Fair Value Measurement of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of fair value of assets and liabilities measured on a recurring basis

The following tables present our financial assets and liabilities measured at fair value on a recurring basis (in millions):

 

	June 30, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant  Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	2,128	$	2,128	$	—	$	—
Short-term investments:
Restricted cash	15		15		—		—
Corporate debt securities	4,598		—		4,598		—
Government and agency securities	125		—		125		—
Total short-term investments	4,738		15		4,723		—
Equity investment in Adevinta	10,354		10,354		—		—
Derivatives	1,180		—		57		1,123
Long-term investments:
Corporate debt securities	636		—		636		—
Government and agency securities	109		—		109		—
Total long-term investments	745		—		745		—
Total financial assets	$	19,145	$	12,497	$	5,525	$	1,123
Liabilities:
Derivatives	$	26	$	—	$	26	$	—

	December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant  Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	1,101	$	890	$	211	$	—
Short-term investments:
Restricted cash	137		137		—		—
Corporate debt securities	2,255		—		2,255		—
Total short-term investments	2,392		137		2,255		—
Derivatives	1,113		—		62		1,051
Long-term investments:
Corporate debt securities	286		—		286		—
Total long-term investments	286		—		286		—
Total financial assets	$	4,892	$	1,027	$	2,814	$	1,051
Liabilities:
Derivatives	$	44	$	—	$	44	$	—

Schedule of assets measured using significant unobservable inputs

The following tables present a reconciliation of the opening to closing balance of assets measured using significant unobservable inputs (Level 3) (in millions):

	June 30, 2021		December 31, 2020
Opening balance at beginning of period	$	1,051	$	281
Change in fair value	72		770
Closing balance at end of period	$	1,123	$	1,051

The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the warrant as of June 30, 2021 (in millions):

	Fair value		Valuation technique	Unobservable Input	Range (weighted average)(1)
Warrant	$	1,123	Black-Scholes and Monte Carlo	Probability of vesting	0.0% - 95.0% (71%)
				Equity volatility	24.1% - 61.0% (42%)

(1) Probability of vesting were weighted by the unadjusted value of the tranches. For volatility, the average represents the arithmetic average of the points within the range and is not weighted by the relative fair value or notional amount.