FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 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 December 31, 2021 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	$	10,410	$	—	$	—	$	10,410
Time deposits and certificates of deposit	25		—		—		25
Short-term investments:
Trip.com Group convertible debt securities	—		25		—		25
Long-term investments:
Other long-term investments:
Equity securities	2,850		—		—		2,850
Derivatives:
Foreign currency exchange derivatives	—		5		—		5
Total assets at fair value	$	13,285	$	30	$	—	$	13,315
LIABILITIES:
Foreign currency exchange derivatives	$	—	$	11	$	—	$	11
Nonrecurring fair value measurements
Investments in equity securities of private companies (1)	$	—	$	325	$	—	$	325

(1)    During the year ended December 31, 2021, the Company recorded upward adjustments to its investments in equity securities of private companies based on observable price changes in orderly transactions for identical or similar investments of the same issuer (see Note 5).

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 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 11).

Fair value, rollforward of level 3 recurring fair value measurements

The following table summarizes the fair value adjustments for debt securities measured using significant unobservable inputs (level 3) (in millions):

	For the Year Ended December 31,
	2021(1)		2020(2)
Balance, beginning of year	$	200	$	250
Unrealized gains (losses)	265		—
Transfers out of Level 3	(465)		(50)
Balance, end of year	$	—	$	200

(1)    In December 2021, as a result of the Grab Transaction, the Company’s investment in Grab was reclassified as equity securities with readily determinable fair values (see Note 5) and the aggregate unrealized gains of $265 million was reclassified from "Accumulated other comprehensive loss" in the Consolidated Balance Sheet to "Other income (expense), net" in the Consolidated Statement of Operation for the year ended December 31, 2021 (see Note 14)

(2)    The Company recognized an unrealized loss of $20 million during the three months ended March 31, 2020 and an unrealized gain of $20 million during the three months ended June 30, 2020 related to the investment in Grab Holdings Inc., which is recorded in "Accumulated other comprehensive loss" in the Consolidated Balance Sheet. During the year ended December 31, 2020, the Company's investment in Yanolja was reclassified as equity securities without readily determinable fair value due to changes in the redemption features of the preferred shares.

Schedule of derivative instruments

The table below provides estimated fair values and notional amounts of foreign currency exchange derivatives outstanding at December 31, 2021 and 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 sheet.

	December 31, 2021		December 31, 2020
Estimated fair value of derivative assets	$	5	$	9
Estimated fair value of derivative liabilities	$	11	$	7
Notional amount:
Foreign currency purchases	$	840	$	898
Foreign currency sales	$	1,857	$	839

The effect of foreign currency exchange derivatives recorded in "Other income (expense), net" in the Consolidated Statements of Operations for the years ended December 31, 2021, 2020, and 2019 is as follows (in millions):

	For the Year Ended December 31,
	2021		2020		2019
Losses on foreign currency exchange derivatives	$	30	$	31	$	19