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Financial Instruments
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments
6. Financial Instruments

Cash and Cash Equivalents and Investments

The following tables summarize our cash, cash equivalents, and available-for-sale securities by significant investment category as of June 30, 2024 and December 31, 2023 (in millions):
June 30, 2024
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Estimated Fair ValueCash and
Cash
Equivalents		Current
Marketable
Securities		Non-
Current
Marketable
Securities
Cash and cash equivalents$2,478 $— $— $2,478 $2,478 $— $— 
Available-for-sale:
Certificates of deposit29 — — 29 — 29 — 
U.S. treasury bills588 — — 588 — 588 — 
U.S. treasury notes3,593 — (45)3,548 — 2,642 906 
Corporate debt securities4,023 1 (47)3,977 — 2,594 1,383 
Government debt securities196 — (2)194 — 157 37 
Total$10,907 $1 $(94)$10,814 $2,478 $6,010 $2,326 
December 31, 2023
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Estimated Fair ValueCash and
Cash
Equivalents		Current
Marketable
Securities		Non-
Current
Marketable
Securities
Cash and cash equivalents$2,907 $— $— $2,907 $2,907 $— $— 
Available-for-sale:
Certificates of deposit27 — — 27 — 27 — 
U.S. treasury bills807 — — 807 — 807 — 
U.S. treasury notes4,407 3 (67)4,343 — 2,664 1,679 
Corporate debt securities5,067 3 (81)4,989 — 2,082 2,907 
Government debt securities211 — (3)208 — 117 91 
Total$13,426 $6 $(151)$13,281 $2,907 $5,697 $4,677 

The amortized cost and estimated fair value of available-for-sale securities by contractual maturity as of June 30, 2024 and December 31, 2023 were as follows (in millions):
June 30, 2024
Amortized
Cost		Estimated
Fair Value
Due in one year or less$6,067 $6,010 
Due after one year through five years2,362 2,326 
Total$8,429 $8,336 

December 31, 2023
Amortized
Cost		Estimated
Fair Value
Due in one year or less$5,751 $5,697 
Due after one year through five years4,768 4,677 
Total$10,519 $10,374 

In accordance with our investment policy, we place investments in investment grade securities with high credit quality issuers, and generally limit the amount of credit exposure to any one issuer. We evaluate securities for impairment at the end of each reporting period. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation.
Factors considered include whether a decline in fair value below the amortized cost basis is due to credit-related factors or non-credit-related factors, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment to allow for an anticipated recovery in fair value. Any impairment that is not credit related is recognized in other comprehensive income (loss), net of applicable taxes. A credit-related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings. We did not recognize any impairment charges related to available-for-sale securities for the three and six months ended June 30, 2024 and 2023. We did not record any credit-related allowance for available-for-sale securities as of June 30, 2024 and December 31, 2023.

The following table summarizes the amount of gross unrealized losses and the estimated fair value for our available-for-sale securities in an unrealized loss position by the length of time the securities have been in an unrealized loss position as of June 30, 2024 and December 31, 2023 (in millions):
Less than 12 Months12 Months or MoreTotal
Gross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair Value
As of June 30, 2024:
U.S. treasury bills$— $1,282 $— $— $— $1,282 
U.S. treasury notes(5)1,175 (38)2,164 (43)3,339 
Corporate debt securities(4)945 (45)2,523 (49)3,468 
Government debt securities— 52 (2)116 (2)168 
Total$(9)$3,454 $(85)$4,803 $(94)$8,257 
As of December 31, 2023:
U.S. treasury bills$— $25 $— $— $— $25 
U.S. treasury notes(3)774 (64)2,983 (67)3,757 
Corporate debt securities(1)562 (79)3,518 (80)4,080 
Government debt securities— 8 (4)143 (4)151 
Total$(4)$1,369 $(147)$6,644 $(151)$8,013 

As of June 30, 2024 and December 31, 2023, we held 341 and 392 available-for-sale securities, respectively, out of our total investment portfolio that were in a continuous unrealized loss position. We neither intend to sell these investments, nor do we believe that we are more-likely-than-not to conclude we will have to sell them before recovery of their carrying values. We also believe that we will be able to collect both principal and interest amounts due to us at maturity.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used to value the assets and liabilities:

•Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
•Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; or
•Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (in millions):
Fair value at June 30, 2024Fair Value Measurement Using
Level 1Level 2
Assets:
Money market funds$647 $647 $— 
Certificates of deposit29 — 29 
U.S. treasury bills1,972 — 1,972 
U.S. treasury notes3,548 — 3,548 
Corporate debt securities4,286 — 4,286 
Government debt securities194 — 194 
Equity investments(1)
31 31 — 
Derivative instruments
2 — 2 
Total$10,709 $678 $10,031 
Liabilities:
Derivative instruments
$2 $— $2 

Fair value at December 31, 2023Fair Value Measurement Using
Level 1Level 2
Assets:
Money market funds$1,572 $1,572 $— 
Certificates of deposit27 — 27 
U.S. treasury bills1,246 — 1,246 
U.S. treasury notes4,343 — 4,343 
Corporate debt securities5,480 — 5,480 
Government debt securities208 — 208 
Equity Investments(1)
24 24 — 
Derivative instruments
4 — 4 
Total$12,904 $1,596 $11,308 
Liabilities:
Derivative instruments
$9 $— $9 
_______
(1)Investments in publicly traded equity securities with readily determinable fair values are recorded at quoted market prices for identical securities, with changes in fair value recorded in other income (expense), net, in our condensed consolidated statements of operations.
As of June 30, 2024 and December 31, 2023, we did not have non-financial assets or liabilities measured at fair value on a recurring basis and did not have any Level 3 financial assets or financial liabilities.

For the three and six months ended June 30, 2024, we recognized net losses of $22 million and $35 million, respectively, on equity investments from changes in fair value of the securities. For the three and six months ended June 30, 2023, we recognized net gains of $36 million and $17 million, respectively, on equity investments from changes in fair value of the securities.

In addition, as of December 31, 2023, we had $42 million in equity investments without readily determinable fair values, which were recorded within other non-current assets in our consolidated balance sheets and excluded from the fair value measurement tables above. These investments became publicly traded during the first quarter of 2024 and were recorded at their quoted market price in our condensed consolidated balance sheets as of June 30, 2024.