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FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS
The following table summarizes the assets underlying our funds receivable and customer accounts, short-term investments, and long-term investments as of March 31, 2023 and December 31, 2022:
 March 31,
2023		December 31,
2022
(In millions)
Funds receivable and customer accounts:
Cash and cash equivalents$10,580 $11,363 
Time deposits100 95 
Available-for-sale debt securities18,181 17,349 
Funds receivable6,415 7,550 
Total funds receivable and customer accounts$35,276 $36,357 
Short-term investments:
Time deposits$478 $482 
Available-for-sale debt securities3,068 2,593 
Restricted cash13 17 
Total short-term investments$3,559 $3,092 
Long-term investments:
Time deposits$65 $55 
Available-for-sale debt securities2,347 2,817 
Strategic investments2,220 2,146 
Total long-term investments$4,632 $5,018 

As of March 31, 2023 and December 31, 2022, the estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments was as follows:
 
March 31, 2023(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$9,665 $2 $(175)$9,492 
Foreign government and agency securities1,189 — (26)1,163 
Corporate debt securities1,556 — (63)1,493 
Asset-backed securities1,389 — (16)1,373 
Municipal securities486 1 (2)485 
Commercial paper3,679 1 (6)3,674 
Short-term investments:
U.S. government and agency securities814 — (2)812 
Foreign government and agency securities817 — (12)805 
Corporate debt securities1,006 — (23)983 
Asset-backed securities406 — (7)399 
Commercial paper69 — — 69 
Long-term investments:
U.S. government and agency securities493 — (30)463 
Foreign government and agency securities222 — (11)211 
Corporate debt securities601 — (33)568 
Asset-backed securities1,119 — (14)1,105 
Total available-for-sale debt securities(2)
$23,511 $4 $(420)$23,095 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”
 
December 31, 2022(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$8,736 $— $(252)$8,484 
Foreign government and agency securities1,479 — (44)1,435 
Corporate debt securities1,637 — (82)1,555 
Asset-backed securities1,324 — (26)1,298 
Municipal securities410 — (3)407 
Commercial paper3,702 1 (14)3,689 
Short-term investments:
U.S. government and agency securities815 — (3)812 
Foreign government and agency securities435 — (11)424 
Corporate debt securities641 — (14)627 
Asset-backed securities415 — (9)406 
Commercial paper324 — — 324 
Long-term investments:
U.S. government and agency securities493 — (36)457 
Foreign government and agency securities386 — (22)364 
Corporate debt securities987 — (58)929 
Asset-backed securities1,085 — (18)1,067 
Total available-for-sale debt securities(2)
$22,869 $1 $(592)$22,278 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”

Gross amortized cost and estimated fair value balances exclude accrued interest receivable on available-for-sale debt securities, which totaled $80 million and $65 million at March 31, 2023 and December 31, 2022, respectively, and were included in other current assets on our condensed consolidated balance sheets.
As of March 31, 2023 and December 31, 2022, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses was not deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows:
 
March 31, 2023(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$3,471 $(37)$3,972 $(138)$7,443 $(175)
Foreign government and agency securities200 (5)876 (21)1,076 (26)
Corporate debt securities— — 1,442 (63)1,442 (63)
Asset-backed securities751 (7)486 (9)1,237 (16)
Municipal securities332 (2)— — 332 (2)
Commercial paper3,042 (6)— — 3,042 (6)
Short-term investments:
U.S. government and agency securities143 — 74 (2)217 (2)
Foreign government and agency securities50 — 514 (12)564 (12)
Corporate debt securities29 — 779 (23)808 (23)
Asset-backed securities139 (2)178 (5)317 (7)
Commercial paper69 — — — 69 — 
Long-term investments:
U.S. government and agency securities— — 463 (30)463 (30)
Foreign government and agency securities32 (1)179 (10)211 (11)
Corporate debt securities— — 559 (33)559 (33)
Asset-backed securities651 (5)371 (9)1,022 (14)
Total available-for-sale debt securities$8,909 $(65)$9,893 $(355)$18,802 $(420)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.
 
December 31, 2022(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$3,730 $(89)$4,246 $(163)$7,976 $(252)
Foreign government and agency securities410 (11)997 (34)1,407 (45)
Corporate debt securities9 (1)1,545 (81)1,554 (82)
Asset-backed securities773 (11)508 (14)1,281 (25)
Municipal securities264 (3)50 — 314 (3)
Commercial paper3,079 (14)— — 3,079 (14)
Short-term investments:
U.S. government and agency securities345 — 73 (3)418 (3)
Foreign government and agency securities61 — 362 (11)423 (11)
Corporate debt securities97 (2)465 (12)562 (14)
Asset-backed securities175 (2)217 (7)392 (9)
Commercial paper224 — — — 224 — 
Long-term investments:
U.S. government and agency securities— — 457 (36)457 (36)
Foreign government and agency securities31 (2)333 (20)364 (22)
Corporate debt securities85 (6)834 (52)919 (58)
Asset-backed securities872 (9)195 (9)1,067 (18)
Total available-for-sale debt securities$10,155 $(150)$10,282 $(442)$20,437 $(592)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.

Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. We will continue to monitor the performance of the investment portfolio and assess whether impairment due to expected credit losses has occurred. During the three months ended March 31, 2023, we received $1.1 billion in proceeds from the sale of available-for-sale debt securities incurring gross realized losses of $25 million, which were determined using the specific identification method.
Our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows:
 March 31, 2023
Amortized CostFair Value
(In millions)
One year or less $13,117 $12,977 
After one year through five years8,115 7,862 
After five years through ten years2,205 2,183 
After ten years74 73 
Total$23,511 $23,095 

STRATEGIC INVESTMENTS

Our strategic investments include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies. Our marketable equity securities have readily determinable fair values and are recorded as long-term investments on our condensed consolidated balance sheets at fair value with changes in fair value recorded in other income (expense), net on our condensed consolidated statements of income (loss). Marketable equity securities totaled $398 million and $323 million as of March 31, 2023 and December 31, 2022, respectively.

Our non-marketable equity securities are recorded in long-term investments on our condensed consolidated balance sheets. As of March 31, 2023 and December 31, 2022, we had non-marketable equity securities of $142 million and $136 million, respectively, where we have the ability to exercise significant influence, but not control, over the investee. We account for these equity securities using the equity method of accounting. The remaining non-marketable equity securities do not have a readily determinable fair value and we measure these equity investments at cost minus impairment, if any, and adjust for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Measurement Alternative”). All gains and losses on these investments, realized and unrealized, and our share of earnings or losses from investments accounted for using the equity method are recognized in other income (expense), net on our condensed consolidated statements of income (loss). The carrying value of our non-marketable equity securities totaled $1.8 billion for both March 31, 2023 and December 31, 2022.

Measurement Alternative adjustments

The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three months ended March 31, 2023 and 2022 were as follows:
Three Months Ended March 31,
 20232022
(In millions)
Carrying amount, beginning of period$1,687 $1,268 
Adjustments related to non-marketable equity securities:
Net additions(1)
16 4 
Gross unrealized gains22 197 
Gross unrealized losses and impairments(45)— 
Carrying amount, end of period$1,680 $1,469 
(1) Net additions include purchases, reductions due to sales of securities, and reclassifications when Measurement Alternative is subsequently elected or no longer applies.
The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative, held at March 31, 2023 and December 31, 2022, respectively:
March 31,
2023		December 31,
2022
(In millions)
Cumulative gross unrealized gains $1,159 $1,137 
Cumulative gross unrealized losses and impairments$(173)$(131)

Unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method

The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at March 31, 2023 and 2022, respectively:
 Three Months Ended March 31,
 20232022
(In millions)
Net unrealized gains (losses)$52 $(36)