Google 2011 Annual Report Download - page 97

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The fair values of our outstanding derivative instruments were as follows (in millions):
Balance Sheet Location
Fair Value of Derivative Instruments
As of December 31,
2010 As of December 31,
2011
Derivative Assets
Derivatives designated as hedging instruments:
Foreign exchange contracts ................. Prepaid revenue
share, expenses and
other assets, current
and non-current $342 $333
Derivatives not designated as hedging instruments:
Foreign exchange contracts ................. Prepaid revenue
share, expenses and
other assets, current 0 4
Total .......................................... $342 $337
Derivative Liabilities
Derivatives designated as hedging instruments:
Foreign exchange contracts ................. Accrued expenses
and other current
liabilities $ 5 $ 5
Derivatives not designated as hedging instruments:
Foreign exchange contracts ................. Accrued expenses
and other current
liabilities 3 1
Total .......................................... $ 8 $ 6
The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive
income is summarized below (in millions):
Increase (Decrease) in Gains Recognized in AOCI
on Derivatives Before Tax Effect (Effective Portion)
Year Ended December 31,
Derivatives in Cash Flow Hedging Relationship 2009 2010 2011
Foreign exchange contracts .................................. $(14) $331 $54
Gains Reclassified from AOCI into Income (Effective Portion)
Year Ended December 31,
Derivatives in Cash Flow Hedging Relationship Location 2009 2010 2011
Foreign exchange contracts .......................... Revenues $325 $203 $43
Gains (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 2009 2010 2011
Foreign exchange contracts ....................... Interest and
other income, net $(268) $(320) $(323)
1Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented.
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