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Supplemental Financial Statement Information | 12 Months Ended
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Dec. 31, 2022
Additional Financial Information Disclosure [Abstract] |
Supplemental Financial Statement Information | 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):
| December 31, 2022
| Cost or Amortized Cost |  | Unrealized |  | Estimated Fair Value
| Gains |  | Losses |
Unrestricted Balances(1) |  |  |  |  |  |  |
Money market funds | $ | 3,276 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,276 |
Money market deposit accounts | 126,994 |  |  | — |  |  | — |  |  | 126,994 |
Term deposits | 5,000 |  |  | — |  |  | — |  |  | 5,000 |
Certificates of deposit | 502,374 |  |  | 295 |  |  | (510) |  |  | 502,159 |
Commercial paper | 964,410 |  |  | 403 |  |  | (1,663) |  |  | 963,150 |
Corporate bonds | 61,605 |  |  | — |  |  | (104) |  |  | 61,501 |
U.S. government securities | 7,059 |  |  | 1 |  |  | — |  |  | 7,060 |
Total unrestricted cash equivalents and short-term investments | 1,670,718 |  |  | 699 |  |  | (2,277) |  |  | 1,669,140 |
Restricted Balances(2) |  |  |  |  |  |  |
Money market funds | 93,362 |  |  | — |  |  | — |  |  | 93,362 |
Term deposits | 3,539 |  |  | — |  |  | — |  |  | 3,539 |
Certificates of deposit | 355,241 |  |  | 174 |  |  | (437) |  |  | 354,978 |
Commercial paper | 596,213 |  |  | 243 |  |  | (865) |  |  | 595,591 |
Corporate bonds | 14,933 |  |  | — |  |  | (17) |  |  | 14,916 |
U.S. government securities | 74,699 |  |  | 2 |  |  | (167) |  |  | 74,534 |
Total restricted cash equivalents and investments | 1,137,987 |  |  | 419 |  |  | (1,486) |  |  | 1,136,920 |
Total unrestricted and restricted cash equivalents and investments | $ | 2,808,705 |  |  | $ | 1,118 |  |  | $ | (3,763) |  |  | $ | 2,806,060 |
_______________ (1)Excludes $126.5 million of cash and $1.1 million of marketable equity securities, which are included within the $1.8 billion of cash and cash equivalents and short-term investments on the consolidated balance sheets. (2)Excludes $1.3 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 consolidated balance sheets.
| December 31, 2021
| Cost or Amortized Cost |  | Unrealized |  | Estimated Fair Value
| Gains |  | Losses |
Unrestricted Balances(1) |  |  |  |  |  |  |
Money market funds | $ | 22,250 |  |  | $ | — |  |  | $ | — |  |  | $ | 22,250 |
Money market deposit accounts | 330,252 |  |  | — |  |  | — |  |  | 330,252 |
Term deposits | 385,000 |  |  | — |  |  | — |  |  | 385,000 |
Certificates of deposit | 505,562 |  |  | 25 |  |  | (149) |  |  | 505,438 |
Commercial paper | 806,446 |  |  | 132 |  |  | (190) |  |  | 806,388 |
Corporate bonds | 99,779 |  |  | 4 |  |  | (78) |  |  | 99,705 |
Total unrestricted cash equivalents and short-term investments | 2,149,289 |  |  | 161 |  |  | (417) |  |  | 2,149,033 |
Restricted Balances(2) |  |  |  |  |  |  |
Money market funds | 20,161 |  |  | — |  |  | — |  |  | 20,161 |
Term deposits | 5,046 |  |  | — |  |  | — |  |  | 5,046 |
Certificates of deposit | 421,243 |  |  | 35 |  |  | (134) |  |  | 421,144 |
Commercial paper | 523,616 |  |  | 43 |  |  | (169) |  |  | 523,490 |
Corporate bonds | 63,506 |  |  | — |  |  | (48) |  |  | 63,458 |
U.S. government securities | 31,745 |  |  | — |  |  | (28) |  |  | 31,717 |
Total restricted cash equivalents and investments | 1,065,317 |  |  | 78 |  |  | (379) |  |  | 1,065,016 |
Total unrestricted and restricted cash equivalents and investments | $ | 3,214,606 |  |  | $ | 239 |  |  | $ | (796) |  |  | $ | 3,214,049 |
_______________ (1)Excludes $104.8 million of cash, which is included within the $2.3 billion of cash and cash equivalents and short-term investments on the consolidated balance sheets. (2)Excludes $53.7 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 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 statistical credit rating organizations in accordance with its investment policy. This policy is designed to minimize the Company's exposure to credit losses. As of December 31, 2022, 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 December 31, 2022 was primarily related to the continued market volatility associated with market expectations of an aggressive pace of interest rate increases by the Federal Reserve. 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 quarterly assessment of credit losses for any marketable available-for-sale debt security as of December 31, 2022. These estimates may change, as new events occur and additional information is obtained, and will be recognized on the consolidated financial statements as soon as they become known. No credit losses were recognized as of December 31, 2022 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):
| December 31, 2022
| Estimated Fair Value |  | Unrealized Losses
Certificates of deposit | $ | 188,209 |  |  | $ | (947) |
Corporate bonds | 76,417 |  |  | (121) |
Commercial paper | 718,771 |  |  | (2,528) |
U.S. government securities | 62,801 |  |  | (167) |
Total available-for-sale debt securities in an unrealized loss position | $ | 1,046,198 |  |  | $ | (3,763) |
Property and Equipment, net Property and equipment, net consisted of the following as of the dates indicated (in thousands):
| December 31,
| 2022 |  | 2021
Bike fleet | $ | 179,330 |  |  | $ | 138,216 |
Leasehold improvements | 91,334 |  |  | 100,252 |
Owned vehicles | 143,391 |  |  | 150,443 |
Finance lease right-of-use assets | 32,887 |  |  | 26,802 |
Computer equipment and software | 36,271 |  |  | 19,103 |
Furniture and fixtures | 5,602 |  |  | 5,110 |
Construction in progress | 48,523 |  |  | 25,270 |
| 537,338 |  |  | 465,196 |
Less: Accumulated depreciation | (223,936) |  |  | (167,001) |
Property and equipment, net | $ | 313,402 |  |  | $ | 298,195 |
Depreciation and amortization expense related to property and equipment was $127.8 million, $115.3 million, and $121.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following as of the dates indicated (in thousands):
| December 31,
| 2022 |  | 2021
Insurance-related accruals | $ | 566,831 |  |  | $ | 336,340 |
Legal accruals | 458,209 |  |  | 349,518 |
Ride-related accruals | 181,138 |  |  | 196,716 |
Long-term debt, current | 36,287 |  |  | 56,264 |
Insurance claims payable and related fees | 53,280 |  |  | 33,696 |
Deferred gain related to the Reinsurance Transaction (1) | 2,357 |  |  | 52,785 |
Other | 263,507 |  |  | 239,107 |
Accrued and other current liabilities | $ | 1,561,609 |  |  | $ | 1,264,426 |
_______________ (1)Refer to Note 2 “Summary of Significant Accounting Policies” above and the rest of this Note 6 “Supplemental Financial Information - Insurance Reserves” below for more information on this deferred gain. Insurance Reserves The following table provides a rollforward of the insurance reserve for the periods presented (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Balance at beginning of period | $ | 1,068,628 |  |  | $ | 987,064 |  |  | $ | 1,378,462 |
Additions 1 | 1,146,482 |  |  | 772,321 |  |  | 569,180 |
Deductions 2 | (797,760) |  |  | (690,757) |  |  | (960,578) |
Balance at end of period | $ | 1,417,350 |  |  | $ | 1,068,628 |  |  | $ | 987,064 |
_______________ (1)Additions to insurance reserves include $895.0 million, $527.1 million and $569.2 million for the years ended December 31, 2022, 2021 and 2020, respectively, for changes in estimates resulting from new developments in prior period claims. Additions also include adjustments related to the Commutation Transaction of $247.4 million for the year ended December 31, 2022. See below for more details of the "Commutation of the Reinsurance Agreement". Additions include $4.0 million and $245.2 million of reinsurance recoverable for the years ended December 31, 2022 and 2021, respectively. There was no such recoverable for the year ended December 31, 2020. (2)Deductions include losses paid of $552.6 million, $439.4 million and $552.7 million for the years ended December 31, 2022, 2021 and 2020, respectively, in addition to a transfer of certain legacy auto insurance liabilities of $407.9 million for the year ended December 31, 2020. Deductions include reinsurance recoverable at the beginning of the period of $245.2 million and $251.3 million for the years ended December 31, 2022 and 2021, respectively. There was no such recoverable at the beginning of the period for the year ended December 31, 2020. Transfer of Certain Legacy Auto Liability Insurance 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 the terms 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 on the consolidated statements of operations for the year ended December 31, 2021, 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. Reinsurance of Certain Legacy Auto Liability Insurance On April 22, 2021, the Company’s wholly-owned subsidiary, Pacific Valley Insurance Company, Inc. (“PVIC”), entered into a Quota Share Reinsurance Agreement (the “Reinsurance Agreement”) with DARAG Bermuda LTD (“DARAG”), under which DARAG reinsured a legacy portfolio of auto insurance policies, based on reserves in place as of March 31, 2021, for $183.2 million of coverage above the liabilities recorded as of that date. Under the terms of the Reinsurance Agreement, PVIC ceded to DARAG approximately $251.3 million of certain legacy insurance liabilities for policies underwritten during the period of October 1, 2018 to October 1, 2020, with an aggregate limit of $434.5 million, for a premium of $271.5 million (“the Reinsurance Transaction”). The Reinsurance Agreement was on a funds withheld basis, meaning that funds are withheld by PVIC from the insurance premium owed to DARAG in order to pay future reinsurance claims on DARAG’s behalf. Upon consummation of the Reinsurance Transaction, a reinsurance recoverable of $251.3 million was established, and since a contractual right of offset exists, the reinsurance recoverable was netted against the funds withheld liability balance of $271.5 million for a $20.2 million net funds withheld liability balance included in accrued and other current liabilities on the consolidated balance sheet. In addition to the initial funds withheld balance of $271.5 million, additional coverage of certain legacy insurance liabilities was collateralized by a trust account established by DARAG for the benefit of PVIC, which was $75.0 million upon consummation. At the inception of the Reinsurance Agreement, a loss of approximately $20.4 million for the total cost of the Reinsurance Transaction was recognized on the consolidated statement of operations for the year ended December 31, 2021, with $20.2 million in cost of revenue and $0.2 million in general and administrative expenses. The Reinsurance Transaction does not discharge PVIC of its obligations to the policyholder. Management evaluated reinsurance counterparty credit risk and does not consider it to be material. Commutation of the Reinsurance Agreement On June 21, 2022, PVIC and DARAG entered into a Commutation Agreement, which effectively commuted and settled the previous Reinsurance Agreement. Under the terms of the Commutation Agreement, DARAG released $89.3 million of assets held in trust to PVIC and the remaining balance of the funds withheld liability of $90.3 million from the Reinsurance Transaction for a total consideration of $178.6 million. In addition, the Commutation Agreement caused a DARAG affiliate, DNA Insurance Company (“DNA”), to simultaneously enter into an Adverse Development Cover Reinsurance Agreement (“ADC”) with PVIC (the Commutation Agreement and the ADC will collectively be referred to as the “Commutation Transaction”). Under the terms of the ADC, DNA agreed to reinsure up to $20 million of the legacy insurance liabilities contemplated in the Reinsurance Agreement for a premium of $1.0 million, which will be retained by PVIC on a funds withheld basis. DNA also has the option to commute this agreement for $5.0 million prior to November 1, 2023, which may be offset by any premiums retained as funds withheld. As a result of the Commutation Transaction, the Company noted the following impacts on its financial statements: •The Company recognized a $36.8 million gain in cost of revenue in the three months ended June 30, 2022, including amortization of a portion of the previously recognized deferred gain. •The Company reduced its reinsurance recoverable by $247.4 million. As of December 31, 2022, the balance of reinsurance recoverables was $4.0 million, reflecting the ultimate amount it anticipates receiving from DNA as a result of this transaction. The reinsurance recoverable from DNA, net of the funds withheld liability, is included in prepaid expenses and other current assets on the consolidated balance sheets. •The Company reduced the funds withheld liability balance by $90.3 million. As of December 31, 2022 the balance of the funds withheld liability was $1.0 million, reflecting the premium retained by PVIC for the Adverse Development Cover. •The Company amortized deferred gains related to losses ceded under the Reinsurance Agreement by $105.7 million. As of December 31, 2022, the Company had $2.4 million of deferred gains related to losses ceded under the Reinsurance Agreement remaining following the Commutation Transaction, which are included within accrued and other current liabilities on the consolidated balance sheets. On February 8, 2023, PVIC and DNA entered into a Commutation and Mutual Release Agreement, whereby DNA agreed to exercise its option to fully settle and commute the ADC. DNA commuted the ADC for $5.0 million consisting of a $4.0 million payment made to PVIC and the release of $1.0 million premium which was retained by PVIC as a funds withheld. As a result, PVIC recognized a gain of $3.4 million, comprised of $2.4 million amortization of the remaining deferred gain and $1.0 million related to the release of the funds withheld. PVIC also reduced its reinsurance recoverable by $4.0 million related to the payment received. The Company recorded these amounts during the first quarter of 2023. Other Income (Expense), Net The following table sets forth the primary components of other income (expense), net as reported on the consolidated statements of operations (in thousands):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Interest income | $ | 47,142 |  |  | $ | 9,074 |  |  | $ | 43,654 |
Gain (loss) on sale of securities, net | (287) |  |  | 687 |  |  | (868) |
Foreign currency exchange gains (losses), net | (4,387) |  |  | 788 |  |  | 1,818 |
Sublease income | 11,591 |  |  | 6,624 |  |  | — |
Gain from transaction with Woven Planet | — |  |  | 119,284 |  |  | — |
Impairment charges(1) | (135,714) |  |  | — |  |  | — |
Other, net | (18,333) |  |  | (524) |  |  | (935) |
Other income (expense), net | $ | (99,988) |  |  | $ | 135,933 |  |  | $ | 43,669 |
_______________ (1)In the third quarter of 2022, the Company impaired the entire amount of a non-marketable equity investment in addition to other assets with the investee. This impairment was triggered due to the announced winding down of the equity investee. Refer to Note 7 “Fair Value Measurements” for additional details.

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