FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Financial assets and liabilities carried at fair value

Financial assets and liabilities carried at fair value at March 31, 2020 are classified in the categories described in the table below (in millions):

	Level 1		Level 2		Level 3		Total
Recurring fair value measurements
ASSETS:
Cash equivalents and restricted cash equivalents:
Money market funds	$	5,944	$	—	$	—	$	5,944
Time deposits and certificates of deposit	26		—		—		26
Short-term investments:
Corporate debt securities	—		164		—		164
Trip.com Group convertible debt securities	—		248		—		248
Trip.com Group equity securities	414		—		—		414
Long-term investments:
Investments in private companies:
Debt securities	—		—		230		230
Other long-term investments:
Trip.com Group convertible debt securities	—		448		—		448
Equity securities	977		—		—		977
Derivatives:
Foreign currency exchange derivatives	—		12		—		12
Total assets at fair value	$	7,361	$	872	$	230	$	8,463
LIABILITIES:
Foreign currency exchange derivatives	$	—	$	21	$	—	$	21
Nonrecurring fair value measurements
Investment in Didi Chuxing	$	—	$	—	$	400	$	400
Goodwill of the OpenTable and KAYAK reporting unit	—		—		1,545		1,545
Total nonrecurring fair value measurements	$	—	$	—	$	1,945	$	1,945

 

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

	Level 1		Level 2		Level 3		Total
Recurring fair value measurements
ASSETS:
Cash 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:
International government securities	—		109		—		109
U.S. government securities	—		138		—		138
Corporate debt securities	—		751		—		751
Long-term investments:
Investments in private companies:
Debt securities	—		—		250		250
Other long-term investments:
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
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

 

Rollforward of Level 3 fair value measurements

Rollforward of Level 3 Fair Value Measurements

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Debt securities (in millions)
Balance, December 31, 2019	$	250
Total losses for the period:
Total unrealized losses included in accumulated other comprehensive loss (1)	(20		)
Balance, March 31, 2020	$	230

(1)

These losses are recorded in “Accumulated other comprehensive loss” in the Consolidated Balance Sheet.

Fair value and notional amount of derivatives and the effect of foreign currency exchange derivatives

The table below provides fair values and notional amounts of foreign currency exchange derivatives outstanding at March 31, 2020 and December 31, 2019 (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 in the balance sheets.

	March 31, 2020		December 31, 2019
Fair value of derivative assets	$	12	$	12
Fair value of derivative liabilities	21		5
Notional amount:
Foreign currency purchases	1,441		1,770
Foreign currency sales	950		901

The effect of foreign currency exchange derivatives recorded in "Foreign currency transactions and other" in the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 is as follows (in millions):

	For the Three Months Ended
	March 31, 2020		March 31, 2019
Losses on foreign currency exchange derivatives	$	23	$	13