XML 27 R13.htm IDEA: XBRL DOCUMENT v3.22.4
Fair Value Measurements and Financial Instruments
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis (in millions):

December 31, 2021
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$1,923 $— $— $1,923 
Certificates of deposit31 — — 31 
Commercial paper— 164 — 164 
Corporate debt securities— 42 — 42 
1,954 206 — 2,160 
Marketable securities:
Certificates of deposit364 — — 364 
Government bonds(1)
— 1 — 1 
Commercial paper— 993 — 993 
Corporate debt securities— 863 — 863 
Mortgage-backed and asset-backed securities— 34 — 34 
364 1,891 — 2,255 
Funds receivable and amounts held on behalf of customers:
Money market funds466 — — 466 
Prepaids and other current assets:
Foreign exchange derivative assets— 26 — 26 
Other assets, noncurrent:
Corporate debt securities— — 10 10 
Total assets at fair value$2,784 $2,123 $10 $4,917 
Liabilities
Accrued expenses and other current liabilities:
Foreign exchange derivative liabilities$— $10 $— $10 
Total liabilities at fair value$— $10 $— $10 

(1)Includes U.S. government and government agency debt securities
December 31, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$2,326 $— $— $2,326 
Certificates of deposit26 — — 26 
Government bonds(1)
— 32 — 32 
Commercial paper— 327 — 327 
Corporate debt securities— 68 — 68 
2,352 427 — 2,779 
Marketable securities:
Certificates of deposit573 — — 573 
Government bonds(1)
— 83 — 83 
Commercial paper— 574 — 574 
Corporate debt securities— 959 — 959 
Mortgage-backed and asset-backed securities— 34 — 34 
Marketable equity securities1 — — 1 
574 1,650 — 2,224 
Funds receivable and amounts held on behalf of customers:
Money market funds501 — — 501 
Prepaids and other current assets:
Foreign exchange derivative assets— 14 — 14 
Other assets, noncurrent:
Corporate debt securities— — 4 4 
Total assets at fair value$3,427 $2,091 $4 $5,522 
Liabilities
Accrued expenses and other current liabilities:
Foreign exchange derivative liabilities$— $31 $— $31 
Total liabilities at fair value$— $31 $— $31 

(1)Includes U.S. government and government agency debt securities

The following table presents additional information about investments that are measured at fair value for which the Company has utilized Level 3 inputs to determine fair value (in millions):

December 31,
20212022
Derivative
Warrant
Liability		Other
Assets,
Noncurrent		Other
Assets,
Noncurrent
Balance, beginning of year$985 $11 $10 
Reclassifications to equity(1,277)— — 
Total realized and unrealized gains (losses):
Included in earnings292 — — 
Included in other comprehensive income (loss)— (1)(6)
Balance, end of year$— $10 $4 
Changes in unrealized gains or losses included in other comprehensive income (loss) related to investments held at the reporting date$— $(1)$(6)

There were no transfers of financial instruments between valuation levels during the years ended December 31, 2021 and 2022.

The Company amended the anti-dilution feature in the warrant agreements associated with the Second Lien Credit Agreement, as defined
in Note 9, Debt, which resulted in a change in classification from liability to equity, on March 30, 2021 (the “Modification Date”). The Company recorded a marked-to-market loss of $292.0 million through the first quarter of 2021, which was recorded in other income (expense), net on the consolidated statements of operations. Subsequent to the Modification Date, the warrants were no longer subject to marked-to-market charges. The balance of $1.3 billion was then reclassified from liability to equity as the amended warrants met the requirements for equity classification. Refer to Note 9, Debt, for additional information.
Derivatives Not Designated as Hedging Instruments

As of December 31, 2021, the fair value of foreign exchange derivative assets and liabilities totaled $25.9 million and $10.3 million, respectively, with the aggregate notional amount totaling $2.4 billion. As of December 31, 2022, the fair value of foreign exchange derivative assets and liabilities totaled $14.0 million and $31.2 million, respectively, with the aggregate notional amount totaling $2.4 billion. Derivative assets are included in prepaids and other current assets and derivative liabilities are included in accrued expenses and other current liabilities in the consolidated balance sheets.

The Company recorded total net realized gains (losses) of $(21.7) million, $19.3 million, and $92.0 million, and net unrealized gains (losses) of $(24.6) million, $35.4 million and $(32.9) million for the years ended December 31, 2020, 2021, and 2022, respectively, related to foreign exchange derivative assets and liabilities. The realized and unrealized gains and losses on non-designated derivatives are reported in other income (expense), net in the consolidated statements of operations. The cash flows related to derivative instruments not designated as hedging instruments are classified within operating activities in the consolidated statements of cash flows.

The Company has master netting arrangements with the respective counterparties to its derivative contracts, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. The Company presents its derivative assets and derivative liabilities at their gross fair values in its consolidated balance sheets. As of December 31, 2021, the potential effect of these rights of set-off associated with the Company’s derivative contracts would be a reduction to both assets and liabilities of $10.3 million, resulting in net derivative assets of $15.6 million. As of December 31, 2022, the potential effect of these rights of set-off associated with the Company’s derivative contracts would be a reduction to both assets and liabilities of $10.7 million, resulting in net derivative assets of $3.2 million and net derivative liabilities of $20.5 million.