Fair Value Measurements

6 Months Ended

Jun. 30, 2025

Financial assets and liabilities measured at fair value on a recurring basis as of June 30, 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	$	218	$	218	$	—

Term deposits and certificates of deposit	183		—		183


Commercial paper	46		—		46
Derivatives:
Foreign currency forward contracts	38		—		38

Investments:
Equity investments	487		487		—
Corporate debt securities	478		—		478
U.S. treasury securities	47		—		47
Asset-backed securities	121		—		121
Term deposits and certificates of deposit	5		—		5
U.S. agency securities	22		—		22
Commercial paper	6		—		6
Total assets measured at fair value on a recurring basis	$	1,651	$	705	$	946

Liabilities
Derivatives:

Cross-currency interest rate swaps	$	15	$	—	$	15

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 measured at fair value on a recurring basis	$	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 June 30, 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 June 30, 2025, we had $367 million of short-term and $312 million of long-term available-for-sale investments, which generally mature within three 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 six months ended June 30, 2025 and 2024. We review our available-for-sale securities on a regular basis for impairment. During both the six months ended June 30, 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 June 30, 2025, we were party to outstanding forward contracts hedging our liability exposures with a total net notional value of $5.6 billion. We had a net forward asset of $38 million ($83 million gross forward asset) as of June 30, 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 $151 million and $(12) million in net gains (losses) from foreign currency forward contracts during the three months ended June 30, 2025 and 2024, as well as $200 million and $(58) million during the six months ended June 30, 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 $15 million liability as of June 30, 2025, recorded in accrued expenses and other current liabilities 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 $3 million during both the six months ended June 30, 2025 and 2024.

At June 30, 2025 our equity investment represents our investment in Global Business Travel Group, Inc., a publicly traded company. We include this investment in long-term investments and other assets in our consolidated balance sheets. During the six months ended June 30, 2025 and 2024, we recognized gains (losses) of approximately $(223) million and $11 million within other, net in our consolidated statements of operations related to the fair value changes of this investment.

During the second quarter of 2025, we completed the sale of our equity investment in Despegar.com, Corp. for $187 million in cash. During the six months ended June 30, 2025 and 2024, we recognized gains of approximately $2 million and $36 million within other, net in our consolidated statements of operations for fair value changes up to the date of the sale in the current year.

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 June 30, 2025 and December 31, 2024, the carrying values of our minority investments without readily determinable fair values totaled $256 million and $293 million. During the six months ended June 30, 2025, we recorded $37 million of losses related to a minority investment, resulting from a valuation using an option pricing model that utilized judgmental inputs such as discounts for lack of marketability and estimated exit event timing. During the six months ended June 30, 2024, we sold a minority investment for $15 million and recognized an immaterial gain on the transaction. As of June 30, 2025, total cumulative adjustments made to the initial cost basis of these investments included $164 million in unrealized downward adjustments (including impairments).