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Fair value measurement of assets and liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:

Description						Balances as of September 30, 2023						Quoted Prices in active markets for identical Assets (Level 1)						Significant other observable inputs (Level 2)						Unobservable inputs (Level 3)						Balances as of December 31, 2022						Quoted Prices in active markets for identical Assets (Level 1)						Significant other observable inputs (Level 2)						Unobservable inputs (Level 3)
						(In millions)
Assets
Cash and Cash Equivalents:
Money Market						$	764					$	764					$	—					$	—					$	599					$	599					$	—					$	—
U.S. government debt securities (1)						—						—						—						—						21						21						—						—
Restricted Cash and Cash Equivalents:
Money Market (3)						219						219						—						—						352						352						—						—
Foreign government debt securities (Central Bank of Brazil Mandatory Guarantee) (1)						—						—						—						—						158						158						—						—
Investments:
U.S. government debt securities (1)						1,124						1,124						—						—						733						733						—						—
Foreign government debt securities (Central Bank of Brazil Mandatory Guarantee) (1)						1,762						1,762						—						—						1,219						1,219						—						—
Foreign government debt securities (1) (2)						186						186						—						—						214						214						—						—
Equity securities at fair value						13						13						—						—						—						—						—						—
Other Assets:
Derivative Instruments						16						—						16						—						1						—						1						—
USDC						—						—						—						—						3						3						—						—
Customer crypto-assets safeguarding assets						21						—						21						—						15						—						15						—
Total Assets						$	4,105					$	4,068					$	37					$	—					$	3,315					$	3,299					$	16					$	—
Liabilities:
Long-term retention program						$	74					$	—					$	74					$	—					$	58					$	—					$	58					$	—
Other Liabilities:
Contingent considerations						—						—						—						—						8						—						—						8
Derivative Instruments						18						—						18						—						24						—						24						—
Customer crypto-assets safeguarding liabilities						21						—						21						—						15						—						15						—
Total Liabilities						$	113					$	—					$	113					$	—					$	105					$	—					$	97					$	8

(1)Measured at fair value with impact on the statement of income for the application of the fair value option. (See Note 2 – Fair value option applied to certain financial instruments).

(2)As of September 30, 2023 and December 31, 2022 includes $25 million and $21 million, respectively, of investments from securitization transactions that are restricted to the payment of amounts due to third-party investors. (See Note 5 - Cash, cash equivalents, restricted cash and cash equivalents and investments).

(3)As of September 30, 2023 and December 31, 2022 includes $193 million and $314 million, respectively, of money market funds from securitization transactions. (See Note 5 - Cash, cash equivalents, restricted cash and cash equivalents and investments).

Summary of Reconciliation of Financial Liabilities Valuated at Fair Value

The following table summarizes the reconciliation of the financial liabilities measured at fair value using Level 3 inputs as of December 31, 2022:

			Year Ended December 31, 2022
			Derivative Instruments, net						Contingent Considerations
			(In millions)
Balance, beginning of the year			$	11					$	(9)
Net Additions			3						—
Settlements			7						1
Foreign Currency Translation			(5)						—
Gain (Losses) in Other Comprehensive Income			(15)						—
Gain (Losses) on Income Statement			(28)						—
Transfers out of level 3 to level 2			27						—
Balance, end of the year			$	—					$	(8)

Fair Value of Financial Assets and Liabilities Measured at Amortized Cost

The following table summarizes the estimated fair value of the financial assets and liabilities of the Company not measured at fair value as of September 30, 2023 and December 31, 2022:

			Balances as of September 30, 2023						Estimated fair value as of September 30, 2023						Balances as of December 31, 2022						Estimated fair value as of December 31, 2022
			(In millions)
Assets
Cash and cash equivalents			$	1,407					$	1,407					$	1,290					$	1,290
Restricted cash and cash equivalents			866						866						943						943
Investments			326						326						439						439
Accounts receivables, net			161						161						130						130
Credit card receivables and other means of payment, net			3,375						3,375						2,946						2,946
Loans receivable, net			2,378						2,387						1,736						1,761
Other assets			395						395						273						273
Total Assets			$	8,908					$	8,917					$	7,757					$	7,782
Liabilities
Accounts payable and accrued expenses			$	1,910					$	1,910					$	1,393					$	1,393
Funds payable to customers			4,016						4,016						3,454						3,454
Amounts payable due to credit and debit card transactions			757						757						488						488
Salaries and social security payable			445						445						349						349
Loans payable and other financial liabilities			4,454						4,486						4,758						4,997
Other liabilities			206						206						186						186
Total Liabilities			$	11,788					$	11,820					$	10,628					$	10,867

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 2
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Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing.

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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-Topic 820
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