Fair Value Measurement of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Summary of financial assets and liabilities measured at fair value on a recurring basis

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020:

	March 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents(1)	$	853	$	—	$	853
Short-term investments(2):
U.S. government and agency securities	1,340		—		1,340
Foreign government and agency securities	952		—		952
Corporate debt securities	3,422		—		3,422
Asset-backed securities	147		—		147
Total short-term investments	$	5,861	$	—	$	5,861
Funds receivable and customer accounts(3):
Cash and cash equivalents	299		—		299
U.S. government and agency securities	8,015		—		8,015
Foreign government and agency securities	4,205		—		4,205
Corporate debt securities	3,701		—		3,701
Asset-backed securities	443		—		443
Municipal securities	633		—		633
Total funds receivable and customer accounts	$	17,296	$	—	$	17,296
Derivatives	171		—		171
Long-term investments(2),(4):
Foreign government and agency securities	1,504		—		1,504
Corporate debt securities	1,405		—		1,405
Asset-backed securities	165		—		165
Marketable equity securities	2,050		2,050		—
Total long-term investments	$	5,124	$	2,050	$	3,074
Total financial assets	$	29,305	$	2,050	$	27,255
Liabilities:
Derivatives	$	276	$	—	$	276

(1) Excludes cash of $4.9 billion not measured and recorded at fair value.

(2) Excludes restricted cash of $26 million and time deposits of $1.5 billion not measured and recorded at fair value.

(3) Excludes cash, time deposits, and funds receivable of $18.3 billion underlying funds receivable and customer accounts not measured and recorded at fair value.

(4) Excludes non-marketable equity securities of $829 million measured using the Measurement Alternative or equity method accounting.

	December 31, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In millions)
Assets:
Cash and cash equivalents(1)	$	867	$	—	$	867
Short-term investments(2):
U.S. government and agency securities	1,510		—		1,510
Foreign government and agency securities	277		—		277
Corporate debt securities	4,902		—		4,902
Total short-term investments	6,689		—		6,689
Funds receivable and customer accounts(3):
Cash and cash equivalents	1,770		—		1,770
U.S. government and agency securities	7,933		—		7,933
Foreign government and agency securities	4,296		—		4,296
Corporate debt securities	2,135		—		2,135
Municipal securities	637		—		637
Total funds receivable and customer accounts	16,771		—		16,771
Derivatives	42		—		42
Long-term investments(2), (4):
U.S. government and agency securities	28		—		28
Foreign government and agency securities	1,304		—		1,304
Corporate debt securities	1,259		—		1,259
Asset-backed securities	228		—		228
Marketable equity securities	2,443		2,443		—
Total long-term investments	5,262		2,443		2,819
Total financial assets	$	29,631	$	2,443	$	27,188
Liabilities:
Derivatives	$	410	$	—	$	410

(1) Excludes cash of $3.9 billion not measured and recorded at fair value.

(2) Excludes restricted cash of $88 million and time deposits of $1.6 billion not measured and recorded at fair value.

(3) Excludes cash, time deposits, and funds receivable of $16.6 billion underlying funds receivable and customer accounts not measured and recorded at fair value.

(4) Excludes non-marketable equity securities of $789 million measured using the Measurement Alternative or equity method accounting.

Summary of investments under the fair value option

The following table summarizes the estimated fair value of our available-for-sale debt securities under the fair value option as of March 31, 2021 and December 31, 2020:

	March 31, 2021		December 31, 2020
	(In millions)
Funds receivable and customer accounts	$	2,475	$	2,914
Short-term investments	$	508	$	—

The following table summarizes the gains (losses) from fair value changes recognized in other income (expense), net related to the available-for-sale debt securities under the fair value option for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021		2020
	(In millions)
Funds receivable and customer accounts	$	(67)	$	(20)
Short-term investments	$	(11)	$	(18)

Summary of financial assets measured at fair value on a non-recurring basis

The following tables summarize our financial assets and liabilities held as of March 31, 2021 and December 31, 2020 for which a non-recurring fair value measurement was recorded during the three months ended March 31, 2021 and the year ended December 31, 2020, respectively:

	March 31, 2021		Significant Other Observable Inputs (Level 2)
	(In millions)
Non-marketable equity investments measured using the Measurement Alternative(1)	$	33	$	33
Other assets(2)	86		$	86
Total	$	119	$	119

(1) Excludes non-marketable equity investments of $768 million accounted for under the Measurement Alternative for which no observable price changes occurred during the three months ended March 31, 2021.

(2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges as of March 31, 2021.

	December 31, 2020		Significant Other Observable Inputs (Level 2)
	(In millions)
Non-marketable equity investments measured using the Measurement Alternative(1)	$	335	$	335
Other assets(2)	44		44
Total	$	379	$	379

(1) Excludes non-marketable equity investments of $444 million accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2020.

(2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges as of December 31, 2020.