FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Carried at Fair Value

Financial assets and liabilities carried at fair value at September 30, 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 fund investments	$	10,874	$	—	$	—	$	10,874
Time deposits and certificates of deposit	19		—		—		19
Long-term investments:
Investments in private companies:
Debt securities	—		—		250		250
Other long-term investments:
Trip.com Group convertible debt securities	—		493		—		493
Equity securities	2,525		—		—		2,525
Derivatives:
Foreign currency exchange derivatives	—		10		—		10
Total assets at fair value	$	13,418	$	503	$	250	$	14,171
LIABILITIES:
Foreign currency exchange derivatives	$	—	$	13	$	—	$	13
Nonrecurring fair value measurements
Investments in equity securities of private companies (1)	$	—	$	—	$	404	$	404
Goodwill of the OpenTable and KAYAK reporting unit (2)	—		—		1,000		1,000
Total nonrecurring fair value measurements	$	—	$	—	$	1,404	$	1,404

(1) At March 31, 2020, the investment in DiDi Chuxing was written down to its estimated fair value of $400 million, resulting in an impairment charge of $100 million (see Note 5).

(2) At March 31, 2020, the goodwill of the OpenTable and KAYAK reporting unit was written down to its estimated fair value of $1.5 billion, resulting in an impairment charge of $489 million. At September 30, 2020, the goodwill was further written down to its estimated fair value of $1.0 billion, resulting in an additional impairment charge of $573 million (see Note 8).

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 fund investments	$	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

Fair Value and the Notional Amount of Derivatives and the Effect of Foreign Currency Exchange Derivatives

The table below provides estimated fair values and notional amounts of foreign currency exchange derivatives outstanding at September 30, 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.

	September 30, 2020		December 31, 2019
Estimated fair value of derivative assets	$	10	$	12
Estimated fair value of derivative liabilities	13		5
Notional amount:
Foreign currency purchases	939		1,770
Foreign currency sales	1,008		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 and nine months ended September 30, 2020 and 2019 is as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Losses on foreign currency exchange derivatives	$	—	$	21	$	31	$	26