FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Carried at Fair Value and Nonrecurring Fair Value Measurements

Financial assets and liabilities carried at fair value at March 31, 2021 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	$	11,773	$	—	$	—	$	11,773
Time deposits and certificates of deposit	41		—		—		41
Short-term investments:
Trip.com Group convertible debt securities	—		500		—		500
Long-term investments:
Investments in private companies:
Debt securities	—		—		200		200
Other long-term investments:
Trip.com Group convertible debt securities	—		24		—		24
Equity securities	3,112		—		—		3,112
Derivatives:
Foreign currency exchange derivatives	—		7		—		7
Total assets at fair value	$	14,926	$	531	$	200	$	15,657
LIABILITIES:
Foreign currency exchange derivatives	$	—	$	11	$	—	$	11

Financial assets and liabilities carried at fair value at December 31, 2020 and nonrecurring fair value measurements 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	$	10,208	$	—	$	—	$	10,208
Time deposits and certificates of deposit	32		—		—		32
Short-term investments:
Trip.com Group convertible debt securities	—		501		—		501
Long-term investments:
Investments in private companies:
Debt securities	—		—		200		200
Other long-term investments:
Trip.com Group convertible debt securities	—		24		—		24
Equity securities	3,080		—		—		3,080
Derivatives:
Foreign currency exchange derivatives	—		9		—		9
Total assets at fair value	$	13,320	$	534	$	200	$	14,054
LIABILITIES:
Foreign currency exchange derivatives	$	—	$	7	$	—	$	7
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).

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 March 31, 2021 and December 31, 2020 (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, 2021		December 31, 2020
Estimated fair value of derivative assets	$	7	$	9
Estimated fair value of derivative liabilities	$	11	$	7
Notional amount:
Foreign currency purchases	$	653	$	898
Foreign currency sales	$	863	$	839

The effect of foreign currency exchange derivatives recorded in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 is as follows (in millions):

	Three Months Ended March 31,
	2021		2020
Losses on foreign currency exchange derivatives	$	9	$	23