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Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2014 (in millions):

 
 
As of December 31, 2013
 
 
Adjusted
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Marketable
Securities
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 June 30, 2014
 
 
Adjusted
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Cash and
Cash
Equivalents
 
Marketable
Securities
 
(unaudited)
Cash
 
$
10,087

 
$
0

 
$
0

 
$
10,087

 
$
10,087

 
$
0

Level 1:
 
 
 
 
 
 
 
 
 
 
 
 
Money market and other funds
 
3,024

 
0

 
0

 
3,024

 
3,024

 
0

U.S. government notes
 
13,668

 
38

 
(9
)
 
13,697

 
252

 
13,445

Marketable equity securities
 
186

 
210

 
0

 
396

 
0

 
396

 
 
16,878

 
248

 
(9
)
 
17,117

 
3,276

 
13,841

Level 2:
 
 
 
 
 
 
 
 
 
 
 
 
Time deposits(1)
 
4,168

 
0

 
0

 
4,168

 
3,218

 
950

Money market and other funds(2)
 
2,889

 
0

 
0

 
2,889

 
2,889

 
0

Fixed-income bond funds(3)
 
150

 
1

 
0

 
151

 
0

 
151

U.S. government agencies
 
5,560

 
4

 
(1
)
 
5,563

 
150

 
5,413

Foreign government bonds
 
1,681

 
16

 
(8
)
 
1,689

 
0

 
1,689

Municipal securities
 
3,057

 
26

 
(7
)
 
3,076

 
0

 
3,076

Corporate debt securities
 
7,783

 
219

 
(13
)
 
7,989

 
0

 
7,989

Agency residential mortgage-backed securities
 
6,733

 
82

 
(76
)
 
6,739

 
0

 
6,739

Asset-backed securities
 
1,736

 
1

 
(1
)
 
1,736

 
0

 
1,736

 
 
33,757

 
349

 
(106
)
 
34,000

 
6,257

 
27,743

Total
 
$
60,722

 
$
597

 
$
(115
)
 
$
61,204

 
$
19,620

 
$
41,584


(1) 
The majority of our time deposits are foreign deposits.

(2) 
The balances at December 31, 2013 and June 30, 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.

(3) 
Fixed-income bond funds consist of mutual funds that primarily invest in corporate and government bonds.
Investments Classified by Contractual Maturity Date
The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions):
 
As of June 30, 2014
 
(unaudited)
Due in 1 year
$
11,039

Due in 1 year through 5 years
17,029

Due in 5 years through 10 years
6,044

Due after 10 years
6,925

Total
$
41,037
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 June 30, 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
Loss
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
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 June 30, 2014
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
 
Fair Value
 
Unrealized
Loss
 
 
 
 
 
 
(unaudited)
 
 
 
 
U.S. government notes
 
$
0

 
$
0

 
$
438

 
$
(9
)
 
$
438

 
$
(9
)
U.S. government agencies
 
474

 
(1
)
 
0

 
0

 
474

 
(1
)
Foreign government bonds
 
369

 
(4
)
 
162

 
(4
)
 
531

 
(8
)
Municipal securities
 
0

 
0

 
352

 
(7
)
 
352

 
(7
)
Corporate debt securities
 
675

 
(5
)
 
352

 
(8
)
 
1,027

 
(13
)
Agency residential mortgage-backed securities
 
0

 
0

 
2,730

 
(76
)
 
2,730

 
(76
)
Asset-backed securities
 
0

 
0

 
196

 
(1
)
 
196

 
(1
)
Total
 
$
1,518

 
$
(10
)
 
$
4,230

 
$
(105
)
 
$
5,748

 
$
(115
)
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
Derivatives
Designated as
Hedging Instruments
 
Fair Value of
Derivatives Not
Designated as
Hedging Instruments
 
Total Fair
Value
Derivative Assets:
 
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
Prepaid revenue share, expenses and other assets, current and non-current
 
$
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

 
 
 
 
$
0

 
$
4

 
$
4


 
 
 
 
As of June 30, 2014
  
 
Balance Sheet Location
 
Fair Value of
Derivatives
Designated as
Hedging Instruments
 
Fair Value of
Derivatives Not
Designated as
Hedging Instruments
 
Total Fair
Value
 
 
 
 
(unaudited)
Derivative Assets:
 
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
Prepaid revenue share, expenses and other assets, current and non-current and assets held for sale
 
$
91

 
$
0

 
$
91

Total
 
 
 
$
91

 
$
0

 
$
91

Derivative Liabilities:
 
 
 
 
 
 
 
 
Level 2:
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
Accrued expenses, and other current liabilities and liabilities held for sale
 
$
10

 
$
1

 
$
11

Total
 
 
 
$
10

 
$
1

 
$
11
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 June 30,
 
Six Months Ended June 30,
Derivatives in Cash Flow Hedging Relationship
2013
 
2014
 
2013
 
2014
 
(unaudited)
Foreign exchange contracts
$
(33
)
 
$
9

 
$
130

 
$
22

Interest rate contracts
58

 
0

 
68

 
(31
)
Total
$
25

 
$
9

 
$
198

 
$
(9
)
 
 
Gains Reclassified from AOCI into Income (Effective Portion)
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Derivatives in Cash Flow Hedging Relationship
Income Statement Location
 
2013
 
2014
 
2013
 
2014
 
 
 
(unaudited)
Foreign exchange contracts
Revenues
 
$
35

 
$
6

 
$
70

 
$
14

Interest rate contracts
Interest and other income,net
 
0

 
1

 
0

 
1

Total
 
 
$
35

 
$
7

 
$
70

 
$
15

 
 
Gains (Losses) Recognized in Income on Derivatives (Amount
Excluded from  Effectiveness Testing and Ineffective Portion) (1)
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Derivatives in Cash Flow Hedging Relationship
Income Statement Location
 
2013
 
2014
 
2013
 
2014
 
 
 
(unaudited)
Foreign exchange contracts
Interest and
other income, net
 
$
(38
)
 
$
(67
)
 
$
(89
)
 
$
(134
)
Interest rate contracts
Interest and other income, net
 
0

 
0

 
0

 
4

Total
 
 
$
(38
)
 
$
(67
)
 
$
(89
)
 
$
(130
)
 
(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 June 30,
 
Six Months Ended June 30,
Derivatives in Fair Value Hedging Relationship
Income Statement Location
 
2013
 
2014
 
2013
 
2014
 
 
 
(unaudited)
Foreign exchange contracts
Interest and
other income, net
 
$
25

 
$
(19
)
 
$
62

 
$
(21
)
Hedged item
Interest and
other income, net
 
(27
)
 
17

 
(65
)
 
17

Total
 
 
$
(2
)
 
$
(2
)
 
$
(3
)
 
$
(4
)
 
(2) 
Losses related to the amount excluded from effectiveness testing of the hedges were $2 million and $3 million for the three and six months ended June 30, 2013 and $2 million and $4 million for the three and six months ended June 30, 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 June 30,
 
Six Months Ended June 30,
Derivatives Not Designated As Hedging Instruments
Income Statement Location
 
2013
 
2014
 
2013
 
2014
 
 
 
(unaudited)
Foreign exchange contracts
Interest and
other income, net, and net income (loss) from discontinued operations
 
$
70

 
$
(76
)
 
$
157

 
$
(113
)
Interest rate contracts
Interest and
other income, net
 
0

 
(1
)
 
0

 
0

Total
 
 
$
70

 
$
(77
)
 
$
157

 
$
(113
)

 
Offsetting Assets
As of December 31, 2013 and June 30, 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 June 30, 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
 
$
91

 
$
0

 
$
91

 
$
(1
)
(1) 
$
(1
)
 
$
(16
)
 
$
73

Reverse repurchase agreements
 
2,989

 
0

 
2,989

(2) 
0

 
0

 
(2,989
)
 
0

Total
 
$
3,080

 
$
0

 
$
3,080

 
$
(1
)
 
$
(1
)
 
$
(3,005
)
 
$
73

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) The balances at December 31, 2013 and June 30, 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 June 30, 2014 included $1,270 million and $2,889 million recorded in cash and cash equivalents, respectively, and $100 million and $100 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 June 30, 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
 
$
11

 
$
0

 
$
11

 
$
(1
)
(3) 
$
0

 
$
0

 
$
10

Securities lending agreements
 
3,086

 
0

 
3,086

 
0

 
0

 
(3,040
)
 
46

Total
 
$
3,097

 
$
0

 
$
3,097

 
$
(1
)
 
$
0

 
$
(3,040
)
 
$
56


(3) The balances at December 31, 2013 and June 30, 2014 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements.