Investments

9 Months Ended

Sep. 30, 2020

The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale and restricted cash (in millions):


	September 30, 2020
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Short-term investments:
Restricted cash	$	126	$	—	$	—	$	126
Corporate debt securities	2,568		3		—		2,571



	$	2,694	$	3	$	—	$	2,697
Long-term investments:
Corporate debt securities	387		4		—		391

	$	387	$	4	$	—	$	391


	December 31, 2019
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Short-term investments:
Restricted cash	$	21	$	—	$	—	$	21
Corporate debt securities	1,653		1		—		1,654
Government and agency securities	175		—		—		175


	$	1,849	$	1	$	—	$	1,850
Long-term investments:
Corporate debt securities	957		4		—		961

	$	957	$	4	$	—	$	961

We consider cash to be restricted when withdrawal or general use is legally restricted. Our restricted cash balance is primarily comprised of cash on deposit with banks restricted to safeguard seller payables.

Investments classified as available-for-sale are carried at fair value with changes reflected in other comprehensive income. Where there is an intention or a requirement to sell an impaired available-for-sale debt security, the entire impairment is recognized in earnings with a corresponding adjustment to the amortized cost basis of the security. We presently do not intend to sell any of the securities in an unrealized loss position and expect to realize the full value of all these investments upon maturity or sale.

We regularly review investment securities for credit impairment using both qualitative and quantitative criteria. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded through interest and other, net for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. We did not recognize any credit-related impairment through an allowance for credit losses as of September 30, 2020.

Investment securities in a continuous loss position for less than 12 months had an estimated fair value of $402 million and an immaterial amount of unrealized losses as of September 30, 2020, and an estimated fair value of $774 million and an immaterial amount of unrealized losses as of December 31, 2019. As of September 30, 2020 there were no investment securities in a continuous loss position for greater than 12 months. Investment securities in a continuous loss position for greater than 12 months had an estimated fair value of $92 million and an immaterial amount of unrealized losses as of December 31, 2019. Refer to “Note 15 – 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 and restricted cash by date of contractual maturity as of September 30, 2020 are as follows (in millions):


	September 30, 2020
One year or less (including restricted cash of $126)	$	2,697
One year through two years	303
Two years through three years	88









	$	3,088

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 (in millions):


	September 30, 2020		December 31, 2019
Equity investments without readily determinable fair values	$	264	$	307
Equity investments under the equity method of accounting	8		7
Total equity investments	$	272	$	314

The following table summarizes the change in total carrying value during the three and nine months ended September 30, 2020 and 2019 related to equity investments without readily determinable fair values still held (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Carrying value, beginning of period	$	261	$	105	$	307	$	107
Additions	—		160		—		160

Downward adjustments for observable price changes and impairment	—		—		(40)		—
Foreign currency translation and other	3		(3)		(3)		(5)
Carrying value, end of period	$	264	$	262	$	264	$	262

For such equity investments without readily determinable fair values still held at September 30, 2020, cumulative downward adjustments for price changes and impairment was $121 million. There have been no upward adjustments for price changes to our equity investments without readily determinable fair values still held at September 30, 2020.