| Summary of financial assets and liabilities measured at fair value on a recurring basis |
The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021: | | | | | | | | | | | | | | | | | | | | |
| | September 30, 2022 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other
Observable Inputs
(Level 2) | | | (In millions) | | Assets: | | | | | | | Cash and cash equivalents(1) | | $ | 893 | | | $ | — | | | $ | 893 | | Short-term investments(2): | | | | | | | | | | | | | | | U.S. government and agency securities | | 72 | | | — | | | 72 | | | Foreign government and agency securities | | 467 | | | — | | | 467 | | | Corporate debt securities | | 955 | | | — | | | 955 | | | Asset-backed securities | | 513 | | | — | | | 513 | | | Commercial paper | | 1,779 | | | — | | | 1,779 | | | | | | | | | | Total short-term investments | | 3,786 | | | — | | | 3,786 | | Funds receivable and customer accounts(3): | | | | | | | | Cash and cash equivalents | | 400 | | | — | | | 400 | | | U.S. government and agency securities | | 9,410 | | | — | | | 9,410 | | | Foreign government and agency securities | | 2,290 | | | — | | | 2,290 | | | Corporate debt securities | | 1,748 | | | — | | | 1,748 | | | Asset-backed securities | | 1,343 | | | — | | | 1,343 | | | Municipal securities | | 324 | | | — | | | 324 | | | Commercial paper | | 3,801 | | | — | | | 3,801 | | | Total funds receivable and customer accounts | | 19,316 | | | — | | | 19,316 | | | Derivatives | | 1,015 | | | — | | | 1,015 | | | Crypto asset safeguarding asset | | 690 | | | — | | | 690 | | Long-term investments(2),(4): | | | | | | | | U.S. government and agency securities | | 454 | | | — | | | 454 | | | Foreign government and agency securities | | 376 | | | — | | | 376 | | | Corporate debt securities | | 1,006 | | | — | | | 1,006 | | | Asset-backed securities | | 1,076 | | | — | | | 1,076 | | | Marketable equity securities | | 361 | | | 361 | | | — | | | Total long-term investments | | 3,273 | | | 361 | | | 2,912 | | | Total financial assets | | $ | 28,973 | | | $ | 361 | | | $ | 28,612 | | | Liabilities: | | | | | | | | Derivatives | | $ | 187 | | | $ | — | | | $ | 187 | | | Crypto asset safeguarding liability | | 690 | | | — | | | 690 | | | Total financial liabilities | | $ | 877 | | | $ | — | | | $ | 877 | |
(1) Excludes cash of $5.8 billion not measured and recorded at fair value. (2) Excludes restricted cash of $21 million and time deposits of $438 million not measured and recorded at fair value. (3) Excludes cash, time deposits, and funds receivable of $15.5 billion underlying funds receivable and customer accounts not measured and recorded at fair value. (4) Excludes non-marketable equity securities of $1.9 billion measured using the Measurement Alternative or equity method accounting. | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2021 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | | (In millions) | | Assets: | | | | | | | Cash and cash equivalents(1) | | $ | 400 | | | $ | — | | | $ | 400 | | Short-term investments(2): | | | | | | | | U.S. government and agency securities | | 537 | | | — | | | 537 | | | Foreign government and agency securities | | 505 | | | — | | | 505 | | | Corporate debt securities | | 2,285 | | | — | | | 2,285 | | | Asset-backed securities | | 277 | | | — | | | 277 | | | | | | | | | | Total short-term investments | | 3,604 | | | — | | | 3,604 | | Funds receivable and customer accounts(3): | | | | | | | | Cash and cash equivalents | | 622 | | | — | | | 622 | | | U.S. government and agency securities | | 8,723 | | | — | | | 8,723 | | | Foreign government and agency securities | | 4,090 | | | — | | | 4,090 | | | Corporate debt securities | | 3,439 | | | — | | | 3,439 | | | Asset-backed securities | | 1,549 | | | — | | | 1,549 | | | Municipal securities | | 535 | | | — | | | 535 | | | | | | | | | | Total funds receivable and customer accounts | | 18,958 | | | — | | | 18,958 | | | Derivatives | | 304 | | | — | | | 304 | | Long-term investments(2), (4): | | | | | | | | U.S. government and agency securities | | 562 | | | — | | | 562 | | | Foreign government and agency securities | | 736 | | | — | | | 736 | | | Corporate debt securities | | 1,434 | | | — | | | 1,434 | | | Asset-backed securities | | 813 | | | — | | | 813 | | | Marketable equity securities | | 1,860 | | | 1,860 | | | — | | | Total long-term investments | | 5,405 | | | 1,860 | | | 3,545 | | | Total financial assets | | $ | 28,671 | | | $ | 1,860 | | | $ | 26,811 | | | Liabilities: | | | | | | | | Derivatives | | $ | 130 | | | $ | — | | | $ | 130 | |
(1) Excludes cash of $4.8 billion not measured and recorded at fair value. (2) Excludes restricted cash of $109 million and time deposits of $635 million not measured and recorded at fair value. (3) Excludes cash, time deposits, and funds receivable of $17.2 billion underlying funds receivable and customer accounts not measured and recorded at fair value. (4) Excludes non-marketable equity securities of $1.3 billion measured using the Measurement Alternative or equity method accounting.
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| Summary of investments under the fair value option |
The following table summarizes the estimated fair value of our available-for-sale debt securities under the fair value option as of September 30, 2022 and December 31, 2021: | | | | | | | | | | | | | September 30,
2022 | | December 31,
2021 | | (In millions) | | Funds receivable and customer accounts | $ | 847 | | | $ | 2,327 | | | Short-term investments | $ | — | | | $ | 13 | | | | | |
The following table summarizes the gains (losses) from fair value changes recognized in other income (expense), net related to the available-for-sale debt securities under the fair value option for the three and nine months ended September 30, 2022 and 2021: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2022 | | 2021 | | 2022 | | 2021 | | (In millions) | | Funds receivable and customer accounts | $ | (70) | | | $ | (45) | | | $ | (213) | | | $ | (85) | | | Short-term investments | $ | — | | | $ | (18) | | | $ | — | | | $ | (25) | | | | | | | | | |
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| Summary of financial assets measured at fair value on a non-recurring basis |
The following tables summarize our assets held as of September 30, 2022 and December 31, 2021 for which a non-recurring fair value measurement was recorded during the nine months ended September 30, 2022 and the year ended December 31, 2021, respectively: | | | | | | | | | | | | | | | | | | September 30,
2022 | | | Significant Other Observable Inputs (Level 2) | | | (In millions) | Non-marketable equity investments measured using the Measurement Alternative(1) | | $ | 1,054 | | | | $ | 1,054 | | Other assets(2) | | 128 | | | | 128 | | | Total | | $ | 1,182 | | | | $ | 1,182 | |
(1) Excludes non-marketable equity investments of $711 million accounted for under the Measurement Alternative for which no observable price changes occurred during the nine months ended September 30, 2022. (2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the nine months ended September 30, 2022. See “Note 6—Leases” for additional information.
| | | | | | | | | | | | | | | | | | December 31, 2021 | | | Significant Other Observable Inputs (Level 2) | | | (In millions) | Non-marketable equity investments measured using the Measurement Alternative(1) | | $ | 611 | | | | $ | 611 | | Other assets(2) | | 86 | | | | 86 | | | Total | | $ | 697 | | | | $ | 697 | |
(1) Excludes non-marketable equity investments of $657 million accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2021. (2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the year ended December 31, 2021. See “Note 6—Leases” for additional information.
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