v3.25.1
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
FINANCIAL ASSETS AND LIABILITIES MEASURED AND RECORDED 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, 2025 and December 31, 2024:

March 31, 2025
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
(In millions)
Assets:   
Cash and cash equivalents(1)
U.S. government and agency securities$599 $— $599 
Commercial paper372 — 372 
Money market fund14 14 — 
Total cash and cash equivalents985 14 971 
Short-term investments(2),(5):
U.S. government and agency securities52 — 52 
Foreign government and agency securities78 — 78 
Corporate debt securities1,887 — 1,887 
Mortgage-backed and asset-backed securities970 — 970 
Commercial paper563 — 563 
Total short-term investments3,550 — 3,550 
Funds receivable and customer accounts(3):
U.S. government and agency securities5,242 — 5,242 
Foreign government and agency securities372 — 372 
Corporate debt securities1,512 — 1,512 
Mortgage-backed and asset-backed securities4,491 — 4,491 
Municipal securities427 — 427 
Commercial paper3,470 — 3,470 
Total funds receivable and customer accounts15,514 — 15,514 
Derivatives(4)
56 — 56 
Long-term investments(2),(5):
U.S. government and agency securities271 — 271 
Foreign government and agency securities124 — 124 
Corporate debt securities1,416 — 1,416 
Mortgage-backed and asset-backed securities1,251 — 1,251 
Marketable equity securities16 16 — 
Total long-term investments3,078 16 3,062 
Total financial assets$23,183 $30 $23,153 
Liabilities:
Derivatives(4)
$87 $— $87 
Total financial liabilities$87 $— $87 
(1) Excludes cash of $6.5 billion not measured and recorded at fair value.
(2) Excludes time deposits of $131 million not measured and recorded at fair value.
(3) Excludes cash, time deposits, and funds receivable of $23.7 billion underlying funds receivable and customer accounts not measured and recorded at fair value.
(4) Derivative assets and liabilities are included within “prepaid expenses and other current assets” and “other assets” and “accrued expenses and other current liabilities” and “other long-term liabilities,” respectively, on our condensed consolidated balance sheets.
(5) Excludes non-marketable equity securities of $1.6 billion measured using the Measurement Alternative or equity method accounting.

December 31, 2024
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
(In millions)
Assets:   
Cash and cash equivalents(1)
Money market fund$14 $14 $— 
Short-term investments(2):
U.S. government and agency securities186 — 186 
Foreign government and agency securities84 — 84 
Corporate debt securities1,749 — 1,749 
Mortgage-backed and asset-backed securities
853 — 853 
Commercial paper1,282 — 1,282 
Total short-term investments4,154 — 4,154 
Funds receivable and customer accounts(3):
U.S. government and agency securities5,711 — 5,711 
Foreign government and agency securities379 — 379 
Corporate debt securities667 — 667 
Mortgage-backed and asset-backed securities
4,047 — 4,047 
Municipal securities504 — 504 
Commercial paper3,392 — 3,392 
Total funds receivable and customer accounts14,700 — 14,700 
Derivatives(4)
243 — 243 
Long-term investments(2), (5):
U.S. government and agency securities235 — 235 
Foreign government and agency securities123 — 123 
Corporate debt securities1,602 — 1,602 
Mortgage-backed and asset-backed securities
1,042 — 1,042 
Marketable equity securities23 23 — 
Total long-term investments3,025 23 3,002 
Total financial assets$22,136 $37 $22,099 
Liabilities:
Derivatives(4)
$37 $— $37 
Total financial liabilities$37 $— $37 
(1) Excludes cash of $6.5 billion not measured and recorded at fair value.
(2) Excludes restricted cash of $1 million and time deposits of $129 million not measured and recorded at fair value.
(3) Excludes cash, time deposits, and funds receivable of $23.0 billion underlying funds receivable and customer accounts not measured and recorded at fair value.
(4) Derivative assets and liabilities are included within “prepaid expenses and other current assets” and “other assets” and “accrued expenses and other current liabilities” and “other long-term liabilities,” respectively, on our condensed consolidated balance sheets.
(5) Excludes non-marketable equity securities of $1.5 billion measured using the Measurement Alternative or equity method accounting.

Our financial assets classified within Level 1 are valued using quoted prices for identical assets in active markets. All other financial assets and liabilities are valued using quoted prices for identical instruments in less active markets, readily available pricing sources for comparable instruments, or models using market observable inputs (Level 2).
A majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple observable inputs where applicable, such as currency rates, interest rate yield curves, option volatility, and equity prices (Level 2).

As of March 31, 2025 and December 31, 2024, we did not have any assets or liabilities requiring measurement at fair value on a recurring basis with significant unobservable inputs that would require a high level of judgment to determine fair value (Level 3).

We elect to account for available-for-sale debt securities denominated in currencies other than the functional currency of our subsidiaries under the fair value option. Election of the fair value option allows us to recognize any gains and losses from fair value changes on such investments in other income (expense), net on the condensed consolidated statements of income (loss) to significantly reduce the accounting asymmetry that would otherwise arise when recognizing the corresponding foreign exchange gains and losses relating to customer liabilities. The following table summarizes the estimated fair value and amortized cost of our available-for-sale debt securities under the fair value option as of March 31, 2025 and December 31, 2024:
 March 31, 2025December 31, 2024
Amortized CostFair ValueAmortized CostFair Value
(In millions)(In millions)
Funds receivable and customer accounts$687 $683 $566 $564 

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, 2025 and 2024:
Three Months Ended March 31,
 20252024
(In millions)
Funds receivable and customer accounts$31 $(7)

ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS

The following tables summarize our assets held as of March 31, 2025 and December 31, 2024 for which a non-recurring fair value measurement was recorded during the three months ended March 31, 2025 and the year ended December 31, 2024, respectively:
March 31, 2025
Significant Other
Observable Inputs
(Level 2)
Significant Other Unobservable Inputs (Level 3)
(In millions)
Loans and interest receivable, held for sale$714 $714 $— 
Non-marketable equity securities measured using the Measurement Alternative(1)
98 98 — 
Total$812 $812 $— 
(1) Excludes non-marketable equity securities of $1.3 billion accounted for under the Measurement Alternative for which no observable price changes occurred during the three months ended March 31, 2025.
December 31, 2024
Significant Other
Observable Inputs
(Level 2)
Significant Other Unobservable Inputs (Level 3)
(In millions)
Loans and interest receivable, held for sale
$541 $541 $— 
Non-marketable equity securities measured using the Measurement Alternative(1)
476 131 345 
Total$1,017 $672 $345 
(1) Excludes non-marketable equity securities of $860 million accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2024.

We measure loans and interest receivable, held for sale using observable inputs, such as the most recent executed prices for comparable loans sold to the global investment firm. Accordingly, loans and interest receivable, held for sale are classified within Level 2 in the fair value hierarchy. Refer to “Note 11—Loans and Interest Receivable” for additional information on loans and interest receivable, held for sale.

We measure the non-marketable equity securities accounted for under the Measurement Alternative at cost minus impairment, if any, adjusted for observable price changes in orderly transactions for an identical or similar investment in the same issuer. Non-marketable equity securities that have been remeasured during the period based on observable price changes are classified within Level 2 in the fair value hierarchy because we estimate the fair value based on valuation methods which only include significant inputs that are observable, such as the observable transaction price at the transaction date. The fair value of non-marketable equity securities are classified within Level 3 when we estimate fair value using significant unobservable inputs, such as when we remeasure due to impairment and use discount rates, forecasted cash flows, and market data of comparable companies, among others.

FINANCIAL ASSETS AND LIABILITIES NOT MEASURED AND RECORDED AT FAIR VALUE
Our financial instruments, including cash, restricted cash, time deposits, reverse repurchase agreements, loans and interest receivable, net, certain customer accounts, notes receivable, and long-term debt related to borrowings on our credit facilities are carried at amortized cost, which approximates their fair value. Our term debt (including current portion) had a carrying value of approximately $12.0 billion and fair value of approximately $11.3 billion as of March 31, 2025. Our term debt (including current portion) had a carrying value of approximately $10.5 billion and fair value of approximately $9.8 billion as of December 31, 2024. If these financial instruments were measured at fair value in the financial statements, cash would be classified as Level 1; restricted cash, time deposits, reverse repurchase agreements, certain customer accounts, and term debt (including current portion) would be classified as Level 2; and the remaining financial instruments would be classified as Level 3 in the fair value hierarchy.