Company: GOOGL
Filing Date: 2025-04-25
Form Type: 10-Q
Source: 0001652044-25-000043
Chunk: 93

Company: Alphabet Inc.
Filing Date: 2025-04-25
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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 points from the assessment of hedge effectiveness and recognize changes in the excluded component in OI&E.Other DerivativesWe enter into foreign currency forward and option contracts that are not designated as hedging instruments to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. Gains and losses on these derivatives that are not designated as accounting hedges are primarily recorded in OI&E along with the foreign currency gains and losses on monetary assets and liabilities.We also use derivatives not designated as hedging instruments to manage risks relating to interest rates, commodity prices, and credit exposures, and to enhance investment returns. From time to time, we enter into derivatives to hedge the market price risk on certain of our marketable equity securities. Gains and losses arising from other derivatives are primarily reflected within the “other” component of OI&E. See Note 7 for further details.

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The gross notional amounts of outstanding derivative instruments were as follows (in millions):As of December 31, 2024As ofMarch 31, 2025Derivatives designated as hedging instruments:Foreign exchange contractsCash flow hedges  $20,315 $20,624 Fair value hedges$1,562 $0 Net investment hedges$6,986 $6,695 Derivatives not designated as hedging instruments:Foreign exchange contracts$44,227 $40,612 Other contracts$15,082 $12,549 The fair values of outstanding derivative instruments were as follows (in millions): As of December 31, 2024As of March 31, 2025  Assets(1)Liabilities(2)Assets(1)Liabilities(2)Derivatives designated as hedging instruments:Foreign exchange contracts$1,054 $0 $236 $370 Derivatives not designated as hedging instruments:Foreign exchange contracts200593320110Other contracts474191429Total derivatives not designated as hedging instruments674 612 462 119 Total$1,728 $612 $698 $489 (1)    Derivative assets are recorded as other current and non-current assets in the Consolidated Balance Sheets.(2)    Derivative liabilities are recorded as accrued expenses and other liabilities, current and non-current in the Consolidated Balance Sheets.The gains (losses) on derivatives in cash flow hedging and net investment hedging relationships recognized in other comprehensive