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Table of Contents Alphabet Inc. and Google Inc.
75
Note 5. Balance Sheet Components
Property and Equipment, Net
Property and equipment, net, consisted of the following (in millions):
As of
December 31,
2014
As of
December 31,
2015
Land and buildings $ 13,326 $ 16,518
Information technology assets 10,918 13,645
Construction in progress 6,555 7,324
Leasehold improvements 1,868 2,576
Furniture and fixtures 79 83
Property and equipment, gross 32,746 40,146
Less: accumulated depreciation and amortization (8,863) (11,130)
Property and equipment, net $ 23,883 $ 29,016
Property under capital lease with a cost basis of $258 million was included in land and buildings as of December
31, 2015.
Prepaid Revenue Share, Expenses and Other Assets, Non-Current
Note Receivable
In connection with the sale of our Motorola Mobile business on October 29, 2014 (see Note 9 for additional
information), we received an interest-free, three-year prepayable promissory note (the "Note Receivable") due October
2017 from Lenovo. The Note Receivable is included in prepaid revenue share, expenses and other assets, non-current,
on our Consolidated Balance Sheets. Based on the general market conditions and the credit quality of Lenovo, we
discounted the Note Receivable at an effective interest rate of 4.5%. The outstanding balances are shown in the table
below (in millions):
As of
December 31, 2014 As of
December 31, 2015
Principal of the Note Receivable $ 1,500 $ 1,448
Less: unamortized discount for the Note Receivable (175) (112)
Total $ 1,325 $ 1,336
As of December 31, 2014 and 2015, we did not recognize a valuation allowance on the Note Receivable.
Accumulated Other Comprehensive Income
The components of AOCI, net of tax, were as follows (in millions):
Foreign Currency
Translation
Adjustments
Unrealized Gains
(Losses) on
Available-for-Sale
Investments
Unrealized Gains
on Cash Flow
Hedges Total
Balance as of December 31, 2012 $ (73) $ 604 $ 7 $ 538
Other comprehensive income (loss)
before reclassifications 89 (392) 112 (191)
Amounts reclassified from AOCI 0 (162) (60) (222)
Other comprehensive income (loss) 89 (554) 52 (413)
Balance as of December 31, 2013 $ 16 $ 50 $ 59 $ 125