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FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES
Assets and liabilities measured and recorded at fair value on a recurring basis
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022:
Balances as of
December 31, 2023		Quoted Prices in
active markets for
identical Assets
(Level 1)		Significant other
observable inputs
(Level 2)		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)
Cash and cash equivalents:
Money market$639 $639 $— $599 $599 $— $— 
U.S. government debt securities (1)
60 60 — 21 21 — — 
Foreign government debt securities (1)
32 32 — — — — — 
Restricted cash and cash equivalents:
Money market (2)
278 278 — 352 352 — — 
Foreign government debt securities (1)
116 116 — 158 158 — — 
Investments:
U.S. government debt securities (1)
1,009 1,009 — 733 733 — — 
Foreign government debt securities (1) (3)
2,530 2,530 — 1,433 1,433 — — 
Corporate debt securities30 30 — — — — — 
Other assets:
Derivative instruments23 — 23 1 — 1 — 
USDC— — — 3 3 — — 
Customer crypto-assets safeguarding assets34 — 34 15 — 15 — 
Intangible assets at fair value24 24 — — — — — 
Total assets$4,775 $4,718 $57 $3,315 $3,299 $16 $— 
Long-term retention program$104 $— $104 $58 $— $58 $— 
Other liabilities:
Contingent considerations— — — 8 — — 8 
Derivative instruments31 — 31 24 — 24 — 
Customer crypto-assets safeguarding liabilities34 — 34 15 — 15 — 
Total liabilities$169 $— $169 $105 $— $97 $8 
(1) Measured at fair value with impact on the consolidated statements of income for the application of the fair value option. (See Note 2 – Summary of significant accounting policies – Fair value option applied to certain financial instruments.)
(2) As of December 31, 2023 and 2022 includes $269 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.)
(3) As of December 31, 2023 and 2022 includes $23 million and $21 million, respectively, of investments from securitization transactions that are restricted to the payment of amounts due to third-party investors. In additional, includes foreign government debt securities that are also restricted due to regulations issued by the Central Banks and other regulators or because guarantees a line of credit. (See Note 5 – Cash, cash equivalents, restricted cash and cash equivalents and investments.)
As of December 31, 2023 and 2022, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis were valued using i) Level 1 inputs: unadjusted quoted prices in active markets (Level 1 instrument valuations are obtained from observable inputs that reflect quoted prices (unadjusted) for identical assets in active markets); ii) Level 2 inputs: obtained from readily-available pricing sources for comparable instruments as well as instruments with inactive markets at the measurement date; and iii) Level 3 inputs: valuations based on unobservable inputs reflecting Company’s assumptions. The unobservable inputs of the fair value of contingent considerations classified as Level 3 refer to the amounts to be paid according to the respective agreements of each acquisition, the likelihood of achievement of the performance targets arising from each one (expected to be 100%), and the Company’s historical experience with similar arrangements. Reasonable variation on those unobservable inputs would not significantly change the fair value of those instruments. As of December 31, 2023 and 2022, the Company had not changed the methodology nor the assumptions used to estimate the fair value of the financial instruments.
There were no transfers to and from Levels 1, 2 and 3 during the year ended December 31, 2023. There were no transfers to and from Levels 1, 2 and 3 during the year ended December 31, 2022, other than as detailed in the table below.
The following tables summarize the reconciliation of the financial assets and liabilities measured at fair value using Level 3 inputs as of December 31, 2022:
Year Ended December 31, 2022
Derivative Instruments, net
Contingent Considerations (1)
(In millions)
Balance, beginning of the year$11 $(9)
Net Additions3 — 
Settlements7 1 
Foreign Currency Translation(5)— 
Losses in Other Comprehensive Income(15)— 
Losses in Income Statement(28)— 
Transfers out of level 327 — 
Balance, end of the year$— $(8)
(1) As of December 31, 2023, the contingent considerations measured at fair value using Level 3 inputs were settled.
The Company’s election of the fair value option applies to the: i) Foreign government debt securities, and ii) U.S. government debt securities. The Company recognized fair value changes in interest income and other financial gains which includes the related interest income of those instruments. Such fair value changes and interest income amount to $268 million, $154 million and $36 million for the years ended December 31, 2023, 2022 and 2021, respectively.
As of December 31, 2023, the cost and the estimated fair value of the Company’s investment in corporate debt securities classified as available for sale amounted to $30 million. During the year ended December 31, 2023, the gross unrealized gains were less than $1 million. As of December 31, 2022, the Company held no investment in corporate debt securities classified as available for sale. However, during the year ended December 31, 2022, the Company purchased and sold these kind of instruments, being the proceeds from the sales $156 million and the gross realized gains less than $1 million. The cost of these securities are determined under a specific identification basis.
The following table summarizes the net carrying amount of the corporate debt securities classified as available for sale, classified by its contractual maturities:
Balances as of
December 31, 2023
(In millions)
One year or less$5 
One year to two years12 
Two years to three years4 
Three years to four years3 
Four years to five years6 
Total available for sale investments
$30 
The following table summarizes the net carrying amount of the debt securities not classified as available for sale, classified by its contractual maturities or Management expectation to convert the investments into cash:
Balances as of
December 31, 2023		Balances as of
December 31, 2022
(In millions)
One year or less$3,668 $2,079 
One year to two years4 201 
Two years to three years— 5 
Three years to four years35 — 
Four years to five years37 30 
More than five years3 30 
$3,747 $2,345 
Financial assets and liabilities not measured and recorded at fair value
The following table summarizes the estimated fair value level of the financial assets and liabilities of the Company not measured at fair value as of December 31, 2023 and 2022:
Balances as of
December 31, 2023		Estimated fair value as of December 31, 2023Balances as of
December 31, 2022		Estimated fair value as of December 31, 2022
(In millions)
Cash and cash equivalents$1,825 $1,825 $1,290 $1,290 
Restricted cash and cash equivalents898 898 943 943 
Investments15 15 439 439 
Accounts receivables, net156 156 130 130 
Credit card receivables and other means of payment, net3,632 3,632 2,946 2,946 
Loans receivable, net2,694 2,676 1,736 1,761 
Other assets131 131 273 273 
Total Assets$9,351 $9,333 $7,757 $7,782 
Accounts payable and accrued expenses$2,117 $2,117 $1,393 $1,393 
Funds payable to customers4,475 4,475 3,454 3,454 
Amounts payable due to credit and debit card transactions1,092 1,092 488 488 
Salaries and social security payable441 441 349 349 
Loans payable and other financial liabilities4,495 4,441 4,758 4,997 
Other liabilities285 285 186 186 
Total Liabilities$12,905 $12,851 $10,628 $10,867 
As of December 31, 2023 and 2022, the carrying value of the Company’s financial assets (except for loans receivable and equity securities held at cost) not measured at fair value approximated their fair value mainly because of their short-term maturity. If these financial assets were measured at fair value in the financial statements, cash and restricted cash would be classified as Level 1 (where cost and fair value are aligned) and the remaining financial assets would be classified as Level 2. The estimated fair value of the loans receivable would be classified as Level 3 based on the Company’s assumptions.
As of December 31, 2023 and 2022, the carrying value of the Company’s financial liabilities (except for 2028 Notes, 2026 Sustainability Notes and 2031 Notes) not measured at fair value approximated their fair value mainly because of their short-term maturity and the effective interest rates are not materially different from market interest rates. If these financial liabilities were measured at fair value in the financial statements, these would be classified as Level 2. As of December 31, 2023 and 2022, the estimated fair value of the 2026 Notes would be $375 million and $359 million, respectively, and the estimated fair value of the 2026 Notes would be $599 million and $541 million, respectively, which is based on Level 2 inputs. Also, as of December 31, 2022, the estimated fair value of the 2028 Notes was $884 million, and was classified as Level 2 based on the closing trading price per $100 principal amount of the 2028 Notes as of the last day of trading for the period. The fair value of the 2028 Notes was primarily affected by the trading price of the Company’s common stock and market interest rates.