Company: GOOGL
Filing Date: 2025-02-05
Form Type: 10-K
Source: 0001652044-25-000014
Chunk: 43

Company: Alphabet Inc.
Filing Date: 2025-02-05
Form: 10-K
Item: Item 8
Chunk 43
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I&E, along with the offsetting gains and losses of the related hedged items. We exclude forward points from the assessment of hedge effectiveness and recognize changes in the excluded component in OI&E.Net Investment HedgesWe designate foreign currency forward contracts as net investment hedges to hedge the foreign currency risks related to our investment in foreign subsidiaries. Net investment hedge amounts included in the assessment of hedge effectiveness are recognized in AOCI along with the foreign currency translation adjustment. We exclude forward 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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Table of ContentsAlphabet Inc.

The gross notional amounts of outstanding derivative instruments were as follows (in millions):As of December 31,20232024Derivatives designated as hedging instruments:Foreign exchange contractsCash flow hedges  $18,039 $20,315 Fair value hedges$2,065 $1,562 Net investment hedges$9,472 $6,986 Derivatives not designated as hedging instruments:Foreign exchange contracts$39,722 $44,227 Other contracts$10,818 $15,082 The fair values of outstanding derivative instruments were as follows (in millions): As of December 31, 2023As of December 31, 2024 Assets(1)Liabilities(2)Assets(1)Liabilities(2)Derivatives designated as hedging instruments:     Foreign exchange contracts$205 $242 $1,054 $0 Derivatives not designated as hedging instruments:     Foreign exchange contracts134 156 200 593      Other contracts114