Supplemental Consolidated Financial Information

6 Months Ended

Jun. 30, 2023

Supplemental Consolidated Financial Information

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when we have satisfied our performance obligation and have the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions reasonable and supportable forecasts, and other factors that may affect our customers’ ability to pay. The allowance for doubtful accounts and authorized credits was $43 million and $42 million as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, we reported an allowance for doubtful accounts of $18 million reflecting an increase of $2 million, net of write-offs of $4 million for the six months ended June 30, 2023. As of December 31, 2022, we reported an allowance for doubtful accounts of $16 million.

Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized for the six month period ended June 30, 2023 that was included in the deferred revenue balance at the beginning of the period was $31 million. The amount of revenue recognized for the six month period ended June 30, 2022 that was included in the deferred revenue balance at the beginning of the period was $37 million.

Cash, cash equivalents and restricted cash


	June 30, 2023		December 31, 2022
	(In millions)
Cash and cash equivalents	$	2,268	$	2,154
Customer accounts	380		69
Restricted cash included in short-term investments	22		36
Restricted cash included in long-term investments	4		13
Cash, cash equivalents and restricted cash	$	2,674	$	2,272

Customer accounts and funds receivable


	June 30, 2023		December 31, 2022
	(In millions)
Customer accounts	$	380	$	69
Funds receivable	409		694
Customer accounts and funds receivable	$	789	$	763

Other current assets


	June 30, 2023		December 31, 2022
	(In millions)
Income and other tax receivable	$	129	$	122
Payment processor advances	126		336
Prepaid expenses	125		120
Accounts receivable, net	77		90
Short-term derivative assets	55		112
Other	284		276
Other current assets	$	796	$	1,056

Accrued expenses and other current liabilities


	June 30, 2023		December 31, 2022
	(In millions)
Compensation and related benefits	$	395	$	426
Sales and use tax and VAT accruals	375		346
Advertising accruals	199		229
Operating lease liabilities	120		131
Transaction loss reserve	106		101
Uninvoiced general and administrative expenses	91		111
Accrued interest expense	56		67
Deferred revenue	37		34
Other	411		421
Accrued expenses and other current liabilities	$	1,790	$	1,866

Gain (loss) on equity investments and warrant, net


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(In millions)
Unrealized change in fair value of equity investment in Adevinta	$	(210)	$	(829)	$	(36)	$	(2,472)
Unrealized change in fair value of equity investment in Adyen	—		(38)		—		(118)
Unrealized change in fair value of equity investment in Gmarket	(29)		(77)		(40)		(259)
Unrealized change in fair value of equity investment in KakaoBank	(4)		(105)		(7)		(196)
Change in fair value of warrant	31		(104)		69		(219)
Realized change in fair value of shares sold in Adyen	—		(1)		—		(167)
Realized change in fair value of shares sold in KakaoBank	—		(67)		—		(75)
Gain (loss) on other investments	(2)		—		(2)		(6)
Total gain (loss) on equity investments and warrant, net	$	(214)	$	(1,221)	$	(16)	$	(3,512)