FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of assets underlying funds receivable and customer accounts, short-term and long-term 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 deposits	39		334
Available-for-sale debt securities	18,916		18,336
Funds receivable	5,825		4,748
Total funds receivable and customer accounts	$	34,824	$	36,141
Short-term investments:
Time deposits	$	383	$	590
Available-for-sale debt securities	3,786		3,604
Restricted cash	21		109
Total short-term investments	$	4,190	$	4,303
Long-term investments:
Time deposits	$	55	$	45
Available-for-sale debt securities	2,912		3,545

Strategic investments	2,248		3,207
Total long-term investments	$	5,215	$	6,797

Schedule of estimated fair value of available-for-sale debt securities

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 securities	1,671		—		(52)		1,619
Corporate debt securities	1,698		—		(93)		1,605
Asset-backed securities	1,379		—		(36)		1,343
Municipal securities	328		—		(4)		324
Commercial paper	3,793		—		(25)		3,768
Short-term investments:
U.S. government and agency securities	75		—		(3)		72
Foreign government and agency securities	480		—		(13)		467
Corporate debt securities	969		—		(14)		955
Asset-backed securities	522		—		(9)		513
Commercial paper	1,781		—		(2)		1,779
Long-term investments:
U.S. government and agency securities	493		—		(39)		454
Foreign government and agency securities	400		—		(24)		376
Corporate debt securities	1,076		—		(70)		1,006
Asset-backed securities	1,105		—		(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 securities	1,849		—		(9)		1,840
Corporate debt securities	3,377		—		(15)		3,362
Asset-backed securities	1,552		—		(3)		1,549
Municipal securities	535		—		—		535

Short-term investments:
U.S. government and agency securities	537		—		—		537
Foreign government and agency securities	493		—		(1)		492
Corporate debt securities	2,285		—		—		2,285
Asset-backed securities	278		—		(1)		277

Long-term investments:
U.S. government and agency securities	568		—		(6)		562
Foreign government and agency securities	742		—		(6)		736
Corporate debt securities	1,445		—		(11)		1,434
Asset-backed securities	817		—		(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.”

Schedule of gross unrealized losses and estimated fair value of available-for-sale debt securities in a continuous loss position

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 months				12 months or longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross 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 securities	1,057		(32)		562		(20)		1,619		(52)
Corporate debt securities	1,017		(62)		589		(31)		1,606		(93)
Asset-backed securities	1,148		(30)		195		(6)		1,343		(36)
Municipal securities	307		(4)		—		—		307		(4)
Commercial paper	3,768		(25)		—		—		3,768		(25)
Short-term investments:
U.S. government and agency securities	72		(3)		—		—		72		(3)
Foreign government and agency securities	361		(9)		106		(3)		467		(12)
Corporate debt securities	926		(14)		28		(1)		954		(15)
Asset-backed securities	420		(7)		62		(2)		482		(9)
Commercial paper	1,779		(2)		—		—		1,779		(2)
Long-term investments:
U.S. government and agency securities	247		(19)		206		(20)		453		(39)
Foreign government and agency securities	31		(2)		345		(22)		376		(24)
Corporate debt securities	590		(43)		407		(27)		997		(70)
Asset-backed securities	972		(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 months				12 months or longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross 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 securities	1,703		(9)		20		—		1,723		(9)
Corporate debt securities	1,816		(15)		—		—		1,816		(15)
Asset-backed securities	1,302		(3)		—		—		1,302		(3)
Municipal securities	50		—		—		—		50		—

Short-term investments:
U.S. government and agency securities	440		—		—		—		440		—
Foreign government and agency securities	485		(1)		—		—		485		(1)
Corporate debt securities	336		—		—		—		336		—
Asset-backed securities	273		(1)		—		—		273		(1)

Long-term investments:
U.S. government and agency securities	562		(6)		—		—		562		(6)
Foreign government and agency securities	736		(6)		—		—		736		(6)
Corporate debt securities	1,355		(11)		—		—		1,355		(11)
Asset-backed securities	707		(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.

The estimated fair values of investments classified as available for sale included within funds receivable, customer accounts, short-term investments, and long-term investments by date of contractual maturity

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 Cost		Fair Value
	(In millions)
One year or less	$	13,266	$	13,119
After one year through five years	10,164		9,656
After five years through ten years	1,952		1,908
After ten years	86		84
Total	$	25,468	$	24,767

Schedule of adjustments to the carrying value of equity investments and summary of cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative

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,
	2022		2021		2022		2021
	(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 gains	174		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)

Schedule of 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,
	2022		2021		2022		2021
	(In millions)
Net unrealized gains (losses)	$	232	$	173	$	220	$	265