Fair Value Measurement of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Summary of financial assets and liabilities measured at fair value on a recurring basis

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019:

	March 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents(1)	$	1,238	$	—	$	1,238
Short-term investments(2):
U.S. government and agency securities	50		—		50
Foreign government and agency securities	604		—		604
Corporate debt securities	1,406		—		1,406
Total short-term investments	$	2,060	$	—	$	2,060
Funds receivable and customer accounts(3):
Cash and cash equivalents	916		—		916
U.S. government and agency securities	4,821		—		4,821
Foreign government and agency securities	2,804		—		2,804
Corporate debt securities	1,989		—		1,989
Total funds receivable and customer accounts	$	10,530	$	—	$	10,530
Derivatives	366		—		366
Long-term investments(2),(4):
U.S. government and agency securities	100		—		100
Foreign government and agency securities	126		—		126
Corporate debt securities	435		—		435
Marketable equity securities	1,151		1,151		—
Total long-term investments	$	1,812	$	1,151	$	661
Total financial assets	$	16,006	$	1,151	$	14,855
Liabilities:
Derivatives	$	209	$	—	$	209

⁽¹⁾ Excludes cash of $6.6 billion not measured and recorded at fair value.

⁽²⁾ Excludes restricted cash of $74 million and time deposits of $204 million not measured and recorded at fair value.

⁽³⁾ Excludes cash, time deposits, and funds receivable of $12.3 billion underlying funds receivable and customer accounts not measured and recorded at fair value.

⁽⁴⁾ Excludes non-marketable equity securities of $548 million measured using the Measurement Alternative or equity method accounting.

	December 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents(1)	$	2,835	$	—	$	2,835
Short-term investments(2):
Foreign government and agency securities	757		—		757
Corporate debt securities	1,977		—		1,977
Total short-term investments	2,734		—		2,734
Funds receivable and customer accounts(3):
Cash and cash equivalents	683		—		683
U.S. government and agency securities	4,996		—		4,996
Foreign government and agency securities	2,653		—		2,653
Corporate debt securities	2,541		—		2,541
Total funds receivable and customer accounts	10,873		—		10,873
Derivatives	135		—		135
Long-term investments(4):
U.S. government and agency securities	140		—		140
Foreign government and agency securities	207		—		207
Corporate debt securities	678		—		678
Marketable equity securities	1,314		1,314		—
Total long-term investments	2,339		1,314		1,025
Total financial assets	$	18,916	$	1,314	$	17,602
Liabilities:
Derivatives	$	122	$	—	$	122

⁽¹⁾ Excludes cash of $4.5 billion not measured and recorded at fair value.

⁽²⁾ Excludes restricted cash of $64 million and time deposits of $614 million not measured and recorded at fair value.

⁽³⁾ Excludes cash, time deposits, and funds receivable of $11.7 billion underlying funds receivable and customer accounts not measured and recorded at fair value.

⁽⁴⁾ Excludes non-marketable equity securities of $524 million measured using the Measurement Alternative or equity method accounting.

Summary of investments under the fair value option

The following table summarizes the estimated fair value of our available-for-sale debt securities under the fair value option as of March 31, 2020 and December 31, 2019:

	March 31, 2020		December 31, 2019
	(In millions)
Funds receivable and customer accounts	$	1,283	$	1,690
Short-term investments	$	365	$	246

The following table summarizes the gains (losses) from fair value changes recognized in other income (expense), net related to the available-for-sale debt securities under the fair value option for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
	2020			2019
	(In millions)
Funds receivable and customer accounts	$	(20	)	$	(29	)
Short-term investments	$	(18	)	$	—

Summary of financial assets and liabilities measured at fair value on a non-recurring basis

The following tables summarize our financial assets and liabilities held as of March 31, 2020 and December 31, 2019 for which a non-recurring fair value measurement was recorded during the three months ended March 31, 2020 and the year ended December 31, 2019, respectively:

	March 31, 2020		Significant Other Observable Inputs (Level 2)
	(In millions)
Non-marketable equity investments measured using the Measurement Alternative(1)	$	128	$	128

⁽¹⁾ Excludes non-marketable equity investments of $392 million accounted for under the Measurement Alternative for which no observable price changes occurred during the three months ended March 31, 2020.

	December 31, 2019		Significant Other Observable Inputs (Level 2)
	(In millions)
Non-marketable equity investments measured using the Measurement Alternative(1)	$	303	$	303

⁽¹⁾ Excludes non-marketable equity investments of $194 million accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2019.