FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 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 September 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	$	8,085	$	—	$	—	$	8,085
Time deposits and certificates of deposit	85		—		—		85
Short-term investments:
International government securities	—		3		—		3
U.S. government securities	—		92		—		92
Corporate debt securities	—		21		—		21
Long-term investments:
International government securities	—		72		—		72
U.S. government securities	—		170		—		170
Corporate debt securities	—		363		—		363
Equity securities	1,892		—		—		1,892
Derivatives:
Foreign currency exchange derivatives	—		21		—		21
Total assets at fair value	$	10,062	$	742	$	—	$	10,804
LIABILITIES:
Foreign currency exchange derivatives	$	—	$	35	$	—	$	35
Nonrecurring fair value measurements
Investment in equity securities of a private company (1)	$	—	$	—	$	122	$	122
Total nonrecurring fair value measurements	$	—	$	—	$	122	$	122

(1)    During the three months ended 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:
Corporate 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

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 Nine Months Ended September 30, 2021
Balance, beginning of year	$	200
Unrealized gains included in other comprehensive (loss) income (1)	130
Balance, end of period	$	330

(1)    The Company's investment in Grab (see Note 5) had an estimated fair value of $330 million and $200 million at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021, the Company measured this investment using Level 3 inputs and management's estimates that incorporated market participant expectations of future cash flows alongside the Grab Transaction value and other relevant information.

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, 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.

	September 30, 2022		December 31, 2021
Estimated fair value of derivative assets	$	21	$	5
Estimated fair value of derivative liabilities	$	35	$	11
Notional amount:
Foreign currency purchases	$	1,960	$	840
Foreign currency sales	$	2,064	$	1,857

The effect of foreign currency exchange derivatives recorded in "Other income (expense), net" in the Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021 is as follows (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Losses on foreign currency exchange derivatives	$	58	$	10	$	114	$	18