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Funds Receivable and Customer Accounts and Investments
 3 Months Ended
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Funds Receivable and Customer Accounts and Investments FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS
The following table summarizes the assets underlying our funds receivable and customer accounts, short-term investments, and long-term investments as of March 31, 2021 and December 31, 2020:
 March 31,
2021		December 31,
2020
(In millions)
Funds receivable and customer accounts:
Cash and cash equivalents$13,257 $13,222 
Time deposits248 233 
Available-for-sale debt securities16,997 15,001 
Funds receivable5,121 4,962 
Total funds receivable and customer accounts$35,623 $33,418 
Short-term investments:
Time deposits$1,482 $1,519 
Available-for-sale debt securities5,861 6,689 
Restricted cash26 81 
Total short-term investments$7,369 $8,289 
Long-term investments:
Time deposits$41 $31 
Available-for-sale debt securities3,074 2,819 
Restricted cash— 7 
Strategic investments2,879 3,232 
Total long-term investments$5,994 $6,089 

As of March 31, 2021 and December 31, 2020, the estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments was as follows:
 
March 31, 2021(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$8,013 $4 $(2)$8,015 
Foreign government and agency securities1,877 — (2)1,875 
Corporate debt securities3,558 — (2)3,556 
Asset-backed securities443 — — 443 
Municipal securities633 — — 633 
Short-term investments:
U.S. government and agency securities1,340 — — 1,340 
Foreign government and agency securities444 — — 444 
Corporate debt securities3,421 1 — 3,422 
Asset-backed securities147 — — 147 
Long-term investments:
Foreign government and agency securities1,506 — (2)1,504 
Corporate debt securities1,406 2 (3)1,405 
Asset-backed securities165 — — 165 
Total available-for-sale debt securities(2)
$22,953 $7 $(11)$22,949 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”
 
December 31, 2020(1)
 Gross
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$7,929 $4 $— $7,933 
Foreign government and agency securities1,504 2 — 1,506 
Corporate debt securities2,011 — — 2,011 
Municipal securities637 — — 637 
Short-term investments:
U.S. government and agency securities1,510 — — 1,510 
Foreign government and agency securities277 — — 277 
Corporate debt securities4,900 2 — 4,902 
Long-term investments:
U.S. government and agency securities28 — — 28 
Foreign government and agency securities1,305 — (1)1,304 
Corporate debt securities1,255 4 — 1,259 
Asset-backed securities228 — — 228 
Total available-for-sale debt securities(2)
$21,584 $12 $(1)$21,595 
(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.
(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”

Gross amortized cost and estimated fair value balances exclude accrued interest receivable on available-for-sale debt securities, which totaled $44 million and $42 million at March 31, 2021 and December 31, 2020, respectively, and were included in other current assets on our condensed consolidated balance sheets. As of March 31, 2021 and December 31, 2020, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses was not deemed necessary, aggregated by length of time those individual securities have been in a continuous loss position, was as follows:
 
March 31, 2021(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$1,567 $(2)$— $— $1,567 $(2)
Foreign government and agency securities1,158 (2)— — 1,158 (2)
Corporate debt securities1,128 (2)— — 1,128 (2)
Asset-backed securities181 — — — 181 — 
Short-term investments:
U.S. government and agency securities520 — — — 520 — 
Foreign government and agency securities132 — — — 132 — 
Corporate debt securities360 — — — 360 — 
Asset-backed securities58 — — — 58 — 
Long-term investments:
Foreign government and agency securities1,056 (2)— — 1,056 (2)
Corporate debt securities762 (3)— — 762 (3)
Asset-backed securities129 — — — 129 — 
Total available-for-sale debt securities$7,051 $(11)$— $— $7,051 $(11)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.
 
December 31, 2020(1)
Less than 12 months12 months or longerTotal
 Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
(In millions)
Funds receivable and customer accounts:
U.S. government and agency securities$262 $— $— $— $262 $— 
Foreign government and agency securities353 — — — 353 — 
Corporate debt securities641 — — — 641 — 
Municipal securities50 — — — 50 — 
Short-term investments:
U.S. government and agency securities270 — — — 270 — 
Foreign government and agency securities72 — — — 72 — 
Corporate debt securities392 — — — 392 — 
Long-term investments:
U.S. government and agency securities28 — — — 28 — 
Foreign government and agency securities405 (1)— — 405 (1)
Corporate debt securities97 — — — 97 — 
Asset-backed securities15 — — — 15 — 
Total available-for-sale debt securities$2,585 $(1)$— $— $2,585 $(1)
(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.

Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market conditions, rather than credit losses. We will continue to monitor the performance of the investment portfolio and assess whether impairment due to expected credit losses has occurred. Amounts reclassified to earnings from unrealized gains and losses were not material for the three months ended March 31, 2021 and 2020.

Our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows:
 March 31, 2021
Amortized CostFair Value
(In millions)
One year or less $15,557 $15,561 
After one year through five years7,135 7,127 
After five years through ten years243 243 
After ten years18 18 
Total$22,953 $22,949 

STRATEGIC INVESTMENTS

Our strategic investments include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies. Our marketable equity securities have readily determinable fair values and are recorded as long-term investments on our condensed consolidated balance sheets at fair value with changes in fair value recorded in other income (expense), net on our condensed consolidated statements of income. Marketable equity securities totaled $2.1 billion and $2.4 billion as of March 31, 2021 and December 31, 2020, respectively, including the impact of the sale of securities.
Our non-marketable equity securities are recorded in long-term investments on our condensed consolidated balance sheets. As of March 31, 2021 and December 31, 2020, we had non-marketable equity securities of $28 million and $10 million, respectively, where we have the ability to exercise significant influence, but not control, over the investee. We account for these equity securities using the equity method of accounting. The remaining non-marketable equity securities do not have a readily determinable fair value and we measure these equity investments at cost minus impairment, if any, and adjust for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer. All gains and losses on these investments, realized and unrealized, and our share of earnings or losses from investments accounted for using the equity method are recognized in other income (expense), net on our condensed consolidated statements of income. The carrying value of our non-marketable equity securities totaled $829 million and $789 million as of March 31, 2021 and December 31, 2020, respectively.

Measurement Alternative adjustments

The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three months ended March 31, 2021 and 2020 were as follows:
Three Months Ended March 31,
 20212020
(In millions)
Carrying amount, beginning of period$779 $497 
Adjustments related to non-marketable equity securities:
Net additions (sales)(1)
10 (9)
Gross unrealized gains12 45 
Gross unrealized losses and impairments— (13)
Carrying amount, end of period$801 $520 
(1) Net additions (sales) include additions from purchases, reductions due to sales of securities, and reclassifications when Measurement Alternative is subsequently elected or no longer applies.
The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative for investments held at March 31, 2021 and December 31, 2020, respectively:
March 31, 2021December 31, 2020
(In millions)
Cumulative gross unrealized gains $389 $378 
Cumulative gross unrealized losses and impairment$(27)$(27)

Unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method

The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at March 31, 2021 and 2020, respectively:
 Three Months Ended March 31,
 20212020
(In millions)
Net unrealized losses$(149)$(132)