v3.26.1
Financial Instruments
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Financial Instruments
Note 2 – Financial Instruments
Fair value measurement
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents our financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in millions):
As of December 31, 2025As of June 30, 2026
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Financial Assets
Money market funds$1,624 $— $— $1,624 $252 $— $— $252 
U.S. government and agency securities— 7,323 — 7,323 — 7,386 — 7,386 
Commercial paper— 715 — 715 — 324 — 324 
Corporate bonds— 2,194 — 2,194 — 2,267 — 2,267 
Certificates of deposit— 72 — 72 — 81 — 81 
Mortgage-backed and asset-backed securities— 22 — 22 — 62 — 62 
Non-marketable equity securities(1)
— — 69 69 — 351 — 351 
Marketable equity securities4,593 — — 4,593 4,596 — — 4,596 
Note receivable from a related party(1)
— — 190 190 — — — — 
Total Return Swaps— — — — — 1,504 — 1,504 
Derivative assets
— — — — — 11 136 147 
Total financial assets$6,217 $10,326 $259 $16,802 $4,848 $11,986 $136 $16,970 
Financial Liabilities
2028 Exchangeable Senior Notes (2)
$— $1,125 $— $1,125 $— $1,324 $— $1,324 
Derivative liabilities
— 5 — 5 — 2 — 2 
Total financial liabilities$— $1,130 $— $1,130 $— $1,326 $— $1,326 
(1) Consists of our investments in Neutron Holdings, Inc. (“Lime”) in preferred stock, common stock and convertible note receivable. We elected the fair value option for Lime related investments. Lime completed their initial public offering (“IPO”) on June 30, 2026 and started trading on July 1, 2026. Following Lime’s IPO on June 30, 2026, the preferred stock and convertible note receivable have been converted to common stock of Lime and Lime-related investments were transferred out of Level 3 to Level 2.
(2) Refer to Note 5 – Debt and Credit Arrangements for further information.
Assets Measured at Fair Value on a Non-Recurring Basis
Our non-marketable equity securities are investments in privately held companies without readily determinable fair values. The carrying value of our non-marketable equity securities are adjusted based on price changes from observable transactions of identical or similar securities of the same issuer (referred to as the measurement alternative) or for impairment. Any changes in carrying value are recorded within other income (expense), net in the condensed consolidated statements of operations.
Non-marketable equity securities that have been remeasured during the period based on observable transactions are classified within Level 2 in the fair value hierarchy. We measure the fair value of our Didi investment based on the closing share price of the Didi American Depositary Shares on the over-the-counter market as an observable transaction for similar securities. Certain non-marketable equity securities and note receivable are classified within Level 3 in the fair value hierarchy because we estimate the fair value of these securities based on valuation methods, including the common stock equivalent (“CSE”) and option-pricing model (“OPM”) methods, using the transaction price of similar securities issued by the investee adjusted for contractual rights and obligations of the securities we hold.
Financial Assets Measured at Fair Value Using Level 3 Inputs
The following table presents a reconciliation of our financial assets measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions):
Non-marketable equity securitiesNote receivableEmbedded derivatives
Balance as of December 31, 2025$69 $190 $13 
Change in fair value included in other income (expense), net112(20)13 
Purchases— — 110 
Conversion170(170)— 
Transfer out of level 3(351)— — 
Balance as of June 30, 2026$— $— $136 
Debt Securities
The following table summarizes the amortized cost, unrealized gains and losses, and fair value of our debt securities (in millions):
As of December 31, 2025
Reported As
Amortized CostUnrealized GainsUnrealized LossesFair ValueCash and cash equivalent
Short-term investments
Restricted cash and cash equivalent
Restricted investments
U.S. government and agency securities$7,315 $8 $— $7,323 $40 $149 $304 $6,830 
Commercial paper715 — — 715 553 75 — 87 
Corporate bonds2,190 4 — 2,194 — 271 26 1,897 
Certificates of deposit71 — — 71 — 33 — 38 
Mortgage-backed and asset-backed securities22 — — 22 — — — 22 
Total$10,313 $12 $— $10,325 $593 $528 $330 $8,874 
As of June 30, 2026
Reported As
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash and cash equivalent
Short-term investments
Other Current Assets
Restricted cash and cash equivalent
Restricted investments
U.S. government and agency securities$7,395 $— $(9)$7,386 $8 $129 $— $6 $7,243 
Commercial paper324 — — 324 26 77 — 10 211 
Corporate bonds2,269 1 (3)2,267 — 253 55 8 1,951 
Certificates of deposit81 — — 81 — 32 — — 49 
Mortgage-backed and asset-backed securities62 — — 62 — 30 — — 32 
Total$10,131 $1 $(12)$10,120 $34 $521 $55 $24 $9,486 
As of December 31, 2025 and June 30, 2026, there were no allowance for credit losses related to our debt securities. The weighted-average remaining maturity of our debt securities was less than one year as of June 30, 2026.
Investments
Our investments on the condensed consolidated balance sheets consisted of the following (in millions):
As of
December 31, 2025June 30, 2026
Non-marketable equity securities:
Didi$3,011 $1,900 
Other1,455 2,263 
Marketable equity securities:
Grab2,674 2,020 
Aurora(1)
1,252 1,763 
Other667 813 
Note receivable119 — 
Investments$9,178 $8,759 
(1) In connection with our exchangeable senior notes due in 2028 (the “2028 Exchangeable Senior Notes”), as of December 31, 2025 and June 30, 2026, approximately 48% and 61%, respectively, of our Aurora Innovation, Inc. (“Aurora”) Class A common stock is pledged as collateral and cannot be sold or transferred during the term of the 2028 Exchangeable Senior Notes until the obligations are fulfilled or the pledged assets are otherwise released under a collateral agreement. Refer to Note 5 – Debt and Credit Arrangements for further information.
Non-marketable equity securities
The following table summarizes the total carrying value of our non-marketable equity securities measured at fair value on a non-recurring basis held, including cumulative unrealized upward and downward adjustments made to the initial cost basis of the securities (in millions):
As of
December 31, 2025June 30, 2026
Initial cost basis$2,673 $3,124 
Upward adjustments3,726 3,757 
Downward adjustments (including impairment)(2,002)(3,069)
Total carrying value at the end of the period$4,397 $3,812 
Gains and losses on equity securities
Gains and losses (including impairments), net, for equity securities included in other income (expense), net, are summarized below (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2025202620252026
Realized net gains (losses) on equity securities sold during the period$10 $203 $13 $203 
Unrealized net gains (losses) on non-marketable equity securities38 (312)189 (972)
Unrealized net gains (losses) on marketable equity securities(67)1,727 (170)928 
Total gains (losses) on equity securities in other income (expense), net(19)1,618 32 159 
Unrealized gains (losses) recognized during the period on equity securities still held at the reporting date$(29)$1,415 $19 $(44)
Non-marketable equity securities accounted for under the measurement alternative
Upward adjustments35 — 190 32 
Downward adjustments (including impairment)— (444)— (1,117)
In the table above, realized net gain (loss) on equity securities sold during the period reflects the difference between the sale proceeds and the carrying value of the equity securities at the beginning of the period or the purchase date, if later.
Total Return Swaps (TRS)
During the three months ended June 30, 2026, we entered into TRS agreements for $1.6 billion in cash. We held TRS for investments and the underlying assets of TRS are Delivery Hero’s common stock. We accounted for the TRS at fair value, with changes in fair value recognized in other income (expense), net. The TRS are included within other non-current assets on our condensed consolidated balance sheets. The carrying value of TRS as of June 30, 2026 is $1.5 billion. The fair value of the TRS was determined under the market approach using quoted prices of the underlying investments and, as such, is classified as level 2 of the valuation hierarchy.
Loan Receivables and Convertible Notes
Loan receivables and the majority of our convertible notes are recorded at amortized cost which includes unpaid principal balances and any related discount or premium, net of allowances for credit losses. The convertible notes provide us with the right to convert the outstanding principal into equity interests of the counterparty upon the occurrence of defined contractual events. These arrangements contain embedded derivatives, which are bifurcated and accounted for separately at fair value, with changes in fair value recognized in other income (expense), net. The loan receivable and note receivable are included within other non-current assets on our condensed consolidated balance sheets. As of December 31, 2025 and June 30, 2026, the carrying value of loan receivable and notes receivable are $632 million and $864 million.
Derivative Financial Instruments
We enter into derivative instruments, consisting of foreign exchange contracts, to mitigate forecasted transactions denominated in currencies other than the functional currency and the foreign currency exchange risk of our assets and liabilities. We do not use derivatives for trading or speculative purposes. We have master netting arrangements with certain counterparties to our foreign exchange contracts, which are designed to reduce credit risk by permitting net settlement of same type transactions with a single net amount payable by one party to the other. However, we elected to present derivative assets and derivative liabilities on a gross basis on our condensed consolidated balance sheets. We also enter into derivative instruments to enhance investment returns.
All derivative instruments are recorded at fair value and classified within Level 2 or Level 3 of the fair value hierarchy, and the accounting treatment for derivative gains and losses depends on whether the derivative is designated as a hedging instrument and the nature of the underlying exposure. As of December 31, 2025 and June 30, 2026 and for the three and six months ended June 30, 2026, the fair values of our outstanding derivative instruments, as well as any related realized or unrealized gains and losses are recognized in other income (expense), net in the condensed consolidated statements of operations, and amounts recorded in or reclassified from accumulated other comprehensive income (loss) (“AOCI”), were immaterial to our condensed consolidated statements of operations.
Cash Flow Hedges
We designate certain foreign exchange contracts as cash flow hedges to protect forecasted revenue, typically hedging exposures for up to 12 months, with total notional amounts of $378 million and $723 million as of December 31, 2025 and June 30, 2026, respectively.
Gains and losses on these derivatives that are included in the assessment of hedge effectiveness are initially deferred in AOCI and subsequently reclassified into earnings in the same line item within the condensed consolidated statements of operations when the hedged transaction affects earnings. We do not exclude any components in the assessment of hedge effectiveness for forward contracts. If it becomes probable that a forecasted transaction will not occur, hedge accounting is discontinued, and the associated derivatives are accounted for as undesignated instruments, with amounts previously recorded in AOCI reclassified into other income (expense), net in the period of discontinuation. Cash flows associated with cash flow hedges are classified within operating activities in our condensed consolidated statements of cash flows.
Derivatives Not Designated as Hedging Instruments
We utilize foreign exchange contracts not designated as hedging instruments to mitigate foreign currency exchange risk of our assets and liabilities, with total notional amounts of $1.6 billion and $1.4 billion as of December 31, 2025 and June 30, 2026, respectively. Gains and losses on these derivatives are recognized in other income (expense), net in the condensed consolidated statements of operations, and the related cash flows are classified within investing activities in the condensed consolidated statements of cash flows.