Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |||
Mar. 31, 2014 | Apr. 16, 2014 | Apr. 16, 2014 | Apr. 16, 2014 | |
Class A Common Stock | Class B Common Stock | Class C Capital Stock | ||
Document Information [Line Items] | ' | ' | ' | ' |
Document Type | '10-Q | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' | ' |
Trading Symbol | 'GOOG | ' | ' | ' |
Entity Registrant Name | 'Google Inc. | ' | ' | ' |
Entity Central Index Key | '0001288776 | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 281,667,778 | 55,579,441 | 337,246,657 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $16,639 | $18,898 |
Marketable securities | 42,740 | 39,819 |
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 59,379 | 58,717 |
Accounts receivable, net of allowance of $631 and $262 | 7,827 | 8,882 |
Inventories | 337 | 426 |
Receivable under reverse repurchase agreements | 50 | 100 |
Deferred income taxes, net | 1,166 | 1,526 |
Income taxes receivable, net | 544 | 408 |
Prepaid revenue share, expenses and other assets | 2,138 | 2,827 |
Assets held for sale | 3,873 | 0 |
Total current assets | 75,314 | 72,886 |
Prepaid revenue share, expenses and other assets, non-current | 1,718 | 1,976 |
Non-marketable equity investments | 2,123 | 1,976 |
Property and equipment, net | 17,877 | 16,524 |
Intangible assets, net | 5,317 | 6,066 |
Goodwill | 14,177 | 11,492 |
Total assets | 116,526 | 110,920 |
Current liabilities: | ' | ' |
Accounts payable | 1,623 | 2,453 |
Short-term debt | 3,009 | 3,009 |
Accrued compensation and benefits | 1,531 | 2,502 |
Accrued expenses and other current liabilities | 3,305 | 3,755 |
Accrued revenue share | 1,674 | 1,729 |
Securities lending payable | 2,153 | 1,374 |
Deferred revenue | 947 | 1,062 |
Income taxes payable, net | 0 | 24 |
Liabilities held for sale | 2,028 | 0 |
Total current liabilities | 16,270 | 15,908 |
Long-term debt | 3,234 | 2,236 |
Deferred revenue, non-current | 103 | 139 |
Income taxes payable, non-current | 2,826 | 2,638 |
Deferred income taxes, net, non-current | 1,848 | 1,947 |
Other long-term liabilities | 534 | 743 |
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 Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 671,664 (Class A 279,325, Class B 56,507, Class C 335,832) and par value of $672 (Class A $279, Class B $57, Class C $336) and 674,462 (Class A 281,557, Class B 55,674, Class C 337,231) and par value of $674 (Class A $281, Class B $56, Class C $337) shares issued and outstanding | 26,652 | 25,922 |
Accumulated other comprehensive income | 345 | 125 |
Retained earnings | 64,714 | 61,262 |
Total stockholdersb equity | 91,711 | 87,309 |
Total liabilities and stockholdersb equity | $116,526 | $110,920 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Total cash equivalents and marketable securities, securities loaned | $4,405,000,000 | $5,059,000,000 |
Accounts receivable, allowance | 262,000,000 | 631,000,000 |
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 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, number of shares authorized | 15,000,000,000 | 15,000,000,000 |
Common stock, par value | 674,000 | 672,000 |
Common stock, shares issued | 674,462,000 | 671,664,000 |
Common stock, shares outstanding | 674,462,000 | 671,664,000 |
Class A Common Stock | ' | ' |
Common stock, par value (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 | 281,000 | 279,000 |
Common stock, shares issued | 281,557,000 | 279,325,000 |
Common stock, shares outstanding | 281,557,000 | 279,325,000 |
Class B Common Stock | ' | ' |
Common stock, par value (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 | 56,000 | 57,000 |
Common stock, shares issued | 55,674,000 | 56,507,000 |
Common stock, shares outstanding | 55,674,000 | 56,507,000 |
Class C Capital Stock | ' | ' |
Capital stock, par value (in dollars per share) | $0.00 | $0.00 |
Capital stock, number of shares authorized | 3,000,000,000 | 3,000,000,000 |
Capital stock, value, issued | $337,000 | $336,000 |
Capital stock, shares issued | 337,231,000 | 335,832,000 |
Capital stock, shares outstanding | 337,231,000 | 335,832,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Revenues | $15,420 | $12,951 |
Costs and expenses: | ' | ' |
Cost of revenues | 5,961 | 5,136 |
Research and development | 2,126 | 1,617 |
Sales and marketing | 1,729 | 1,435 |
General and administrative | 1,489 | 1,015 |
Total costs and expenses | 11,305 | 9,203 |
Income from operations | 4,115 | 3,748 |
Interest and other income, net | 357 | 134 |
Income from continuing operations before income taxes | 4,472 | 3,882 |
Provision for income taxes | 822 | 354 |
Net income from continuing operations | 3,650 | 3,528 |
Net loss from discontinued operations | -198 | -182 |
Net income | 3,452 | 3,346 |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - basic: | ' | ' |
Continuing operations (in dollars per share) | $5.42 | $5.34 |
Discontinued operations (in dollars per share) | ($0.29) | ($0.28) |
Net income per share - basic (in dollars per share) | $5.13 | $5.06 |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | ' | ' |
Continuing operations (in dollars per share) | $5.33 | $5.24 |
Discontinued operations (in dollars per share) | ($0.29) | ($0.27) |
Net income per share - diluted (in dollars per share) | $5.04 | $4.97 |
Shares used in per share calculation - basic (in shares) | 672,587 | 660,908 |
Shares used in per share calculation - diluted (in shares) | 685,212 | 673,326 |
Total stock-based compensation expense | 887 | 708 |
Cost of revenues | ' | ' |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | ' | ' |
Total stock-based compensation expense | 95 | 99 |
Research and development | ' | ' |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | ' | ' |
Total stock-based compensation expense | 456 | 338 |
Sales and marketing | ' | ' |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | ' | ' |
Total stock-based compensation expense | 147 | 118 |
General and administrative | ' | ' |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | ' | ' |
Total stock-based compensation expense | 141 | 100 |
Discontinued operations | ' | ' |
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | ' | ' |
Total stock-based compensation expense | $48 | $53 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other comprehensive income (loss): | ' | ' |
Net income | $3,452 | $3,346 |
Available-for-sale investments: | ' | ' |
Change in foreign currency translation adjustment | 65 | -168 |
Change in net unrealized gains (losses) | 217 | -55 |
Less: reclassification adjustment for net gains included in net income | -67 | -46 |
Net change (net of tax effect of $37 and $42) | 150 | -101 |
Cash flow hedges: | ' | ' |
Change in net unrealized gains | 10 | 109 |
Less: reclassification adjustment for net gains included in net income | -5 | -22 |
Net change (net of tax effect of $51 and $30) | 5 | 87 |
Other comprehensive income (loss) | 220 | -182 |
Comprehensive income | $3,672 | $3,164 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Tax effect related to available-for-sale investments | $42 | $37 |
Tax effect related to cash flow hedges | $30 | $51 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net income | $3,452 | $3,346 |
Adjustments: | ' | ' |
Depreciation expense and loss on disposal of property and equipment | 816 | 584 |
Amortization of intangible and other assets | 270 | 315 |
Stock-based compensation expense | 887 | 708 |
Excess tax benefits from stock-based award activities | -155 | -94 |
Deferred income taxes | 144 | 202 |
Gain on equity interest | 103 | 0 |
Gain on sale of non-marketable equity investments | -117 | 0 |
Other | -14 | 37 |
Changes in assets and liabilities, net of effects of acquisitions: | ' | ' |
Accounts receivable | 267 | 256 |
Income taxes, net | 201 | -335 |
Inventories | 26 | -142 |
Prepaid revenue share, expenses and other assets | -334 | -212 |
Accounts payable | 177 | 87 |
Accrued expenses and other liabilities | -1,079 | -1,059 |
Accrued revenue share | -70 | -27 |
Deferred revenue | 23 | -33 |
Net cash provided by operating activities | 4,391 | 3,633 |
Investing activities | ' | ' |
Purchases of property and equipment | -2,345 | -1,203 |
Purchases of marketable securities | -12,082 | -7,834 |
Maturities and sales of marketable securities | 9,406 | 6,319 |
Investments in non-marketable equity investments | -168 | -36 |
Cash collateral related to securities lending | 779 | 564 |
Investments in reverse repurchase agreements | 50 | 0 |
Acquisitions, net of cash acquired, and purchases of intangibles and other assets | -2,947 | -251 |
Net cash used in investing activities | -7,307 | -2,441 |
Financing activities | ' | ' |
Net payments related to stock-based award activities | -326 | -210 |
Excess tax benefits from stock-based award activities | 155 | 94 |
Proceeds from issuance of debt, net of costs | 3,416 | 2,922 |
Repayments of debt | -2,423 | -3,323 |
Net cash (used in) provided by financing activities | 822 | -517 |
Effect of exchange rate changes on cash and cash equivalents | -5 | -78 |
Net increase (decrease) in cash and cash equivalents | -2,099 | 597 |
Cash and cash equivalents at beginning of period | 18,898 | 14,778 |
Reclassification to assets held for sale | -160 | 0 |
Cash and cash equivalents at end of period | 16,639 | 15,375 |
Supplemental disclosures of cash flow information | ' | ' |
Cash paid for taxes | $353 | $385 |
Google_Inc_and_Summary_of_Sign
Google Inc. and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Google Inc. and Summary of Significant Accounting Policies | ' |
Google Inc. and Summary of Significant Accounting Policies | |
We were incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. We generate revenues primarily by delivering relevant, cost-effective online advertising. | |
On January 29, 2014, we entered into an agreement with Lenovo Group Limited (Lenovo) providing for the disposition of the Motorola Mobile business. As such, the financial results of Motorola Mobile are presented as "Net loss from discontinued operations" on the Consolidated Statements of Income for the three months ended March 31, 2013 and 2014; and assets and liabilities of Motorola Mobile to be disposed of are presented as "Assets held for sale" and "Liabilities held for sale" on the Consolidated Balance Sheet as of March 31, 2014, respectively. | |
On April 2, 2014, the Company completed a two-for-one stock split effected in the form of a stock dividend. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect this two-for-one stock split. See Notes 2 and 12 for additional information about the stock split effected in the form of a stock dividend. | |
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 March 31, 2014, the Consolidated Statements of Income for the three months ended March 31, 2013 and 2014, the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2013 and 2014, and the Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2014 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 March 31, 2014, our results of operations for the three months ended March 31, 2013 and 2014, and our cash flows for the three months ended March 31, 2013 and 2014. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
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, 2013, filed with the SEC on February 12, 2014. | |
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. | |
Recent Accounting Pronouncement | |
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-08 (ASU 2014-08) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. We are currently in the process of evaluating the impact of the adoption on our consolidated financial statements. | |
Prior Period Reclassifications | |
Reclassifications of prior period amounts related to discontinued operations as a result of the expected Motorola Mobile disposition, and share and per-share amounts due to the two-for-one stock split effected in the form of a stock dividend 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 | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||||||||
Net Income Per Share of Class A and Class B Common Stock and Class C Capital Stock | ' | |||||||||||||||||||||||
Net Income Per Share of Class A and Class B Common Stock and Class C Capital Stock | ||||||||||||||||||||||||
In April 2012, our board of directors approved amendments to our certificate of incorporation that created 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. In January 2014, our board of directors approved a distribution of shares of the Class C capital stock as a dividend to our holders of Class A and Class B common stock (Stock Split). The Stock Split had a record date of March 27, 2014 and a payment date of April 2, 2014. | ||||||||||||||||||||||||
Share and per-share amounts disclosed as of March 31, 2014 and for all other comparative periods provided have been retroactively adjusted to reflect the effects of the Stock Split. The Class C capital stock has no voting rights, except as required by applicable law. Except as expressly provided in the New Charter and as noted in the following sentence, shares of Class C capital stock have the same rights and privileges and rank equally, share ratably and are identical in all other respects to the shares of Class A common stock and Class B common stock as to all matters including dividend and distribution rights. In accordance with the settlement of litigation involving the authorization to distribute the Class C capital stock, we may be obligated to make a payment to holders of the Class C stock if, on average, Class C trades below Class A during the first 365 days following the Class C issuance, payable in cash, Class A stock, Class C stock, or a combination thereof, at the discretion of the board of directors. | ||||||||||||||||||||||||
The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Class A | Class B | Class C | Class A | Class B | Class C | |||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 1,435 | $ | 329 | $ | 1,764 | $ | 1,521 | $ | 304 | $ | 1,825 | ||||||||||||
Allocation of undistributed earnings - discontinued operations | (74 | ) | (17 | ) | (91 | ) | (83 | ) | (16 | ) | (99 | ) | ||||||||||||
Total | $ | 1,361 | $ | 312 | $ | 1,673 | $ | 1,438 | $ | 288 | $ | 1,726 | ||||||||||||
Denominator | ||||||||||||||||||||||||
Number of shares used in per share computation | 268,767 | 61,687 | 330,454 | 280,202 | 56,091 | 336,293 | ||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||
Continuing operations | $ | 5.34 | $ | 5.34 | $ | 5.34 | $ | 5.42 | $ | 5.42 | $ | 5.42 | ||||||||||||
Discontinued operations | (0.28 | ) | (0.28 | ) | (0.28 | ) | (0.29 | ) | (0.29 | ) | (0.29 | ) | ||||||||||||
Basic net income per share | $ | 5.06 | $ | 5.06 | $ | 5.06 | $ | 5.13 | $ | 5.13 | $ | 5.13 | ||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 1,435 | $ | 329 | $ | 1,764 | $ | 1,521 | $ | 304 | $ | 1,825 | ||||||||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 329 | 0 | 0 | 304 | 0 | 0 | ||||||||||||||||||
Reallocation of undistributed earnings | 0 | (6 | ) | 0 | 0 | (5 | ) | 0 | ||||||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 1,764 | $ | 323 | $ | 1,764 | $ | 1,825 | $ | 299 | $ | 1,825 | ||||||||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | (74 | ) | $ | (17 | ) | $ | (91 | ) | $ | (83 | ) | $ | (16 | ) | $ | (99 | ) | ||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | (17 | ) | 0 | 0 | (16 | ) | 0 | 0 | ||||||||||||||||
Reallocation of undistributed earnings | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Allocation of undistributed earnings - discontinued operations | $ | (91 | ) | $ | (17 | ) | $ | (91 | ) | $ | (99 | ) | $ | (16 | ) | $ | (99 | ) | ||||||
Denominator | ||||||||||||||||||||||||
Number of shares used in basic computation | 268,767 | 61,687 | 330,454 | 280,202 | 56,091 | 336,293 | ||||||||||||||||||
Weighted-average effect of dilutive securities | ||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||
Conversion of Class B to Class A common shares outstanding | 61,687 | 0 | 0 | 56,091 | 0 | 0 | ||||||||||||||||||
Employee stock options, including warrants issued under Transferable Stock Option program | 3,129 | 12 | 3,129 | 2,419 | 0 | 2,419 | ||||||||||||||||||
Restricted stock units | 3,080 | 0 | 3,080 | 3,894 | 0 | 3,894 | ||||||||||||||||||
Number of shares used in per share computation | 336,663 | 61,699 | 336,663 | 342,606 | 56,091 | 342,606 | ||||||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||
Continuing operations | $ | 5.24 | $ | 5.24 | $ | 5.24 | $ | 5.33 | $ | 5.33 | $ | 5.33 | ||||||||||||
Discontinued operations | (0.27 | ) | (0.27 | ) | (0.27 | ) | (0.29 | ) | (0.29 | ) | (0.29 | ) | ||||||||||||
Diluted net income per share | $ | 4.97 | $ | 4.97 | $ | 4.97 | $ | 5.04 | $ | 5.04 | $ | 5.04 | ||||||||||||
The number of shares and per share amounts for the prior period presented have been retroactively restated to reflect the two-for-one stock split effected in the form of a stock dividend issued on April 2, 2014. | ||||||||||||||||||||||||
The net income per share amounts are the same for Class A and Class B common stock and Class C capital stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. |
Financial_Instruments
Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
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. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: | |||||||||||||||||||||||||||||
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||||||||||||||
Level 2 - Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. | |||||||||||||||||||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activities. | |||||||||||||||||||||||||||||
The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||||||||||||||
We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. We classify our foreign currency and interest rate derivative contracts primarily within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. | |||||||||||||||||||||||||||||
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, 2013 and March 31, 2014 (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 9,909 | $ | 0 | $ | 0 | $ | 9,909 | $ | 9,909 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 4,428 | 0 | 0 | 4,428 | 4,428 | 0 | |||||||||||||||||||||||
U.S. government notes | 18,276 | 23 | (37 | ) | 18,262 | 2,501 | 15,761 | ||||||||||||||||||||||
Marketable equity securities | 197 | 167 | 0 | 364 | 0 | 364 | |||||||||||||||||||||||
22,901 | 190 | (37 | ) | 23,054 | 6,929 | 16,125 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits(1) | 1,207 | 0 | 0 | 1,207 | 790 | 417 | |||||||||||||||||||||||
Money market and other funds(2) | 1,270 | 0 | 0 | 1,270 | 1,270 | 0 | |||||||||||||||||||||||
U.S. government agencies | 4,575 | 3 | (3 | ) | 4,575 | 0 | 4,575 | ||||||||||||||||||||||
Foreign government bonds | 1,502 | 5 | (26 | ) | 1,481 | 0 | 1,481 | ||||||||||||||||||||||
Municipal securities | 2,904 | 9 | (36 | ) | 2,877 | 0 | 2,877 | ||||||||||||||||||||||
Corporate debt securities | 7,300 | 162 | (67 | ) | 7,395 | 0 | 7,395 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 5,969 | 27 | (187 | ) | 5,809 | 0 | 5,809 | ||||||||||||||||||||||
Asset-backed securities | 1,142 | 0 | (2 | ) | 1,140 | 0 | 1,140 | ||||||||||||||||||||||
25,869 | 206 | (321 | ) | 25,754 | 2,060 | 23,694 | |||||||||||||||||||||||
Total | $ | 58,679 | $ | 396 | $ | (358 | ) | $ | 58,717 | $ | 18,898 | $ | 39,819 | ||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Cash | $ | 9,212 | $ | 0 | $ | 0 | $ | 9,212 | $ | 9,212 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 3,212 | 0 | 0 | 3,212 | 3,212 | 0 | |||||||||||||||||||||||
U.S. government notes | 18,034 | 24 | (22 | ) | 18,036 | 852 | 17,184 | ||||||||||||||||||||||
Marketable equity securities | 190 | 190 | 0 | 380 | 0 | 380 | |||||||||||||||||||||||
21,436 | 214 | (22 | ) | 21,628 | 4,064 | 17,564 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits(1) | 1,762 | 0 | 0 | 1,762 | 1,260 | 502 | |||||||||||||||||||||||
Money market and other funds(2) | 2,103 | 0 | 0 | 2,103 | 2,103 | 0 | |||||||||||||||||||||||
U.S. government agencies | 5,674 | 3 | (2 | ) | 5,675 | 0 | 5,675 | ||||||||||||||||||||||
Foreign government bonds | 1,719 | 9 | (15 | ) | 1,713 | 0 | 1,713 | ||||||||||||||||||||||
Municipal securities | 2,795 | 15 | (18 | ) | 2,792 | 0 | 2,792 | ||||||||||||||||||||||
Corporate debt securities | 7,030 | 185 | (30 | ) | 7,185 | 0 | 7,185 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 6,151 | 36 | (144 | ) | 6,043 | 0 | 6,043 | ||||||||||||||||||||||
Asset-backed securities | 1,267 | 0 | (1 | ) | 1,266 | 0 | 1,266 | ||||||||||||||||||||||
28,501 | 248 | (210 | ) | 28,539 | 3,363 | 25,176 | |||||||||||||||||||||||
Total | $ | 59,149 | $ | 462 | $ | (232 | ) | $ | 59,379 | $ | 16,639 | $ | 42,740 | ||||||||||||||||
(1) | The majority of our time deposits are foreign deposits. | ||||||||||||||||||||||||||||
(2) | The balances at December 31, 2013 and March 31, 2014 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. | ||||||||||||||||||||||||||||
Cash, cash equivalents and marketable securities to be disposed of as a result of the Motorola Mobile disposition were included in "Assets held for sale" on the Consolidated Balance Sheet as of March 31, 2014, and accordingly, are not included in this table. | |||||||||||||||||||||||||||||
During the second quarter of 2013, we received approximately $175 million in Arris Group, Inc. (Arris) common stock (10.6 million shares) in connection with the sale of the Motorola Home business (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 $75 million and $98 million for the three months ended March 31, 2013 and 2014. We recognized gross realized losses of $15 million and $24 million for the three months ended March 31, 2013 and 2014. We reflect these gains and losses as a component of interest and other income, net, in the accompanying Consolidated Statements of Income. | |||||||||||||||||||||||||||||
The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): | |||||||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Due in 1 year | $ | 14,828 | |||||||||||||||||||||||||||
Due in 1 year through 5 years | 15,431 | ||||||||||||||||||||||||||||
Due in 5 years through 10 years | 5,942 | ||||||||||||||||||||||||||||
Due after 10 years | 6,159 | ||||||||||||||||||||||||||||
Total | $ | 42,360 | |||||||||||||||||||||||||||
The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2013 and March 31, 2014, 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, 2013 | |||||||||||||||||||||||||||||
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 | $ | 4,404 | $ | (37 | ) | $ | 0 | $ | 0 | $ | 4,404 | $ | (37 | ) | |||||||||||||||
U.S. government agencies | 496 | (3 | ) | 0 | 0 | 496 | (3 | ) | |||||||||||||||||||||
Foreign government bonds | 899 | (23 | ) | 83 | (3 | ) | 982 | (26 | ) | ||||||||||||||||||||
Municipal securities | 1,210 | (32 | ) | 99 | (4 | ) | 1,309 | (36 | ) | ||||||||||||||||||||
Corporate debt securities | 2,583 | (62 | ) | 69 | (5 | ) | 2,652 | (67 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 4,065 | (167 | ) | 468 | (20 | ) | 4,533 | (187 | ) | ||||||||||||||||||||
Asset-backed securities | 643 | (2 | ) | 0 | 0 | 643 | (2 | ) | |||||||||||||||||||||
Total | $ | 14,300 | $ | (326 | ) | $ | 719 | $ | (32 | ) | $ | 15,019 | $ | (358 | ) | ||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
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 | $ | 2,583 | $ | (22 | ) | $ | 0 | $ | 0 | $ | 2,583 | $ | (22 | ) | |||||||||||||||
U.S. government agencies | 472 | (2 | ) | 0 | 0 | 472 | (2 | ) | |||||||||||||||||||||
Foreign government bonds | 844 | (10 | ) | 100 | (5 | ) | 944 | (15 | ) | ||||||||||||||||||||
Municipal securities | 915 | (13 | ) | 106 | (5 | ) | 1,021 | (18 | ) | ||||||||||||||||||||
Corporate debt securities | 1,466 | (25 | ) | 86 | (5 | ) | 1,552 | (30 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 3,540 | (110 | ) | 570 | (34 | ) | 4,110 | (144 | ) | ||||||||||||||||||||
Asset-backed securities | 0 | 0 | 90 | (1 | ) | 90 | (1 | ) | |||||||||||||||||||||
Total | $ | 9,820 | $ | (182 | ) | $ | 952 | $ | (50 | ) | $ | 10,772 | $ | (232 | ) | ||||||||||||||
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 months ended March 31, 2013 and 2014, 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, 2013 and March 31, 2014, we received cash collateral related to the derivative instruments under our collateral security arrangements of $35 million and $7 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 $10.0 billion and $7.9 billion as of December 31, 2013 and March 31, 2014. These foreign exchange contracts have maturities of 36 months or less. | |||||||||||||||||||||||||||||
In 2012, we entered into forward-starting interest rate swaps, with a total notional amount of $1.0 billion and terms calling for us to receive interest at a variable rate and to pay interest at a fixed rate, that effectively locked in an interest rate on our anticipated debt issuance of $1.0 billion in 2014. We issued $1.0 billion of unsecured senior notes in February 2014 (See details in Note 4). As a result, we terminated the forward-starting interest rate swaps upon the debt issuance. The gain associated with the termination is reported within operating activities in the Consolidated Statement of Cash Flows for the three months ended March 31, 2014, consistent with the impact of the hedged item. | |||||||||||||||||||||||||||||
We reflect gains or losses on the effective portion of a cash flow hedge as a component of AOCI and subsequently reclassify cumulative gains and losses to revenues or interest expense when the hedged transactions are recorded. If the hedged transactions become probable of not occurring, the corresponding amounts in AOCI would be immediately reclassified to interest and other income, net. Further, we exclude the change in the time value of the options from our assessment of hedge effectiveness. We record the premium paid or time value of an option on the date of purchase as an asset. Thereafter, we recognize changes to this time value in interest and other income, net. | |||||||||||||||||||||||||||||
As of March 31, 2014, the effective portion of our cash flow hedges before tax effect was $68 million, of which $17 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 $1.2 billion and $1.4 billion as of December 31, 2013 and March 31, 2014. | |||||||||||||||||||||||||||||
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 $9.4 billion and $7.5 billion at December 31, 2013 and March 31, 2014. | |||||||||||||||||||||||||||||
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 $13 million at December 31, 2013 and $75 million at March 31, 2014. | |||||||||||||||||||||||||||||
The fair values of our outstanding derivative instruments were as follows (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
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 | $ | 133 | $ | 12 | $ | 145 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 87 | 0 | 87 | |||||||||||||||||||||||||
Total | $ | 220 | $ | 12 | $ | 232 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 0 | $ | 4 | $ | 4 | ||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
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 and assets held for sale | $ | 80 | $ | 4 | $ | 84 | ||||||||||||||||||||||
Total | $ | 80 | $ | 4 | $ | 84 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses, and other current liabilities and liabilities held for sale | $ | 5 | $ | 13 | $ | 18 | ||||||||||||||||||||||
Total | $ | 5 | $ | 13 | $ | 18 | |||||||||||||||||||||||
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 March 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | 2013 | 2014 | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 163 | $ | 13 | |||||||||||||||||||||||||
Interest rate contracts | 10 | (31 | ) | ||||||||||||||||||||||||||
Total | $ | 173 | $ | (18 | ) | ||||||||||||||||||||||||
Gains Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Income Statement Location | 2013 | 2014 | ||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Revenues | $ | 35 | $ | 8 | ||||||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives (Amount | |||||||||||||||||||||||||||||
Excluded from Effectiveness Testing and Ineffective Portion) (1) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Income Statement Location | 2013 | 2014 | ||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (51 | ) | $ | (67 | ) | ||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and other income, net | 0 | 4 | ||||||||||||||||||||||||||
Total | $ | (51 | ) | $ | (63 | ) | |||||||||||||||||||||||
(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 March 31, | |||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationship | Income Statement Location | 2013 | 2014 | ||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | 37 | $ | (2 | ) | |||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Hedged item | Interest and | (38 | ) | 0 | |||||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (1 | ) | $ | (2 | ) | |||||||||||||||||||||||
(2) | Losses related to the amount excluded from effectiveness testing of the hedges were $1 million and $2 million for the three months ended March 31, 2013 and 2014. | ||||||||||||||||||||||||||||
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 March 31, | |||||||||||||||||||||||||||||
Derivatives Not Designated As Hedging Instruments | Income Statement Location | 2013 | 2014 | ||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | 87 | $ | (37 | ) | |||||||||||||||||||||||
other income, net, and net loss from discontinued operations | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and | 0 | 1 | ||||||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | 87 | $ | (36 | ) | ||||||||||||||||||||||||
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, 2013 and March 31, 2014, information related to these offsetting arrangements was as follows (in millions): | |||||||||||||||||||||||||||||
Offsetting of Assets | |||||||||||||||||||||||||||||
As of December 31, 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 | $ | 232 | $ | 0 | $ | 232 | $ | (2 | ) | (1) | $ | (35 | ) | $ | (52 | ) | $ | 143 | |||||||||||
Reverse repurchase agreements | 1,370 | 0 | 1,370 | (2) | 0 | 0 | (1,370 | ) | 0 | ||||||||||||||||||||
Total | $ | 1,602 | $ | 0 | $ | 1,602 | $ | (2 | ) | $ | (35 | ) | $ | (1,422 | ) | $ | 143 | ||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Non-Cash Collateral Received | Net Assets Exposed | ||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Derivatives | $ | 84 | $ | 0 | $ | 84 | $ | (5 | ) | (1) | $ | (7 | ) | $ | (9 | ) | $ | 63 | |||||||||||
Reverse repurchase agreements | 2,153 | 0 | 2,153 | (2) | 0 | 0 | (2,153 | ) | 0 | ||||||||||||||||||||
Total | $ | 2,237 | $ | 0 | $ | 2,237 | $ | (5 | ) | $ | (7 | ) | $ | (2,162 | ) | $ | 63 | ||||||||||||
(1) The balances at December 31, 2013 and March 31, 2014 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, 2013 and March 31, 2014 included $1,270 million and $2,103 million recorded in cash and cash equivalents, respectively, and $100 million and $50 million recorded in receivable under reverse repurchase agreements, respectively. | |||||||||||||||||||||||||||||
Offsetting of Liabilities | |||||||||||||||||||||||||||||
As of December 31, 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 | $ | 4 | $ | 0 | $ | 4 | $ | (2 | ) | (3) | $ | 0 | $ | 0 | $ | 2 | |||||||||||||
Securities lending agreements | 1,374 | 0 | 1,374 | 0 | 0 | (1,357 | ) | 17 | |||||||||||||||||||||
Total | $ | 1,378 | $ | 0 | $ | 1,378 | $ | (2 | ) | $ | 0 | $ | (1,357 | ) | $ | 19 | |||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Non-Cash Collateral Pledged | Net Liabilities | ||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Derivatives | $ | 18 | $ | 0 | $ | 18 | $ | (5 | ) | (3) | $ | 0 | $ | 0 | $ | 13 | |||||||||||||
Securities lending agreements | 2,153 | 0 | 2,153 | 0 | 0 | (2,124 | ) | 29 | |||||||||||||||||||||
Total | $ | 2,171 | $ | 0 | $ | 2,171 | $ | (5 | ) | $ | 0 | $ | (2,124 | ) | $ | 42 | |||||||||||||
(3) The balances at December 31, 2013 and March 31, 2014 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt
Debt | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
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, 2013 and March 31, 2014, we had $2.0 billion of outstanding commercial paper recorded as short-term debt with weighted-average interest rates of 0.1%. 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, 2013 and March 31, 2014, we were in compliance with the financial covenant in the credit facility, and no amounts were outstanding under the credit facility at December 31, 2013 and March 31, 2014. The estimated fair value of the commercial paper approximated its carrying value at December 31, 2013 and March 31, 2014. | |||||||
Our short-term debt balance also includes the short-term portion of certain long-term debt, as described in the section below. | |||||||
Long-Term Debt | |||||||
We issued $1.0 billion of unsecured senior notes (the "2014 Notes") in February 2014 and $3.0 billion of unsecured senior notes in three tranches (collectively, the "2011 Notes") in May 2011. We entered into a capital lease obligation in August 2013. The details of these financing arrangements are described in the table below (in millions): | |||||||
As of December 31, 2013 | As of | ||||||
March 31, | |||||||
2014 | |||||||
(unaudited) | |||||||
Short-Term Portion of Long-Term Debt | |||||||
1.25% Notes due on May 19, 2014 | $ | 1,000 | $ | 1,000 | |||
Capital Lease Obligation | 9 | 9 | |||||
Total | $ | 1,009 | $ | 1,009 | |||
Long-Term Debt | |||||||
2.125% Notes due on May 19, 2016 | $ | 1,000 | $ | 1,000 | |||
3.625% Notes due on May 19, 2021 | 1,000 | 1,000 | |||||
3.375% Notes due on February 25, 2024 | 0 | 1,000 | |||||
Unamortized discount for the Notes above | (10 | ) | (9 | ) | |||
Subtotal | 1,990 | 2,991 | |||||
Capital Lease Obligation | 246 | 243 | |||||
Total | $ | 2,236 | $ | 3,234 | |||
The effective interest yields of the Notes due in 2014, 2016, 2021, and 2024 were 1.258%, 2.241%, 3.734% and 3.377%, respectively. Interest on the 2011 and 2014 Notes are payable semi-annually. The 2011 and 2014 Notes rank equally with each other with all of our other senior unsecured and unsubordinated indebtedness from time to time outstanding. We may redeem the 2011 and 2014 Notes at any time in whole or in part at specified redemption prices. We are not subject to any financial covenants under the 2011 Notes or the 2014 Notes. We used the net proceeds from the issuance of the 2011 Notes to repay a portion of our outstanding commercial paper and for general corporate purposes. We intend to use the net proceeds from the issuance of the 2014 Notes for general corporate purposes including the repayment of the principal amount of our 2011 Notes due on May 19, 2014. The total estimated fair value of the 2011 and 2014 Notes was approximately $3.1 billion and $4.1 billion at December 31, 2013 and March 31, 2014, respectively. The fair value of the 2011 and 2014 Notes was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy. | |||||||
In August 2013, we entered into a capital lease obligation on certain property expiring in 2028 with an option to purchase the property in 2016. The effective rate of the capital lease obligation approximates the market rate. The estimated fair value of the capital lease obligation approximated its carrying value at December 31, 2013 and March 31, 2014. |
Balance_Sheet_Components
Balance Sheet Components | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Balance Sheet Components Disclosure [Abstract] | ' | |||||||||||||||
Balance Sheet Components | ' | |||||||||||||||
Balance Sheet Components | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories consisted of the following (in millions): | ||||||||||||||||
As of December 31, 2013 | As of | |||||||||||||||
March 31, | ||||||||||||||||
2014 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Raw materials and work in process | $ | 115 | $ | 2 | ||||||||||||
Finished goods | 311 | 335 | ||||||||||||||
Inventories | $ | 426 | $ | 337 | ||||||||||||
Inventories to be disposed of as a result of the Motorola Mobile disposition were included in "Assets held for sale" on the Consolidated Balance Sheet as of March 31, 2014, and accordingly, are not included in this table. | ||||||||||||||||
Property and Equipment | ||||||||||||||||
Property and equipment consisted of the following (in millions): | ||||||||||||||||
As of December 31, 2013 | As of | |||||||||||||||
March 31, | ||||||||||||||||
2014 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Information technology assets | $ | 9,094 | $ | 9,408 | ||||||||||||
Land and buildings | 7,488 | 8,776 | ||||||||||||||
Construction in progress | 5,602 | 5,878 | ||||||||||||||
Leasehold improvements | 1,576 | 1,578 | ||||||||||||||
Furniture and fixtures | 77 | 79 | ||||||||||||||
Total | 23,837 | 25,719 | ||||||||||||||
Less: accumulated depreciation and amortization | 7,313 | 7,842 | ||||||||||||||
Property and equipment, net | $ | 16,524 | $ | 17,877 | ||||||||||||
Property under capital lease with a cost basis of $258 million was included in land and buildings and construction in progress as of March 31, 2014. Additionally, property and equipment to be disposed of as a result of the Motorola Mobile disposition were included in "Assets held for sale" on the Consolidated Balance Sheet as of March 31, 2014, and accordingly, are not included in this table. | ||||||||||||||||
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 | (168 | ) | (55 | ) | 109 | (114 | ) | |||||||||
Amounts reclassified from AOCI | 0 | (46 | ) | (22 | ) | (68 | ) | |||||||||
Other comprehensive income (loss) | (168 | ) | (101 | ) | 87 | (182 | ) | |||||||||
Balance as of March 31, 2013 | $ | (241 | ) | $ | 503 | $ | 94 | $ | 356 | |||||||
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Investments | Unrealized Gains on Cash Flow Hedges | Total | |||||||||||||
Balance as of December 31, 2013 | $ | 16 | $ | 50 | $ | 59 | $ | 125 | ||||||||
Other comprehensive income (loss) before reclassifications | 65 | 217 | 10 | 292 | ||||||||||||
Amounts reclassified from AOCI | 0 | (67 | ) | (5 | ) | (72 | ) | |||||||||
Other comprehensive income (loss) | 65 | 150 | 5 | 220 | ||||||||||||
Balance as of March 31, 2014 | $ | 81 | $ | 200 | $ | 64 | $ | 345 | ||||||||
The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): | ||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||
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 | $ | 60 | |||||||||||||
Provision for income taxes | (14 | ) | ||||||||||||||
Net of tax | $ | 46 | ||||||||||||||
Unrealized gains on cash flow hedges for foreign exchange contracts | Revenue | $ | 35 | |||||||||||||
Provision for income taxes | (13 | ) | ||||||||||||||
Net of tax | $ | 22 | ||||||||||||||
Total amount reclassified, net of tax | $ | 68 | ||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
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 | $ | 74 | |||||||||||||
Provision for income taxes | (7 | ) | ||||||||||||||
Net of tax | $ | 67 | ||||||||||||||
Unrealized gains on cash flow hedges for foreign exchange contracts | Revenue | $ | 8 | |||||||||||||
Provision for income taxes | (3 | ) | ||||||||||||||
Net of tax | $ | 5 | ||||||||||||||
Total amount reclassified, net of tax | $ | 72 | ||||||||||||||
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2014 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
In February 2014, we completed the acquisition of Nest Labs, Inc. (Nest), a company whose mission is to reinvent devices in the home such as thermostats and smoke alarms. Prior to this transaction, we had an approximately 12% ownership interest in Nest. The acquisition is expected to enhance Google's suite of products and services and allow Nest to continue to innovate upon devices in the home, making them more useful, intuitive, and thoughtful, and to reach more users in more countries. | |
The fair value of assets acquired and liabilities assumed was recorded 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 allocation that are not yet finalized are related to the fair values of intangible assets acquired, certain income taxes and residual goodwill. Of the total $2.5 billion purchase price and the fair value of our previously held equity interest of $152 million, $51 million was cash acquired, $430 million was attributed to intangible assets, $2.35 billion was attributed to goodwill, and $157 million was attributed to net liabilities assumed. The goodwill of $2.35 billion is primarily attributable to the synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. | |
This transaction is considered a “step acquisition” under GAAP whereby our ownership interest in Nest held before the acquisition is required to be remeasured to fair value at the date of the acquisition. Such fair value was estimated by using discounted cash flow valuation methodologies. Inputs used in the methodologies primarily included projected future cash flows, discounted at a rate commensurate with the risk involved. The gain of $103 million as a result of remeasurement is included in “interest and other income, net” on our Consolidated Statement of Income. | |
During the three months ended March 31, 2014, we completed other acquisitions and purchases of intangible assets for a total cash consideration of approximately $483 million, of which $50 million was cash acquired, $33 million was attributed to intangible assets, $404 million to goodwill, and $4 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. Goodwill is not expected to be deductible for tax purposes. | |
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 three months ended March 31, 2014, patents and developed technology have a weighted-average useful life of 5.7 years, customer relationships have a weighted-average useful life of 5.0 years, and trade names and other have a weighted-average useful life of 7.9 years. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
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 three months ended March 31, 2014 were as follows (in millions, unaudited): | ||||||||||||
Balance as of December 31, 2013 | $ | 11,492 | ||||||||||
Goodwill acquired | 2,754 | |||||||||||
Goodwill reclassified to assets held for sale | (71 | ) | ||||||||||
Goodwill adjustment | 2 | |||||||||||
Balance as of March 31, 2014 | $ | 14,177 | ||||||||||
Information regarding our acquisition-related intangible assets was as follows (in millions): | ||||||||||||
As of December 31, 2013 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
Patents and developed technology | $ | 7,282 | $ | 2,102 | $ | 5,180 | ||||||
Customer relationships | 1,770 | 1,067 | 703 | |||||||||
Trade names and other | 534 | 351 | 183 | |||||||||
Total | $ | 9,586 | $ | 3,520 | $ | 6,066 | ||||||
As of March 31, 2014 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
(unaudited) | ||||||||||||
Patents and developed technology | $ | 6,825 | $ | 2,158 | $ | 4,667 | ||||||
Customer relationships | 1,390 | 1,033 | 357 | |||||||||
Trade names and other | 640 | 347 | 293 | |||||||||
Total | $ | 8,855 | $ | 3,538 | $ | 5,317 | ||||||
Goodwill and Intangible Assets to be disposed of as a result of our Motorola Mobile disposition were included in "Assets held for sale" on the Consolidated Balance Sheet as of March 31, 2014 and accordingly, are not included in the table above. Amortization of these intangible assets were stopped as of the date they were deemed to be held for sale. | ||||||||||||
Amortization expense relating to acquisition-related intangible assets was $279 million and $270 million for the three months ended March 31, 2013 and 2014. | ||||||||||||
As of March 31, 2014, 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 2014 | $ | 758 | ||||||||||
2015 | 859 | |||||||||||
2016 | 772 | |||||||||||
2017 | 705 | |||||||||||
2018 | 653 | |||||||||||
Thereafter | 1,570 | |||||||||||
$ | 5,317 | |||||||||||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Discontinued Operations | ' | |||||||
Discontinued Operations | ||||||||
Motorola Mobile | ||||||||
On January 29, 2014, we entered into an agreement with Lenovo providing for the disposition of the Motorola Mobile business for a total purchase price of approximately $2.9 billion (subject to certain adjustments), including $1.4 billion to be paid at close, comprised of $660 million in cash and $750 million in Lenovo ordinary shares (subject to a share cap and floor). The remaining $1.5 billion will be paid in the form of an interest-free, three-year prepayable promissory note. | ||||||||
We will maintain ownership of the vast majority of the Motorola Mobile patent portfolio, including current patent applications and invention disclosures, which will be licensed back to Motorola Mobile for its continued operations. Additionally, in connection with the sale, we will indemnify Lenovo for certain potential liabilities of the Motorola Mobile business. The transaction is subject to the satisfaction of regulatory requirements, customary closing conditions and any other needed approvals and is expected to close in 2014. | ||||||||
As such, financial results of Motorola Mobile are presented as net loss from discontinued operations on the Consolidated Statements of Income for the three months ended March 31, 2013 and 2014; and assets and liabilities of Motorola Mobile to be disposed of are presented as assets held for sale and liabilities held for sale on the Consolidated Balance Sheet as of March 31, 2014, respectively. | ||||||||
The following table presents financial results of the Motorola Mobile business included in net loss from discontinued operations for the three months ended March 31, 2013 and 2014 (in millions, unaudited): | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Revenues | $ | 1,018 | $ | 1,377 | ||||
Loss from discontinued operations before income taxes | (271 | ) | (274 | ) | ||||
Benefits from income taxes | 67 | 76 | ||||||
Net loss from discontinued operations | $ | (204 | ) | $ | (198 | ) | ||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities related to the Motorola Mobile business to be disposed of as of March 31, 2014 (in millions, unaudited): | ||||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 160 | ||||||
Accounts receivable | 881 | |||||||
Inventories | 85 | |||||||
Prepaid expenses and other current assets | 956 | |||||||
Prepaid expenses and other assets, non-current | 270 | |||||||
Property and equipment, net | 503 | |||||||
Intangible assets, net | 947 | |||||||
Goodwill | 71 | |||||||
Total assets | $ | 3,873 | ||||||
Liabilities: | ||||||||
Accounts payable | $ | 1,039 | ||||||
Accrued compensation and benefits | 137 | |||||||
Accrued expenses and other current liabilities | 450 | |||||||
Deferred revenue | 154 | |||||||
Other long-term liabilities | 248 | |||||||
Total liabilities | $ | 2,028 | ||||||
Motorola Home | ||||||||
In December 2012, we entered into an agreement with Arris and certain other persons providing for the disposition of the Motorola Home business. The transaction closed on April 17, 2013. As such, financial results of Motorola Home were included in net loss from discontinued operations for the three months ended March 31, 2013. | ||||||||
The following table presents financial results of the Motorola Home business included in net loss from discontinued operations for the three months ended March 31, 2013 (in millions, unaudited): | ||||||||
Three Months Ended | ||||||||
31-Mar-13 | ||||||||
Revenues | $ | 738 | ||||||
Income from discontinued operations before income taxes | 47 | |||||||
Provision for income taxes | (25 | ) | ||||||
Net income from discontinued operations | $ | 22 | ||||||
Restructuring_Charges
Restructuring Charges | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 business, 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 business to profitability. Pursuant to this restructuring plan, we have incurred cumulative charges of approximately $824 million. | |||||||||||||
For the three months ended March 31, 2014, changes to restructuring accruals were as follows (in millions, unaudited): | |||||||||||||
Severance and | Other | Total | |||||||||||
Related | Charges | ||||||||||||
Balance as of December 31, 2013 | $ | 45 | $ | 12 | $ | 57 | |||||||
Charges | 5 | (2 | ) | 3 | |||||||||
Cash payments | (17 | ) | (2 | ) | (19 | ) | |||||||
Balance as of March 31, 2014 | $ | 33 | $ | 8 | $ | 41 | |||||||
For the three months ended March 31, 2013 and 2014, restructuring charges totaled $63 million and $3 million, which were included in net loss from discontinued operations on the Consolidated Statements of Income. |
Interest_and_Other_Income_Net
Interest and Other Income, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, | ||||||||
2013 | 2014 | |||||||
Interest income | $ | 180 | $ | 168 | ||||
Interest expense | (21 | ) | (24 | ) | ||||
Realized gains on available-for-sale investments, net | 60 | 74 | ||||||
Foreign currency exchange losses, net | (61 | ) | (109 | ) | ||||
Realized gain on equity interest | 0 | 103 | ||||||
Realized gain on non-marketable equity investments | 0 | 117 | ||||||
Other income (expense), net | (24 | ) | 28 | |||||
Interest and other income, net | $ | 134 | $ | 357 | ||||
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
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, Brazil's Council for Economic Defense and the Canadian Competition Bureau 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 investigation by 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 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. | |
Taxes | |
We are under audit by the Internal Revenue Service (IRS) and various other tax authorities with regards to income tax and indirect tax matters. We have reserved for potential adjustments to our provision for income taxes and accrual of indirect taxes that may result from examinations by, or any negotiated agreements with, these tax authorities, and we believe that the final outcome of these examinations or agreements will not have a material effect on our results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state, and foreign income tax liabilities and indirect tax liabilities are less than the ultimate assessment, it would result in a further charge to expense. | |
In March 2014, we received a tax assessment from the French tax authorities. We believe an adequate provision has been made and it is more likely than not that our tax position will be sustained. However, it is reasonably possible that resolution with the French tax authorities could result in an adjustment to our tax position. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 periods presented. The weighted average estimated fair value of options granted has been retroactively adjusted to reflect the effects of the two-for-one stock split: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2013 | 2014 | ||||||||||||
(unaudited) | |||||||||||||
Risk-free interest rate | 0.90% | N/A | |||||||||||
Expected volatility | 29% | N/A | |||||||||||
Expected life (in years) | 5.8 | N/A | |||||||||||
Dividend yield | 0% | N/A | |||||||||||
Weighted-average estimated fair value of options granted during the period | $107.20 | N/A | |||||||||||
There were 3,142 (split-adjusted) stock options granted during the three months ended March 31, 2013. No options were granted during the three months ended March 31, 2014. | |||||||||||||
The following table summarizes the activities for our stock options for the three months ended March 31, 2014 and has been retroactively adjusted to reflect the effects of the two-for-one stock split: | |||||||||||||
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, 2013 | 10,065,726 | $ | 215.5 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (1,301,382 | ) | $ | 205.35 | |||||||||
Forfeited/canceled | (15,686 | ) | $ | 280.01 | |||||||||
Balance as of March 31, 2014 | 8,748,658 | $ | 217.04 | 5.1 | $ | 2,977 | |||||||
Exercisable as of March 31, 2014 | 6,570,910 | $ | 190.39 | 4.4 | $ | 2,411 | |||||||
Exercisable as of March 31, 2014 and expected to vest thereafter (2) | 8,480,795 | $ | 214.5 | 5.1 | $ | 2,907 | |||||||
(1) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the split adjusted closing stock price of $557.26 for our Class A common stock on March 31, 2014. | ||||||||||||
(2) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||
As of March 31, 2014, there was $154 million of unrecognized compensation cost related to outstanding Google employee stock options. This amount is expected to be recognized over a weighted-average period of 1.7 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 three months ended March 31, 2014 and has been retroactively adjusted to reflect the effects of the two-for-one stock split: | |||||||||||||
Unvested Restricted Stock Units | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
(unaudited) | |||||||||||||
Unvested as of December 31, 2013 | 21,953,960 | $ | 359.2 | ||||||||||
Granted | 1,905,174 | $ | 594.91 | ||||||||||
Vested | (2,436,424 | ) | $ | 325.73 | |||||||||
Forfeited/canceled | (219,832 | ) | $ | 352.58 | |||||||||
Unvested as of March 31, 2014 | 21,202,878 | $ | 384.31 | ||||||||||
Expected to vest after March 31, 2014 (1) | 18,594,924 | $ | 384.31 | ||||||||||
(1) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||
As of March 31, 2014, there was $6.3 billion of unrecognized compensation cost related to unvested Google employee RSUs. This amount is expected to be recognized over a weighted-average period of 2.8 years. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation 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 created 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. In January 2014, our board of directors approved a distribution of shares of the Class C capital stock as a dividend to our holders of Class A and Class B common stock. The Stock Split had a record date of March 27, 2014 and a payment date of April 2, 2014. | |||||||||||||
Share and per-share amounts disclosed as of March 31, 2014 and for all other comparative periods provided have been retroactively adjusted to reflect the effects of the stock split. The Class C capital stock has no voting rights, except as required by applicable law. Except as expressly provided in the New Charter, shares of Class C capital stock have the same rights and privileges and rank equally, share ratably and are identical in all other respects to the shares of Class A common stock and Class B common stock as to all matters including dividend and distribution rights. | |||||||||||||
In accordance with the settlement of litigation involving the authorization to distribute the Class C capital stock, we may be obligated to make a payment to holders of the Class C stock if, on average, Class C trades below Class A during the first 365 days following the Class C issuance, payable in cash, Class A stock, Class C stock, or a combination thereof, at the discretion of the board of directors. As the Class C shares were only recently issued, we cannot reliably predict what, if any, patterns will emerge over time with respect to the relative trading prices of Class A and Class C shares. | |||||||||||||
The par value per share of our shares of Class A common stock and Class B common stock remained unchanged at $0.001 per share after the Stock Split. On the effective date of the Stock Split, a transfer between retained earnings and common stock occurred and the amount transferred was equal to the $0.001 par value of the Class C capital stock that was issued. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
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 $2,571 million and $2,764 million as of December 31, 2013 and March 31, 2014. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $2,378 million and $2,557 million as of December 31, 2013 and March 31, 2014. 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 increased from the three months ended March 31, 2013 to the three months ended March 31, 2014, largely attributed to the expiration of the federal research and development credit as of December 31, 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 | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Information about Segments and Geographic Areas | ' | |||||||
Information about Segments and Geographic Areas | ||||||||
On January 29, 2014, we entered into an agreement with Lenovo providing for the disposition of the Motorola Mobile business. Financial results of Motorola Mobile are included in net loss from discontinued operations for the three months ended March 31, 2013 and 2014. As such, Motorola Mobile is not presented as a separate segment in our segment report. | ||||||||
Revenues by geography are based on the billing addresses of our customers. The following tables set forth revenues and long-lived assets by geographic area (in millions): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2014 | |||||||
(unaudited) | ||||||||
Revenues: | ||||||||
United States | $ | 5,836 | $ | 6,656 | ||||
United Kingdom | 1,387 | 1,583 | ||||||
Rest of the world | 5,728 | 7,181 | ||||||
Total revenues | $ | 12,951 | $ | 15,420 | ||||
As of December 31, 2013 | As of | |||||||
March 31, | ||||||||
2014 | ||||||||
(unaudited) | ||||||||
Long-lived assets: | ||||||||
United States | $ | 24,004 | $ | 27,159 | ||||
International | 14,030 | 14,053 | ||||||
Total long-lived assets | $ | 38,034 | $ | 41,212 | ||||
Long-lived assets to be disposed of as a result of our Motorola Mobile disposition were included in "Assets held for sale" on the Consolidated Balance Sheet as of March 31, 2014, and accordingly, are not included in this table. |
Google_Inc_and_Summary_of_Sign1
Google Inc. and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
We were incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. We generate revenues primarily by delivering relevant, cost-effective online advertising | |
Basis of Consolidation | ' |
Basis of Consolidation | |
The consolidated financial statements include the accounts of Google Inc. and our 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 March 31, 2014, the Consolidated Statements of Income for the three months ended March 31, 2013 and 2014, the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2013 and 2014, and the Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2014 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 March 31, 2014, our results of operations for the three months ended March 31, 2013 and 2014, and our cash flows for the three months ended March 31, 2013 and 2014. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
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, 2013, filed with the SEC on February 12, 2014. | |
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) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | ' | |||||||||||||||||||||||
The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Class A | Class B | Class C | Class A | Class B | Class C | |||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 1,435 | $ | 329 | $ | 1,764 | $ | 1,521 | $ | 304 | $ | 1,825 | ||||||||||||
Allocation of undistributed earnings - discontinued operations | (74 | ) | (17 | ) | (91 | ) | (83 | ) | (16 | ) | (99 | ) | ||||||||||||
Total | $ | 1,361 | $ | 312 | $ | 1,673 | $ | 1,438 | $ | 288 | $ | 1,726 | ||||||||||||
Denominator | ||||||||||||||||||||||||
Number of shares used in per share computation | 268,767 | 61,687 | 330,454 | 280,202 | 56,091 | 336,293 | ||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||
Continuing operations | $ | 5.34 | $ | 5.34 | $ | 5.34 | $ | 5.42 | $ | 5.42 | $ | 5.42 | ||||||||||||
Discontinued operations | (0.28 | ) | (0.28 | ) | (0.28 | ) | (0.29 | ) | (0.29 | ) | (0.29 | ) | ||||||||||||
Basic net income per share | $ | 5.06 | $ | 5.06 | $ | 5.06 | $ | 5.13 | $ | 5.13 | $ | 5.13 | ||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 1,435 | $ | 329 | $ | 1,764 | $ | 1,521 | $ | 304 | $ | 1,825 | ||||||||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 329 | 0 | 0 | 304 | 0 | 0 | ||||||||||||||||||
Reallocation of undistributed earnings | 0 | (6 | ) | 0 | 0 | (5 | ) | 0 | ||||||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 1,764 | $ | 323 | $ | 1,764 | $ | 1,825 | $ | 299 | $ | 1,825 | ||||||||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | (74 | ) | $ | (17 | ) | $ | (91 | ) | $ | (83 | ) | $ | (16 | ) | $ | (99 | ) | ||||||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | (17 | ) | 0 | 0 | (16 | ) | 0 | 0 | ||||||||||||||||
Reallocation of undistributed earnings | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Allocation of undistributed earnings - discontinued operations | $ | (91 | ) | $ | (17 | ) | $ | (91 | ) | $ | (99 | ) | $ | (16 | ) | $ | (99 | ) | ||||||
Denominator | ||||||||||||||||||||||||
Number of shares used in basic computation | 268,767 | 61,687 | 330,454 | 280,202 | 56,091 | 336,293 | ||||||||||||||||||
Weighted-average effect of dilutive securities | ||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||
Conversion of Class B to Class A common shares outstanding | 61,687 | 0 | 0 | 56,091 | 0 | 0 | ||||||||||||||||||
Employee stock options, including warrants issued under Transferable Stock Option program | 3,129 | 12 | 3,129 | 2,419 | 0 | 2,419 | ||||||||||||||||||
Restricted stock units | 3,080 | 0 | 3,080 | 3,894 | 0 | 3,894 | ||||||||||||||||||
Number of shares used in per share computation | 336,663 | 61,699 | 336,663 | 342,606 | 56,091 | 342,606 | ||||||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||
Continuing operations | $ | 5.24 | $ | 5.24 | $ | 5.24 | $ | 5.33 | $ | 5.33 | $ | 5.33 | ||||||||||||
Discontinued operations | (0.27 | ) | (0.27 | ) | (0.27 | ) | (0.29 | ) | (0.29 | ) | (0.29 | ) | ||||||||||||
Diluted net income per share | $ | 4.97 | $ | 4.97 | $ | 4.97 | $ | 5.04 | $ | 5.04 | $ | 5.04 | ||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
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, 2013 and March 31, 2014 (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 9,909 | $ | 0 | $ | 0 | $ | 9,909 | $ | 9,909 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 4,428 | 0 | 0 | 4,428 | 4,428 | 0 | |||||||||||||||||||||||
U.S. government notes | 18,276 | 23 | (37 | ) | 18,262 | 2,501 | 15,761 | ||||||||||||||||||||||
Marketable equity securities | 197 | 167 | 0 | 364 | 0 | 364 | |||||||||||||||||||||||
22,901 | 190 | (37 | ) | 23,054 | 6,929 | 16,125 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits(1) | 1,207 | 0 | 0 | 1,207 | 790 | 417 | |||||||||||||||||||||||
Money market and other funds(2) | 1,270 | 0 | 0 | 1,270 | 1,270 | 0 | |||||||||||||||||||||||
U.S. government agencies | 4,575 | 3 | (3 | ) | 4,575 | 0 | 4,575 | ||||||||||||||||||||||
Foreign government bonds | 1,502 | 5 | (26 | ) | 1,481 | 0 | 1,481 | ||||||||||||||||||||||
Municipal securities | 2,904 | 9 | (36 | ) | 2,877 | 0 | 2,877 | ||||||||||||||||||||||
Corporate debt securities | 7,300 | 162 | (67 | ) | 7,395 | 0 | 7,395 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 5,969 | 27 | (187 | ) | 5,809 | 0 | 5,809 | ||||||||||||||||||||||
Asset-backed securities | 1,142 | 0 | (2 | ) | 1,140 | 0 | 1,140 | ||||||||||||||||||||||
25,869 | 206 | (321 | ) | 25,754 | 2,060 | 23,694 | |||||||||||||||||||||||
Total | $ | 58,679 | $ | 396 | $ | (358 | ) | $ | 58,717 | $ | 18,898 | $ | 39,819 | ||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Cash | $ | 9,212 | $ | 0 | $ | 0 | $ | 9,212 | $ | 9,212 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 3,212 | 0 | 0 | 3,212 | 3,212 | 0 | |||||||||||||||||||||||
U.S. government notes | 18,034 | 24 | (22 | ) | 18,036 | 852 | 17,184 | ||||||||||||||||||||||
Marketable equity securities | 190 | 190 | 0 | 380 | 0 | 380 | |||||||||||||||||||||||
21,436 | 214 | (22 | ) | 21,628 | 4,064 | 17,564 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits(1) | 1,762 | 0 | 0 | 1,762 | 1,260 | 502 | |||||||||||||||||||||||
Money market and other funds(2) | 2,103 | 0 | 0 | 2,103 | 2,103 | 0 | |||||||||||||||||||||||
U.S. government agencies | 5,674 | 3 | (2 | ) | 5,675 | 0 | 5,675 | ||||||||||||||||||||||
Foreign government bonds | 1,719 | 9 | (15 | ) | 1,713 | 0 | 1,713 | ||||||||||||||||||||||
Municipal securities | 2,795 | 15 | (18 | ) | 2,792 | 0 | 2,792 | ||||||||||||||||||||||
Corporate debt securities | 7,030 | 185 | (30 | ) | 7,185 | 0 | 7,185 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 6,151 | 36 | (144 | ) | 6,043 | 0 | 6,043 | ||||||||||||||||||||||
Asset-backed securities | 1,267 | 0 | (1 | ) | 1,266 | 0 | 1,266 | ||||||||||||||||||||||
28,501 | 248 | (210 | ) | 28,539 | 3,363 | 25,176 | |||||||||||||||||||||||
Total | $ | 59,149 | $ | 462 | $ | (232 | ) | $ | 59,379 | $ | 16,639 | $ | 42,740 | ||||||||||||||||
(1) | The majority of our time deposits are foreign deposits. | ||||||||||||||||||||||||||||
(2) | The balances at December 31, 2013 and March 31, 2014 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 debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): | |||||||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Due in 1 year | $ | 14,828 | |||||||||||||||||||||||||||
Due in 1 year through 5 years | 15,431 | ||||||||||||||||||||||||||||
Due in 5 years through 10 years | 5,942 | ||||||||||||||||||||||||||||
Due after 10 years | 6,159 | ||||||||||||||||||||||||||||
Total | $ | 42,360 | |||||||||||||||||||||||||||
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, 2013 and March 31, 2014, 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, 2013 | |||||||||||||||||||||||||||||
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 | $ | 4,404 | $ | (37 | ) | $ | 0 | $ | 0 | $ | 4,404 | $ | (37 | ) | |||||||||||||||
U.S. government agencies | 496 | (3 | ) | 0 | 0 | 496 | (3 | ) | |||||||||||||||||||||
Foreign government bonds | 899 | (23 | ) | 83 | (3 | ) | 982 | (26 | ) | ||||||||||||||||||||
Municipal securities | 1,210 | (32 | ) | 99 | (4 | ) | 1,309 | (36 | ) | ||||||||||||||||||||
Corporate debt securities | 2,583 | (62 | ) | 69 | (5 | ) | 2,652 | (67 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 4,065 | (167 | ) | 468 | (20 | ) | 4,533 | (187 | ) | ||||||||||||||||||||
Asset-backed securities | 643 | (2 | ) | 0 | 0 | 643 | (2 | ) | |||||||||||||||||||||
Total | $ | 14,300 | $ | (326 | ) | $ | 719 | $ | (32 | ) | $ | 15,019 | $ | (358 | ) | ||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
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 | $ | 2,583 | $ | (22 | ) | $ | 0 | $ | 0 | $ | 2,583 | $ | (22 | ) | |||||||||||||||
U.S. government agencies | 472 | (2 | ) | 0 | 0 | 472 | (2 | ) | |||||||||||||||||||||
Foreign government bonds | 844 | (10 | ) | 100 | (5 | ) | 944 | (15 | ) | ||||||||||||||||||||
Municipal securities | 915 | (13 | ) | 106 | (5 | ) | 1,021 | (18 | ) | ||||||||||||||||||||
Corporate debt securities | 1,466 | (25 | ) | 86 | (5 | ) | 1,552 | (30 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 3,540 | (110 | ) | 570 | (34 | ) | 4,110 | (144 | ) | ||||||||||||||||||||
Asset-backed securities | 0 | 0 | 90 | (1 | ) | 90 | (1 | ) | |||||||||||||||||||||
Total | $ | 9,820 | $ | (182 | ) | $ | 952 | $ | (50 | ) | $ | 10,772 | $ | (232 | ) | ||||||||||||||
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, 2013 | |||||||||||||||||||||||||||||
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 | $ | 133 | $ | 12 | $ | 145 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 87 | 0 | 87 | |||||||||||||||||||||||||
Total | $ | 220 | $ | 12 | $ | 232 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 0 | $ | 4 | $ | 4 | ||||||||||||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
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 and assets held for sale | $ | 80 | $ | 4 | $ | 84 | ||||||||||||||||||||||
Total | $ | 80 | $ | 4 | $ | 84 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses, and other current liabilities and liabilities held for sale | $ | 5 | $ | 13 | $ | 18 | ||||||||||||||||||||||
Total | $ | 5 | $ | 13 | $ | 18 | |||||||||||||||||||||||
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 March 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | 2013 | 2014 | |||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 163 | $ | 13 | |||||||||||||||||||||||||
Interest rate contracts | 10 | (31 | ) | ||||||||||||||||||||||||||
Total | $ | 173 | $ | (18 | ) | ||||||||||||||||||||||||
Gains Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Income Statement Location | 2013 | 2014 | ||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Revenues | $ | 35 | $ | 8 | ||||||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives (Amount | |||||||||||||||||||||||||||||
Excluded from Effectiveness Testing and Ineffective Portion) (1) | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Income Statement Location | 2013 | 2014 | ||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (51 | ) | $ | (67 | ) | ||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and other income, net | 0 | 4 | ||||||||||||||||||||||||||
Total | $ | (51 | ) | $ | (63 | ) | |||||||||||||||||||||||
(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 March 31, | |||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationship | Income Statement Location | 2013 | 2014 | ||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | 37 | $ | (2 | ) | |||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Hedged item | Interest and | (38 | ) | 0 | |||||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (1 | ) | $ | (2 | ) | |||||||||||||||||||||||
(2) | Losses related to the amount excluded from effectiveness testing of the hedges were $1 million and $2 million for the three months ended March 31, 2013 and 2014. | ||||||||||||||||||||||||||||
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 March 31, | |||||||||||||||||||||||||||||
Derivatives Not Designated As Hedging Instruments | Income Statement Location | 2013 | 2014 | ||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | 87 | $ | (37 | ) | |||||||||||||||||||||||
other income, net, and net loss from discontinued operations | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and | 0 | 1 | ||||||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | 87 | $ | (36 | ) | ||||||||||||||||||||||||
Offsetting Assets | ' | ||||||||||||||||||||||||||||
As of December 31, 2013 and March 31, 2014, information related to these offsetting arrangements was as follows (in millions): | |||||||||||||||||||||||||||||
Offsetting of Assets | |||||||||||||||||||||||||||||
As of December 31, 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 | $ | 232 | $ | 0 | $ | 232 | $ | (2 | ) | (1) | $ | (35 | ) | $ | (52 | ) | $ | 143 | |||||||||||
Reverse repurchase agreements | 1,370 | 0 | 1,370 | (2) | 0 | 0 | (1,370 | ) | 0 | ||||||||||||||||||||
Total | $ | 1,602 | $ | 0 | $ | 1,602 | $ | (2 | ) | $ | (35 | ) | $ | (1,422 | ) | $ | 143 | ||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Non-Cash Collateral Received | Net Assets Exposed | ||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Derivatives | $ | 84 | $ | 0 | $ | 84 | $ | (5 | ) | (1) | $ | (7 | ) | $ | (9 | ) | $ | 63 | |||||||||||
Reverse repurchase agreements | 2,153 | 0 | 2,153 | (2) | 0 | 0 | (2,153 | ) | 0 | ||||||||||||||||||||
Total | $ | 2,237 | $ | 0 | $ | 2,237 | $ | (5 | ) | $ | (7 | ) | $ | (2,162 | ) | $ | 63 | ||||||||||||
(1) The balances at December 31, 2013 and March 31, 2014 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, 2013 and March 31, 2014 included $1,270 million and $2,103 million recorded in cash and cash equivalents, respectively, and $100 million and $50 million recorded in receivable under reverse repurchase agreements, respectively. | |||||||||||||||||||||||||||||
Offsetting Liabilities | ' | ||||||||||||||||||||||||||||
Offsetting of Liabilities | |||||||||||||||||||||||||||||
As of December 31, 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 | $ | 4 | $ | 0 | $ | 4 | $ | (2 | ) | (3) | $ | 0 | $ | 0 | $ | 2 | |||||||||||||
Securities lending agreements | 1,374 | 0 | 1,374 | 0 | 0 | (1,357 | ) | 17 | |||||||||||||||||||||
Total | $ | 1,378 | $ | 0 | $ | 1,378 | $ | (2 | ) | $ | 0 | $ | (1,357 | ) | $ | 19 | |||||||||||||
As of March 31, 2014 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Non-Cash Collateral Pledged | Net Liabilities | ||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Derivatives | $ | 18 | $ | 0 | $ | 18 | $ | (5 | ) | (3) | $ | 0 | $ | 0 | $ | 13 | |||||||||||||
Securities lending agreements | 2,153 | 0 | 2,153 | 0 | 0 | (2,124 | ) | 29 | |||||||||||||||||||||
Total | $ | 2,171 | $ | 0 | $ | 2,171 | $ | (5 | ) | $ | 0 | $ | (2,124 | ) | $ | 42 | |||||||||||||
(3) The balances at December 31, 2013 and March 31, 2014 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) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
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 December 31, 2013 | As of | ||||||
March 31, | |||||||
2014 | |||||||
(unaudited) | |||||||
Short-Term Portion of Long-Term Debt | |||||||
1.25% Notes due on May 19, 2014 | $ | 1,000 | $ | 1,000 | |||
Capital Lease Obligation | 9 | 9 | |||||
Total | $ | 1,009 | $ | 1,009 | |||
Long-Term Debt | |||||||
2.125% Notes due on May 19, 2016 | $ | 1,000 | $ | 1,000 | |||
3.625% Notes due on May 19, 2021 | 1,000 | 1,000 | |||||
3.375% Notes due on February 25, 2024 | 0 | 1,000 | |||||
Unamortized discount for the Notes above | (10 | ) | (9 | ) | |||
Subtotal | 1,990 | 2,991 | |||||
Capital Lease Obligation | 246 | 243 | |||||
Total | $ | 2,236 | $ | 3,234 | |||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Balance Sheet Components Disclosure [Abstract] | ' | |||||||||||||||
Inventories | ' | |||||||||||||||
Inventories consisted of the following (in millions): | ||||||||||||||||
As of December 31, 2013 | As of | |||||||||||||||
March 31, | ||||||||||||||||
2014 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Raw materials and work in process | $ | 115 | $ | 2 | ||||||||||||
Finished goods | 311 | 335 | ||||||||||||||
Inventories | $ | 426 | $ | 337 | ||||||||||||
Property and Equipment | ' | |||||||||||||||
Property and equipment consisted of the following (in millions): | ||||||||||||||||
As of December 31, 2013 | As of | |||||||||||||||
March 31, | ||||||||||||||||
2014 | ||||||||||||||||
(unaudited) | ||||||||||||||||
Information technology assets | $ | 9,094 | $ | 9,408 | ||||||||||||
Land and buildings | 7,488 | 8,776 | ||||||||||||||
Construction in progress | 5,602 | 5,878 | ||||||||||||||
Leasehold improvements | 1,576 | 1,578 | ||||||||||||||
Furniture and fixtures | 77 | 79 | ||||||||||||||
Total | 23,837 | 25,719 | ||||||||||||||
Less: accumulated depreciation and amortization | 7,313 | 7,842 | ||||||||||||||
Property and equipment, net | $ | 16,524 | $ | 17,877 | ||||||||||||
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 | (168 | ) | (55 | ) | 109 | (114 | ) | |||||||||
Amounts reclassified from AOCI | 0 | (46 | ) | (22 | ) | (68 | ) | |||||||||
Other comprehensive income (loss) | (168 | ) | (101 | ) | 87 | (182 | ) | |||||||||
Balance as of March 31, 2013 | $ | (241 | ) | $ | 503 | $ | 94 | $ | 356 | |||||||
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Investments | Unrealized Gains on Cash Flow Hedges | Total | |||||||||||||
Balance as of December 31, 2013 | $ | 16 | $ | 50 | $ | 59 | $ | 125 | ||||||||
Other comprehensive income (loss) before reclassifications | 65 | 217 | 10 | 292 | ||||||||||||
Amounts reclassified from AOCI | 0 | (67 | ) | (5 | ) | (72 | ) | |||||||||
Other comprehensive income (loss) | 65 | 150 | 5 | 220 | ||||||||||||
Balance as of March 31, 2014 | $ | 81 | $ | 200 | $ | 64 | $ | 345 | ||||||||
Schedule of Effect on Net Income of Amounts Reclassified from Accumulated OCI | ' | |||||||||||||||
The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited): | ||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||
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 | $ | 60 | |||||||||||||
Provision for income taxes | (14 | ) | ||||||||||||||
Net of tax | $ | 46 | ||||||||||||||
Unrealized gains on cash flow hedges for foreign exchange contracts | Revenue | $ | 35 | |||||||||||||
Provision for income taxes | (13 | ) | ||||||||||||||
Net of tax | $ | 22 | ||||||||||||||
Total amount reclassified, net of tax | $ | 68 | ||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||
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 | $ | 74 | |||||||||||||
Provision for income taxes | (7 | ) | ||||||||||||||
Net of tax | $ | 67 | ||||||||||||||
Unrealized gains on cash flow hedges for foreign exchange contracts | Revenue | $ | 8 | |||||||||||||
Provision for income taxes | (3 | ) | ||||||||||||||
Net of tax | $ | 5 | ||||||||||||||
Total amount reclassified, net of tax | $ | 72 | ||||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of Goodwill | ' | |||||||||||
The changes in the carrying amount of goodwill for the three months ended March 31, 2014 were as follows (in millions, unaudited): | ||||||||||||
Balance as of December 31, 2013 | $ | 11,492 | ||||||||||
Goodwill acquired | 2,754 | |||||||||||
Goodwill reclassified to assets held for sale | (71 | ) | ||||||||||
Goodwill adjustment | 2 | |||||||||||
Balance as of March 31, 2014 | $ | 14,177 | ||||||||||
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, 2013 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
Patents and developed technology | $ | 7,282 | $ | 2,102 | $ | 5,180 | ||||||
Customer relationships | 1,770 | 1,067 | 703 | |||||||||
Trade names and other | 534 | 351 | 183 | |||||||||
Total | $ | 9,586 | $ | 3,520 | $ | 6,066 | ||||||
As of March 31, 2014 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
(unaudited) | ||||||||||||
Patents and developed technology | $ | 6,825 | $ | 2,158 | $ | 4,667 | ||||||
Customer relationships | 1,390 | 1,033 | 357 | |||||||||
Trade names and other | 640 | 347 | 293 | |||||||||
Total | $ | 8,855 | $ | 3,538 | $ | 5,317 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||||||
As of March 31, 2014, 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 2014 | $ | 758 | ||||||||||
2015 | 859 | |||||||||||
2016 | 772 | |||||||||||
2017 | 705 | |||||||||||
2018 | 653 | |||||||||||
Thereafter | 1,570 | |||||||||||
$ | 5,317 | |||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) (Motorola Mobile) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Motorola Mobile | ' | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||
Schedule of Financial Results and Aggregate Carrying Amounts of Major Assets and Liabilities of Businesses Disposed of | ' | |||||||
The following table presents financial results of the Motorola Mobile business included in net loss from discontinued operations for the three months ended March 31, 2013 and 2014 (in millions, unaudited): | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Revenues | $ | 1,018 | $ | 1,377 | ||||
Loss from discontinued operations before income taxes | (271 | ) | (274 | ) | ||||
Benefits from income taxes | 67 | 76 | ||||||
Net loss from discontinued operations | $ | (204 | ) | $ | (198 | ) | ||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities related to the Motorola Mobile business to be disposed of as of March 31, 2014 (in millions, unaudited): | ||||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 160 | ||||||
Accounts receivable | 881 | |||||||
Inventories | 85 | |||||||
Prepaid expenses and other current assets | 956 | |||||||
Prepaid expenses and other assets, non-current | 270 | |||||||
Property and equipment, net | 503 | |||||||
Intangible assets, net | 947 | |||||||
Goodwill | 71 | |||||||
Total assets | $ | 3,873 | ||||||
Liabilities: | ||||||||
Accounts payable | $ | 1,039 | ||||||
Accrued compensation and benefits | 137 | |||||||
Accrued expenses and other current liabilities | 450 | |||||||
Deferred revenue | 154 | |||||||
Other long-term liabilities | 248 | |||||||
Total liabilities | $ | 2,028 | ||||||
The following table presents financial results of the Motorola Home business included in net loss from discontinued operations for the three months ended March 31, 2013 (in millions, unaudited): | ||||||||
Three Months Ended | ||||||||
31-Mar-13 | ||||||||
Revenues | $ | 738 | ||||||
Income from discontinued operations before income taxes | 47 | |||||||
Provision for income taxes | (25 | ) | ||||||
Net income from discontinued operations | $ | 22 | ||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Summary of Activities Related to Restructuring Charges | ' | ||||||||||||
For the three months ended March 31, 2014, changes to restructuring accruals were as follows (in millions, unaudited): | |||||||||||||
Severance and | Other | Total | |||||||||||
Related | Charges | ||||||||||||
Balance as of December 31, 2013 | $ | 45 | $ | 12 | $ | 57 | |||||||
Charges | 5 | (2 | ) | 3 | |||||||||
Cash payments | (17 | ) | (2 | ) | (19 | ) | |||||||
Balance as of March 31, 2014 | $ | 33 | $ | 8 | $ | 41 | |||||||
Interest_and_Other_Income_Net_
Interest and Other Income, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, | ||||||||
2013 | 2014 | |||||||
Interest income | $ | 180 | $ | 168 | ||||
Interest expense | (21 | ) | (24 | ) | ||||
Realized gains on available-for-sale investments, net | 60 | 74 | ||||||
Foreign currency exchange losses, net | (61 | ) | (109 | ) | ||||
Realized gain on equity interest | 0 | 103 | ||||||
Realized gain on non-marketable equity investments | 0 | 117 | ||||||
Other income (expense), net | (24 | ) | 28 | |||||
Interest and other income, net | $ | 134 | $ | 357 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 periods presented. The weighted average estimated fair value of options granted has been retroactively adjusted to reflect the effects of the two-for-one stock split: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2013 | 2014 | ||||||||||||
(unaudited) | |||||||||||||
Risk-free interest rate | 0.90% | N/A | |||||||||||
Expected volatility | 29% | N/A | |||||||||||
Expected life (in years) | 5.8 | N/A | |||||||||||
Dividend yield | 0% | N/A | |||||||||||
Weighted-average estimated fair value of options granted during the period | $107.20 | N/A | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||
The following table summarizes the activities for our stock options for the three months ended March 31, 2014 and has been retroactively adjusted to reflect the effects of the two-for-one stock split: | |||||||||||||
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, 2013 | 10,065,726 | $ | 215.5 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (1,301,382 | ) | $ | 205.35 | |||||||||
Forfeited/canceled | (15,686 | ) | $ | 280.01 | |||||||||
Balance as of March 31, 2014 | 8,748,658 | $ | 217.04 | 5.1 | $ | 2,977 | |||||||
Exercisable as of March 31, 2014 | 6,570,910 | $ | 190.39 | 4.4 | $ | 2,411 | |||||||
Exercisable as of March 31, 2014 and expected to vest thereafter (2) | 8,480,795 | $ | 214.5 | 5.1 | $ | 2,907 | |||||||
(1) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the split adjusted closing stock price of $557.26 for our Class A common stock on March 31, 2014. | ||||||||||||
(2) | Options expected to vest reflect an estimated forfeiture rate. | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | ' | ||||||||||||
The following table summarizes the activities for our unvested RSUs for the three months ended March 31, 2014 and has been retroactively adjusted to reflect the effects of the two-for-one stock split: | |||||||||||||
Unvested Restricted Stock Units | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
(unaudited) | |||||||||||||
Unvested as of December 31, 2013 | 21,953,960 | $ | 359.2 | ||||||||||
Granted | 1,905,174 | $ | 594.91 | ||||||||||
Vested | (2,436,424 | ) | $ | 325.73 | |||||||||
Forfeited/canceled | (219,832 | ) | $ | 352.58 | |||||||||
Unvested as of March 31, 2014 | 21,202,878 | $ | 384.31 | ||||||||||
Expected to vest after March 31, 2014 (1) | 18,594,924 | $ | 384.31 | ||||||||||
(1) | RSUs expected to vest reflect an estimated forfeiture rate. |
Information_about_Segments_and1
Information about Segments and Geographic Areas (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule Of Revenue From External Customers And Long-lived Assets By Geographical Areas | ' | |||||||
Revenues by geography are based on the billing addresses of our customers. The following tables set forth revenues and long-lived assets by geographic area (in millions): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2014 | |||||||
(unaudited) | ||||||||
Revenues: | ||||||||
United States | $ | 5,836 | $ | 6,656 | ||||
United Kingdom | 1,387 | 1,583 | ||||||
Rest of the world | 5,728 | 7,181 | ||||||
Total revenues | $ | 12,951 | $ | 15,420 | ||||
As of December 31, 2013 | As of | |||||||
March 31, | ||||||||
2014 | ||||||||
(unaudited) | ||||||||
Long-lived assets: | ||||||||
United States | $ | 24,004 | $ | 27,159 | ||||
International | 14,030 | 14,053 | ||||||
Total long-lived assets | $ | 38,034 | $ | 41,212 | ||||
Google_Inc_and_Summary_of_Sign2
Google Inc. and Summary of Significant Accounting Policies (Details) (Subsequent Event) | 0 Months Ended |
Apr. 02, 2014 | |
Subsequent Event | ' |
Subsequent Event [Line Items] | ' |
Stock split, conversion ratio | 2 |
Net_Income_Per_Share_of_Class_2
Net Income Per Share of Class A and Class B Common Stock (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jun. 21, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jun. 21, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Apr. 02, 2014 |
Class A Common Stock | Class A Common Stock | Class A Common Stock | Class A Common 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 | Class B Common Stock | Class B Common Stock | Class B Common Stock | Class B Common Stock | Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Subsequent Event | ||||
Continuing Operations | Continuing Operations | Discontinued operations | Discontinued operations | Continuing Operations | Continuing Operations | Discontinued operations | Discontinued operations | Continuing Operations | Continuing Operations | Discontinued operations | Discontinued operations | |||||||||||||||||
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split, conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Capital stock, number of shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000,000 | ' | 3,000,000,000 | 3,000,000,000 | ' | ' | ' | ' | ' |
Common stock, number of shares authorized | 15,000,000,000 | ' | 15,000,000,000 | 9,000,000,000 | ' | 9,000,000,000 | 9,000,000,000 | 6,000,000,000 | ' | ' | ' | ' | 3,000,000,000 | ' | 3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numerator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of undistributed earnings - continuing operations | $3,650 | $3,528 | ' | $1,521 | $1,435 | ' | ' | ' | ' | ' | ' | ' | $304 | $329 | ' | ' | ' | ' | ' | $1,825 | $1,764 | ' | ' | ' | ' | ' | ' | ' |
Allocation of undistributed earnings - discontinued operations | -198 | -182 | ' | -83 | -74 | ' | ' | ' | ' | ' | ' | ' | -16 | -17 | ' | ' | ' | ' | ' | -99 | -91 | ' | ' | ' | ' | ' | ' | ' |
Net income | 3,452 | 3,346 | ' | 1,438 | 1,361 | ' | ' | ' | ' | ' | ' | ' | 288 | 312 | ' | ' | ' | ' | ' | 1,726 | 1,673 | ' | ' | ' | ' | ' | ' | ' |
Denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares used in basic computation | 672,587,000 | 660,908,000 | ' | 280,202,000 | 268,767,000 | ' | ' | ' | ' | ' | ' | ' | 56,091,000 | 61,687,000 | ' | ' | ' | ' | ' | 336,293,000 | 330,454,000 | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $5.42 | $5.34 | ' | $5.42 | $5.34 | ' | ' | ' | ' | ' | ' | ' | $5.42 | $5.34 | ' | ' | ' | ' | ' | $5.42 | $5.34 | ' | ' | ' | ' | ' | ' | ' |
Discontinued operations (in dollars per share) | ($0.29) | ($0.28) | ' | ($0.29) | ($0.28) | ' | ' | ' | ' | ' | ' | ' | ($0.29) | ($0.28) | ' | ' | ' | ' | ' | ($0.29) | ($0.28) | ' | ' | ' | ' | ' | ' | ' |
Net income per share - basic (in dollars per share) | $5.13 | $5.06 | ' | $5.13 | $5.06 | ' | ' | ' | ' | ' | ' | ' | $5.13 | $5.06 | ' | ' | ' | ' | ' | $5.13 | $5.06 | ' | ' | ' | ' | ' | ' | ' |
Numerator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of undistributed earnings - continuing operations | 3,650 | 3,528 | ' | 1,521 | 1,435 | ' | ' | ' | ' | ' | ' | ' | 304 | 329 | ' | ' | ' | ' | ' | 1,825 | 1,764 | ' | ' | ' | ' | ' | ' | ' |
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | ' | ' | ' | ' | ' | ' | ' | ' | 304 | 329 | -16 | -17 | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' |
Reallocation of undistributed earnings | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | -5 | -6 | 0 | 0 | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' |
Allocation of undistributed earnings | ' | ' | ' | ' | ' | ' | ' | ' | 1,825 | 1,764 | -99 | -91 | ' | ' | ' | 299 | 323 | -16 | -17 | ' | ' | ' | ' | 1,825 | 1,764 | -99 | -91 | ' |
Allocation of undistributed earnings - discontinued operations | ($198) | ($182) | ' | ($83) | ($74) | ' | ' | ' | ' | ' | ' | ' | ($16) | ($17) | ' | ' | ' | ' | ' | ($99) | ($91) | ' | ' | ' | ' | ' | ' | ' |
Denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares used in basic computation | 672,587,000 | 660,908,000 | ' | 280,202,000 | 268,767,000 | ' | ' | ' | ' | ' | ' | ' | 56,091,000 | 61,687,000 | ' | ' | ' | ' | ' | 336,293,000 | 330,454,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average effect of dilutive securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of Class B to Class A common shares outstanding (in shares) | ' | ' | ' | 56,091,000 | 61,687,000 | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Employee stock options, including warrants issued under Transferable Stock Option program (in shares) | ' | ' | ' | 2,419,000 | 3,129,000 | ' | ' | ' | ' | ' | ' | ' | 0 | 12,000 | ' | ' | ' | ' | ' | 2,419,000 | 3,129,000 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units (in shares) | ' | ' | ' | 3,894,000 | 3,080,000 | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | 3,894,000 | 3,080,000 | ' | ' | ' | ' | ' | ' | ' |
Number of shares used in diluted per share computation | 685,212,000 | 673,326,000 | ' | 342,606,000 | 336,663,000 | ' | ' | ' | ' | ' | ' | ' | 56,091,000 | 61,699,000 | ' | ' | ' | ' | ' | 342,606,000 | 336,663,000 | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $5.33 | $5.24 | ' | $5.33 | $5.24 | ' | ' | ' | ' | ' | ' | ' | $5.33 | $5.24 | ' | ' | ' | ' | ' | $5.33 | $5.24 | ' | ' | ' | ' | ' | ' | ' |
Discontinued operations (in dollars per share) | ($0.29) | ($0.27) | ' | ($0.29) | ($0.27) | ' | ' | ' | ' | ' | ' | ' | ($0.29) | ($0.27) | ' | ' | ' | ' | ' | ($0.29) | ($0.27) | ' | ' | ' | ' | ' | ' | ' |
Net income per share - diluted (in dollars per share) | $5.04 | $4.97 | ' | $5.04 | $4.97 | ' | ' | ' | ' | ' | ' | ' | $5.04 | $4.97 | ' | ' | ' | ' | ' | $5.04 | $4.97 | ' | ' | ' | ' | ' | ' | ' |
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 $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | $59,149 | $58,679 | ' | ' | ||
Gross Unrealized Gains | 462 | 396 | ' | ' | ||
Gross Unrealized Losses | -232 | -358 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 59,379 | 58,717 | ' | ' | ||
Cash and Cash Equivalents | 16,639 | 18,898 | 15,375 | 14,778 | ||
Marketable Securities | 42,740 | 39,819 | ' | ' | ||
Cash | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 9,212 | 9,909 | ' | ' | ||
Gross Unrealized Gains | 0 | 0 | ' | ' | ||
Gross Unrealized Losses | 0 | 0 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 9,212 | 9,909 | ' | ' | ||
Cash and Cash Equivalents | 9,212 | 9,909 | ' | ' | ||
Marketable Securities | 0 | 0 | ' | ' | ||
Level 1 | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 21,436 | 22,901 | ' | ' | ||
Gross Unrealized Gains | 214 | 190 | ' | ' | ||
Gross Unrealized Losses | -22 | -37 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 21,628 | 23,054 | ' | ' | ||
Cash and Cash Equivalents | 4,064 | 6,929 | ' | ' | ||
Marketable Securities | 17,564 | 16,125 | ' | ' | ||
Level 1 | Money market and other funds | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 3,212 | 4,428 | ' | ' | ||
Gross Unrealized Gains | 0 | 0 | ' | ' | ||
Gross Unrealized Losses | 0 | 0 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 3,212 | 4,428 | ' | ' | ||
Cash and Cash Equivalents | 3,212 | 4,428 | ' | ' | ||
Marketable Securities | 0 | 0 | ' | ' | ||
Level 1 | U.S. government notes | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 18,034 | 18,276 | ' | ' | ||
Gross Unrealized Gains | 24 | 23 | ' | ' | ||
Gross Unrealized Losses | -22 | -37 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 18,036 | 18,262 | ' | ' | ||
Cash and Cash Equivalents | 852 | 2,501 | ' | ' | ||
Marketable Securities | 17,184 | 15,761 | ' | ' | ||
Level 1 | Marketable equity securities | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 190 | 197 | ' | ' | ||
Gross Unrealized Gains | 190 | 167 | ' | ' | ||
Gross Unrealized Losses | 0 | 0 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 380 | 364 | ' | ' | ||
Cash and Cash Equivalents | 0 | 0 | ' | ' | ||
Marketable Securities | 380 | 364 | ' | ' | ||
Level 2 | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 28,501 | 25,869 | ' | ' | ||
Gross Unrealized Gains | 248 | 206 | ' | ' | ||
Gross Unrealized Losses | -210 | -321 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 28,539 | 25,754 | ' | ' | ||
Cash and Cash Equivalents | 3,363 | 2,060 | ' | ' | ||
Marketable Securities | 25,176 | 23,694 | ' | ' | ||
Level 2 | Money market and other funds | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 2,103 | [1] | 1,270 | [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 $5,059 and $4,405) | 2,103 | [1] | 1,270 | [1] | ' | ' |
Cash and Cash Equivalents | 2,103 | [1] | 1,270 | [1] | ' | ' |
Marketable Securities | 0 | [1] | 0 | [1] | ' | ' |
Level 2 | Time deposits | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 1,762 | [2] | 1,207 | [2] | ' | ' |
Gross Unrealized Gains | 0 | [2] | 0 | [2] | ' | ' |
Gross Unrealized Losses | 0 | [2] | 0 | [2] | ' | ' |
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 1,762 | [2] | 1,207 | [2] | ' | ' |
Cash and Cash Equivalents | 1,260 | [2] | 790 | [2] | ' | ' |
Marketable Securities | 502 | [2] | 417 | [2] | ' | ' |
Level 2 | U.S. government agencies | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 5,674 | 4,575 | ' | ' | ||
Gross Unrealized Gains | 3 | 3 | ' | ' | ||
Gross Unrealized Losses | -2 | -3 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 5,675 | 4,575 | ' | ' | ||
Cash and Cash Equivalents | 0 | 0 | ' | ' | ||
Marketable Securities | 5,675 | 4,575 | ' | ' | ||
Level 2 | Foreign government bonds | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 1,719 | 1,502 | ' | ' | ||
Gross Unrealized Gains | 9 | 5 | ' | ' | ||
Gross Unrealized Losses | -15 | -26 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 1,713 | 1,481 | ' | ' | ||
Cash and Cash Equivalents | 0 | 0 | ' | ' | ||
Marketable Securities | 1,713 | 1,481 | ' | ' | ||
Level 2 | Municipal securities | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 2,795 | 2,904 | ' | ' | ||
Gross Unrealized Gains | 15 | 9 | ' | ' | ||
Gross Unrealized Losses | -18 | -36 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 2,792 | 2,877 | ' | ' | ||
Cash and Cash Equivalents | 0 | 0 | ' | ' | ||
Marketable Securities | 2,792 | 2,877 | ' | ' | ||
Level 2 | Corporate debt securities | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 7,030 | 7,300 | ' | ' | ||
Gross Unrealized Gains | 185 | 162 | ' | ' | ||
Gross Unrealized Losses | -30 | -67 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 7,185 | 7,395 | ' | ' | ||
Cash and Cash Equivalents | 0 | 0 | ' | ' | ||
Marketable Securities | 7,185 | 7,395 | ' | ' | ||
Level 2 | Agency residential mortgage-backed securities | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 6,151 | 5,969 | ' | ' | ||
Gross Unrealized Gains | 36 | 27 | ' | ' | ||
Gross Unrealized Losses | -144 | -187 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 6,043 | 5,809 | ' | ' | ||
Cash and Cash Equivalents | 0 | 0 | ' | ' | ||
Marketable Securities | 6,043 | 5,809 | ' | ' | ||
Level 2 | Asset-backed securities | ' | ' | ' | ' | ||
Cash, cash equivalents and marketable securities [Line Items] | ' | ' | ' | ' | ||
Adjusted Cost | 1,267 | 1,142 | ' | ' | ||
Gross Unrealized Gains | 0 | 0 | ' | ' | ||
Gross Unrealized Losses | -1 | -2 | ' | ' | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,405) | 1,266 | 1,140 | ' | ' | ||
Cash and Cash Equivalents | 0 | 0 | ' | ' | ||
Marketable Securities | $1,266 | $1,140 | ' | ' | ||
[1] | The balances at December 31, 2013 and March 31, 2014 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. | |||||
[2] | The majority of our time deposits are foreign deposits. |
Financial_Instruments_Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Fair Value Disclosures [Abstract] | ' |
Due in 1 year | $14,828 |
Due in 1 year through 5 years | 15,431 |
Due in 5 years through 10 years | 5,942 |
Due after 10 years | 6,159 |
Total | $42,360 |
Financial_Instruments_Gross_Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | $9,820 | $14,300 |
Less than 12 Months, Unrealized Loss | -182 | -326 |
12 Months or Greater, Fair Value | 952 | 719 |
12 Months or Greater, Unrealized Loss | -50 | -32 |
Total Fair Value | 10,772 | 15,019 |
Total Unrealized Loss | -232 | -358 |
US government notes | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 2,583 | 4,404 |
Less than 12 Months, Unrealized Loss | -22 | -37 |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total Fair Value | 2,583 | 4,404 |
Total Unrealized Loss | -22 | -37 |
U.S. government agencies | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 472 | 496 |
Less than 12 Months, Unrealized Loss | -2 | -3 |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total Fair Value | 472 | 496 |
Total Unrealized Loss | -2 | -3 |
Foreign government bonds | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 844 | 899 |
Less than 12 Months, Unrealized Loss | -10 | -23 |
12 Months or Greater, Fair Value | 100 | 83 |
12 Months or Greater, Unrealized Loss | -5 | -3 |
Total Fair Value | 944 | 982 |
Total Unrealized Loss | -15 | -26 |
Municipal securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 915 | 1,210 |
Less than 12 Months, Unrealized Loss | -13 | -32 |
12 Months or Greater, Fair Value | 106 | 99 |
12 Months or Greater, Unrealized Loss | -5 | -4 |
Total Fair Value | 1,021 | 1,309 |
Total Unrealized Loss | -18 | -36 |
Corporate debt securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 1,466 | 2,583 |
Less than 12 Months, Unrealized Loss | -25 | -62 |
12 Months or Greater, Fair Value | 86 | 69 |
12 Months or Greater, Unrealized Loss | -5 | -5 |
Total Fair Value | 1,552 | 2,652 |
Total Unrealized Loss | -30 | -67 |
Agency residential mortgage-backed securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 3,540 | 4,065 |
Less than 12 Months, Unrealized Loss | -110 | -167 |
12 Months or Greater, Fair Value | 570 | 468 |
12 Months or Greater, Unrealized Loss | -34 | -20 |
Total Fair Value | 4,110 | 4,533 |
Total Unrealized Loss | -144 | -187 |
Asset-backed securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 0 | 643 |
Less than 12 Months, Unrealized Loss | 0 | -2 |
12 Months or Greater, Fair Value | 90 | 0 |
12 Months or Greater, Unrealized Loss | -1 | 0 |
Total Fair Value | 90 | 643 |
Total Unrealized Loss | ($1) | ($2) |
Financial_Instruments_Fair_Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Assets: | ' | ' |
Derivative Assets | $84 | $232 |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | 18 | 4 |
Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | ' | 145 |
Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ' | ' |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | ' | 4 |
Level 2 | Foreign exchange contracts | Prepaid revenue share,expenses and other assets, current and non-current and assets held for sale | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | 84 | ' |
Level 2 | Foreign exchange contracts | Accrued expenses, and other current liabilities and liabilities held for sale | ' | ' |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | 18 | ' |
Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | ' | 87 |
Fair Value of Derivatives Designated as Hedging Instruments | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | 80 | 220 |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | 5 | ' |
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 | ' | 133 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ' | ' |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | ' | 0 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Prepaid revenue share,expenses and other assets, current and non-current and assets held for sale | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | 80 | ' |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses, and other current liabilities and liabilities held for sale | ' | ' |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | 5 | ' |
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 | ' | 87 |
Derivatives Not Designated as Hedging Instruments | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | 4 | 12 |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | 13 | ' |
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 | ' | 12 |
Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ' | ' |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | ' | 4 |
Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Prepaid revenue share,expenses and other assets, current and non-current and assets held for sale | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | 4 | ' |
Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses, and other current liabilities and liabilities held for sale | ' | ' |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | 13 | ' |
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 |
Financial_Instruments_Effect_o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | ($18) | $173 | ||
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | -63 | [1] | -51 | [1] |
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) | 13 | 163 | ||
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gains Reclassified from AOCI into Income (Effective Portion) | 8 | 35 | ||
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Interest and other income, net | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | -67 | [1] | -51 | [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) | -31 | 10 | ||
Derivatives in Cash Flow Hedging Relationship | Interest rate contracts | Interest and other income, net | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 4 | [1] | 0 | [1] |
Derivatives in Fair Value Hedging Relationship | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gains (Losses) Recognized in Income on Derivatives - Total | -2 | [2] | -1 | [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 | -2 | [2] | 37 | [2] |
Gains (Losses) Recognized in Income on Derivatives - Hedged item | 0 | [2] | -38 | [2] |
Derivatives Not Designated as Hedging Instruments | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gains (Losses) Recognized in Income on Derivatives | -36 | 87 | ||
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Interest and other income, net, and net loss from discontinued operations | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Gains (Losses) Recognized in Income on Derivatives | -37 | 87 | ||
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 | $1 | $0 | ||
[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 $1 million and $2 million for the three months ended March 31, 2013 and 2014. |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
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 | $2 | $1 |
Financial_Instruments_Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivative Assets [Abstract] | ' | ' | ||
Derivatives - Gross Amounts of Recognized Assets | $84 | $232 | ||
Derivatives - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Derivatives - Net Presented in the Consolidated Balance Sheets | 84 | 232 | ||
Derivatives - Financial Instruments | -5 | [1] | -2 | [1] |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | -7 | -35 | ||
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | -9 | -52 | ||
Derivatives - Net Assets Exposed | 63 | 143 | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ' | ' | ||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | 2,153 | 1,370 | ||
Reverse repurchase agreements - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Reverse repurchase agreements - Net Presented in the Consolidated Balance Sheets | 2,153 | [2] | 1,370 | [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 | -2,153 | -1,370 | ||
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 | 2,237 | 1,602 | ||
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Total - Net Presented in the Consolidated Balance Sheets | 2,237 | 1,602 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -5 | -2 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | -7 | -35 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | -2,162 | -1,422 | ||
Total - Net Assets Exposed | 63 | 143 | ||
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Derivatives - Gross Amounts of Recognized Liabilities | 18 | 4 | ||
Derivatives - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Derivatives - Net Presented in the Consolidated Balance Sheets | 18 | 4 | ||
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -5 | [3] | -2 | [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 | 13 | 2 | ||
Offsetting Securities Loaned [Abstract] | ' | ' | ||
Securities lending agreements - Gross Amounts of Recognized Liabilities | 2,153 | 1,374 | ||
Securities lending agreements - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Securities lending agreements - Net Presented in the Consolidated Balance Sheets | 2,153 | 1,374 | ||
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 | -2,124 | -1,357 | ||
Securities lending agreements - Net Liabilities | 29 | 17 | ||
Offsetting Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned [Abstract] | ' | ' | ||
Total - Gross Amounts of Recognized Liabilities | 2,171 | 1,378 | ||
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Total - Net Presented in the Consolidated Balance Sheets | 2,171 | 1,378 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -5 | -2 | ||
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 | -2,124 | -1,357 | ||
Total - Net Liabilities | 42 | 19 | ||
Cash and cash equivalents | ' | ' | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ' | ' | ||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | 2,103 | 1,270 | ||
Receivable under reverse repurchase agreements | ' | ' | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ' | ' | ||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | $50 | $100 | ||
[1] | The balances at December 31, 2013 and March 31, 2014 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, 2013 and March 31, 2014 included $1,270 million and $2,103 million recorded in cash and cash equivalents, respectively, and $100 million and $50 million recorded in receivable under reverse repurchase agreements, respectively. | |||
[3] | The balances at December 31, 2013 and March 31, 2014 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Financial_Instruments_Addition
Financial Instruments (Additional Information) (Details) (USD $) | 3 Months Ended | 3 Months Ended | |||||||||||||
Share data in Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
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 | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Motorola Home business | |||||
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 | Foreign exchange contracts | Foreign exchange contracts | ||||||||
Financial Instruments and Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of Arris shares received in divestiture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $175,000,000 |
Number of shares of Arris' common stock received as part of sale consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.6 |
Gross realized gains on the sale of our marketable securities | 98,000,000 | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross realized losses on the sale of our marketable securities | 24,000,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash collateral received from derivative financial instruments | 7,000,000 | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward-starting interest swaps, notional amount | ' | ' | ' | ' | 75,000,000 | 13,000,000 | 7,900,000,000 | 10,000,000,000 | ' | 1,400,000,000 | 1,200,000,000 | 1,000,000,000 | 7,500,000,000 | 9,400,000,000 | ' |
Foreign exchange option contracts, maximum maturities (in months) | ' | ' | ' | ' | ' | ' | ' | ' | '36 months | ' | ' | ' | ' | ' | ' |
Forward-starting interest swaps, anticipated debt issuance amount | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective portion of our cash flow hedges before tax effect | 68,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flow hedges, expected to be reclassified from AOCI to revenues within the next 12 months | $17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_LongTerm_Debt_Details
Debt (Long-Term Debt) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Capital Lease Obligation | $9 | $9 |
Total | 1,009 | 1,009 |
Unamortized discount for the Notes above | -9 | -10 |
Subtotal | 2,991 | 1,990 |
Capital Lease Obligation | 243 | 246 |
Total | 3,234 | 2,236 |
1.25% Notes due on May 19, 2014 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short-Term Portion of Long-Term Debt | 1,000 | 1,000 |
2.125% Notes due on May 19, 2016 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term Debt | 1,000 | 1,000 |
3.625% Notes due on May 19, 2021 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term Debt | 1,000 | 1,000 |
3.375% Notes due on February 25, 2024 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-Term Debt | $1,000 | $0 |
Debt_LongTerm_Debt_Parenthetic
Debt (Long-Term Debt - Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
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 |
3.375% Notes due on February 25, 2024 | ' |
Debt Instrument [Line Items] | ' |
Long-term debt, interest rate | 3.38% |
Long-term debt, maturity date | 25-Feb-24 |
Debt_Additional_Information_De
Debt (Additional Information) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | 31-May-11 | Mar. 31, 2014 |
1.25% Notes due on May 19, 2014 | 2.125% Notes due on May 19, 2016 | 3.625% Notes due on May 19, 2021 | 3.375% Notes due on February 25, 2024 | Unsecured debt | 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 | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average yield for commercial paper outstanding | 0.10% | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding amount under the Credit Facility | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 3,000,000,000 | ' |
Number of unsecured senior notes tranches | ' | ' | ' | ' | ' | ' | ' | 3 | ' |
Effective interest rate | ' | ' | 1.26% | 2.24% | 3.73% | 3.38% | ' | ' | ' |
Estimated fair value of long-term debt | $4,100,000,000 | $3,100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Balance_Sheet_Components_Inven
Balance Sheet Components (Inventories) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Balance Sheet Components Disclosure [Abstract] | ' | ' |
Raw materials and work in process | $2 | $115 |
Finished goods | 335 | 311 |
Inventories | $337 | $426 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Information technology assets | $9,408 | $9,094 |
Land and buildings | 8,776 | 7,488 |
Construction in progress | 5,878 | 5,602 |
Leasehold improvements | 1,578 | 1,576 |
Furniture and fixtures | 79 | 77 |
Total | 25,719 | 23,837 |
Less: accumulated depreciation and amortization | 7,842 | 7,313 |
Property and equipment, net | 17,877 | 16,524 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Beginning balance | $125 | $538 |
Other comprehensive income (loss) before reclassifications | 292 | -114 |
Amounts reclassified from AOCI | -72 | -68 |
Other comprehensive income (loss) | 220 | -182 |
Ending balance | 345 | 356 |
Foreign Currency Translation Adjustments | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Beginning balance | 16 | -73 |
Other comprehensive income (loss) before reclassifications | 65 | -168 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | 65 | -168 |
Ending balance | 81 | -241 |
Unrealized Gains (Losses) on Available-for-Sale Investments | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Beginning balance | 50 | 604 |
Other comprehensive income (loss) before reclassifications | 217 | -55 |
Amounts reclassified from AOCI | -67 | -46 |
Other comprehensive income (loss) | 150 | -101 |
Ending balance | 200 | 503 |
Unrealized Gains on Cash Flow Hedges | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' |
Beginning balance | 59 | 7 |
Other comprehensive income (loss) before reclassifications | 10 | 109 |
Amounts reclassified from AOCI | -5 | -22 |
Other comprehensive income (loss) | 5 | 87 |
Ending balance | $64 | $94 |
Balance_Sheet_Components_Effec
Balance Sheet Components (Effects on Net Income of Amounts Reclassified from AOCI) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Interest and other income, net | $357 | $134 |
Provision for income taxes | -822 | -354 |
Revenue | 15,420 | 12,951 |
Net income | 3,452 | 3,346 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | ' | ' |
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Net income | 72 | 68 |
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | Unrealized gains on available-for-sale investments | ' | ' |
Reclassification Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Interest and other income, net | 74 | 60 |
Provision for income taxes | -7 | -14 |
Net income | 67 | 46 |
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] | ' | ' |
Provision for income taxes | -3 | -13 |
Revenue | 8 | 35 |
Net income | $5 | $22 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Nest Labs | Nest Labs | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | ||||
Patents and developed technology | Customer relationships | Trade names and other | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest prior to transaction | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' |
Acquisition purchase price | ' | ' | ' | $2,500,000,000 | ' | ' | ' | ' | ' |
Equity interest in acquiree, fair Value | ' | ' | ' | 152,000,000 | ' | ' | ' | ' | ' |
Cash acquired from acquisition | ' | ' | ' | 51,000,000 | ' | 50,000,000 | ' | ' | ' |
Intangible assets | ' | ' | ' | 430,000,000 | ' | 33,000,000 | ' | ' | ' |
Goodwill | 14,177,000,000 | ' | 11,492,000,000 | 2,350,000,000 | ' | 404,000,000 | ' | ' | ' |
Net liabilities assumed | ' | ' | ' | 157,000,000 | ' | 4,000,000 | ' | ' | ' |
Gain resulting from remeasurement | 103,000,000 | 0 | ' | ' | 103,000,000 | ' | ' | ' | ' |
Total cash consideration | ' | ' | ' | ' | ' | $483,000,000 | ' | ' | ' |
Acquired intangible assets, weighted-average useful life | ' | ' | ' | ' | ' | ' | '5 years 8 months 12 days | '5 years | '7 years 10 months 27 days |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Goodwill [Roll Forward] | ' |
Balance as of December 31, 2013 | $11,492 |
Goodwill acquired | 2,754 |
Goodwill reclassified to assets held for sale | -71 |
Goodwill adjustment | 2 |
Balance as of March 31, 2014 | $14,177 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | $8,855 | ' | $9,586 |
Accumulated Amortization | 3,538 | ' | 3,520 |
Net Carrying Value | 5,317 | ' | 6,066 |
Amortization of acquisition-related intangible assets | 270 | 315 | ' |
Patents and developed technology | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 6,825 | ' | 7,282 |
Accumulated Amortization | 2,158 | ' | 2,102 |
Net Carrying Value | 4,667 | ' | 5,180 |
Customer relationships | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 1,390 | ' | 1,770 |
Accumulated Amortization | 1,033 | ' | 1,067 |
Net Carrying Value | 357 | ' | 703 |
Trade names and other | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 640 | ' | 534 |
Accumulated Amortization | 347 | ' | 351 |
Net Carrying Value | 293 | ' | 183 |
Acquisition-related intangible assets | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of acquisition-related intangible assets | $270 | $279 | ' |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
Remainder of 2014 | $758 |
2015 | 859 |
2016 | 772 |
2017 | 705 |
2018 | 653 |
Thereafter | 1,570 |
Total expected amortization expense relating to acquisition-related intangible assets | $5,317 |
Discontinued_Operations_Revenu
Discontinued Operations (Revenues and Earnings Attributable to Motorola Home Business) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Net income from discontinued operations | ($198) | ($182) |
Motorola Mobile | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Revenues | 1,377 | 1,018 |
Income from discontinued operations before income taxes | -274 | -271 |
Provision for income taxes | 76 | 67 |
Net income from discontinued operations | -198 | -204 |
Motorola Home business | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Revenues | ' | 738 |
Income from discontinued operations before income taxes | ' | 47 |
Provision for income taxes | ' | -25 |
Net income from discontinued operations | ' | $22 |
Discontinued_Operations_Aggreg
Discontinued Operations (Aggregate Carrying Amounts of the Major Classes of Assets and Liabilities Divested) (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $160 | $0 |
Goodwill | 71 | ' |
Motorola Mobile | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 160 | ' |
Accounts receivable | 881 | ' |
Inventories | 85 | ' |
Prepaid expenses and other current assets | 956 | ' |
Prepaid expenses and other assets, non-current | 270 | ' |
Property and equipment, net | 503 | ' |
Intangible assets, net | 947 | ' |
Goodwill | 71 | ' |
Total assets | 3,873 | ' |
Liabilities: | ' | ' |
Accounts payable | 1,039 | ' |
Accrued compensation and benefits | 137 | ' |
Accrued expenses and other current liabilities | 450 | ' |
Deferred revenue | 154 | ' |
Other long-term liabilities | 248 | ' |
Total liabilities | $2,028 | ' |
Discontinued_Operations_Additi
Discontinued Operations (Additional Information) (Details) (Motorola Mobile, USD $) | 0 Months Ended |
Share data in Millions, unless otherwise specified | Jan. 29, 2014 |
Motorola Mobile | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Sale consideration | $2,900,000,000 |
Consideration received in connection with divestiture at transaction close date | 1,400,000,000 |
Cash to be received from divestiture of business | 660,000,000 |
Shares received in connection with divestiture, amount | 750 |
Promissory note received in connection with divestiture | $1,500,000,000 |
Promissory note received in connection with divestiture, term | '3 years |
Restructuring_Charges_Summary_
Restructuring Charges (Summary of Activities Related to Restructuring Charges) (Details) (USD $) | 3 Months Ended | 23 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Severance and Related | Other Charges | Motorola Mobile | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Cumulative restructuring charges | ' | ' | ' | $824 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Balance as of December 31, 2013 | 57 | 45 | 12 | ' |
Charges | 3 | 5 | -2 | ' |
Cash payments | -19 | -17 | -2 | ' |
Balance as of March 31, 2014 | $41 | $33 | $8 | ' |
Restructuring_Charges_Total_Re
Restructuring Charges (Total Restructuring Charges Included in Costs and Expenses) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Total restructuring charges | $3 | ' |
Net income from discontinued operations | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Total restructuring charges | $3 | $63 |
Interest_and_Other_Income_Net_1
Interest and Other Income, Net (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Other Income and Expenses [Abstract] | ' | ' |
Interest income | $168 | $180 |
Interest expense | -24 | -21 |
Realized gains on available-for-sale investments, net | 74 | 60 |
Foreign currency exchange losses, net | -109 | -61 |
Realized gain on equity interest | 103 | 0 |
Realized gain on non-marketable equity investments | 117 | 0 |
Other income (expense), net | 28 | -24 |
Interest and other income, net | $357 | $134 |
Stockholders_Equity_WeightedAv
Stockholders' Equity (Weighted-Average Assumptions Used to Estimate Fair Values of Stock Options Granted) (Details) (Stock options, USD $) | 3 Months Ended |
Mar. 31, 2013 | |
Stock options | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Risk-free interest rate | 0.90% |
Expected volatility | 29.00% |
Expected life (in years) | '5 years 9 months 18 days |
Dividend yield | 0.00% |
Weighted-average estimated fair value of options granted during the period (in dollars per share) | $107.20 |
Stockholders_Equity_Stock_Opti
Stockholders' Equity (Stock Option Activity) (Details) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Options Outstanding - Number of Shares | ' | ' | |
Balance as of December 31, 2013 (in shares) | 10,065,726 | ' | |
Granted | 0 | 3,142 | |
Exercised | -1,301,382 | ' | |
Forfeited/canceled | -15,686 | ' | |
Balance as of March 31, 2014 (in shares) | 8,748,658 | ' | |
Exercisable as of March 31, 2014 (in shares) | 6,570,910 | ' | |
Vested and exercisable as of March 31, 2014 and expected to vest thereafter (in shares) | 8,480,795 | [1] | ' |
Options Outstanding - Weighted-Average Exercise Price | ' | ' | |
Balance as of December 31, 2013 (in dollars per share) | $215.50 | ' | |
Granted (in dollars per share) | $0 | ' | |
Exercised (in dollars per share) | $205.35 | ' | |
Forfeited/canceled (in dollars per share) | $280.01 | ' | |
Balance as of March 31, 2014 (in dollars per share) | $217.04 | ' | |
Exercisable as of March 31, 2014 (in dollars per share) | $190.39 | ' | |
Vested and exercisable as of March 31, 2014 and expected to vest thereafter (in dollars per share) | $214.50 | [1] | ' |
Options Outstanding - Weighted-Average Remaining Contractual Term | ' | ' | |
Balance as of March 31, 2014 | '5 years 1 month 13 days | ' | |
Exercisable as of March 31, 2014 | '4 years 4 months 10 days | ' | |
Exercisable as of March 31, 2014 and expected to vest thereafter | '5 years 1 month 13 days | [1] | ' |
Options Outstanding - Average Intrinsic Value | ' | ' | |
Balance as of March 31, 2014 | $2,977 | [2] | ' |
Exercisable as of March 31, 2014 | 2,411 | [2] | ' |
Exercisable as of March 31, 2014 and expected to vest thereafter | $2,907 | [1],[2] | ' |
[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 split adjusted closing stock price of $557.26 for our ClassB A common stock on March 31, 2014 |
Stockholders_Equity_Unvested_R
Stockholders' Equity (Unvested Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs), USD $) | 3 Months Ended | |
Mar. 31, 2014 | ||
Restricted Stock Units (RSUs) | ' | |
Unvested restricted stock units - number of shares | ' | |
Unvested as of December 31, 2013 (in shares) | 21,953,960 | |
Granted (in shares) | 1,905,174 | |
Vested (in shares) | -2,436,424 | |
Forfeited/canceled (in shares) | -219,832 | |
Unvested as of March 31, 2014 (in shares) | 21,202,878 | |
Expected to vest after March 31, 2014 (in shares) | 18,594,924 | [1] |
Unvested restricted stock units - weighted-average grant-date fair value | ' | |
Unvested as of December 31, 2013 (in dollars per share) | $359.20 | |
Granted (in dollars per share) | $594.91 | |
Vested (in dollars per share) | $325.73 | |
Forfeited/canceled (in dollars per share) | $352.58 | |
Unvested as of March 31, 2014 (in dollars per share) | $384.31 | |
Expected to vest after March 31, 2014 (in dollars per share) | $384.31 | [1] |
[1] | RSUs expected to vest reflect an estimated forfeiture rate. |
Stockholders_Equity_Additional
Stockholders' Equity (Additional Information) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 21, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 21, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 21, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 02, 2014 |
In Millions, except Share data, unless otherwise specified | 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 | Class C Capital Stock | Class C Capital Stock | Class C Capital Stock | Stock options | Restricted Stock Units (RSUs) | Subsequent Event | ||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split, conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Split adjusted closing stock price (in dollars per share) | $557.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $154 | $6,300 | ' |
Unrecognized compensation cost related to stock awards, weighted-average period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 8 months 23 days | '2 years 9 months 26 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 | 15,000,000,000 | 15,000,000,000 | 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 | ' | ' | ' | ' | ' | ' |
Capital stock, par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | $0.00 | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Total unrecognized tax benefits | $2,764 | $2,571 |
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate | $2,557 | $2,378 |
Information_about_Segments_and2
Information about Segments and Geographic Areas (Revenues by Geographic Area) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Revenues | $15,420 | $12,951 |
United States | ' | ' |
Revenues: | ' | ' |
Revenues | 6,656 | 5,836 |
United Kingdom | ' | ' |
Revenues: | ' | ' |
Revenues | 1,583 | 1,387 |
Rest of the world | ' | ' |
Revenues: | ' | ' |
Revenues | $7,181 | $5,728 |
Information_about_Segments_and3
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long-lived assets: | ' | ' |
Long-lived assets | $41,212 | $38,034 |
United States | ' | ' |
Long-lived assets: | ' | ' |
Long-lived assets | 27,159 | 24,004 |
International | ' | ' |
Long-lived assets: | ' | ' |
Long-lived assets | $14,053 | $14,030 |