v3.25.2
Fair Value Measurement of Assets and Liabilities
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement of Assets and Liabilities Fair Value Measurement of Assets and Liabilities
The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated (in millions):
June 30, 2025
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Assets:   
Cash, cash equivalents and restricted cash
Cash and cash equivalents$2,070 $2,070 $— $— 
Customer accounts (1)
1,007 1,007 — — 
Restricted cash included in other current assets152 152 — — 
Restricted cash included in other assets2 2 — — 
Total cash, cash equivalents and restricted cash3,231 3,231 — — 
Derivatives69 — 54 15 
Short-term investments:
Corporate debt securities1,497 — 1,497 — 
Government and agency securities (1)
209 — 209 — 
Total short-term investments1,706 — 1,706 — 
Long-term investments:
Corporate debt securities1,456 — 1,456 — 
Government and agency securities152 — 152 — 
Total long-term investments1,608 — 1,608 — 
Total financial assets$6,614 $3,231 $3,368 $15 
Liabilities:
Derivatives$48 $— $48 $— 
(1)As of June 30, 2025, “Customer accounts and funds receivable” in our condensed consolidated balance sheet includes $26 million of fixed-income investments with original maturities greater than three months when purchased, which are disclosed as “Short-term investments” in these notes to the condensed consolidated financial statements.
December 31, 2024
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Assets:   
Cash, cash equivalents and restricted cash
Cash and cash equivalents$2,433 $2,433 $— $— 
Customer accounts763 763 — — 
Restricted cash included in other current assets88 88 — — 
Restricted cash included in other assets2 2 — — 
Total cash, cash equivalents and restricted cash3,286 3,286 — — 
Derivatives97 — 82 15 
Short-term investments:
Corporate debt securities3,094 — 3,094 — 
Government and agency securities363 — 363 — 
Total short-term investments3,457 — 3,457 — 
Long-term investments:
Corporate debt securities1,119 — 1,119 — 
Government and agency securities190 — 190 — 
Total long-term investments1,309 — 1,309 — 
Total financial assets$8,149 $3,286 $4,848 $15 
Liabilities:
Derivatives$18 $— $18 $— 

Our financial assets and liabilities are valued using market prices on both active markets (Level 1), less active markets (Level 2) and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We did not have any transfers of financial instruments between valuation levels for the six months ended June 30, 2025.

Other financial instruments, including accounts receivable, funds receivable, accounts payable and funds payable, are carried at cost, which approximates their fair value due to the short-term nature of these instruments.
Fair value measurement of derivative instruments

The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates.

The Adyen warrant, which was accounted for as a derivative instrument, was valued using a Black-Scholes model. Key assumptions used in the valuation included risk-free interest rates; Adyen’s common stock price, equity volatility and common stock outstanding; exercise price; and details specific to the warrant. The value was also probability adjusted for management’s assumptions with respect to vesting of the remaining tranches which were each subject to meeting processing volume milestone targets. In the fourth quarter of 2024, we met the processing volume milestone required to vest in the second tranche of the Adyen warrant. As of December 31, 2024, the probability of meeting the processing volume milestone requirements for the remaining two tranches of the Adyen warrant was zero. The Adyen warrant expired on January 31, 2025.

The following table presents a reconciliation of the opening to closing balance of the Adyen warrant measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions):
December 31,
2024
Opening balance at January 1, 2024
$364 
Change in fair value158 
Exercise of options under warrant(522)
Closing balance at December 31, 2024
$— 
Refer to “Note 6 — Derivative Instruments” for further details on our derivative instruments.

Fair value measurement of equity investments

Our equity investment in Adevinta was accounted for under the fair value option and classified within Level 1 in the fair value hierarchy as the fair value was measured based on Adevinta’s closing stock price and prevailing foreign exchange rate at each balance sheet date. In the second quarter 2024, we sold our remaining stake in Adevinta.

Our equity investment in Gmarket was accounted for under the fair value option and classified within Level 3 in the fair value hierarchy as valuation of the investment reflected management’s estimate of assumptions that market participants would use in pricing the asset. In the fourth quarter of 2024, we sold our remaining stake in Gmarket.

The following table presents a reconciliation of the opening to closing balance of the equity investment in Gmarket measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions):
December 31,
2024
Opening balance at January 1, 2024
$335 
Change in fair value(12)
Fair value of shares sold
(323)
Closing balance at December 31, 2024
$— 

Certain other immaterial equity investments under the fair value option aggregating to $50 million as of June 30, 2025 and $54 million as of December 31, 2024 are measured at fair value using the net asset value per share and therefore, have not been classified in the fair value hierarchy.

Refer to “Note 5 — Investments” for further details about our equity investments.