Variable Interest Entities (VIEs) |
9 Months Ended |
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Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) Consolidated VIEs We consolidate VIEs in which we hold a variable interest and are the primary beneficiary. We are the primary beneficiary because we have the power to direct activities that most significantly affect their economic performance and have the obligation to absorb the majority of their losses or benefits. The results of operations and financial position of these VIEs are included in our consolidated financial statements. For certain consolidated VIEs, their assets are not available to us and their creditors do not have recourse to us. As of December 31, 2019 and September 30, 2020, assets that can only be used to settle obligations of these VIEs were $3.1 billion and $5.5 billion, respectively, and the liabilities for which creditors only have recourse to the VIEs were $1.2 billion and $2.3 billion, respectively. Total noncontrolling interests, including redeemable noncontrolling interests, in our consolidated subsidiaries increased from $1.2 billion to $3.7 billion from December 31, 2019 to September 30, 2020, primarily due to external investments in Waymo. Net loss attributable to noncontrolling interests was not material for any period presented. Waymo Waymo is a self-driving technology development company with a mission to make it safe and easy for people and things to get where they're going. In the first half of 2020, Waymo completed its externally led investment round, bringing the total funding to $3.2 billion, which includes investment from Alphabet. No gain or loss was recognized. The investments related to external parties were accounted for as equity transactions and resulted in recognition of noncontrolling interests. Unconsolidated VIEs Certain of our non-marketable investments, including certain renewable energy investments accounted for under the equity method and certain other investments in private companies, are VIEs. The renewable energy entities' activities involve power generation using renewable sources. Private companies that we invest in are primarily early stage companies. We have determined that the governance structures of these entities do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we do not consolidate these VIEs in our consolidated financial statements. Our maximum exposure to these unconsolidated VIEs is generally based on the current carrying value of the investments and any future funding commitments. The carrying value and maximum exposure of these unconsolidated VIEs were not material as of December 31, 2019 and September 30, 2020.
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