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Table of Contents Alphabet Inc. and Google Inc.
70
The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive
income (OCI) is summarized below (in millions):
Gains (Losses) Recognized in OCI
on Derivatives Before Tax Effect (Effective Portion)
Year Ended December 31,
Derivatives in Cash Flow Hedging
Relationship 2013 2014 2015
Foreign exchange contracts $ 92 $ 929 $ 964
Interest rate contracts 86 (31) 0
Total $ 178 $ 898 $ 964
Gains Reclassified from AOCI into Income (Effective Portion)
Year Ended December 31,
Derivatives in Cash Flow Hedging
Relationship Location 2013 2014 2015
Foreign exchange contracts Revenues $ 95 $ 171 $ 1,399
Interest rate contracts Other income
(expense), net 04 5
Total $ 95 $ 175 $ 1,404
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 2013 2014 2015
Foreign exchange contracts Other income
(expense), net $(280) $ (279) $ (297)
Interest rate contracts Other income
(expense), net 04 0
Total
$(280) $ (275) $ (297)
(1) Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented.
The effect of derivative instruments in fair value hedging relationships on income is summarized below (in millions):
Gains (Losses) Recognized in Income on Derivatives(2)
Year Ended December 31,
Derivatives in Fair Value Hedging
Relationship Location 2013 2014 2015
Foreign Exchange Hedges:
Foreign exchange contracts Other income
(expense), net $ 16 $ 115 $ 170
Hedged item Other income
(expense), net (25) (123) (176)
Total $ (9) $ (8) $ (6)
Interest Rate Hedges:
Interest rate contracts Other income
(expense), net $0$ 0 $ (2)
Hedged item Other income
(expense), net 00 2
Total $ 0$ 0 $ 0
(2) Losses related to the amount excluded from effectiveness testing of the hedges were $9 million, $8 million, and $6 million for
the years ended December 31, 2013, 2014, and 2015.