XML 25 R10.htm IDEA: XBRL DOCUMENT
v3.22.1

Investments and Fair Value Measurement | 3 Months Ended
--- | ---
Mar. 31, 2022
Fair Value Disclosures [Abstract] |
Investments and Fair Value Measurement | Note 3 – Investments and Fair Value Measurement Investments Our investments on the condensed consolidated balance sheets consisted of the following (in millions):
|  | As of
|  | December 31, 2021 |  | March 31, 2022
Non-marketable equity securities (1) |  | $ | 315 |  |  | $ | 306 |
Marketable equity securities: |  |  |  |
Didi |  | 2,838 |  |  | 1,410 |
Grab |  | 3,821 |  |  | 1,876 |
Aurora |  | 3,388 |  |  | 1,682 |
Other |  | 1,312 |  |  | 843 |
Note receivable from a related party (1) |  | 132 |  |  | 130 |
Investments |  | $ | 11,806 |  |  | $ | 6,247 |
(1) These balances include certain investments recorded at fair value with changes in fair value recorded in earnings due to the election of the fair value option of accounting for financial instruments. 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, 2021 |  | As of March 31, 2022
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-marketable equity securities |  | $ | — |  |  | $ | — |  |  | $ | 32 |  |  | $ | 32 |  |  | $ | — |  |  | $ | — |  |  | $ | 21 |  |  | $ | 21 |
Marketable equity securities |  | 11,359 |  |  | — |  |  | — |  |  | 11,359 |  |  | 5,811 |  |  | — |  |  | — |  |  | 5,811 |
Note receivable from a related party |  | — |  |  | — |  |  | 132 |  |  | 132 |  |  | — |  |  | — |  |  | 130 |  |  | 130 |
Total financial assets |  | $ | 11,359 |  |  | $ | — |  |  | $ | 164 |  |  | $ | 11,523 |  |  | $ | 5,811 |  |  | $ | — |  |  | $ | 151 |  |  | $ | 5,962 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MLU B.V. Call Option (1) |  | $ | — |  |  | $ | — |  |  | $ | 193 |  |  | $ | 193 |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |  |  | $ | 12 |
Total financial liabilities |  | $ | — |  |  | $ | — |  |  | $ | 193 |  |  | $ | 193 |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |  |  | $ | 12 |
(1) For further information, see Note 4 – Equity Method Investments. During the three months ended March 31, 2022, we did not make any transfers between the levels of the fair value hierarchy. We measure certain investments at fair value. Level 1 instrument valuations are based on quoted market prices of the identical underlying security. 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 are valued based on unobservable inputs and other estimation techniques due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such financial instruments. As of December 31, 2021 and March 31, 2022, our Level 3 non-marketable equity securities and note receivable from a related party primarily consist of common stock investments, preferred stock investments and convertible secured notes that may be converted into common or preferred stock in privately held companies without readily determinable fair values. Depending on the investee’s financing activity in a reporting period, management’s estimate of fair value may be primarily derived from the investee’s financing transactions, such as the issuance of preferred stock to new investors. The price in these transactions generally provides the best indication of the enterprise value of the investee. Additionally, based on the timing, volume, and other characteristics of the transaction, we may supplement this information by using other valuation techniques, including the guideline public company approach. The guideline public company approach relies on publicly available market data of comparable companies and uses comparative valuation multiples of the investee’s revenue (actual and forecasted), and therefore, unobservable input used in this valuation technique primarily consists of short-term revenue projections. Once the fair value of the investee is estimated, an option-pricing model (“OPM”), a common stock equivalent (“CSE”) method or a hybrid approach is employed to allocate value to various classes of securities of the investee, including the class owned by us. The model involves making assumptions around the investees’ expected time to liquidity and volatility. An increase or decrease in any of the unobservable inputs in isolation, such as the security price in a significant financing transaction of the investee, could result in a material increase or decrease in our estimate of fair value. Other unobservable inputs, including short-term revenue projections, time to liquidity, and volatility are less sensitive to the valuation in the respective reporting periods, as a result of the primary weighting on the investee’s financing transactions. In the future, depending on the weight of evidence and valuation approaches used, these or other inputs may have a more significant impact on our estimate of fair value. We determine realized gains or losses on the sale of equity on a specific identification method. Financial Assets and Liabilities Measured at Fair Value Using Level 3 Inputs The following table presents a reconciliation of our financial assets and liabilities measured and recorded at fair value on a recurring basis as of March 31, 2022, using significant unobservable inputs (Level 3) (in millions):
|  |  |  | Non-marketable Equity Securities |  | Note Receivables |  | MLU B.V. Call Option
Balance as of December 31, 2021 |  |  |  | $ | 32 |  |  | $ | 132 |  |  | $ | 193 |
Change in fair value |  |  |  |  |  |  |  |
Included in earnings |  |  |  | (11) |  |  | (2) |  |  | (181) |
Balance as of March 31, 2022 |  |  |  | $ | 21 |  |  | $ | 130 |  |  | $ | 12 |
Assets Measured at Fair Value on a Non-Recurring Basis Non-Financial Assets Our non-financial assets, such as goodwill, intangible assets and property and equipment are adjusted to fair value when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 3 inputs. Non-Marketable Equity Securities 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 statement of operations. Non-marketable equity securities 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 CSE and OPM methods, using the transaction price of similar securities issued by the investee adjusted for contractual rights and obligations of the securities we hold. We did not record any material unrealized or realized gains or losses for our non-marketable equity securities measured at fair value on a non-recurring basis during the three months ended March 31, 2021 and 2022. 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, 2021 |  | March 31, 2022
Initial cost basis |  | $ | 279 |  |  | $ | 281 |
Upward adjustments |  | 4 |  |  | 4 |
Downward adjustments (including impairment) |  | — |  |  | — |
Total carrying value at the end of the period |  | $ | 283 |  |  | $ | 285 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration