Supplemental Financial Statement Information

3 Months Ended

Mar. 31, 2021

Additional Financial Information Disclosure [Abstract]

Supplemental Financial Statement Information

Cash Equivalents and Short-Term Investments

The following tables summarize the cost or amortized cost, gross unrealized gain, gross unrealized loss and fair value of the Company’s cash equivalents and short-term investments as of the dates indicated (in thousands):


	March 31, 2021
	Cost or Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
Unrestricted Balances(1)
Money market funds	$	88,630	$	—	$	—	$	88,630
Money market deposit accounts	180,041		—		—		180,041
Term deposits	640,000		—		—		640,000
Certificates of deposit	864,376		238		(16)		864,598
Commercial paper	312,869		18		(14)		312,873
Corporate bonds	107,642		—		(22)		107,620
Total unrestricted cash equivalents and short-term investments	2,193,558		256		(52)		2,193,762
Restricted Balances(2)
Money market funds	126,649		—		—		126,649
Money market deposit accounts	—		—		—		—
Term deposits	6,506		—		—		6,506
Certificates of deposit	606,178		164		(11)		606,331
Commercial paper	258,627		18		(8)		258,637
Corporate bonds	68,953		—		(12)		68,941
Total restricted cash equivalents and investments	1,066,913		182		(31)		1,067,064
Total unrestricted and restricted cash equivalents and investments	$	3,260,471	$	438	$	(83)	$	3,260,826

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(1)Excludes $44.2 million of cash, which is included within the $2.2 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets.

(2)Excludes $57.0 million of restricted cash, which is included within the $1.1 billion of restricted cash and cash equivalents and restricted short-term investments on the condensed consolidated balance sheets.


	December 31, 2020
	Cost or Amortized Cost		Unrealized				Estimated Fair Value
			Gains		Losses
Unrestricted Balances(1)
Money market deposit accounts	$	174,347	$	—	$	—	$	174,347
Term deposits	601,000		—		—		601,000
Certificates of deposit	677,602		178		(4)		677,776
Commercial paper	376,771		38		(20)		376,789
Corporate bonds	287,445		115		(41)		287,519
Total unrestricted cash equivalents and short-term investments	2,117,165		331		(65)		2,117,431
Restricted Balances(2)
Money market funds	24,757		—		—		24,757
Money market deposit accounts	162		—		—		162
Term deposits	6,506		—		—		6,506
Certificates of deposit	481,154		213		(3)		481,364
Commercial paper	469,193		57		(10)		469,240
Corporate bonds	184,560		67		(26)		184,601
Total restricted cash equivalents and investments	1,166,332		337		(39)		1,166,630
Total unrestricted and restricted cash equivalents and investments	$	3,283,497	$	668	$	(104)	$	3,284,061

_______________

(1)Excludes $133.6 million of cash, which is included within the $2.3 billion of cash and cash equivalents and short-term investments on the condensed consolidated balance sheets.

(2)Excludes $53.8 million of restricted cash, which is included within the $1.2 billion of restricted cash and cash equivalents and restricted short-term investments on the condensed consolidated balance sheets.

The Company’s short-term investments consist of available-for-sale debt securities and term deposits. The term deposits are at cost, which approximates fair value.

The weighted-average remaining maturity of the Company’s investment portfolio was less than one year as of the periods presented. No individual security incurred continuous unrealized losses for greater than 12 months.

The Company purchases investment grade marketable debt securities which are rated by nationally recognized credit rating organizations in accordance with its investment policy. This policy is designed to minimize the Company's exposure to credit losses. As of March 31, 2021, the credit-quality of the Company’s marketable available-for-sale debt securities had remained stable. The unrealized losses recognized on marketable available-for-sale debt securities as of March 31, 2021 was primarily related to the continued market volatility associated with COVID-19. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments and it is not expected that the investments would be settled at a price less than their amortized cost basis. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. The Company is not aware of any specific event or circumstance that would require the Company to change its assessment of credit losses for any marketable available-for-sale debt security as of March 31, 2021. These estimates may change, as new events occur and additional information is obtained, and will be recognized in the condensed consolidated financial statements as soon as they become known. No credit losses were recognized as of March 31, 2021 for the Company’s marketable and non-marketable debt securities.

The following table summarizes the Company’s available-for-sale debt securities in an unrealized loss position for which no allowance for credit losses was recorded, aggregated by major security type (in thousands):


	March 31, 2021
	Estimated Fair Value		Unrealized Losses
Certificates of deposit	$	215,173	$	(27)
Corporate bonds	175,659		(34)
Commercial paper	310,962		(22)
Total available-for-sale debt securities in an unrealized loss position	$	701,794	$	(83)

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following as of the dates indicated (in thousands):


	March 31, 2021		December 31, 2020
Insurance-related accruals	$	277,011	$	269,849
Legal accruals	250,502		226,408
Ride-related accruals	225,420		196,439
Long-term debt, current	37,567		35,760
Insurance claims payable and related fees	31,994		28,318
Other	215,875		197,234
Accrued and other current liabilities	$	1,038,369	$	954,008

Insurance Reserves

The following table provides a rollforward of the insurance reserve for the periods presented (in thousands):


	Three Months Ended March 31,
	2021		2020
Beginning balance	$	987,064	$	1,378,462
Losses paid	(121,161)		(205,946)
Change in estimates for prior periods	128,045		58,359
Transfer of certain legacy auto insurance liabilities	—		(407,885)
Reserves for current period	64,468		152,142
Ending balance	$	1,058,416	$	975,132

On March 31, 2020, the Company’s wholly-owned subsidiary, PVIC, entered into a Novation Agreement with Clarendon, and certain underwriting companies of Zurich. Pursuant to term of the Novation, on the effective date March 31, 2020, the obligations of PVIC as reinsurer to Zurich for the Legacy Auto Liability, were assigned to, assumed by, and novated to Clarendon, for cash consideration of $465.0 million. As a result of the Novation, the Company’s obligations related to the Legacy Auto Liability were fully extinguished and novated to Clarendon on March 31, 2020.

The Company paid the $465.0 million cash consideration to Clarendon on April 3, 2020. The Company derecognized $407.9 million of insurance reserves liabilities and recognized a loss of $64.7 million for the net cost of the Novation in the condensed consolidated statements of operations for the three months ended March 31, 2020, with $62.5 million in cost of revenue and $2.2 million in general and administrative expenses. In conjunction with the Novation, Clarendon and PVIC executed a Retrocession Agreement, pursuant to which PVIC will reinsure Clarendon’s losses related to the Legacy Auto Liability in excess of an aggregate limit of $816.0 million.

Other Income (Expense), Net

The following table sets forth the primary components of other income (expense), net as reported on the condensed consolidated statements of operations (in thousands):


	Three Months Ended March 31,
	2021		2020
Interest income(1)	$	2,879	$	21,327
Gain (loss) on sale of securities, net	701		(962)
Foreign currency exchange gains (losses), net	(588)		(514)
Other, net	613		(682)
Other income (expense), net	$	3,605	$	19,169

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(1)Interest income was reported as a separate line item on the condensed consolidated statement of operations in periods prior to the second quarter of 2020.