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Investments | 6 Months Ended
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Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments The Company’s investments on the consolidated balance sheet include both available-for-sale and held-to-maturity debt securities (see Investments section below). The Company classifies its investments in equity securities of publicly traded and privately held companies within other assets on the consolidated balance sheet (see Equity Investments section below). Investments Investments on the consolidated balance sheet consisted of the following:
|  | June 30, 2023 |  | December 31, 2022
|  | (in millions)
Available-for-sale securities 1 |  | $ | 279 |  |  | $ | 272 |
Held-to-maturity securities 2 |  | 65 |  |  | 128 |
Total investments |  | $ | 344 |  |  | $ | 400 |
1 See Available-for-Sale Securities section below for further detail. 2 Held-to-maturity securities represent investments in time deposits that mature within one year. The cost of these securities approximates fair value. Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, held-to maturity and available-for-sale investment securities, as well as realized gains and losses on the Company’s investment securities. The realized gains and losses from the sales of available-for-sale securities for the three and six months ended June 30, 2023 and 2022 were not material. Available-for-Sale Securities The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values were as follows:
|  | June 30, 2023 |  | December 31, 2022
|  | Amortized Cost |  | Gross Unrealized Gain |  | Gross Unrealized Loss |  | Fair Value |  | Amortized Cost |  | Gross Unrealized Gain |  | Gross Unrealized Loss |  | Fair Value
|  | (in millions)
Government and agency securities |  | $ | 100 |  |  | $ | — |  |  | $ | (1) |  |  | $ | 99 |  |  | $ | 91 |  |  | $ | — |  |  | $ | (2) |  |  | $ | 89 |
Corporate securities |  | 183 |  |  | — |  |  | (3) |  |  | 180 |  |  | 187 |  |  | — |  |  | (4) |  |  | 183 |
Total |  | $ | 283 |  |  | $ | — |  |  | $ | (4) |  |  | $ | 279 |  |  | $ | 278 |  |  | $ | — |  |  | $ | (6) |  |  | $ | 272 |
The Company’s government and agency securities include U.S. government bonds, U.S. government sponsored agency bonds and foreign government bonds which are denominated in the national currency of the issuing country. Corporate available-for-sale investment securities held at June 30, 2023 and December 31, 2022 primarily carried a credit rating of A- or better. Corporate securities are comprised of commercial paper and corporate bonds. Unrealized gains and losses are recorded as a separate component of other comprehensive income (loss) on the consolidated statement of comprehensive income. The maturity distribution based on the contractual terms of the Company’s available-for-sale investment securities at June 30, 2023 was as follows:
|  | Amortized Cost |  | Fair Value
|  | (in millions)
Due within 1 year |  | $ | 167 |  |  | $ | 166 |
Due after 1 year through 5 years |  | 116 |  |  | 113 |
Total |  | $ | 283 |  |  | $ | 279 |
Equity Investments Included in other assets on the consolidated balance sheet are equity investments with readily determinable fair values (“Marketable securities”) and equity investments without readily determinable fair values (“Nonmarketable securities”). Marketable securities are equity interests in publicly traded companies and are measured using unadjusted quoted prices in their respective active markets. Nonmarketable securities that do not qualify for equity method accounting are measured at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer (“Measurement alternative”). The following table is a summary of the activity related to the Company’s equity investments:
|  | Balance at December 31, 2022 |  | Purchases |  | Sales |  | Changes in Fair Value 1 |  | Other 2 |  | Balance at June 30, 2023
|  | (in millions)
Marketable securities |  | $ | 399 |  |  | $ | — |  |  | $ | — |  |  | $ | 55 |  |  | $ | 8 |  |  | $ | 462 |
Nonmarketable securities |  | 1,331 |  |  | 53 |  |  | (44) |  |  | (144) |  |  | 6 |  |  | 1,202 |
Total equity investments |  | $ | 1,730 |  |  | $ | 53 |  |  | $ | (44) |  |  | $ | (89) |  |  | $ | 14 |  |  | $ | 1,664 |
1 Recorded in gains (losses) on equity investments, net on the consolidated statement of operations. 2 Includes translational impact of currency. The following table sets forth the components of the Company’s Nonmarketable securities:
|  | June 30, 2023 |  | December 31, 2022
|  | (in millions)
Measurement alternative |  | $ | 991 |  |  | $ | 1,087 |
Equity method |  | 211 |  |  | 244 |
Total Nonmarketable securities |  | $ | 1,202 |  |  | $ | 1,331 |
The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through June 30, 2023:
|  | (in millions)
Initial cost basis |  | $ | 529 |
Cumulative adjustments 1: |  |
Upward adjustments |  | 629 |
Downward adjustments (including impairment) |  | (167) |
Carrying amount, end of period |  | $ | 991 |
1 Includes immaterial translational impact of currency. The following table summarizes the unrealized gains and losses included in the carrying value of the Company’s Measurement alternative investments and Marketable securities:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
|  | (in millions)
Measurement alternative investments: |  |  |  |  |  |  |  |
Upward adjustments |  | $ | 6 |  |  | $ | 17 |  |  | $ | 6 |  |  | $ | 103 |
Downward adjustments (including impairment) |  | (2) |  |  | (12) |  |  | (135) |  |  | (12) |
Marketable securities: |  |  |  |  |  |  |  |
Unrealized gains (losses), net |  | 121 |  |  | (126) |  |  | 55 |  |  | (288) |

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- Definition The entire disclosure for investment. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 321 -Publisher FASB -URI https://asc.fasb.org//321/tableOfContent Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Topic 325 -Publisher FASB -URI https://asc.fasb.org//325/tableOfContent + Details
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