Supplemental Consolidated Financial Information

3 Months Ended

Mar. 31, 2022

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 $60 million and $74 million as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, we reported an allowance for doubtful accounts of $32 million reflecting a decrease of $16 million, net of write-offs of $26 million for the three months ended March 31, 2022. As of December 31, 2021, we reported an allowance for doubtful accounts of $42 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 three month period ended March 31, 2022 that was included in the deferred revenue balance at the beginning of the period was $37 million. The amount of revenue recognized for the three month period ended March 31, 2021 that was included in the deferred revenue balance at the beginning of the period was $44 million.

Cash, cash equivalents and restricted cash


	March 31, 2022		December 31, 2021
	(In millions)
Cash and cash equivalents	$	1,798	$	1,379
Customer accounts	3		5
Restricted cash included in short-term investments	20		22
Cash, cash equivalents and restricted cash	$	1,821	$	1,406

Customer accounts and funds receivable


	March 31, 2022		December 31, 2021
	(In millions)
Cash and cash equivalents	$	3	$	5
Funds receivable	623		676
Customer accounts and funds receivable	$	626	$	681

Other current assets


	March 31, 2022		December 31, 2021
	(In millions)
Payment processor advances	$	374	$	453
Prepaid expenses	117		114
Accounts receivable, net	87		98
Other	576		442
Other current assets	$	1,154	$	1,107

Goodwill

The following table presents goodwill activity for the period indicated (in millions):


	December 31, 2021		Goodwill Acquired		Adjustments		March 31, 2022
Goodwill	$	4,178	$	—	$	(37)	$	4,141

The adjustments to goodwill during the three months ended March 31, 2022 were primarily due to foreign currency translation.

Accrued expenses and other current liabilities


	March 31, 2022		December 31, 2021
	(In millions)
Compensation and related benefits	$	356	$	517
Sales and use tax and VAT accruals	348		396
Advertising accruals	194		172
Operating lease liabilities	146		150
Transaction loss reserve	110		116
Deferred revenue	38		79
Other	659		497
Accrued expenses and other current liabilities	$	1,851	$	1,927

Gain (loss) on equity investments and warrant, net


	Three Months Ended March 31,
	2022		2021
	(In millions)
Change in fair value of equity investment in Adevinta	$	(1,643)	$	—
Change in fair value of equity investment in Gmarket	(182)		—
Realized change in fair value of shares sold in Adyen	(166)		—
Unrealized change in fair value of equity investment in Adyen	(80)		—
Unrealized change in fair value of equity investment in KakaoBank	(91)		—
Realized change in fair value of shares sold in KakaoBank	(8)		—
Change in fair value of warrant	(115)		(36)
Gain (loss) on other investments	(6)		—
Total gain (loss) on equity investments and warrant, net	$	(2,291)	$	(36)