 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 1 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Interest rate contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | 6 | 1 |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Assets: | ||
Derivative Assets | 1 | 0 |
Derivative Liabilities: | ||
Derivative Liabilities | 4 | 3 |
Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 1 | 0 |
Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 3 | 3 |
Derivatives Not Designated as Hedging Instruments | Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 0 | |
Derivatives Not Designated as Hedging Instruments | Level 2 | Interest rate contracts | Accrued expenses and other liabilities, current and non-current | ||
Derivative Liabilities: | ||
Derivative Liabilities | $ 1 | $ 0 |
Financial Instruments (Effect o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | $ 97 | $ 436 | $ 813 | $ 427 |
Gains Reclassified from AOCI into Income (Effective Portion) | 287 | 11 | 1,071 | 26 |
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | (63) | (52) | (230) | (182) |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | 97 | 436 | 813 | 458 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains Reclassified from AOCI into Income (Effective Portion) | 286 | 10 | 1,068 | 24 |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | (63) | (52) | (230) | (186) |
Derivatives in Cash Flow Hedging Relationship | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | 0 | 0 | 0 | (31) |
Derivatives in Cash Flow Hedging Relationship | Interest rate contracts | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains Reclassified from AOCI into Income (Effective Portion) | 1 | 1 | 3 | 2 |
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 0 | 0 | 0 | 4 |
Derivatives in Fair Value Hedging Relationship | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 1 | 2 | 5 | 6 |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives - Total | (1) | (2) | (5) | (6) |
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives - Foreign exchange contracts | 72 | 73 | 139 | 52 |
Gains (Losses) Recognized in Income on Derivatives - Hedged item | (73) | (75) | (144) | (58) |
Derivatives in Fair Value Hedging Relationship | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives - Total | 0 | 0 | 0 | 0 |
Derivatives in Fair Value Hedging Relationship | Interest rate contracts | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives - Foreign exchange contracts | (5) | 0 | (6) | 0 |
Gains (Losses) Recognized in Income on Derivatives - Hedged item | 5 | 0 | 6 | 0 |
Derivatives Not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives | 153 | 174 | 241 | 61 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Interest and other income, net and net loss from discontinued operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives | 150 | 172 | 241 | 59 |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives | $ 3 | $ 2 | $ 0 | $ 2 |
Financial Instruments (Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative Assets [Abstract] | ||
Derivatives - Gross Amounts of Recognized Assets | $ 546 | $ 852 |
Derivatives - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivatives - Net Presented in the Consolidated Balance Sheets | 546 | 852 |
Derivatives - Financial Instruments | (2) | (1) |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | (93) | (251) |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | (303) | (412) |
Derivatives - Net Assets Exposed | 148 | 188 |
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | 2,255 | 2,637 |
Reverse repurchase agreements - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Reverse repurchase agreements - Net Presented in the Consolidated Balance Sheets | 2,255 | 2,637 |
Reverse repurchase agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | 0 |
Reverse repurchase agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Reverse repurchase agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | (2,255) | (2,637) |
Reverse repurchase agreements - Net Assets Exposed | 0 | 0 |
Offsetting Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed [Abstract] | ||
Total - Gross Amounts of Recognized Assets | 2,801 | 3,489 |
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Total - Net Presented in the Consolidated Balance Sheets | 2,801 | 3,489 |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (2) | (1) |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | (93) | (251) |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | (2,558) | (3,049) |
Total - Net Assets Exposed | 148 | 188 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivatives - Gross Amounts of Recognized Liabilities | 10 | 4 |
Derivatives - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivatives - Net Presented in the Consolidated Balance Sheets | 10 | 4 |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (2) | (1) |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | (4) | 0 |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Pledged | 0 | 0 |
Derivatives - Net Liabilities | 4 | 3 |
Offsetting Securities Loaned [Abstract] | ||
Total | 3,266 | 2,778 |
Amounts related to agreements not included in securities lending in offsetting disclosure | 0 | 0 |
Securities lending agreements - Net Presented in the Consolidated Balance Sheets | 3,266 | 2,778 |
Securities lending agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | 0 |
Securities lending agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Securities lending agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Pledged | (3,245) | (2,740) |
Securities lending agreements - Net Liabilities | 21 | 38 |
Offsetting Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned [Abstract] | ||
Total - Gross Amounts of Recognized Liabilities | 3,276 | 2,782 |
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Total - Net Presented in the Consolidated Balance Sheets | 3,276 | 2,782 |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (2) | (1) |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | (4) | 0 |
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Pledged | (3,245) | (2,740) |
Total - Net Liabilities | 25 | 41 |
Cash and cash equivalents | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | 1,855 | 1,762 |
Receivable under reverse repurchase agreements | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | $ 400 | $ 875 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2012 | |
Financial Instruments and Fair Value [Line Items] | |||||||
Other-than-temporary impairment losses recognized | $ 0 | $ 0 | $ 0 | $ 0 | |||
Gross realized gains on the sale of our marketable securities | 54,000,000 | 33,000,000 | 235,000,000 | 189,000,000 | |||
Gross realized losses on the sale of our marketable securities | 60,000,000 | $ 15,000,000 | 156,000,000 | $ 49,000,000 | |||
Cash collateral received from derivative financial instruments | 105,000,000 | 105,000,000 | $ 268,000,000 | ||||
Forward-starting interest swaps, anticipated debt issuance amount | $ 1,000,000,000 | ||||||
Effective portion of our cash flow hedges before tax effect | 556,000,000 | 556,000,000 | |||||
Cash flow hedges, expected to be reclassified from AOCI to revenues within the next 12 months | 466,000,000 | 466,000,000 | |||||
Interest rate contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 450,000,000 | 450,000,000 | 150,000,000 | ||||
Cash Flow Hedging Relationship | Foreign exchange contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 9,700,000,000 | $ 9,700,000,000 | 13,600,000,000 | ||||
Foreign exchange option contracts, maximum maturities (in months) | 36 months | ||||||
Derivatives in Fair Value Hedging Relationship | Interest rate contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 290,000,000 | $ 290,000,000 | 175,000,000 | ||||
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 2,000,000,000 | 2,000,000,000 | 1,500,000,000 | ||||
Derivatives Not Designated as Hedging Instruments | Interest rate swap | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | $ 1,000,000,000 | ||||||
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 5,700,000,000 | 5,700,000,000 | 6,200,000,000 | ||||
Level 3 | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Balance at January 1, 2015 | $ 991,000,000 | $ 991,000,000 | $ 90,000,000 |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Capital Lease Obligation | $ 238 | $ 10 |
Total | 1,237 | 10 |
Unamortized discount for the Notes above | (6) | (8) |
Subtotal | 1,994 | 2,992 |
Capital Lease Obligation | 0 | 236 |
Total | 1,994 | 3,228 |
2.125% Notes due on May 19, 2016(1) | ||
Debt Instrument [Line Items] | ||
Long-term debt, current portion | 999 | 0 |
Long-Term Debt | 0 | 1,000 |
Unamortized discount for the Notes above | $ (1) | |
Long-term debt, interest rate | 2.125% | |
Long-term debt, maturity date | May 19, 2016 | |
3.625% Notes due on May 19, 2021 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $ 1,000 | 1,000 |
Long-term debt, interest rate | 3.625% | |
Long-term debt, maturity date | May 19, 2021 | |
3.375% Notes due on February 25, 2024 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $ 1,000 | $ 1,000 |
Long-term debt, interest rate | 3.375% | |
Long-term debt, maturity date | Feb. 25, 2024 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 28, 2014USD ($) | May. 31, 2011USD ($)Loan |
Short and Long Term Debt [Line Items] | ||||
Debt financing program through the issuance of commercial paper | $ 3,000,000,000 | |||
Amounts of commercial paper outstanding | $ 2,000,000,000 | $ 2,000,000,000 | ||
Weighted average yield for commercial paper outstanding | 0.20% | 0.10% | ||
Estimated fair value of long-term debt | $ 3,100,000,000 | $ 3,100,000,000 | ||
2.125% Notes due on May 19, 2016(1) | ||||
Short and Long Term Debt [Line Items] | ||||
Effective interest rate | 2.241% | |||
3.625% Notes due on May 19, 2021 | ||||
Short and Long Term Debt [Line Items] | ||||
Effective interest rate | 3.734% | |||
3.375% Notes due on February 25, 2024 | ||||
Short and Long Term Debt [Line Items] | ||||
Effective interest rate | 3.377% | |||
Unsecured debt | ||||
Short and Long Term Debt [Line Items] | ||||
Debt instrument, face amount | $ 1,000,000,000 | $ 3,000,000,000 | ||
Number of unsecured senior notes tranches | Loan | 3 | |||
Commercial paper financing credit facility | ||||
Short and Long Term Debt [Line Items] | ||||
Debt financing program through the issuance of commercial paper | $ 3,000,000,000 | |||
Revolving Credit Facility | ||||
Short and Long Term Debt [Line Items] | ||||
Outstanding amount under the Credit Facility | $ 0 | $ 0 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 38,908 | $ 32,746 |
Less: accumulated depreciation and amortization | (10,570) | (8,863) |
Property and equipment, net | 28,338 | 23,883 |
Land and buildings | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 15,353 | 13,326 |
Cost basis of property and equipment under capital lease | 258 | |
Information technology assets | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 13,354 | 10,918 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 7,799 | 6,555 |
Leasehold improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | 2,321 | 1,868 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 81 | $ 79 |
Balance Sheet Components (Note
Balance Sheet Components (Note Receivable) (Details) - Motorola Mobile - USD ($) | Oct. 29, 2014 | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Promissory note received in connection with divestiture, term | 3 years | ||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.50% | ||
Principal of the Note Receivable | $ 1,500,000,000 | $ 1,500,000,000 | |
Less: unamortized discount for the Note Receivable | (129,000,000) | (175,000,000) | |
Total | 1,371,000,000 | 1,325,000,000 | |
Allowance for Promissory Noted Received in Connection with Divestiture | $ 0 | $ 0 | |
Interest rate on receivable | 0.00% |
Balance Sheet Components (Compo
Balance Sheet Components (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 27 | $ 125 | ||
Other comprehensive income (loss) before reclassifications | (774) | (69) | ||
Amounts reclassified from AOCI | (845) | (138) | ||
Other comprehensive income (loss) | $ (663) | $ (584) | (1,619) | (207) |
Ending balance | (1,592) | (82) | (1,592) | (82) |
Foreign Currency Translation Adjustments | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (980) | 16 | ||
Other comprehensive income (loss) before reclassifications | (850) | (623) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Other comprehensive income (loss) | (850) | (623) | ||
Ending balance | (1,830) | (607) | (1,830) | (607) |
Unrealized Gains (Losses) on Available-for-Sale Investments | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 421 | 50 | ||
Other comprehensive income (loss) before reclassifications | (504) | 250 | ||
Amounts reclassified from AOCI | (73) | (122) | ||
Other comprehensive income (loss) | (577) | 128 | ||
Ending balance | (156) | 178 | (156) | 178 |
Unrealized Gains on Cash Flow Hedges | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 586 | 59 | ||
Other comprehensive income (loss) before reclassifications | 580 | 304 | ||
Amounts reclassified from AOCI | (772) | (16) | ||
Other comprehensive income (loss) | (192) | 288 | ||
Ending balance | $ 394 | $ 347 | $ 394 | $ 347 |
Balance Sheet Components (Effec
Balance Sheet Components (Effects on Net Income of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Revenue | $ 18,675 | $ 16,523 | $ 53,660 | $ 47,898 | |
Interest and other income, net | 183 | 133 | 471 | 635 | |
Provision for income taxes | (912) | $ (1,089) | (933) | (3,026) | (2,820) |
Net income | 3,979 | $ 3,515 | 2,739 | 11,425 | 9,461 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | |||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income | 208 | 22 | 845 | 138 | |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains on available-for-sale investments | |||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest and other income, net | (6) | 18 | 79 | 140 | |
Provision for income taxes | 2 | (3) | (6) | (18) | |
Net income | (4) | 15 | 73 | 122 | |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains on cash flow hedges | |||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Provision for income taxes | (75) | (4) | (299) | (10) | |
Net income | 212 | 7 | 772 | 16 | |
Foreign exchange contracts | Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains on cash flow hedges | |||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Revenue | 286 | 10 | 1,068 | 24 | |
Interest rate contracts | Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains on cash flow hedges | |||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest and other income, net | $ 1 | $ 1 | $ 3 | $ 2 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 15,675 | $ 15,599 |
Patents and developed technology | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 4 years 1 month | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 4 years | |
Trade names and other | ||
Business Acquisition [Line Items] | ||
Acquired intangible assets, weighted-average useful life | 8 years 3 months 15 days | |
Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Acquisition purchase price | $ 250 | |
Cash acquired | 2 | |
Intangible assets | 81 | |
Goodwill | 135 | |
Net assets acquired | 32 | |
Goodwill expected to be tax deductible | $ 18 |
Collaboration Agreement (Narrat
Collaboration Agreement (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Calico | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Payments for interest in joint venture | $ 240 |
Research commitment | Calico | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Payments for interest in joint venture | 250 |
Research commitment | 500 |
Research commitment | Google Inc | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research commitment | 490 |
Research commitment | AbbVie Inc | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Accumulated payments for interests in joint venture | $ 750 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2014 | $ 15,599 |
Goodwill acquired | 135 |
Goodwill adjustment | (59) |
Balance as of September 30, 2015 | $ 15,675 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 8,707 | $ 8,707 | $ 8,653 | ||
Accumulated Amortization | 4,684 | 4,684 | 4,046 | ||
Net Carrying Value | 4,023 | 4,023 | 4,607 | ||
Patents and developed technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 6,595 | 6,595 | 6,547 | ||
Accumulated Amortization | 3,037 | 3,037 | 2,513 | ||
Net Carrying Value | 3,558 | 3,558 | 4,034 | ||
Customer relationships | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 1,374 | 1,374 | 1,410 | ||
Accumulated Amortization | 1,209 | 1,209 | 1,168 | ||
Net Carrying Value | 165 | 165 | 242 | ||
Trade names and other | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 738 | 738 | 696 | ||
Accumulated Amortization | 438 | 438 | 365 | ||
Net Carrying Value | 300 | 300 | $ 331 | ||
Acquisition-related intangible assets | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of acquisition-related intangible assets | $ 218 | $ 285 | $ 679 | $ 821 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2015 | $ 215 | |
2,016 | 804 | |
2,017 | 727 | |
2,018 | 640 | |
2,019 | 530 | |
Thereafter | 1,107 | |
Net Carrying Value | $ 4,023 | $ 4,607 |
Discontinued Operations (Revenu
Discontinued Operations (Revenues and Earnings Attributable to Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net loss from discontinued operations | $ 0 | $ (185) | $ 0 | $ (451) |
Motorola Mobile | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 1,718 | 4,901 | ||
Loss from discontinued operations before income taxes | (217) | (590) | ||
Benefits from income taxes | 32 | 139 | ||
Net loss from discontinued operations | $ (185) | $ (451) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Millions | Oct. 29, 2014USD ($) |
Indemnification Agreement | Motorola Mobile | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Indemnification liability | $ 130 |
Interest and Other Income, Ne58
Interest and Other Income, Net (Schedule of Interest and Other Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 259 | $ 187 | $ 725 | $ 524 |
Interest expense | (26) | (25) | (78) | (76) |
Realized gains (losses) on marketable securities, net | (6) | 18 | 79 | 140 |
Foreign currency exchange losses, net | (100) | (67) | (261) | (269) |
Realized gain on equity interest | 0 | 0 | 0 | 126 |
Realized gains (losses) on non-marketable investments, net | 7 | (6) | (111) | 111 |
Other income, net | 49 | 26 | 117 | 79 |
Interest and other income, net | $ 183 | $ 133 | $ 471 | $ 635 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Apr. 02, 2015 | |
Numerator | |||||||
Less: Adjustment Payment to Class C capital stockholders | $ 0 | $ 0 | $ (522) | $ 0 | |||
Allocation of undistributed earnings - continuing operations | 3,979 | $ 3,515 | 2,924 | 11,425 | 9,912 | ||
Allocation of undistributed earnings - discontinued operations | 0 | (185) | 0 | (451) | |||
Net income | 3,979 | $ 3,515 | $ 2,739 | 11,425 | $ 9,461 | ||
Denominator | |||||||
Continuing operations (in dollars per share) | $ 5.16 | $ 4.32 | $ 14.69 | ||||
Net income per share - basic (in dollars per share) | $ 5.16 | $ 4.05 | $ 14.02 | ||||
Numerator | |||||||
Adjustment Payment to Class C capital stockholders | 0 | $ 0 | (522) | $ 0 | |||
Allocation of undistributed earnings - continuing operations | 3,979 | $ 3,515 | 2,924 | 11,425 | 9,912 | ||
Allocation of undistributed earnings - discontinued operations | 0 | $ (185) | 0 | $ (451) | |||
Weighted-average effect of dilutive securities | |||||||
Continuing operations (in dollars per share) | $ 5.10 | $ 4.25 | $ 14.44 | ||||
Net income per share - diluted (in dollars per share) | $ 5.10 | $ 3.98 | $ 13.78 | ||||
Class C adjustment payment | $ 522 | ||||||
Adjustment Payment to Class C capital stockholders | 47 | $ 0 | |||||
Class A Common Stock | |||||||
Numerator | |||||||
Less: Adjustment Payment to Class C capital stockholders | 0 | 0 | |||||
Allocation of undistributed earnings - continuing operations | 1,683 | $ 1,226 | 4,604 | 4,142 | |||
Allocation of undistributed earnings - discontinued operations | 0 | (78) | 0 | (188) | |||
Net income | $ 1,683 | $ 1,148 | $ 4,604 | $ 3,954 | |||
Denominator | |||||||
Number of shares used in basic computation | 290,368 | 283,850 | 288,686 | 282,014 | |||
Continuing operations (in dollars per share) | $ 5.80 | $ 4.32 | $ 15.95 | $ 14.69 | |||
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.67) | |||
Net income per share - basic (in dollars per share) | $ 5.80 | $ 4.05 | $ 15.95 | $ 14.02 | |||
Numerator | |||||||
Adjustment Payment to Class C capital stockholders | $ 0 | $ 0 | |||||
Allocation of undistributed earnings - continuing operations | $ 1,683 | $ 1,226 | 4,604 | 4,142 | |||
Allocation of undistributed earnings - discontinued operations | $ 0 | $ (78) | $ 0 | $ (188) | |||
Denominator | |||||||
Number of shares used in basic computation | 290,368 | 283,850 | 288,686 | 282,014 | |||
Weighted-average effect of dilutive securities | |||||||
Conversion of Class B to Class A common shares outstanding | 51,369 | 54,623 | 52,108 | 55,357 | |||
Employee stock options | 1,342 | 1,985 | 1,527 | 2,139 | |||
Restricted stock units and other contingently issuable shares | 835 | 3,062 | 893 | 3,362 | |||
Number of shares used in per share computation | 343,914 | 343,520 | 343,214 | 342,872 | |||
Continuing operations (in dollars per share) | $ 5.73 | $ 4.25 | $ 15.77 | $ 14.44 | |||
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.66) | |||
Net income per share - diluted (in dollars per share) | $ 5.73 | $ 3.98 | $ 15.77 | $ 13.78 | |||
Class A Common Stock | Continuing Operations | |||||||
Numerator | |||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | $ 298 | $ 236 | $ 831 | $ 813 | |||
Reallocation of undistributed earnings | (10) | (2) | (24) | (5) | |||
Allocation of undistributed earnings | 1,971 | 1,460 | 5,411 | 4,950 | |||
Class A Common Stock | Discontinued operations | |||||||
Numerator | |||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | (15) | 0 | (37) | |||
Reallocation of undistributed earnings | 0 | 1 | 0 | 0 | |||
Allocation of undistributed earnings | 0 | (92) | 0 | (225) | |||
Class B Common Stock | |||||||
Numerator | |||||||
Less: Adjustment Payment to Class C capital stockholders | 0 | 0 | |||||
Allocation of undistributed earnings - continuing operations | 298 | 236 | 831 | 813 | |||
Allocation of undistributed earnings - discontinued operations | 0 | (15) | 0 | (37) | |||
Net income | $ 298 | $ 221 | $ 831 | $ 776 | |||
Denominator | |||||||
Number of shares used in basic computation | 51,369 | 54,623 | 52,108 | 55,357 | |||
Continuing operations (in dollars per share) | $ 5.80 | $ 4.32 | $ 15.95 | $ 14.69 | |||
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.67) | |||
Net income per share - basic (in dollars per share) | $ 5.80 | $ 4.05 | $ 15.95 | $ 14.02 | |||
Numerator | |||||||
Adjustment Payment to Class C capital stockholders | $ 0 | $ 0 | |||||
Allocation of undistributed earnings - continuing operations | $ 298 | $ 236 | 831 | 813 | |||
Allocation of undistributed earnings - discontinued operations | $ 0 | $ (15) | $ 0 | $ (37) | |||
Denominator | |||||||
Number of shares used in basic computation | 51,369 | 54,623 | 52,108 | 55,357 | |||
Weighted-average effect of dilutive securities | |||||||
Conversion of Class B to Class A common shares outstanding | 0 | 0 | 0 | 0 | |||
Employee stock options | 0 | 0 | 0 | 0 | |||
Restricted stock units and other contingently issuable shares | 0 | 0 | 0 | 0 | |||
Number of shares used in per share computation | 51,369 | 54,623 | 52,108 | 55,357 | |||
Continuing operations (in dollars per share) | $ 5.73 | $ 4.25 | $ 15.77 | $ 14.44 | |||
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.66) | |||
Net income per share - diluted (in dollars per share) | $ 5.73 | $ 3.98 | $ 15.77 | $ 13.78 | |||
Class B Common Stock | Continuing Operations | |||||||
Numerator | |||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | $ 0 | $ 0 | $ 0 | $ 0 | |||
Reallocation of undistributed earnings | (4) | (4) | (9) | (14) | |||
Allocation of undistributed earnings | 294 | 232 | 822 | 799 | |||
Class B Common Stock | Discontinued operations | |||||||
Numerator | |||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 | 0 | |||
Reallocation of undistributed earnings | 0 | 0 | 0 | 1 | |||
Allocation of undistributed earnings | 0 | (15) | 0 | (36) | |||
Class C Capital Stock | |||||||
Numerator | |||||||
Less: Adjustment Payment to Class C capital stockholders | 522 | 0 | |||||
Allocation of undistributed earnings - continuing operations | 1,998 | 1,462 | 5,468 | 4,957 | |||
Allocation of undistributed earnings - discontinued operations | 0 | (92) | 0 | (226) | |||
Net income | $ 1,998 | $ 1,370 | $ 5,990 | $ 4,731 | |||
Denominator | |||||||
Number of shares used in basic computation | 344,698 | 338,624 | 342,862 | 337,562 | |||
Continuing operations (in dollars per share) | $ 5.80 | $ 4.32 | $ 17.47 | $ 14.69 | |||
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.67) | |||
Net income per share - basic (in dollars per share) | $ 5.80 | $ 4.05 | $ 17.47 | $ 14.02 | |||
Numerator | |||||||
Adjustment Payment to Class C capital stockholders | $ 522 | $ 0 | |||||
Allocation of undistributed earnings - continuing operations | $ 1,998 | $ 1,462 | 5,468 | 4,957 | |||
Allocation of undistributed earnings - discontinued operations | $ 0 | $ (92) | $ 0 | $ (226) | |||
Denominator | |||||||
Number of shares used in basic computation | 344,698 | 338,624 | 342,862 | 337,562 | |||
Weighted-average effect of dilutive securities | |||||||
Conversion of Class B to Class A common shares outstanding | 0 | 0 | 0 | 0 | |||
Employee stock options | 1,300 | 1,962 | 1,484 | 2,127 | |||
Restricted stock units and other contingently issuable shares | 4,407 | 4,109 | 4,005 | 4,036 | |||
Number of shares used in per share computation | 350,405 | 344,695 | 348,351 | 343,725 | |||
Continuing operations (in dollars per share) | $ 5.73 | $ 4.25 | $ 17.27 | $ 14.44 | |||
Discontinued operations (in dollars per share) | 0 | (0.27) | 0 | (0.66) | |||
Net income per share - diluted (in dollars per share) | $ 5.73 | $ 3.98 | $ 17.27 | $ 13.78 | |||
Stock issued in connection with the Adjustment Payment to Class C Capital stockholders (shares) | 853 | ||||||
Adjustment Payment to Class C capital stockholders | $ 47 | ||||||
Class C Capital Stock | Continuing Operations | |||||||
Numerator | |||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | $ 0 | $ 0 | $ 0 | $ 0 | |||
Reallocation of undistributed earnings | 10 | 2 | 24 | 5 | |||
Allocation of undistributed earnings | 2,008 | 1,464 | 5,492 | 4,962 | |||
Class C Capital Stock | Discontinued operations | |||||||
Numerator | |||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 | 0 | |||
Reallocation of undistributed earnings | 0 | (1) | 0 | 0 | |||
Allocation of undistributed earnings | $ 0 | $ (93) | $ 0 | $ (226) |
Stockholders' Equity (Share Bas
Stockholders' Equity (Share Based Compensation Allocation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 1,432 | $ 1,290 | $ 3,767 | $ 3,092 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 231 | 169 | 554 | 364 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 741 | 666 | 1,939 | 1,569 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 250 | 197 | 651 | 502 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 210 | 223 | 623 | 539 |
Discontinued operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 0 | $ 35 | $ 0 | $ 118 |
Stockholders' Equity (Stock Opt
Stockholders' Equity (Stock Option Activity) (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Options Outstanding - Number of Shares | |
Balance as of December 31, 2014 (in shares) | 7,240,419 |
Granted (in shares) | 0 |
Exercised (in shares) | (1,736,987) |
Forfeited/canceled (in shares) | (266,388) |
Balance as of September 30, 2015 (in shares) | 5,237,044 |
Exercisable as of September 30, 2015 (in shares) | 4,768,764 |
Exercisable as of September 30, 2015 and expected to vest thereafter (in shares) | 5,181,225 |
Options Outstanding - Weighted-Average Exercise Price | |
Balance as of December 31, 2014 (in dollars per share) | $ / shares | $ 215.56 |
Exercised (in dollars per share) | $ / shares | 191.10 |
Forfeited/canceled (in dollars per share) | $ / shares | 311.31 |
Balance as of September 30, 2015 (in dollars per share) | $ / shares | 218.80 |
Exercisable as of September 30, 2015 (in dollars per share) | $ / shares | 209.30 |
Exercisable as of September 30, 2015 and expected to vest thereafter (in dollars per share) | $ / shares | $ 217.75 |
Options Outstanding - Weighted-Average Remaining Contractual Term | |
Balance as of September 30, 2015 | 3 years 9 months 22 days |
Exercisable as of September 30, 2015 | 3 years 7 months 9 days |
Exercisable as of September 30, 2015 and expected to vest thereafter | 3 years 9 months 22 days |
Options Outstanding - Aggregate Intrinsic Value | |
Balance as of September 30, 2015 | $ | $ 2,120 |
Exercisable as of September 30, 2015 | $ | 1,976 |
Exercisable as of September 30, 2015 and expected to vest thereafter | $ | $ 2,103 |
Stockholders' Equity (Unvested
Stockholders' Equity (Unvested Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Unvested restricted stock units - number of shares | |
Unvested as of December 31, 2014 (in shares) | shares | 24,619,549 |
Granted (in shares) | shares | 13,116,639 |
Vested (in shares) | shares | (8,322,365) |
Forfeited/canceled (in shares) | shares | (1,757,674) |
Unvested as of September 30, 2015 (in shares) | shares | 27,656,149 |
Expected to vest after September 30, 2015 (in shares) | shares | 24,359,536 |
Unvested restricted stock units - weighted-average grant-date fair value | |
Unvested as of December 31, 2014 (in dollars per share) | $ 487.80 |
Granted (in dollars per share) | 530.39 |
Vested (in dollars per share) | 443.27 |
Forfeited/canceled (in dollars per share) | 487.20 |
Unvested as of September 30, 2015 (in dollars per share) | 520.97 |
Expected to vest after September 30, 2015 (in dollars per share) | $ 520.97 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)$ / shares | |
Class A Common Stock | |
Stockholders Equity Note [Line Items] | |
Closing stock price (in dollars per share) | $ 638.37 |
Class C Capital Stock | |
Stockholders Equity Note [Line Items] | |
Closing stock price (in dollars per share) | $ 608.42 |
Stock options | |
Stockholders Equity Note [Line Items] | |
Unrecognized compensation cost | $ | $ 18 |
Unrecognized compensation cost related to stock awards, weighted-average period (in years) | 9 months 22 days |
Restricted Stock Units (RSUs) | |
Stockholders Equity Note [Line Items] | |
Unrecognized compensation cost | $ | $ 11,700 |
Unrecognized compensation cost related to stock awards, weighted-average period (in years) | 2 years 9 months 22 days |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Total unrecognized tax benefits | $ 3,918 | $ 3,294 |
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate | $ 3,385 | $ 2,909 |
Information about Segments an65
Information about Segments and Geographic Areas (Revenues by Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 18,675 | $ 16,523 | $ 53,660 | $ 47,898 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 8,748 | 7,324 | 24,517 | 21,177 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 1,792 | 1,627 | 5,145 | 4,826 |
Rest of the world | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 8,135 | $ 7,572 | $ 23,998 | $ 21,895 |
Information about Segments an66
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 56,178 | $ 50,448 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 42,761 | 37,355 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 13,417 | $ 13,093 |
Revisions - Balance Sheet (Deta
Revisions - Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income taxes receivable, net | $ 287 | $ 591 |
Assets, Current | 88,103 | 79,978 |
Assets | 144,281 | 130,426 |
Income taxes payable, non-current | 3,596 | 3,340 |
Retained earnings | 85,969 | 75,066 |
Stockholders' Equity Attributable to Parent | 116,241 | 103,860 |
Liabilities and Equity | $ 144,281 | 130,426 |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income taxes receivable, net | 1,298 | |
Assets, Current | 80,685 | |
Assets | 131,133 | |
Income taxes payable, non-current | 3,407 | |
Retained earnings | 75,706 | |
Stockholders' Equity Attributable to Parent | 104,500 | |
Liabilities and Equity | 131,133 | |
Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Income taxes receivable, net | (707) | |
Assets, Current | (707) | |
Assets | (707) | |
Income taxes payable, non-current | (67) | |
Retained earnings | (640) | |
Stockholders' Equity Attributable to Parent | (640) | |
Liabilities and Equity | $ (707) |
Revisions - Income Statement (D
Revisions - Income Statement (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Provision for income taxes | $ 912 | $ 1,089 | $ 933 | $ 3,026 | $ 2,820 |
Net income from continuing operations | 3,979 | 3,515 | 2,924 | 11,425 | 9,912 |
Net income | $ 3,979 | $ 3,515 | $ 2,739 | $ 11,425 | $ 9,461 |
Continuing operations - basic (in dollars per share) | $ 5.16 | $ 4.32 | $ 14.69 | ||
Net income per share - basic (in dollars per share) | 5.16 | 4.05 | 14.02 | ||
Continuing operations - diluted (in dollars per share) | 5.10 | 4.25 | 14.44 | ||
Net income per share - diluted (in dollars per share) | $ 5.10 | $ 3.98 | $ 13.78 | ||
As Previously Reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Provision for income taxes | $ 1,018 | $ 859 | $ 2,594 | ||
Net income from continuing operations | 3,586 | 2,998 | 10,138 | ||
Net income | $ 3,586 | $ 2,813 | $ 9,687 | ||
Continuing operations - basic (in dollars per share) | $ 5.27 | $ 4.42 | $ 15.02 | ||
Net income per share - basic (in dollars per share) | 5.27 | 4.15 | 14.35 | ||
Continuing operations - diluted (in dollars per share) | 5.20 | 4.36 | 14.77 | ||
Net income per share - diluted (in dollars per share) | $ 5.20 | $ 4.09 | $ 14.11 | ||
Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Provision for income taxes | $ 71 | $ 74 | $ 226 | ||
Net income from continuing operations | (71) | (74) | (226) | ||
Net income | $ (71) | $ (74) | $ (226) | ||
Continuing operations - basic (in dollars per share) | $ (0.11) | $ (0.10) | $ (0.33) | ||
Net income per share - basic (in dollars per share) | (0.11) | (0.10) | (0.33) | ||
Continuing operations - diluted (in dollars per share) | (0.10) | (0.11) | (0.33) | ||
Net income per share - diluted (in dollars per share) | $ (0.10) | $ (0.11) | $ (0.33) |
Revisions - Comprehensive Incom
Revisions - Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net income | $ 3,979 | $ 3,515 | $ 2,739 | $ 11,425 | $ 9,461 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 3,316 | 3,117 | 2,155 | $ 9,806 | 9,254 |
As Previously Reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net income | 3,586 | 2,813 | 9,687 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 3,188 | 2,229 | 9,480 | ||
Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net income | (71) | (74) | (226) | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (71) | $ (74) | $ (226) |
Revisions - Cash Flow (Details)
Revisions - Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net income | $ 3,979 | $ 3,515 | $ 2,739 | $ 11,425 | $ 9,461 |
Income taxes, net | 827 | $ 1,093 | 577 | ||
As Previously Reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net income | 3,586 | 2,813 | 9,687 | ||
Income taxes, net | 756 | 351 | |||
Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net income | (71) | $ (74) | (226) | ||
Income taxes, net | $ 71 | $ 226 |
Revisions - Narrative (Details)
Revisions - Narrative (Details) $ in Millions | Mar. 31, 2015USD ($) |
Adjustment | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Cumulative adjustment to income tax expense (benefit) | $ 711 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) | Oct. 29, 2015USD ($) |
Class C Capital Stock | October 2015 Share Repurchase Program | Subsequent Event | |
Subsequent Event [Line Items] | |
Share repurchase program | $ 5,099,019,513.59 |