FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

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

Financial assets and liabilities measured at fair value on a recurring basis at June 30, 2022 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	$	10,850	$	—	$	—	$	10,850
Time deposits and certificates of deposit	77		—		—		77
Short-term investments:
Debt securities	—		25		—		25
Long-term investments:
Equity securities	2,228		—		—		2,228
Derivatives:
Foreign currency exchange derivatives	—		11		—		11
Total assets at fair value	$	13,155	$	36	$	—	$	13,191
LIABILITIES:
Foreign currency exchange derivatives	$	—	$	24	$	—	$	24
Nonrecurring fair value measurements
Investment in equity securities of a private company (1)	$	—	$	—	$	122	$	122
Total nonrecurring fair value measurements	$	—	$	—	$	122	$	122

(1)    At June 30, 2022, the investment in Yanolja was written down to its estimated fair value of $122 million, resulting in an impairment charge of $184 million (see Note 5).

Financial assets and liabilities measured at fair value on a recurring basis 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		Total
Recurring fair value measurements (1)
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:
Debt securities	—		25		25
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 (2)	$	—	$	325	$	325
Total nonrecurring fair value measurements	$	—	$	325	$	325

(1)    The Company did not have any Level 3 fair value measurements at December 31, 2021.

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

Fair Value Adjustments for Debt Securities Measured using Significant Unobservable Inputs

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

	For the Six Months Ended June 30, 2021
Balance, beginning of year	$	200
Unrealized gains included in other comprehensive (loss) income (1)	126
Balance, end of period	$	326

(1)    Included in Net unrealized gains on available-for-sale securities in the Unaudited Consolidated Statements of Comprehensive Income (Loss).

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 June 30, 2022 and December 31, 2021 (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.

	June 30, 2022		December 31, 2021
Estimated fair value of derivative assets	$	11	$	5
Estimated fair value of derivative liabilities	$	24	$	11
Notional amount:
Foreign currency purchases	$	1,338	$	840
Foreign currency sales	$	2,076	$	1,857

The Company recorded losses of $40 million and $56 million for the three and six months ended June 30, 2022, respectively, in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations, related to foreign currency exchange derivatives.