Investments

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

The Company’s investments on the consolidated balance sheet include both available-for-sale and held-to-maturity debt securities (see Investments section below). The Company’s strategic investments in equity securities of publicly traded and privately held companies are classified within other assets on the consolidated balance sheet (see Equity Investments section below).

Investments

Investments on the consolidated balance sheet consisted of the following at December 31:

	2023		2022
	(in millions)
Available-for-sale securities	$	286	$	272
Held-to-maturity securities 1	306		128
Total investments	$	592	$	400

1Held-to-maturity securities represent investments in time deposits that mature within one year. The cost of these securities approximates fair value.

Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, held-to-maturity and available-for-sale investment securities, as well as realized gains and losses on the Company’s investment securities. The realized gains and losses from the sales of available-for-sale securities for 2023, 2022 and 2021 were not material.

Available-for-Sale Securities

The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values at December 31 were as follows:

	2023								2022
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
	(in millions)
Government and agency securities	$	86	$	—	$	—	$	86	$	91	$	—	$	(2)	$	89
Corporate securities	200		1		(1)		200		187		—		(4)		183
Total	$	286	$	1	$	(1)	$	286	$	278	$	—	$	(6)	$	272

The Company’s government and agency securities include U.S. government bonds, U.S. government sponsored agency bonds and foreign government bonds which are denominated in the national currency of the issuing country. Corporate securities held at December 31, 2023 and 2022, primarily carried a credit rating of A- or better. Corporate securities are comprised of commercial paper and corporate bonds. The gross unrealized losses on the available-for-sale securities are primarily driven by changes in interest rates. For the available-for-sale securities in gross unrealized loss positions, the Company (1) does not intend to sell the securities, (2) more likely than not, will not be required to sell the securities before recovery of the unrealized losses, and (3) expects that the contractual principal and interest will be received. Unrealized gains and losses are recorded as a separate component of other comprehensive income (loss) on the consolidated statement of comprehensive income.

The maturity distribution based on the contractual terms of the Company’s available-for-sale investment securities at December 31, 2023 was as follows:

	Amortized Cost		Fair Value
	(in millions)
Due within 1 year	$	170	$	169
Due after 1 year through 5 years	116		117
Total	$	286	$	286

Equity Investments

Included in other assets on the consolidated balance sheet are equity investments with readily determinable fair values (“Marketable securities”) and equity investments without readily determinable fair values (“Nonmarketable securities”). Marketable securities are equity interests in publicly traded companies and are measured using unadjusted quoted prices in their respective active markets. Nonmarketable securities that do not qualify for equity method accounting are measured at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer (“Measurement alternative”).

The following table is a summary of the activity related to the Company’s equity investments:

	Balance at December 31, 2022		Purchases		Sales		Changes in Fair Value 1		Other 2		Balance at December 31, 2023
	(in millions)
Marketable securities	$	399	$	—	$	—	$	97	$	10	$	506
Nonmarketable securities	1,331		89		(44)		(158)		5		1,223
Total equity investments	$	1,730	$	89	$	(44)	$	(61)	$	15	$	1,729

1Recorded in gains (losses) on equity investments, net on the consolidated statement of operations.

2Includes translational impact of currency.

The following table sets forth the components of the Company’s Nonmarketable securities at December 31:

	2023		2022
	(in millions)
Measurement alternative	$	1,008	$	1,087
Equity method	215		244
Total Nonmarketable securities	$	1,223	$	1,331

The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through December 31:

	2023
	(in millions)
Initial cost basis	$	553
Cumulative adjustments 1:
Upward adjustments	630
Downward adjustments (including impairment)	(175)
Carrying amount, end of period	$	1,008

1Includes immaterial translational impact of currency.

The following table summarizes the unrealized gains and losses included in the carrying value of the Company’s Measurement alternative investments and Marketable securities for the years ended December 31:

	2023		2022		2021
	(in millions)
Measurement alternative investments:
Upward adjustments	$	7	$	114	$	468
Downward adjustments (including impairment)	$	(145)	$	(23)	$	(2)
Marketable securities:
Unrealized gains (losses), net	$	97	$	(213)	$	8