Company: GOOGL
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001652044-25-000091
Chunk: 38

Company: Alphabet Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 net gains (losses) on the securities sold during the period. Cumulative net gains (losses) are calculated as the difference between the sale price and the initial purchase price for the equity security sold during the period.Three Months EndedNine Months EndedSeptember 30,September 30, 2024202520242025Total sale price$540 $555 $2,213 $1,623 Total initial cost577 453 1,541 1,317 Cumulative net gains (losses)$(37)$102 $672 $306 Equity Securities Accounted for Under the Equity MethodAs of December 31, 2024 and September 30, 2025, equity securities accounted for under the equity method had a carrying value of approximately $2.0 billion and $2.3 billion, respectively. Our share of gains and losses, including impairments, are included as a component of OI&E, in the Consolidated Statements of Income. See Note 7 for further details on OI&E. Certain of our equity method securities include our investments in VIEs where we are not the primary beneficiary. See Note 5 for further details on VIEs.

Convertible Notes

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Table of ContentsAlphabet Inc.

As of December 31, 2024 and September 30, 2025, we had investments in convertible notes of $2.9 billion and $1.3 billion, respectively. During the nine months ended September 30, 2025, we made additional investments in convertible notes totaling $1.1 billion and converted $3.0 billion of our convertible notes into equity securities, which included gains from conversion of $418 million. These gains were recognized in OI&E within the Consolidated Statement of Income. See Note 7 for further details on OI&E. 

Derivative Financial InstrumentsWe primarily use derivative instruments to manage risks relating to our ongoing business operations. The primary risk managed is foreign exchange risk. We use foreign currency contracts to reduce the risk that our cash flows, earnings, and investment in foreign subsidiaries will be adversely affected by foreign currency exchange rate fluctuations. We also enter into derivative instruments to partially offset our exposure to other risks and enhance investment returns.We recognize derivative instruments in the Consolidated Balance Sheets at fair value and classify the derivatives primarily within Level 2 in the fair value hierarchy. We present our collar contracts (an option strategy comprised of a combination of purchased and written options) at net fair values and