Company: GOOGL
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001652044-25-000091
Chunk: 109

Company: Alphabet Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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, 2024 and $7.8 billion carrying value of foreign currency-denominated debt designated as net investment hedges as of September 30, 2025.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, credit exposures, the market price of certain marketable equity securities, and to enhance investment returns. Additionally, we have credit derivative instruments resulting from agreements with third parties 

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to backstop certain obligations relating to data center leases. Gains and losses arising from other derivatives are primarily reflected within the “other” component of OI&E. See Note 7 for further details.The gross notional amounts of outstanding derivative instruments were as follows (in millions):As of December 31, 2024As ofSeptember 30, 2025Derivatives designated as hedging instruments:Foreign exchange and other contractsCash flow hedges$20,315 $28,624 Fair value hedges$1,562 $0 Net investment hedges$6,986 $12,413 Derivatives not designated as hedging instruments:Foreign exchange contracts$44,227 $47,208 Credit derivatives (1)$0 $6,529 Other contracts$15,082 $13,439 (1)    Notional amounts for credit derivatives are the backstop obligations related to certain third party data center leases and represent the maximum potential amount of future payments that could be required in the event of certain default scenarios, upon which we may receive equity in or cash payments from certain counterparties. See Note 5 for further details.The fair values of outstanding derivative instruments were as follows (in millions): As of December 31, 2024As of September 30, 2025  Assets(1)Liabilities(2)Assets(1)Liabilities(2)Derivatives designated as hedging instruments:Foreign exchange contracts$1,054 $0 $243 $361 Derivatives not designated as hedging instruments:Foreign exchange contracts2005931257Other contracts474