Balance Sheet Components

12 Months Ended

Dec. 31, 2021

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when we have satisfied our performance obligation and have the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions reasonable and supportable forecasts and other factors that may affect our customers’ ability to pay. The allowance for doubtful accounts and authorized credits was $74 million and $136 million as of December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021, we reported allowances for doubtful accounts of $42 million reflecting a decrease of $55 million, net of write-offs of $134 million for the year ended December 31, 2021.

Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized during the year ended December 31, 2021 that was included in the deferred revenue balance at the beginning of the period was $47 million. The amount of revenue recognized during the year ended December 31, 2020 that was included in the deferred revenue balance at the beginning of the period was $64 million.

Cash, cash equivalents and restricted cash


	December 31,
	2021		2020
	(In millions)
Cash and cash equivalents	$	1,379	$	1,101
Customer accounts	5		—
Restricted cash included in short-term investments	22		137
Cash, cash equivalents and restricted cash	$	1,406	$	1,238

Customer accounts and funds receivable


	December 31,
	2021		2020
	(In millions)
Cash and cash equivalents	$	5	$	—
Funds receivable	676		290
Customer accounts and funds receivable	$	681	$	290

Other Current Assets


	December 31,
	2021		2020
	(In millions)
Payment processor advances	$	453	$	363
Prepaid expenses	114		109
Other	442		308
Other current assets	$	1,009	$	780

Property and Equipment, Net


	December 31,
	2021		2020
	(In millions)
Computer equipment and software	$	4,747	$	4,585
Land and buildings, including building improvements	779		744
Leasehold improvements	356		320
Furniture and fixtures	140		141
Construction in progress and other	77		155
Property and equipment, gross	6,099		5,945
Accumulated depreciation	(4,863)		(4,653)
Property and equipment, net	$	1,236	$	1,292

Total depreciation expense on our property and equipment for the years ended December 31, 2021, 2020 and 2019 totaled $485 million, $560 million and $572 million, respectively.

Accrued Expenses and Other Current Liabilities


	December 31,
	2021		2020
	(In millions)
Compensation and related benefits	$	517	$	523
Sales and use tax and VAT accruals	396		323
Advertising accruals	172		207
Operating lease liabilities	150		153
Other	613		561
Accrued expenses and other current liabilities	$	1,848	$	1,767