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Fair Value Measurement (Tables)
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Marketable and Non-Marketable Securities
The Company’s investments on the condensed consolidated balance sheets consisted of the following as of December 31, 2018 and June 30, 2019 (in millions):
 
 
As of
 
 
December 31, 2018
 
June 30, 2019
Non-marketable equity securities:
 
 
 
 
Didi
 
$
7,953

 
$
7,953

Other
 
32

 
94

Debt securities:
 
 
 
 
Grab(1)
 
2,328

 
2,334

Other(2)
 
42

 
34

Investments
 
$
10,355

 
$
10,415

(1) Recorded at fair value with changes in fair value recorded in other comprehensive income (loss), net of tax.
(2) Recorded at fair value with changes in fair value recorded in earnings due to the election of the fair value option of accounting for financial instruments.
Schedule of Assets and Liabilities Measured on Recurring Basis
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in millions):
 
As of December 31, 2018
 
As of June 30, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
268

 
$

 
$

 
$
268

 
$
6,000

 
$

 
$

 
$
6,000

U.S. government securities

 

 

 

 

 
1,049

 

 
1,049

Restricted cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
1,237

 

 

 
1,237

 
1,497

 

 

 
1,497

Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities

 

 
2,370

 
2,370

 

 

 
2,368

 
2,368

Total financial assets
$
1,505

 
$

 
$
2,370

 
$
3,875

 
$
7,497

 
$
1,049

 
$
2,368

 
$
10,914

Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued and other current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
$

 
$

 
$
9

 
$
9

 
$

 
$

 
$
3

 
$
3

Other long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrants

 

 
52

 
52

 

 

 

 

Embedded derivatives

 

 
2,018

 
2,018

 

 

 

 

Total financial liabilities
$

 
$

 
$
2,079

 
$
2,079

 
$

 
$

 
$
3

 
$
3


Schedule of Financial Assets Measured at Fair Value on a Recurring Basis
The following table summarizes the amortized cost, unrealized gains and losses, and fair value of the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2018 and June 30, 2019 (in millions):
 
As of December 31, 2018
 
As of June 30, 2019
 
Amortized Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Amortized Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
$

 
$

 
$

 
$

 
$
1,049

 
$

 
$

 
$
1,049

Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
2,305

 
65

 

 
2,370

 
2,307

 
61

 

 
2,368

Total
$
2,305

 
$
65

 
$

 
$
2,370

 
$
3,356

 
$
61

 
$

 
$
3,417


Schedule of Fair Value Assumptions on Significant Unobservable Inputs
The following table summarizes information about the significant unobservable inputs used in the fair value measurement for the Company’s investment in Grab as of December 31, 2018 and June 30, 2019:
Fair value method
 
Relative weighting
 
Key unobservable input
Financing transactions
 
100%
 
Transaction price per share
 
$6.16

Schedule of Amortized Cost and Fair Value of Debt Security with Contractual Maturity Dates
The following table summarizes the amortized cost and fair value of the Company’s debt securities with a stated contractual maturity or redemption date as of December 31, 2018 and June 30, 2019 (in millions):
 
As of December 31, 2018
 
As of June 30, 2019
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
Within one year
$

 
$

 
$
1,049

 
$
1,049

One year through five years
2,275

 
2,328

 
2,277

 
2,334

Total
$
2,275

 
$
2,328

 
$
3,326

 
$
3,383


Schedule of Reconciliation Using Significant Unobservable Inputs, Assets
The following table presents a reconciliation of the Company’s financial assets measured and recorded at fair value on a recurring basis as of June 30, 2019, using significant unobservable inputs (Level 3) (in millions):
 
 
Debt Securities
Balance as of December 31, 2018
 
$
2,370

Total net gains (losses)
 
 
Included in earnings
 
(8
)
Included in other comprehensive income (loss)
 
4

Purchases
 
2

Sales
 

Settlements
 

Balance as of June 30, 2019
 
$
2,368


Schedule of Reconciliation Using Significant Unobservable Inputs, Liabilities
The following table presents a reconciliation of the Company’s financial liabilities measured at fair value as of June 30, 2019 using significant unobservable inputs (Level 3), and the change in fair value recorded in other income (expense), net in the condensed consolidated statements of operations (in millions):
 
 
 Warrants
 
Convertible Debt Embedded Derivative
Balance as of December 31, 2018
 
$
52

 
$
2,018

Vesting of share warrants
 
1

 

Exercise of vested share warrants
 
(53
)
 

Change in fair value
 

 
(58
)
Settlement of derivative liability
 

 
(1,960
)
Balance as of June 30, 2019
 
$

 
$


Schedule of Securities without Readily Determinable Fair Value
The following is a summary of unrealized gains and losses from remeasurement (referred to as upward or downward adjustments) recorded in other income (expense), net in the condensed consolidated statements of operations, and included as adjustments to the carrying value of non-marketable equity securities held during the three and six months ended June 30, 2018 and 2019 based on the selling price of newly issued shares of similar preferred stock to new investors using the common stock equivalent valuation method and adjusted for any applicable differences in conversion rights (in millions):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2019
 
2018
 
2019
Upward adjustments
 
$

 
$
4

 
$
1,984

 
$
22

Downward adjustments (including impairment)
 

 

 

 

Total unrealized gain for non-marketable equity securities
 
$

 
$
4

 
$
1,984

 
$
22


The following table summarizes the total carrying value of the Company’s non-marketable equity securities held as of December 31, 2018 and June 30, 2019 including cumulative unrealized upward and downward adjustments made to the initial cost basis of the securities (in millions):
 
 
As of
 
 
December 31, 2018
 
June 30, 2019
Initial cost basis
 
$
6,001

 
$
6,041

Upward adjustments
 
1,984

 
2,006

Downward adjustments (including impairment)
 

 

Total carrying value at the end of the period
 
$
7,985

 
$
8,047