Supplemental Consolidated Financial Information

6 Months Ended

Jun. 30, 2022

Supplemental Consolidated Financial Information

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when we have satisfied our performance obligation and have the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions reasonable and supportable forecasts, and other factors that may affect our customers’ ability to pay. The allowance for doubtful accounts and authorized credits was $51 million and $74 million as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022, we reported an allowance for doubtful accounts of $27 million reflecting a decrease of $15 million, net of write-offs of $35 million for the six months ended June 30, 2022. As of December 31, 2021, we reported an allowance for doubtful accounts of $42 million.

Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized for the six month period ended June 30, 2022 that was included in the deferred revenue balance at the beginning of the period was $37 million. The amount of revenue recognized for the six month period ended June 30, 2021 that was included in the deferred revenue balance at the beginning of the period was $46 million.

Cash, cash equivalents and restricted cash


	June 30, 2022		December 31, 2021
	(In millions)
Cash and cash equivalents	$	1,742	$	1,379
Customer accounts	—		5
Restricted cash included in short-term investments	26		22
Restricted cash included in long-term investments	4		—
Cash, cash equivalents and restricted cash	$	1,772	$	1,406

Customer accounts and funds receivable


	June 30, 2022		December 31, 2021
	(In millions)
Cash and cash equivalents	$	—	$	5
Funds receivable	605		676
Customer accounts and funds receivable	$	605	$	681

Other current assets


	June 30, 2022		December 31, 2021
	(In millions)
Payment processor advances	$	405	$	453
Short-term derivative assets	204		86
Prepaid expenses	117		114
Income and other tax receivable	140		108
Accounts receivable, net	82		98
Other	289		248
Other current assets	$	1,237	$	1,107

Accrued expenses and other current liabilities


	June 30, 2022		December 31, 2021
	(In millions)
Compensation and related benefits	$	363	$	517
Sales and use tax and VAT accruals	316		396
Advertising accruals	236		172
Operating lease liabilities	144		150
Transaction loss reserve	117		116
Uninvoiced general and administrative expenses	104		95
Accrued interest expense	59		74
Deferred revenue	33		79
Other	363		328
Accrued expenses and other current liabilities	$	1,735	$	1,927

Gain (loss) on equity investments and warrant, net


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Change in fair value of equity investment in Adevinta	$	(829)	$	(422)	$	(2,472)	$	(422)
Change in fair value of equity investment in Gmarket	(77)		—		(259)		—
Unrealized change in fair value of equity investment in KakaoBank	(105)		—		(196)		—
Unrealized change in fair value of equity investment in Adyen	(38)		—		(118)		—
Realized change in fair value of shares sold in Adyen	(1)		—		(167)		—
Realized change in fair value of shares sold in KakaoBank	(67)		—		(75)		—
Change in fair value of warrant	(104)		108		(219)		72
Gain (loss) on other investments	—		41		(6)		41
Total gain (loss) on equity investments and warrant, net	$	(1,221)	$	(273)	$	(3,512)	$	(309)