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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________ 

FORM 10-Q
____________________________________________ 
(Mark One)
  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to            
Commission File Number: 001-35551
____________________________________________ 
meta-20220331_g1.jpg
Meta Platforms, Inc.
(Exact name of registrant as specified in its charter)
____________________________________________ 
Delaware20-1665019
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
1601 Willow Road, Menlo Park, California 94025
(Address of principal executive offices and Zip Code)

(650543-4800
(Registrant's telephone number, including area code)
 ____________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.000006 par valueFBThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (Exchange Act) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒
Indicate the number of shares outstanding of each of the issuer's classes of Common Stock, as of the latest practicable date.
ClassNumber of Shares Outstanding
Class A Common Stock $0.000006 par value2,293,518,778 shares outstanding as of April 22, 2022
Class B Common Stock $0.000006 par value412,804,609 shares outstanding as of April 22, 2022




Meta Platforms, Inc.

Form 10-Q
For the Quarterly Period Ended March 31, 2022

TABLE OF CONTENTS

  Page 
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 6.
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Table of Contents
NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in Part II, Item 1A, "Risk Factors" in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward‑looking statements.

We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward‑looking statements.

In October 2021, we changed our corporate name from Facebook, Inc. to Meta Platforms, Inc. We will not distinguish between our prior and current corporate name and will refer to our current corporate name throughout this Quarterly Report on Form 10-Q. As such, unless expressly indicated or the context requires otherwise, the terms "Meta," "company," "we," "us," and "our" in this document refer to Meta Platforms, Inc., a Delaware corporation, and, where appropriate, its subsidiaries. The term "Family" refers to our Facebook, Instagram, Messenger, and WhatsApp products. For references to accessing Meta's products on the "web" or via a "website," such terms refer to accessing such products on personal computers. For references to accessing Meta's products on "mobile," such term refers to accessing such products via a mobile application or via a mobile-optimized version of our websites such as m.facebook.com, whether on a mobile phone or tablet.
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Table of Contents
LIMITATIONS OF KEY METRICS AND OTHER DATA

The numbers for our key metrics are calculated using internal company data based on the activity of user accounts. We have historically reported the numbers of our daily active users (DAUs), monthly active users (MAUs), and average revenue per user (ARPU) (collectively, our "Facebook metrics") based on user activity only on Facebook and Messenger and not on our other products. Beginning with our Annual Report on Form 10-K for the year ended December 31, 2019, we also report our estimates of the numbers of our daily active people (DAP), monthly active people (MAP), and average revenue per person (ARPP) (collectively, our "Family metrics") based on the activity of users who visited at least one of Facebook, Instagram, Messenger, and WhatsApp (collectively, our "Family" of products) during the applicable period of measurement. We believe our Family metrics better reflect the size of our community and the fact that many people are using more than one of our products. As a result, over time we intend to report our Family metrics as key metrics in place of DAUs, MAUs, and ARPU in our periodic reports filed with the Securities and Exchange Commission.

While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring usage of our products across large online and mobile populations around the world. The methodologies used to measure these metrics require significant judgment and are also susceptible to algorithm or other technical errors. In addition, we are continually seeking to improve our estimates of our user base, and such estimates may change due to improvements or changes in our methodology. We regularly review our processes for calculating these metrics, and from time to time we discover inaccuracies in our metrics or make adjustments to improve their accuracy, which can result in adjustments to our historical metrics. Our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to apply different methodologies for such adjustments. We generally do not intend to update previously disclosed Family metrics for any such inaccuracies or adjustments that are within the error margins disclosed below.

In addition, our Family metrics and Facebook metrics estimates will differ from estimates published by third parties due to differences in methodology.

Family Metrics

Many people in our community have user accounts on more than one of our products, and some people have multiple user accounts within an individual product. Accordingly, for our Family metrics, we do not seek to count the total number of user accounts across our products because we believe that would not reflect the actual size of our community. Rather, our Family metrics represent our estimates of the number of unique people using at least one of Facebook, Instagram, Messenger, and WhatsApp. We do not require people to use a common identifier or link their accounts to use multiple products in our Family, and therefore must seek to attribute multiple user accounts within and across products to individual people. To calculate these metrics, we rely upon complex techniques, algorithms and machine learning models that seek to count the individual people behind user accounts, including by matching multiple user accounts within an individual product and across multiple products when we believe they are attributable to a single person, and counting such group of accounts as one person. These techniques and models require significant judgment, are subject to data and other limitations discussed below, and inherently are subject to statistical variances and uncertainties. We estimate the potential error in our Family metrics primarily based on user survey data, which itself is subject to error as well. While we expect the error margin for our Family metrics to vary from period to period, we estimate that such margin generally will be approximately 3% of our worldwide MAP. At our scale, it is very difficult to attribute multiple user accounts within and across products to individual people, and it is possible that the actual numbers of unique people using our products may vary significantly from our estimates, potentially beyond our estimated error margins. As a result, it is also possible that our Family metrics may indicate changes or trends in user numbers that do not match actual changes or trends.

To calculate our estimates of Family DAP and MAP, we currently use a series of machine learning models that are developed based on internal reviews of limited samples of user accounts and calibrated against user survey data. We apply significant judgment in designing these models and calculating these estimates. For example, to match user accounts within individual products and across multiple products, we use data signals such as similar device information, IP addresses, and user names. We also calibrate our models against data from periodic user surveys of varying sizes and frequency across our products, which are inherently subject to error. The timing and results of such user surveys have in the past contributed, and may in the future contribute, to changes in our reported Family metrics from period to period. In addition, our data limitations may affect our understanding of certain details of our business and increase the risk of error for our Family metrics estimates.
4



Table of Contents
Our techniques and models rely on a variety of data signals from different products, and we rely on more limited data signals for some products compared to others. For example, as a result of limited visibility into encrypted products, we have fewer data signals from WhatsApp user accounts and primarily rely on phone numbers and device information to match WhatsApp user accounts with accounts on our other products. Similarly, although Messenger Kids users are included in our Family metrics, we do not seek to match their accounts with accounts on our other applications for purposes of calculating DAP and MAP. Any loss of access to data signals we use in our process for calculating Family metrics, whether as a result of our own product decisions, actions by third-party browser or mobile platforms, regulatory or legislative requirements, or other factors, also may impact the stability or accuracy of our reported Family metrics, as well as our ability to report these metrics at all. Our estimates of Family metrics also may change as our methodologies evolve, including through the application of new data signals or technologies, product changes, or other improvements in our user surveys, algorithms, or machine learning that may improve our ability to match accounts within and across our products or otherwise evaluate the broad population of our users. In addition, such evolution may allow us to identify previously undetected violating accounts (as defined below).

We regularly evaluate our Family metrics to estimate the percentage of our MAP consisting solely of "violating" accounts. We define "violating" accounts as accounts which we believe are intended to be used for purposes that violate our terms of service, including bots and spam. In the fourth quarter of 2021, we estimated that approximately 3% of our worldwide MAP consisted solely of violating accounts. Such estimation is based on an internal review of a limited sample of accounts, and we apply significant judgment in making this determination. For example, we look for account information and behaviors associated with Facebook and Instagram accounts that appear to be inauthentic to the reviewers, but we have limited visibility into WhatsApp user activity due to encryption. In addition, if we believe an individual person has one or more violating accounts, we do not include such person in our violating accounts estimation as long as we believe they have one account that does not constitute a violating account. From time to time, we disable certain user accounts, make product changes, or take other actions to reduce the number of violating accounts among our users, which may also reduce our DAP and MAP estimates in a particular period. We intend to disclose our estimates of the percentage of our MAP consisting solely of violating accounts on an annual basis. Violating accounts are very difficult to measure at our scale, and it is possible that the actual number of violating accounts may vary significantly from our estimates.

The numbers of Family DAP and MAP discussed in this Quarterly Report on Form 10-Q, as well as ARPP, do not include users on our other products, unless they would otherwise qualify as DAP or MAP, respectively, based on their other activities on our Family products.

Facebook Metrics

We regularly evaluate our Facebook metrics to estimate the number of "duplicate" and "false" accounts among our MAUs. A duplicate account is one that a user maintains in addition to his or her principal account. We divide "false" accounts into two categories: (1) user-misclassified accounts, where users have created personal profiles for a business, organization, or non-human entity such as a pet (such entities are permitted on Facebook using a Page rather than a personal profile under our terms of service); and (2) violating accounts, which represent user profiles that we believe are intended to be used for purposes that violate our terms of service, such as bots and spam. The estimates of duplicate and false accounts are based on an internal review of a limited sample of accounts, and we apply significant judgment in making this determination. For example, to identify duplicate accounts we use data signals such as identical IP addresses and similar user names, and to identify false accounts we look for names that appear to be fake or other behavior that appears inauthentic to the reviewers. Any loss of access to data signals we use in this process, whether as a result of our own product decisions, actions by third-party browser or mobile platforms, regulatory or legislative requirements, or other factors, also may impact the stability or accuracy of our estimates of duplicate and false accounts. Our estimates also may change as our methodologies evolve, including through the application of new data signals or technologies or product changes that may allow us to identify previously undetected duplicate or false accounts and may improve our ability to evaluate a broader population of our users. Duplicate and false accounts are very difficult to measure at our scale, and it is possible that the actual number of duplicate and false accounts may vary significantly from our estimates.

In the fourth quarter of 2021, we estimated that duplicate accounts may have represented approximately 11% of our worldwide MAUs. We believe the percentage of duplicate accounts is meaningfully higher in developing markets such as the Philippines and Vietnam, as compared to more developed markets. In the fourth quarter of 2021, we estimated that false accounts may have represented approximately 5% of our worldwide MAUs. Our estimation of false accounts can vary as a result of episodic spikes in the creation of such accounts, which we have seen originate more frequently in specific countries
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such as Indonesia, Nigeria, and Vietnam. From time to time, we disable certain user accounts, make product changes, or take other actions to reduce the number of duplicate or false accounts among our users, which may also reduce our DAU and MAU estimates in a particular period. We intend to disclose our estimates of the number of duplicate and false accounts among our MAUs on an annual basis.

The numbers of DAUs and MAUs discussed in this Quarterly Report on Form 10-Q, as well as ARPU, do not include users on Instagram, WhatsApp, or our other products, unless they would otherwise qualify as DAUs or MAUs, respectively, based on their other activities on Facebook.

User Geography

Our data regarding the geographic location of our users is estimated based on a number of factors, such as the user's IP address and self-disclosed location. These factors may not always accurately reflect the user's actual location. For example, a user may appear to be accessing Facebook from the location of the proxy server that the user connects to rather than from the user's actual location. The methodologies used to measure our metrics are also susceptible to algorithm or other technical errors, and our estimates for revenue by user location and revenue by user device are also affected by these factors.

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PART I—FINANCIAL INFORMATION
Item 1.Financial Statements
META PLATFORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except for number of shares and par value)
(Unaudited)
March 31,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$14,886 $16,601 
Marketable securities29,004 31,397 
Accounts receivable, net11,390 14,039 
Prepaid expenses and other current assets3,985 4,629 
Total current assets59,265 66,666 
Equity investments6,775 6,775 
Property and equipment, net61,582 57,809 
Operating lease right-of-use assets12,241 12,155 
Intangible assets, net910 634 
Goodwill19,923 19,197 
Other assets3,522 2,751 
Total assets$164,218 $165,987 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$3,246 $4,083 
Partners payable935 1,052 
Operating lease liabilities, current1,159 1,127 
Accrued expenses and other current liabilities15,226 14,312 
Deferred revenue and deposits520 561 
Total current liabilities21,086 21,135 
Operating lease liabilities, non-current12,894 12,746 
Other liabilities7,010 7,227 
Total liabilities40,990 41,108 
Commitments and contingencies
Stockholders' equity:
Common stock, $0.000006 par value; 5,000 million Class A shares authorized, 2,301 million and 2,328 million shares issued and outstanding, as of March 31, 2022 and December 31, 2021, respectively; 4,141 million Class B shares authorized, 413 million and 413 million shares issued and outstanding, as of March 31, 2022 and December 31, 2021, respectively
  
Additional paid-in capital57,512 55,811 
Accumulated other comprehensive loss(1,996)(693)
Retained earnings67,712 69,761 
Total stockholders' equity123,228 124,879 
Total liabilities and stockholders' equity$164,218 $165,987 
See Accompanying Notes to Condensed Consolidated Financial Statements.
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META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
 
 Three Months Ended March 31,
 20222021
Revenue$27,908 $26,171 
Costs and expenses:
Cost of revenue6,005 5,131 
Research and development7,707 5,197 
Marketing and sales3,312 2,843 
General and administrative2,360 1,622 
Total costs and expenses19,384 14,793 
Income from operations8,524 11,378 
Interest and other income, net384 125 
Income before provision for income taxes8,908 11,503 
Provision for income taxes1,443 2,006 
Net income$7,465 $9,497 
Earnings per share attributable to Class A and Class B common stockholders:
Basic$2.74 $3.34 
Diluted$2.72 $3.30 
Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders:
Basic2,725 2,847 
Diluted2,742 2,882 
Share-based compensation expense included in costs and expenses:
Cost of revenue$160 $118 
Research and development1,941 1,408 
Marketing and sales216 174 
General and administrative181 130 
Total share-based compensation expense$2,498 $1,830 
See Accompanying Notes to Condensed Consolidated Financial Statements.
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META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
 
 Three Months Ended March 31,
 20222021
Net income$7,465 $9,497 
Other comprehensive loss:
Change in foreign currency translation adjustment, net of tax(359)(601)
Change in unrealized gain (loss) on available-for-sale investments and other, net of tax(944)(172)
Comprehensive income$6,162 $8,724 
See Accompanying Notes to Condensed Consolidated Financial Statements.
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META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In millions)
(Unaudited)
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Class A and Class B Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsTotal Stockholders' EquityClass A and Class B Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive IncomeRetained EarningsTotal Stockholders' Equity
SharesPar ValueSharesPar Value
Balances at beginning of period2,741 $ $55,811 $(693)$69,761 $124,879 2,849 $ $50,018 $927 $77,345 $128,290 
Issuance of common stock11 — — — — — 11 — — — — — 
Shares withheld related to net share settlement(4)— (797)— (128)(925)(4)— (688)— (389)(1,077)
Share-based compensation— — 2,498 — — 2,498 — — 1,830 — — 1,830 
Share repurchases(34)— — — (9,386)(9,386)(15)— — — (4,110)(4,110)
Other comprehensive loss— — — (1,303)— (1,303)— — — (773)— (773)
Net income— — — — 7,465 7,465 — — — — 9,497 9,497 
Balances at end of period2,714 $ $57,512 $(1,996)$67,712 $123,228 2,841 $ $51,160 $154 $82,343 $133,657 
See Accompanying Notes to Condensed Consolidated Financial Statements.
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META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 Three Months Ended March 31,
 20222021
Cash flows from operating activities
Net income$7,465 $9,497 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization2,156 1,972 
Share-based compensation2,498 1,830 
Deferred income taxes(563)418 
Other(221)(66)
Changes in assets and liabilities:
Accounts receivable2,557 849 
Prepaid expenses and other current assets573 (461)
Other assets(108)(10)
Accounts payable(882)(250)
Partners payable(105)(72)
Accrued expenses and other current liabilities763 (1,681)
Deferred revenue and deposits(52)6 
Other liabilities(5)210 
Net cash provided by operating activities14,076 12,242 
Cash flows from investing activities
Purchases of property and equipment(5,441)(4,303)
Proceeds relating to property and equipment126 31 
Purchases of marketable securities(4,068)(6,231)
Sales of marketable securities5,065 1,650 
Maturities of marketable securities402 3,981 
Acquisitions of businesses and intangible assets(853) 
Other investing activities(10)(2)
Net cash used in investing activities(4,779)(4,874)
Cash flows from financing activities
Taxes paid related to net share settlement of equity awards(925)(1,077)
Repurchases of Class A common stock(9,506)(3,939)
Principal payments on finance leases(233)(151)
Net change in overdraft in cash pooling entities20 (50)
Other financing activities(16)32 
Net cash used in financing activities(10,660)(5,185)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(149)(246)
Net increase (decrease) in cash, cash equivalents, and restricted cash(1,512)1,937 
Cash, cash equivalents, and restricted cash at beginning of the period16,865 17,954 
Cash, cash equivalents, and restricted cash at end of the period$15,353 $19,891 
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents$14,886 $19,513 
Restricted cash, included in prepaid expenses and other current assets294 257 
Restricted cash, included in other assets173 121 
Total cash, cash equivalents, and restricted cash$15,353 $19,891 
See Accompanying Notes to Condensed Consolidated Financial Statements.
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META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended March 31,
20222021
Supplemental cash flow data
Cash paid for income taxes, net$502 $2,907 
Non-cash investing and financing activities:
Property and equipment in accounts payable and accrued expenses and other current liabilities$3,709 $2,198 
Acquisition of businesses in accrued expenses and other current liabilities and other liabilities$73 $118 
Settlement of convertible notes in exchange of equity securities in other current assets$131 $ 
Other current assets through financing arrangement in accrued expenses and other current liabilities$659 $ 
Repurchases of Class A common stock in accrued expenses and other current liabilities$221 $240 
See Accompanying Notes to Condensed Consolidated Financial Statements.
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META PLATFORMS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021.

The condensed consolidated balance sheet as of December 31, 2021 included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP.

The condensed consolidated financial statements include the accounts of Meta Platforms, Inc., its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated.

The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2022.

Use of Estimates

Preparation of condensed consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, valuation of equity investments, income taxes, loss contingencies, valuation of long-lived assets including goodwill, intangible assets, and property and equipment, and their associated estimated useful lives, credit losses of available-for-sale debt securities, credit losses of accounts receivable, fair value of financial instruments, and leases. These estimates are based on management's knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates.

Significant Accounting Policies

There have been no material changes to our significant accounting policies from our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Recently Adopted Accounting Pronouncements

On January 1, 2022, we early adopted Accounting Standards Update (ASU) No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08), which clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers (Topic 606). The adoption of this new standard did not have a material impact on our condensed consolidated financial statements.

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Accounting Pronouncements Not Yet Adopted

In November 2021, the Financial Accounting Standards Board issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which requires the disclosure of government assistance received by most business entities relating to: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity's financial statements. This guidance will be effective for our annual financial statements for the year ended December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements.

Note 2. Revenue

Revenue disaggregated by revenue source and by segment consists of the following (in millions). For comparative purposes, amounts in the prior period have been recast:
 Three Months Ended March 31,
 20222021
Advertising$26,998 $25,439 
Other revenue215 198 
Family of Apps27,213 25,637 
Reality Labs695 534 
Total revenue$27,908 $26,171 

Revenue disaggregated by geography, based on the addresses of our customers, consists of the following (in millions):
 Three Months Ended March 31,
 20222021
United States and Canada(1)
$11,780 $11,436 
Europe(2)
6,638 6,384 
Asia-Pacific6,722 6,101 
Rest of World(2)
2,768 2,250 
Total revenue$27,908 $26,171 
____________________________________
(1)    United States revenue was $11.10 billion and $10.75 billion for the three months ended March 31, 2022 and 2021, respectively.
(2)    Europe includes Russia and Turkey, and Rest of World includes Africa, Latin America, and the Middle East.

Our total deferred revenue was $565 million and $596 million as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, we expect $472 million of our deferred revenue to be realized in less than a year.

Note 3. Earnings per Share

We compute earnings per share (EPS) of Class A and Class B common stock using the two-class method. As the liquidation and dividend rights for both Class A and Class B common stock are identical, the undistributed earnings are allocated on a proportionate basis to the weighted-average number of common shares outstanding for the period.

Basic EPS is computed by dividing net income by the weighted-average number of shares of our Class A and Class B common stock outstanding.

For the calculation of diluted EPS, net income for basic EPS is adjusted by the effect of dilutive securities, including awards under our equity compensation plans.

In addition, the computation of the diluted EPS of Class A common stock assumes the conversion of our Class B
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common stock to Class A common stock, while the diluted EPS of Class B common stock does not assume the conversion of those shares to Class A common stock. Diluted EPS is computed by dividing the resulting net income by the weighted-average number of fully diluted common shares outstanding.

For the three months ended March 31, 2022, 48 million shares of Class A common stock equivalents of RSUs were excluded from the diluted EPS calculation as including them would have an anti-dilutive effect. RSUs with anti-dilutive effect were not material for the three months ended, March 31, 2021.

Basic and diluted EPS are the same for each class of common stock because they are entitled to the same liquidation and dividend rights.

The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except per share amounts): 
 Three Months Ended March 31,
 20222021
 Class AClass BClass AClass B
Basic EPS:
Numerator
Net income$6,334 $1,131 $8,025 $1,472 
Denominator
Shares used in computation of basic earnings per share2,312 413 2,406 441 
Basic EPS$2.74 $2.74 $3.34 $3.34 
Diluted EPS:
Numerator
Net income$6,334 $1,131 $8,025 $1,472 
Reallocation of net income as a result of conversion of Class B to Class A common stock1,131  1,472  
Reallocation of net income to Class B common stock (7) (18)
Net income for diluted EPS$7,465 $1,124 $9,497 $1,454 
Denominator
Shares used in computation of basic earnings per share2,312 413 2,406 441 
Conversion of Class B to Class A common stock413  441  
Weighted-average effect of dilutive RSUs17  35  
Shares used in computation of diluted earnings per share2,742 413 2,882 441 
Diluted EPS$2.72 $2.72 $3.30 $3.30 
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Note 4. Cash and Cash Equivalents and Marketable Securities

The following table sets forth the cash and cash equivalents and marketable securities by major security type (in millions):
March 31, 2022December 31, 2021
Cash and cash equivalents:
Cash$7,090 $7,308 
Money market funds7,350 8,850 
U.S. government securities81 25 
U.S. government agency securities 108 
Certificates of deposit and time deposits351 250 
Corporate debt securities14 60 
Total cash and cash equivalents14,886 16,601 
Marketable securities:
U.S. government securities9,721 10,901 
U.S. government agency securities5,434 5,927 
Corporate debt securities13,849 14,569 
Total marketable securities29,004 31,397 
Total cash and cash equivalents and marketable securities$43,890 $47,998 

The following table summarizes our available-for-sale marketable securities with unrealized losses as of March 31, 2022, aggregated by major security type and the length of time that individual securities have been in a continuous loss position (in millions):
March 31, 2022
Less than 12 months12 months or greaterTotal
Fair ValueUnrealized lossesFair ValueUnrealized lossesFair ValueUnrealized losses
U.S. government securities$7,488 $(218)$214 $(11)$7,702 $(229)
U.S. government agency securities3,345 (110)1,736 (111)5,081 (221)
Corporate debt securities11,953 (507)589 (39)12,542 (546)
Total$22,786 $(835)$2,539 $(161)$25,325 $(996)

The gross unrealized gains on our marketable securities were not material as of March 31, 2022 and December 31, 2021. The gross unrealized losses were $996 million and not material as of March 31, 2022 and December 31, 2021, respectively. The allowance for credit losses on our marketable securities was not material as of March 31, 2022 and December 31, 2021.

The following table classifies our marketable securities by contractual maturities (in millions):
March 31, 2022
Due within one year$2,452 
Due after one year to five years26,552 
Total$29,004 

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Note 5. Equity Investments

Our equity investments are investments in equity securities of privately-held companies without readily determinable fair values. The following table summarizes our equity investments that were measured using measurement alternative and equity method (in millions):
March 31, 2022December 31, 2021
Equity investments under measurement alternative:
Initial cost$6,480 $6,480 
Cumulative upward adjustments311 311 
Cumulative impairment/downward adjustments(50)(50)
Carrying value6,741 6,741 
Equity investments under equity method34 34 
Total equity investments$6,775 $6,775 

Note 6. Fair Value Measurements

The following table summarizes our assets measured at fair value and the classification by level of input within the fair value hierarchy (in millions):
  Fair Value Measurement at Reporting Date Using
DescriptionMarch 31, 2022Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Cash equivalents:
Money market funds$7,350 $7,350 $ 
U.S. government securities81 81  
Certificates of deposit and time deposits351  351 
Corporate debt securities14  14 
Marketable securities:
U.S. government securities9,721 9,721  
U.S. government agency securities5,434 5,434  
Corporate debt securities13,849  13,849 
Total cash equivalents and marketable securities$36,800 $22,586 $14,214 
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  Fair Value Measurement at Reporting Date Using
DescriptionDecember 31, 2021Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Cash equivalents:
Money market funds$8,850 $8,850 $ 
U.S. government securities25 25  
U.S. government agency securities108 108  
Certificates of deposit and time deposits250  250 
Corporate debt securities60  60 
Marketable securities:
U.S. government securities10,901 10,901  
U.S. government agency securities5,927 5,927  
Corporate debt securities14,569  14,569 
Total cash equivalents and marketable securities$40,690 $25,811 $14,879 

We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value.

We also have assets and liabilities classified within Level 3 because factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. As of March 31, 2022, assets and liabilities remeasured at fair value within Level 3 during the three months ended March 31, 2022 were not material. As of December 31, 2021, included in the total $6.78 billion of equity investments, $913 million was remeasured at fair value during the year ended December 31, 2021 and was classified within Level 3 of the fair value measurement hierarchy on a non-recurring basis. The gains and losses as the result of the remeasurements were not material for the three months ended March 31, 2022 and 2021. For information regarding equity investments, see Note 5 — Equity Investments.

Note 7. Property and Equipment

Property and equipment, net consists of the following (in millions): 
March 31, 2022December 31, 2021
Land$1,713 $1,688 
Servers and network assets27,094 25,584 
Buildings23,154 22,531 
Leasehold improvements6,043 5,795 
Equipment and other5,045 4,764 
Finance lease right-of-use assets2,955 2,840 
Construction in progress17,031 14,687 
Property and equipment, gross83,035 77,889 
Less: Accumulated depreciation(21,453)(20,080)
Property and equipment, net$61,582 $57,809 

Construction in progress includes costs mostly related to construction of data centers, network infrastructure, and office buildings. Depreciation expense on property and equipment was $2.12 billion and $1.85 billion for the three months ended March 31, 2022 and 2021, respectively.
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Note 8. Leases

We have entered into various non-cancelable operating lease agreements mostly for certain of our offices, data centers, colocations, and land. We have also entered into various non-cancelable finance lease agreements for certain network infrastructure. Our leases have original lease periods expiring between the remainder of 2022 and 2093. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.

The components of lease costs are as follows (in millions):
Three Months Ended March 31,
20222021
Finance lease cost
Amortization of right-of-use assets$98 $81 
Interest4 4 
Operating lease cost411 362 
Variable lease cost and other, net90 66 
Total lease cost$603 $513 

Supplemental balance sheet information related to leases is as follows:
March 31, 2022December 31, 2021
Weighted-average remaining lease term
Finance leases13.9 years13.9 years
Operating leases12.8 years13.0 years
Weighted-average discount rate
Finance leases2.7 %2.7 %
Operating leases2.8 %2.8 %

The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2022 (in millions):
Operating LeasesFinance Leases
The remainder of 2022$1,061 $78 
20231,600 69 
20241,565 47 
20251,403 47 
20261,344 47 
Thereafter10,312 434 
Total undiscounted cash flows17,285 722 
Less: Imputed interest(3,232)(117)
Present value of lease liabilities$14,053 $605 
Lease liabilities, current$1,159 $81 
Lease liabilities, non-current12,894 524 
Present value of lease liabilities$14,053 $605 

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The table above does not include lease payments that were not fixed at commencement or lease modification. As of March 31, 2022, we have additional operating and finance leases, that have not yet commenced, with lease obligations of approximately $9.78 billion and $1.63 billion, respectively, mostly for offices, data centers, and network infrastructure. These operating and finance leases will commence between the remainder of 2022 and 2028 with lease terms of greater than one year to 30 years.

Supplemental cash flow information related to leases is as follows (in millions):
Three Months Ended March 31,
20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$389 $329 
Operating cash flows for finance leases$4 $4 
Financing cash flows for finance leases$233 $151 
Lease liabilities arising from obtaining right-of-use assets:
Operating leases$539 $1,282 
Finance leases$52 $24 

Note 9. Acquisitions, Goodwill and Intangible Assets

During the three months ended March 31, 2022, we completed several business acquisitions with total cash consideration transferred of $774 million, which in aggregate was allocated to $182 million of intangible assets, $759 million of goodwill, and $167 million of net liabilities assumed. Goodwill generated from all business acquisitions completed was primarily attributable to expected synergies from future growth and potential monetization opportunities. The amount of goodwill generated that was deductible for tax purposes was not material. Acquisition-related costs were immaterial and were expensed as incurred in the condensed consolidated statements of operations. Pro forma historical results of operations related to these business acquisitions have not been presented because they are not material to our condensed consolidated financial statements, either individually or in the aggregate. We have included the financial results of these acquired businesses in our condensed consolidated financial statements from their respective dates of acquisition.

Changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2022 are as follows (in millions): 

Family of AppsReality LabsTotal
Goodwill at December 31, 2021$18,458 $739 $19,197 
Acquisitions759  759 
Adjustments (33)(33)
Goodwill at March 31, 2022$19,217 $706 $19,923 

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The following table sets forth the major categories of the intangible assets and the weighted‑average remaining useful lives for those assets that are not already fully amortized (in millions):

March 31, 2022December 31, 2021
Weighted-Average Remaining Useful Lives
(in years)
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Acquired technology4.2$1,534 $(1,194)$340 $1,412 $(1,169)$243 
Acquired patents3.2827 (731)96 827 (722)105 
Trade names4.1623 (602)21 644 (633)11 
Other9.6188 (99)89 176 (167)9 
Total finite-lived assets3,172 (2,626)546 3,059 (2,691)368 
Total indefinite-lived assetsN/A364 — 364 266 — 266 
Total intangible assets$3,536 $(2,626)$910 $3,325 $(2,691)$634 

Amortization expense of intangible assets was $40 million and $118 million for the three months ended March 31, 2022 and 2021, respectively.

As of March 31, 2022, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows (in millions):

The remainder of 2022$142 
2023133 
2024105 
202567 
202627 
Thereafter72 
Total$546 

Note 10. Commitments and Contingencies

Guarantee

In 2018, we established a multi-currency notional cash pool for certain of our entities with a third-party bank provider. Actual cash balances are not physically converted and are not commingled between participating legal entities. As part of the notional cash pool agreement, the bank extends overdraft credit to our participating entities as needed, provided that the overall notionally pooled balance of all accounts in the pool at the end of each day is at least zero. In the unlikely event of a default by our collective entities participating in the pool, any overdraft balances incurred would be guaranteed by Meta Platforms, Inc.

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Contractual Commitments

We have $22.73 billion of non-cancelable contractual commitments as of March 31, 2022, which are primarily related to our investments in servers, network infrastructure, and Reality Labs. The following is a schedule, by years, of non-cancelable contractual commitments as of March 31, 2022 (in millions):
The remainder of 2022$13,940 
20233,851 
20241,804 
2025386 
2026205 
Thereafter2,542 
Total$22,728 

Additionally, as part of the normal course of business, we have entered into multi-year agreements to purchase renewable energy that do not specify a fixed or minimum volume commitment or to purchase certain server components that do not specify a fixed or minimum price commitment. We enter into these agreements in order to secure either volume or price. Using the projected market prices or expected volume consumption, the total estimated spend as of March 31, 2022 is approximately $8.75 billion, the majority of which is due beyond five years. The ultimate spend under these agreements may vary and will be based on prevailing market prices or actual volume purchased.

Legal and Related Matters

Beginning on March 20, 2018, multiple putative class actions and derivative actions were filed in state and federal courts in the United States and elsewhere against us and certain of our directors and officers alleging violations of securities laws, breach of fiduciary duties, and other causes of action in connection with our platform and user data practices as well as the misuse of certain data by a developer that shared such data with third parties in violation of our terms and policies, and seeking unspecified damages and injunctive relief. Beginning on July 27, 2018, two putative class actions were filed in federal court in the United States against us and certain of our directors and officers alleging violations of securities laws in connection with the disclosure of our earnings results for the second quarter of 2018 and seeking unspecified damages. These two actions subsequently were transferred and consolidated in the U.S. District Court for the Northern District of California with the putative securities class action described above relating to our platform and user data practices. On September 25, 2019, the district court granted our motion to dismiss the consolidated putative securities class action, with leave to amend. On November 15, 2019, a second amended complaint was filed in the consolidated putative securities class action. On August 7, 2020, the district court granted our motion to dismiss the second amended complaint, with leave to amend. On October 16, 2020, a third amended complaint was filed in the consolidated putative securities class action. On December 20, 2021, the district court granted our motion to dismiss the third amended complaint, with prejudice. On January 17, 2022, the plaintiffs filed a notice of appeal of the order dismissing their case, and the appeal is now pending before the U.S. Court of Appeals for the Ninth Circuit. With respect to the multiple putative class actions filed against us beginning on March 20, 2018 alleging fraud and violations of consumer protection, privacy, and other laws in connection with the same matters, several of the cases brought on behalf of consumers in the United States were consolidated in the U.S. District Court for the Northern District of California. On September 9, 2019, the court granted, in part, and denied, in part, our motion to dismiss the consolidated putative consumer class action. In addition, our platform and user data practices, as well as the events surrounding the misuse of certain data by a developer, became the subject of U.S. Federal Trade Commission (FTC), state attorneys general, and other government inquiries in the United States, Europe, and other jurisdictions. We entered into a settlement and modified consent order to resolve the FTC inquiry, which took effect in April 2020. Among other matters, our settlement with the FTC required us to pay a penalty of $5.0 billion which was paid in April 2020 upon the effectiveness of the modified consent order. The state attorneys general inquiry and certain government inquiries in other jurisdictions remain ongoing. On July 16, 2021, a stockholder derivative action was filed in Delaware Chancery Court against certain of our directors and officers asserting breach of fiduciary duty and related claims relating to our historical platform and user data practices, as well as our settlement with the FTC. On July 20, 2021, other stockholders filed an amended derivative complaint in a related Delaware Chancery Court action, asserting breach of fiduciary duty and related claims against certain of our current and former directors and officers in connection with our historical platform and user data practices. On
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November 4, 2021, the lead plaintiffs filed a second amended and consolidated complaint in the stockholder derivative action. We believe the lawsuits described above are without merit, and we are vigorously defending them.

We also notify the Irish Data Protection Commission (IDPC), our lead European Union privacy regulator under the General Data Protection Regulation (GDPR), of certain other personal data breaches and privacy issues, and are subject to inquiries and investigations by the IDPC and other European regulators regarding various aspects of our regulatory compliance. The GDPR is still a relatively new law and draft decisions in investigations by the IDPC are subject to review by other European privacy regulators as part of the GDPR's consistency mechanism, which may lead to significant changes in the final outcome of such investigations. As a result, the interpretation and enforcement of the GDPR, as well as the imposition and amount of penalties for non-compliance, are subject to significant uncertainty. Although we are vigorously defending our regulatory compliance, we have accrued significant amounts for loss contingencies related to these inquiries and investigations in Europe, and we believe there is a reasonable possibility that additional accruals for losses related to these matters could be material in the aggregate.

We are also subject to other government inquiries and investigations relating to our business activities and disclosure practices. For example, beginning in September 2021, we became subject to government investigations and requests relating to a former employee's allegations and release of internal company documents concerning, among other things, our algorithms, advertising and user metrics, and content enforcement practices, as well as misinformation and other undesirable activity on our platform, and user well-being. Beginning on October 27, 2021, multiple putative class actions and derivative actions were filed in the U.S. District Court for the Northern District of California against us and certain of our directors and officers alleging violations of securities laws, breach of fiduciary duties, and other causes of action in connection with the same matters. We believe these lawsuits are without merit, and we are vigorously defending them.

On March 8, 2022, a putative class action was filed in the U.S. District Court for the Northern District of California against us and certain of our directors and officers alleging violations of securities laws in connection with the disclosure of our earnings results for the fourth quarter of 2021 and seeking unspecified damages. We believe this lawsuit is without merit, and we are vigorously defending it.

Beginning on August 15, 2018, multiple putative class actions were filed against us alleging that we inflated our estimates of the potential audience size for advertisements, resulting in artificially increased demand and higher prices. The cases were consolidated in the U.S. District Court for the Northern District of California and seek unspecified damages and injunctive relief. In a series of rulings in 2019, 2021, and 2022, the court dismissed certain of the plaintiffs' claims, but permitted its fraud and unfair competition claims to proceed. On March 29, 2022, the court granted the plaintiffs' motion for class certification. We believe this lawsuit is without merit, and we are vigorously defending it.