FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Financial instruments carried at fair value

Financial assets and liabilities carried at fair value at December 31, 2019 are classified in the categories described in the tables below (in millions):



	Level 1		Level 2		Level 3		Total
ASSETS:
Cash equivalents and restricted cash equivalents:
Money market funds	$	5,734	$	—	$	—	$	5,734
Corporate debt securities	—		2		—		2
Time deposits and certificates of deposit	29		—		—		29
Short-term investments in marketable securities:
International government securities	—		109		—		109
U.S. government securities	—		138		—		138
Corporate debt securities	—		751		—		751
Long-term investments:
Investments in marketable securities:
International government securities	—		68		—		68
U.S. government securities	—		135		—		135
Corporate debt securities	—		963		—		963
Trip.com Group convertible debt securities	—		767		—		767
Equity securities	1,793		—		—		1,793
Investments in private companies:
Debt securities	—		—		250		250
Derivatives:
Foreign currency exchange derivatives	—		12		—		12
Total assets at fair value	$	7,556	$	2,945	$	250	$	10,751

LIABILITIES
Foreign currency exchange derivatives	$	—	$	5	$	—	$	5

Financial assets carried at fair value at December 31, 2018 are classified in the categories described in the tables below (in millions):



	Level 1		Level 2		Level 3		Total
ASSETS:
Cash equivalents and restricted cash equivalents:
Money market funds	$	2,061	$	—	$	—	$	2,061
International government securities	—		21		—		21
U.S. government securities	—		1		—		1
Commercial paper	—		2		—		2
Time deposits and certificates of deposit	25		—		—		25
Short-term investments in marketable securities:
International government securities	—		314		—		314
U.S. government securities	—		656		—		656
Corporate debt securities	—		2,681		—		2,681
U.S. government agency securities	—		1		—		1
Commercial paper	—		7		—		7
Time deposits and certificates of deposit	1		—		—		1
Long-term investments:
Investments in marketable securities:
International government securities	—		800		—		800
U.S. government securities	—		293		—		293
Corporate debt securities	—		4,401		—		4,401
Trip.com Group convertible debt securities	—		1,177		—		1,177
Equity securities	1,036		—		—		1,036
Investments in private companies:
Debt securities	—		—		200		200
Derivatives:
Foreign currency exchange derivatives	—		4		—		4
Total assets at fair value	$	3,123	$	10,358	$	200	$	13,681

The table above does not include contingent consideration related to a business acquisition (see Note 20).

Derivatives Not Designated as Hedging Instruments

The table below provides fair value and notional amount of foreign currency exchange derivatives outstanding at December 31, 2019 and 2018 (in millions). The notional amount of a foreign currency forward contract is the contracted amount of foreign currency to be exchanged and is not recorded on the balance sheet.



	December 31, 2019		December 31, 2018
Fair value of derivative assets	$	12	$	4
Fair value of derivative liabilities	5		—

Notional amount:
Foreign currency purchases	1,770		1,324
Foreign currency sales	901		921

Derivative Instruments, Gain (Loss)

The effect of foreign currency exchange derivatives recorded in "Foreign currency transactions and other" in the Consolidated Statements of Operations for the years ended December 31, 2019, 2018, and 2017 is as follows (in millions):



	For the Year Ended December 31,
	2019			2018			2017
(Losses) gains on foreign currency exchange derivatives	$	(19	)	$	(44	)	$	43