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Fair Value Measurement and Financial Instruments | 3 Months Ended
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Mar. 31, 2022
Fair Value Disclosures [Abstract] |
Fair Value Measurement and Financial Instruments | Fair Value Measurements and Financial Instruments The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands):
| As of December 31, 2021
| Level 1 | Level 2 | Level 3 | Total
Assets |  |  |  |
Cash equivalents: |  |  |  |
Money market funds | $ | 1,923,184 |  | $ | — |  | $ | — |  | $ | 1,923,184 |
Certificates of deposit | 31,117 |  | — |  | — |  | 31,117 |
Commercial paper | — |  | 163,959 |  | — |  | 163,959 |
Corporate debt securities | — |  | 41,439 |  | — |  | 41,439 |
| 1,954,301 |  | 205,398 |  | — |  | 2,159,699 |
Marketable securities: |  |  |  |
Certificates of deposit | 364,234 |  | — |  | — |  | 364,234 |
U.S. government and government agency debt securities | — |  | 863 |  | — |  | 863 |
Commercial paper | — |  | 993,004 |  | — |  | 993,004 |
Corporate debt securities | — |  | 862,901 |  | — |  | 862,901 |
Mortgage-backed and asset-backed securities | — |  | 34,036 |  | — |  | 34,036 |
| 364,234 |  | 1,890,804 |  | — |  | 2,255,038 |
Funds receivable and amounts held on behalf of customers: |  |  |  |
Money market funds | 466,319 |  | — |  | — |  | 466,319 |
Prepaids and other current assets: |  |  |  |
Foreign exchange derivative assets | — |  | 25,918 |  | — |  | 25,918 |
Other assets, noncurrent: |  |  |  |
Corporate debt securities | — |  | — |  | 10,451 |  | 10,451 |
Total assets at fair value | $ | 2,784,854 |  | $ | 2,122,120 |  | $ | 10,451 |  | $ | 4,917,425 |
Liabilities |  |  |  |
Accrued expenses and other current liabilities: |  |  |  |
Foreign exchange derivative liabilities | $ | — |  | $ | 10,280 |  | $ | — |  | $ | 10,280 |
Total liabilities at fair value | $ | — |  | $ | 10,280 |  | $ | — |  | $ | 10,280 |
| As of March 31, 2022
| Level 1 | Level 2 | Level 3 | Total
Assets |  |  |  |
Cash equivalents: |  |  |  |
Money market funds | $ | 2,484,384 |  | $ | — |  | $ | — |  | $ | 2,484,384 |
Certificates of deposit | 60,919 |  | — |  | — |  | 60,919 |
Commercial paper | — |  | 265,857 |  | — |  | 265,857 |
Corporate debt securities | — |  | 35,914 |  | — |  | 35,914 |
| 2,545,303 |  | 301,771 |  | — |  | 2,847,074 |
Marketable securities: |  |  |  |
Certificates of deposit | 472,750 |  | — |  | — |  | 472,750 |
U.S. government and government agency debt securities | — |  | 350,450 |  | — |  | 350,450 |
Commercial paper | — |  | 838,815 |  | — |  | 838,815 |
Corporate debt securities | — |  | 741,971 |  | — |  | 741,971 |
Mortgage-backed and asset-backed securities | — |  | 31,675 |  | — |  | 31,675 |
| 472,750 |  | 1,962,911 |  | — |  | 2,435,661 |
Funds receivable and amounts held on behalf of customers: |  |  |  |
Money market funds | 1,203,019 |  | — |  | — |  | 1,203,019 |
U.S. government and government agency debt securities | — |  | 113,981 |  | — |  | 113,981 |
Prepaids and other current assets: |  |  |  |
Foreign exchange derivative assets | — |  | 16,129 |  | — |  | 16,129 |
Other assets, noncurrent: |  |  |  |
Corporate debt securities | — |  | — |  | 10,511 |  | 10,511 |
Total assets at fair value | $ | 4,221,072 |  | $ | 2,394,792 |  | $ | 10,511 |  | $ | 6,626,375 |
Liabilities |  |  |  |
Accrued expenses and other current liabilities: |  |  |  |
Foreign exchange derivative liabilities | $ | — |  | $ | 24,452 |  | $ | — |  | $ | 24,452 |
Total liabilities at fair value | $ | — |  | $ | 24,452 |  | $ | — |  | $ | 24,452 |
The following table presents additional information about investments that are measured at fair value for which the Company has utilized Level 3 inputs to determine fair value (in thousands):
|  | December 31, 2021 |  | March 31, 2022
|  | Other Assets, Noncurrent
Balance, beginning of period |  | $ | 11,490 |  |  | $ | 10,451 |
Total realized and unrealized gains (losses): |  |  |  |
Included in earnings |  | — |  |  | — |
Included in other comprehensive loss |  | (1,039) |  |  | 60 |
Balance, end of period |  | $ | 10,451 |  |  | $ | 10,511 |
Changes in unrealized gains or losses included in other comprehensive loss related to investments held at the reporting date |  | $ | (1,039) |  |  | $ | 60 |
There were no transfers of financial instruments between valuation levels during the three months ended March 31, 2022. The Company amended the anti-dilution feature in the warrant agreements associated with the Second Lien Credit Agreement, as defined in Note 6, Debt, below, which resulted in a change in classification from liability to equity, on March 30, 2021, the modification date. The Company recorded a marked-to-market charge of $292.0 million for the three months ended March 31, 2021, which was recorded in other expense, net on the condensed consolidated statements of operations. Subsequent to the modification date, the warrants were no longer subject to marked-to-market charges. The balance of $1.3 billion was then reclassified from liability to equity as the amended warrants met the requirements for equity classification. Refer to Note 6, Debt, for additional information. Derivatives Not Designated as Hedging Instruments As of December 31, 2021, the fair value of foreign exchange derivative assets and liabilities totaled $25.9 million and $10.3 million, respectively, with the aggregate notional amount totaling $2.4 billion. As of March 31, 2022, the fair value of foreign exchange derivative assets and liabilities totaled $16.1 million and $24.5 million, respectively, with the aggregate notional amount totaling $1.6 billion. Derivative assets are included in prepaids and other current assets and derivative liabilities are included in accrued expenses and other current liabilities in the condensed consolidated balance sheets. The Company recorded total net realized gains (losses) of $(15.4) million and $12.9 million for the three months ended March 31, 2021 and 2022, respectively, related to foreign exchange derivative assets and liabilities. The Company recorded total net unrealized gains (losses) of $39.9 million and $(24.0) million for the three months ended March 31, 2021 and 2022, respectively, related to foreign exchange derivative assets and liabilities. The realized and unrealized gains and losses on non-designated derivatives are reported in other expense, net in the condensed consolidated statements of operations. The cash flows related to derivative instruments not designated as hedging instruments are classified within operating activities in the condensed consolidated statements of cash flows. The Company has master netting arrangements with the respective counterparties to its derivative contracts, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. The Company presents its derivative assets and derivative liabilities at their gross fair values in its condensed consolidated balance sheets. As of December 31, 2021, the potential effect of these rights of set-off associated with the Company’s derivative contracts would be a reduction to both assets and liabilities of $10.3 million, resulting in net derivative assets of $15.6 million. As of March 31, 2022, the potential effect of these rights of set-off associated with the Company’s derivative contracts would be a reduction to both assets and liabilities of $15.7 million, resulting in net derivative assets of $0.4 million and net derivative liabilities of $8.7 million.

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- 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
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