v2.4.0.6
Financial Instruments
|
12 Months Ended |
|
Financial Instruments |
Note 3. Financial
Instruments
Fair Value Measurements
We measure our cash equivalents,
marketable securities, and foreign currency and interest rate
derivative contracts at fair value. Fair value is an exit price,
representing the amount that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between
market participants. As such, fair value is a market-based
measurement that should be determined based on assumptions that
market participants would use in pricing an asset or a liability. A
three-tier fair value hierarchy is established as a basis for
considering such assumptions and for inputs used in the valuation
methodologies in measuring fair value:
Level 1—Observable inputs that
reflect quoted prices (unadjusted) for identical assets or
liabilities in active markets.
Level 2—Include other inputs
that are based upon quoted prices for similar instruments in active
markets, quoted prices for identical or similar instruments in
markets that are not active, and model-based valuation techniques
for which all significant inputs are observable in the market or
can be derived from observable market data. Where applicable, these
models project future cash flows and discount the future amounts to
a present value using market-based observable inputs including
interest rate curves, foreign exchange rates, and credit
ratings.
Level 3—Unobservable inputs
that are supported by little or no market
activities.
The fair value hierarchy also
requires an entity to maximize the use of observable inputs and
minimize the use of unobservable inputs when measuring fair
value.
Based on the fair value hierarchy, we
classify our cash equivalents and marketable securities within
Level 1 or Level 2. This is because we value our cash equivalents
and marketable securities using quoted market prices or alternative
pricing sources and models utilizing market observable inputs. We
classify our foreign currency and interest rate derivative
contracts primarily within Level 2 as the valuation inputs are
based on quoted prices and market observable data of similar
instruments.
Cash, Cash Equivalents and Marketable
Securities
The following tables summarize our
cash, cash equivalents and marketable securities measured at
adjusted cost, gross unrealized gains, gross unrealized losses and
fair value by significant investment categories as of
December 31, 2011 and December 31, 2012 (in
millions):
C:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2011 |
|
|
|
Adjusted
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
Cash and
Cash
Equivalents |
|
|
Marketable
Securities |
|
C: C:
Cash
|
|
$ |
4,712 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
4,712 |
|
|
$ |
4,712 |
|
|
$ |
0 |
|
Level 1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and other
funds
|
|
|
3,202 |
|
|
|
0 |
|
|
|
0 |
|
|
|
3,202 |
|
|
|
3,202 |
|
|
|
0 |
|
U.S. government notes
|
|
|
11,475 |
|
|
|
104 |
|
|
|
0 |
|
|
|
11,579 |
|
|
|
0 |
|
|
|
11,579 |
|
Marketable equity
securities
|
|
|
228 |
|
|
|
79 |
|
|
|
0 |
|
|
|
307 |
|
|
|
0 |
|
|
|
307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,905 |
|
|
|
183 |
|
|
|
0 |
|
|
|
15,088 |
|
|
|
3,202 |
|
|
|
11,886 |
|
Level 2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
1,029 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,029 |
|
|
|
534 |
|
|
|
495 |
|
Money market and other
funds(1)
|
|
|
1,260 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,260 |
|
|
|
1,260 |
|
|
|
0 |
|
U.S. government agencies
|
|
|
6,486 |
|
|
|
15 |
|
|
|
0 |
|
|
|
6,501 |
|
|
|
275 |
|
|
|
6,226 |
|
Foreign government bonds
|
|
|
1,608 |
|
|
|
32 |
|
|
|
(11 |
) |
|
|
1,629 |
|
|
|
0 |
|
|
|
1,629 |
|
Municipal securities
|
|
|
1,775 |
|
|
|
19 |
|
|
|
0 |
|
|
|
1,794 |
|
|
|
0 |
|
|
|
1,794 |
|
Corporate debt securities
|
|
|
6,023 |
|
|
|
187 |
|
|
|
(98 |
) |
|
|
6,112 |
|
|
|
0 |
|
|
|
6,112 |
|
Agency residential mortgage-backed
securities
|
|
|
6,359 |
|
|
|
147 |
|
|
|
(5 |
) |
|
|
6,501 |
|
|
|
0 |
|
|
|
6,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,540 |
|
|
|
400 |
|
|
|
(114 |
) |
|
|
24,826 |
|
|
|
2,069 |
|
|
|
22,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
44,157 |
|
|
$ |
583 |
|
|
$ |
(114 |
) |
|
$ |
44,626 |
|
|
$ |
9,983 |
|
|
$ |
34,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
C:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012 |
|
|
|
Adjusted
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
Cash and
Cash
Equivalents |
|
|
Marketable
Securities |
|
Cash
|
|
$ |
8,066 |
|
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
8,066 |
|
|
$ |
8,066 |
|
|
$ |
0 |
|
Level 1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and other
funds
|
|
|
5,221 |
|
|
|
0 |
|
|
|
0 |
|
|
|
5,221 |
|
|
|
5,221 |
|
|
|
0 |
|
U.S. government notes
|
|
|
10,853 |
|
|
|
77 |
|
|
|
(1 |
) |
|
|
10,929 |
|
|
|
0 |
|
|
|
10,929 |
|
Marketable equity
securities
|
|
|
12 |
|
|
|
88 |
|
|
|
0 |
|
|
|
100 |
|
|
|
0 |
|
|
|
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,086 |
|
|
|
165 |
|
|
|
(1 |
) |
|
|
16,250 |
|
|
|
5,221 |
|
|
|
11,029 |
|
Level 2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
|
984 |
|
|
|
0 |
|
|
|
0 |
|
|
|
984 |
|
|
|
562 |
|
|
|
422 |
|
Money market and other
funds(1)
|
|
|
929 |
|
|
|
0 |
|
|
|
0 |
|
|
|
929 |
|
|
|
929 |
|
|
|
0 |
|
U.S. government agencies
|
|
|
1,882 |
|
|
|
20 |
|
|
|
0 |
|
|
|
1,902 |
|
|
|
0 |
|
|
|
1,902 |
|
Foreign government bonds
|
|
|
1,996 |
|
|
|
81 |
|
|
|
(3 |
) |
|
|
2,074 |
|
|
|
0 |
|
|
|
2,074 |
|
Municipal securities
|
|
|
2,249 |
|
|
|
23 |
|
|
|
(6 |
) |
|
|
2,266 |
|
|
|
0 |
|
|
|
2,266 |
|
Corporate debt securities
|
|
|
7,200 |
|
|
|
414 |
|
|
|
(14 |
) |
|
|
7,600 |
|
|
|
0 |
|
|
|
7,600 |
|
Agency residential mortgage-backed
securities
|
|
|
7,039 |
|
|
|
136 |
|
|
|
(6 |
) |
|
|
7,169 |
|
|
|
0 |
|
|
|
7,169 |
|
Asset-backed securities
|
|
|
847 |
|
|
|
1 |
|
|
|
0 |
|
|
|
848 |
|
|
|
0 |
|
|
|
848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,126 |
|
|
|
675 |
|
|
|
(29 |
) |
|
|
23,772 |
|
|
|
1,491 |
|
|
|
22,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
47,278 |
|
|
$ |
840 |
|
|
$ |
(30 |
) |
|
$ |
48,088 |
|
|
$ |
14,778 |
|
|
$ |
33,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The
balances at December 31, 2011 and December 31, 2012 were
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 on
this program.
|
We determine realized gains or losses
on the sale of marketable securities on a specific identification
method. We recognized gross realized gains of $381 million and $383
million for the years ended December 31, 2011 and
December 31, 2012. We recognized gross realized losses of $127
million and $101 million for the years ended December 31, 2011
and December 31, 2012. In 2011, we also recorded an
other-than-temporary impairment charge of $88 million related to
our investment in Clearwire Corporation. We reflect these gains and
losses as a component of interest and other income, net, in our
accompanying Consolidated Statements of Income.
The following table summarizes the
estimated fair value of our investments in marketable securities,
excluding marketable equity securities, designated as
available-for-sale and classified by the contractual maturity date
of the securities (in millions):
|
|
|
|
|
|
|
As of
December 31,
2012 |
|
Due in 1 year
|
|
$ |
4,708 |
|
Due in 1 year through 5
years
|
|
|
12,310 |
|
Due in 5 years through 10
years
|
|
|
7,296 |
|
Due after 10 years
|
|
|
8,896 |
|
|
|
|
|
|
Total
|
|
$ |
33,210 |
|
|
|
|
|
|
The following tables present gross
unrealized losses and fair values for those investments that were
in an unrealized loss position as of December 31, 2011 and
December 31, 2012, 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, 2011 |
|
|
|
Less than 12 Months |
|
|
12 Months or Greater |
|
|
Total |
|
|
|
Fair Value |
|
|
Unrealized
Loss |
|
|
Fair Value |
|
|
Unrealized
Loss |
|
|
Fair Value |
|
|
Unrealized
Loss |
|
Foreign government bonds
|
|
$ |
302 |
|
|
$ |
(11 |
) |
|
$ |
6 |
|
|
$ |
0 |
|
|
$ |
308 |
|
|
$ |
(11 |
) |
Corporate debt securities
|
|
|
2,160 |
|
|
|
(97 |
) |
|
|
17 |
|
|
|
(1 |
) |
|
|
2,177 |
|
|
|
(98 |
) |
Agency residential mortgage-backed
securities
|
|
|
716 |
|
|
|
(3 |
) |
|
|
19 |
|
|
|
(2 |
) |
|
|
735 |
|
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
3,178 |
|
|
$ |
(111 |
) |
|
$ |
42 |
|
|
$ |
(3 |
) |
|
$ |
3,220 |
|
|
$ |
(114 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012 |
|
|
|
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
|
|
$ |
842 |
|
|
$ |
(1 |
) |
|
$ |
0 |
|
|
$ |
0 |
|
|
$ |
842 |
|
|
$ |
(1 |
) |
Foreign government bonds
|
|
|
509 |
|
|
|
(2 |
) |
|
|
12 |
|
|
|
(1 |
) |
|
|
521 |
|
|
|
(3 |
) |
Municipal securities
|
|
|
686 |
|
|
|
(6 |
) |
|
|
9 |
|
|
|
0 |
|
|
|
695 |
|
|
|
(6 |
) |
Corporate debt securities
|
|
|
820 |
|
|
|
(10 |
) |
|
|
81 |
|
|
|
(4 |
) |
|
|
901 |
|
|
|
(14 |
) |
Agency residential mortgage-backed
securities
|
|
|
1,300 |
|
|
|
(6 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
1,300 |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
4,157 |
|
|
$ |
(25 |
) |
|
$ |
102 |
|
|
$ |
(5 |
) |
|
$ |
4,259 |
|
|
$ |
(30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
secured by collateral in the form of cash or securities. Cash
collateral is invested in reverse repurchase agreements. We
classify loaned securities as cash equivalents or marketable
securities on the accompanying Consolidated Balance Sheets. We
record the cash collateral as an asset with a corresponding
liability. We classify reverse repurchase agreements maturing
within three months as cash equivalents and those longer than three
months as receivable under reverse repurchase agreements on the
accompanying Consolidated Balance Sheets. For lending agreements
collateralized by securities, we do not record an asset or
liability as we are not permitted to sell or repledge the
associated collateral.
Derivative Financial Instruments
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 designated for trading or speculative
purposes.
We enter into master netting
arrangements, which reduce credit risk by permitting net settlement
of transactions with the same company. To further reduce credit
risk, we enter into collateral security arrangements that provide
for collateral to be received when the net fair value of certain
financial instruments fluctuates from contractually established
thresholds. We present our derivative assets and derivative
liabilities at their gross fair values. At December 31, 2011
and December 31, 2012, we received cash collateral related to
the derivative instruments under our collateral security
arrangements of $113 million and $43 million, which are recorded as
accrued expenses and other current liabilities in the accompanying
Consolidated Balance Sheets.
We recognize derivative instruments
as either assets or liabilities on 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 to accumulated other comprehensive
income (AOCI) in the accompanying Consolidated Balance
Sheets.
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 $6.5 billion and
$9.5 billion as of December 31, 2011 and December 31,
2012. These foreign exchange contracts have maturities of 36 months
or less.
During the second quarter of 2012, we
began to hedge the variability of forecasted interest payments on
an anticipated debt issuance using forward-starting interest swaps.
The total notional amount of these forward-starting interest swaps
was $1.0 billion as of December 31, 2012 with terms calling
for us to receive interest at a variable rate and to pay interest
at a fixed rate. These forward-starting interest swaps effectively
fix the benchmark interest rate on an anticipated debt issuance of
$1.0 billion in 2014, and they will be terminated upon issuance of
the debt.
We initially report any gain or loss
on the effective portion of a cash flow hedge as a component of
AOCI and subsequently reclassify to revenues or interest expense
when the hedged transactions are recorded. If the hedged
transactions become probable of not occurring, the corresponding
amounts in AOCI would be reclassified to interest and other income,
net. Further, we exclude the change in the time value of the
options from our assessment of hedge effectiveness. We record the
premium paid or time value of an option on the date of purchase as
an asset. Thereafter, we recognize any change to this time value in
interest and other income, net.
As of December 31, 2012, the
effective portion of our cash flow hedges before tax effect was $11
million, $10 million of which is expected to be reclassified from
AOCI to revenues 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 and
recognize them in interest and other income, net. The notional
principal of these contracts was $1.0 billion and $1.1 billion as
of December 31, 2011 and December 31,
2012.
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 gains and losses of the related hedged items. The
notional principal of foreign exchange contracts outstanding was
$3.7 billion and $6.6 billion at December 31, 2011 and
December 31, 2012.
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 $100 million and $25 million at December 31,
2011 and December, 31, 2012.
The fair values of our outstanding
derivative instruments were as follows (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2011 |
|
|
|
|
|
|
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 |
|
$ |
333 |
|
|
$ |
4 |
|
|
$ |
337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
|
Accrued expenses and other current liabilities |
|
$ |
5 |
|
|
$ |
1 |
|
|
$ |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012 |
|
|
|
|
|
|
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 |
|
$ |
164 |
|
|
$ |
13 |
|
|
$ |
177 |
|
Interest rate contracts
|
|
Prepaid revenue share, expenses and other assets, current and
non-current |
|
|
1 |
|
|
|
0 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$ |
165 |
|
|
$ |
13 |
|
|
$ |
178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange contracts
|
|
Accrued expenses and other current liabilities |
|
$ |
3 |
|
|
$ |
4 |
|
|
$ |
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The effect of derivative instruments
in cash flow hedging relationships on income and other
comprehensive income is summarized below (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains Recognized in OCI
on Derivatives Before Tax Effect (Effective
Portion) |
|
|
|
Year Ended December 31, |
|
Derivatives in Cash Flow
Hedging Relationship
|
|
2010 |
|
|
2011 |
|
|
2012 |
|
Foreign exchange contracts
|
|
$ |
331 |
|
|
$ |
54 |
|
|
$ |
73 |
|
Interest rate contracts
|
|
|
0 |
|
|
|
0 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
331 |
|
|
$ |
54 |
|
|
$ |
74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains Reclassified from AOCI into Income (Effective Portion) |
|
|
|
|
|
Year Ended December 31, |
|
Derivatives in Cash Flow
Hedging Relationship
|
|
Location |
|
2010 |
|
|
2011 |
|
|
2012 |
|
Foreign exchange contracts
|
|
Revenues |
|
$ |
203 |
|
|
$ |
43 |
|
|
$ |
217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses Recognized in Income on Derivatives (Amount
Excluded from
Effectiveness Testing and Ineffective Portion)(1) |
|
|
|
|
|
Year Ended December 31, |
|
Derivatives in Cash Flow
Hedging Relationship
|
|
Location |
|
2010 |
|
|
2011 |
|
|
2012 |
|
Foreign exchange contracts
|
|
Interest and
other income, net |
|
$ |
(320 |
) |
|
$ |
(323 |
) |
|
$ |
(447 |
) |
(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) |
|
|
|
|
|
Year Ended December 31, |
|
Derivatives in Fair Value
Hedging Relationship
|
|
Location |
|
2010 |
|
|
2011 |
|
|
2012 |
|
Foreign exchange contracts
|
|
Interest and
other income, net |
|
$ |
(35 |
) |
|
$ |
(2 |
) |
|
$ |
(31 |
) |
Hedged item
|
|
Interest and
other income, net |
|
|
29 |
|
|
|
(12 |
) |
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$ |
(6 |
) |
|
$ |
(14 |
) |
|
$ |
(8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The effect of derivative instruments
not designated as hedging instruments on income is summarized below
(in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) Recognized in Income on Derivatives |
|
|
|
|
|
Year Ended December 31, |
|
Derivatives Not
Designated As Hedging Instruments
|
|
Location |
|
2010 |
|
|
2011 |
|
|
2012 |
|
Foreign exchange contracts
|
|
Interest and
other income, net |
|
$ |
(40 |
) |
|
$ |
29 |
|
|
$ |
(67 |
) |
Interest rate contracts
|
|
Interest and
other income, net |
|
|
0 |
|
|
|
(19 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$ |
(40 |
) |
|
$ |
10 |
|
|
$ |
(73 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X |
- Definition
The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures.
+ References+ Details
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Balance Type: |
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