Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Fair Value Disclosure and Measurement on Recurring Basis

Assets and liabilities measured on a recurring basis or disclosed at fair value are summarized below:

			Fair value measurement or disclosure at December 31, 2021 using
	Total fair value at December 31, 2021		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	RMB		RMB		RMB		RMB
	(In millions)
Fair value disclosure
Cash equivalents:
Time deposits		16,262				16,262
Money market funds		3		3
Short-term investments:
Held-to-maturity debt investments		141,584				141,584
Long-term investments:
Time deposits and held-to-maturity debt investments		8,014				8,014
Notes payable, current portion		10,659				10,659
Notes payable, non-current portion		45,073				45,073
Convertible senior notes, non-current portion		9,547				9,547
Fair value measurements on a recurring basis
Short-term investments:
Available-for-sale debt investments		2,557				2,557
Long-term investments:
Equity investments at fair value with readily determinable fair value		16,375		16,375
Equity investments without readily determinable fair value using NAV practical expedient(i)		957
Investments accounted for at fair value		4,228		457				3,771
Available-for-sale debt investments		2,262						2,262
Other non-current assets
Derivative instruments		149				149
Total assets measured at fair value		26,528		16,832		2,706		6,033
Amounts due to related parties, current:
Financial liability		288				288
Total liabilities measured at fair value		288				288

					Fair value measurement or disclosure at December 31, 2022 using
	Total fair value at December 31, 2022				Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	RMB		US$		RMB		RMB		RMB
	(In millions)
Fair value disclosure
Cash equivalents:
Time deposits		12,968		1,880				12,968
Money market funds		3		—		3
Short-term investments:
Held-to-maturity debt investments		120,464		17,466				120,464
Long-term investments:
Long-term time deposits and held-to-maturity investments		23,688		3,434				23,688
Notes payable, current portion		6,812		988				6,812
Convertible senior notes, current portion		6,756		980				6,756
Notes payable, non-current portion		36,268		5,258				36,268
Convertible senior notes, non-current portion		7,253		1,052				7,253
Fair value measurements on a recurring basis
Short-term investments:
Available-for-sale debt investments		855		124				855
Long-term investments:
Equity investments at fair value with readily determinable fair value		12,100		1,754		12,100
Equity investments without readily determinable fair value using NAV practical expedient(i)		945		137
Investments accounted for at fair value		4,616		669		97				4,519
Available-for-sale debt investments		2,447		355						2,447
Other non-current assets:
Derivative instruments		1,416		205				1,416
Total assets measured at fair value		22,379		3,244		12,197		2,271		6,966
Amounts due to related parties, current:
Financial liability		328		48				328
Total liabilities measured at fair value		328		48				328

(i) Investments are measured at fair value using NAV as a practical expedient. These investments have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

Schedule of rolling forward of Investments accounted for at fair value categorized within Level 3 under the fair value hierarchy

Investments accounted for at fair value:

	Amounts
	RMB
	(In millions)
Balance at December 31, 2020		2,238
Additions		475
Disposals		(59	)
Net unrealized fair value increase recognized in earnings		1,187
Foreign currency translation adjustments		(20	)
Transition to assets categorized within level 1(i)		(50	)
Balance at December 31, 2021		3,771
Additions		343
Disposals		(212	)
Net unrealized fair value increase recognized in earnings		502
Foreign currency translation adjustments		115
Balance at December 31, 2022		4,519
Balance at December 31, 2022, in US$		655

(i) The fair value hierarchy of certain equity investments were transferred from level 3 to level 1 due to the public listing of the investees during the year ended December 31, 2021.

Schedule of rolling forward of available-for-sale debt investments categorized within Level 3 under the fair value hierarchy

Available-for-sale debt investments:

	Amounts
	RMB
	(In millions)
Balance at December 31, 2020		2,607
Additions		67
Conversion to equity investment		(18	)
Share of losses in excess of equity method investment in ordinary shares		(207	)
Net unrealized fair value change recognized in other comprehensive income		(243	)
Accrued interest		75
Foreign currency translation adjustments		(19	)
Balance at December 31, 2021		2,262
Additions		10
Conversion from equity investment		657
Share of losses in excess of equity method investment in ordinary shares		(161	)
Net unrealized fair value change recognized in other comprehensive income		(432	)
Accrued interest		78
Foreign currency translation adjustments		33
Balance at December 31, 2022		2,447
Balance at December 31, 2022, in US$		355

Summary of Assets Measured at Fair Value on a Non-Recurring Basis

The following table summarizes the Group’s financial assets held as of December 31, 2021 and 2022 for which a non-recurring fair value measurement was recorded during the years ended December 31, 2021 and 2022:

	Total Balance				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Fair value adjustment				Impairment
	RMB		US$		RMB		RMB		RMB		RMB		US$		RMB			US$
	(In millions)
Fair value measurements on a non-recurring basis
As of December 31, 2021
Long-term investments(i)		9,653						145		9,508		896				(4,316	)
Produced content monetized on its own(ii)		30								30						(161	)
As of December 31, 2022
Long-term investments(i)		3,466		503		99		29		3,338		256		37		(3,025	)		(438	)
Produced content monetized on its own (ii)		85		12						85						(68	)		(10	)

(i) Due to factors such as the outbreak of coronavirus (COVID-19) resulting in declined financial performances and changes in business circumstances of certain investees, the Group recognized impairment charges of long-term investments in the consolidated statement of comprehensive income during the years ended December 31, 2021 and 2022. For equity securities accounted for under the measurement alternative, when there are observable price changes in orderly transactions for identical or similar investments of the same issuer, the investments are re-measured to fair value.

(ii) Due to adverse changes in the expected performance of certain produced content and the reduced amount of ultimate revenue expected to be recognized, iQIYI performed an assessment to determine whether the fair value was less than unamortized content costs. iQIYI uses a discounted cash flow approach to estimate the fair value of the produced content titles predominantly monetized on its own. The significant unobservable inputs (level 3) include forecasted future revenues, production costs required to complete the content and exploitation and participation costs. iQIYI considers the historical performance of similar content, the forecasted performance and/or preliminary actual performance subsequent to the release of the produced content in estimating the fair value. Based on the above assessment, certain produced content predominantly monetized on its own were determined to be impaired and re-measured to the fair value as of each quarter end. Impairment charges of RMB205 million, RMB161 million and RMB68 million (US$10 million) were recognized for produced content predominantly monetized on its own and was recognized as cost of revenues in the consolidated statements of comprehensive income for the years ended December 31, 2020, 2021 and 2022, respectively. The outbreak of COVID-19 during the first quarter of 2020 negatively impacted iQIYI’s operations and financial performance and resulted in a downward adjustment to forecasted advertising revenues for the Mainland China film group that resulted in the fair value of the Mainland China film group being less than its corresponding carrying amount. As a result, an impairment charge of RMB390 million related to licensed copyrights (Note 6) and RMB210 million related to produced content (Note 7), respectively, was recognized as cost of revenues for the year ended December 31, 2020.