v3.25.1
DERIVATIVE INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value of Derivative Instruments
The fair value of our outstanding derivative instruments as of March 31, 2025 and December 31, 2024 was as follows:

 Balance Sheet LocationMarch 31,
2025		December 31,
2024
(In millions)
Derivative Assets:
Foreign exchange contracts designated as hedging instruments
Other current assets$43 $157 
Foreign exchange contracts not designated as hedging instruments
Other current assets13 86 
Total derivative assets$56 $243 
Derivative Liabilities:
Foreign exchange contracts designated as hedging instruments
Other current liabilities$71 $10 
Foreign exchange contracts not designated as hedging instruments
Other current liabilities16 27 
Total derivative liabilities$87 $37 
Schedule of Gains or Losses Related to Derivative Instruments Designated as Hedging Instruments
The following tables provide the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:
Three Months Ended March 31,
 20252024
(In millions)
Net revenuesOther income (expense), netNet revenuesOther income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded$7,791 $73 $7,699 $41 
Gains (losses) on derivatives in cash flow hedging relationship:
Amount of net gains (losses) on foreign exchange contracts reclassified from AOCI
35 — — — 
Gains (losses) on derivatives in net investment hedging relationship:
Amount of net gains (losses) on foreign exchange contracts excluded from the assessment of effectiveness
— — — 20 
Gains (losses) on derivatives not designated as hedging instruments:
Amount of net gains (losses) on foreign exchange contracts
— (83)— 21 
Total net gains (losses)
$35 $(83)$— $41 

The following table provides the amount of pre-tax unrealized gains or losses included in the assessment of hedge effectiveness related to our derivative instruments designated as hedging instruments that are recognized in other comprehensive income (loss):
Three Months Ended March 31,
 20252024
(In millions)
Unrealized net gains (losses) on foreign exchange contracts designated as cash flow hedges
$(141)$96 
Unrealized net gains (losses) on foreign exchange contracts designated as net investment hedges
— 99 
Total unrealized net gains (losses) recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income (loss)
$(141)$195 
Schedule of Recognized Gains or Losses related to Derivative Instruments not Designated as Hedging Instruments
The following tables provide the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:
Three Months Ended March 31,
 20252024
(In millions)
Net revenuesOther income (expense), netNet revenuesOther income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded$7,791 $73 $7,699 $41 
Gains (losses) on derivatives in cash flow hedging relationship:
Amount of net gains (losses) on foreign exchange contracts reclassified from AOCI
35 — — — 
Gains (losses) on derivatives in net investment hedging relationship:
Amount of net gains (losses) on foreign exchange contracts excluded from the assessment of effectiveness
— — — 20 
Gains (losses) on derivatives not designated as hedging instruments:
Amount of net gains (losses) on foreign exchange contracts
— (83)— 21 
Total net gains (losses)
$35 $(83)$— $41 

The following table provides the amount of pre-tax unrealized gains or losses included in the assessment of hedge effectiveness related to our derivative instruments designated as hedging instruments that are recognized in other comprehensive income (loss):
Three Months Ended March 31,
 20252024
(In millions)
Unrealized net gains (losses) on foreign exchange contracts designated as cash flow hedges
$(141)$96 
Unrealized net gains (losses) on foreign exchange contracts designated as net investment hedges
— 99 
Total unrealized net gains (losses) recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income (loss)
$(141)$195 
Schedule of Notional Amounts of Outstanding Derivatives The following table provides the notional amounts of our outstanding derivatives:
March 31,
2025		December 31,
2024
(In millions)
Foreign exchange contracts designated as hedging instruments$4,260 $3,942 
Foreign exchange contracts not designated as hedging instruments11,496 13,317 
Total$15,756 $17,259 
Schedule of Offsetting Assets
The following tables present the derivative assets, derivative liabilities, repurchase agreements, and reverse repurchase agreements not offset on the condensed consolidated balance sheet but available for offset in the event of default. The tables also present the cash and non-cash collateral received or pledged relating to these positions. The amount of collateral presented is limited to the amount presented on our condensed consolidated balance sheet; therefore, instances of over-collateralization are excluded from the table below.
Amounts Not Offset on the Condensed Consolidated Balance Sheet
Amounts Presented on the Condensed Consolidated Balance Sheet
Financial Instruments(1)
Collateral Received(2)
Net Amounts
(In millions)
As of March 31, 2025
Derivative assets(3)
$56 $23 $29 $4 
Reverse repurchase agreements(4)
200 — 200 — 
Total assets
$256 $23 $229 $4 
As of December 31, 2024
Derivative assets(3)
$243 $23 $169 $51 
Reverse repurchase agreements(4)
87 — 87 — 
Total assets
$330 $23 $256 $51 
Amounts Not Offset on the Condensed Consolidated Balance Sheet
Amounts Presented on the Condensed Consolidated Balance Sheet
Financial Instruments(1)
Collateral Pledged(2)
Net Amounts
(In millions)
As of March 31, 2025
Derivative liabilities(3)
$87 $24 $55 $8 
Repurchase agreements
— — — — 
Total liabilities
$87 $24 $55 $8 
As of December 31, 2024
Derivative liabilities(3)
$37 $23 $7 $7 
Repurchase agreements
— — — — 
Total liabilities
$37 $23 $7 $7 
(1) For derivative positions, this includes any derivative fair value that could be offset in the event of counterparty default. For repurchase or reverse repurchase positions, this includes any payable or receivable, respectively, that could be offset in the event of counterparty default.
(2) Includes cash and the fair value of securities exchanged with the counterparty. For reverse repurchase agreements, these securities are not included in the consolidated balance sheet unless the counterparty defaults.
(3) We received cash collateral from derivative counterparties totaling $27 million and $162 million as of March 31, 2025 and December 31, 2024, respectively, and securities from derivative counterparties with a fair value of $10 million and $30 million as of March 31, 2025 and December 31, 2024, respectively. We posted $60 million and $7 million of cash collateral as of March 31, 2025 and December 31, 2024, respectively.
(4) PayPal is permitted by contract to sell or repledge collateral relating to its reverse repurchase agreements. The fair value of this collateral was $203 million and $96 million as of March 31, 2025 and December 31, 2024, respectively. As of March 31, 2025 and December 31, 2024, we have not sold or repledged collateral relating to reverse repurchase agreements.
Schedule of Offsetting Liabilities
The following tables present the derivative assets, derivative liabilities, repurchase agreements, and reverse repurchase agreements not offset on the condensed consolidated balance sheet but available for offset in the event of default. The tables also present the cash and non-cash collateral received or pledged relating to these positions. The amount of collateral presented is limited to the amount presented on our condensed consolidated balance sheet; therefore, instances of over-collateralization are excluded from the table below.
Amounts Not Offset on the Condensed Consolidated Balance Sheet
Amounts Presented on the Condensed Consolidated Balance Sheet
Financial Instruments(1)
Collateral Received(2)
Net Amounts
(In millions)
As of March 31, 2025
Derivative assets(3)
$56 $23 $29 $4 
Reverse repurchase agreements(4)
200 — 200 — 
Total assets
$256 $23 $229 $4 
As of December 31, 2024
Derivative assets(3)
$243 $23 $169 $51 
Reverse repurchase agreements(4)
87 — 87 — 
Total assets
$330 $23 $256 $51 
Amounts Not Offset on the Condensed Consolidated Balance Sheet
Amounts Presented on the Condensed Consolidated Balance Sheet
Financial Instruments(1)
Collateral Pledged(2)
Net Amounts
(In millions)
As of March 31, 2025
Derivative liabilities(3)
$87 $24 $55 $8 
Repurchase agreements
— — — — 
Total liabilities
$87 $24 $55 $8 
As of December 31, 2024
Derivative liabilities(3)
$37 $23 $7 $7 
Repurchase agreements
— — — — 
Total liabilities
$37 $23 $7 $7 
(1) For derivative positions, this includes any derivative fair value that could be offset in the event of counterparty default. For repurchase or reverse repurchase positions, this includes any payable or receivable, respectively, that could be offset in the event of counterparty default.
(2) Includes cash and the fair value of securities exchanged with the counterparty. For reverse repurchase agreements, these securities are not included in the consolidated balance sheet unless the counterparty defaults.
(3) We received cash collateral from derivative counterparties totaling $27 million and $162 million as of March 31, 2025 and December 31, 2024, respectively, and securities from derivative counterparties with a fair value of $10 million and $30 million as of March 31, 2025 and December 31, 2024, respectively. We posted $60 million and $7 million of cash collateral as of March 31, 2025 and December 31, 2024, respectively.
(4) PayPal is permitted by contract to sell or repledge collateral relating to its reverse repurchase agreements. The fair value of this collateral was $203 million and $96 million as of March 31, 2025 and December 31, 2024, respectively. As of March 31, 2025 and December 31, 2024, we have not sold or repledged collateral relating to reverse repurchase agreements.