Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 17, 2013 | Oct. 17, 2013 | |
Class A Common Stock | Class B Common Stock | ||
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Amendment Flag | FALSE | ||
Document Period End Date | 30-Sep-13 | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | Q3 | ||
Trading Symbol | GOOG | ||
Entity Registrant Name | Google Inc. | ||
Entity Central Index Key | 1288776 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 276,721,703 | 57,365,706 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $15,242 | $14,778 |
Marketable securities | 41,281 | 33,310 |
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 56,523 | 48,088 |
Accounts receivable, net of allowance of $581 and $486 | 7,921 | 7,885 |
Inventories | 235 | 505 |
Receivable under reverse repurchase agreements | 100 | 700 |
Deferred income taxes, net | 1,154 | 1,144 |
Income taxes receivable, net | 571 | 0 |
Prepaid revenue share, expenses and other assets | 2,354 | 2,132 |
Total current assets | 68,858 | 60,454 |
Prepaid revenue share, expenses and other assets, non-current | 1,784 | 2,011 |
Non-marketable equity investments | 1,843 | 1,469 |
Property and equipment, net | 14,867 | 11,854 |
Intangible assets, net | 6,290 | 7,473 |
Goodwill | 11,426 | 10,537 |
Total assets | 105,068 | 93,798 |
Current liabilities: | ||
Accounts payable | 2,124 | 2,012 |
Short-term debt | 3,009 | 2,549 |
Accrued compensation and benefits | 1,999 | 2,239 |
Accrued expenses and other current liabilities | 3,071 | 3,258 |
Accrued revenue share | 1,472 | 1,471 |
Securities lending payable | 1,893 | 1,673 |
Deferred revenue | 907 | 895 |
Income taxes payable, net | 0 | 240 |
Total current liabilities | 14,475 | 14,337 |
Long-term debt | 2,238 | 2,988 |
Deferred revenue, non-current | 125 | 100 |
Income taxes payable, non-current | 2,434 | 2,046 |
Deferred income taxes, net, non-current | 2,097 | 1,872 |
Other long-term liabilities | 710 | 740 |
Stockholdersb 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 additional paid-in capital, $0.001 par value per share: 12,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000); 329,979 (Class A 267,448, Class B 62,531) and par value of $330 (Class A $267, Class B $63) and 334,157 (Class A 276,681, Class B 57,476) and par value of $334 (Class A $277, Class B $57) shares issued and outstanding | 25,004 | 22,835 |
Class C capital stock, $0.001 par value per share: 3,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Accumulated other comprehensive income | 99 | 538 |
Retained earnings | 57,886 | 48,342 |
Total stockholdersb equity | 82,989 | 71,715 |
Total liabilities and stockholdersb equity | $105,068 | $93,798 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Total cash, cash equivalents, and marketable securities, securities loaned | $5,103,000,000 | $3,160,000,000 |
Accounts receivable, allowance | 486,000,000 | 581,000,000 |
Convertible preferred stock, par value per share (in dollars per share) | $0.00 | $0.00 |
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 |
Class A and Class B common stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Common stock, number of shares authorized | 12,000,000,000 | 12,000,000,000 |
Common stock, par value (in dollars per share) | 334,000 | 330,000 |
Common stock, shares issued | 334,157,000 | 329,979,000 |
Common stock, shares outstanding | 334,157,000 | 329,979,000 |
Class A Common Stock | ||
Class A and Class B common stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Common stock, number of shares authorized | 9,000,000,000 | 9,000,000,000 |
Common stock, par value (in dollars per share) | 277,000 | 267,000 |
Common stock, shares issued | 276,681,000 | 267,448,000 |
Common stock, shares outstanding | 276,681,000 | 267,448,000 |
Class B Common Stock | ||
Class A and Class B common stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Common stock, number of shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (in dollars per share) | $57,000 | $63,000 |
Common stock, shares issued | 57,476,000 | 62,531,000 |
Common stock, shares outstanding | 57,476,000 | 62,531,000 |
Class C Capital Stock | ||
Capital stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Capital stock, number of shares authorized | 3,000,000,000 | 3,000,000,000 |
Capital stock, shares issued | 0 | 0 |
Capital stock, shares outstanding | 0 | 0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ||||
Revenues | $14,893 | $13,304 | $42,967 | $35,756 |
Costs and expenses: | ||||
Research and development | 2,017 | 1,879 | 5,841 | 4,858 |
Sales and marketing | 1,806 | 1,710 | 5,127 | 4,392 |
General and administrative | 1,213 | 1,020 | 3,535 | 2,719 |
Total costs and expenses | 11,449 | 10,564 | 32,923 | 26,390 |
Income from operations | 3,444 | 2,740 | 10,044 | 9,366 |
Interest and other income, net | 24 | 65 | 405 | 474 |
Income from continuing operations before income taxes | 3,468 | 2,805 | 10,449 | 9,840 |
Provision for income taxes | 513 | 647 | 1,616 | 1,959 |
Net income from continuing operations | 2,955 | 2,158 | 8,833 | 7,881 |
Net income (loss) from discontinued operations | 15 | 18 | 711 | -30 |
Net income | 2,970 | 2,176 | 9,544 | 7,851 |
Net income (loss) per share of Class A and Class B common stock - basic: | ||||
Continuing operations (in dollars per share) | $8.86 | $6.59 | $26.59 | $24.14 |
Discontinued operations (in dollars per share) | $0.04 | $0.05 | $2.14 | ($0.09) |
Net income per share - basic (in dollars per share) | $8.90 | $6.64 | $28.73 | $24.05 |
Net income (loss) per share of Class A and Class B common stock - diluted: | ||||
Continuing operations (in dollars per share) | $8.71 | $6.48 | $26.13 | $23.78 |
Discontinued operations (in dollars per share) | $0.04 | $0.05 | $2.10 | ($0.09) |
Net income per share - diluted (in dollars per share) | $8.75 | $6.53 | $28.23 | $23.69 |
Shares used in per share calculation - basic | 333,616 | 327,785 | 332,183 | 326,452 |
Shares used in per share calculation - diluted | 339,235 | 333,314 | 338,078 | 331,414 |
Google | Advertising and other | ||||
Revenues: | ||||
Revenues | 13,754 | 11,526 | 39,812 | 33,135 |
Costs and expenses: | ||||
Cost of revenues | 5,409 | 4,440 | 15,740 | 12,213 |
Motorola | Hardware and other | ||||
Revenues: | ||||
Revenues | 1,139 | 1,778 | 3,155 | 2,621 |
Costs and expenses: | ||||
Cost of revenues | $1,004 | $1,515 | $2,680 | $2,208 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock-based compensation expense | $886 | $750 | $2,366 | $1,941 |
Research and development | ||||
Stock-based compensation expense | 453 | 373 | 1,235 | 961 |
Sales and marketing | ||||
Stock-based compensation expense | 160 | 152 | 419 | 367 |
General and administrative | ||||
Stock-based compensation expense | 136 | 116 | 356 | 344 |
Google | Cost of revenues | ||||
Stock-based compensation expense | 133 | 103 | 342 | 259 |
Motorola Mobile | Cost of revenues | ||||
Stock-based compensation expense | $4 | $6 | $14 | $10 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other comprehensive income (loss): | ||||
Net income | $2,970 | $2,176 | $9,544 | $7,851 |
Available-for-sale investments: | ||||
Change in foreign currency translation adjustment | 261 | 220 | 57 | -98 |
Change in net unrealized gains (losses) | 257 | 198 | -402 | 408 |
Reclassification adjustment for net (gains) losses included in net income | 21 | -21 | -133 | -169 |
Net change (net of tax effect of $73, $31, $83, and $208) | 278 | 177 | -535 | 239 |
Cash flow hedges: | ||||
Change in net unrealized gains (losses) | -28 | -74 | 97 | 65 |
Less: reclassification adjustment for net (gains) losses included in net income | -14 | -39 | -58 | -114 |
Net change (net of tax effect of $67, $24, $29, and $23) | -42 | -113 | 39 | -49 |
Other comprehensive income (loss) | 497 | 284 | -439 | 92 |
Comprehensive income | $3,467 | $2,460 | $9,105 | $7,943 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Tax effect related to available-for-sale investments | $31 | $73 | $208 | $83 |
Tax effect related to cash flow hedges | $24 | $67 | $23 | $29 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ||
Net income | $9,544 | $7,851 |
Adjustments: | ||
Depreciation and amortization of property and equipment | 2,024 | 1,358 |
Amortization of intangible and other assets | 879 | 651 |
Stock-based compensation expense | 2,441 | 1,976 |
Excess tax benefits from stock-based award activities | -302 | -113 |
Deferred income taxes | 125 | 23 |
Gain on divestiture of businesses | -705 | -188 |
Other | 44 | -24 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | -454 | -228 |
Income taxes, net | -79 | 1,336 |
Inventories | -46 | 188 |
Prepaid revenue share, expenses and other assets | -149 | -1,215 |
Accounts payable | 285 | -274 |
Accrued expenses and other liabilities | -270 | 484 |
Accrued revenue share | 8 | -57 |
Deferred revenue | 76 | 182 |
Net cash provided by operating activities | 13,421 | 11,950 |
Investing activities | ||
Purchases of property and equipment | -5,103 | -2,253 |
Purchases of marketable securities | -31,746 | -24,246 |
Maturities and sales of marketable securities | 23,241 | 29,800 |
Investments in non-marketable equity investments | -471 | -246 |
Cash collateral related to securities lending | 220 | -321 |
Investments in reverse repurchase agreements | 600 | 195 |
Proceeds from divestiture of businesses | 2,525 | 201 |
Acquisitions, net of cash acquired, and purchases of intangibles and other assets | -1,328 | -10,672 |
Net cash used in investing activities | -12,062 | -7,542 |
Financing activities | ||
Net payments related to stock-based award activities | -637 | -189 |
Excess tax benefits from stock-based award activities | 302 | 113 |
Proceeds from issuance of debt, net of costs | 8,350 | 12,125 |
Repayments of debt | -8,904 | -10,128 |
Net cash provided by (used in) financing activities | -889 | 1,921 |
Effect of exchange rate changes on cash and cash equivalents | -6 | -52 |
Net increase in cash and cash equivalents | 464 | 6,277 |
Cash and cash equivalents at beginning of period | 14,778 | 9,983 |
Cash and cash equivalents at end of period | 15,242 | 16,260 |
Supplemental disclosures of cash flow information | ||
Cash paid for taxes | 1,304 | 1,684 |
Cash paid for interest | 36 | 38 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ||
Receipt of Arris shares in connection with divestiture of Motorola Home | 175 | 0 |
Fair value of stock-based awards assumed in connection with acquisition of Motorola | 0 | 41 |
Property under capital lease | $258 | $0 |
Google_Inc_and_Summary_of_Sign
Google Inc. and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
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 in our Google segment. To a lesser extent, we generate revenues primarily from sales of mobile devices in our Motorola Mobile segment. | |
In April 2013, we completed the sale of our Motorola Home segment to Arris Group, Inc. (Arris) and certain other persons. See Note 8 for further discussion of the sale of Motorola Home. | |
Basis of Consolidation | |
The consolidated financial statements include the accounts of Google Inc. and our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. | |
Unaudited Interim Financial Information | |
The accompanying Consolidated Balance Sheet as of September 30, 2013, the Consolidated Statements of Income for the three and nine months ended September 30, 2012 and 2013, the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2012 and 2013, and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2013 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, 2013, our results of operations for the three and nine months ended September 30, 2012 and 2013, and our cash flows for the nine months ended September 30, 2012 and 2013. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013. | |
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, 2012 filed with the SEC on January 29, 2013. | |
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, fair values of stock-based awards, inventory valuations, 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. | |
In the second quarter of 2013, we revised the estimated useful lives of certain types of property and equipment which resulted in an additional depreciation expense of $48 million and $169 million during the three and nine months ended September 30, 2013. | |
Prior Period Reclassifications | |
Certain reclassifications of prior period amounts have been made to conform to the current period presentation. |
Net_Income_Per_Share_of_Class_
Net Income Per Share of Class A and Class B Common Stock | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||
Net Income Per Share of Class A and Class B Common Stock | Net Income Per Share of Class A and Class B Common Stock | |||||||||||||||||||||||||||||||
The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock (in millions, except share amounts which are reflected in thousands and per share amounts): | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 1,732 | $ | 426 | $ | 2,438 | $ | 517 | $ | 6,293 | $ | 1,588 | $ | 7,237 | $ | 1,596 | ||||||||||||||||
Allocation of undistributed earnings - discontinued operations | 14 | 4 | 12 | 3 | (24 | ) | (6 | ) | 582 | 129 | ||||||||||||||||||||||
Total | $ | 1,746 | $ | 430 | $ | 2,450 | $ | 520 | $ | 6,269 | $ | 1,582 | $ | 7,819 | $ | 1,725 | ||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||
Number of shares used in per share computation | 263,086 | 64,699 | 275,237 | 58,379 | 260,666 | 65,786 | 272,150 | 60,033 | ||||||||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 6.59 | $ | 6.59 | $ | 8.86 | $ | 8.86 | $ | 24.14 | $ | 24.14 | $ | 26.59 | $ | 26.59 | ||||||||||||||||
Discontinued operations | 0.05 | 0.05 | 0.04 | 0.04 | (0.09 | ) | (0.09 | ) | 2.14 | 2.14 | ||||||||||||||||||||||
Basic net income per share | $ | 6.64 | $ | 6.64 | $ | 8.9 | $ | 8.9 | $ | 24.05 | $ | 24.05 | $ | 28.73 | $ | 28.73 | ||||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 1,732 | $ | 426 | $ | 2,438 | $ | 517 | $ | 6,293 | $ | 1,588 | $ | 7,237 | $ | 1,596 | ||||||||||||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 426 | 0 | 517 | 0 | 1,588 | 0 | 1,596 | 0 | ||||||||||||||||||||||||
Reallocation of undistributed earnings to Class B shares | 0 | (7 | ) | 0 | (8 | ) | 0 | (23 | ) | 0 | (27 | ) | ||||||||||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 2,158 | $ | 419 | $ | 2,955 | $ | 509 | $ | 7,881 | $ | 1,565 | $ | 8,833 | $ | 1,569 | ||||||||||||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | 14 | $ | 4 | $ | 12 | $ | 3 | $ | (24 | ) | $ | (6 | ) | $ | 582 | $ | 129 | ||||||||||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 4 | 0 | 3 | 0 | (6 | ) | 0 | 129 | 0 | |||||||||||||||||||||||
Reallocation of undistributed earnings to Class B shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3 | ) | |||||||||||||||||||||||
Allocation of undistributed earnings - discontinued operations | $ | 18 | $ | 4 | $ | 15 | $ | 3 | $ | (30 | ) | $ | (6 | ) | $ | 711 | $ | 126 | ||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||
Number of shares used in basic computation | 263,086 | 64,699 | 275,237 | 58,379 | 260,666 | 65,786 | 272,150 | 60,033 | ||||||||||||||||||||||||
Weighted-average effect of dilutive securities | ||||||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Conversion of Class B to Class A common shares outstanding | 64,699 | 0 | 58,379 | 0 | 65,786 | 0 | 60,033 | 0 | ||||||||||||||||||||||||
Employee stock options, including warrants issued under Transferable Stock Option program | 3,015 | 36 | 2,607 | 1 | 2,943 | 39 | 2,800 | 5 | ||||||||||||||||||||||||
Restricted stock units | 2,514 | 0 | 3,012 | 0 | 2,019 | 0 | 3,095 | 0 | ||||||||||||||||||||||||
Number of shares used in per share computation | 333,314 | 64,735 | 339,235 | 58,380 | 331,414 | 65,825 | 338,078 | 60,038 | ||||||||||||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 6.48 | $ | 6.48 | $ | 8.71 | $ | 8.71 | $ | 23.78 | $ | 23.78 | $ | 26.13 | $ | 26.13 | ||||||||||||||||
Discontinued operations | 0.05 | 0.05 | 0.04 | 0.04 | (0.09 | ) | (0.09 | ) | 2.1 | 2.1 | ||||||||||||||||||||||
Diluted net income per share | $ | 6.53 | $ | 6.53 | $ | 8.75 | $ | 8.75 | $ | 23.69 | $ | 23.69 | $ | 28.23 | $ | 28.23 | ||||||||||||||||
The net income per share amounts are the same for Class A and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. |
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
We measure our cash equivalents, marketable securities, and foreign currency and interest rate derivative contracts 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 should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: | |||||||||||||||||||||||||||||
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||||||||||||||
Level 2—Include other 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 also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||||||||||||||
Based on the fair value hierarchy, we classify our cash equivalents and marketable securities within Level 1 or Level 2. This is because we value our cash equivalents and marketable securities using quoted market prices or alternative pricing sources and models utilizing market observable inputs. 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. | |||||||||||||||||||||||||||||
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, 2012 and September 30, 2013 (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 8,066 | $ | 0 | $ | 0 | $ | 8,066 | $ | 8,066 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 5,221 | 0 | 0 | 5,221 | 5,221 | 0 | |||||||||||||||||||||||
U.S. government notes | 10,853 | 77 | (1 | ) | 10,929 | 0 | 10,929 | ||||||||||||||||||||||
Marketable equity securities | 12 | 88 | 0 | 100 | 0 | 100 | |||||||||||||||||||||||
16,086 | 165 | (1 | ) | 16,250 | 5,221 | 11,029 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits | 984 | 0 | 0 | 984 | 562 | 422 | |||||||||||||||||||||||
Money market and other funds (1) | 929 | 0 | 0 | 929 | 929 | 0 | |||||||||||||||||||||||
U.S. government agencies | 1,882 | 20 | 0 | 1,902 | 0 | 1,902 | |||||||||||||||||||||||
Foreign government bonds | 1,996 | 81 | (3 | ) | 2,074 | 0 | 2,074 | ||||||||||||||||||||||
Municipal securities | 2,249 | 23 | (6 | ) | 2,266 | 0 | 2,266 | ||||||||||||||||||||||
Corporate debt securities | 7,200 | 414 | (14 | ) | 7,600 | 0 | 7,600 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 7,039 | 136 | (6 | ) | 7,169 | 0 | 7,169 | ||||||||||||||||||||||
Asset-backed securities | 847 | 1 | 0 | 848 | 0 | 848 | |||||||||||||||||||||||
23,126 | 675 | (29 | ) | 23,772 | 1,491 | 22,281 | |||||||||||||||||||||||
Total | $ | 47,278 | $ | 840 | $ | (30 | ) | $ | 48,088 | $ | 14,778 | $ | 33,310 | ||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Cash | $ | 7,822 | $ | 0 | $ | 0 | $ | 7,822 | $ | 7,822 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 3,940 | 0 | 0 | 3,940 | 3,940 | 0 | |||||||||||||||||||||||
U.S. government notes | 13,567 | 38 | (30 | ) | 13,575 | 402 | 13,173 | ||||||||||||||||||||||
Marketable equity securities | 241 | 173 | 0 | 414 | 0 | 414 | |||||||||||||||||||||||
17,748 | 211 | (30 | ) | 17,929 | 4,342 | 13,587 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits | 1,753 | 0 | 0 | 1,753 | 1,294 | 459 | |||||||||||||||||||||||
Money market and other funds(1) | 1,784 | 0 | 0 | 1,784 | 1,784 | 0 | |||||||||||||||||||||||
U.S. government agencies | 2,330 | 5 | (3 | ) | 2,332 | 0 | 2,332 | ||||||||||||||||||||||
Foreign government bonds | 2,408 | 13 | (49 | ) | 2,372 | 0 | 2,372 | ||||||||||||||||||||||
Municipal securities | 3,579 | 13 | (48 | ) | 3,544 | 0 | 3,544 | ||||||||||||||||||||||
Corporate debt securities | 9,323 | 163 | (140 | ) | 9,346 | 0 | 9,346 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 8,597 | 80 | (152 | ) | 8,525 | 0 | 8,525 | ||||||||||||||||||||||
Asset-backed securities | 1,118 | 0 | (2 | ) | 1,116 | 0 | 1,116 | ||||||||||||||||||||||
30,892 | 274 | (394 | ) | 30,772 | 3,078 | 27,694 | |||||||||||||||||||||||
Total | $ | 56,462 | $ | 485 | $ | (424 | ) | $ | 56,523 | $ | 15,242 | $ | 41,281 | ||||||||||||||||
-1 | The balances at December 31, 2012 and September 30, 2013 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 below for further discussion of this program. | ||||||||||||||||||||||||||||
During the second quarter of 2013, we received approximately $175 million in Arris' common stock (10.6 million shares) in connection with the sale of the Motorola Home segment (see details in Note 8). These shares are accounted for as available-for sale marketable equity securities. | |||||||||||||||||||||||||||||
We determine realized gains or losses on the sale of marketable securities on a specific identification method. We recognized gross realized gains of $82 million and $290 million for the three and nine months ended September 30, 2012 and $35 million and $295 million for the three and nine months ended September 30, 2013. We recognized gross realized losses of $46 million and $79 million for the three and nine months ended September 30, 2012 and $61 million and $117 million for the three and nine months ended September 30, 2013. 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 securities, excluding marketable equity securities, designated as available-for-sale and classified by the contractual maturity date of the securities (in millions): | |||||||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Due in 1 year | $ | 4,809 | |||||||||||||||||||||||||||
Due in 1 year through 5 years | 18,819 | ||||||||||||||||||||||||||||
Due in 5 years through 10 years | 8,375 | ||||||||||||||||||||||||||||
Due after 10 years | 8,864 | ||||||||||||||||||||||||||||
Total | $ | 40,867 | |||||||||||||||||||||||||||
The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2012 and September 30, 2013, 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, 2012 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||
U.S. government notes | $ | 842 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 842 | $ | (1 | ) | |||||||||||||||
Foreign government bonds | 509 | (2 | ) | 12 | (1 | ) | 521 | (3 | ) | ||||||||||||||||||||
Municipal securities | 686 | (6 | ) | 9 | 0 | 695 | (6 | ) | |||||||||||||||||||||
Corporate debt securities | 820 | (10 | ) | 81 | (4 | ) | 901 | (14 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 1,300 | (6 | ) | 0 | 0 | 1,300 | (6 | ) | |||||||||||||||||||||
Total | $ | 4,157 | $ | (25 | ) | $ | 102 | $ | (5 | ) | $ | 4,259 | $ | (30 | ) | ||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
U.S. government notes | $ | 4,329 | $ | (30 | ) | $ | 0 | $ | 0 | $ | 4,329 | $ | (30 | ) | |||||||||||||||
U.S. government agencies | 849 | (3 | ) | 0 | 0 | 849 | (3 | ) | |||||||||||||||||||||
Foreign government bonds | 1,563 | (47 | ) | 38 | (2 | ) | 1,601 | (49 | ) | ||||||||||||||||||||
Municipal securities | 1,845 | (47 | ) | 9 | (1 | ) | 1,854 | (48 | ) | ||||||||||||||||||||
Corporate debt securities | 4,667 | (136 | ) | 48 | (4 | ) | 4,715 | (140 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 4,974 | (149 | ) | 224 | (3 | ) | 5,198 | (152 | ) | ||||||||||||||||||||
Asset-backed securities | 734 | (2 | ) | 0 | 0 | 734 | (2 | ) | |||||||||||||||||||||
Total | $ | 18,961 | $ | (414 | ) | $ | 319 | $ | (10 | ) | $ | 19,280 | $ | (424 | ) | ||||||||||||||
We periodically review our marketable 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 marketable 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, 2013, 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 selected securities which are collateralized in the form of cash or securities. Cash collateral is 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. | |||||||||||||||||||||||||||||
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, 2012 and September 30, 2013, we received cash collateral related to the derivative instruments under our collateral security arrangements of $43 million and $12 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 $9.5 billion and $7.0 billion as of December 31, 2012 and September 30, 2013. These foreign exchange contracts have maturities of 36 months or less. | |||||||||||||||||||||||||||||
In 2012, we entered into forward-starting interest rate swaps that effectively locked in an interest rate on our anticipated debt issuance of $1.0 billion in 2014. The total notional amount of these forward-starting interest swaps was $1.0 billion as of December 31, 2012 and September 30, 2013 with terms calling for us to receive interest at a variable rate and to pay interest at a fixed rate. | |||||||||||||||||||||||||||||
We initially report any gain or loss 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 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 any change to this time value in interest and other income, net. | |||||||||||||||||||||||||||||
As of September 30, 2013, the effective portion of our cash flow hedges before tax effect was $73 million, of which $7 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. Gains and losses on these contracts are recognized in interest and other income, net, along with the offsetting losses and gains of the related hedged items. We exclude changes in the time value for forward contracts from the assessment of hedge effectiveness. The notional principal of these contracts was $1.1 billion and $1.6 billion as of December 31, 2012 and September 30, 2013. | |||||||||||||||||||||||||||||
Other Derivatives | |||||||||||||||||||||||||||||
Other derivatives not designated as hedging instruments consist of forward and option 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 $6.6 billion and $6.1 billion at December 31, 2012 and September 30, 2013. | |||||||||||||||||||||||||||||
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 $25 million at December 31, 2012 and $75 million at September 30, 2013. | |||||||||||||||||||||||||||||
The fair values of our outstanding derivative instruments were as follows (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of | Fair Value of | Total Fair | ||||||||||||||||||||||||||
Derivatives | Derivatives Not | Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedging Instruments | Hedging Instruments | ||||||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | $ | 164 | $ | 13 | $ | 177 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 1 | 0 | 1 | |||||||||||||||||||||||||
Total | $ | 165 | $ | 13 | $ | 178 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 3 | $ | 4 | $ | 7 | ||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of | Fair Value of | Total Fair | ||||||||||||||||||||||||||
Derivatives | Derivatives Not | Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedging Instruments | Hedging Instruments | ||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | $ | 67 | $ | 3 | $ | 70 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 68 | 0 | 68 | |||||||||||||||||||||||||
Total | $ | 135 | $ | 3 | $ | 138 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 15 | $ | 0 | $ | 15 | ||||||||||||||||||||||
Total | $ | 15 | $ | 0 | $ | 15 | |||||||||||||||||||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | 2012 | 2013 | 2012 | 2013 | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (110 | ) | $ | (43 | ) | $ | 110 | $ | 87 | |||||||||||||||||||
Interest rate contracts | (8 | ) | (1 | ) | (8 | ) | 67 | ||||||||||||||||||||||
Total | $ | (118 | ) | $ | (44 | ) | $ | 102 | $ | 154 | |||||||||||||||||||
Gains Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Location | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Revenues | $ | 62 | $ | 22 | $ | 180 | $ | 92 | ||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives (Amount | |||||||||||||||||||||||||||||
Excluded from Effectiveness Testing and Ineffective Portion) (1) | |||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Location | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (124 | ) | $ | (135 | ) | $ | (370 | ) | $ | (224 | ) | ||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
(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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationship | Location | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (38 | ) | $ | (49 | ) | $ | (22 | ) | $ | 13 | |||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Hedged item | Interest and | 36 | 46 | 15 | (19 | ) | |||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (2 | ) | $ | (3 | ) | $ | (7 | ) | $ | (6 | ) | |||||||||||||||||
(2) | Losses related to the amount excluded from effectiveness testing of the hedges were $2 million and $7 million for the three and nine months ended September 30, 2012 and $3 million and $6 million for the three and nine months ended September 30, 2013. | ||||||||||||||||||||||||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives Not Designated As Hedging Instruments | Location | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (82 | ) | $ | (55 | ) | $ | (107 | ) | $ | 102 | |||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and | 0 | 2 | (5 | ) | 2 | |||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (82 | ) | $ | (53 | ) | $ | (112 | ) | $ | 104 | ||||||||||||||||||
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, 2012 and September 30, 2013, information related to these offsetting arrangements was as follows (in millions, unaudited): | |||||||||||||||||||||||||||||
Offsetting of Assets | |||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
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 | $ | 178 | $ | 0 | $ | 178 | $ | (4 | ) | (1) | $ | (40 | ) | $ | (12 | ) | $ | 122 | |||||||||||
Reverse repurchase agreements | 1,629 | 0 | 1,629 | (2) | 0 | 0 | (1,629 | ) | 0 | ||||||||||||||||||||
Total | $ | 1,807 | $ | 0 | $ | 1,807 | $ | (4 | ) | $ | (40 | ) | $ | (1,641 | ) | $ | 122 | ||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
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 | $ | 138 | $ | 0 | $ | 138 | $ | 0 | (1) | $ | (8 | ) | $ | (31 | ) | $ | 99 | ||||||||||||
Reverse repurchase agreements | 1,884 | 0 | 1,884 | (2) | 0 | 0 | (1,884 | ) | 0 | ||||||||||||||||||||
Total | $ | 2,022 | $ | 0 | $ | 2,022 | $ | 0 | $ | (8 | ) | $ | (1,915 | ) | $ | 99 | |||||||||||||
(1) The balances at December 31, 2012 and September 30, 2013 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 at December 31, 2012 and September 30, 2013 included $929 million and $1,784 million recorded in cash and cash equivalents, respectively, and $700 million and $100 million recorded in receivable under reverse repurchase agreements, respectively. | |||||||||||||||||||||||||||||
Offsetting of Liabilities | |||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
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 | $ | 7 | $ | 0 | $ | 7 | $ | (4 | ) | (3) | $ | 0 | $ | 0 | $ | 3 | |||||||||||||
Securities lending agreements | 1,673 | 0 | 1,673 | 0 | 0 | (1,673 | ) | 0 | |||||||||||||||||||||
Total | $ | 1,680 | $ | 0 | $ | 1,680 | $ | (4 | ) | $ | 0 | $ | (1,673 | ) | $ | 3 | |||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
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 | $ | 15 | $ | 0 | $ | 15 | $ | 0 | (3) | $ | 0 | $ | 0 | $ | 15 | ||||||||||||||
Securities lending agreements | 1,893 | 0 | 1,893 | 0 | 0 | (1,877 | ) | 16 | |||||||||||||||||||||
Total | $ | 1,908 | $ | 0 | $ | 1,908 | $ | 0 | $ | 0 | $ | (1,877 | ) | $ | 31 | ||||||||||||||
(3) The balance at December 31, 2012 and September 30, 2013 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, 2013 | ||||
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. At December 31, 2012 and September 30, 2013, we had $2.5 billion and $2.0 billion, respectively, of outstanding commercial paper recorded as short-term debt with weighted-average interest rates of 0.2% and 0.1%, respectively. In conjunction with this program, we have a $3.0 billion revolving credit facility expiring in July 2016. The interest rate for the credit facility is determined based on a formula using certain market rates. At December 31, 2012 and September 30, 2013, we were in compliance with the financial covenant in the credit facility, and no amounts were outstanding under the credit facility at December 31, 2012 and September 30, 2013. The estimated fair value of the commercial paper approximated its carrying value at September 30, 2013. | ||||
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 | ||||
In May 2011, we issued $3.0 billion of unsecured senior notes in three tranches (collectively, the Notes) and in August 2013, we entered into a capital lease obligation. The details of these financing arrangements are described in the table below (in millions): | ||||
As of | ||||
September 30, | ||||
2013 | ||||
(unaudited) | ||||
Short-Term Portion of Long-Term Debt | ||||
1.25% Notes due on May 19, 2014 | $ | 1,000 | ||
Capital Lease Obligation | 9 | |||
Total | $ | 1,009 | ||
Long-Term Debt | ||||
2.125% Notes due on May 19, 2016 | $ | 1,000 | ||
3.625% Notes due on May 19, 2021 | 1,000 | |||
Unamortized discount for the Notes above | (10 | ) | ||
Subtotal | 1,990 | |||
Capital Lease Obligation | 248 | |||
Total | $ | 2,238 | ||
The effective interest yields of the 2014, 2016, and 2021 Notes were 1.258%, 2.241% and 3.734%, respectively. Interest on the Notes is payable semi-annually in arrears on May 19 and November 19 of each year. We may redeem the Notes at any time in whole or in part at specified redemption prices. We are not subject to any financial covenants under the Notes. We used the net proceeds from the issuance of the Notes to repay a portion of our outstanding commercial paper and for general corporate purposes. The total estimated fair value of the Notes was approximately $3.1 billion at September 30, 2013. The fair value of the 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 expiring in 2028 with an option to purchase the property in 2016. The effective rate of the capital lease obligation approximates the market rate. At September 30, 2013, the carrying value of the assets approximated the carrying value of the borrowings. |
Balance_Sheet_Components
Balance Sheet Components | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Balance Sheet Components Disclosure [Abstract] | ||||||||||||||||
Balance Sheet Components | Balance Sheet Components | |||||||||||||||
Inventories | ||||||||||||||||
Inventories consisted of the following (in millions): | ||||||||||||||||
As of December 31, 2012 | As of | |||||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Raw materials and work in process | $ | 77 | $ | 64 | ||||||||||||
Finished goods | 428 | 171 | ||||||||||||||
Inventories | $ | 505 | $ | 235 | ||||||||||||
Property and Equipment | ||||||||||||||||
Property and equipment consisted of the following (in millions): | ||||||||||||||||
As of December 31, 2012 | As of | |||||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Information technology assets | $ | 7,717 | $ | 8,371 | ||||||||||||
Land and buildings | 6,257 | 6,462 | ||||||||||||||
Construction in progress | 2,240 | 5,257 | ||||||||||||||
Leasehold improvements | 1,409 | 1,553 | ||||||||||||||
Furniture and fixtures | 74 | 79 | ||||||||||||||
Total | 17,697 | 21,722 | ||||||||||||||
Less: accumulated depreciation and amortization | 5,843 | 6,855 | ||||||||||||||
Property and equipment, net | $ | 11,854 | $ | 14,867 | ||||||||||||
Property under capital lease with a cost basis of $258 million was included in construction in progress as of September 30, 2013. | ||||||||||||||||
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, 2012 | $ | (73 | ) | $ | 604 | $ | 7 | $ | 538 | |||||||
Other comprehensive income (loss) before reclassifications | 57 | (402 | ) | 97 | (248 | ) | ||||||||||
Amounts reclassified from AOCI | 0 | (133 | ) | (58 | ) | (191 | ) | |||||||||
Other comprehensive income (loss) | 57 | (535 | ) | 39 | (439 | ) | ||||||||||
Balance as of September 30, 2013 | $ | (16 | ) | $ | 69 | $ | 46 | $ | 99 | |||||||
The effects on net income of amounts reclassified from AOCI for the nine months ended September 30, 2013 were as follows (in millions, unaudited): | ||||||||||||||||
AOCI Components | Location | Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | ||||||||||||||
Unrealized gains on available-for-sale investments | Interest and other income, net | $ | 178 | |||||||||||||
Provision for income taxes | (45 | ) | ||||||||||||||
Net of tax | $ | 133 | ||||||||||||||
Unrealized gains on cash flow hedges for foreign exchange contracts | Revenue | $ | 92 | |||||||||||||
Provision for income taxes | (34 | ) | ||||||||||||||
Net of tax | $ | 58 | ||||||||||||||
Total amount reclassified, net of tax | $ | 191 | ||||||||||||||
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions |
In June 2013, we completed our acquisition of Waze Limited (Waze), a provider of a mobile map application which provides turn-by-turn navigation and real-time traffic updates powered by incidents and route information submitted by a community of users, for a total cash consideration of $969 million. The acquisition is expected to enhance our customers' user experience by offering real time traffic information to meet users' daily navigation needs. The fair value of assets acquired and liabilities assumed was based on a preliminary valuation and our estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price that are not yet finalized are related to certain income taxes and residual goodwill. Of the total purchase price, $841 million was attributed to goodwill and $193 million was attributed to intangible assets offset by $65 million of other net liabilities assumed. The goodwill of $841 million is primarily attributable to the synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. | |
During the nine months ended September 30, 2013, we completed 20 other acquisitions and purchases of intangible assets for a total cash consideration of approximately $369 million, of which $214 million was attributed to intangible assets, $162 million to goodwill, and $7 million to net liabilities assumed. These acquisitions generally enhance the breadth and depth of our expertise in engineering and other functional areas, our technologies, and our product offerings. The amount of goodwill expected to be deductible for tax purposes is approximately $36 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, 2013, patents and developed technology have a weighted-average useful life of 5.3 years, customer relationships have a weighted-average useful life of 5.8 years, and trade names and other have a weighted-average useful life of 4.2 years. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||
The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 were as follows (in millions, unaudited): | ||||||||||||
Balance as of December 31, 2012 | $ | 10,537 | ||||||||||
Goodwill acquired | 1,003 | |||||||||||
Goodwill disposed | (64 | ) | ||||||||||
Goodwill adjustment | (50 | ) | ||||||||||
Balance as of September 30, 2013 | $ | 11,426 | ||||||||||
As of September 30, 2013, the amount of goodwill related to the Motorola Mobile segment was not material. See Note 14 for further discussion of segment information. | ||||||||||||
Information regarding our acquisition-related intangible assets was as follows (in millions): | ||||||||||||
As of December 31, 2012 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
Patents and developed technology | $ | 7,310 | $ | 1,323 | $ | 5,987 | ||||||
Customer relationships | 2,061 | 847 | 1,214 | |||||||||
Trade names and other | 576 | 304 | 272 | |||||||||
Total | $ | 9,947 | $ | 2,474 | $ | 7,473 | ||||||
As of September 30, 2013 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
(unaudited) | ||||||||||||
Patents and developed technology | $ | 7,211 | $ | 1,894 | $ | 5,317 | ||||||
Customer relationships | 1,766 | 1,007 | 759 | |||||||||
Trade names and other | 551 | 337 | 214 | |||||||||
Total | $ | 9,528 | $ | 3,238 | $ | 6,290 | ||||||
Amortization expense relating to acquisition-related intangible assets was $287 million and $594 million for the three and nine months ended September 30, 2012 and $281 million and $879 million for the three and nine months ended September 30, 2013. | ||||||||||||
As of September 30, 2013, expected amortization expense relating to acquisition-related intangible assets for each of the next five years and thereafter was as follows (in millions, unaudited): | ||||||||||||
Remainder of 2013 | $ | 275 | ||||||||||
2014 | 1,072 | |||||||||||
2015 | 914 | |||||||||||
2016 | 827 | |||||||||||
2017 | 770 | |||||||||||
2018 | 726 | |||||||||||
Thereafter | 1,706 | |||||||||||
$ | 6,290 | |||||||||||
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Discontinued Operations | Discontinued Operations | |||||||||||||||
On April 17, 2013, we completed the sale of the Motorola Home segment to Arris and certain other persons for consideration of approximately $2,412 million in cash, including cash of $2,238 million received at the date of close and certain post-close adjustments of $174 million received in the third quarter of 2013, and approximately $175 million in Arris' common stock of 10.6 million shares. Subsequent to the transaction, we own approximately 7.8% of the outstanding shares of Arris. Additionally, in connection with the sale, we agreed to indemnify Arris for potential liability from certain intellectual property infringement litigation, for which we recorded an indemnification liability of $175 million, the majority of which was settled subsequent to the sale. | ||||||||||||||||
The sale resulted in a net gain of $762 million, which was presented as part of net income (loss) from discontinued operations in the Consolidated Statements of Income for the nine months ended September 30, 2013. | ||||||||||||||||
The following table presents financial results of the Motorola Home segment included in net income (loss) from discontinued operations for the three and nine months ended September 30, 2012 and 2013 (in millions, unaudited): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 (1) | |||||||||||||
Revenues | $ | 797 | $ | 0 | $ | 1,204 | $ | 804 | ||||||||
Loss from discontinued operations before income taxes | (6 | ) | 0 | (39 | ) | (67 | ) | |||||||||
Benefits from income taxes | 24 | 0 | 9 | 16 | ||||||||||||
Gain on disposal | 0 | 15 | 0 | 762 | ||||||||||||
Net income (loss) from discontinued operations | $ | 18 | $ | 15 | $ | (30 | ) | $ | 711 | |||||||
(1) The operating results of Motorola Home were included in our Consolidated Statements of Income from January 1, 2013 through the date of divestiture. | ||||||||||||||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions, unaudited): | ||||||||||||||||
Assets: | ||||||||||||||||
Accounts receivable | $ | 424 | ||||||||||||||
Inventories | 228 | |||||||||||||||
Deferred income taxes, net | 144 | |||||||||||||||
Prepaid and other current assets | 152 | |||||||||||||||
Property and equipment, net | 282 | |||||||||||||||
Intangible assets, net | 701 | |||||||||||||||
Other assets, non-current | 182 | |||||||||||||||
Total assets | $ | 2,113 | ||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 169 | ||||||||||||||
Accrued expenses and other liabilities | 294 | |||||||||||||||
Total liabilities | $ | 463 | ||||||||||||||
Restructuring_Charges
Restructuring Charges | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges | |||||||||||||||||||||||
Subsequent to our acquisition of Motorola Mobility Holdings, Inc. (Motorola) in May 2012, we initiated a restructuring plan for Motorola, primarily in our Motorola Mobile segment, to reduce workforce, reorganize management structure, close or consolidate certain facilities, as well as simplify our mobile product portfolio. These changes are designed to return the Motorola Mobile segment to profitability. Pursuant to this restructuring plan, we have incurred cumulative charges of approximately $850 million. | ||||||||||||||||||||||||
For the nine months ended September 30, 2013, changes to restructuring accruals were as follows (in millions, unaudited): | ||||||||||||||||||||||||
Severance and | Other | Total | ||||||||||||||||||||||
Related | Charges | |||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 238 | $ | 15 | $ | 253 | ||||||||||||||||||
Charges | 166 | 53 | 219 | |||||||||||||||||||||
Cash payments | (234 | ) | (29 | ) | (263 | ) | ||||||||||||||||||
Non-cash items(1) | (84 | ) | (14 | ) | (98 | ) | ||||||||||||||||||
Balance as of September 30, 2013 | $ | 86 | $ | 25 | $ | 111 | ||||||||||||||||||
(1) | Non-cash items were primarily related to restricted stock units (RSUs) and stock options. | |||||||||||||||||||||||
For the three and nine months ended September 30, 2012 and 2013, restructuring charges were as follows (in millions, unaudited): | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||
Severance and | Other | Total | Severance and | Other | Total | |||||||||||||||||||
Related | Charges | Related | Charges | |||||||||||||||||||||
Cost of revenues - Motorola Mobile | $ | 49 | $ | 3 | $ | 52 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Research and development | 101 | 0 | 101 | 8 | (2 | ) | 6 | |||||||||||||||||
Sales and marketing | 88 | 6 | 94 | 1 | 1 | 2 | ||||||||||||||||||
General and administrative | 19 | 0 | 19 | 2 | 1 | 3 | ||||||||||||||||||
Net income (loss) from discontinued operations | 31 | 0 | 31 | 0 | 0 | 0 | ||||||||||||||||||
Total charges | $ | 288 | $ | 9 | $ | 297 | $ | 11 | $ | 0 | $ | 11 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||
Severance and | Other | Total | Severance and | Other | Total | |||||||||||||||||||
Related | Charges | Related | Charges | |||||||||||||||||||||
Cost of revenues - Motorola Mobile | $ | 57 | $ | 3 | $ | 60 | $ | 26 | $ | 13 | $ | 39 | ||||||||||||
Research and development | 112 | 0 | 112 | 33 | 21 | 54 | ||||||||||||||||||
Sales and marketing | 116 | 6 | 122 | 16 | 13 | 29 | ||||||||||||||||||
General and administrative | 109 | 0 | 109 | 28 | 2 | 30 | ||||||||||||||||||
Net income (loss) from discontinued operations | 51 | 0 | 51 | 63 | 4 | 67 | ||||||||||||||||||
Total charges | $ | 445 | $ | 9 | $ | 454 | $ | 166 | $ | 53 | $ | 219 | ||||||||||||
We continue to evaluate our plans and further restructuring actions may occur which may cause us to incur additional restructuring charges, some of which may be significant. |
Interest_and_Other_Income_Net
Interest and Other Income, Net | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Interest income | $ | 172 | $ | 201 | $ | 534 | $ | 570 | ||||||||
Interest expense | (21 | ) | (22 | ) | (63 | ) | (62 | ) | ||||||||
Realized gains (losses) on available-for-sale investments, net | 36 | (26 | ) | 211 | 178 | |||||||||||
Foreign currency exchange gains (losses), net | (147 | ) | (153 | ) | (439 | ) | (271 | ) | ||||||||
Gain (loss) on divestiture of businesses | 0 | 0 | 188 | (57 | ) | |||||||||||
Other | 25 | 24 | 43 | 47 | ||||||||||||
Interest and other income, net | $ | 65 | $ | 24 | $ | 474 | $ | 405 | ||||||||
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
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. We believe we have adequately responded to all of the allegations made against us. We continue to cooperate with the EC and are pursuing a potential resolution that would avoid a finding of infringement and a fine. The EC has also opened an investigation into Motorola's licensing practices for standards essential patents and use of standards-essential patents in litigation on the basis of complaints brought by Microsoft and Apple. The EC has issued a Statement of Objections against Motorola alleging abuse of a dominant position with respect to these standards-essential patents. We have responded to the Statement of Objections and are defending the case. | |
The Comision Nacional de Defensa de la Competencia in Argentina, the Competition Commission of India, the Taiwan Fair Trade Commission and Brazil's Council for Economic Defense have also opened investigations into certain of our business practices. | |
State attorneys general from the states of Texas, Ohio, and Mississippi have also issued Civil Investigative Demands relating to our business practices. We are cooperating with the state attorneys general and are responding to their information requests on an ongoing basis. | |
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, including Android, Google Search, Google AdWords, Google AdSense, Google Books, Google News, Google Image Search, Google Chrome, Google Talk, Google Voice, Motorola devices and YouTube, 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 and antitrust (such as the pending investigations by the FTC and the EC 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 both probable that a loss has been incurred, and the amount can be reasonably estimated. We evaluate, on a monthly basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, 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. | |
Income Taxes | |
We are under audit by the Internal Revenue Service (IRS) and various other tax authorities. We have reserved for potential adjustments to our provision for income 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 that indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of tax benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state, and foreign income tax liabilities are less than the ultimate assessment, a further charge to expense would result. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments and Stockholders' Equity [Abstract] | |||||||||||||||||
Stockholders' Equity | Stockholders’ Equity | ||||||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted in the period presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||||
(unaudited) | |||||||||||||||||
Risk-free interest rate | N/A | N/A | 1.00% | 0.90% | |||||||||||||
Expected volatility | N/A | N/A | 29% | 29% | |||||||||||||
Expected life (in years) | N/A | N/A | 5.3 | 5.8 | |||||||||||||
Dividend yield | N/A | N/A | 0% | 0% | |||||||||||||
Weighted-average estimated fair value of options granted during the period | N/A | N/A | $193.80 | $214.39 | |||||||||||||
There were no stock options granted during the three months ended September 30, 2012 and 2013. | |||||||||||||||||
The following table summarizes the activities for our stock options for the nine months ended September 30, 2013: | |||||||||||||||||
Options Outstanding | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||
Contractual | (in millions) (1) | ||||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Balance as of December 31, 2012 | 8,551,395 | $ | 405.98 | ||||||||||||||
Granted | 1,571 | $ | 723.25 | ||||||||||||||
Exercised | (2,233,984 | ) | $ | 324.38 | |||||||||||||
Forfeited/canceled | (215,606 | ) | $ | 598.39 | |||||||||||||
Balance as of September 30, 2013 | 6,103,376 | $ | 429.29 | 4.9 | $ | 2,725 | |||||||||||
Exercisable as of September 30, 2013 | 4,715,082 | $ | 383.87 | 4 | $ | 2,320 | |||||||||||
Exercisable as of September 30, 2013 and expected to vest thereafter (2) | 5,932,616 | $ | 425.06 | 4.9 | $ | 2,675 | |||||||||||
(1) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $875.91 of our Class A common stock on September 30, 2013. | ||||||||||||||||
(2) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
The following table summarizes additional information regarding outstanding and vested and exercisable stock options as of September 30, 2013: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise | Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||||
Prices | Shares | Average | Average | Shares | Average | ||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||
Life | Price | Price | |||||||||||||||
(in years) | |||||||||||||||||
(unaudited) | |||||||||||||||||
$3.75–$94.80 | 38,379 | 1.9 | $ | 69.84 | 38,379 | $ | 69.84 | ||||||||||
$117.84–$198.41 | 149,902 | 1.3 | $ | 179.54 | 149,902 | $ | 179.54 | ||||||||||
$205.96–$298.86 | 188,866 | 1.7 | $ | 276.39 | 188,866 | $ | 276.39 | ||||||||||
$300.97–$399.00 | 2,427,221 | 3.6 | $ | 309.76 | 2,391,774 | $ | 309.77 | ||||||||||
$401.78–$499.07 | 773,929 | 5 | $ | 443.13 | 733,740 | $ | 441.95 | ||||||||||
$501.27–$595.35 | 1,614,947 | 5.8 | $ | 537.96 | 1,021,897 | $ | 533.01 | ||||||||||
$601.17–$675.82 | 890,947 | 8 | $ | 628.71 | 186,122 | $ | 617.7 | ||||||||||
$723.25–$762.50 | 19,185 | 9 | $ | 759.29 | 4,402 | $ | 762.5 | ||||||||||
$3.75–$762.50 | 6,103,376 | 4.9 | $ | 429.29 | 4,715,082 | $ | 383.87 | ||||||||||
The above tables include 820,714 warrants held by selected financial institutions that were options purchased from employees under our Transferable Stock Option (TSO) program, with a weighted-average exercise price of $440.21 and a weighted-average remaining life of 0.8 years. | |||||||||||||||||
During the nine months ended September 30, 2013, the number of shares underlying TSOs sold to selected financial institutions under the TSO program was 541,465 at a total value of $241 million, or an average price of $445.06 per share, including an average premium of $2.80 per share. The premium is calculated as the difference between (a) the sale price of the TSO and (b) the intrinsic value of the TSO, which we define as the excess, if any, of the price of our Class A common stock at the time of the sale over the exercise price of the TSO. In August 2013, we announced that the TSO program would be discontinued as of November 29, 2013. We do not believe this will have a material impact on our consolidated financial statements. | |||||||||||||||||
The total grant date fair value of stock options vested during the three and nine months ended September 30, 2012 was $112 million and $400 million. The total grant date fair value of stock options vested during the three and nine months ended September 30, 2013 was $44 million and $194 million. The aggregate intrinsic value of all stock options and warrants exercised during the three and nine months ended September 30, 2012 was $406 million and $638 million. The aggregate intrinsic value of all stock options and warrants exercised during the three and nine months ended September 30, 2013 was $189 million and $1,125 million. These amounts do not include the aggregate sales price of options sold under our TSO program. | |||||||||||||||||
As of September 30, 2013, there was $220 million of unrecognized compensation cost related to outstanding employee stock options. This amount is expected to be recognized over a weighted-average period of 2.0 years. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation related to these awards will be different from our expectations. | |||||||||||||||||
The following table summarizes the activities for our unvested RSUs for the nine months ended September 30, 2013: | |||||||||||||||||
Unvested Restricted Stock Units | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
(unaudited) | |||||||||||||||||
Unvested as of December 31, 2012 | 10,994,927 | $ | 566.32 | ||||||||||||||
Granted | 5,186,109 | $ | 876.3 | ||||||||||||||
Vested | (3,828,201 | ) | $ | 575.65 | |||||||||||||
Forfeited/canceled | (524,549 | ) | $ | 611.9 | |||||||||||||
Unvested as of September 30, 2013 | 11,828,286 | $ | 697.35 | ||||||||||||||
Expected to vest after September 30, 2013 (1) | 10,373,407 | $ | 697.35 | ||||||||||||||
(1) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
As of September 30, 2013, there was $6.5 billion of unrecognized compensation cost related to unvested 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 related to these awards will be different from our expectations. | |||||||||||||||||
Stock Split Effected In Form of Stock Dividend | |||||||||||||||||
In April 2012, our board of directors approved amendments to our certificate of incorporation that would, among other things, create a new class of non-voting capital stock (Class C capital stock). The amendments authorized 3 billion shares of Class C capital stock and also increased the authorized shares of Class A common stock from 6 billion to 9 billion. The amendments are reflected in our Fourth Amended and Restated Certificate of Incorporation (New Charter), the adoption of which was approved by stockholders at our 2012 Annual Meeting of Stockholders held on June 21, 2012. We have announced the intention of our board of directors to consider a distribution of shares of the Class C capital stock as a stock split effected in the form of a dividend to our holders of Class A and Class B common stock (Stock Split). The Class C capital stock will have no voting rights, except as required by applicable law. Except as expressly provided in the New Charter, shares of Class C capital stock will have the same rights and privileges and rank equally, share ratably and be identical in all other respects to the shares of Class A common stock and Class B common stock as to all matters. | |||||||||||||||||
The par value per share of our shares of Class A common stock and Class B common stock will remain unchanged at $0.001 per share after the Stock Split. On the effective date of the Stock Split, there will be a transfer between retained earnings and common stock and the amount transferred will be equal to the $0.001 par value of the Class C capital stock that is issued. We will give retroactive effect to prior period share and per share amounts in our consolidated financial statements for the effect of the Stock Split, such that prior periods are comparable to current period presentation. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
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 unrecognized tax benefits were $1,933 million and $2,353 million as of December 31, 2012 and September 30, 2013. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $1,749 million and $2,160 million as of December 31, 2012 and September 30, 2013. Our existing tax positions will continue to generate an increase in liabilities for unrecognized tax benefits. | |
Our provision for income taxes and effective tax rate decreased from the three months ended September 30, 2012 to the three months ended September 30, 2013, largely attributed to the effect of the 2013 annual federal research and development credit, whereas this credit was not available during 2012. Our provision for income taxes and effective tax rate decreased from the nine months ended September 30, 2012 to the nine months ended September 30, 2013, primarily as a result of a discrete tax benefit related to the federal research and development credit recognized in the first quarter of 2013. This discrete tax benefit was as a result of a retroactive extension of the 2012 federal research and development credit in accordance with the American Taxpayer Act of 2012, which was signed into law on January 2, 2013. | |
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. |
Information_about_Segments_and
Information about Segments and Geographic Areas | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
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 Home segment on April 17, 2013, we operate in the following two segments: | ||||||||||||||||||||||||||||||||
• | Google - includes our advertising and other non-advertising businesses | |||||||||||||||||||||||||||||||
• | Motorola Mobile - includes our mobile devices business acquired from Motorola | |||||||||||||||||||||||||||||||
Our chief operating decision maker does not evaluate operating segments using asset information. | ||||||||||||||||||||||||||||||||
The following table sets forth revenues and operating income (loss) by operating segment (in millions, unaudited): | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Motorola Mobile | Unallocated items (2) | Total | Motorola Mobile | Elimination and unallocated items (1) (2) | Total | |||||||||||||||||||||||||||
Revenues | $ | 11,526 | $ | 1,778 | $ | — | $ | 13,304 | $ | 13,772 | $ | 1,184 | $ | (63 | ) | $ | 14,893 | |||||||||||||||
Income (loss) from operations | 3,951 | (192 | ) | (1,019 | ) | 2,740 | 4,635 | (248 | ) | (943 | ) | 3,444 | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Motorola Mobile | Unallocated items (2) | Total | Motorola Mobile | Elimination and unallocated items (1) (2) | Total | |||||||||||||||||||||||||||
Revenues | $ | 33,135 | $ | 2,621 | $ | — | $ | 35,756 | $ | 39,830 | $ | 3,200 | $ | (63 | ) | $ | 42,967 | |||||||||||||||
Income (loss) from operations | 11,884 | (241 | ) | (2,277 | ) | 9,366 | 13,246 | (645 | ) | (2,557 | ) | 10,044 | ||||||||||||||||||||
(1) Beginning in the quarter ended September 30, 2013, Google and Motorola Mobile segment revenues are impacted by intersegment transactions that are eliminated in consolidation. Additionally, segment revenues associated with certain products were recognized in the quarter ended September 30, 2013 in our segment results, but deferred to future periods in our consolidated financial statements. This presentation is consistent with what is provided to the chief operating decision maker for purposes of making decisions about allocating resources to each segment and assessing its performance. | ||||||||||||||||||||||||||||||||
(2) Unallocated items, including stock-based compensation expense, as well as restructuring and other charges are not allocated to each segment because we do not include this information in our measurement of the performance of our operating segments. | ||||||||||||||||||||||||||||||||
Revenues by geography are based on the billing addresses of our customers for the Google segment and the ship-to-addresses of our customers for the Motorola Mobile segment. 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, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
United States | $ | 6,473 | $ | 6,660 | $ | 16,746 | $ | 19,357 | ||||||||||||||||||||||||
United Kingdom | 1,220 | 1,390 | 3,548 | 4,114 | ||||||||||||||||||||||||||||
Rest of the world | 5,611 | 6,843 | 15,462 | 19,496 | ||||||||||||||||||||||||||||
Total revenues | $ | 13,304 | $ | 14,893 | $ | 35,756 | $ | 42,967 | ||||||||||||||||||||||||
As of December 31, 2012 | As of | |||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Long-lived assets(1): | ||||||||||||||||||||||||||||||||
United States | $ | 20,985 | $ | 22,579 | ||||||||||||||||||||||||||||
International | 12,359 | 13,631 | ||||||||||||||||||||||||||||||
Total long-lived assets | $ | 33,344 | $ | 36,210 | ||||||||||||||||||||||||||||
(1) Includes Motorola Home segment as of December 31, 2012. |
Google_Inc_and_Summary_of_Sign1
Google Inc. and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
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 in our Google segment. To a lesser extent, we generate revenues primarily from sales of mobile devices in our Motorola Mobile segment. |
Basis of Consolidation | Basis of Consolidation |
The consolidated financial statements include the accounts of Google Inc. and our wholly-owned 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, 2013, the Consolidated Statements of Income for the three and nine months ended September 30, 2012 and 2013, the Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2012 and 2013, and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2013 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, 2013, our results of operations for the three and nine months ended September 30, 2012 and 2013, and our cash flows for the nine months ended September 30, 2012 and 2013. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013. | |
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, 2012 filed with the SEC on January 29, 2013. | |
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, fair values of stock-based awards, inventory valuations, 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. |
Net_Income_Per_Share_of_Class_1
Net Income Per Share of Class A and Class B Common Stock (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
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 (in millions, except share amounts which are reflected in thousands and per share amounts): | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 1,732 | $ | 426 | $ | 2,438 | $ | 517 | $ | 6,293 | $ | 1,588 | $ | 7,237 | $ | 1,596 | ||||||||||||||||
Allocation of undistributed earnings - discontinued operations | 14 | 4 | 12 | 3 | (24 | ) | (6 | ) | 582 | 129 | ||||||||||||||||||||||
Total | $ | 1,746 | $ | 430 | $ | 2,450 | $ | 520 | $ | 6,269 | $ | 1,582 | $ | 7,819 | $ | 1,725 | ||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||
Number of shares used in per share computation | 263,086 | 64,699 | 275,237 | 58,379 | 260,666 | 65,786 | 272,150 | 60,033 | ||||||||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 6.59 | $ | 6.59 | $ | 8.86 | $ | 8.86 | $ | 24.14 | $ | 24.14 | $ | 26.59 | $ | 26.59 | ||||||||||||||||
Discontinued operations | 0.05 | 0.05 | 0.04 | 0.04 | (0.09 | ) | (0.09 | ) | 2.14 | 2.14 | ||||||||||||||||||||||
Basic net income per share | $ | 6.64 | $ | 6.64 | $ | 8.9 | $ | 8.9 | $ | 24.05 | $ | 24.05 | $ | 28.73 | $ | 28.73 | ||||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 1,732 | $ | 426 | $ | 2,438 | $ | 517 | $ | 6,293 | $ | 1,588 | $ | 7,237 | $ | 1,596 | ||||||||||||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 426 | 0 | 517 | 0 | 1,588 | 0 | 1,596 | 0 | ||||||||||||||||||||||||
Reallocation of undistributed earnings to Class B shares | 0 | (7 | ) | 0 | (8 | ) | 0 | (23 | ) | 0 | (27 | ) | ||||||||||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 2,158 | $ | 419 | $ | 2,955 | $ | 509 | $ | 7,881 | $ | 1,565 | $ | 8,833 | $ | 1,569 | ||||||||||||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | 14 | $ | 4 | $ | 12 | $ | 3 | $ | (24 | ) | $ | (6 | ) | $ | 582 | $ | 129 | ||||||||||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 4 | 0 | 3 | 0 | (6 | ) | 0 | 129 | 0 | |||||||||||||||||||||||
Reallocation of undistributed earnings to Class B shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3 | ) | |||||||||||||||||||||||
Allocation of undistributed earnings - discontinued operations | $ | 18 | $ | 4 | $ | 15 | $ | 3 | $ | (30 | ) | $ | (6 | ) | $ | 711 | $ | 126 | ||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||
Number of shares used in basic computation | 263,086 | 64,699 | 275,237 | 58,379 | 260,666 | 65,786 | 272,150 | 60,033 | ||||||||||||||||||||||||
Weighted-average effect of dilutive securities | ||||||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Conversion of Class B to Class A common shares outstanding | 64,699 | 0 | 58,379 | 0 | 65,786 | 0 | 60,033 | 0 | ||||||||||||||||||||||||
Employee stock options, including warrants issued under Transferable Stock Option program | 3,015 | 36 | 2,607 | 1 | 2,943 | 39 | 2,800 | 5 | ||||||||||||||||||||||||
Restricted stock units | 2,514 | 0 | 3,012 | 0 | 2,019 | 0 | 3,095 | 0 | ||||||||||||||||||||||||
Number of shares used in per share computation | 333,314 | 64,735 | 339,235 | 58,380 | 331,414 | 65,825 | 338,078 | 60,038 | ||||||||||||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 6.48 | $ | 6.48 | $ | 8.71 | $ | 8.71 | $ | 23.78 | $ | 23.78 | $ | 26.13 | $ | 26.13 | ||||||||||||||||
Discontinued operations | 0.05 | 0.05 | 0.04 | 0.04 | (0.09 | ) | (0.09 | ) | 2.1 | 2.1 | ||||||||||||||||||||||
Diluted net income per share | $ | 6.53 | $ | 6.53 | $ | 8.75 | $ | 8.75 | $ | 23.69 | $ | 23.69 | $ | 28.23 | $ | 28.23 | ||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
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, 2012 and September 30, 2013 (in millions): | ||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 8,066 | $ | 0 | $ | 0 | $ | 8,066 | $ | 8,066 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 5,221 | 0 | 0 | 5,221 | 5,221 | 0 | |||||||||||||||||||||||
U.S. government notes | 10,853 | 77 | (1 | ) | 10,929 | 0 | 10,929 | ||||||||||||||||||||||
Marketable equity securities | 12 | 88 | 0 | 100 | 0 | 100 | |||||||||||||||||||||||
16,086 | 165 | (1 | ) | 16,250 | 5,221 | 11,029 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits | 984 | 0 | 0 | 984 | 562 | 422 | |||||||||||||||||||||||
Money market and other funds (1) | 929 | 0 | 0 | 929 | 929 | 0 | |||||||||||||||||||||||
U.S. government agencies | 1,882 | 20 | 0 | 1,902 | 0 | 1,902 | |||||||||||||||||||||||
Foreign government bonds | 1,996 | 81 | (3 | ) | 2,074 | 0 | 2,074 | ||||||||||||||||||||||
Municipal securities | 2,249 | 23 | (6 | ) | 2,266 | 0 | 2,266 | ||||||||||||||||||||||
Corporate debt securities | 7,200 | 414 | (14 | ) | 7,600 | 0 | 7,600 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 7,039 | 136 | (6 | ) | 7,169 | 0 | 7,169 | ||||||||||||||||||||||
Asset-backed securities | 847 | 1 | 0 | 848 | 0 | 848 | |||||||||||||||||||||||
23,126 | 675 | (29 | ) | 23,772 | 1,491 | 22,281 | |||||||||||||||||||||||
Total | $ | 47,278 | $ | 840 | $ | (30 | ) | $ | 48,088 | $ | 14,778 | $ | 33,310 | ||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Cash | $ | 7,822 | $ | 0 | $ | 0 | $ | 7,822 | $ | 7,822 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 3,940 | 0 | 0 | 3,940 | 3,940 | 0 | |||||||||||||||||||||||
U.S. government notes | 13,567 | 38 | (30 | ) | 13,575 | 402 | 13,173 | ||||||||||||||||||||||
Marketable equity securities | 241 | 173 | 0 | 414 | 0 | 414 | |||||||||||||||||||||||
17,748 | 211 | (30 | ) | 17,929 | 4,342 | 13,587 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits | 1,753 | 0 | 0 | 1,753 | 1,294 | 459 | |||||||||||||||||||||||
Money market and other funds(1) | 1,784 | 0 | 0 | 1,784 | 1,784 | 0 | |||||||||||||||||||||||
U.S. government agencies | 2,330 | 5 | (3 | ) | 2,332 | 0 | 2,332 | ||||||||||||||||||||||
Foreign government bonds | 2,408 | 13 | (49 | ) | 2,372 | 0 | 2,372 | ||||||||||||||||||||||
Municipal securities | 3,579 | 13 | (48 | ) | 3,544 | 0 | 3,544 | ||||||||||||||||||||||
Corporate debt securities | 9,323 | 163 | (140 | ) | 9,346 | 0 | 9,346 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 8,597 | 80 | (152 | ) | 8,525 | 0 | 8,525 | ||||||||||||||||||||||
Asset-backed securities | 1,118 | 0 | (2 | ) | 1,116 | 0 | 1,116 | ||||||||||||||||||||||
30,892 | 274 | (394 | ) | 30,772 | 3,078 | 27,694 | |||||||||||||||||||||||
Total | $ | 56,462 | $ | 485 | $ | (424 | ) | $ | 56,523 | $ | 15,242 | $ | 41,281 | ||||||||||||||||
-1 | The balances at December 31, 2012 and September 30, 2013 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 below for further discussion of this program. | ||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | The following table summarizes the estimated fair value of our investments in marketable securities, excluding marketable equity securities, designated as available-for-sale and classified by the contractual maturity date of the securities (in millions): | ||||||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Due in 1 year | $ | 4,809 | |||||||||||||||||||||||||||
Due in 1 year through 5 years | 18,819 | ||||||||||||||||||||||||||||
Due in 5 years through 10 years | 8,375 | ||||||||||||||||||||||||||||
Due after 10 years | 8,864 | ||||||||||||||||||||||||||||
Total | $ | 40,867 | |||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2012 and September 30, 2013, 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, 2012 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||
U.S. government notes | $ | 842 | $ | (1 | ) | $ | 0 | $ | 0 | $ | 842 | $ | (1 | ) | |||||||||||||||
Foreign government bonds | 509 | (2 | ) | 12 | (1 | ) | 521 | (3 | ) | ||||||||||||||||||||
Municipal securities | 686 | (6 | ) | 9 | 0 | 695 | (6 | ) | |||||||||||||||||||||
Corporate debt securities | 820 | (10 | ) | 81 | (4 | ) | 901 | (14 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 1,300 | (6 | ) | 0 | 0 | 1,300 | (6 | ) | |||||||||||||||||||||
Total | $ | 4,157 | $ | (25 | ) | $ | 102 | $ | (5 | ) | $ | 4,259 | $ | (30 | ) | ||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
U.S. government notes | $ | 4,329 | $ | (30 | ) | $ | 0 | $ | 0 | $ | 4,329 | $ | (30 | ) | |||||||||||||||
U.S. government agencies | 849 | (3 | ) | 0 | 0 | 849 | (3 | ) | |||||||||||||||||||||
Foreign government bonds | 1,563 | (47 | ) | 38 | (2 | ) | 1,601 | (49 | ) | ||||||||||||||||||||
Municipal securities | 1,845 | (47 | ) | 9 | (1 | ) | 1,854 | (48 | ) | ||||||||||||||||||||
Corporate debt securities | 4,667 | (136 | ) | 48 | (4 | ) | 4,715 | (140 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 4,974 | (149 | ) | 224 | (3 | ) | 5,198 | (152 | ) | ||||||||||||||||||||
Asset-backed securities | 734 | (2 | ) | 0 | 0 | 734 | (2 | ) | |||||||||||||||||||||
Total | $ | 18,961 | $ | (414 | ) | $ | 319 | $ | (10 | ) | $ | 19,280 | $ | (424 | ) | ||||||||||||||
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, 2012 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of | Fair Value of | Total Fair | ||||||||||||||||||||||||||
Derivatives | Derivatives Not | Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedging Instruments | Hedging Instruments | ||||||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | $ | 164 | $ | 13 | $ | 177 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 1 | 0 | 1 | |||||||||||||||||||||||||
Total | $ | 165 | $ | 13 | $ | 178 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 3 | $ | 4 | $ | 7 | ||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of | Fair Value of | Total Fair | ||||||||||||||||||||||||||
Derivatives | Derivatives Not | Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedging Instruments | Hedging Instruments | ||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | $ | 67 | $ | 3 | $ | 70 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 68 | 0 | 68 | |||||||||||||||||||||||||
Total | $ | 135 | $ | 3 | $ | 138 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 15 | $ | 0 | $ | 15 | ||||||||||||||||||||||
Total | $ | 15 | $ | 0 | $ | 15 | |||||||||||||||||||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | 2012 | 2013 | 2012 | 2013 | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | (110 | ) | $ | (43 | ) | $ | 110 | $ | 87 | |||||||||||||||||||
Interest rate contracts | (8 | ) | (1 | ) | (8 | ) | 67 | ||||||||||||||||||||||
Total | $ | (118 | ) | $ | (44 | ) | $ | 102 | $ | 154 | |||||||||||||||||||
Gains Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Location | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Revenues | $ | 62 | $ | 22 | $ | 180 | $ | 92 | ||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives (Amount | |||||||||||||||||||||||||||||
Excluded from Effectiveness Testing and Ineffective Portion) (1) | |||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Location | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (124 | ) | $ | (135 | ) | $ | (370 | ) | $ | (224 | ) | ||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
(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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationship | Location | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (38 | ) | $ | (49 | ) | $ | (22 | ) | $ | 13 | |||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Hedged item | Interest and | 36 | 46 | 15 | (19 | ) | |||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (2 | ) | $ | (3 | ) | $ | (7 | ) | $ | (6 | ) | |||||||||||||||||
(2) | Losses related to the amount excluded from effectiveness testing of the hedges were $2 million and $7 million for the three and nine months ended September 30, 2012 and $3 million and $6 million for the three and nine months ended September 30, 2013. | ||||||||||||||||||||||||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Derivatives Not Designated As Hedging Instruments | Location | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (82 | ) | $ | (55 | ) | $ | (107 | ) | $ | 102 | |||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and | 0 | 2 | (5 | ) | 2 | |||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (82 | ) | $ | (53 | ) | $ | (112 | ) | $ | 104 | ||||||||||||||||||
Offsetting Assets | As of December 31, 2012 and September 30, 2013, information related to these offsetting arrangements was as follows (in millions, unaudited): | ||||||||||||||||||||||||||||
Offsetting of Assets | |||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
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 | $ | 178 | $ | 0 | $ | 178 | $ | (4 | ) | (1) | $ | (40 | ) | $ | (12 | ) | $ | 122 | |||||||||||
Reverse repurchase agreements | 1,629 | 0 | 1,629 | (2) | 0 | 0 | (1,629 | ) | 0 | ||||||||||||||||||||
Total | $ | 1,807 | $ | 0 | $ | 1,807 | $ | (4 | ) | $ | (40 | ) | $ | (1,641 | ) | $ | 122 | ||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
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 | $ | 138 | $ | 0 | $ | 138 | $ | 0 | (1) | $ | (8 | ) | $ | (31 | ) | $ | 99 | ||||||||||||
Reverse repurchase agreements | 1,884 | 0 | 1,884 | (2) | 0 | 0 | (1,884 | ) | 0 | ||||||||||||||||||||
Total | $ | 2,022 | $ | 0 | $ | 2,022 | $ | 0 | $ | (8 | ) | $ | (1,915 | ) | $ | 99 | |||||||||||||
(1) The balances at December 31, 2012 and September 30, 2013 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 at December 31, 2012 and September 30, 2013 included $929 million and $1,784 million recorded in cash and cash equivalents, respectively, and $700 million and $100 million recorded in receivable under reverse repurchase agreements, respectively. | |||||||||||||||||||||||||||||
Offsetting Liabilities | |||||||||||||||||||||||||||||
Offsetting of Liabilities | |||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||
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 | $ | 7 | $ | 0 | $ | 7 | $ | (4 | ) | (3) | $ | 0 | $ | 0 | $ | 3 | |||||||||||||
Securities lending agreements | 1,673 | 0 | 1,673 | 0 | 0 | (1,673 | ) | 0 | |||||||||||||||||||||
Total | $ | 1,680 | $ | 0 | $ | 1,680 | $ | (4 | ) | $ | 0 | $ | (1,673 | ) | $ | 3 | |||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||
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 | $ | 15 | $ | 0 | $ | 15 | $ | 0 | (3) | $ | 0 | $ | 0 | $ | 15 | ||||||||||||||
Securities lending agreements | 1,893 | 0 | 1,893 | 0 | 0 | (1,877 | ) | 16 | |||||||||||||||||||||
Total | $ | 1,908 | $ | 0 | $ | 1,908 | $ | 0 | $ | 0 | $ | (1,877 | ) | $ | 31 | ||||||||||||||
(3) The balance at December 31, 2012 and September 30, 2013 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, 2013 | ||||
Debt Disclosure [Abstract] | ||||
Schedule of Long-term Debt Instruments | The details of these financing arrangements are described in the table below (in millions): | |||
As of | ||||
September 30, | ||||
2013 | ||||
(unaudited) | ||||
Short-Term Portion of Long-Term Debt | ||||
1.25% Notes due on May 19, 2014 | $ | 1,000 | ||
Capital Lease Obligation | 9 | |||
Total | $ | 1,009 | ||
Long-Term Debt | ||||
2.125% Notes due on May 19, 2016 | $ | 1,000 | ||
3.625% Notes due on May 19, 2021 | 1,000 | |||
Unamortized discount for the Notes above | (10 | ) | ||
Subtotal | 1,990 | |||
Capital Lease Obligation | 248 | |||
Total | $ | 2,238 | ||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Balance Sheet Components Disclosure [Abstract] | ||||||||||||||||
Inventories | Inventories consisted of the following (in millions): | |||||||||||||||
As of December 31, 2012 | As of | |||||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Raw materials and work in process | $ | 77 | $ | 64 | ||||||||||||
Finished goods | 428 | 171 | ||||||||||||||
Inventories | $ | 505 | $ | 235 | ||||||||||||
Property and Equipment | Property and equipment consisted of the following (in millions): | |||||||||||||||
As of December 31, 2012 | As of | |||||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Information technology assets | $ | 7,717 | $ | 8,371 | ||||||||||||
Land and buildings | 6,257 | 6,462 | ||||||||||||||
Construction in progress | 2,240 | 5,257 | ||||||||||||||
Leasehold improvements | 1,409 | 1,553 | ||||||||||||||
Furniture and fixtures | 74 | 79 | ||||||||||||||
Total | 17,697 | 21,722 | ||||||||||||||
Less: accumulated depreciation and amortization | 5,843 | 6,855 | ||||||||||||||
Property and equipment, net | $ | 11,854 | $ | 14,867 | ||||||||||||
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, 2012 | $ | (73 | ) | $ | 604 | $ | 7 | $ | 538 | |||||||
Other comprehensive income (loss) before reclassifications | 57 | (402 | ) | 97 | (248 | ) | ||||||||||
Amounts reclassified from AOCI | 0 | (133 | ) | (58 | ) | (191 | ) | |||||||||
Other comprehensive income (loss) | 57 | (535 | ) | 39 | (439 | ) | ||||||||||
Balance as of September 30, 2013 | $ | (16 | ) | $ | 69 | $ | 46 | $ | 99 | |||||||
Schedule of Effect on Net Income of Amounts Reclassified from Accumulated OCI | The effects on net income of amounts reclassified from AOCI for the nine months ended September 30, 2013 were as follows (in millions, unaudited): | |||||||||||||||
AOCI Components | Location | Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | ||||||||||||||
Unrealized gains on available-for-sale investments | Interest and other income, net | $ | 178 | |||||||||||||
Provision for income taxes | (45 | ) | ||||||||||||||
Net of tax | $ | 133 | ||||||||||||||
Unrealized gains on cash flow hedges for foreign exchange contracts | Revenue | $ | 92 | |||||||||||||
Provision for income taxes | (34 | ) | ||||||||||||||
Net of tax | $ | 58 | ||||||||||||||
Total amount reclassified, net of tax | $ | 191 | ||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 were as follows (in millions, unaudited): | |||||||||||
Balance as of December 31, 2012 | $ | 10,537 | ||||||||||
Goodwill acquired | 1,003 | |||||||||||
Goodwill disposed | (64 | ) | ||||||||||
Goodwill adjustment | (50 | ) | ||||||||||
Balance as of September 30, 2013 | $ | 11,426 | ||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Information regarding our acquisition-related intangible assets was as follows (in millions): | |||||||||||
As of December 31, 2012 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
Patents and developed technology | $ | 7,310 | $ | 1,323 | $ | 5,987 | ||||||
Customer relationships | 2,061 | 847 | 1,214 | |||||||||
Trade names and other | 576 | 304 | 272 | |||||||||
Total | $ | 9,947 | $ | 2,474 | $ | 7,473 | ||||||
As of September 30, 2013 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
(unaudited) | ||||||||||||
Patents and developed technology | $ | 7,211 | $ | 1,894 | $ | 5,317 | ||||||
Customer relationships | 1,766 | 1,007 | 759 | |||||||||
Trade names and other | 551 | 337 | 214 | |||||||||
Total | $ | 9,528 | $ | 3,238 | $ | 6,290 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2013, expected amortization expense relating to acquisition-related intangible assets for each of the next five years and thereafter was as follows (in millions, unaudited): | |||||||||||
Remainder of 2013 | $ | 275 | ||||||||||
2014 | 1,072 | |||||||||||
2015 | 914 | |||||||||||
2016 | 827 | |||||||||||
2017 | 770 | |||||||||||
2018 | 726 | |||||||||||
Thereafter | 1,706 | |||||||||||
$ | 6,290 | |||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Financial Results Motorola Home | The following table presents financial results of the Motorola Home segment included in net income (loss) from discontinued operations for the three and nine months ended September 30, 2012 and 2013 (in millions, unaudited): | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 (1) | |||||||||||||
Revenues | $ | 797 | $ | 0 | $ | 1,204 | $ | 804 | ||||||||
Loss from discontinued operations before income taxes | (6 | ) | 0 | (39 | ) | (67 | ) | |||||||||
Benefits from income taxes | 24 | 0 | 9 | 16 | ||||||||||||
Gain on disposal | 0 | 15 | 0 | 762 | ||||||||||||
Net income (loss) from discontinued operations | $ | 18 | $ | 15 | $ | (30 | ) | $ | 711 | |||||||
(1) The operating results of Motorola Home were included in our Consolidated Statements of Income from January 1, 2013 through the date of divestiture. | ||||||||||||||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions, unaudited): | ||||||||||||||||
Assets: | ||||||||||||||||
Accounts receivable | $ | 424 | ||||||||||||||
Inventories | 228 | |||||||||||||||
Deferred income taxes, net | 144 | |||||||||||||||
Prepaid and other current assets | 152 | |||||||||||||||
Property and equipment, net | 282 | |||||||||||||||
Intangible assets, net | 701 | |||||||||||||||
Other assets, non-current | 182 | |||||||||||||||
Total assets | $ | 2,113 | ||||||||||||||
Liabilities: | ||||||||||||||||
Accounts payable | $ | 169 | ||||||||||||||
Accrued expenses and other liabilities | 294 | |||||||||||||||
Total liabilities | $ | 463 | ||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Summary of Activities Related to Restructuring Charges | For the nine months ended September 30, 2013, changes to restructuring accruals were as follows (in millions, unaudited): | |||||||||||||||||||||||
Severance and | Other | Total | ||||||||||||||||||||||
Related | Charges | |||||||||||||||||||||||
Balance as of December 31, 2012 | $ | 238 | $ | 15 | $ | 253 | ||||||||||||||||||
Charges | 166 | 53 | 219 | |||||||||||||||||||||
Cash payments | (234 | ) | (29 | ) | (263 | ) | ||||||||||||||||||
Non-cash items(1) | (84 | ) | (14 | ) | (98 | ) | ||||||||||||||||||
Balance as of September 30, 2013 | $ | 86 | $ | 25 | $ | 111 | ||||||||||||||||||
(1) | Non-cash items were primarily related to restricted stock units (RSUs) and stock options. | |||||||||||||||||||||||
Total Restructuring Charges Included in Costs and Expenses | For the three and nine months ended September 30, 2012 and 2013, restructuring charges were as follows (in millions, unaudited): | |||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||
Severance and | Other | Total | Severance and | Other | Total | |||||||||||||||||||
Related | Charges | Related | Charges | |||||||||||||||||||||
Cost of revenues - Motorola Mobile | $ | 49 | $ | 3 | $ | 52 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Research and development | 101 | 0 | 101 | 8 | (2 | ) | 6 | |||||||||||||||||
Sales and marketing | 88 | 6 | 94 | 1 | 1 | 2 | ||||||||||||||||||
General and administrative | 19 | 0 | 19 | 2 | 1 | 3 | ||||||||||||||||||
Net income (loss) from discontinued operations | 31 | 0 | 31 | 0 | 0 | 0 | ||||||||||||||||||
Total charges | $ | 288 | $ | 9 | $ | 297 | $ | 11 | $ | 0 | $ | 11 | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||
Severance and | Other | Total | Severance and | Other | Total | |||||||||||||||||||
Related | Charges | Related | Charges | |||||||||||||||||||||
Cost of revenues - Motorola Mobile | $ | 57 | $ | 3 | $ | 60 | $ | 26 | $ | 13 | $ | 39 | ||||||||||||
Research and development | 112 | 0 | 112 | 33 | 21 | 54 | ||||||||||||||||||
Sales and marketing | 116 | 6 | 122 | 16 | 13 | 29 | ||||||||||||||||||
General and administrative | 109 | 0 | 109 | 28 | 2 | 30 | ||||||||||||||||||
Net income (loss) from discontinued operations | 51 | 0 | 51 | 63 | 4 | 67 | ||||||||||||||||||
Total charges | $ | 445 | $ | 9 | $ | 454 | $ | 166 | $ | 53 | $ | 219 | ||||||||||||
Interest_and_Other_Income_Net_
Interest and Other Income, Net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Interest income | $ | 172 | $ | 201 | $ | 534 | $ | 570 | ||||||||
Interest expense | (21 | ) | (22 | ) | (63 | ) | (62 | ) | ||||||||
Realized gains (losses) on available-for-sale investments, net | 36 | (26 | ) | 211 | 178 | |||||||||||
Foreign currency exchange gains (losses), net | (147 | ) | (153 | ) | (439 | ) | (271 | ) | ||||||||
Gain (loss) on divestiture of businesses | 0 | 0 | 188 | (57 | ) | |||||||||||
Other | 25 | 24 | 43 | 47 | ||||||||||||
Interest and other income, net | $ | 65 | $ | 24 | $ | 474 | $ | 405 | ||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments and Stockholders' Equity [Abstract] | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted in the period presented: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2012 | 2013 | 2012 | 2013 | ||||||||||||||
(unaudited) | |||||||||||||||||
Risk-free interest rate | N/A | N/A | 1.00% | 0.90% | |||||||||||||
Expected volatility | N/A | N/A | 29% | 29% | |||||||||||||
Expected life (in years) | N/A | N/A | 5.3 | 5.8 | |||||||||||||
Dividend yield | N/A | N/A | 0% | 0% | |||||||||||||
Weighted-average estimated fair value of options granted during the period | N/A | N/A | $193.80 | $214.39 | |||||||||||||
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, 2013: | ||||||||||||||||
Options Outstanding | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||
Contractual | (in millions) (1) | ||||||||||||||||
Term | |||||||||||||||||
(in years) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Balance as of December 31, 2012 | 8,551,395 | $ | 405.98 | ||||||||||||||
Granted | 1,571 | $ | 723.25 | ||||||||||||||
Exercised | (2,233,984 | ) | $ | 324.38 | |||||||||||||
Forfeited/canceled | (215,606 | ) | $ | 598.39 | |||||||||||||
Balance as of September 30, 2013 | 6,103,376 | $ | 429.29 | 4.9 | $ | 2,725 | |||||||||||
Exercisable as of September 30, 2013 | 4,715,082 | $ | 383.87 | 4 | $ | 2,320 | |||||||||||
Exercisable as of September 30, 2013 and expected to vest thereafter (2) | 5,932,616 | $ | 425.06 | 4.9 | $ | 2,675 | |||||||||||
(1) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $875.91 of our Class A common stock on September 30, 2013. | ||||||||||||||||
(2) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes additional information regarding outstanding and vested and exercisable stock options as of September 30, 2013: | ||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise | Number of | Weighted- | Weighted- | Number of | Weighted- | ||||||||||||
Prices | Shares | Average | Average | Shares | Average | ||||||||||||
Remaining | Exercise | Exercise | |||||||||||||||
Life | Price | Price | |||||||||||||||
(in years) | |||||||||||||||||
(unaudited) | |||||||||||||||||
$3.75–$94.80 | 38,379 | 1.9 | $ | 69.84 | 38,379 | $ | 69.84 | ||||||||||
$117.84–$198.41 | 149,902 | 1.3 | $ | 179.54 | 149,902 | $ | 179.54 | ||||||||||
$205.96–$298.86 | 188,866 | 1.7 | $ | 276.39 | 188,866 | $ | 276.39 | ||||||||||
$300.97–$399.00 | 2,427,221 | 3.6 | $ | 309.76 | 2,391,774 | $ | 309.77 | ||||||||||
$401.78–$499.07 | 773,929 | 5 | $ | 443.13 | 733,740 | $ | 441.95 | ||||||||||
$501.27–$595.35 | 1,614,947 | 5.8 | $ | 537.96 | 1,021,897 | $ | 533.01 | ||||||||||
$601.17–$675.82 | 890,947 | 8 | $ | 628.71 | 186,122 | $ | 617.7 | ||||||||||
$723.25–$762.50 | 19,185 | 9 | $ | 759.29 | 4,402 | $ | 762.5 | ||||||||||
$3.75–$762.50 | 6,103,376 | 4.9 | $ | 429.29 | 4,715,082 | $ | 383.87 | ||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes the activities for our unvested RSUs for the nine months ended September 30, 2013: | ||||||||||||||||
Unvested Restricted Stock Units | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
(unaudited) | |||||||||||||||||
Unvested as of December 31, 2012 | 10,994,927 | $ | 566.32 | ||||||||||||||
Granted | 5,186,109 | $ | 876.3 | ||||||||||||||
Vested | (3,828,201 | ) | $ | 575.65 | |||||||||||||
Forfeited/canceled | (524,549 | ) | $ | 611.9 | |||||||||||||
Unvested as of September 30, 2013 | 11,828,286 | $ | 697.35 | ||||||||||||||
Expected to vest after September 30, 2013 (1) | 10,373,407 | $ | 697.35 | ||||||||||||||
(1) | RSUs expected to vest reflect an estimated forfeiture rate. |
Information_about_Segments_and1
Information about Segments and Geographic Areas (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||
Revenues and Operating Income (Loss) by Operating Segments | The following table sets forth revenues and operating income (loss) by operating segment (in millions, unaudited): | |||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Motorola Mobile | Unallocated items (2) | Total | Motorola Mobile | Elimination and unallocated items (1) (2) | Total | |||||||||||||||||||||||||||
Revenues | $ | 11,526 | $ | 1,778 | $ | — | $ | 13,304 | $ | 13,772 | $ | 1,184 | $ | (63 | ) | $ | 14,893 | |||||||||||||||
Income (loss) from operations | 3,951 | (192 | ) | (1,019 | ) | 2,740 | 4,635 | (248 | ) | (943 | ) | 3,444 | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||
Motorola Mobile | Unallocated items (2) | Total | Motorola Mobile | Elimination and unallocated items (1) (2) | Total | |||||||||||||||||||||||||||
Revenues | $ | 33,135 | $ | 2,621 | $ | — | $ | 35,756 | $ | 39,830 | $ | 3,200 | $ | (63 | ) | $ | 42,967 | |||||||||||||||
Income (loss) from operations | 11,884 | (241 | ) | (2,277 | ) | 9,366 | 13,246 | (645 | ) | (2,557 | ) | 10,044 | ||||||||||||||||||||
(1) Beginning in the quarter ended September 30, 2013, Google and Motorola Mobile segment revenues are impacted by intersegment transactions that are eliminated in consolidation. Additionally, segment revenues associated with certain products were recognized in the quarter ended September 30, 2013 in our segment results, but deferred to future periods in our consolidated financial statements. This presentation is consistent with what is provided to the chief operating decision maker for purposes of making decisions about allocating resources to each segment and assessing its performance. | ||||||||||||||||||||||||||||||||
(2) Unallocated items, including stock-based compensation expense, as well as restructuring and other charges are not allocated to each segment because we do not include this information in our measurement of the performance of our operating segments. | ||||||||||||||||||||||||||||||||
Revenue by Geography | 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, | |||||||||||||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
United States | $ | 6,473 | $ | 6,660 | $ | 16,746 | $ | 19,357 | ||||||||||||||||||||||||
United Kingdom | 1,220 | 1,390 | 3,548 | 4,114 | ||||||||||||||||||||||||||||
Rest of the world | 5,611 | 6,843 | 15,462 | 19,496 | ||||||||||||||||||||||||||||
Total revenues | $ | 13,304 | $ | 14,893 | $ | 35,756 | $ | 42,967 | ||||||||||||||||||||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | ||||||||||||||||||||||||||||||||
As of December 31, 2012 | As of | |||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
Long-lived assets(1): | ||||||||||||||||||||||||||||||||
United States | $ | 20,985 | $ | 22,579 | ||||||||||||||||||||||||||||
International | 12,359 | 13,631 | ||||||||||||||||||||||||||||||
Total long-lived assets | $ | 33,344 | $ | 36,210 | ||||||||||||||||||||||||||||
(1) Includes Motorola Home segment as of December 31, 2012. |
Google_Inc_and_Summary_of_Sign2
Google Inc. and Summary of Significant Accounting Policies (Details) (Revision in estimated useful lives of certain types of PP&E, USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Revision in estimated useful lives of certain types of PP&E | ||
Change in Accounting Estimate [Line Items] | ||
Additional depreciation expense | $48 | $169 |
Net_Income_Per_Share_of_Class_2
Net Income Per Share of Class A and Class B Common Stock (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator | ||||
Allocation of undistributed earnings - continuing operations | $2,955 | $2,158 | $8,833 | $7,881 |
Allocation of undistributed earnings - discontinued operations | 15 | 18 | 711 | -30 |
Net income | 2,970 | 2,176 | 9,544 | 7,851 |
Denominator | ||||
Number of shares used in basic computation | 333,616 | 327,785 | 332,183 | 326,452 |
Continuing operations (in dollars per share) | $8.86 | $6.59 | $26.59 | $24.14 |
Discontinued operations (in dollars per share) | $0.04 | $0.05 | $2.14 | ($0.09) |
Net income per share - basic (in dollars per share) | $8.90 | $6.64 | $28.73 | $24.05 |
Numerator | ||||
Allocation of undistributed earnings - continuing operations | 2,955 | 2,158 | 8,833 | 7,881 |
Allocation of undistributed earnings - discontinued operations | 15 | 18 | 711 | -30 |
Denominator | ||||
Number of shares used in basic computation | 333,616 | 327,785 | 332,183 | 326,452 |
Weighted-average effect of dilutive securities | ||||
Number of shares used in per share computation | 339,235 | 333,314 | 338,078 | 331,414 |
Continuing operations (in dollars per share) | $8.71 | $6.48 | $26.13 | $23.78 |
Discontinued operations (in dollars per share) | $0.04 | $0.05 | $2.10 | ($0.09) |
Net income per share - diluted (in dollars per share) | $8.75 | $6.53 | $28.23 | $23.69 |
Class A Common Stock | ||||
Numerator | ||||
Allocation of undistributed earnings - continuing operations | 2,438 | 1,732 | 7,237 | 6,293 |
Allocation of undistributed earnings - discontinued operations | 12 | 14 | 582 | -24 |
Net income | 2,450 | 1,746 | 7,819 | 6,269 |
Denominator | ||||
Number of shares used in basic computation | 275,237 | 263,086 | 272,150 | 260,666 |
Continuing operations (in dollars per share) | $8.86 | $6.59 | $26.59 | $24.14 |
Discontinued operations (in dollars per share) | $0.04 | $0.05 | $2.14 | ($0.09) |
Net income per share - basic (in dollars per share) | $8.90 | $6.64 | $28.73 | $24.05 |
Numerator | ||||
Allocation of undistributed earnings - continuing operations | 2,438 | 1,732 | 7,237 | 6,293 |
Allocation of undistributed earnings - discontinued operations | 12 | 14 | 582 | -24 |
Denominator | ||||
Number of shares used in basic computation | 275,237 | 263,086 | 272,150 | 260,666 |
Weighted-average effect of dilutive securities | ||||
Conversion of Class B to Class A common shares outstanding (in shares) | 58,379 | 64,699 | 60,033 | 65,786 |
Employee stock options, including warrants issued under Transferable Stock Option program (in shares) | 2,607 | 3,015 | 2,800 | 2,943 |
Restricted stock units (in shares) | 3,012 | 2,514 | 3,095 | 2,019 |
Number of shares used in per share computation | 339,235 | 333,314 | 338,078 | 331,414 |
Continuing operations (in dollars per share) | $8.71 | $6.48 | $26.13 | $23.78 |
Discontinued operations (in dollars per share) | $0.04 | $0.05 | $2.10 | ($0.09) |
Net income per share - diluted (in dollars per share) | $8.75 | $6.53 | $28.23 | $23.69 |
Class A Common Stock | Continuing Operations | ||||
Numerator | ||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 517 | 426 | 1,596 | 1,588 |
Reallocation of undistributed earnings to Class B shares | 0 | 0 | 0 | 0 |
Allocation of undistributed earnings | 2,955 | 2,158 | 8,833 | 7,881 |
Class A Common Stock | Discontinued Operations | ||||
Numerator | ||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 3 | 4 | 129 | -6 |
Reallocation of undistributed earnings to Class B shares | 0 | 0 | 0 | 0 |
Allocation of undistributed earnings | 15 | 18 | 711 | -30 |
Class B Common Stock | ||||
Numerator | ||||
Allocation of undistributed earnings - continuing operations | 517 | 426 | 1,596 | 1,588 |
Allocation of undistributed earnings - discontinued operations | 3 | 4 | 129 | -6 |
Net income | 520 | 430 | 1,725 | 1,582 |
Denominator | ||||
Number of shares used in basic computation | 58,379 | 64,699 | 60,033 | 65,786 |
Continuing operations (in dollars per share) | $8.86 | $6.59 | $26.59 | $24.14 |
Discontinued operations (in dollars per share) | $0.04 | $0.05 | $2.14 | ($0.09) |
Net income per share - basic (in dollars per share) | $8.90 | $6.64 | $28.73 | $24.05 |
Numerator | ||||
Allocation of undistributed earnings - continuing operations | 517 | 426 | 1,596 | 1,588 |
Allocation of undistributed earnings - discontinued operations | 3 | 4 | 129 | -6 |
Denominator | ||||
Number of shares used in basic computation | 58,379 | 64,699 | 60,033 | 65,786 |
Weighted-average effect of dilutive securities | ||||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 | 0 | 0 |
Employee stock options, including warrants issued under Transferable Stock Option program (in shares) | 1 | 36 | 5 | 39 |
Restricted stock units (in shares) | 0 | 0 | 0 | 0 |
Number of shares used in per share computation | 58,380 | 64,735 | 60,038 | 65,825 |
Continuing operations (in dollars per share) | $8.71 | $6.48 | $26.13 | $23.78 |
Discontinued operations (in dollars per share) | $0.04 | $0.05 | $2.10 | ($0.09) |
Net income per share - diluted (in dollars per share) | $8.75 | $6.53 | $28.23 | $23.69 |
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 to Class B shares | -8 | -7 | -27 | -23 |
Allocation of undistributed earnings | 509 | 419 | 1,569 | 1,565 |
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 to Class B shares | 0 | 0 | -3 | 0 |
Allocation of undistributed earnings | $3 | $4 | $126 | ($6) |
Financial_Instruments_Cash_Cas
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 $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | $56,462 | $47,278 | ||||
Gross Unrealized Gains | 485 | 840 | ||||
Gross Unrealized Losses | -424 | -30 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 56,523 | 48,088 | ||||
Cash and Cash Equivalents | 15,242 | 14,778 | 16,260 | 9,983 | ||
Marketable Securities | 41,281 | 33,310 | ||||
Cash | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 7,822 | 8,066 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 7,822 | 8,066 | ||||
Cash and Cash Equivalents | 7,822 | 8,066 | ||||
Marketable Securities | 0 | 0 | ||||
Level 1 | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 17,748 | 16,086 | ||||
Gross Unrealized Gains | 211 | 165 | ||||
Gross Unrealized Losses | -30 | -1 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 17,929 | 16,250 | ||||
Cash and Cash Equivalents | 4,342 | 5,221 | ||||
Marketable Securities | 13,587 | 11,029 | ||||
Level 1 | Money market and other funds | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 3,940 | 5,221 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 3,940 | 5,221 | ||||
Cash and Cash Equivalents | 3,940 | 5,221 | ||||
Marketable Securities | 0 | 0 | ||||
Level 1 | US Government notes | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 13,567 | 10,853 | ||||
Gross Unrealized Gains | 38 | 77 | ||||
Gross Unrealized Losses | -30 | -1 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 13,575 | 10,929 | ||||
Cash and Cash Equivalents | 402 | 0 | ||||
Marketable Securities | 13,173 | 10,929 | ||||
Level 1 | Marketable equity securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 241 | 12 | ||||
Gross Unrealized Gains | 173 | 88 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 414 | 100 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 414 | 100 | ||||
Level 2 | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 30,892 | 23,126 | ||||
Gross Unrealized Gains | 274 | 675 | ||||
Gross Unrealized Losses | -394 | -29 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 30,772 | 23,772 | ||||
Cash and Cash Equivalents | 3,078 | 1,491 | ||||
Marketable Securities | 27,694 | 22,281 | ||||
Level 2 | Money market and other funds | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 1,784 | [1] | 929 | [1] | ||
Gross Unrealized Gains | 0 | [1] | 0 | [1] | ||
Gross Unrealized Losses | 0 | [1] | 0 | [1] | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 1,784 | [1] | 929 | [1] | ||
Cash and Cash Equivalents | 1,784 | [1] | 929 | [1] | ||
Marketable Securities | 0 | [1] | 0 | [1] | ||
Level 2 | Time deposits | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 1,753 | 984 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 1,753 | 984 | ||||
Cash and Cash Equivalents | 1,294 | 562 | ||||
Marketable Securities | 459 | 422 | ||||
Level 2 | U.S. government agencies | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 2,330 | 1,882 | ||||
Gross Unrealized Gains | 5 | 20 | ||||
Gross Unrealized Losses | -3 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 2,332 | 1,902 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 2,332 | 1,902 | ||||
Level 2 | Foreign government bonds | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 2,408 | 1,996 | ||||
Gross Unrealized Gains | 13 | 81 | ||||
Gross Unrealized Losses | -49 | -3 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 2,372 | 2,074 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 2,372 | 2,074 | ||||
Level 2 | Municipal securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 3,579 | 2,249 | ||||
Gross Unrealized Gains | 13 | 23 | ||||
Gross Unrealized Losses | -48 | -6 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 3,544 | 2,266 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 3,544 | 2,266 | ||||
Level 2 | Corporate debt securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 9,323 | 7,200 | ||||
Gross Unrealized Gains | 163 | 414 | ||||
Gross Unrealized Losses | -140 | -14 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 9,346 | 7,600 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 9,346 | 7,600 | ||||
Level 2 | Agency residential mortgage-backed securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 8,597 | 7,039 | ||||
Gross Unrealized Gains | 80 | 136 | ||||
Gross Unrealized Losses | -152 | -6 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 8,525 | 7,169 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 8,525 | 7,169 | ||||
Level 2 | Asset-backed securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 1,118 | 847 | ||||
Gross Unrealized Gains | 0 | 1 | ||||
Gross Unrealized Losses | -2 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $3,160 and $5,103) | 1,116 | 848 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | $1,116 | $848 | ||||
[1] | The balances at December 31, 2012 and September 30, 2013 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 below for further discussion of this program. |
Financial_Instruments_Addition
Financial Instruments (Additional Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||
Share data in Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Apr. 17, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Interest rate contracts | Interest rate contracts | Cash Flow Hedging Relationship | Cash Flow Hedging Relationship | Cash Flow Hedging Relationship | Derivatives in Fair Value Hedging Relationship | Derivatives in Fair Value Hedging Relationship | Motorola Home business | Motorola Home business | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | ||||||
Foreign exchange contracts to purchase U.S. dollars with foreign currencies | Foreign exchange contracts to purchase U.S. dollars with foreign currencies | Foreign exchange contracts to purchase US dollars | Foreign exchange contracts to purchase U.S. dollars with foreign currencies | Foreign exchange contracts to purchase U.S. dollars with foreign currencies | Interest rate swap | Interest rate swap | Foreign exchange contracts | Foreign exchange contracts | ||||||||||
Financial Instruments and Fair Value [Line Items] | ||||||||||||||||||
Value of Arris shares received in divestiture | $175,000,000 | $175,000,000 | ||||||||||||||||
Number of shares of Arris' common stock received as part of sale consideration | 10.6 | 10.6 | ||||||||||||||||
Gross realized gains on the sale of our marketable securities | 35,000,000 | 82,000,000 | 295,000,000 | 290,000,000 | ||||||||||||||
Gross realized losses on the sale of our marketable securities | 61,000,000 | 46,000,000 | 117,000,000 | 79,000,000 | ||||||||||||||
Cash collateral received from derivative financial instruments | 12,000,000 | 12,000,000 | 43,000,000 | |||||||||||||||
Foreign exchange option contracts, maximum maturities (in months) | 36 months | |||||||||||||||||
Forward-starting interest swaps, notional amount | 75,000,000 | 25,000,000 | 7,000,000,000 | 9,500,000,000 | 1,600,000,000 | 1,100,000,000 | 1,000,000,000 | 1,000,000,000 | 6,100,000,000 | 6,600,000,000 | ||||||||
Forward-starting interest swaps, anticipated debt issuance amount | 1,000,000,000 | |||||||||||||||||
Effective portion of our cash flow hedges before tax effect | 73,000,000 | 73,000,000 | ||||||||||||||||
Cash flow hedges, expected to be reclassified from AOCI to revenues within the next 12 months | $7,000,000 | $7,000,000 |
Financial_Instruments_Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Fair Value Disclosures [Abstract] | |
Due in 1 year | $4,809 |
Due in 1 year through 5 years | 18,819 |
Due in 5 years through 10 years | 8,375 |
Due after 10 years | 8,864 |
Total | $40,867 |
Financial_Instruments_Gross_Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $18,961 | $4,157 |
Less than 12 Months, Unrealized Loss | -414 | -25 |
12 Months or Greater, Fair Value | 319 | 102 |
12 Months or Greater, Unrealized Loss | -10 | -5 |
Total Fair Value | 19,280 | 4,259 |
Total Unrealized Loss | -424 | -30 |
US government notes | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,329 | 842 |
Less than 12 Months, Unrealized Loss | -30 | -1 |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total Fair Value | 4,329 | 842 |
Total Unrealized Loss | -30 | -1 |
U.S. government agencies | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 849 | |
Less than 12 Months, Unrealized Loss | -3 | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Loss | 0 | |
Total Fair Value | 849 | |
Total Unrealized Loss | -3 | |
Foreign government bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,563 | 509 |
Less than 12 Months, Unrealized Loss | -47 | -2 |
12 Months or Greater, Fair Value | 38 | 12 |
12 Months or Greater, Unrealized Loss | -2 | -1 |
Total Fair Value | 1,601 | 521 |
Total Unrealized Loss | -49 | -3 |
Municipal securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 1,845 | 686 |
Less than 12 Months, Unrealized Loss | -47 | -6 |
12 Months or Greater, Fair Value | 9 | 9 |
12 Months or Greater, Unrealized Loss | -1 | 0 |
Total Fair Value | 1,854 | 695 |
Total Unrealized Loss | -48 | -6 |
Corporate debt securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,667 | 820 |
Less than 12 Months, Unrealized Loss | -136 | -10 |
12 Months or Greater, Fair Value | 48 | 81 |
12 Months or Greater, Unrealized Loss | -4 | -4 |
Total Fair Value | 4,715 | 901 |
Total Unrealized Loss | -140 | -14 |
Agency residential mortgage-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 4,974 | 1,300 |
Less than 12 Months, Unrealized Loss | -149 | -6 |
12 Months or Greater, Fair Value | 224 | 0 |
12 Months or Greater, Unrealized Loss | -3 | 0 |
Total Fair Value | 5,198 | 1,300 |
Total Unrealized Loss | -152 | -6 |
Asset-backed securities | ||
Investments, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 734 | |
Less than 12 Months, Unrealized Loss | -2 | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Loss | 0 | |
Total Fair Value | 734 | |
Total Unrealized Loss | ($2) |
Financial_Instruments_Fair_Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Assets: | ||
Derivative Assets | $138 | $178 |
Derivative Liabilities: | ||
Derivative Liabilities | 15 | 7 |
Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 70 | 177 |
Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 15 | 7 |
Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 68 | 1 |
Fair Value of Derivatives Designated as Hedging Instruments | ||
Derivative Assets: | ||
Derivative Assets | 135 | 165 |
Derivative Liabilities: | ||
Derivative Liabilities | 15 | |
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 | 67 | 164 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 15 | 3 |
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 | 68 | 1 |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Assets: | ||
Derivative Assets | 3 | 13 |
Derivative Liabilities: | ||
Derivative Liabilities | 0 | |
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 | 3 | 13 |
Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 0 | 4 |
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 | $0 |
Financial_Instruments_Effect_o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | ($44) | ($118) | $154 | $102 | ||||
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) | -43 | -110 | 87 | 110 | ||||
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains Reclassified from AOCI into Income (Effective Portion) | 22 | 62 | 92 | 180 | ||||
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Interest and other income, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Losses Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | -135 | [1] | -124 | [1] | -224 | [1] | -370 | [1] |
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) | -1 | -8 | 67 | -8 | ||||
Derivatives in Fair Value Hedging Relationship | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (Losses) Recognized in Income on Derivatives - Total | -3 | [2] | -2 | [2] | -6 | [2] | -7 | [2] |
Derivatives in Fair Value Hedging Relationship | Interest and other income, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (Losses) Recognized in Income on Derivatives - Foreign exchange contracts | -49 | [2] | -38 | [2] | 13 | [2] | -22 | [2] |
Gains (Losses) Recognized in Income on Derivatives - Hedged item | 46 | [2] | 36 | [2] | -19 | [2] | 15 | [2] |
Derivatives Not Designated as Hedging Instruments | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (Losses) Recognized in Income on Derivatives | -53 | -82 | 104 | -112 | ||||
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Interest and other income, net | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Gains (Losses) Recognized in Income on Derivatives | -55 | -82 | 102 | -107 | ||||
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 | $2 | $0 | $2 | ($5) | ||||
[1] | Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented. | |||||||
[2] | Losses related to the amount excluded from effectiveness testing of the hedges were $2 million and $7 million for the three and nine months ended September 30, 2012 and $3 million and $6 million for the three and nine months ended September 30, 2013. |
Financial_Instruments_Effect_o1
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income - Parenthetical) (Details) (Derivatives in Fair Value Hedging Relationship, Interest and other income, net, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivatives in Fair Value Hedging Relationship | Interest and other income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Losses related to the amount excluded from effectiveness testing of the hedges | $3 | $2 | $6 | $7 |
Financial_Instruments_Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Derivative Assets [Abstract] | ||||
Derivatives - Gross Amounts of Recognized Assets | $138 | $178 | ||
Derivatives - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Derivatives - Net Presented in the Consolidated Balance Sheets | 138 | 178 | ||
Derivatives - Financial Instruments | 0 | [1] | -4 | [1] |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | -8 | -40 | ||
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | -31 | -12 | ||
Derivatives - Net Assets Exposed | 99 | 122 | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | 1,884 | 1,629 | ||
Reverse repurchase agreements - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Reverse repurchase agreements - Net Presented in the Consolidated Balance Sheets | 1,884 | [2] | 1,629 | [2] |
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 | -1,884 | -1,629 | ||
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 | 2,022 | 1,807 | ||
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Total - Net Presented in the Consolidated Balance Sheets | 2,022 | 1,807 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | -4 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | -8 | -40 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | -1,915 | -1,641 | ||
Total - Net Assets Exposed | 99 | 122 | ||
Offsetting Derivative Liabilities [Abstract] | ||||
Derivatives - Gross Amounts of Recognized Liabilities | 15 | 7 | ||
Derivatives - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Derivatives - Net Presented in the Consolidated Balance Sheets | 15 | 7 | ||
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | [3] | -4 | [3] |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 | ||
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Pledged | 0 | 0 | ||
Derivatives - Net Liabilities | 15 | 3 | ||
Offsetting Securities Loaned [Abstract] | ||||
Securities lending agreements - Gross Amounts of Recognized Liabilities | 1,893 | 1,673 | ||
Securities lending agreements - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Securities lending agreements - Net Presented in the Consolidated Balance Sheets | 1,893 | 1,673 | ||
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 | -1,877 | -1,673 | ||
Securities lending agreements - Net Liabilities | 16 | 0 | ||
Offsetting Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned [Abstract] | ||||
Total - Gross Amounts of Recognized Liabilities | 1,908 | 1,680 | ||
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Total - Net Presented in the Consolidated Balance Sheets | 1,908 | 1,680 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | -4 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Pledged | -1,877 | -1,673 | ||
Total - Net Liabilities | 31 | 3 | ||
Cash and cash equivalents | ||||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | 1,784 | 929 | ||
Receivable under reverse repurchase agreements | ||||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | $100 | $700 | ||
[1] | The balances at December 31, 2012 and September 30, 2013 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 at December 31, 2012 and September 30, 2013 included $929 million and $1,784 million recorded in cash and cash equivalents, respectively, and $700 million and $100 million recorded in receivable under reverse repurchase agreements, respectively. | |||
[3] | The balance at December 31, 2012 and September 30, 2013 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt_Additional_Information_De
Debt (Additional Information) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-11 | Sep. 30, 2013 |
1.25% Notes due on May 19, 2014 | 2.125% Notes due on May 19, 2016 | 3.625% Notes due on May 19, 2021 | Unsecured debt | Commercial paper financing credit facility | |||
Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt financing program through the issuance of commercial paper | $3,000,000,000 | $3,000,000,000 | |||||
Amounts of commercial paper outstanding | 2,000,000,000 | 2,500,000,000 | |||||
Weighted average yield for commercial paper outstanding | 0.10% | 0.20% | |||||
Outstanding amount under the Credit Facility | 0 | 0 | |||||
Line of credit maturity date | 2016-07 | ||||||
Debt instrument, face amount | 3,000,000,000 | ||||||
Number of unsecured senior notes tranches | 3 | ||||||
Effective interest rate | 1.26% | 2.24% | 3.73% | ||||
Estimated fair value of long-term debt | $3,100,000,000 |
Debt_LongTerm_Debt_Details
Debt (Long-Term Debt) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Capital Lease Obligation | $9 | |
Total | 1,009 | |
Unamortized discount for the Notes above | -10 | |
Subtotal | 1,990 | |
Capital Lease Obligation | 248 | |
Total | 2,238 | 2,988 |
1.25% Notes due on May 19, 2014 | ||
Debt Instrument [Line Items] | ||
Short-Term Portion of Long-Term Debt | 1,000 | |
2.125% Notes due on May 19, 2016 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 1,000 | |
3.625% Notes due on May 19, 2021 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $1,000 |
Debt_LongTerm_Debt_Parenthetic
Debt (Long-Term Debt - Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
1.25% Notes due on May 19, 2014 | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 1.25% |
Long-term debt, maturity date | 19-May-14 |
2.125% Notes due on May 19, 2016 | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 2.13% |
Long-term debt, maturity date | 19-May-16 |
3.625% Notes due on May 19, 2021 | |
Debt Instrument [Line Items] | |
Long-term debt, interest rate | 3.63% |
Long-term debt, maturity date | 19-May-21 |
Balance_Sheet_Components_Inven
Balance Sheet Components (Inventories) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Balance Sheet Components Disclosure [Abstract] | ||
Raw materials and work in process | $64 | $77 |
Finished goods | 171 | 428 |
Inventories | $235 | $505 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Information technology assets | $8,371 | $7,717 |
Land and buildings | 6,462 | 6,257 |
Construction in progress | 5,257 | 2,240 |
Leasehold improvements | 1,553 | 1,409 |
Furniture and fixtures | 79 | 74 |
Total | 21,722 | 17,697 |
Less: accumulated depreciation and amortization | 6,855 | 5,843 |
Property and equipment, net | 14,867 | 11,854 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Cost basis of property and equipment under capital lease | $258 |
Balance_Sheet_Components_Compo
Balance Sheet Components (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accumulated other comprehensive income | $99 | $99 | $538 | ||
Other comprehensive income (loss) before reclassifications | -248 | ||||
Amounts reclassified from AOCI | -191 | ||||
Other comprehensive income (loss) | 497 | 284 | -439 | 92 | |
Total, balance as of the end of the period | 99 | 99 | 538 | ||
Foreign Currency Translation Adjustments | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accumulated other comprehensive income | -16 | -16 | -73 | ||
Other comprehensive income (loss) before reclassifications | 57 | ||||
Amounts reclassified from AOCI | 0 | ||||
Other comprehensive income (loss) | 57 | ||||
Total, balance as of the end of the period | -16 | -16 | -73 | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accumulated other comprehensive income | 69 | 69 | 604 | ||
Other comprehensive income (loss) before reclassifications | -402 | ||||
Amounts reclassified from AOCI | -133 | ||||
Other comprehensive income (loss) | -535 | ||||
Total, balance as of the end of the period | 69 | 69 | 604 | ||
Unrealized Gains on Cash Flow Hedges | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accumulated other comprehensive income | 46 | 46 | 7 | ||
Other comprehensive income (loss) before reclassifications | 97 | ||||
Amounts reclassified from AOCI | -58 | ||||
Other comprehensive income (loss) | 39 | ||||
Total, balance as of the end of the period | $46 | $46 | $7 |
Balance_Sheet_Components_Effec
Balance Sheet Components (Effects on Net Income of Amounts Reclassified from AOCI) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and other income, net | $24 | $65 | $405 | $474 |
Revenue | 14,893 | 13,304 | 42,967 | 35,756 |
Provision for income taxes | -513 | -647 | -1,616 | -1,959 |
Net income | 2,970 | 2,176 | 9,544 | 7,851 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | 191 | |||
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains (losses) on available-for-sale securities | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and other income, net | 178 | |||
Provision for income taxes | -45 | |||
Net income | 133 | |||
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains on cash flow hedges for foreign exchange contracts | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | 92 | |||
Provision for income taxes | -34 | |||
Net income | $58 |
Acquisitions_Details
Acquisitions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Patents and developed technology | Customer relationships | Trade names and other | Waze | Waze | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | ||
Entity | Customer relationships | ||||||||
Business Acquisition [Line Items] | |||||||||
Total cash consideration | $969 | $369 | |||||||
Goodwill | 11,426 | 10,537 | 841 | 162 | |||||
Intangible assets | 193 | 214 | |||||||
Net liabilities assumed | 65 | 7 | |||||||
Actual number of other acquisitions and purchase of intangible completed | 20 | ||||||||
Amount of goodwill expected to be deductible for tax purposes | $36 | ||||||||
Acquired intangible assets, weighted-average useful life | 5 years 3 months | 5 years 9 months | 4 years 2 months 12 days |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Roll Forward] | |
Beginning Balance | $10,537 |
Goodwill acquired | 1,003 |
Goodwill disposed | -64 |
Goodwill adjustment | -50 |
Ending Balance | $11,426 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Patents and developed technology | Patents and developed technology | Customer relationships | Customer relationships | Trade names and other | Trade names and other | Acquisition-related intangible assets | Acquisition-related intangible assets | Acquisition-related intangible assets | Acquisition-related intangible assets | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||
Gross Carrying Amount | $9,528 | $9,947 | $7,211 | $7,310 | $1,766 | $2,061 | $551 | $576 | |||||
Accumulated Amortization | 3,238 | 2,474 | 1,894 | 1,323 | 1,007 | 847 | 337 | 304 | |||||
Net Carrying Value | 6,290 | 7,473 | 5,317 | 5,987 | 759 | 1,214 | 214 | 272 | |||||
Amortization of acquisition-related intangible assets | $879 | $651 | $281 | $287 | $879 | $594 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2013 | $275 |
2014 | 1,072 |
2015 | 914 |
2016 | 827 |
2017 | 770 |
2018 | 726 |
Thereafter | 1,706 |
Total expected amortization expense relating to acquisition-related intangible assets | $6,290 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Apr. 17, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash received at the date of close | $2,525 | $201 | |||||
Net income from discontinued operations | 15 | 18 | 711 | -30 | |||
Motorola Home business | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sale consideration | 2,412 | ||||||
Cash received at the date of close | 2,238 | ||||||
Cash received for post-close adjustments | 174 | ||||||
Value of Arris shares received in divestiture | 175 | 175 | |||||
Number of shares of Arris' common stock received as part of sale consideration | 10.6 | 10.6 | |||||
Percentage of Arris' outstanding shares owned subsequent to the transaction | 7.80% | ||||||
Indemnification liability | 175 | ||||||
Revenues | 0 | 797 | 804 | [1] | 1,204 | ||
Loss from discontinued operations before income taxes | 0 | -6 | -67 | [1] | -39 | ||
Benefits from income taxes | 0 | 24 | 16 | [1] | 9 | ||
Gain on disposal | 15 | 0 | 762 | [1] | 0 | ||
Net income from discontinued operations | $15 | $18 | $711 | [1] | ($30) | ||
[1] | The operating results of Motorola Home were included in our Consolidated Statements of Income from January 1, 2013 through the date of divestiture. |
Discontinued_Operations_Aggreg
Discontinued Operations (Aggregate Carrying Amounts of the Major Classes of Assets and Liabilities Divested) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 17, 2013 |
In Millions, unless otherwise specified | Motorola Home business | ||
Aggregate carrying amounts of the major classes of assets and liabilities divested [Line Items] | |||
Accounts receivable | $7,921 | $7,885 | $424 |
Inventories | 235 | 505 | 228 |
Deferred income taxes, net | 1,154 | 1,144 | 144 |
Prepaid and other current assets | 152 | ||
Property and equipment, net | 14,867 | 11,854 | 282 |
Intangible assets, net | 6,290 | 7,473 | 701 |
Other assets, non-current | 182 | ||
Total assets | 105,068 | 93,798 | 2,113 |
Accounts payable | 2,124 | 2,012 | 169 |
Accrued expenses and other current liabilities | 3,071 | 3,258 | 294 |
Total liabilities | $463 |
Restructuring_Charges_Summary_
Restructuring Charges (Summary of Activities Related to Restructuring Charges) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Restructuring Reserve [Roll Forward] | |||||
Balance as of December 31, 2012 | $253 | ||||
Charges | 11 | 297 | 219 | 454 | |
Cash payments | -263 | ||||
Non-cash items | -98 | [1] | |||
Balance as of September 30, 2013 | 111 | 111 | |||
Severance and Related | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance as of December 31, 2012 | 238 | ||||
Charges | 11 | 288 | 166 | 445 | |
Cash payments | -234 | ||||
Non-cash items | -84 | [1] | |||
Balance as of September 30, 2013 | 86 | 86 | |||
Other Charges | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance as of December 31, 2012 | 15 | ||||
Charges | 0 | 9 | 53 | 9 | |
Cash payments | -29 | ||||
Non-cash items | -14 | [1] | |||
Balance as of September 30, 2013 | 25 | 25 | |||
Motorola Mobile | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cumulative restructuring charges | $850 | ||||
[1] | Non-cash items were primarily related to restricted stock units (RSUs) and stock options. |
Restructuring_Charges_Total_Re
Restructuring Charges (Total Restructuring Charges Included in Costs and Expenses) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $11 | $297 | $219 | $454 |
Net income from discontinued operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 31 | 67 | 51 |
Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 6 | 101 | 54 | 112 |
Sales and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 2 | 94 | 29 | 122 |
General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 3 | 19 | 30 | 109 |
Severance and Related | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 11 | 288 | 166 | 445 |
Severance and Related | Net income from discontinued operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 31 | 63 | 51 |
Severance and Related | Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 8 | 101 | 33 | 112 |
Severance and Related | Sales and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 1 | 88 | 16 | 116 |
Severance and Related | General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 2 | 19 | 28 | 109 |
Other Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 9 | 53 | 9 |
Other Charges | Net income from discontinued operations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 0 | 4 | 0 |
Other Charges | Research and development | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | -2 | 0 | 21 | 0 |
Other Charges | Sales and marketing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 1 | 6 | 13 | 6 |
Other Charges | General and administrative | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 1 | 0 | 2 | 0 |
Motorola Mobile | Cost of revenues | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 52 | 39 | 60 |
Motorola Mobile | Severance and Related | Cost of revenues | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | 0 | 49 | 26 | 57 |
Motorola Mobile | Other Charges | Cost of revenues | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring charges | $0 | $3 | $13 | $3 |
Interest_and_Other_Income_Net_1
Interest and Other Income, Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Income and Expenses [Abstract] | ||||
Interest income | $201 | $172 | $570 | $534 |
Interest expense | -22 | -21 | -62 | -63 |
Realized gains (losses) on available-for-sale investments, net | -26 | 36 | 178 | 211 |
Foreign currency exchange gains (losses), net | -153 | -147 | -271 | -439 |
Gain (loss) on divestiture of businesses | 0 | 0 | -57 | 188 |
Other | 24 | 25 | 47 | 43 |
Interest and other income, net | $24 | $65 | $405 | $474 |
Stockholders_Equity_WeightedAv
Stockholders' Equity (Weighted-Average Assumptions Used to Estimate Fair Values of Stock Options Granted) (Details) (Stock options, USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Stock options | ||
Schedule of Weighted Average Assumptions for Fair Values of Stock Options[Line Items] | ||
Risk-free interest rate | 0.90% | 1.00% |
Expected volatility | 29.00% | 29.00% |
Expected life (in years) | 5 years 9 months 18 days | 5 years 3 months 18 days |
Dividend yield | 0.00% | 0.00% |
Weighted-average estimated fair value of options granted during the period (in dollars per share) | $214.39 | $193.80 |
Stockholders_Equity_Stock_Opti
Stockholders' Equity (Stock Option Activity) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | ||
Options Outstanding - Number of Shares | |||||
Balance as of December 31, 2012 (in shares) | 8,551,395 | ||||
Granted | 0 | 0 | 1,571 | ||
Exercised | -2,233,984 | ||||
Forfeited/canceled | -215,606 | ||||
Balance as of September 30, 2013 (in shares) | 6,103,376 | 6,103,376 | |||
Exercisable as of September 30, 2013 (in shares) | 4,715,082 | 4,715,082 | |||
Vested and exercisable as of September 30, 2013 and expected to vest thereafter (in shares) | 5,932,616 | [1] | 5,932,616 | [1] | |
Options Outstanding - Weighted-Average Exercise Price | |||||
Balance as of December 31, 2012 (in dollars per share) | $405.98 | ||||
Granted (in dollars per share) | $723.25 | ||||
Exercised (in dollars per share) | $324.38 | ||||
Forfeited/canceled (in dollars per share) | $598.39 | ||||
Balance as of September 30, 2013 (in dollars per share) | $429.29 | $429.29 | |||
Exercisable as of September 30, 2013 (in dollars per share) | $383.87 | $383.87 | |||
Vested and exercisable as of September 30, 2013 and expected to vest thereafter (in dollars per share) | $425.06 | [1] | $425.06 | [1] | |
Options Outstanding - Weighted-Average Remaining Contractual Term | |||||
Balance as of September 30, 2013 | 4 years 11 months 1 day | ||||
Exercisable as of September 30, 2013 | 4 years 0 months 1 day | ||||
Vested and exercisable as of September 30, 2013 and expected to vest thereafter | 4 years 11 months 1 day | [1] | |||
Options Outstanding - Average Intrinsic Value | |||||
Balance as of September 30, 2013 | $2,725 | [2] | $2,725 | [2] | |
Exercisable as of September 30, 2013 | 2,320 | [2] | 2,320 | [2] | |
Vested and exercisable as of September 30, 2013 and expected to vest thereafter | $2,675 | [1],[2] | $2,675 | [1],[2] | |
Closing stock price | $875.91 | $875.91 | |||
[1] | Options expected to vest reflect an estimated forfeiture rate. | ||||
[2] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $875.91 of our ClassB A common stock on September 30, 2013. |
Stockholders_Equity_Additional
Stockholders' Equity (Additional Information Regarding Outstanding Exercisable and Vested and Exercisable Stock Options) (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $3.75 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $762.50 | |
Options Outstanding - Number of Shares | 6,103,376 | 8,551,395 |
Options Outstanding - Weighted-Average Remaining Life | 4 years 11 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $429.29 | $405.98 |
Options Vested and Exercisable - Number of Shares | 4,715,082 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $383.87 | |
$3.75b$94.80 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $3.75 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $94.80 | |
Options Outstanding - Number of Shares | 38,379 | |
Options Outstanding - Weighted-Average Remaining Life | 1 year 11 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $69.84 | |
Options Vested and Exercisable - Number of Shares | 38,379 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $69.84 | |
$117.84b$198.41 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $117.84 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $198.41 | |
Options Outstanding - Number of Shares | 149,902 | |
Options Outstanding - Weighted-Average Remaining Life | 1 year 4 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $179.54 | |
Options Vested and Exercisable - Number of Shares | 149,902 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $179.54 | |
$205.96b$298.86 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $205.96 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $298.86 | |
Options Outstanding - Number of Shares | 188,866 | |
Options Outstanding - Weighted-Average Remaining Life | 1 year 8 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $276.39 | |
Options Vested and Exercisable - Number of Shares | 188,866 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $276.39 | |
$300.97b$399.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $300.97 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $399 | |
Options Outstanding - Number of Shares | 2,427,221 | |
Options Outstanding - Weighted-Average Remaining Life | 3 years 7 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $309.76 | |
Options Vested and Exercisable - Number of Shares | 2,391,774 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $309.77 | |
$401.78b$499.07 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $401.78 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $499.07 | |
Options Outstanding - Number of Shares | 773,929 | |
Options Outstanding - Weighted-Average Remaining Life | 5 years 0 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $443.13 | |
Options Vested and Exercisable - Number of Shares | 733,740 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $441.95 | |
$501.27b$595.35 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $501.27 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $595.35 | |
Options Outstanding - Number of Shares | 1,614,947 | |
Options Outstanding - Weighted-Average Remaining Life | 5 years 9 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $537.96 | |
Options Vested and Exercisable - Number of Shares | 1,021,897 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $533.01 | |
$601.17b$675.82 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $601.17 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $675.82 | |
Options Outstanding - Number of Shares | 890,947 | |
Options Outstanding - Weighted-Average Remaining Life | 8 years 0 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $628.71 | |
Options Vested and Exercisable - Number of Shares | 186,122 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $617.70 | |
$723.25b$762.50 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Range of Exercise Prices, Lower Limit (in dollars per share) | $723.25 | |
Options Outstanding - Range of Exercise Prices, Upper Limit (in dollars per share) | $762.50 | |
Options Outstanding - Number of Shares | 19,185 | |
Options Outstanding - Weighted-Average Remaining Life | 9 years 0 months 1 day | |
Options Outstanding - Weighted-Average Exercise Price (in dollars per share) | $759.29 | |
Options Vested and Exercisable - Number of Shares | 4,402 | |
Options Vested and Exercisable - Weighted-Average Exercise Price (in dollars per share) | $762.50 |
Stockholders_Equity_Additional1
Stockholders' Equity (Additional Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 21, 2012 | Apr. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 21, 2012 | Apr. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 21, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Class A Common Stock | Class A Common Stock | Class A Common Stock | Class A Common Stock | Class A Common Stock | Class B Common Stock | Class B Common Stock | Class B Common Stock | Stock options | Restricted Stock Units (RSUs) | ||||||
Stockholders Equity Note [Line Items] | |||||||||||||||||||
Number of warrants held by selected financial institutions that were options purchased from employees under our Transferable Stock Option (TSO) program | 820,714 | 820,714 | |||||||||||||||||
Warrants held by selected financial institutions that were options purchased from employees under our Transferable Stock Option (TSO) program, weighted-average exercise price (in dollars per share) | $440.21 | $440.21 | |||||||||||||||||
Warrants held by selected financial institutions that were options purchased from employees under our Transferable Stock Option (TSO) program, weighted-average remaining life (in years) | 0 years 9 months 28 days | ||||||||||||||||||
Number of shares underlying TSOs sold to selected financial institutions under the TSO program | 541,465 | ||||||||||||||||||
Number of shares underlying TSOs sold to selected financial institutions under the TSO program, total value | $241 | ||||||||||||||||||
Number of shares underlying TSOs sold to selected financial institutions under the TSO program, average per share price | $445.06 | ||||||||||||||||||
Number of shares underlying TSOs sold to selected financial institutions under the TSO program, average premium per share price | $2.80 | ||||||||||||||||||
Total grant date fair value of stock options vested | 44 | 112 | 194 | 400 | |||||||||||||||
Aggregate intrinsic value of all options and warrants exercised | 189 | 406 | 1,125 | 638 | |||||||||||||||
Unrecognized compensation cost | $220 | $6,500 | |||||||||||||||||
Unrecognized compensation cost related to stock awards, weighted-average period (in years) | 2 years 0 months 15 days | 2 years 9 months 25 days | |||||||||||||||||
Capital stock, number of shares authorized | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | ||||||||||||||||
Common stock, number of shares authorized | 12,000,000,000 | 12,000,000,000 | 12,000,000,000 | 9,000,000,000 | 9,000,000,000 | 9,000,000,000 | 6,000,000,000 | 3,000,000,000 | 3,000,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | ||||||||||
Capital stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Stockholders_Equity_Unvested_R
Stockholders' Equity (Unvested Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs), USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Restricted Stock Units (RSUs) | ||
Unvested restricted stock units - number of shares | ||
Unvested as of December 31, 2012 (in shares) | 10,994,927 | |
Granted (in shares) | 5,186,109 | |
Vested (in shares) | -3,828,201 | |
Forfeited/canceled (in shares) | -524,549 | |
Unvested as of September 30, 2013 (in shares) | 11,828,286 | |
Expected to vest after September 30, 2013 (in shares) | 10,373,407 | [1] |
Unvested restricted stock units - weighted-average grant-date fair value | ||
Unvested as of December 31, 2012 (in dollars per share) | $566.32 | |
Granted (in dollars per share) | $876.30 | |
Vested (in dollars per share) | $575.65 | |
Forfeited/canceled (in dollars per share) | $611.90 | |
Unvested as of September 30, 2013 (in dollars per share) | $697.35 | |
Expected to vest after September 30, 2013 (in dollars per share) | $697.35 | [1] |
[1] | RSUs expected to vest reflect an estimated forfeiture rate. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Total unrecognized tax benefits | $2,353 | $1,933 |
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate | $2,160 | $1,749 |
Information_about_Segments_and2
Information about Segments and Geographic Areas (Additional Information) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Information_about_Segments_and3
Information about Segments and Geographic Areas (Revenues and Operating Income Loss by Operating Segments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Disclosure [Line Items] | ||||||||
Revenues | $14,893 | $13,304 | $42,967 | $35,756 | ||||
Income (loss) from operations | 3,444 | 2,740 | 10,044 | 9,366 | ||||
Operating segments | Google | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Revenues | 13,772 | 11,526 | 39,830 | 33,135 | ||||
Income (loss) from operations | 4,635 | 3,951 | 13,246 | 11,884 | ||||
Operating segments | Mobile | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Revenues | 1,184 | 1,778 | 3,200 | 2,621 | ||||
Income (loss) from operations | -248 | -192 | -645 | -241 | ||||
Elimination and unallocated items | ||||||||
Segment Reporting Disclosure [Line Items] | ||||||||
Revenues | -63 | [1],[2] | 0 | [1] | -63 | [1],[2] | 0 | [1] |
Income (loss) from operations | ($943) | [1],[2] | ($1,019) | [1] | ($2,557) | [1],[2] | ($2,277) | [1] |
[1] | Unallocated items, including stock-based compensation expense, as well as restructuring and other charges are not allocated to each segment because we do not include this information in our measurement of the performance of our operating segments. | |||||||
[2] | Beginning in the quarter ended September 30, 2013, Google and Motorola Mobile segment revenues are impacted by intersegment transactions that are eliminated in consolidation. Additionally, segment revenues associated with certain products were recognized in the quarter ended September 30, 2013 in our segment results, but deferred to future periods in our consolidated financial statements. This presentation is consistent with what is provided to the chief operating decision maker for purposes of making decisions about allocating resources to each segment and assessing its performance. |
Information_about_Segments_and4
Information about Segments and Geographic Areas (Revenues by Geographic Area) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ||||
Revenues | $14,893 | $13,304 | $42,967 | $35,756 |
United States | ||||
Revenues: | ||||
Revenues | 6,660 | 6,473 | 19,357 | 16,746 |
United Kingdom | ||||
Revenues: | ||||
Revenues | 1,390 | 1,220 | 4,114 | 3,548 |
Rest of the world | ||||
Revenues: | ||||
Revenues | $6,843 | $5,611 | $19,496 | $15,462 |
Information_about_Segments_and5
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Long-lived assets: | ||||
Long-lived assets | $36,210 | [1] | $33,344 | [1] |
United States | ||||
Long-lived assets: | ||||
Long-lived assets | 22,579 | [1] | 20,985 | [1] |
International | ||||
Long-lived assets: | ||||
Long-lived assets | $13,631 | [1] | $12,359 | [1] |
[1] | Includes Motorola Home segment as of December 31, 2012. |