Balance Sheet Components

Property and Equipment

Property and equipment consisted of the following (in millions):



	As of December 31, 2014			As of March 31, 2015
				(unaudited)
Information technology assets	$	10,918		$	11,855
Land and buildings	13,326			13,479
Construction in progress	6,555			7,415
Leasehold improvements	1,868			2,016
Furniture and fixtures	79			78
Property and equipment, gross	32,746			34,843
Less: accumulated depreciation and amortization	(8,863		)	(9,395		)
Property and equipment, net	$	23,883		$	25,448

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, 2015.

Prepaid Revenue Share, Expenses and Other Assets, Non-Current

Note Receivable

In connection with the sale of our Motorola Mobile business on October 29, 2014 (see Note 8 for additional information), we received an interest-free, three-year prepayable promissory note (the "Note Receivable") due October 2017 from Lenovo. The Note Receivable is included in prepaid revenue share, expenses and other assets, non-current on our Consolidated Balance Sheets. Based on the general market conditions and the credit quality of Lenovo, we discounted the Note Receivable at an effective interest rate of 4.5% as shown in the table below (in millions):



	As of December 31, 2014			As of March 31, 2015
				(unaudited)
Principal of the Note Receivable	$	1,500		$	1,500
Less: unamortized discount for the Note Receivable	(175		)	(160		)
Total	$	1,325		$	1,340

As of December 31, 2014 and March 31, 2015, we did not recognize any valuation allowance on the Note Receivable.

Accumulated Other Comprehensive Income (Loss)

The components of AOCI, net of tax, were as follows (in millions, unaudited):



	Foreign Currency Translation Adjustments		Unrealized Gains (Losses) on Available-for-Sale Investments			Unrealized Gains on Cash Flow Hedges			Total
Balance as of December 31, 2013	$	16	$	50		$	59		$	125

Other comprehensive income before reclassifications	65		217			10			292
Amounts reclassified from AOCI	0		(67		)	(5		)	(72		)
Other comprehensive income	65		150			5			220
Balance as of March 31, 2014	$	81	$	200		$	64		$	345



	Foreign Currency Translation Adjustments			Unrealized Gains (Losses) on Available-for-Sale Investments			Unrealized Gains on Cash Flow Hedges			Total
Balance as of December 31, 2014	$	(980	)	$	421		$	586		$	27

Other comprehensive income (loss) before reclassifications	(923		)	221			562			(140		)
Amounts reclassified from AOCI	0			(27		)	(231		)	(258		)
Other comprehensive income (loss)	(923		)	194			331			(398		)
Balance as of March 31, 2015	$	(1,903	)	$	615		$	917		$	(371	)

The effects on net income of amounts reclassified from AOCI were as follows (in millions, unaudited):



		Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income
		Three Months Ended March 31,
AOCI Components	Location	2014			2015
Unrealized gains on available-for-sale investments
	Interest and other income, net	$	74		$	32
	Provision for income taxes	(7		)	(5		)
	Net of tax	$	67		$	27

Unrealized gains on cash flow hedges
Foreign exchange contracts	Revenue	$	8		$	311
Interest rate contracts	Interest and other income, net	0			1
	Provision for income taxes	(3		)	(81		)
	Net of tax	$	5		$	231

Total amount reclassified, net of tax		$	72		$	258