FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS (Tables)
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6 Months Ended |
Jun. 30, 2023 |
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| Investments, Debt and Equity Securities [Abstract] |
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| 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 June 30, 2023 and December 31, 2022: | | | | | | | | | | | | | | June 30,
2023 | | December 31,
2022 | | (In millions) | | Funds receivable and customer accounts: | | | | | Cash and cash equivalents | $ | 10,100 | | | $ | 11,363 | | | Time deposits | 118 | | | 95 | | | Available-for-sale debt securities | 16,738 | | | 17,349 | | | Funds receivable | 6,687 | | | 7,457 | | | Total funds receivable and customer accounts | $ | 33,643 | | | $ | 36,264 | | | Short-term investments: | | | | | Time deposits | $ | 609 | | | $ | 482 | | | Available-for-sale debt securities | 3,778 | | | 2,593 | | | Restricted cash | 11 | | | 17 | | | Total short-term investments | $ | 4,398 | | | $ | 3,092 | | | Long-term investments: | | | | | Time deposits | $ | 65 | | | $ | 55 | | | Available-for-sale debt securities | 2,120 | | | 2,817 | | | | | | | Strategic investments | 2,358 | | | 2,146 | | | Total long-term investments | $ | 4,543 | | | $ | 5,018 | |
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| Schedule of estimated fair value of available-for-sale debt securities |
As of June 30, 2023 and December 31, 2022, 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: | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023(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 | $ | 9,139 | | | $ | — | | | $ | (188) | | | $ | 8,951 | | | Foreign government and agency securities | 964 | | | — | | | (22) | | | 942 | | | Corporate debt securities | 1,508 | | | — | | | (53) | | | 1,455 | | | Asset-backed securities | 1,287 | | | 1 | | | (11) | | | 1,277 | | | Municipal securities | 661 | | | — | | | (6) | | | 655 | | | Commercial paper | 2,961 | | | — | | | (7) | | | 2,954 | | | Short-term investments: | | | | | | | | | U.S. government and agency securities | 693 | | | — | | | (4) | | | 689 | | | Foreign government and agency securities | 646 | | | — | | | (12) | | | 634 | | | Corporate debt securities | 993 | | | — | | | (22) | | | 971 | | | Asset-backed securities | 484 | | | — | | | (7) | | | 477 | | | Commercial paper | 1,009 | | | — | | | (2) | | | 1,007 | | | Long-term investments: | | | | | | | | | U.S. government and agency securities | 412 | | | — | | | (28) | | | 384 | | | Foreign government and agency securities | 152 | | | — | | | (9) | | | 143 | | | Corporate debt securities | 499 | | | — | | | (23) | | | 476 | | | Asset-backed securities | 1,127 | | | — | | | (10) | | | 1,117 | | Total available-for-sale debt securities(2) | $ | 22,535 | | | $ | 1 | | | $ | (404) | | | $ | 22,132 | |
(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, 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 | $ | 8,736 | | | $ | — | | | $ | (252) | | | $ | 8,484 | | | Foreign government and agency securities | 1,479 | | | — | | | (44) | | | 1,435 | | | Corporate debt securities | 1,637 | | | — | | | (82) | | | 1,555 | | | Asset-backed securities | 1,324 | | | — | | | (26) | | | 1,298 | | | Municipal securities | 410 | | | — | | | (3) | | | 407 | | | Commercial paper | 3,702 | | | 1 | | | (14) | | | 3,689 | | | Short-term investments: | | | | | | | | | U.S. government and agency securities | 815 | | | — | | | (3) | | | 812 | | | Foreign government and agency securities | 435 | | | — | | | (11) | | | 424 | | | Corporate debt securities | 641 | | | — | | | (14) | | | 627 | | | Asset-backed securities | 415 | | | — | | | (9) | | | 406 | | | Commercial paper | 324 | | | — | | | — | | | 324 | | | Long-term investments: | | | | | | | | | U.S. government and agency securities | 493 | | | — | | | (36) | | | 457 | | | Foreign government and agency securities | 386 | | | — | | | (22) | | | 364 | | | Corporate debt securities | 987 | | | — | | | (58) | | | 929 | | | Asset-backed securities | 1,085 | | | — | | | (18) | | | 1,067 | | Total available-for-sale debt securities(2) | $ | 22,869 | | | $ | 1 | | | $ | (592) | | | $ | 22,278 | |
(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.”
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| Schedule of gross unrealized losses and estimated fair value of available-for-sale debt securities in a continuous loss position |
As of June 30, 2023 and December 31, 2022, 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: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023(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 | $ | 3,815 | | | $ | (36) | | | $ | 4,373 | | | $ | (152) | | | $ | 8,188 | | | $ | (188) | | | Foreign government and agency securities | 196 | | | (2) | | | 640 | | | (20) | | | 836 | | | (22) | | | Corporate debt securities | 50 | | | — | | | 1,405 | | | (53) | | | 1,455 | | | (53) | | | Asset-backed securities | 614 | | | (5) | | | 502 | | | (6) | | | 1,116 | | | (11) | | | Municipal securities | 618 | | | (6) | | | 10 | | | — | | | 628 | | | (6) | | | Commercial paper | 2,869 | | | (7) | | | — | | | — | | | 2,869 | | | (7) | | | Short-term investments: | | | | | | | | | | | | | U.S. government and agency securities | 44 | | | — | | | 152 | | | (4) | | | 196 | | | (4) | | | Foreign government and agency securities | 119 | | | — | | | 499 | | | (12) | | | 618 | | | (12) | | | Corporate debt securities | 101 | | | — | | | 782 | | | (22) | | | 883 | | | (22) | | | Asset-backed securities | 215 | | | (2) | | | 144 | | | (5) | | | 359 | | | (7) | | | Commercial paper | 909 | | | (2) | | | — | | | — | | | 909 | | | (2) | | | Long-term investments: | | | | | | | | | | | | | U.S. government and agency securities | — | | | — | | | 384 | | | (28) | | | 384 | | | (28) | | | Foreign government and agency securities | — | | | — | | | 143 | | | (9) | | | 143 | | | (9) | | | Corporate debt securities | 121 | | | (1) | | | 345 | | | (22) | | | 466 | | | (23) | | | Asset-backed securities | 489 | | | (3) | | | 429 | | | (7) | | | 918 | | | (10) | | | Total available-for-sale debt securities | $ | 10,160 | | | $ | (64) | | | $ | 9,808 | | | $ | (340) | | | $ | 19,968 | | | $ | (404) | |
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 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 | $ | 3,730 | | | $ | (89) | | | $ | 4,246 | | | $ | (163) | | | $ | 7,976 | | | $ | (252) | | | Foreign government and agency securities | 410 | | | (10) | | | 997 | | | (34) | | | 1,407 | | | (44) | | | Corporate debt securities | 9 | | | (1) | | | 1,545 | | | (81) | | | 1,554 | | | (82) | | | Asset-backed securities | 773 | | | (12) | | | 508 | | | (14) | | | 1,281 | | | (26) | | | Municipal securities | 264 | | | (3) | | | 50 | | | — | | | 314 | | | (3) | | | Commercial paper | 3,079 | | | (14) | | | — | | | — | | | 3,079 | | | (14) | | | Short-term investments: | | | | | | | | | | | | | U.S. government and agency securities | 345 | | | — | | | 73 | | | (3) | | | 418 | | | (3) | | | Foreign government and agency securities | 61 | | | — | | | 362 | | | (11) | | | 423 | | | (11) | | | Corporate debt securities | 97 | | | (2) | | | 465 | | | (12) | | | 562 | | | (14) | | | Asset-backed securities | 175 | | | (2) | | | 217 | | | (7) | | | 392 | | | (9) | | | Commercial paper | 224 | | | — | | | — | | | — | | | 224 | | | — | | | Long-term investments: | | | | | | | | | | | | | U.S. government and agency securities | — | | | — | | | 457 | | | (36) | | | 457 | | | (36) | | | Foreign government and agency securities | 31 | | | (2) | | | 333 | | | (20) | | | 364 | | | (22) | | | Corporate debt securities | 85 | | | (6) | | | 834 | | | (52) | | | 919 | | | (58) | | | Asset-backed securities | 872 | | | (9) | | | 195 | | | (9) | | | 1,067 | | | (18) | | | Total available-for-sale debt securities | $ | 10,155 | | | $ | (150) | | | $ | 10,282 | | | $ | (442) | | | $ | 20,437 | | | $ | (592) | |
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.
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| 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: | | | | | | | | | | | | | | June 30, 2023 | | Amortized Cost | | Fair Value | | (In millions) | | One year or less | $ | 13,639 | | | $ | 13,466 | | | After one year through five years | 6,619 | | | 6,405 | | | After five years through ten years | 2,214 | | | 2,199 | | | After ten years | 63 | | | 62 | | | Total | $ | 22,535 | | | $ | 22,132 | |
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| 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 six months ended June 30, 2023 and 2022 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2023 | | 2022 | | 2023 | | 2022 | | (In millions) | | Carrying amount, beginning of period | $ | 1,680 | | | $ | 1,469 | | | $ | 1,687 | | | $ | 1,268 | | | Adjustments related to non-marketable equity securities: | | | | | | | | Net additions(1) | 10 | | | 44 | | | 26 | | | 57 | | | Gross unrealized gains | 1 | | | 61 | | | 23 | | | 249 | | | Gross unrealized losses and impairments | — | | | — | | | (45) | | | — | | | Carrying amount, end of period | $ | 1,691 | | | $ | 1,574 | | | $ | 1,691 | | | $ | 1,574 | |
(1) Net additions include purchases, reductions due to sales of securities, and reclassifications when the 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 June 30, 2023 and December 31, 2022, respectively: | | | | | | | | | | | | | June 30,
2023 | | December 31,
2022 | | (In millions) | | Cumulative gross unrealized gains | $ | 1,160 | | | $ | 1,137 | | | Cumulative gross unrealized losses and impairments | $ | (175) | | | $ | (131) | | | | | |
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| 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 June 30, 2023 and 2022, respectively: | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2023 | | 2022 | | 2023 | | 2022 | | (In millions) | | Net unrealized gains (losses) | $ | 136 | | | $ | (673) | | | $ | 188 | | | $ | (709) | |
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