Investments

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Debt Securities

The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of the Company’s available-for-sale debt securities aggregated by investment category (in thousands):


	December 31, 2020								Classification as of December 31, 2020
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities		Other Assets, Noncurrent		Funds Receivable(2)
Certificates of deposit	$	421,272	$	—	$	—	$	421,272	$	278,281	$	142,991	$	—	$	—
Government bonds(1)	1,924,988		65		(1)		1,925,052		1,392,966		65,867		—		466,219
Commercial paper	1,021,150		—		—		1,021,150		779,527		241,623		—		—
Corporate debt securities	508,901		1,475		(1,635)		508,741		229,633		267,618		11,490		—
Mortgage-backed and asset-backed securities	36,553		913		(113)		37,353		—		37,353		—		—
Total	$	3,912,864	$	2,453	$	(1,749)	$	3,913,568	$	2,680,407	$	755,452	$	11,490	$	466,219

(1)Includes U.S. government and government agency debt securities

(2)Funds receivable and amounts held on behalf of customers


	December 31, 2021								Classification as of December 31, 2021
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities		Other Assets, Noncurrent		Funds Receivable(2)
Certificates of deposit	$	395,351	$	—	$	—	$	395,351	$	31,117	$	364,234	$	—	$	—
Government bonds(1)	850		13		—		863		—		863		—		—
Commercial paper	1,156,963		—		—		1,156,963		163,959		993,004		—		—
Corporate debt securities	917,718		220		(3,147)		914,791		41,439		862,901		10,451		—
Mortgage-backed and asset-backed securities	34,019		338		(321)		34,036		—		34,036		—		—
Total	$	2,504,901	$	571	$	(3,468)	$	2,502,004	$	236,515	$	2,255,038	$	10,451	$	—

(1)Includes U.S. government and government agency debt securities

(2)Funds receivable and amounts held on behalf of customers

As of December 31, 2020 and 2021, the Company did not have an allowance for credit losses related to its available-for-sale debt securities.

Before reclassifications of gains and losses from accumulated other comprehensive income (loss) on the consolidated balance sheets to other income (expense), net in the consolidated statements of operations, unrealized gains and losses and the associated tax amounts, for the years ended December 31, 2019, 2020, and 2021, were not material. Realized gains and losses reclassified from accumulated other comprehensive income (loss) to other income (expense), net were not material for the years ended December 31, 2019, 2020, and 2021.

Debt securities in an unrealized loss position had an estimated fair value of $139.7 million and an immaterial amount of unrealized losses as of December 31, 2019, an estimated fair value of $229.7 million and $1.7 million unrealized losses as of December 31, 2020, and an estimated fair value of $801.5 million and $3.5 million unrealized losses as of December 31, 2021. None of these securities were in a continuous unrealized loss position for more than twelve months as of December 31, 2019 and an immaterial amount of securities were in a continuous loss position for more than twelve months as of December 31, 2020 and 2021.

During the years ended December 31, 2019, 2020, and 2021, the Company did not consider any of its marketable debt securities to be other-than-temporarily impaired. During the year ended December 31, 2019, the Company recorded an impairment charge for an available-for-sale non-marketable debt investment totaling $18.0 million. During the years ended December 31, 2020 and 2021, the Company did not record any impairment charges for its available-for-sale non-marketable debt investments.

The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in thousands):


	December 31, 2021
		Amortized Cost		Estimated Fair Value
Due within one year		$	2,359,069	$	2,358,792
Due in one year to five years		130,273		127,861
Due within five to ten years		13,019		12,837
Due beyond ten years		2,540		2,514
Total		$	2,504,901	$	2,502,004

Equity Investments

Equity Investments with Readily Determinable Fair Values

As of December 31, 2020 and 2021, the Company had equity investments with readily determinable fair value totaling $155.2 million and zero, respectively, which consisted of mutual funds measured at fair value and classified within marketable securities on the consolidated balance sheet.

Equity Investments Without Readily Determinable Fair Values

The Company holds investments in privately-held companies in the form of equity securities without readily determinable fair values and in which the Company does not have a controlling interest or significant influence. These investments had net carrying value of $78.1 million and $75.0 million, as of December 31, 2020 and 2021, respectively, and are classified within other assets on the consolidated balance sheets. These investments were initially recorded using the measurement alternative at cost and are subsequently adjusted to fair value for impairments and price changes from observable transactions in the same or similar security from the same issuer.

The following table summarizes the total carrying value of equity investments without readily determinable fair values (in thousands):


	Year Ended December 31,
	2020		2021
Carrying value, beginning of period	$	131,210	$	78,074


Downward adjustments for observable price changes and impairment	(53,136)		(3,081)

Carrying value, end of period	$	78,074	$	74,993

As of December 31, 2020 and 2021, there were no upward adjustments for price changes to the Company’s equity investments without readily determinable fair values. The Company did not record any realized gains or losses for the Company’s equity investments without readily determinable fair value during the years ended December 31, 2019, 2020, and 2021, respectively. The Company did not record any impairment charges during the year ended December 31, 2019, and recorded impairment charges of $53.1 million and $3.1 million, for the years ended December 31, 2020 and 2021, respectively.

The following table summarizes the cumulative impairment charges of equity investments without readily determinable fair values (in thousands):


	As of December 31,
	2020		2021
Cumulative downward adjustments for observable price changes and impairment	$	53,136	$	56,217

Gains and Losses on Equity Investments

Net unrealized gains (losses) on marketable equity investments totaled $13.2 million and $(21.7) million for the years ended December 31, 2019 and 2020, respectively. During the year ended December 31, 2021, the marketable equity investments were sold, and the Company realized a net loss of $13.4 million. The realized and unrealized gains and losses on marketable equity investments were recorded in other income (expense), net on the consolidated statements of operations.