v3.22.2.2
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS
The following table summarizes the assets underlying our funds receivable and customer accounts, short-term investments, and long-term investments as of September 30, 2022 and December 31, 2021:
 September 30,
2022		December 31,
2021
(In millions)
Funds receivable and customer accounts:
Cash and cash equivalents$10,044 $12,723 
Time deposits39 334 
Available-for-sale debt securities18,916 18,336 
Funds receivable5,825 4,748 
Total funds receivable and customer accounts$34,824 $36,141 
Short-term investments:
Time deposits$383 $590 
Available-for-sale debt securities3,786 3,604 
Restricted cash21 109 
Total short-term investments$4,190 $4,303 
Long-term investments:
Time deposits$55 $45 
Available-for-sale debt securities2,912 3,545 
Strategic investments2,248 3,207 
Total long-term investments$5,215 $6,797 

As of September 30, 2022 and December 31, 2021, the estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments was as follows:
 
September 30, 2022(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$9,698 $— $(288)$9,410 
Foreign government and agency securities1,671 — (52)1,619 
Corporate debt securities1,698 — (93)1,605 
Asset-backed securities1,379 — (36)1,343 
Municipal securities328 — (4)324 
Commercial paper3,793 — (25)3,768 
Short-term investments:
U.S. government and agency securities75 — (3)72 
Foreign government and agency securities480 — (13)467 
Corporate debt securities969 — (14)955 
Asset-backed securities522 — (9)513 
Commercial paper1,781 — (2)1,779 
Long-term investments:
U.S. government and agency securities493 — (39)454 
Foreign government and agency securities400 — (24)376 
Corporate debt securities1,076 — (70)1,006 
Asset-backed securities1,105 — (29)1,076 
Total available-for-sale debt securities(2)
$25,468 $— $(701)$24,767 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”
 
December 31, 2021(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$8,754 $— $(31)$8,723 
Foreign government and agency securities1,849 — (9)1,840 
Corporate debt securities3,377 — (15)3,362 
Asset-backed securities1,552 — (3)1,549 
Municipal securities535 — — 535 
Short-term investments:
U.S. government and agency securities537 — — 537 
Foreign government and agency securities493 — (1)492 
Corporate debt securities2,285 — — 2,285 
Asset-backed securities278 — (1)277 
Long-term investments:
U.S. government and agency securities568 — (6)562 
Foreign government and agency securities742 — (6)736 
Corporate debt securities1,445 — (11)1,434 
Asset-backed securities817 — (4)813 
Total available-for-sale debt securities(2)
$23,232 $— $(87)$23,145 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”
Gross amortized cost and estimated fair value balances exclude accrued interest receivable on available-for-sale debt securities, which totaled $61 million and $36 million at September 30, 2022 and December 31, 2021, respectively, and were included in other current assets on our condensed consolidated balance sheets. As of September 30, 2022 and December 31, 2021, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses was not deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows:
 
September 30, 2022(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$7,297 $(186)$1,939 $(102)$9,236 $(288)
Foreign government and agency securities1,057 (32)562 (20)1,619 (52)
Corporate debt securities1,017 (62)589 (31)1,606 (93)
Asset-backed securities1,148 (30)195 (6)1,343 (36)
Municipal securities307 (4)— — 307 (4)
Commercial paper3,768 (25)— — 3,768 (25)
Short-term investments:
U.S. government and agency securities72 (3)— — 72 (3)
Foreign government and agency securities361 (9)106 (3)467 (12)
Corporate debt securities926 (14)28 (1)954 (15)
Asset-backed securities420 (7)62 (2)482 (9)
Commercial paper1,779 (2)— — 1,779 (2)
Long-term investments:
U.S. government and agency securities247 (19)206 (20)453 (39)
Foreign government and agency securities31 (2)345 (22)376 (24)
Corporate debt securities590 (43)407 (27)997 (70)
Asset-backed securities972 (23)104 (6)1,076 (29)
Total available-for-sale debt securities$19,992 $(461)$4,543 $(240)$24,535 $(701)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.
 
December 31, 2021(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$8,224 $(31)$— $— $8,224 $(31)
Foreign government and agency securities1,703 (9)20 — 1,723 (9)
Corporate debt securities1,816 (15)— — 1,816 (15)
Asset-backed securities1,302 (3)— — 1,302 (3)
Municipal securities50 — — — 50 — 
Short-term investments:
U.S. government and agency securities440 — — — 440 — 
Foreign government and agency securities485 (1)— — 485 (1)
Corporate debt securities336 — — — 336 — 
Asset-backed securities273 (1)— — 273 (1)
Long-term investments:
U.S. government and agency securities562 (6)— — 562 (6)
Foreign government and agency securities736 (6)— — 736 (6)
Corporate debt securities1,355 (11)— — 1,355 (11)
Asset-backed securities707 (4)— — 707 (4)
Total available-for-sale debt securities$17,989 $(87)$20 $— $18,009 $(87)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.

Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. We will continue to monitor the performance of the investment portfolio and assess whether impairment due to expected credit losses has occurred. Amounts reclassified to earnings from unrealized gains and losses were not material for the three and nine months ended September 30, 2022 and 2021.

Our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows:
 September 30, 2022
Amortized CostFair Value
(In millions)
One year or less $13,266 $13,119 
After one year through five years10,164 9,656 
After five years through ten years1,952 1,908 
After ten years86 84 
Total$25,468 $24,767 

STRATEGIC INVESTMENTS

Our strategic investments include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies. Our marketable equity securities have readily determinable fair values and are recorded as long-term investments on our condensed consolidated balance sheets at fair value with changes in fair value recorded in other income (expense), net on our condensed consolidated statements of income (loss). Marketable equity securities totaled $361 million and $1.9 billion as of September 30, 2022 and December 31, 2021, respectively, including the impact of the sale of marketable equity securities during the three months ended September 30, 2022.
Our non-marketable equity securities are recorded in long-term investments on our condensed consolidated balance sheets. As of September 30, 2022 and December 31, 2021, we had non-marketable equity securities of $122 million and $79 million, respectively, where we have the ability to exercise significant influence, but not control, over the investee. We account for these equity securities using the equity method of accounting. The remaining non-marketable equity securities do not have a readily determinable fair value and we measure these equity investments at cost minus impairment, if any, and adjust for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Measurement Alternative”). All gains and losses on these investments, realized and unrealized, and our share of earnings or losses from investments accounted for using the equity method are recognized in other income (expense), net on our condensed consolidated statements of income (loss). The carrying value of our non-marketable equity securities totaled $1.9 billion and $1.3 billion as of September 30, 2022 and December 31, 2021, respectively.

Measurement Alternative adjustments

The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three and nine months ended September 30, 2022 and 2021 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
(In millions)
Carrying amount, beginning of period$1,574 $1,009 $1,268 $779 
Adjustments related to non-marketable equity securities:
Net additions(1)
17 97 74 110 
Gross unrealized gains174 90 423 307 
Carrying amount, end of period$1,765 $1,196 $1,765 $1,196 
(1) Net additions include purchases, reductions due to sales of securities, and reclassifications when Measurement Alternative is subsequently elected or no longer applies.
The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative, held at September 30, 2022 and December 31, 2021, respectively:
September 30,
2022		December 31,
2021
(In millions)
Cumulative gross unrealized gains $1,137 $733 
Cumulative gross unrealized losses and impairments$(27)$(27)

Unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method

The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at September 30, 2022 and 2021, respectively:
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
(In millions)
Net unrealized gains (losses)$232 $173 $220 $265