Investments

6 Months Ended

Jun. 30, 2019

The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale as of June 30, 2019 and December 31, 2018 (in millions):



	June 30, 2019
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Short-term investments:
Restricted cash	$	13	$	—	$	—		$	13
Corporate debt securities	2,957		1		(2		)	2,956
	$	2,970	$	1	$	(2	)	$	2,969
Long-term investments:
Corporate debt securities	1,782		4		(3		)	1,783
	$	1,782	$	4	$	(3	)	$	1,783



	December 31, 2018
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Short-term investments:
Restricted cash	$	17	$	—	$	—		$	17
Corporate debt securities	2,615		—		(9		)	2,606
Government and agency securities	90		—		—			90
	$	2,722	$	—	$	(9	)	$	2,713
Long-term investments:
Corporate debt securities	3,682		1		(48		)	3,635
	$	3,682	$	1	$	(48	)	$	3,635

Investment securities in a continuous loss position for less than 12 months had an estimated fair value of $1.3 billion and an immaterial amount of unrealized losses as of June 30, 2019, and an estimated fair value of $2.9 billion and an immaterial amount of unrealized losses as of December 31, 2018. Investment securities in a continuous loss position for greater than 12 months had an estimated fair value of $1.5 billion and an immaterial amount of unrealized losses as of June 30, 2019 and an estimated fair value of $2.7 billion and unrealized losses of $41 million as of December 31, 2018. Refer to “Note 16 - Accumulated Other Comprehensive Income” for amounts reclassified to earnings from unrealized gains and losses.

The estimated fair values of our short-term and long-term investments classified as available-for-sale by date of contractual maturity as of June 30, 2019 are as follows (in millions):



	June 30, 2019
One year or less (including restricted cash of $13)	$	2,969
One year through two years	1,069
Two years through three years	450
Three years through four years	264
	$	4,752

Equity investments

Our equity investments are reported in long-term investments on our condensed consolidated balance sheet. The following table provides a summary of our equity investments as of June 30, 2019 and December 31, 2018 (in millions):



	June 30, 2019		December 31, 2018
Equity investments without readily determinable fair values	$	136	$	137
Equity investments under the equity method of accounting	17		6
Total equity investments	$	153	$	143

During the second quarter of 2018, we relinquished our existing equity method investment in Giosis as part of the exchange for the acquisition of Giosis’ Japan business. The gain upon relinquishment of $266 million was recorded in interest and other, net on our condensed consolidated statement of income. Refer to “Note 3 - Business Combinations” for further details on the acquisition.

The following table summarizes the change in total carrying value during the three and six months ended June 30, 2019 and 2018 related to equity investments without readily determinable fair values still held at June 30, 2019 and 2018 (in millions):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Carrying value, beginning of period	$	137		$	890		$	137		$	872
Additions	—			23			—			23
Downward adjustments for observable price changes and impairment	—			(20		)	—			(20		)
Foreign currency translation and other	(1		)	(34		)	(1		)	(16		)
Carrying value, end of period	$	136		$	859		$	136		$	859

For such equity investments without readily determinable fair values still held at June 30, 2019, cumulative downward adjustments for price changes and impairment was $81 million. There have been no upward adjustments for price changes to our equity investments without readily determinable fair values still held at June 30, 2019.

In July 2019, we announced that we would receive an ownership interest in Paytm Mall in exchange for a $160 million cash investment. We signed the definitive agreement and we expect to close the transaction in the third quarter of 2019.