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Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended
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Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Schedule of fair value of assets and liabilities measured on a recurring basis | The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated (in millions):
| June 30, 2022 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,742 |  |  | $ | 1,742 |  |  | $ | — |  |  | $ | — |
Short-term investments: |  |  |  |  |  |  |
Restricted cash | 26 |  |  | 26 |  |  | — |  |  | — |
Corporate debt securities | 1,195 |  |  | — |  |  | 1,195 |  |  | — |
Government and agency securities | 40 |  |  | — |  |  | 40 |  |  | — |
Equity investments with readily determinable fair values | 222 |  |  | 222 |  |  | — |  |  | — |
Total short-term investments | 1,483 |  |  | 248 |  |  | 1,235 |  |  | — |
Equity investment in Adevinta | 2,919 |  |  | 2,919 |  |  | — |  |  | — |
Derivatives | 454 |  |  | — |  |  | 229 |  |  | 225 |
Long-term investments: |  |  |  |  |  |  |
Restricted cash | 4 |  |  | 4 |  |  | — |  |  | — |
Corporate debt securities | 767 |  |  | — |  |  | 767 |  |  | — |
Government and agency securities | 762 |  |  | — |  |  | 762 |  |  | — |
Equity investment under the fair value option | 466 |  |  | — |  |  | — |  |  | 466 |
Total long-term investments | 1,999 |  |  | 4 |  |  | 1,529 |  |  | 466 |
Total financial assets | $ | 8,597 |  |  | $ | 4,913 |  |  | $ | 2,993 |  |  | $ | 691 |
Liabilities: |  |  |  |  |  |  |
Derivatives | $ | 36 |  |  | $ | — |  |  | $ | 36 |  |  | $ | — |
| December 31, 2021 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,379 |  |  | $ | 1,379 |  |  | $ | — |  |  | $ | — |
Short-term investments: |  |  |  |  |  |  |
Restricted cash | 22 |  |  | 22 |  |  | — |  |  | — |
Corporate debt securities | 4,152 |  |  | — |  |  | 4,152 |  |  | — |
Government and agency securities | 25 |  |  | — |  |  | 25 |  |  | — |
Equity investments with readily determinable fair values | 1,745 |  |  | 1,745 |  |  | — |  |  | — |
Total short-term investments | 5,944 |  |  | 1,767 |  |  | 4,177 |  |  | — |
Equity investment in Adevinta | 5,391 |  |  | 5,391 |  |  | — |  |  | — |
Derivatives | 553 |  |  | — |  |  | 109 |  |  | 444 |
Long-term investments: |  |  |  |  |  |  |
Corporate debt securities | 950 |  |  | — |  |  | 950 |  |  | — |
Government and agency securities | 777 |  |  | — |  |  | 777 |  |  | — |
Equity investment under the fair value option | 725 |  |  | — |  |  | — |  |  | 725 |
Total long-term investments | 2,452 |  |  | — |  |  | 1,727 |  |  | 725 |
Total financial assets | $ | 15,719 |  |  | $ | 8,537 |  |  | $ | 6,013 |  |  | $ | 1,169 |
Liabilities: |  |  |  |  |  |  |
Derivatives | $ | 17 |  |  | $ | — |  |  | $ | 17 |  |  | $ | — |
Schedule of assets measured using significant unobservable inputs | The following table presents a reconciliation of the opening to closing balance of assets measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions):
| June 30, 2022 |  | December 31, 2021
Opening balance at beginning of period | $ | 444 |  |  | $ | 1,051 |
Exercise of options under warrant | — |  |  | (961) |
Change in fair value | (219) |  |  | 354 |
Closing balance at end of period | $ | 225 |  |  | $ | 444 |
The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the warrant as of June 30, 2022 (in millions):
|  | Fair value |  | Valuation technique |  | Unobservable Input(1) |  | Range (weighted average)
Warrant |  | $ | 225 |  |  | Black-Scholes and Monte Carlo |  | Probability of vesting |  | 0.0% - 55.0% (49%)
|  |  |  |  |  | Equity volatility |  | (46%)
(1) Probability of vesting was weighted by the unadjusted value of the tranches. For volatility, the average represents the arithmetic average of the points within the range and is not weighted by the relative fair value or notional amount. The following table presents a reconciliation of the opening to closing balance of the equity investment in Gmarket measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions):
| June 30, 2022 |  | December 31, 2021 (1)
Opening balance at beginning of period | $ | 725 |  |  | $ | — |
Recognition of equity investment | — |  |  | 728 |
Change in fair value | (259) |  |  | (3) |
Closing balance at end of period | $ | 466 |  |  | $ | 725 |
(1) There were no indicators of a potential material change in fair value of the investment between the date of recognition and December 31, 2021. The fair value of the investment was $725 million as of December 31, 2021 due to foreign currency adjustments. The following table presents quantitative information about Level 3 significant unobservable inputs used in the fair value measurement of the equity investment in Gmarket as of June 30, 2022 that may have a significant impact on the overall valuation (in millions):
|  | Fair value |  | Valuation technique |  | Unobservable Input |  | Range
Equity investment in Gmarket |  | $ | 466 |  |  | Market multiples |  | Revenue multiple — GPC method (1) |  | 1.1x — 2.0x
|  |  |  |  |  | Revenue multiple — GMAC method (1) |  | 1.4x — 4.1x
(1) The primary unobservable inputs used in the fair value measurement of our equity investment in Gmarket under the fair value option, when using the Guideline Public Company (GPC) method and the Guideline Merged and Acquired Company (GMAC) method under the market multiple approach, are the respective revenue multiples. Significant increases (decreases) in the revenue multiples in isolation would result in significantly higher (lower) fair value measurement. The market multiples are derived from respective groups of guideline public companies and guideline merged and acquired companies.

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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