Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 are classified using the fair value hierarchy in the table below:


	Total		Level 1		Level 2
	(In millions)
Assets
Cash equivalents:
Money market funds	$	133	$	133	$	—

Term deposits and certificates of deposit	156		—		156
Corporate debt securities	15		—		15

Commercial paper	21		—		21
Derivatives:
Foreign currency forward contracts	27		—		27
Cross-currency interest rate swaps	11		—		11
Investments:
Equity investments	739		739		—
Corporate debt securities	513		—		513
U.S. treasury securities	62		—		62
Asset-backed securities	115		—		115
Term deposits and certificates of deposit	5		—		5
U.S. agency securities	20		—		20
Total assets	$	1,817	$	872	$	945

Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 are classified using the fair value hierarchy in the table below:


	Total		Level 1		Level 2
	(In millions)
Assets
Cash equivalents:
Money market funds	$	113	$	113	$	—
Term deposits and certificates of deposit	163		—		163
Commercial paper	2		—		2
Derivatives:

Cross-currency interest rate swaps	25		—		25
Investments:
Equity investments	895		895		—
Corporate debt securities	354		—		354
U.S. treasury securities	70		—		70
Asset-backed securities	62		—		62
Term deposits and certificates of deposit	3		—		3
U.S. agency securities	8		—		8
Non-U.S. government securities	3		—		$	3
Commercial paper	2		—		$	2
Total assets	$	1,700	$	1,008	$	692

Liabilities
Derivatives:
Foreign currency forward contracts	$	2	$	—	$	2

We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input. Valuation of the cross-currency interest rate swaps is based on foreign currency exchange rates and the current interest rate curve, Level 2 inputs.

We hold term deposit investments with financial institutions. Term deposits with original maturities of less than three months are classified as cash equivalents. Those with remaining maturities of less than one year are classified within short-term investments and those with remaining maturities of greater than one year are classified within long-term investments and other assets.

As of March 31, 2025 and December 31, 2024, our cash and cash equivalents consisted primarily of term deposits, certificates of deposits, and money market funds with maturities of three months or less and bank account balances.

We primarily invest in investment grade corporate debt securities, U.S. treasury securities, and asset-backed securities, all of which are classified as available-for-sale. As of March 31, 2025, we had $411 million of short-term and $304 million of long-term available-for-sale investments, which generally mature within 4 years. As of December 31, 2024, we had $300 million in short-term and $202 million of long-term available-for-sale investments. The amortized cost basis of the investments approximated their fair value with gross unrealized gains and gross unrealized losses of less than $1 million during both the three months ended March 31, 2025 and 2024. We review our debt securities on a regular basis for impairment. During both the three months ended March 31, 2025 and 2024, we did not recognize an allowance for credit-related losses on any of our investments.

We use foreign currency forward contracts to economically hedge certain merchant revenue exposures, foreign denominated liabilities related to certain of our loyalty programs and our other foreign currency-denominated operating liabilities. As of March 31, 2025, we were party to outstanding forward contracts hedging our liability exposures with a total net notional value of $5.2 billion. We had a net forward asset of $27 million ($52 million gross forward asset) as of March 31, 2025 recorded in prepaid expenses and other current assets and a net forward liability of $2 million ($42 million gross forward liability) as of December 31, 2024 recorded in accrued expenses and other current liabilities. We recorded $49 million and $(46) million in net gains (losses) from foreign currency forward contracts during the three months ended March 31, 2025 and 2024.

We maintain two fixed-to-fixed cross-currency interest rate swaps with an aggregate notional amount of €300 million and maturity dates of February 2026. The swaps were designated as net investment hedges of Euro assets with the objective to protect the U.S. dollar value of our net investments in the Euro foreign operations due to movements in foreign currency. The fair value of the cross-currency interest rate swaps was a $11 million asset as of March 31, 2025, recorded in prepaid expenses and other current assets and a $25 million asset as of December 31, 2024, recorded in long-term investments and other assets. The gain recognized in interest expense was $1 million during both the three months ended March 31, 2025 and 2024.

Our equity investments include our marketable equity investments in Despegar.com, Corp. and Global Business Travel Group, Inc., both publicly traded companies, which are included in long-term investments and other assets in our consolidated balance sheets. During the three months ended March 31, 2025 and 2024, we recognized net losses of approximately $156 million and $9 million within other, net in our consolidated statements of operations related to the fair value changes of these equity investments.

Assets Measured at Fair Value on a Non-recurring Basis

Our non-financial assets, such as goodwill, intangible assets and property and equipment, are adjusted to fair value when an impairment charge is recognized or the underlying investment is sold. Such fair value measurements are based predominately on Level 3 inputs. We measure our minority investments that do not have readily determinable fair values at cost less impairment, adjusted by observable price changes with changes recorded within other, net on our consolidated statements of operations.

Minority Investments without Readily Determinable Fair Values. As of March 31, 2025 and December 31, 2024, the carrying values of our minority investments without readily determinable fair values totaled $293 million for both periods. During the three months ended March 31, 2025, we had no material gains or losses recognized related to these minority investments. During the three months ended March 31, 2024, we sold a minority investment for $15 million and recognized an immaterial gain on the transaction. As of March 31, 2025, total cumulative adjustments made to the initial cost basis of these investments included $127 million in unrealized downward adjustments (including impairments).