Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36859 | |
Entity Registrant Name | PayPal Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-2989869 | |
Entity Address, Address Line One | 2211 North First Street | |
Entity Address, City or Town | San Jose, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95131 | |
City Area Code | 408 | |
Local Phone Number | 967-1000 | |
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Entity Trading Symbol | PYPL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 1,158,039,929 | |
Entity Central Index Key | 0001633917 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 4,861 | $ 5,197 |
Short-term investments | 3,104 | 4,303 |
Accounts receivable, net | 850 | 800 |
Loans and interest receivable, net of allowances of $476 and $491 as of March 31, 2022 and December 31, 2021, respectively | 5,223 | 4,846 |
Funds receivable and customer accounts | 37,046 | 36,141 |
Prepaid expenses and other current assets | 1,298 | 1,287 |
Total current assets | 52,382 | 52,574 |
Long-term investments | 7,145 | 6,797 |
Property and equipment, net | 1,861 | 1,909 |
Goodwill | 11,370 | 11,454 |
Intangible assets, net | 1,185 | 1,332 |
Other assets | 1,862 | 1,737 |
Total assets | 75,805 | 75,803 |
Current liabilities: | ||
Accounts payable | 140 | 197 |
Funds payable and amounts due to customers | 39,746 | 38,841 |
Accrued expenses and other current liabilities | 3,828 | 3,755 |
Income taxes payable | 253 | 236 |
Total current liabilities | 43,967 | 43,029 |
Deferred tax liability and other long-term liabilities | 3,013 | 2,998 |
Long-term debt | 8,222 | 8,049 |
Total liabilities | 55,202 | 54,076 |
Commitments and contingencies | ||
Equity: | ||
Common stock, $0.0001 par value; 4,000 shares authorized; 1,161 and 1,168 shares outstanding as of March 31, 2022 and December 31, 2021, respectively | 0 | 0 |
Preferred stock, $0.0001 par value; 100 shares authorized, unissued | 0 | 0 |
Treasury stock at cost, 143 and 132 shares as of March 31, 2022 and December 31, 2021, respectively | (13,380) | (11,880) |
Additional paid-in-capital | 17,383 | 17,208 |
Retained earnings | 17,044 | 16,535 |
Accumulated other comprehensive income (loss) | (444) | (136) |
Total PayPal stockholders’ equity | 20,603 | 21,727 |
Total liabilities and equity | $ 75,805 | $ 75,803 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Loans and interest receivable, allowances | $ 476 | $ 491 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 4,000,000,000 | 4,000,000,000 |
Common stock, shares outstanding (in shares) | 1,161,000,000 | 1,168,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Treasury stock, shares (in shares) | 143,000,000 | 132,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net revenues | $ 6,483 | $ 6,033 |
Operating expenses: | ||
Transaction expense | 2,817 | 2,275 |
Transaction and credit losses | 369 | 273 |
Customer support and operations | 534 | 518 |
Sales and marketing | 594 | 602 |
Technology and development | 815 | 741 |
General and administrative | 607 | 524 |
Restructuring and other charges | 36 | 58 |
Total operating expenses | 5,772 | 4,991 |
Operating income | 711 | 1,042 |
Other income (expense), net | (82) | (170) |
Income before income taxes | 629 | 872 |
Income tax expense (benefit) | 120 | (225) |
Net income | $ 509 | $ 1,097 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.44 | $ 0.94 |
Diluted (in dollars per share) | $ 0.43 | $ 0.92 |
Weighted average shares: | ||
Basic (in shares) | 1,163 | 1,173 |
Diluted (in shares) | 1,172 | 1,190 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 509 | $ 1,097 |
Other comprehensive income (loss), net of reclassification adjustments: | ||
Foreign currency translation adjustments (“CTA”) | (95) | (53) |
Net investment hedges CTA gains, net | 21 | 0 |
Tax expense on net investment hedges CTA gains, net | (5) | 0 |
Unrealized (losses) gains on cash flow hedges, net | (3) | 198 |
Tax benefit (expense) on unrealized (losses) gains on cash flow hedges, net | 0 | (3) |
Unrealized losses on investments, net | (293) | (15) |
Tax benefit on unrealized losses on investments, net | 67 | 4 |
Other comprehensive income (loss), net of tax | (308) | 131 |
Comprehensive income | $ 201 | $ 1,228 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock Shares | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 1,172 | ||||||
Beginning balance at Dec. 31, 2020 | $ 20,063 | $ (8,507) | $ 16,644 | $ (484) | $ 12,366 | $ 44 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,097 | 1,097 | |||||
Foreign CTA | (53) | (53) | |||||
Net investment hedges CTA gains, net | 0 | ||||||
Tax expense on net investment hedges CTA gains, net | 0 | ||||||
Unrealized losses on cash flow hedges, net | 198 | 198 | |||||
Tax benefit (expense) on unrealized (losses) gains on cash flow hedges, net | (3) | (3) | |||||
Unrealized gains (losses) on investments, net | (15) | (15) | |||||
Tax benefit on unrealized losses on investments, net | 4 | 4 | |||||
Common stock and stock-based awards issued and assumed, net of shares withheld for employee taxes (in shares) | 7 | ||||||
Common stock and stock-based awards issued and assumed, net of shares withheld for employee taxes | (870) | (870) | |||||
Common stock repurchased (in shares) | (5) | ||||||
Common stock repurchased | (1,323) | (1,323) | |||||
Stock-based compensation | 387 | 387 | |||||
Change in noncontrolling interest | (44) | (44) | |||||
Ending balance (in shares) at Mar. 31, 2021 | 1,174 | ||||||
Ending balance at Mar. 31, 2021 | $ 19,441 | (9,830) | 16,161 | (353) | 13,463 | $ 0 | |
Beginning balance (in shares) at Dec. 31, 2021 | 1,168 | 1,168 | |||||
Beginning balance at Dec. 31, 2021 | $ 21,727 | (11,880) | 17,208 | (136) | 16,535 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 509 | 509 | |||||
Foreign CTA | (95) | (95) | |||||
Net investment hedges CTA gains, net | 21 | 21 | |||||
Tax expense on net investment hedges CTA gains, net | (5) | (5) | |||||
Unrealized losses on cash flow hedges, net | (3) | (3) | |||||
Tax benefit (expense) on unrealized (losses) gains on cash flow hedges, net | 0 | ||||||
Unrealized gains (losses) on investments, net | (293) | (293) | |||||
Tax benefit on unrealized losses on investments, net | 67 | 67 | |||||
Common stock and stock-based awards issued and assumed, net of shares withheld for employee taxes (in shares) | 4 | ||||||
Common stock and stock-based awards issued and assumed, net of shares withheld for employee taxes | $ (273) | (273) | |||||
Common stock repurchased (in shares) | (11) | (11) | |||||
Common stock repurchased | $ (1,500) | (1,500) | |||||
Stock-based compensation | 447 | 447 | |||||
Other | $ 1 | 1 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 1,161 | 1,161 | |||||
Ending balance at Mar. 31, 2022 | $ 20,603 | $ (13,380) | $ 17,383 | $ (444) | $ 17,044 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 509 | $ 1,097 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Transaction and credit losses | 369 | 273 |
Depreciation and amortization | 328 | 300 |
Stock-based compensation | 429 | 368 |
Deferred income taxes | (16) | 0 |
Net (gains) losses on strategic investments | (14) | 120 |
Other | 74 | 51 |
Changes in assets and liabilities: | ||
Accounts receivable | (50) | (97) |
Accounts payable | (29) | (34) |
Income taxes payable | 17 | (33) |
Other assets and liabilities | (375) | (287) |
Net cash provided by operating activities | 1,242 | 1,758 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (191) | (221) |
Proceeds from sales of property and equipment | 3 | 0 |
Purchases and originations of loans receivable | (5,525) | (2,133) |
Principal repayment of loans receivable | 5,054 | 2,208 |
Purchases of investments | (8,604) | (10,975) |
Maturities and sales of investments | 8,751 | 9,718 |
Funds receivable | (239) | (180) |
Net cash used in investing activities | (751) | (1,583) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 3 | 2 |
Purchases of treasury stock | (1,500) | (1,323) |
Tax withholdings related to net share settlements of equity awards | (244) | (863) |
Borrowings under financing arrangements | 286 | 0 |
Repayments under financing arrangements | (104) | 0 |
Funds payable and amounts due to customers | 863 | 3,011 |
Other financing activities | 1 | 0 |
Net cash (used in) provided by financing activities | (695) | 827 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 18 | (42) |
Net change in cash, cash equivalents, and restricted cash | (186) | 960 |
Cash, cash equivalents, and restricted cash at beginning of period | 18,029 | 18,040 |
Cash, cash equivalents, and restricted cash at end of period | 17,843 | 19,000 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 12 | 12 |
Cash paid for income taxes, net | 47 | 87 |
The table below reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows: | ||
Cash and cash equivalents | 4,861 | 5,717 |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | 17,843 | 19,000 |
Short-term investments | ||
The table below reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows: | ||
Restricted cash | 27 | 26 |
Funds receivable and customer accounts | ||
The table below reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows: | ||
Restricted cash | $ 12,955 | $ 13,257 |
OVERVIEW AND SUMMARY OF SIGNIFI
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OVERVIEW AND ORGANIZATION PayPal Holdings, Inc. (“PayPal,” the “Company,” “we,” “us,” or “our”) was incorporated in Delaware in January 2015 and is a leading technology platform that enables digital payments and simplifies commerce experiences on behalf of merchants and consumers worldwide. PayPal is committed to democratizing financial services to help improve the financial health of individuals and to increase economic opportunity for entrepreneurs and businesses of all sizes around the world. Our goal is to enable our merchants and consumers to manage and move their money anywhere in the world in the markets we serve, anytime, on any platform, and using any device when sending payments or getting paid, including person-to-person payments. We operate globally and in a rapidly evolving regulatory environment characterized by a heightened focus by regulators globally on all aspects of the payments industry, including countering terrorist financing, anti-money laundering, privacy, cybersecurity, and consumer protection. The laws and regulations applicable to us, including those enacted prior to the advent of digital payments, are continuing to evolve through legislative and regulatory action and judicial interpretation. New or changing laws and regulations, including the changes to their interpretation and implementation, as well as increased penalties and enforcement actions related to non-compliance, could have a material adverse impact on our business, results of operations, and financial condition. We monitor these areas closely and are focused on designing compliant solutions for our customers. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principles of consolidation The accompanying condensed consolidated financial statements include the financial statements of PayPal and our wholly- and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Investments in entities where we have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investee’s results of operations is included in other income (expense), net on our condensed consolidated statements of income. Investments in entities where we do not have the ability to exercise significant influence over the investee are accounted for at fair value or cost minus impairment, if any, adjusted for changes resulting from observable price changes, which are included in other income (expense), net on our condensed consolidated statements of income. Our investment balance is included in long-term investments on our condensed consolidated balance sheets. We determine at the inception of each investment, and re-evaluate if certain events occur, whether an entity in which we have made an investment is considered a variable interest entity (“VIE”). If we determine an investment is in a VIE, we then assess if we are the primary beneficiary, which would require consolidation. As of December 31, 2021, we had consolidated two VIEs that provided financing for and held loans receivable of Paidy, Inc. (“Paidy”). We were the primary beneficiary of the VIEs as we performed the servicing and collection for the loans receivable which were the activities that most significantly impacted the VIE’s economic performance and we had the obligation to absorb the losses and/or the right to receive the benefits of the VIE that could potentially be significant to these entities. The financial results of our consolidated VIEs were included in the condensed consolidated financial statements. As of December 31, 2021, the carrying value of the assets and liabilities of our consolidated VIEs was included as short-term investments of $87 million, loans and interest receivable, net of $21 million, and long-term debt of $98 million. Cash of $87 million, included in short-term investments, was restricted to settle the debt obligations. As of March 31, 2022, we have terminated Paidy’s legacy debt structure with a new credit agreement executed in February 2022. As a result, we no longer have any consolidated VIEs as of March 31, 2022. See “Note 12—Debt” for additional information. As of March 31, 2022 and December 31, 2021, the carrying value of our investments that are in nonconsolidated VIEs was $86 million and $74 million, respectively, and is included as non-marketable equity securities applying the equity method of accounting in long-term investments on our condensed consolidated balance sheets. Our maximum exposure to loss related to our nonconsolidated VIEs, which represents funded commitments and any future funding commitments, was $230 million and $205 million as of March 31, 2022 and December 31, 2021, respectively. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”) filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 3, 2022. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the condensed consolidated financial statements for all interim periods presented. Certain amounts for prior periods have been reclassified to conform to the financial statement presentation as of and for the three months ended March 31, 2022. Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and credit losses, income taxes, loss contingencies, revenue recognition, and the valuation of goodwill and intangible assets. We base our estimates on historical experience and various other assumptions which we believe to be reasonable under the circumstances. These estimates may change as new events occur, and as additional information surrounding the continued impact of the novel coronavirus (“COVID-19”) pandemic becomes available. Actual results could differ from these estimates and any such differences may be material to our financial statements. Recent accounting guidance In March 2022, the SEC released Staff Accounting Bulletin No. 121 (“SAB 121”), which provides interpretive guidance for an entity to consider when it operates a platform that allows its users to transact in crypto-assets and that engages in activities in which it has obligations to safeguard customers’ crypto-assets, whether directly or through an agent or another third party acting on its behalf. The interpretive guidance requires a reporting entity to record a liability to reflect its obligation to safeguard the crypto-assets held for its platform users with a corresponding asset, regardless of its assessment as to who controls the crypto-asset. The crypto-asset safeguarding liability and related asset will be measured at the fair value of the crypto-assets held for the platform users with the measurement of the safeguarding asset taking into account any potential loss events. SAB 121 also requires disclosures related to the entity’s safeguarding obligations for crypto-assets held for its platform users. SEC registrants are expected to comply with SAB 121 in the first interim or annual financial statements ending after June 15, 2022 with retrospective application as of the beginning of the fiscal year. We are evaluating the approach to, and impact of, adopting this new accounting guidance on our condensed consolidated financial statements. In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures (Topic 326): Financial Instruments – Credit Losses . This amended guidance will eliminate the accounting designation of a loan modification as a TDR, including eliminating the measurement guidance for TDRs. The amendments also enhance existing disclosure requirements and introduce new requirements related to modifications of receivables made to borrowers experiencing financial difficulty. Additionally, this guidance requires entities to disclose gross write-offs by year of origination for financing receivables, such as loans and interest receivable. The amended guidance is effective for fiscal years beginning after December 15, 2022 and is required to be applied prospectively, except for the recognition and measurement of TDRs which can be applied on a modified retrospective basis. We are evaluating the approach to, and impact of, adopting this new accounting guidance on our condensed consolidated financial statements. In 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This amended guidance provides transition relief for the accounting impact of reference rate reform. For a limited period, this guidance provides optional expedients and exceptions for applying GAAP to certain contract modifications, hedging relationships, and other transactions affected by a reference rate expected to be discontinued due to reference rate reform. The amended guidance is effective through December 31, 2022. Our exposure to London Interbank Offered Rate (“LIBOR”) is primarily limited to an insignificant portion of our available-for-sale debt securities. Accordingly, we do not expect reference rate reform to have a material impact on our condensed consolidated financial statements. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE We enable our customers to send and receive payments. We earn revenue primarily by completing payment transactions for our customers on our payments platform and from other value added services. Our revenues are classified into two categories: transaction revenues and revenues from other value added services. DISAGGREGATION OF REVENUE We determine operating segments based on how our chief operating decision maker (“CODM”) manages the business, makes operating decisions around the allocation of resources, and evaluates operating performance. Our CODM is our Chief Executive Officer, who reviews our operating results on a consolidated basis. We operate as one segment and have one reportable segment. Based on the information provided to and reviewed by our CODM, we believe that the nature, amount, timing, and uncertainty of our revenue and cash flows and how they are affected by economic factors are most appropriately depicted through our primary geographical markets and types of revenue categories (transaction revenues and revenues from other value added services). Revenues recorded within these categories are earned from similar products and services for which the nature of associated fees and the related revenue recognition models are substantially the same. The following table presents our revenue disaggregated by primary geographical market and category: Three Months Ended March 31, 2022 2021 (In millions) Primary geographical markets U.S. $ 3,671 $ 3,063 United Kingdom (“U.K.”) 526 625 Other countries (1) 2,286 2,345 Total net revenues (2) $ 6,483 $ 6,033 Revenue category Transaction revenues $ 5,998 $ 5,621 Revenues from other value added services 485 412 Total net revenues (2) $ 6,483 $ 6,033 (1) No single country included in the other countries category generated more than 10% of total net revenues. (2) Total net revenues include $187 million and $59 million for the three months ended March 31, 2022 and 2021, respectively, which do not represent revenues recognized in the scope of Accounting Standards Codification Topic 606, Revenue from contracts with customers . Such revenues relate to interest, fees, and gains earned on loans and interest receivable, as well as hedging gains or losses, and interest earned on certain assets underlying customer balances. Net revenues are attributed to the country in which the merchant is located, or in the case of a cross-border transaction, may be earned from the country in which the consumer and the merchant respectively reside. Revenues earned from other value added services are typically attributed to the country in which either the customer or partner reside. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHAREBasic net income per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding for the period. The dilutive effect of outstanding equity incentive awards is reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive common shares. The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Three Months Ended March 31, 2022 2021 (In millions, except per share amounts) Numerator: Net income $ 509 $ 1,097 Denominator: Weighted average shares of common stock - basic 1,163 1,173 Dilutive effect of equity incentive awards 9 17 Weighted average shares of common stock - diluted 1,172 1,190 Net income per share: Basic $ 0.44 $ 0.94 Diluted $ 0.43 $ 0.92 Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive 6 2 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS There were no acquisitions accounted for as business combinations or divestitures completed in the three months ended March 31, 2022 or 2021. ACQUISITIONS COMPLETED IN 2021 Paidy We completed the acquisition of Paidy in October 2021 by acquiring all outstanding shares for total consideration of approximately $2.7 billion, consisting of approximately $2.6 billion in cash, and approximately $161 million in assumed restricted stock and restricted stock units, subject to vesting conditions. Paidy is a two-sided payments platform that primarily provides buy now, pay later solutions (installment credit offerings) in Japan. With the acquisition of Paidy, we intend to expand our capabilities and relevance in Japan. The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed: (In millions) Goodwill $ 1,918 Customer lists and user base 512 Marketing related 83 Developed technology 47 Total intangibles $ 642 Loans and interest receivable, net 197 Cash and cash equivalents 101 Other net assets 87 Short-term and long-term debt (188) Deferred tax liabilities, net (186) Total purchase price $ 2,571 The intangible assets acquired consist primarily of merchant contracts, trade name/trademarks, and developed technology with estimated useful lives of three In connection with the acquisition, we issued restricted stock and restricted stock units with an approximate grant date fair value of $161 million, which represents post-business combination expense. The equity granted is a combination of shares issued to certain former Paidy employees subject to a holdback arrangement and assumed Paidy employee equity grants, which vest over a period of up to approximately four years and are subject to continued employment. Other Acquisitions In 2021, we completed four other acquisitions accounted for as business combinations. The total purchase price for these acquisitions was $542 million, consisting primarily of cash consideration. The allocation of purchase consideration resulted in approximately $90 million of technology, customer, and marketing related intangible assets with estimated useful lives ranging from approximately one OTHER INFORMATION |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS GOODWILL The following table presents goodwill balances and adjustments to those balances during the three months ended March 31, 2022: December 31, 2021 Goodwill Acquired Adjustments March 31, 2022 (In millions) Total goodwill $ 11,454 $ — $ (84) $ 11,370 The adjustments to goodwill during the three months ended March 31, 2022 pertain primarily to foreign currency translation adjustments. INTANGIBLE ASSETS The components of identifiable intangible assets were as follows: March 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) (In millions, except years) Intangible assets: Customer lists and user base $ 1,704 $ (967) $ 737 7 $ 1,726 $ (919) $ 807 7 Marketing related 400 (321) 79 5 405 (315) 90 5 Developed technology 1,107 (879) 228 3 1,109 (822) 287 3 All other 455 (314) 141 7 454 (306) 148 7 Intangible assets, net $ 3,666 $ (2,481) $ 1,185 $ 3,694 $ (2,362) $ 1,332 Amortization expense for intangible assets was $118 million and $106 million for the three months ended March 31, 2022 and 2021, respectively. Expected future intangible asset amortization as of March 31, 2022 was as follows (in millions): Fiscal years: Remaining 2022 $ 348 2023 226 2024 207 2025 169 2026 111 Thereafter 124 Total $ 1,185 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES PayPal enters into various leases, which are primarily real estate operating leases. We use these properties for executive and administrative offices, data centers, product development offices, customer services and operations centers, and warehouses. While a majority of our lease agreements do not contain an explicit interest rate, we have certain lease agreements that are subject to changes based on the Consumer Price Index or another referenced index. In the event of changes to the relevant index, lease liabilities are not remeasured and instead are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. The short-term lease exemption has been adopted for all leases with a duration of less than 12 months. PayPal’s lease portfolio contains a small number of subleases. A sublease situation can arise when currently leased real estate space is available and is surplus to operational requirements. As of March 31, 2022, we had no finance leases. The components of lease expense were as follows: Three Months Ended March 31, 2022 2021 (In millions) Lease expense Operating lease expense $ 42 $ 45 Sublease income (2) (2) Lease expense, net $ 40 $ 43 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2022 2021 (In millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 41 $ 42 Right-of-use (“ROU”) lease assets obtained in exchange for operating lease liabilities $ 73 $ 1 Supplemental balance sheet information related to leases was as follows: March 31, 2022 December 31, 2021 (In millions, except weighted-average figures) Operating ROU lease assets $ 693 $ 659 Other current operating lease liabilities 155 142 Operating lease liabilities 651 620 Total operating lease liabilities $ 806 $ 762 Weighted-average remaining lease term — operating leases 5.9 years 6.1 years Weighted-average discount rate — operating leases 3 % 3 % Future minimum lease payments for our operating leases as of March 31, 2022 were as follows: Operating Leases Fiscal years: (In millions) Remaining 2022 $ 131 2023 175 2024 156 2025 116 2026 98 Thereafter 202 Total $ 878 Less: present value discount (72) Lease liability $ 806 Operating lease amounts include minimum lease payments under our non-cancelable operating leases primarily for office and data center facilities. The amounts presented are consistent with contractual terms and are not expected to differ significantly from actual results under our existing leases. In the three months ended March 31, 2022 and 2021, we incurred asset impairment charges of $16 million and $26 million, respectively, within restructuring and other charges on our condensed consolidated statements of income. The impairments included a reduction to our ROU lease assets in the amount of $10 million and $21 million, respectively, which were attributed to certain leased space we are no longer utilizing for our core business operations, of which a portion is being subleased. three |
OTHER FINANCIAL STATEMENT DETAI
OTHER FINANCIAL STATEMENT DETAILS | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER FINANCIAL STATEMENT DETAILS | OTHER FINANCIAL STATEMENT DETAILS ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended March 31, 2022: Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Losses on Investments Foreign Currency Translation Adjustment (“CTA”) Net Investment Hedges CTA Gains Estimated Tax (Expense) Benefit Total (In millions) Beginning balance $ 199 $ (87) $ (270) $ 24 $ (2) $ (136) Other comprehensive income (loss) before reclassifications 44 (293) (95) 21 62 (261) Less: Amount of gain reclassified from accumulated other comprehensive income (“AOCI”) 47 — — — — 47 Net current period other comprehensive income (loss) (3) (293) (95) 21 62 (308) Ending balance $ 196 $ (380) $ (365) $ 45 $ 60 $ (444) The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended March 31, 2021: Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign CTA Net Investment Hedges CTA Gains Estimated Tax Benefit Total (In millions) Beginning balance $ (323) $ 11 $ (198) $ 24 $ 2 $ (484) Other comprehensive income (loss) before reclassifications 139 (15) (53) — 1 72 Less: Amount of loss reclassified from AOCI (59) — — — — (59) Net current period other comprehensive income (loss) 198 (15) (53) — 1 131 Ending balance $ (125) $ (4) $ (251) $ 24 $ 3 $ (353) The following table provides details about reclassifications out of AOCI for the periods presented below: Details about AOCI Components Amount of Gains (Losses) Reclassified from AOCI Affected Line Item in the Statement of Income Three Months Ended March 31, 2022 2021 (In millions) Gains (losses) on cash flow hedges — foreign exchange contracts $ 47 $ (59) Net revenues Unrealized gains (losses) on investments — — Other income (expense), net $ 47 $ (59) Income before income taxes — — Income tax expense Total reclassifications for the period $ 47 $ (59) Net income OTHER INCOME (EXPENSE), NET The following table reconciles the components of other income (expense), net for the periods presented below: Three Months Ended March 31, 2022 2021 (In millions) Interest income $ 15 $ 15 Interest expense (59) (58) Net gains (losses) on strategic investments 14 (120) Other (52) (7) Other income (expense), net $ (82) $ (170) |
FUNDS RECEIVABLE AND CUSTOMER A
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS | FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS The following table summarizes the assets underlying our funds receivable and customer accounts, short-term investments, and long-term investments as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 (In millions) Funds receivable and customer accounts: Cash and cash equivalents $ 12,955 $ 12,723 Time deposits 122 334 Available-for-sale debt securities 18,916 18,336 Funds receivable 5,053 4,748 Total funds receivable and customer accounts $ 37,046 $ 36,141 Short-term investments: Time deposits $ 302 $ 590 Available-for-sale debt securities 2,775 3,604 Restricted cash 27 109 Total short-term investments $ 3,104 $ 4,303 Long-term investments: Time deposits $ 35 $ 45 Available-for-sale debt securities 3,921 3,545 Strategic investments 3,189 3,207 Total long-term investments $ 7,145 $ 6,797 As of March 31, 2022 and December 31, 2021, the estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments was as follows: March 31, 2022 (1) Gross Gross Gross Estimated (In millions) Funds receivable and customer accounts: U.S. government and agency securities $ 9,592 $ — $ (146) $ 9,446 Foreign government and agency securities 2,005 — (37) 1,968 Corporate debt securities 4,665 — (62) 4,603 Asset-backed securities 1,170 — (14) 1,156 Municipal securities 60 — (1) 59 Short-term investments: U.S. government and agency securities 405 — — 405 Foreign government and agency securities 371 — (2) 369 Corporate debt securities 1,513 — (3) 1,510 Asset-backed securities 482 — (3) 479 Long-term investments: U.S. government and agency securities 568 — (25) 543 Foreign government and agency securities 719 — (24) 695 Corporate debt securities 1,425 — (49) 1,376 Asset-backed securities 1,321 — (14) 1,307 Total available-for-sale debt securities (2) $ 24,296 $ — $ (380) $ 23,916 (1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position. (2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9 — Fair Value Measurement of Assets and Liabilities.” December 31, 2021 (1) Gross Gross Gross Estimated (In millions) Funds receivable and customer accounts: U.S. government and agency securities $ 8,655 $ — $ (31) $ 8,624 Foreign government and agency securities 1,923 — (9) 1,914 Corporate debt securities 3,402 — (15) 3,387 Asset-backed securities 1,552 — (3) 1,549 Municipal securities 535 — — 535 Short-term investments: U.S. government and agency securities 537 — — 537 Foreign government and agency securities 505 — (1) 504 Corporate debt securities 2,273 — — 2,273 Asset-backed securities 278 — (1) 277 Long-term investments: U.S. government and agency securities 568 — (6) 562 Foreign government and agency securities 752 — (6) 746 Corporate debt securities 1,435 — (11) 1,424 Asset-backed securities 817 — (4) 813 Total available-for-sale debt securities (2) $ 23,232 $ — $ (87) $ 23,145 (1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position. (2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9 — Fair Value Measurement of Assets and Liabilities.” Gross amortized cost and estimated fair value balances exclude accrued interest receivable on available-for-sale debt securities, which totaled $43 million and $36 million at March 31, 2022 and December 31, 2021, respectively, and were included in other current assets on our condensed consolidated balance sheets. As of March 31, 2022 and December 31, 2021, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses has not been deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows: March 31, 2022 (1) Less than 12 months 12 months or longer Total Fair Value Gross Fair Value Gross Fair Value Gross (In millions) Funds receivable and customer accounts: U.S. government and agency securities $ 7,857 $ (131) $ 385 $ (15) $ 8,242 $ (146) Foreign government and agency securities 1,777 (33) 151 (4) 1,928 (37) Corporate debt securities 1,741 (62) — — 1,741 (62) Asset-backed securities 1,130 (14) — — 1,130 (14) Municipal securities 49 (1) — — 49 (1) Short-term investments: U.S. government and agency securities 231 — — — 231 — Foreign government and agency securities 359 (2) 10 — 369 (2) Corporate debt securities 380 (3) — — 380 (3) Asset-backed securities 428 (3) — — 428 (3) Long-term investments: U.S. government and agency securities 543 (25) — — 543 (25) Foreign government and agency securities 555 (18) 139 (6) 694 (24) Corporate debt securities 1,196 (45) 171 (4) 1,367 (49) Asset-backed securities 959 (14) — — 959 (14) Total available-for-sale debt securities $ 17,205 $ (351) $ 856 $ (29) $ 18,061 $ (380) (1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position. December 31, 2021 (1) Less than 12 months 12 months or longer Total Fair Value Gross Fair Value Gross Fair Value Gross (In millions) Funds receivable and customer accounts: U.S. government and agency securities $ 8,124 $ (31) $ — $ — $ 8,124 $ (31) Foreign government and agency securities 1,778 (9) 20 — 1,798 (9) Corporate debt securities 1,841 (15) — — 1,841 (15) Asset-backed securities 1,302 (3) — — 1,302 (3) Municipal securities 50 — — — 50 — Short-term investments: U.S. government and agency securities 440 — — — 440 — Foreign government and agency securities 498 (1) — — 498 (1) Corporate debt securities 323 — — — 323 — Asset-backed securities 273 (1) — — 273 (1) Long-term investments: U.S. government and agency securities 562 (6) — — 562 (6) Foreign government and agency securities 746 (6) — — 746 (6) Corporate debt securities 1,345 (11) — — 1,345 (11) Asset-backed securities 707 (4) — — 707 (4) Total available-for-sale debt securities $ 17,989 $ (87) $ 20 $ — $ 18,009 $ (87) (1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position. Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value is due primarily to changes in market interest rates, rather than credit losses. We will continue to monitor the performance of the investment portfolio and assess whether impairment due to expected credit losses has occurred. Amounts reclassified to earnings from unrealized gains and losses were not material for the three months ended March 31, 2022 and 2021. Our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows: March 31, 2022 Amortized Cost Fair Value (In millions) One year or less $ 10,306 $ 10,273 After one year through five years 12,065 11,731 After five years through ten years 1,834 1,822 After ten years 91 90 Total $ 24,296 $ 23,916 STRATEGIC INVESTMENTS Our strategic investments include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies. Our marketable equity securities have readily determinable fair values and are recorded as long-term investments on our condensed consolidated balance sheets at fair value with changes in fair value recorded in other income (expense), net on our condensed consolidated statements of income. Marketable equity securities totaled $1.6 billion and $1.9 billion as of March 31, 2022 and December 31, 2021, respectively. Our non-marketable equity securities are recorded in long-term investments on our condensed consolidated balance sheets. As of March 31, 2022 and December 31, 2021, we had non-marketable equity securities of $92 million and $79 million, respectively, where we have the ability to exercise significant influence, but not control, over the investee. We account for these equity securities using the equity method of accounting. The remaining non-marketable equity securities do not have a readily determinable fair value and we measure these equity investments at cost minus impairment, if any, and adjust for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Measurement Alternative”). All gains and losses on these investments, realized and unrealized, and our share of earnings or losses from investments accounted for using the equity method are recognized in other income (expense), net on our condensed consolidated statements of income. The carrying value of our non-marketable equity securities totaled $1.6 billion and $1.3 billion as of March 31, 2022 and December 31, 2021, respectively. Measurement Alternative adjustments The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 (In millions) Carrying amount, beginning of period $ 1,268 $ 779 Adjustments related to non-marketable equity securities: Net additions (1) 4 10 Gross unrealized gains 197 12 Carrying amount, end of period $ 1,469 $ 801 (1) Net additions include purchases, reductions due to sales of securities, and reclassifications when Measurement Alternative is subsequently elected or no longer applies. The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative for investments held at March 31, 2022 and December 31, 2021, respectively: March 31, 2022 December 31, 2021 (In millions) Cumulative gross unrealized gains $ 911 $ 733 Cumulative gross unrealized losses and impairments $ (27) $ (27) Unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at March 31, 2022 and 2021, respectively: Three Months Ended March 31, 2022 2021 (In millions) Net unrealized losses $ (36) $ (149) |
FAIR VALUE MEASUREMENT OF ASSET
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES | FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES FINANCIAL ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other (In millions) Assets: Cash and cash equivalents (1) $ 480 $ — $ 480 Short-term investments (2) : U.S. government and agency securities 405 — 405 Foreign government and agency securities 381 — 381 Corporate debt securities 1,510 — 1,510 Asset-backed securities 479 — 479 Total short-term investments 2,775 — 2,775 Funds receivable and customer accounts (3) : Cash and cash equivalents 362 — 362 U.S. government and agency securities 9,446 — 9,446 Foreign government and agency securities 3,461 — 3,461 Corporate debt securities 4,794 — 4,794 Asset-backed securities 1,156 — 1,156 Municipal securities 59 — 59 Total funds receivable and customer accounts 19,278 — 19,278 Derivatives 351 — 351 Long-term investments (2),(4) : U.S. government and agency securities 543 — 543 Foreign government and agency securities 695 — 695 Corporate debt securities 1,376 — 1,376 Asset-backed securities 1,307 — 1,307 Marketable equity securities 1,628 1,628 — Total long-term investments 5,549 1,628 3,921 Total financial assets $ 28,433 $ 1,628 $ 26,805 Liabilities: Derivatives $ 134 $ — $ 134 (1) Excludes cash of $4.4 billion not measured and recorded at fair value. (2) Excludes restricted cash of $27 million and time deposits of $337 million not measured and recorded at fair value. (3) Excludes cash, time deposits, and funds receivable of $17.8 billion underlying funds receivable and customer accounts not measured and recorded at fair value. (4) Excludes non-marketable equity securities of $1.6 billion measured using the Measurement Alternative or equity method accounting. December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) (In millions) Assets: Cash and cash equivalents (1) $ 400 $ — $ 400 Short-term investments (2) : U.S. government and agency securities 537 — 537 Foreign government and agency securities 517 — 517 Corporate debt securities 2,273 — 2,273 Asset-backed securities 277 — 277 Total short-term investments 3,604 — 3,604 Funds receivable and customer accounts (3) : Cash and cash equivalents 622 — 622 U.S. government and agency securities 8,624 — 8,624 Foreign government and agency securities 4,083 — 4,083 Corporate debt securities 3,545 — 3,545 Asset-backed securities 1,549 — 1,549 Municipal securities 535 — 535 Total funds receivable and customer accounts 18,958 — 18,958 Derivatives 304 — 304 Long-term investments (2), (4) : U.S. government and agency securities 562 — 562 Foreign government and agency securities 746 — 746 Corporate debt securities 1,424 — 1,424 Asset-backed securities 813 — 813 Marketable equity securities 1,860 1,860 — Total long-term investments 5,405 1,860 3,545 Total financial assets $ 28,671 $ 1,860 $ 26,811 Liabilities: Derivatives $ 130 $ — $ 130 (1) Excludes cash of $4.8 billion not measured and recorded at fair value. (2) Excludes restricted cash of $109 million and time deposits of $635 million not measured and recorded at fair value. (3) Excludes cash, time deposits, and funds receivable of $17.2 billion underlying funds receivable and customer accounts not measured and recorded at fair value. (4) Excludes non-marketable equity securities of $1.3 billion measured using the Measurement Alternative or equity method accounting. Our marketable equity securities are valued using quoted prices for identical assets in active markets (Level 1). All other financial assets and liabilities are valued using quoted prices for identical instruments in less active markets, readily available pricing sources for comparable instruments, or models using market observable inputs (Level 2). A majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as currency rates, interest rate yield curves, option volatility, and equity prices. Our derivative instruments are primarily short-term in nature, generally one month to one year in duration. Certain foreign currency contracts designated as cash flow hedges may have a duration of up to 18 months. As of March 31, 2022 and December 31, 2021, we did not have any assets or liabilities requiring measurement at fair value without observable market values that would require a high level of judgment to determine fair value (Level 3). We elect to account for available-for-sale debt securities denominated in currencies other than the functional currency of our subsidiaries under the fair value option. Election of the fair value option allows us to recognize any gains and losses from fair value changes on such investments in other income (expense), net on the condensed consolidated statements of income to significantly reduce the accounting asymmetry that would otherwise arise when recognizing the corresponding foreign exchange gains and losses relating to customer liabilities. The following table summarizes the estimated fair value of our available-for-sale debt securities under the fair value option as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 (In millions) Funds receivable and customer accounts $ 1,684 $ 2,327 Short-term investments $ 12 $ 13 The following table summarizes the gains (losses) from fair value changes recognized in other income (expense), net related to the available-for-sale debt securities under the fair value option for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (In millions) Funds receivable and customer accounts $ (34) $ (67) Short-term investments $ — $ (11) ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS The following tables summarize our assets and liabilities held as of March 31, 2022 and December 31, 2021 for which a non-recurring fair value measurement was recorded during the three months ended March 31, 2022 and the year ended December 31, 2021, respectively: March 31, Significant Other Observable Inputs (Level 2) (In millions) Non-marketable equity investments measured using the Measurement Alternative (1) $ 636 $ 636 Other assets (2) 24 24 Total $ 660 $ 660 (1) Excludes non-marketable equity investments of $833 million accounted for under the Measurement Alternative for which no observable price changes occurred during the three months ended March 31, 2022. (2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the three months ended March 31, 2022. See “Note 6—Leases” for additional information. December 31, 2021 Significant Other Observable Inputs (Level 2) (In millions) Non-marketable equity investments measured using the Measurement Alternative (1) $ 611 $ 611 Other assets (2) 86 86 Total $ 697 $ 697 (1) Excludes non-marketable equity investments of $657 million accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2021. (2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the year ended December 31, 2021. We measure the non-marketable equity investments accounted for under the Measurement Alternative at cost minus impairment, if any, adjusted for observable price changes in orderly transactions for an identical or similar investment in the same issuer. Impairment losses on ROU lease assets related to office operating leases are calculated initially using estimated rental income per square foot derived from observable market data. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS SUMMARY OF DERIVATIVE INSTRUMENTS Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. Our derivatives expose us to credit risk to the extent that our counterparties may be unable to meet the terms of the arrangement. We seek to mitigate such risk by limiting our counterparties to, and by spreading the risk across, major financial institutions and by entering into collateral security arrangements. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. We do not use any derivative instruments for trading or speculative purposes. Cash flow hedges We have significant international revenues and costs denominated in foreign currencies, which subjects us to foreign currency risk. We have a foreign currency exposure management program in which we designate certain foreign currency exchange contracts, generally with maturities of 18 months or less, to reduce the volatility of cash flows primarily related to forecasted revenues denominated in foreign currencies. The objective of these foreign currency exchange contracts is to help mitigate the risk that the U.S. dollar-equivalent cash flows are adversely affected by changes in the applicable U.S. dollar/foreign currency exchange rate. These derivative instruments are designated as cash flow hedges and accordingly, the derivative’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into revenue in the same period the forecasted transaction affects earnings. We evaluate the effectiveness of our foreign currency exchange contracts on a quarterly basis by comparing the critical terms of the derivative instruments with the critical terms of the forecasted cash flows of the hedged item; if the critical terms are the same, we conclude the hedge will be perfectly effective. We do not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness. We report cash flows arising from derivative instruments consistent with the classification of cash flows from the underlying hedged items that these derivatives are hedging. Accordingly, the cash flows associated with derivatives designated as cash flow hedges are classified in cash flows from operating activities on our condensed consolidated statements of cash flows. As of March 31, 2022, we estimated that $185 million of net derivative gains related to our cash flow hedges included in AOCI are expected to be reclassified into earnings within the next 12 months. During the three months ended March 31, 2022 and 2021, we did not discontinue any cash flow hedges because it was probable that the original forecasted transaction would not occur and as such, did not reclassify any gains or losses to earnings prior to the occurrence of the hedged transaction. If we elect to discontinue our cash flow hedges and it is probable that the original forecasted transaction will occur, we continue to report the derivative’s gain or loss in AOCI until the forecasted transaction affects earnings, at which point we also reclassify it into earnings. Gains and losses on derivatives held after we discontinue our cash flow hedges and on derivative instruments that are not designated as cash flow hedges are recorded in the same financial statement line item to which the derivative relates. Net investment hedge We use forward foreign currency exchange contracts to reduce the foreign currency exchange risk related to our investment in certain foreign subsidiaries. These derivatives are designated as net investment hedges and accordingly, the gain and loss on the portion of the derivative included in the assessment of hedge effectiveness is recorded in AOCI as part of foreign currency translation. We exclude the forward points from the assessment of hedge effectiveness and recognize them in other income (expense), net on a straight-line basis over the life of the hedge. The accumulated gains and losses associated with these instruments will remain in AOCI until the foreign subsidiaries are sold or substantially liquidated, at which point they will be reclassified into earnings. The cash flow associated with derivatives designated as a net investment hedge are classified in cash flows from investing activities on our condensed consolidated statements of cash flows. We have not reclassified any gains or losses related to the net investment hedges from AOCI into earnings during any of the periods presented. Foreign currency exchange contracts not designated as hedging instruments We have a foreign currency exposure management program in which we use foreign currency exchange contracts to offset the foreign currency exchange risk of our assets and liabilities denominated in currencies other than the functional currency of our subsidiaries. These contracts are not designated as hedging instruments and reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements on our assets and liabilities. The gains and losses due to remeasurement of certain foreign currency denominated monetary assets and liabilities are recorded in other income (expense), net, which are offset by the gains and losses on these foreign currency exchange contracts. The cash flows associated with our non-designated derivatives used to hedge foreign currency denominated monetary assets and liabilities are classified in cash flows from operating activities on our condensed consolidated statements of cash flows. FAIR VALUE OF DERIVATIVE CONTRACTS The fair value of our outstanding derivative instruments as of March 31, 2022 and December 31, 2021 was as follows: Balance Sheet Location March 31, 2022 December 31, 2021 (In millions) Derivative Assets: Foreign currency exchange contracts designated as hedging instruments Other current assets $ 220 $ 205 Foreign currency exchange contracts designated as hedging instruments Other assets (non-current) 45 21 Foreign currency exchange contracts not designated as hedging instruments Other current assets 86 78 Total derivative assets $ 351 $ 304 Derivative Liabilities: Foreign currency exchange contracts designated as hedging instruments Other current liabilities $ 35 $ 27 Foreign currency exchange contracts designated as hedging instruments Other long-term liabilities 5 — Foreign currency exchange contracts not designated as hedging instruments Other current liabilities 94 103 Total derivative liabilities $ 134 $ 130 MASTER NETTING AGREEMENTS - RIGHTS OF SET-OFF Under master netting agreements with respective counterparties to our foreign currency exchange contracts, subject to applicable requirements, we are allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis on our condensed consolidated balance sheets. Rights of set-off associated with our foreign currency exchange contracts represented a potential offset to both assets and liabilities of $55 million as of March 31, 2022 and $102 million as of December 31, 2021. We have entered into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. The following table provides the collateral posted and received: March 31, 2022 December 31, 2021 (In millions) Cash collateral posted (1) $ 6 $ 5 Cash collateral received (2) $ 235 $ 209 (1) Right to reclaim cash collateral related to our derivative liabilities recognized in other current assets on our condensed consolidated balance sheets. (2) Obligation to return counterparty cash collateral related to our derivative assets recognized in other current liabilities on our condensed consolidated balance sheets. EFFECT OF DERIVATIVE CONTRACTS ON CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The following table provides the location in the condensed consolidated statements of income and amount of recognized gains or losses related to our derivative instruments: Three Months Ended March 31, 2022 2021 (In millions) Net revenues Other income (expense), net Net revenues Other income (expense), net Total amounts presented in the condensed consolidated statements of income in which the effects of cash flow hedges and net investment hedges are recorded $ 6,483 $ (82) $ 6,033 $ (170) Gains (losses) on derivatives in cash flow hedging relationship: Amount of gains (losses) on foreign exchange contracts reclassified from AOCI 47 — (59) — Gains on derivatives in net investment hedging relationship: Amount of gains on foreign exchange contracts excluded from the assessment of effectiveness — 9 — — (Losses) gains on derivatives not designated as hedging instruments: Amount of (losses) gains on foreign exchange contracts — (39) — 41 Total gains (losses) $ 47 $ (30) $ (59) $ 41 The following table provides the amount of pre-tax unrealized gains or losses included in the assessment of hedge effectiveness related to our derivative instruments designated as hedging instruments that are recognized in other comprehensive income: Three Months Ended March 31, 2022 2021 (In millions) Unrealized gains on foreign exchange contracts designated as cash flow hedges $ 44 $ 139 Unrealized gains on foreign exchange contracts designated as net investment hedges 21 — Total unrealized gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income $ 65 $ 139 NOTIONAL AMOUNTS OF DERIVATIVE CONTRACTS Derivative transactions are measured in terms of the notional amount; however, this amount is not recorded on the balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged, but is used only as the underlying basis on which the value of foreign currency exchange payments under these contracts is determined. The following table provides the notional amounts of our outstanding derivatives: March 31, 2022 December 31, 2021 (In millions) Foreign exchange contracts designated as hedging instruments $ 7,205 $ 5,349 Foreign exchange contracts not designated as hedging instruments 12,334 20,414 Total $ 19,539 $ 25,763 |
LOANS AND INTEREST RECEIVABLE
LOANS AND INTEREST RECEIVABLE | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
LOANS AND INTEREST RECEIVABLE | LOANS AND INTEREST RECEIVABLE CONSUMER RECEIVABLES We offer revolving and installment credit products as a funding option for consumers in certain checkout transactions on our payments platform. Our revolving credit product consists of PayPal Credit in the U.K.; once a consumer is approved for credit, it is made available to them as a funding source. Additionally, we offer installment credit products at the time of checkout in various locations including the U.S., Europe, Australia, and Japan. The majority of the installment loans allow consumers to pay for purchases over periods of 12 months or less. As of March 31, 2022 and December 31, 2021, the outstanding balance of consumer receivables, which consisted of revolving and installment loans and interest receivable, was $4.1 billion and $3.8 billion, respectively. We closely monitor the credit quality of our consumer receivables to evaluate and manage our related exposure to credit risk. Credit risk management begins with initial underwriting and continues through the full repayment of a loan. To assess a consumer who requests a loan, we use, among other indicators, internally developed risk models using detailed information from external sources, such as credit bureaus where available, and internal historical experience, including the consumer’s prior repayment history with our credit products where available. We use delinquency status and trends to assist in making new and ongoing credit decisions, to adjust our models, to plan our collection practices and strategies, and in determining our allowance for consumer loans and interest receivable. The following tables present the delinquency status of consumer loans and interest receivable by year of origination. The amounts are based on the number of days past the billing date for revolving loans or contractual repayment date for installment loans. The “current” category represents balances that are within 29 days of the billing date or contractual repayment date, as applicable. March 31, 2022 (In millions, except percentages) Installment Loans Amortized Cost Basis Revolving Loans 2022 2021 2020 2019 2018 Total Percent Current $ 1,744 $ 1,773 $ 470 $ — $ — $ — $ 3,987 96.9% 30 - 59 Days 21 13 6 — — — 40 1.0% 60 - 89 Days 13 1 15 — — — 29 0.7% 90 - 179 Days 26 — 33 — — — 59 1.4% Total (1) $ 1,804 $ 1,787 $ 524 $ — $ — $ — $ 4,115 100% (1) Excludes receivables from other consumer credit products of $39 million at March 31, 2022. December 31, 2021 (In millions, except percentages) Installment Loans Amortized Cost Basis Revolving Loans 2021 2020 2019 2018 2017 Total Percent Current $ 1,790 $ 1,939 $ 3 $ — $ — $ — $ 3,732 97.0% 30 - 59 Days 18 16 — — — — 34 0.9% 60 - 89 Days 12 13 — — — — 25 0.6% 90 - 179 Days 27 28 1 — — — 56 1.5% Total (1) $ 1,847 $ 1,996 $ 4 $ — $ — $ — $ 3,847 100% (1) Excludes receivables from other consumer credit products of $44 million at December 31, 2021. The following table summarizes the activity in the allowance for consumer loans and interest receivable for the three months ended March 31, 2022 and 2021: March 31, 2022 March 31, 2021 Consumer Loans Receivable Interest Receivable Total Allowance (1) Consumer Loans Receivable Interest Receivable Total Allowance (1) (In millions) Beginning balance $ 243 $ 43 $ 286 $ 299 $ 53 $ 352 Provisions 43 6 49 6 2 8 Charge-offs (42) (9) (51) (20) (4) (24) Recoveries 3 — 3 5 — 5 Other (2) (6) (1) (7) 2 1 3 Ending balance $ 241 $ 39 $ 280 $ 292 $ 52 $ 344 (1) Excludes allowances from other consumer credit products of $3 million at both March 31, 2022 and 2021. (2) Includes amounts related to foreign currency remeasurement. The provision for the three months ended March 31, 2022 was primarily attributable to originations in the consumer portfolio, partially offset by improvements in the credit quality of the consumer portfolio and a reduction in the volatility of model inputs representing current and projected macroeconomic conditions. Qualitative adjustments were made to account for limitations in our current expected credit loss models due to uncertainty with respect to macroeconomic conditions. The increase in charge-offs for the three months ended March 31, 2022 compared to the same period in the prior year was due to growth in the consumer portfolio driven primarily by the expansion of our short-term installment products. The provision for current expected credit losses relating to our consumer loans receivable portfolio is recognized in transaction and credit losses on our condensed consolidated statements of income. The provision for interest receivable for interest earned on our consumer loans receivable portfolio is recognized in revenues from other value added services as a reduction to revenue. Loans receivable continue to accrue interest until they are charged off. We charge off consumer receivable balances in the month in which a customer’s balance becomes 180 days past the billing date or contractual repayment date. Bankrupt accounts are charged off within 60 days after receipt of notification of bankruptcy. Charge-offs that are recovered are recorded as a reduction to our allowance for loans and interest receivable. MERCHANT RECEIVABLES We offer access to merchant finance products for certain small and medium-sized businesses through our PayPal Working Capital (“PPWC”) and PayPal Business Loan (“PPBL”) products, which we collectively refer to as the merchant finance offerings. We purchase receivables related to credit extended to U.S. merchants by WebBank and are responsible for servicing functions related to that portfolio. During the three months ended March 31, 2022 and 2021, we purchased approximately $605 million and $297 million in credit receivables, respectively. As of March 31, 2022 and December 31, 2021, the total outstanding balance in our pool of merchant loans, advances, and interest and fees receivable was $1.5 billion and $1.4 billion, respectively, net of the participation interest sold to WebBank of $68 million and $63 million, respectively. Through our PPWC product, merchants can borrow a certain percentage of their annual payment volume processed by PayPal and are charged a fixed fee for the loan or advance based on the overall credit assessment of the merchant. Loans and advances are repaid through a fixed percentage of the merchant’s future payment volume that PayPal processes. Through our PPBL product, we provide merchants access to short-term business financing for a fixed fee based on an evaluation of the applying business as well as the business owner. PPBL repayments are collected through periodic payments until the balance has been satisfied. The interest or fee is fixed at the time the loan or advance is extended and is recognized as deferred revenue in accrued expenses and other current liabilities on our condensed consolidated balance sheets. The fixed interest or fee is amortized into revenues from other value added services based on the amount repaid over the repayment period. We estimate the repayment period for PPWC based on the merchant’s payment processing history with PayPal. For PPWC, there is a general requirement that at least 10% of the original amount of the loan or advance plus the fixed fee must be repaid every 90 days. We calculate the repayment rate of the merchant’s future payment volume so that repayment of the loan or advance and fixed fee is expected to generally occur within 9 to 12 months from the date of the loan or advance. On a monthly basis, we recalculate the repayment period based on the repayment activity on the receivable. As such, actual repayment periods are dependent on actual merchant payment processing volumes. For PPBL, we receive fixed periodic payments over the contractual term of the loan, which generally ranges from 3 to 12 months. We actively monitor receivables with repayment periods greater than the original expected or contractual repayment period, as well as the credit quality of our merchant loans and advances that we extend or purchase, so that we can evaluate, quantify, and manage our credit risk exposure. To assess a merchant seeking a loan or advance, we use, among other indicators, risk models developed internally which utilize information obtained from multiple internal and external data sources to predict the likelihood of timely and satisfactory repayment by the merchant of the loan or advance amount and the related interest or fee. Primary drivers of the models include the merchant’s annual payment volume, payment processing history with PayPal, prior repayment history with PayPal’s credit products where available, information sourced from consumer and business credit bureau reports, and other information obtained during the application process. We use delinquency status and trends to assist in making (or, in the U.S., to assist WebBank in making) ongoing credit decisions, to adjust our internal models, to plan our collection strategies, and in determining our allowance for these loans, advances, and interest and fees receivable. Merchant receivables delinquency and allowance The following tables present the delinquency status of the merchant loans, advances, and interest and fees receivable by year of origination. The amounts are based on the number of days past the expected or contractual repayment date for amounts outstanding. The “current” category represents balances that are within 29 days of the expected repayment date or contractual repayment date, as applicable. March 31, 2022 (In millions, except percentages) 2022 2021 2020 2019 2018 Total Percent Current $ 715 $ 531 $ 105 $ 77 $ 3 $ 1,431 92.6% 30 - 59 Days 5 23 9 9 — 46 3.0% 60 - 89 Days 1 11 5 6 — 23 1.5% 90 - 179 Days — 17 9 7 1 34 2.2% 180+ Days — 1 4 5 1 11 0.7% Total $ 721 $ 583 $ 132 $ 104 $ 5 $ 1,545 100% December 31, 2021 (In millions, except percentages) 2021 2020 2019 2018 2017 Total Percent Current $ 1,100 $ 129 $ 95 $ 3 $ — $ 1,327 91.8% 30 - 59 Days 24 12 12 1 — 49 3.4% 60 - 89 Days 10 8 7 — — 25 1.7% 90 - 179 Days 10 11 11 1 — 33 2.3% 180+ Days — 4 7 1 — 12 0.8% Total (1) $ 1,144 $ 164 $ 132 $ 6 $ — $ 1,446 100% (1) Balances include the impact of modification programs offered by the Company as a part of our COVID-19 payment relief initiatives (as discussed further below). The following table summarizes the activity in the allowance for merchant loans, advances, and interest and fees receivable for the three months ended March 31, 2022 and 2021: March 31, 2022 March 31, 2021 Merchant Loans and Advances Interest and Fees Receivable Total Allowance Merchant Loans and Advances Interest and Fees Receivable Total Allowance (In millions) Beginning balance $ 192 $ 9 $ 201 $ 440 $ 43 $ 483 Provisions 5 1 6 (15) (2) (17) Charge-offs (21) (2) (23) (71) (6) (77) Recoveries 9 — 9 8 — 8 Ending balance $ 185 $ 8 $ 193 $ 362 $ 35 $ 397 The provision for the three months ended March 31, 2022 was primarily attributable to originations in the merchant portfolio mostly offset by improvements in the credit quality of our merchant portfolio and a reduction in the volatility of model inputs representing current and projected macroeconomic conditions. Qualitative adjustments were made to account for historical loss rates and uncertainty around the effectiveness of loan modification programs made available to merchants, as described further below. The decrease in the charge-offs for the three months ended March 31, 2022 compared to the same period in the prior year was due to improved credit quality of our merchant loan portfolio due to modifications in the acceptable risk parameters, which tightened eligibility requirements. For merchant loans and advances, the determination of delinquency is based on the current expected or contractual repayment period of the loan or advance and fixed interest or fee payment as compared to the original expected or contractual repayment period. We charge off the receivables outstanding under our PPBL product when the repayments are 180 days past the contractual repayment date. We charge off the receivables outstanding under our PPWC product when the repayments are 180 days past our expectation of repayments and the merchant has not made a payment in the last 60 days, or when the repayments are 360 days past due regardless of whether the merchant has made a payment within the last 60 days. Bankrupt accounts are charged off within 60 days of receiving notification of bankruptcy. The provision for credit losses on merchant loans and advances is recognized in transaction and credit losses, and the provision for interest and fees receivable is recognized as a reduction of deferred revenue in accrued expenses and other current liabilities on our condensed consolidated balance sheets. Charge-offs that are recovered are recorded as a reduction to our allowance for loans and interest receivable. Troubled debt restructurings In instances where a merchant is able to demonstrate that it is experiencing financial difficulty, there may be a modification of the loan or advance and the related interest or fee receivable for which it is probable that, without modification, we will be unable to collect all amounts due. These modifications are intended to provide merchants with financial relief, and help enable us to mitigate losses. These modifications include an increase in term by approximately 1 to 5.5 years while moving the delinquency status to current. The fee on certain of these loans or advances remains unchanged over the extended term. Alternatively, certain loans and advances have been modified to replace the initial fixed fee structure at the time the loan or advance was extended with a fixed annual percentage rate applied over the amended remaining term, which will continue to accrue interest at the fixed rate until the earlier of maturity or charge-off. These modifications had a de minimis impact on our condensed consolidated statements of income in the three months ended March 31, 2022 and 2021. Allowances for TDRs are assessed separately from other loans and advances within our portfolio and are determined by estimating current expected credit losses utilizing the modified term and interest rate assumptions. Historical loss estimates are utilized in addition to macroeconomic assumptions to determine expected credit loss rates. Further, we may include qualitative adjustments that incorporate incremental information not captured in the quantitative estimates of our current expected credit losses. During the three months ended March 31, 2022, the merchant loans and interest receivables which have been modified as TDRs were de minimis. The following table shows the merchant loans and interest receivables which were modified as TDRs in the three months ended March 31, 2021: Three Months Ended March 31, 2021 Number of Accounts Outstanding Balances (1) (in millions) Weighted Average Payment Term Extensions Loans and interest receivable 2 $ 31 36 (1) Balances are as of modification date. A merchant is considered in payment default after a modification when the merchant’s payment becomes 60 days past their expected or contractual repayment date. For loans that have defaulted after being modified, the increased estimate of current expected credit loss is factored into overall expected credit losses. In the three months ended March 31, 2022 and 2021, the amount of merchant loans and interest receivables classified as TDRs that have subsequently defaulted on payments was de minimis. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT FIXED RATE NOTES On May 18, 2020 and September 26, 2019, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $4.0 billion and $5.0 billion, respectively. The notes issued from the May 2020 and September 2019 debt issuances are senior unsecured obligations and are collectively referred to as the “Notes.” As of both March 31, 2022 and December 31, 2021, we had an outstanding aggregate principal amount of $9.0 billion related to the Notes. The following table summarizes the Notes: Maturities Effective Interest Rate March 31, 2022 December 31, 2021 (in millions) September 2019 debt issuance of $5.0 billion: Fixed-rate 2.200% notes 9/26/2022 2.39% $ 1,000 $ 1,000 Fixed-rate 2.400% notes 10/1/2024 2.52% 1,250 1,250 Fixed-rate 2.650% notes 10/1/2026 2.78% 1,250 1,250 Fixed-rate 2.850% notes 10/1/2029 2.96% 1,500 1,500 May 2020 debt issuance of $4.0 billion: Fixed-rate 1.350% notes 6/1/2023 1.55% 1,000 1,000 Fixed-rate 1.650% notes 6/1/2025 1.78% 1,000 1,000 Fixed-rate 2.300% notes 6/1/2030 2.39% 1,000 1,000 Fixed-rate 3.250% notes 6/1/2050 3.33% 1,000 1,000 Total term debt $ 9,000 $ 9,000 Unamortized premium (discount) and issuance costs, net (48) (50) Less: current portion of long-term debt (1) (999) (999) Total carrying amount of long-term debt $ 7,953 $ 7,951 (1) The current portion of long-term debt is included within accrued expenses and other current liabilities on our condensed consolidated balance sheets. The effective interest rates for the Notes include interest on the Notes, amortization of debt issuance costs, and amortization of the debt discount. The interest expense recorded for the Notes, including amortization of the debt discount and debt issuance costs, was $56 million for both the three months ended March 31, 2022 and 2021. Paidy credit agreement In February 2022, we entered into a credit agreement (the “Paidy Credit Agreement”) with Paidy as co-borrower, which provides for an unsecured revolving credit facility of ¥60.0 billion (approximately $493 million as of March 31, 2022). Borrowings under the Paidy Credit Agreement are for use by Paidy for working capital, capital expenditures, and other permitted purposes. We are obligated to pay interest on loans under the Paidy Credit Agreement. Loans under the Paidy Credit Agreement bear interest at the Tokyo Interbank Offered Rate plus a margin (based on our public debt rating) ranging from 0.40 percent to 0.60 percent. The Paidy Credit Agreement will terminate and all amounts owed thereunder will be due and payable on February 8, 2027, unless the commitments are terminated earlier. The Paidy Credit Agreement contains customary representations, warranties, affirmative and negative covenants, including a financial covenant, events of default, and indemnification provisions in favor of the lenders. The negative covenants include restrictions regarding the incurrence of liens and subsidiary indebtedness, in each case subject to certain exceptions. The financial covenant requires us to meet a quarterly financial test with respect to a maximum consolidated leverage ratio. In March 2022, ¥32.8 billion (approximately $269 million) was drawn down under the Paidy Credit Agreement, which was recorded in long-term debt on our condensed consolidated balance sheet. Accordingly, at March 31, 2022, ¥27.2 billion (approximately $224 million) of borrowing capacity was available for the purposes permitted by the Paidy Credit Agreement, subject to customary conditions to borrowing. During the three months ended March 31, 2022, the total interest expense and fees we recorded related to the Paidy Credit Agreement were de minimis. Prior credit agreement In October 2021, we assumed a credit agreement through our acquisition of Paidy (the “Prior Credit Agreement”) which provided for a secured revolving credit facility of ¥22.8 billion (approximately $198 million at acquisition). As of December 31, 2021, ¥11.3 billion (approximately $98 million) was outstanding under the Prior Credit Agreement, which was recorded in long-term debt on our consolidated balance sheet. Accordingly, at December 31, 2021, ¥11.5 billion (approximately $100 million) of borrowing capacity was available for the purposes permitted by the Prior Credit Agreement, subject to customary conditions to borrowing. In the first quarter of 2022, we terminated the Prior Credit Agreement and repaid all outstanding borrowings. The total interest expense and fees we recorded related to the Prior Credit Agreement were de minimis for the three months ended March 31, 2022. FUTURE PRINCIPAL PAYMENTS As of March 31, 2022, the future principal payments associated with our term debt were as follows (in millions): Remaining 2022 $ 1,000 2023 1,000 2024 1,250 2025 1,000 2026 1,250 Thereafter 3,500 Total $ 9,000 Other than as provided above, there were no significant changes to the information disclosed in our 2021 Form 10-K. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES COMMITMENTS As of March 31, 2022 and December 31, 2021, approximately $4.4 billion and $4.1 billion, respectively, of unused credit was available to PayPal Credit account holders. Substantially all of our PayPal Credit account holders with unused credit are in the U.K. While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all of our PayPal Credit account holders will access their entire available credit at any given point in time. In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination based on, among other things, account usage and customer creditworthiness. LITIGATION AND REGULATORY MATTERS Overview We are involved in legal and regulatory proceedings on an ongoing basis. Many of these proceedings are in early stages and may seek an indeterminate amount of damages or penalties or may require us to change or adopt certain business practices. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements at that time. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) are not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a legal proceeding, we have disclosed that fact. In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. With respect to the matters disclosed in this Note 13, we are unable to estimate the possible loss or range of losses that could potentially result from the application of such non-monetary remedies. Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable and reasonably estimable were not material as of March 31, 2022. Except as otherwise noted for the proceedings described in this Note 13, we have concluded, based on currently available information, that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our recorded accruals are also not material. Determining legal reserves or possible losses from such matters involves judgment and may not reflect the full range of uncertainties and unpredictable outcomes. We may be exposed to losses in excess of the amount recorded, and such amounts could be material. If any of our estimates and assumptions change or prove to have been incorrect, it could have a material adverse effect on our business, financial position, results of operations, or cash flows. Regulatory proceedings We are required to comply with U.S. economic and trade sanctions administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). In March 2015, we reached a settlement with OFAC regarding possible violations arising from our sanctions compliance practices between 2009 and 2013, prior to the implementation of our real-time transaction scanning program. Subsequently, we have self-reported additional transactions that were inadvertently processed but subsequently identified as possible violations, and we have received new subpoenas from OFAC seeking additional information about certain of these transactions. Such self-reported transactions could result in claims or actions against us, including litigation, injunctions, damage awards, fines or penalties, or require us to change our business practices in a manner that could result in a material loss, require significant management time, result in the diversion of significant operational resources, or otherwise harm our business. PayPal Australia Pty Limited (“PPAU”) self-reported a potential violation to the Australian Transaction Reports and Analysis Centre (“AUSTRAC”) on May 22, 2019. This self-reported matter relates to PPAU incorrectly filing required international funds transfer instructions (“IFTIs”) over a period of time under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (“AML/CTF Act”). On September 23, 2019, PPAU received a notice from AUSTRAC requiring that PPAU appoint an external auditor (a partner of a firm which is not our independent auditor) to review certain aspects of PPAU’s compliance with its obligations under the AML/CTF Act. The external auditor was appointed on November 1, 2019. As required under the terms of AUSTRAC’s notice, as amended, PPAU issued to AUSTRAC the external auditor’s interim reports on December 31, 2019, March 13, 2020, May 6, 2020 and July 7, 2020 and a final report on August 31, 2020. AUSTRAC has notified PPAU that its enforcement team is investigating the matters reported upon by the external auditor in its August 31, 2020 final report. AUSTRAC continues to engage with PPAU regarding the transaction categories it considers reportable under the AML/CTF Act as IFTIs. PPAU is continuing to cooperate with AUSTRAC in all respects, including remediation activities, ongoing regular engagement with AUSTRAC, and responding to notices and requests for information and documents. We cannot estimate the potential impact, if any, on our business or financial statements at this time. In the event an adverse outcome arises from any associated enforcement proceeding or other further matter initiated by AUSTRAC, including in relation to AUSTRAC’s determination of reportable IFTIs, then this could result in enforceable undertakings, injunctions, damage awards, fines or penalties, or require us to change our business practices in a manner that could result in a material loss, require significant management time, result in the diversion of significant operational resources, or otherwise harm our business. We have received Civil Investigative Demands (“CIDs”) from the Consumer Financial Protection Bureau (“CFPB”) related to Venmo’s unauthorized funds transfers and collections processes, and related matters. The CIDs request the production of documents and answers to written questions. We are cooperating with the CFPB in connection with these CIDs. We have received a CID from the CFPB related to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services (the “CFPB PayPal Credit Matter”). The CID requests the production of documents, written reports, and answers to written questions. We are cooperating with the CFPB in connection with this CID. We are responding to subpoenas and requests for information received from the U.S. Securities and Exchange Commission (“SEC”) Enforcement Division relating to whether the interchange rates paid to the bank that issues debit cards bearing our licensed brands were consistent with Regulation II of the Board of Governors of the Federal Reserve System, and to the reporting of marketing fees earned from the PayPal-branded card programs (the “SEC Debit Card Program Matter”). We are cooperating with the SEC Enforcement Division in connection with this investigation. In February 2022, we received a CID from the Federal Trade Commission (“FTC”) related to PayPal’s practices relating to commercial customers that submit charges on behalf of other merchants or sellers, and related activities. The CID requests the production of documents and answers to written questions. We are cooperating with the FTC in connection with this CID. Legal proceedings On August 20, 2021, a putative securities class action captioned Kang v. PayPal Holdings, Inc., et al. , Case No. 21-cv-06468, was filed in the U.S. District Court for the Northern District of California (the “Securities Action”). The Securities Action asserts claims relating to our disclosure of the CFPB PayPal Credit Matter and the SEC Debit Card Program Matter in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021. The Securities Action purports to be brought on behalf of purchasers of the Company’s stock between February 9, 2017 and July 28, 2021 (the “Class Period”), and asserts claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company, its Chief Executive Officer, and Chief Financial Officer. The complaint alleges that certain public statements made by the Company during the Class Period were rendered materially false and misleading (which, allegedly, caused the Company’s stock to trade at artificially inflated prices) by the defendants’ failure to disclose that, among other things, PayPal’s business practices with respect to PayPal Credit and regarding interchange rates paid to its bank partner related to its bank-issued co-branded debit cards were non-compliant with applicable laws and/or regulations. The Securities Action seeks unspecified compensatory damages on behalf of the putative class members. On November 2, 2021, the court appointed a Lead Plaintiff, and on January 25, 2022, the Lead Plaintiff filed an amended complaint. The amended complaint alleges a class period between April 27, 2016 and July 28, 2021 (the “Amended Class Period”), and in addition to the Company, its Chief Executive Officer, and Chief Financial Officer, also names other Company executives as defendants. The amended complaint alleges that various statements made by the defendants during the Amended Class Period were rendered materially false and misleading, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by PayPal’s alleged violations of the 2015 consent order with the CFPB, federal consumer financial laws, and Regulation II. Defendants’ motion to dismiss the amended complaint was filed on April 18, 2022. Plaintiff's response to the motion to dismiss is due on June 2, 2022. On December 16, 2021 and January 19, 2022, two related putative shareholder derivative actions captioned Pang v. Daniel Schulman, et al. , Case No. 21-cv-09720, and Lalor v. Daniel Schulman, et al. , Case No. 22-cv-00370, respectively, were filed in the U.S. District Court for the Northern District of California (the “Derivative Actions”), purportedly on behalf of the Company. The Derivative Actions are based on the same alleged facts and circumstances as the Securities Action, and name certain of our officers, including our Chief Executive Officer and Chief Financial Officer, and members of our Board of Directors, as defendants. The Derivative Actions allege claims for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and violations of the Securities Exchange Act of 1934, and seek to recover damages on behalf of the Company. On February 1, 2022, the court entered an order consolidating the Derivative Actions and staying them until all motions to dismiss in the Securities Action are resolved. General matters Other third parties have from time to time claimed, and others may claim in the future, that we have infringed their intellectual property rights. We are subject to patent disputes and expect that we will increasingly be subject to additional patent infringement claims involving various aspects of our business as our products and services continue to expand in scope and complexity. Such claims may be brought directly or indirectly against our companies and/or against our customers (who may be entitled to contractual indemnification under their contracts with us), and we are subject to increased exposure to such claims as a result of our acquisitions, particularly in cases where we are introducing new products or services in connection with such acquisitions. We have in the past been forced to litigate such claims, and we believe that additional lawsuits alleging such claims will be filed against us. Intellectual property claims, whether meritorious or not, are time-consuming and costly to defend and resolve, could require expensive changes in our methods of doing business, or could require us to enter into costly royalty or licensing agreements on unfavorable terms or make substantial payments to settle claims or to satisfy damages awarded by courts. From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business, including suits by our customers (individually or as class actions) alleging, among other things, improper disclosure of our prices, rules, or policies, that our practices, prices, rules, policies, or customer/user agreements violate applicable law, or that we have acted unfairly and/or not acted in conformity with such prices, rules, policies, or agreements. In addition to these types of disputes and regulatory inquiries, our operations are also subject to regulatory and/or legal review and/or challenges that may reflect the increasing global regulatory focus to which the payments industry is subject and, when taken as a whole with other regulatory and legislative action, such actions could result in the imposition of costly new compliance burdens on our business and customers and may lead to increased costs and decreased transaction volume and revenue. Further, the number and significance of these disputes and inquiries are increasing as our business has grown and expanded in scale and scope, including the number of active accounts and payments transactions on our platform, the range and increasing complexity of the products and services that we offer, and our geographical operations. Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, settlement payments, damage awards (including statutory damages for certain causes of action in certain jurisdictions), fines, penalties, injunctive relief, or increased costs of doing business through adverse judgment or settlement, require us to change our business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources, or otherwise harm our business. INDEMNIFICATION PROVISIONS Our agreements with eBay governing our separation from eBay provide for specific indemnity and liability obligations for both eBay and us. Disputes between eBay and us have arisen and others may arise in the future, and an adverse outcome in such matters could materially and adversely impact our business, results of operations, and financial condition. In addition, the indemnity rights we have against eBay under the agreements may not be sufficient to protect us, and our indemnity obligations to eBay may be significant. In the ordinary course of business, we include indemnification provisions in certain of our agreements with parties with whom we have commercial relationships. Under these contracts, we generally indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with claims by any third party with respect to our domain names, trademarks, logos, and other branding elements to the extent that such marks are related to the subject agreement. We have provided an indemnity for other types of third-party claims, which may include indemnities related to intellectual property rights, confidentiality, willful misconduct, data privacy obligations, and certain breach of contract claims, among others. We have also provided an indemnity to our payments processors in the event of card association fines against the processor arising out of conduct by us or our customers. It is not possible to determine the maximum potential loss under these indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each particular situation. PayPal has participated in the U.S. Government’s Paycheck Protection Program administered by the U.S. Small Business Administration. Loans made under this program are funded by an independent chartered financial institution that we partner with. We receive a fee for providing services in connection with these loans and retain operational risk related to those activities. We have agreed, under certain circumstances, to indemnify the chartered financial institution and its assignee of a portion of these loans in connection with the services provided for loans made under this program. To date, no significant costs have been incurred, either individually or collectively, in connection with our indemnification provisions. OFF-BALANCE SHEET ARRANGEMENTS As of March 31, 2022 and December 31, 2021, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures, or capital resources. PROTECTION PROGRAMS We provide merchants and consumers with protection programs for certain transactions completed on our payments platform. These programs are intended to protect both merchants and consumers from loss primarily due to fraud and counterparty performance. Our buyer protection program provides protection to consumers for qualifying purchases by reimbursing the consumer for the full amount of the purchase if a purchased item does not arrive or does not match the seller’s description. Our seller protection programs provide protection to merchants against claims that a transaction was not authorized by the buyer or claims that an item was not received by covering the seller for the full amount of the payment on eligible sales. Additionally, in some instances we provide protection for cryptocurrencies held in PayPal accounts in case of loss directly resulting from service provider insolvency or in the event the service provider’s private keys are compromised. These protection programs are considered assurance-type warranties under applicable accounting standards for which we estimate and record associated costs in transaction and credit losses during the period the payment transaction is completed. At March 31, 2022 and December 31, 2021, the allowance for transaction losses was $115 million and $121 million, respectively. The allowance for negative customer balances was $204 million and $234 million at March 31, 2022 and December 31, 2021, respectively. The following table shows changes in the allowance for transaction losses and negative customer balances related to our protection programs for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (in millions) Beginning balance $ 355 $ 414 Provision 322 281 Realized losses (390) (347) Recoveries 32 20 Ending balance $ 319 $ 368 |
STOCK REPURCHASE PROGRAMS
STOCK REPURCHASE PROGRAMS | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAMS | STOCK REPURCHASE PROGRAMSDuring the three months ended March 31, 2022, we repurchased approximately 11 million shares of our common stock for approximately $1.5 billion at an average cost of $133.93. These shares were purchased in the open market under our stock repurchase program authorized in July 2018. As of March 31, 2022, a total of approximately $3.6 billion remained available for future repurchases of our common stock under our July 2018 stock repurchase program. |
STOCK-BASED PLANS
STOCK-BASED PLANS | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED PLANS | STOCK-BASED PLANS STOCK-BASED COMPENSATION EXPENSE Stock-based compensation expense for our equity incentive plans are measured based on their estimated fair value at the time of grant, and recognized over the award’s vesting period. The impact on our results of operations of recording stock-based compensation expense under our equity incentive plans for the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended March 31, 2022 2021 (In millions) Customer support and operations $ 73 $ 72 Sales and marketing 45 48 Technology and development 136 139 General and administrative 188 119 Total stock-based compensation expense $ 442 $ 378 Capitalized as part of internal use software and website development costs $ 16 $ 16 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESOur effective tax rate for the three months ended March 31, 2022 and 2021 was 19% and (26)%, respectively. The difference between our effective tax rate and the U.S. federal statutory rate of 21% in both periods was primarily the result of foreign income taxed at different rates, and for the three months ended March 31, 2021, discrete tax adjustments including tax benefits related to stock-based compensation. |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER CHARGES | RESTRUCTURING AND OTHER CHARGES During the first quarter of 2022, management initiated a strategic reduction of the existing global workforce intended to streamline and optimize our global operations to enhance operating efficiency. As part of this effort, we are focusing on the reduction of redundant operations and simplifying our organizational structure. The associated restructuring charges during the three months ended March 31, 2022 were $20 million. We primarily incurred employee severance and benefits costs, as well as other associated consulting costs. Additionally, we are continuing to review our facility needs due to our new work models. The strategic actions and cash payments associated with this plan are expected to be substantially completed by the fourth quarter of 2022. The following table summarizes the restructuring reserve activity during the three months ended March 31, 2022: Employee Severance and Benefits and Other Associated Costs (In millions) Accrued liability as of January 1, 2022 $ 5 Charges 20 Payments (3) Accrued liability as of March 31, 2022 $ 22 During the first quarter of 2020, management approved a strategic reduction of the existing global workforce as part of a multiphase process to reorganize our workforce concurrently with the redesign of our operating structure, which spanned multiple quarters. The associated restructuring charges during the three months ended March 31, 2021 were $32 million. We primarily incurred employee severance and benefits costs, as well as other associated consulting costs under the 2020 strategic reduction, which was substantially completed in 2021. Additionally, in the three months ended March 31, 2022 and 2021, we incurred asset impairment charges of $16 million and $26 million, respectively, due to the exiting of certain leased properties which resulted in a reduction of certain ROU lease assets and related leasehold improvements. See “Note 6—Leases” for additional information. |
OVERVIEW AND SUMMARY OF SIGNI_2
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation and principles of consolidation The accompanying condensed consolidated financial statements include the financial statements of PayPal and our wholly- and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Investments in entities where we have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investee’s results of operations is included in other income (expense), net on our condensed consolidated statements of income. Investments in entities where we do not have the ability to exercise significant influence over the investee are accounted for at fair value or cost minus impairment, if any, adjusted for changes resulting from observable price changes, which are included in other income (expense), net on our condensed consolidated statements of income. Our investment balance is included in long-term investments on our condensed consolidated balance sheets. We determine at the inception of each investment, and re-evaluate if certain events occur, whether an entity in which we have made an investment is considered a variable interest entity (“VIE”). If we determine an investment is in a VIE, we then assess if we are the primary beneficiary, which would require consolidation. As of December 31, 2021, we had consolidated two VIEs that provided financing for and held loans receivable of Paidy, Inc. (“Paidy”). We were the primary beneficiary of the VIEs as we performed the servicing and collection for the loans receivable which were the activities that most significantly impacted the VIE’s economic performance and we had the obligation to absorb the losses and/or the right to receive the benefits of the VIE that could potentially be significant to these entities. The financial results of our consolidated VIEs were included in the condensed consolidated financial statements. As of December 31, 2021, the carrying value of the assets and liabilities of our consolidated VIEs was included as short-term investments of $87 million, loans and interest receivable, net of $21 million, and long-term debt of $98 million. Cash of $87 million, included in short-term investments, was restricted to settle the debt obligations. As of March 31, 2022, we have terminated Paidy’s legacy debt structure with a new credit agreement executed in February 2022. As a result, we no longer have any consolidated VIEs as of March 31, 2022. See “Note 12—Debt” for additional information. As of March 31, 2022 and December 31, 2021, the carrying value of our investments that are in nonconsolidated VIEs was $86 million and $74 million, respectively, and is included as non-marketable equity securities applying the equity method of accounting in long-term investments on our condensed consolidated balance sheets. Our maximum exposure to loss related to our nonconsolidated VIEs, which represents funded commitments and any future funding commitments, was $230 million and $205 million as of March 31, 2022 and December 31, 2021, respectively. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”) filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 3, 2022. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the condensed consolidated financial statements for all interim periods presented. Certain amounts for prior periods have been reclassified to conform to the financial statement presentation as of and for the three months ended March 31, 2022. |
Principles of consolidation | Basis of presentation and principles of consolidation The accompanying condensed consolidated financial statements include the financial statements of PayPal and our wholly- and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Investments in entities where we have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting. For such investments, our share of the investee’s results of operations is included in other income (expense), net on our condensed consolidated statements of income. Investments in entities where we do not have the ability to exercise significant influence over the investee are accounted for at fair value or cost minus impairment, if any, adjusted for changes resulting from observable price changes, which are included in other income (expense), net on our condensed consolidated statements of income. Our investment balance is included in long-term investments on our condensed consolidated balance sheets. We determine at the inception of each investment, and re-evaluate if certain events occur, whether an entity in which we have made an investment is considered a variable interest entity (“VIE”). If we determine an investment is in a VIE, we then assess if we are the primary beneficiary, which would require consolidation. As of December 31, 2021, we had consolidated two VIEs that provided financing for and held loans receivable of Paidy, Inc. (“Paidy”). We were the primary beneficiary of the VIEs as we performed the servicing and collection for the loans receivable which were the activities that most significantly impacted the VIE’s economic performance and we had the obligation to absorb the losses and/or the right to receive the benefits of the VIE that could potentially be significant to these entities. The financial results of our consolidated VIEs were included in the condensed consolidated financial statements. As of December 31, 2021, the carrying value of the assets and liabilities of our consolidated VIEs was included as short-term investments of $87 million, loans and interest receivable, net of $21 million, and long-term debt of $98 million. Cash of $87 million, included in short-term investments, was restricted to settle the debt obligations. As of March 31, 2022, we have terminated Paidy’s legacy debt structure with a new credit agreement executed in February 2022. As a result, we no longer have any consolidated VIEs as of March 31, 2022. See “Note 12—Debt” for additional information. As of March 31, 2022 and December 31, 2021, the carrying value of our investments that are in nonconsolidated VIEs was $86 million and $74 million, respectively, and is included as non-marketable equity securities applying the equity method of accounting in long-term investments on our condensed consolidated balance sheets. Our maximum exposure to loss related to our nonconsolidated VIEs, which represents funded commitments and any future funding commitments, was $230 million and $205 million as of March 31, 2022 and December 31, 2021, respectively. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”) filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 3, 2022. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the condensed consolidated financial statements for all interim periods presented. Certain amounts for prior periods have been reclassified to conform to the financial statement presentation as of and for the three months ended March 31, 2022. |
Use of estimates | Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to provisions for transaction and credit losses, income taxes, loss contingencies, revenue recognition, and the valuation of goodwill and intangible assets. We base our estimates on historical experience and various other assumptions which we believe to be reasonable under the circumstances. These estimates may change as new events occur, and as additional information surrounding the continued impact of the novel coronavirus (“COVID-19”) pandemic becomes available. Actual results could differ from these estimates and any such differences may be material to our financial statements. |
Recent accounting guidance | Recent accounting guidance In March 2022, the SEC released Staff Accounting Bulletin No. 121 (“SAB 121”), which provides interpretive guidance for an entity to consider when it operates a platform that allows its users to transact in crypto-assets and that engages in activities in which it has obligations to safeguard customers’ crypto-assets, whether directly or through an agent or another third party acting on its behalf. The interpretive guidance requires a reporting entity to record a liability to reflect its obligation to safeguard the crypto-assets held for its platform users with a corresponding asset, regardless of its assessment as to who controls the crypto-asset. The crypto-asset safeguarding liability and related asset will be measured at the fair value of the crypto-assets held for the platform users with the measurement of the safeguarding asset taking into account any potential loss events. SAB 121 also requires disclosures related to the entity’s safeguarding obligations for crypto-assets held for its platform users. SEC registrants are expected to comply with SAB 121 in the first interim or annual financial statements ending after June 15, 2022 with retrospective application as of the beginning of the fiscal year. We are evaluating the approach to, and impact of, adopting this new accounting guidance on our condensed consolidated financial statements. In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures (Topic 326): Financial Instruments – Credit Losses . This amended guidance will eliminate the accounting designation of a loan modification as a TDR, including eliminating the measurement guidance for TDRs. The amendments also enhance existing disclosure requirements and introduce new requirements related to modifications of receivables made to borrowers experiencing financial difficulty. Additionally, this guidance requires entities to disclose gross write-offs by year of origination for financing receivables, such as loans and interest receivable. The amended guidance is effective for fiscal years beginning after December 15, 2022 and is required to be applied prospectively, except for the recognition and measurement of TDRs which can be applied on a modified retrospective basis. We are evaluating the approach to, and impact of, adopting this new accounting guidance on our condensed consolidated financial statements. In 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This amended guidance provides transition relief for the accounting impact of reference rate reform. For a limited period, this guidance provides optional expedients and exceptions for applying GAAP to certain contract modifications, hedging relationships, and other transactions affected by a reference rate expected to be discontinued due to reference rate reform. The amended guidance is effective through December 31, 2022. Our exposure to London Interbank Offered Rate (“LIBOR”) is primarily limited to an insignificant portion of our available-for-sale debt securities. Accordingly, we do not expect reference rate reform to have a material impact on our condensed consolidated financial statements. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table presents our revenue disaggregated by primary geographical market and category: Three Months Ended March 31, 2022 2021 (In millions) Primary geographical markets U.S. $ 3,671 $ 3,063 United Kingdom (“U.K.”) 526 625 Other countries (1) 2,286 2,345 Total net revenues (2) $ 6,483 $ 6,033 Revenue category Transaction revenues $ 5,998 $ 5,621 Revenues from other value added services 485 412 Total net revenues (2) $ 6,483 $ 6,033 (1) No single country included in the other countries category generated more than 10% of total net revenues. (2) Total net revenues include $187 million and $59 million for the three months ended March 31, 2022 and 2021, respectively, which do not represent revenues recognized in the scope of Accounting Standards Codification Topic 606, Revenue from contracts with customers . Such revenues relate to interest, fees, and gains earned on loans and interest receivable, as well as hedging gains or losses, and interest earned on certain assets underlying customer balances. |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The following table sets forth the computation of basic and diluted net income per share for the periods indicated: Three Months Ended March 31, 2022 2021 (In millions, except per share amounts) Numerator: Net income $ 509 $ 1,097 Denominator: Weighted average shares of common stock - basic 1,163 1,173 Dilutive effect of equity incentive awards 9 17 Weighted average shares of common stock - diluted 1,172 1,190 Net income per share: Basic $ 0.44 $ 0.94 Diluted $ 0.43 $ 0.92 Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive 6 2 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed | The following table summarizes the preliminary allocation of the purchase consideration to the fair value of the assets acquired and liabilities assumed: (In millions) Goodwill $ 1,918 Customer lists and user base 512 Marketing related 83 Developed technology 47 Total intangibles $ 642 Loans and interest receivable, net 197 Cash and cash equivalents 101 Other net assets 87 Short-term and long-term debt (188) Deferred tax liabilities, net (186) Total purchase price $ 2,571 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill balances and adjustments | The following table presents goodwill balances and adjustments to those balances during the three months ended March 31, 2022: December 31, 2021 Goodwill Acquired Adjustments March 31, 2022 (In millions) Total goodwill $ 11,454 $ — $ (84) $ 11,370 |
Components of identifiable intangible assets | The components of identifiable intangible assets were as follows: March 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Useful Life (Years) (In millions, except years) Intangible assets: Customer lists and user base $ 1,704 $ (967) $ 737 7 $ 1,726 $ (919) $ 807 7 Marketing related 400 (321) 79 5 405 (315) 90 5 Developed technology 1,107 (879) 228 3 1,109 (822) 287 3 All other 455 (314) 141 7 454 (306) 148 7 Intangible assets, net $ 3,666 $ (2,481) $ 1,185 $ 3,694 $ (2,362) $ 1,332 |
Expected future intangible asset amortization | Expected future intangible asset amortization as of March 31, 2022 was as follows (in millions): Fiscal years: Remaining 2022 $ 348 2023 226 2024 207 2025 169 2026 111 Thereafter 124 Total $ 1,185 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of components of lease expense, supplemental cash and noncash and balance sheet information | The components of lease expense were as follows: Three Months Ended March 31, 2022 2021 (In millions) Lease expense Operating lease expense $ 42 $ 45 Sublease income (2) (2) Lease expense, net $ 40 $ 43 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2022 2021 (In millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 41 $ 42 Right-of-use (“ROU”) lease assets obtained in exchange for operating lease liabilities $ 73 $ 1 Supplemental balance sheet information related to leases was as follows: March 31, 2022 December 31, 2021 (In millions, except weighted-average figures) Operating ROU lease assets $ 693 $ 659 Other current operating lease liabilities 155 142 Operating lease liabilities 651 620 Total operating lease liabilities $ 806 $ 762 Weighted-average remaining lease term — operating leases 5.9 years 6.1 years Weighted-average discount rate — operating leases 3 % 3 % |
Schedule of future minimum operating lease payments | Future minimum lease payments for our operating leases as of March 31, 2022 were as follows: Operating Leases Fiscal years: (In millions) Remaining 2022 $ 131 2023 175 2024 156 2025 116 2026 98 Thereafter 202 Total $ 878 Less: present value discount (72) Lease liability $ 806 |
OTHER FINANCIAL STATEMENT DET_2
OTHER FINANCIAL STATEMENT DETAILS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended March 31, 2022: Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Losses on Investments Foreign Currency Translation Adjustment (“CTA”) Net Investment Hedges CTA Gains Estimated Tax (Expense) Benefit Total (In millions) Beginning balance $ 199 $ (87) $ (270) $ 24 $ (2) $ (136) Other comprehensive income (loss) before reclassifications 44 (293) (95) 21 62 (261) Less: Amount of gain reclassified from accumulated other comprehensive income (“AOCI”) 47 — — — — 47 Net current period other comprehensive income (loss) (3) (293) (95) 21 62 (308) Ending balance $ 196 $ (380) $ (365) $ 45 $ 60 $ (444) The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended March 31, 2021: Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Investments Foreign CTA Net Investment Hedges CTA Gains Estimated Tax Benefit Total (In millions) Beginning balance $ (323) $ 11 $ (198) $ 24 $ 2 $ (484) Other comprehensive income (loss) before reclassifications 139 (15) (53) — 1 72 Less: Amount of loss reclassified from AOCI (59) — — — — (59) Net current period other comprehensive income (loss) 198 (15) (53) — 1 131 Ending balance $ (125) $ (4) $ (251) $ 24 $ 3 $ (353) |
Schedule of reclassifications out of AOCI | The following table provides details about reclassifications out of AOCI for the periods presented below: Details about AOCI Components Amount of Gains (Losses) Reclassified from AOCI Affected Line Item in the Statement of Income Three Months Ended March 31, 2022 2021 (In millions) Gains (losses) on cash flow hedges — foreign exchange contracts $ 47 $ (59) Net revenues Unrealized gains (losses) on investments — — Other income (expense), net $ 47 $ (59) Income before income taxes — — Income tax expense Total reclassifications for the period $ 47 $ (59) Net income |
Schedule of other income (expense), net | The following table reconciles the components of other income (expense), net for the periods presented below: Three Months Ended March 31, 2022 2021 (In millions) Interest income $ 15 $ 15 Interest expense (59) (58) Net gains (losses) on strategic investments 14 (120) Other (52) (7) Other income (expense), net $ (82) $ (170) |
FUNDS RECEIVABLE AND CUSTOMER_2
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of assets underlying funds receivable and customer accounts, short-term and long-term investments | The following table summarizes the assets underlying our funds receivable and customer accounts, short-term investments, and long-term investments as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 (In millions) Funds receivable and customer accounts: Cash and cash equivalents $ 12,955 $ 12,723 Time deposits 122 334 Available-for-sale debt securities 18,916 18,336 Funds receivable 5,053 4,748 Total funds receivable and customer accounts $ 37,046 $ 36,141 Short-term investments: Time deposits $ 302 $ 590 Available-for-sale debt securities 2,775 3,604 Restricted cash 27 109 Total short-term investments $ 3,104 $ 4,303 Long-term investments: Time deposits $ 35 $ 45 Available-for-sale debt securities 3,921 3,545 Strategic investments 3,189 3,207 Total long-term investments $ 7,145 $ 6,797 |
Schedule of estimated fair value of available-for-sale debt securities | As of March 31, 2022 and December 31, 2021, the estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments was as follows: March 31, 2022 (1) Gross Gross Gross Estimated (In millions) Funds receivable and customer accounts: U.S. government and agency securities $ 9,592 $ — $ (146) $ 9,446 Foreign government and agency securities 2,005 — (37) 1,968 Corporate debt securities 4,665 — (62) 4,603 Asset-backed securities 1,170 — (14) 1,156 Municipal securities 60 — (1) 59 Short-term investments: U.S. government and agency securities 405 — — 405 Foreign government and agency securities 371 — (2) 369 Corporate debt securities 1,513 — (3) 1,510 Asset-backed securities 482 — (3) 479 Long-term investments: U.S. government and agency securities 568 — (25) 543 Foreign government and agency securities 719 — (24) 695 Corporate debt securities 1,425 — (49) 1,376 Asset-backed securities 1,321 — (14) 1,307 Total available-for-sale debt securities (2) $ 24,296 $ — $ (380) $ 23,916 (1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position. (2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9 — Fair Value Measurement of Assets and Liabilities.” December 31, 2021 (1) Gross Gross Gross Estimated (In millions) Funds receivable and customer accounts: U.S. government and agency securities $ 8,655 $ — $ (31) $ 8,624 Foreign government and agency securities 1,923 — (9) 1,914 Corporate debt securities 3,402 — (15) 3,387 Asset-backed securities 1,552 — (3) 1,549 Municipal securities 535 — — 535 Short-term investments: U.S. government and agency securities 537 — — 537 Foreign government and agency securities 505 — (1) 504 Corporate debt securities 2,273 — — 2,273 Asset-backed securities 278 — (1) 277 Long-term investments: U.S. government and agency securities 568 — (6) 562 Foreign government and agency securities 752 — (6) 746 Corporate debt securities 1,435 — (11) 1,424 Asset-backed securities 817 — (4) 813 Total available-for-sale debt securities (2) $ 23,232 $ — $ (87) $ 23,145 (1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position. (2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9 — Fair Value Measurement of Assets and Liabilities.” |
Schedule of gross unrealized losses and estimated fair value of available-for-sale debt securities in a continuous loss position | As of March 31, 2022 and December 31, 2021, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses has not been deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows: March 31, 2022 (1) Less than 12 months 12 months or longer Total Fair Value Gross Fair Value Gross Fair Value Gross (In millions) Funds receivable and customer accounts: U.S. government and agency securities $ 7,857 $ (131) $ 385 $ (15) $ 8,242 $ (146) Foreign government and agency securities 1,777 (33) 151 (4) 1,928 (37) Corporate debt securities 1,741 (62) — — 1,741 (62) Asset-backed securities 1,130 (14) — — 1,130 (14) Municipal securities 49 (1) — — 49 (1) Short-term investments: U.S. government and agency securities 231 — — — 231 — Foreign government and agency securities 359 (2) 10 — 369 (2) Corporate debt securities 380 (3) — — 380 (3) Asset-backed securities 428 (3) — — 428 (3) Long-term investments: U.S. government and agency securities 543 (25) — — 543 (25) Foreign government and agency securities 555 (18) 139 (6) 694 (24) Corporate debt securities 1,196 (45) 171 (4) 1,367 (49) Asset-backed securities 959 (14) — — 959 (14) Total available-for-sale debt securities $ 17,205 $ (351) $ 856 $ (29) $ 18,061 $ (380) (1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position. December 31, 2021 (1) Less than 12 months 12 months or longer Total Fair Value Gross Fair Value Gross Fair Value Gross (In millions) Funds receivable and customer accounts: U.S. government and agency securities $ 8,124 $ (31) $ — $ — $ 8,124 $ (31) Foreign government and agency securities 1,778 (9) 20 — 1,798 (9) Corporate debt securities 1,841 (15) — — 1,841 (15) Asset-backed securities 1,302 (3) — — 1,302 (3) Municipal securities 50 — — — 50 — Short-term investments: U.S. government and agency securities 440 — — — 440 — Foreign government and agency securities 498 (1) — — 498 (1) Corporate debt securities 323 — — — 323 — Asset-backed securities 273 (1) — — 273 (1) Long-term investments: U.S. government and agency securities 562 (6) — — 562 (6) Foreign government and agency securities 746 (6) — — 746 (6) Corporate debt securities 1,345 (11) — — 1,345 (11) Asset-backed securities 707 (4) — — 707 (4) Total available-for-sale debt securities $ 17,989 $ (87) $ 20 $ — $ 18,009 $ (87) (1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position. |
The estimated fair values of investments classified as available for sale included within funds receivable and customer accounts by date of contractual maturity | Our available-for-sale debt securities included within funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows: March 31, 2022 Amortized Cost Fair Value (In millions) One year or less $ 10,306 $ 10,273 After one year through five years 12,065 11,731 After five years through ten years 1,834 1,822 After ten years 91 90 Total $ 24,296 $ 23,916 |
Schedule of adjustments to the carrying value of equity investments and summary of cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative | The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three months ended March 31, 2022 and 2021 were as follows: Three Months Ended March 31, 2022 2021 (In millions) Carrying amount, beginning of period $ 1,268 $ 779 Adjustments related to non-marketable equity securities: Net additions (1) 4 10 Gross unrealized gains 197 12 Carrying amount, end of period $ 1,469 $ 801 (1) Net additions include purchases, reductions due to sales of securities, and reclassifications when Measurement Alternative is subsequently elected or no longer applies. The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative for investments held at March 31, 2022 and December 31, 2021, respectively: March 31, 2022 December 31, 2021 (In millions) Cumulative gross unrealized gains $ 911 $ 733 Cumulative gross unrealized losses and impairments $ (27) $ (27) |
Schedule of unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method | The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at March 31, 2022 and 2021, respectively: Three Months Ended March 31, 2022 2021 (In millions) Net unrealized losses $ (36) $ (149) |
FAIR VALUE MEASUREMENT OF ASS_2
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of financial assets and liabilities measured at fair value on a recurring basis | The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021: March 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other (In millions) Assets: Cash and cash equivalents (1) $ 480 $ — $ 480 Short-term investments (2) : U.S. government and agency securities 405 — 405 Foreign government and agency securities 381 — 381 Corporate debt securities 1,510 — 1,510 Asset-backed securities 479 — 479 Total short-term investments 2,775 — 2,775 Funds receivable and customer accounts (3) : Cash and cash equivalents 362 — 362 U.S. government and agency securities 9,446 — 9,446 Foreign government and agency securities 3,461 — 3,461 Corporate debt securities 4,794 — 4,794 Asset-backed securities 1,156 — 1,156 Municipal securities 59 — 59 Total funds receivable and customer accounts 19,278 — 19,278 Derivatives 351 — 351 Long-term investments (2),(4) : U.S. government and agency securities 543 — 543 Foreign government and agency securities 695 — 695 Corporate debt securities 1,376 — 1,376 Asset-backed securities 1,307 — 1,307 Marketable equity securities 1,628 1,628 — Total long-term investments 5,549 1,628 3,921 Total financial assets $ 28,433 $ 1,628 $ 26,805 Liabilities: Derivatives $ 134 $ — $ 134 (1) Excludes cash of $4.4 billion not measured and recorded at fair value. (2) Excludes restricted cash of $27 million and time deposits of $337 million not measured and recorded at fair value. (3) Excludes cash, time deposits, and funds receivable of $17.8 billion underlying funds receivable and customer accounts not measured and recorded at fair value. (4) Excludes non-marketable equity securities of $1.6 billion measured using the Measurement Alternative or equity method accounting. December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) (In millions) Assets: Cash and cash equivalents (1) $ 400 $ — $ 400 Short-term investments (2) : U.S. government and agency securities 537 — 537 Foreign government and agency securities 517 — 517 Corporate debt securities 2,273 — 2,273 Asset-backed securities 277 — 277 Total short-term investments 3,604 — 3,604 Funds receivable and customer accounts (3) : Cash and cash equivalents 622 — 622 U.S. government and agency securities 8,624 — 8,624 Foreign government and agency securities 4,083 — 4,083 Corporate debt securities 3,545 — 3,545 Asset-backed securities 1,549 — 1,549 Municipal securities 535 — 535 Total funds receivable and customer accounts 18,958 — 18,958 Derivatives 304 — 304 Long-term investments (2), (4) : U.S. government and agency securities 562 — 562 Foreign government and agency securities 746 — 746 Corporate debt securities 1,424 — 1,424 Asset-backed securities 813 — 813 Marketable equity securities 1,860 1,860 — Total long-term investments 5,405 1,860 3,545 Total financial assets $ 28,671 $ 1,860 $ 26,811 Liabilities: Derivatives $ 130 $ — $ 130 (1) Excludes cash of $4.8 billion not measured and recorded at fair value. (2) Excludes restricted cash of $109 million and time deposits of $635 million not measured and recorded at fair value. (3) Excludes cash, time deposits, and funds receivable of $17.2 billion underlying funds receivable and customer accounts not measured and recorded at fair value. (4) Excludes non-marketable equity securities of $1.3 billion measured using the Measurement Alternative or equity method accounting. |
Summary of investments under the fair value option | The following table summarizes the estimated fair value of our available-for-sale debt securities under the fair value option as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 (In millions) Funds receivable and customer accounts $ 1,684 $ 2,327 Short-term investments $ 12 $ 13 The following table summarizes the gains (losses) from fair value changes recognized in other income (expense), net related to the available-for-sale debt securities under the fair value option for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (In millions) Funds receivable and customer accounts $ (34) $ (67) Short-term investments $ — $ (11) |
Summary of financial assets measured at fair value on a non-recurring basis | The following tables summarize our assets and liabilities held as of March 31, 2022 and December 31, 2021 for which a non-recurring fair value measurement was recorded during the three months ended March 31, 2022 and the year ended December 31, 2021, respectively: March 31, Significant Other Observable Inputs (Level 2) (In millions) Non-marketable equity investments measured using the Measurement Alternative (1) $ 636 $ 636 Other assets (2) 24 24 Total $ 660 $ 660 (1) Excludes non-marketable equity investments of $833 million accounted for under the Measurement Alternative for which no observable price changes occurred during the three months ended March 31, 2022. (2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the three months ended March 31, 2022. See “Note 6—Leases” for additional information. December 31, 2021 Significant Other Observable Inputs (Level 2) (In millions) Non-marketable equity investments measured using the Measurement Alternative (1) $ 611 $ 611 Other assets (2) 86 86 Total $ 697 $ 697 (1) Excludes non-marketable equity investments of $657 million accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2021. (2) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the year ended December 31, 2021. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of outstanding derivative instruments | The fair value of our outstanding derivative instruments as of March 31, 2022 and December 31, 2021 was as follows: Balance Sheet Location March 31, 2022 December 31, 2021 (In millions) Derivative Assets: Foreign currency exchange contracts designated as hedging instruments Other current assets $ 220 $ 205 Foreign currency exchange contracts designated as hedging instruments Other assets (non-current) 45 21 Foreign currency exchange contracts not designated as hedging instruments Other current assets 86 78 Total derivative assets $ 351 $ 304 Derivative Liabilities: Foreign currency exchange contracts designated as hedging instruments Other current liabilities $ 35 $ 27 Foreign currency exchange contracts designated as hedging instruments Other long-term liabilities 5 — Foreign currency exchange contracts not designated as hedging instruments Other current liabilities 94 103 Total derivative liabilities $ 134 $ 130 |
Schedule of offsetting assets | The following table provides the collateral posted and received: March 31, 2022 December 31, 2021 (In millions) Cash collateral posted (1) $ 6 $ 5 Cash collateral received (2) $ 235 $ 209 (1) Right to reclaim cash collateral related to our derivative liabilities recognized in other current assets on our condensed consolidated balance sheets. (2) Obligation to return counterparty cash collateral related to our derivative assets recognized in other current liabilities on our condensed consolidated balance sheets. |
Schedule of offsetting liabilities | The following table provides the collateral posted and received: March 31, 2022 December 31, 2021 (In millions) Cash collateral posted (1) $ 6 $ 5 Cash collateral received (2) $ 235 $ 209 (1) Right to reclaim cash collateral related to our derivative liabilities recognized in other current assets on our condensed consolidated balance sheets. (2) Obligation to return counterparty cash collateral related to our derivative assets recognized in other current liabilities on our condensed consolidated balance sheets. |
Gains or losses related to derivative instruments designated as hedging instruments | The following table provides the location in the condensed consolidated statements of income and amount of recognized gains or losses related to our derivative instruments: Three Months Ended March 31, 2022 2021 (In millions) Net revenues Other income (expense), net Net revenues Other income (expense), net Total amounts presented in the condensed consolidated statements of income in which the effects of cash flow hedges and net investment hedges are recorded $ 6,483 $ (82) $ 6,033 $ (170) Gains (losses) on derivatives in cash flow hedging relationship: Amount of gains (losses) on foreign exchange contracts reclassified from AOCI 47 — (59) — Gains on derivatives in net investment hedging relationship: Amount of gains on foreign exchange contracts excluded from the assessment of effectiveness — 9 — — (Losses) gains on derivatives not designated as hedging instruments: Amount of (losses) gains on foreign exchange contracts — (39) — 41 Total gains (losses) $ 47 $ (30) $ (59) $ 41 The following table provides the amount of pre-tax unrealized gains or losses included in the assessment of hedge effectiveness related to our derivative instruments designated as hedging instruments that are recognized in other comprehensive income: Three Months Ended March 31, 2022 2021 (In millions) Unrealized gains on foreign exchange contracts designated as cash flow hedges $ 44 $ 139 Unrealized gains on foreign exchange contracts designated as net investment hedges 21 — Total unrealized gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income $ 65 $ 139 |
Recognized gains or losses related to derivative instruments not designated as hedging instruments | The following table provides the location in the condensed consolidated statements of income and amount of recognized gains or losses related to our derivative instruments: Three Months Ended March 31, 2022 2021 (In millions) Net revenues Other income (expense), net Net revenues Other income (expense), net Total amounts presented in the condensed consolidated statements of income in which the effects of cash flow hedges and net investment hedges are recorded $ 6,483 $ (82) $ 6,033 $ (170) Gains (losses) on derivatives in cash flow hedging relationship: Amount of gains (losses) on foreign exchange contracts reclassified from AOCI 47 — (59) — Gains on derivatives in net investment hedging relationship: Amount of gains on foreign exchange contracts excluded from the assessment of effectiveness — 9 — — (Losses) gains on derivatives not designated as hedging instruments: Amount of (losses) gains on foreign exchange contracts — (39) — 41 Total gains (losses) $ 47 $ (30) $ (59) $ 41 |
Schedule of notional amounts of outstanding derivatives | The following table provides the notional amounts of our outstanding derivatives: March 31, 2022 December 31, 2021 (In millions) Foreign exchange contracts designated as hedging instruments $ 7,205 $ 5,349 Foreign exchange contracts not designated as hedging instruments 12,334 20,414 Total $ 19,539 $ 25,763 |
LOANS AND INTEREST RECEIVABLE (
LOANS AND INTEREST RECEIVABLE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Delinquency status of the principal amount of loans and interest receivable | The following tables present the delinquency status of consumer loans and interest receivable by year of origination. The amounts are based on the number of days past the billing date for revolving loans or contractual repayment date for installment loans. The “current” category represents balances that are within 29 days of the billing date or contractual repayment date, as applicable. March 31, 2022 (In millions, except percentages) Installment Loans Amortized Cost Basis Revolving Loans 2022 2021 2020 2019 2018 Total Percent Current $ 1,744 $ 1,773 $ 470 $ — $ — $ — $ 3,987 96.9% 30 - 59 Days 21 13 6 — — — 40 1.0% 60 - 89 Days 13 1 15 — — — 29 0.7% 90 - 179 Days 26 — 33 — — — 59 1.4% Total (1) $ 1,804 $ 1,787 $ 524 $ — $ — $ — $ 4,115 100% (1) Excludes receivables from other consumer credit products of $39 million at March 31, 2022. December 31, 2021 (In millions, except percentages) Installment Loans Amortized Cost Basis Revolving Loans 2021 2020 2019 2018 2017 Total Percent Current $ 1,790 $ 1,939 $ 3 $ — $ — $ — $ 3,732 97.0% 30 - 59 Days 18 16 — — — — 34 0.9% 60 - 89 Days 12 13 — — — — 25 0.6% 90 - 179 Days 27 28 1 — — — 56 1.5% Total (1) $ 1,847 $ 1,996 $ 4 $ — $ — $ — $ 3,847 100% (1) Excludes receivables from other consumer credit products of $44 million at December 31, 2021. The following tables present the delinquency status of the merchant loans, advances, and interest and fees receivable by year of origination. The amounts are based on the number of days past the expected or contractual repayment date for amounts outstanding. The “current” category represents balances that are within 29 days of the expected repayment date or contractual repayment date, as applicable. March 31, 2022 (In millions, except percentages) 2022 2021 2020 2019 2018 Total Percent Current $ 715 $ 531 $ 105 $ 77 $ 3 $ 1,431 92.6% 30 - 59 Days 5 23 9 9 — 46 3.0% 60 - 89 Days 1 11 5 6 — 23 1.5% 90 - 179 Days — 17 9 7 1 34 2.2% 180+ Days — 1 4 5 1 11 0.7% Total $ 721 $ 583 $ 132 $ 104 $ 5 $ 1,545 100% December 31, 2021 (In millions, except percentages) 2021 2020 2019 2018 2017 Total Percent Current $ 1,100 $ 129 $ 95 $ 3 $ — $ 1,327 91.8% 30 - 59 Days 24 12 12 1 — 49 3.4% 60 - 89 Days 10 8 7 — — 25 1.7% 90 - 179 Days 10 11 11 1 — 33 2.3% 180+ Days — 4 7 1 — 12 0.8% Total (1) $ 1,144 $ 164 $ 132 $ 6 $ — $ 1,446 100% (1) Balances include the impact of modification programs offered by the Company as a part of our COVID-19 payment relief initiatives (as discussed further below). |
Allowance for loans and interest receivable | The following table summarizes the activity in the allowance for consumer loans and interest receivable for the three months ended March 31, 2022 and 2021: March 31, 2022 March 31, 2021 Consumer Loans Receivable Interest Receivable Total Allowance (1) Consumer Loans Receivable Interest Receivable Total Allowance (1) (In millions) Beginning balance $ 243 $ 43 $ 286 $ 299 $ 53 $ 352 Provisions 43 6 49 6 2 8 Charge-offs (42) (9) (51) (20) (4) (24) Recoveries 3 — 3 5 — 5 Other (2) (6) (1) (7) 2 1 3 Ending balance $ 241 $ 39 $ 280 $ 292 $ 52 $ 344 (1) Excludes allowances from other consumer credit products of $3 million at both March 31, 2022 and 2021. (2) Includes amounts related to foreign currency remeasurement. The following table summarizes the activity in the allowance for merchant loans, advances, and interest and fees receivable for the three months ended March 31, 2022 and 2021: March 31, 2022 March 31, 2021 Merchant Loans and Advances Interest and Fees Receivable Total Allowance Merchant Loans and Advances Interest and Fees Receivable Total Allowance (In millions) Beginning balance $ 192 $ 9 $ 201 $ 440 $ 43 $ 483 Provisions 5 1 6 (15) (2) (17) Charge-offs (21) (2) (23) (71) (6) (77) Recoveries 9 — 9 8 — 8 Ending balance $ 185 $ 8 $ 193 $ 362 $ 35 $ 397 |
Loans modified as TDRs | The following table shows the merchant loans and interest receivables which were modified as TDRs in the three months ended March 31, 2021: Three Months Ended March 31, 2021 Number of Accounts Outstanding Balances (1) (in millions) Weighted Average Payment Term Extensions Loans and interest receivable 2 $ 31 36 (1) Balances are as of modification date. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding aggregate principal amount related to the notes | The following table summarizes the Notes: Maturities Effective Interest Rate March 31, 2022 December 31, 2021 (in millions) September 2019 debt issuance of $5.0 billion: Fixed-rate 2.200% notes 9/26/2022 2.39% $ 1,000 $ 1,000 Fixed-rate 2.400% notes 10/1/2024 2.52% 1,250 1,250 Fixed-rate 2.650% notes 10/1/2026 2.78% 1,250 1,250 Fixed-rate 2.850% notes 10/1/2029 2.96% 1,500 1,500 May 2020 debt issuance of $4.0 billion: Fixed-rate 1.350% notes 6/1/2023 1.55% 1,000 1,000 Fixed-rate 1.650% notes 6/1/2025 1.78% 1,000 1,000 Fixed-rate 2.300% notes 6/1/2030 2.39% 1,000 1,000 Fixed-rate 3.250% notes 6/1/2050 3.33% 1,000 1,000 Total term debt $ 9,000 $ 9,000 Unamortized premium (discount) and issuance costs, net (48) (50) Less: current portion of long-term debt (1) (999) (999) Total carrying amount of long-term debt $ 7,953 $ 7,951 (1) The current portion of long-term debt is included within accrued expenses and other current liabilities on our condensed consolidated balance sheets. |
Schedule of future principal payments associated with long term debt | As of March 31, 2022, the future principal payments associated with our term debt were as follows (in millions): Remaining 2022 $ 1,000 2023 1,000 2024 1,250 2025 1,000 2026 1,250 Thereafter 3,500 Total $ 9,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Allowance for Transaction Losses And Negative Customer Balances | The following table shows changes in the allowance for transaction losses and negative customer balances related to our protection programs for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (in millions) Beginning balance $ 355 $ 414 Provision 322 281 Realized losses (390) (347) Recoveries 32 20 Ending balance $ 319 $ 368 |
STOCK-BASED PLANS (Tables)
STOCK-BASED PLANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | The impact on our results of operations of recording stock-based compensation expense under our equity incentive plans for the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended March 31, 2022 2021 (In millions) Customer support and operations $ 73 $ 72 Sales and marketing 45 48 Technology and development 136 139 General and administrative 188 119 Total stock-based compensation expense $ 442 $ 378 Capitalized as part of internal use software and website development costs $ 16 $ 16 |
RESTRUCTURING AND OTHER CHARG_2
RESTRUCTURING AND OTHER CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring reserve activity by type of cost | The following table summarizes the restructuring reserve activity during the three months ended March 31, 2022: Employee Severance and Benefits and Other Associated Costs (In millions) Accrued liability as of January 1, 2022 $ 5 Charges 20 Payments (3) Accrued liability as of March 31, 2022 $ 22 |
OVERVIEW AND SUMMARY OF SIGNI_3
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basis of Presentation and Principles of Consolidation (Details) $ in Millions | Mar. 31, 2022USD ($)entity | Dec. 31, 2021USD ($)entity |
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | entity | 0 | 2 |
Short-term investments | $ 3,104 | $ 4,303 |
Loans and interest receivable, net | 5,223 | 4,846 |
Long-term debt | 8,222 | 8,049 |
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | 230 | 205 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Short-term investments | 87 | |
Loans and interest receivable, net | 21 | |
Long-term debt | 98 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 86 | $ 74 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Revenue from Contract with Customer [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 6,483 | $ 6,033 |
Transaction revenues | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 5,998 | 5,621 |
Revenues from other value added services | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 485 | 412 |
Interest, fees, and gains earned on loans and interest receivable, as well as hedging gains or losses, and interest earned on certain assets underlying customer balances | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues which do not represent revenues recognized in the scope of ASC Topic 606 | 187 | 59 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 3,671 | 3,063 |
United Kingdom (“U.K.”) | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 526 | 625 |
Other countries | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 2,286 | $ 2,345 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net income, basic | $ 509 | $ 1,097 |
Net income, diluted | $ 509 | $ 1,097 |
Denominator: | ||
Weighted average shares of common stock - basic (in shares) | 1,163 | 1,173 |
Dilutive effect of equity incentive awards (in shares) | 9 | 17 |
Weighted average shares of common stock - diluted (in shares) | 1,172 | 1,190 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.44 | $ 0.94 |
Diluted (in dollars per share) | $ 0.43 | $ 0.92 |
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive (in shares) | 6 | 2 |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) - business | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
Number of businesses acquired or divested | 0 | 0 |
BUSINESS COMBINATIONS - Acquisi
BUSINESS COMBINATIONS - Acquisitions Completed in 2021 (Details) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2022USD ($) | |
Business Acquisition [Line Items] | |||
Goodwill | $ 11,454,000,000 | $ 11,370,000,000 | |
Paidy, Inc. | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price for acquisitions | $ 2,700,000,000 | ||
Cash consideration paid | 2,600,000,000 | ||
Equity interest issued | 161,000,000 | ||
Gross contractual receivables | $ 216,000,000 | ||
Award vesting period | 4 years | ||
Intangible assets acquired | $ 642,000,000 | ||
Goodwill | $ 1,918,000,000 | ||
Paidy, Inc. | Minimum | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, useful life | 3 years | ||
Paidy, Inc. | Maximum | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, useful life | 7 years | ||
Four other acquisitions in 2021 | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price for acquisitions | $ 542,000,000 | ||
Number of businesses acquired | 4 | ||
Intangible assets acquired | $ 90,000,000 | ||
Net assets | 17,000,000 | ||
Goodwill | $ 435,000,000 | ||
Four other acquisitions in 2021 | Minimum | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, useful life | 1 year | ||
Four other acquisitions in 2021 | Maximum | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired, useful life | 7 years |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of Allocation of Purchase Consideration to Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 11,370 | $ 11,454 | |
Paidy, Inc. | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 1,918 | ||
Intangibles | 642 | ||
Loans and interest receivable, net | 197 | ||
Cash and cash equivalents | 101 | ||
Other net assets | 87 | ||
Short-term and long-term debt | (188) | ||
Deferred tax liabilities, net | (186) | ||
Total purchase price | 2,571 | ||
Paidy, Inc. | Customer lists and user base | |||
Business Acquisition [Line Items] | |||
Intangibles | 512 | ||
Paidy, Inc. | Marketing related | |||
Business Acquisition [Line Items] | |||
Intangibles | 83 | ||
Paidy, Inc. | Developed technology | |||
Business Acquisition [Line Items] | |||
Intangibles | $ 47 |
BUSINESS COMBINATIONS - Other I
BUSINESS COMBINATIONS - Other Information (Details) - Companies Acquired in Fiscal Year 2021 $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Step acquisition, equity interest in acquiree, fair value | $ 64 |
Other income (expense), net | |
Business Acquisition [Line Items] | |
Step acquisition, equity interest in acquiree, remeasurement gain | $ 36 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Goodwill Balances and Adjustments (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Total goodwill | |
Beginning balance | $ 11,454 |
Goodwill Acquired | 0 |
Adjustments | (84) |
Ending balance | $ 11,370 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense for intangible assets | $ 118 | $ 106 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Components of Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,666 | $ 3,694 |
Accumulated Amortization | (2,481) | (2,362) |
Net Carrying Amount | 1,185 | 1,332 |
Customer lists and user base | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,704 | 1,726 |
Accumulated Amortization | (967) | (919) |
Net Carrying Amount | $ 737 | $ 807 |
Weighted Average Useful Life (Years) | 7 years | 7 years |
Marketing related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 400 | $ 405 |
Accumulated Amortization | (321) | (315) |
Net Carrying Amount | $ 79 | $ 90 |
Weighted Average Useful Life (Years) | 5 years | 5 years |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,107 | $ 1,109 |
Accumulated Amortization | (879) | (822) |
Net Carrying Amount | $ 228 | $ 287 |
Weighted Average Useful Life (Years) | 3 years | 3 years |
All other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 455 | $ 454 |
Accumulated Amortization | (314) | (306) |
Net Carrying Amount | $ 141 | $ 148 |
Weighted Average Useful Life (Years) | 7 years | 7 years |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Expected Future Intangible Asset Amortization (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fiscal years: | ||
Remaining 2022 | $ 348 | |
2023 | 226 | |
2024 | 207 | |
2025 | 169 | |
2026 | 111 | |
Thereafter | 124 | |
Net Carrying Amount | $ 1,185 | $ 1,332 |
LEASES - Schedules of Component
LEASES - Schedules of Components of Lease Expense, Supplemental Cash and Noncash And Balance Sheet Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Lease expense | |||
Operating lease expense | $ 42 | $ 45 | |
Sublease income | (2) | (2) | |
Lease expense, net | 40 | 43 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | 41 | 42 | |
Right-of-use (“ROU”) lease assets obtained in exchange for operating lease liabilities | $ 73 | $ 1 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Operating ROU lease assets | $ 693 | $ 659 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
Other current operating lease liabilities | $ 155 | $ 142 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Deferred tax liability and other long-term liabilities | Deferred tax liability and other long-term liabilities | |
Operating lease liabilities | $ 651 | $ 620 | |
Total operating lease liabilities | $ 806 | $ 762 | |
Weighted-average remaining lease term—operating leases | 5 years 10 months 24 days | 6 years 1 month 6 days | |
Weighted-average discount rate—operating leases | 3.00% | 3.00% |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Operating Lease Payments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fiscal years: | ||
Remaining 2022 | $ 131 | |
2023 | 175 | |
2024 | 156 | |
2025 | 116 | |
2026 | 98 | |
Thereafter | 202 | |
Total | 878 | |
Less: present value discount | (72) | |
Lease liability | $ 806 | $ 762 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Asset impairment charges | $ 16 | $ 26 |
Operating lease, impairment charges | 10 | $ 21 |
Operating lease, lease not yet commenced, amount | $ 5 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, lease not yet commenced, term of contract | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, lease not yet commenced, term of contract | 9 years |
OTHER FINANCIAL STATEMENT DET_3
OTHER FINANCIAL STATEMENT DETAILS - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax | ||
Beginning balance | $ 21,727 | $ 20,063 |
Other comprehensive income (loss) before reclassifications | (261) | 72 |
Less: Amount of gain (loss) reclassified from AOCI | 47 | (59) |
Other comprehensive income (loss), net of tax | (308) | 131 |
Ending balance | 20,603 | 19,441 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Balances of Other Comprehensive Income (Loss), Estimated Tax Benefit (Expense) | ||
Beginning balance | (2) | 2 |
Other comprehensive income (loss) before reclassifications | 62 | 1 |
Less: Amount of gain reclassified from accumulated other comprehensive income (“AOCI”) | 0 | 0 |
Net current period other comprehensive income (loss) | 62 | 1 |
Ending balance | 60 | 3 |
Accumulated Balances of Other Comprehensive Income (Loss), Net of Tax | ||
Beginning balance | (136) | (484) |
Ending balance | (444) | (353) |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Accumulated Balances of Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | 199 | (323) |
Other comprehensive income (loss) before reclassifications | 44 | 139 |
Less: Amount of gain (loss) reclassified from AOCI | 47 | (59) |
Net current period other comprehensive income (loss) | (3) | 198 |
Ending balance | 196 | (125) |
Unrealized Gains (Losses) on Investments | ||
Accumulated Balances of Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | (87) | 11 |
Other comprehensive income (loss) before reclassifications | (293) | (15) |
Less: Amount of gain (loss) reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income (loss) | (293) | (15) |
Ending balance | (380) | (4) |
Foreign Currency Translation Adjustment (“CTA”) | ||
Accumulated Balances of Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | (270) | (198) |
Other comprehensive income (loss) before reclassifications | (95) | (53) |
Less: Amount of gain (loss) reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income (loss) | (95) | (53) |
Ending balance | (365) | (251) |
Net Investment Hedges CTA Gains | ||
Accumulated Balances of Other Comprehensive Income (Loss), Before Tax | ||
Beginning balance | 24 | 24 |
Other comprehensive income (loss) before reclassifications | 21 | 0 |
Less: Amount of gain (loss) reclassified from AOCI | 0 | 0 |
Net current period other comprehensive income (loss) | 21 | 0 |
Ending balance | $ 45 | $ 24 |
OTHER FINANCIAL STATEMENT DET_4
OTHER FINANCIAL STATEMENT DETAILS - Reclassifications Out Of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Net revenues | $ (6,483) | $ (6,033) |
Other income (expense), net | 82 | 170 |
Income before income taxes | (629) | (872) |
Income tax expense | 120 | (225) |
Net income | (509) | (1,097) |
Amount of Gains (Losses) Reclassified from AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Income before income taxes | 47 | (59) |
Income tax expense | 0 | 0 |
Net income | 47 | (59) |
Amount of Gains (Losses) Reclassified from AOCI | Gains (losses) on cash flow hedges—foreign exchange contracts | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Net revenues | 47 | (59) |
Amount of Gains (Losses) Reclassified from AOCI | Unrealized gains (losses) on investments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Other income (expense), net | $ 0 | $ 0 |
OTHER FINANCIAL STATEMENT DET_5
OTHER FINANCIAL STATEMENT DETAILS - Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 15 | $ 15 |
Interest expense | (59) | (58) |
Net gains (losses) on strategic investments | 14 | (120) |
Other | (52) | (7) |
Other income (expense), net | $ (82) | $ (170) |
FUNDS RECEIVABLE AND CUSTOMER_3
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Assets Underlying Funds Receivable and Customer Accounts, Short-term Investments, and Long-term Investments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Funds receivable and customer accounts: | ||
Total funds receivable and customer accounts | $ 37,046 | $ 36,141 |
Short-term investments: | ||
Time deposits | 302 | 590 |
Available-for-sale debt securities | 2,775 | 3,604 |
Restricted cash | 27 | 109 |
Short-term Investments | 3,104 | 4,303 |
Long-term investments: | ||
Time deposits | 35 | 45 |
Available-for-sale debt securities | 3,921 | 3,545 |
Strategic investments | 3,189 | 3,207 |
Long-term Investments | 7,145 | 6,797 |
Cash and cash equivalents | ||
Funds receivable and customer accounts: | ||
Total funds receivable and customer accounts | 12,955 | 12,723 |
Time deposits | ||
Funds receivable and customer accounts: | ||
Total funds receivable and customer accounts | 122 | 334 |
Available-for-sale debt securities | ||
Funds receivable and customer accounts: | ||
Total funds receivable and customer accounts | 18,916 | 18,336 |
Funds receivable | ||
Funds receivable and customer accounts: | ||
Total funds receivable and customer accounts | $ 5,053 | $ 4,748 |
FUNDS RECEIVABLE AND CUSTOMER_4
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Estimated Fair Value of Investments Classified as Available for Sale (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | $ 24,296 | $ 23,232 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (380) | (87) |
Estimated Fair Value | 23,916 | 23,145 |
Funds receivable and customer accounts | U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 9,592 | 8,655 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (146) | (31) |
Estimated Fair Value | 9,446 | 8,624 |
Funds receivable and customer accounts | Foreign government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 2,005 | 1,923 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (37) | (9) |
Estimated Fair Value | 1,968 | 1,914 |
Funds receivable and customer accounts | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 4,665 | 3,402 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (62) | (15) |
Estimated Fair Value | 4,603 | 3,387 |
Funds receivable and customer accounts | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 1,170 | 1,552 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (14) | (3) |
Estimated Fair Value | 1,156 | 1,549 |
Funds receivable and customer accounts | Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 60 | 535 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Estimated Fair Value | 59 | 535 |
Short-term investments | U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 405 | 537 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 405 | 537 |
Short-term investments | Foreign government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 371 | 505 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (1) |
Estimated Fair Value | 369 | 504 |
Short-term investments | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 1,513 | 2,273 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | 0 |
Estimated Fair Value | 1,510 | 2,273 |
Short-term investments | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 482 | 278 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (1) |
Estimated Fair Value | 479 | 277 |
Long-Term Investments | U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 568 | 568 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (25) | (6) |
Estimated Fair Value | 543 | 562 |
Long-Term Investments | Foreign government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 719 | 752 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (24) | (6) |
Estimated Fair Value | 695 | 746 |
Long-Term Investments | Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 1,425 | 1,435 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (49) | (11) |
Estimated Fair Value | 1,376 | 1,424 |
Long-Term Investments | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Amortized Cost | 1,321 | 817 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (14) | (4) |
Estimated Fair Value | $ 1,307 | $ 813 |
FUNDS RECEIVABLE AND CUSTOMER_5
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued interest receivable | $ 43 | $ 36 |
FUNDS RECEIVABLE AND CUSTOMER_6
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Available-for-sale Debt Securities in Continuous Loss Position (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than 12 months | $ 17,205 | $ 17,989 |
12 months or longer | 856 | 20 |
Total | 18,061 | 18,009 |
Gross Unrealized Losses | ||
Less than 12 months | (351) | (87) |
12 months or longer | (29) | 0 |
Total | (380) | (87) |
Funds receivable and customer accounts | U.S. government and agency securities | ||
Fair Value | ||
Less than 12 months | 7,857 | 8,124 |
12 months or longer | 385 | 0 |
Total | 8,242 | 8,124 |
Gross Unrealized Losses | ||
Less than 12 months | (131) | (31) |
12 months or longer | (15) | 0 |
Total | (146) | (31) |
Funds receivable and customer accounts | Foreign government and agency securities | ||
Fair Value | ||
Less than 12 months | 1,777 | 1,778 |
12 months or longer | 151 | 20 |
Total | 1,928 | 1,798 |
Gross Unrealized Losses | ||
Less than 12 months | (33) | (9) |
12 months or longer | (4) | 0 |
Total | (37) | (9) |
Funds receivable and customer accounts | Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 1,741 | 1,841 |
12 months or longer | 0 | 0 |
Total | 1,741 | 1,841 |
Gross Unrealized Losses | ||
Less than 12 months | (62) | (15) |
12 months or longer | 0 | 0 |
Total | (62) | (15) |
Funds receivable and customer accounts | Municipal securities | ||
Fair Value | ||
Less than 12 months | 49 | 50 |
12 months or longer | 0 | 0 |
Total | 49 | 50 |
Gross Unrealized Losses | ||
Less than 12 months | (1) | 0 |
12 months or longer | 0 | 0 |
Total | (1) | 0 |
Funds receivable and customer accounts | Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 1,130 | 1,302 |
12 months or longer | 0 | 0 |
Total | 1,130 | 1,302 |
Gross Unrealized Losses | ||
Less than 12 months | (14) | (3) |
12 months or longer | 0 | 0 |
Total | (14) | (3) |
Short-term investments | U.S. government and agency securities | ||
Fair Value | ||
Less than 12 months | 231 | 440 |
12 months or longer | 0 | 0 |
Total | 231 | 440 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | 0 | 0 |
Total | 0 | 0 |
Short-term investments | Foreign government and agency securities | ||
Fair Value | ||
Less than 12 months | 359 | 498 |
12 months or longer | 10 | 0 |
Total | 369 | 498 |
Gross Unrealized Losses | ||
Less than 12 months | (2) | (1) |
12 months or longer | 0 | 0 |
Total | (2) | (1) |
Short-term investments | Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 380 | 323 |
12 months or longer | 0 | 0 |
Total | 380 | 323 |
Gross Unrealized Losses | ||
Less than 12 months | (3) | 0 |
12 months or longer | 0 | 0 |
Total | (3) | 0 |
Short-term investments | Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 428 | 273 |
12 months or longer | 0 | 0 |
Total | 428 | 273 |
Gross Unrealized Losses | ||
Less than 12 months | (3) | (1) |
12 months or longer | 0 | 0 |
Total | (3) | (1) |
Long-Term Investments | U.S. government and agency securities | ||
Fair Value | ||
Less than 12 months | 543 | 562 |
12 months or longer | 0 | 0 |
Total | 543 | 562 |
Gross Unrealized Losses | ||
Less than 12 months | (25) | (6) |
12 months or longer | 0 | 0 |
Total | (25) | (6) |
Long-Term Investments | Foreign government and agency securities | ||
Fair Value | ||
Less than 12 months | 555 | 746 |
12 months or longer | 139 | 0 |
Total | 694 | 746 |
Gross Unrealized Losses | ||
Less than 12 months | (18) | (6) |
12 months or longer | (6) | 0 |
Total | (24) | (6) |
Long-Term Investments | Corporate debt securities | ||
Fair Value | ||
Less than 12 months | 1,196 | 1,345 |
12 months or longer | 171 | 0 |
Total | 1,367 | 1,345 |
Gross Unrealized Losses | ||
Less than 12 months | (45) | (11) |
12 months or longer | (4) | 0 |
Total | (49) | (11) |
Long-Term Investments | Asset-backed securities | ||
Fair Value | ||
Less than 12 months | 959 | 707 |
12 months or longer | 0 | 0 |
Total | 959 | 707 |
Gross Unrealized Losses | ||
Less than 12 months | (14) | (4) |
12 months or longer | 0 | 0 |
Total | $ (14) | $ (4) |
FUNDS RECEIVABLE AND CUSTOMER_7
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Estimated Fair Values of Investments Classified as Available for Sale by Contractual Maturity (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
One year or less | $ 10,306 | |
After one year through five years | 12,065 | |
After five years through ten years | 1,834 | |
After ten years | 91 | |
Gross Amortized Cost | 24,296 | $ 23,232 |
Fair Value | ||
One year or less | 10,273 | |
After one year through five years | 11,731 | |
After five years through ten years | 1,822 | |
After ten years | 90 | |
Fair Value | $ 23,916 | $ 23,145 |
FUNDS RECEIVABLE AND CUSTOMER_8
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Strategic Investments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Carrying value of marketable equity securities recorded in long-term investments | $ 1,600 | $ 1,900 |
Carrying value of non-marketable equity | 92 | 79 |
Carrying value of non-marketable equity securities which do not have readily determinable fair value | $ 1,600 | $ 1,300 |
FUNDS RECEIVABLE AND CUSTOMER_9
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Measurement Alternative Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity Securities without Readily Determinable Fair Value [Roll Forward] | ||
Carrying amount, beginning of period | $ 1,268 | $ 779 |
Adjustments related to non-marketable equity securities: | ||
Net additions (sales) | 4 | 10 |
Gross unrealized gains | 197 | 12 |
Carrying amount, end of period | $ 1,469 | $ 801 |
FUNDS RECEIVABLE AND CUSTOME_10
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Summary of Cumulative Gross Unrealized Gains and Cumulative Gross Unrealized Losses and Impairment Related to Non-marketable Equity Securities Accounted for Under the Measurement Alternative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Cumulative gross unrealized gains | $ 911 | $ 733 |
Cumulative gross unrealized losses and impairments | $ (27) | $ (27) |
FUNDS RECEIVABLE AND CUSTOME_11
FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS AND INVESTMENTS - Schedule of Unrealized Gains (Losses) on Strategic Investments, Excluding Those Accounted for Using the Equity Method (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized losses | $ (36) | $ (149) |
FAIR VALUE MEASUREMENT OF ASS_3
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Funds receivable and customer accounts | $ 37,046 | $ 36,141 |
Liabilities: | ||
Cash | 4,400 | 4,800 |
Short-term restricted cash | 27 | 109 |
Time deposits | 337 | 635 |
Carrying value of non-marketable equity securities which do not have readily determinable fair value | 1,600 | 1,300 |
Cash and cash equivalents | ||
Assets: | ||
Funds receivable and customer accounts | 12,955 | 12,723 |
Cash, time deposits and funds receivable | ||
Assets: | ||
Funds receivable and customer accounts | 17,800 | 17,200 |
Fair value, measurements, recurring basis | ||
Assets: | ||
Cash and cash equivalents | 480 | 400 |
Funds receivable and customer accounts | 19,278 | 18,958 |
Derivatives | 351 | 304 |
Total financial assets | 28,433 | 28,671 |
Liabilities: | ||
Derivatives | 134 | 130 |
Fair value, measurements, recurring basis | Cash and cash equivalents | ||
Assets: | ||
Funds receivable and customer accounts | 362 | 622 |
Fair value, measurements, recurring basis | U.S. government and agency securities | ||
Assets: | ||
Funds receivable and customer accounts | 9,446 | 8,624 |
Fair value, measurements, recurring basis | Foreign government and agency securities | ||
Assets: | ||
Funds receivable and customer accounts | 3,461 | 4,083 |
Fair value, measurements, recurring basis | Corporate debt securities | ||
Assets: | ||
Funds receivable and customer accounts | 4,794 | 3,545 |
Fair value, measurements, recurring basis | Asset-backed securities | ||
Assets: | ||
Funds receivable and customer accounts | 1,156 | 1,549 |
Fair value, measurements, recurring basis | Municipal securities | ||
Assets: | ||
Funds receivable and customer accounts | 59 | 535 |
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Funds receivable and customer accounts | 0 | 0 |
Derivatives | 0 | 0 |
Total financial assets | 1,628 | 1,860 |
Liabilities: | ||
Derivatives | 0 | 0 |
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ||
Assets: | ||
Funds receivable and customer accounts | 0 | 0 |
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities | ||
Assets: | ||
Funds receivable and customer accounts | 0 | 0 |
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government and agency securities | ||
Assets: | ||
Funds receivable and customer accounts | 0 | 0 |
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Assets: | ||
Funds receivable and customer accounts | 0 | 0 |
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Assets: | ||
Funds receivable and customer accounts | 0 | 0 |
Fair value, measurements, recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Assets: | ||
Funds receivable and customer accounts | 0 | 0 |
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 480 | 400 |
Funds receivable and customer accounts | 19,278 | 18,958 |
Derivatives | 351 | 304 |
Total financial assets | 26,805 | 26,811 |
Liabilities: | ||
Derivatives | 134 | 130 |
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | ||
Assets: | ||
Funds receivable and customer accounts | 362 | 622 |
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | U.S. government and agency securities | ||
Assets: | ||
Funds receivable and customer accounts | 9,446 | 8,624 |
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Foreign government and agency securities | ||
Assets: | ||
Funds receivable and customer accounts | 3,461 | 4,083 |
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Assets: | ||
Funds receivable and customer accounts | 4,794 | 3,545 |
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Funds receivable and customer accounts | 1,156 | 1,549 |
Fair value, measurements, recurring basis | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Assets: | ||
Funds receivable and customer accounts | 59 | 535 |
Fair value, measurements, recurring basis | Short-term investments | ||
Assets: | ||
Investments | 2,775 | 3,604 |
Fair value, measurements, recurring basis | Short-term investments | U.S. government and agency securities | ||
Assets: | ||
Investments | 405 | 537 |
Fair value, measurements, recurring basis | Short-term investments | Foreign government and agency securities | ||
Assets: | ||
Investments | 381 | 517 |
Fair value, measurements, recurring basis | Short-term investments | Corporate debt securities | ||
Assets: | ||
Investments | 1,510 | 2,273 |
Fair value, measurements, recurring basis | Short-term investments | Asset-backed securities | ||
Assets: | ||
Investments | 479 | 277 |
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government and agency securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 2,775 | 3,604 |
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | U.S. government and agency securities | ||
Assets: | ||
Investments | 405 | 537 |
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | Foreign government and agency securities | ||
Assets: | ||
Investments | 381 | 517 |
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Assets: | ||
Investments | 1,510 | 2,273 |
Fair value, measurements, recurring basis | Short-term investments | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Investments | 479 | 277 |
Fair value, measurements, recurring basis | Long-Term Investments | ||
Assets: | ||
Investments | 5,549 | 5,405 |
Fair value, measurements, recurring basis | Long-Term Investments | U.S. government and agency securities | ||
Assets: | ||
Investments | 543 | 562 |
Fair value, measurements, recurring basis | Long-Term Investments | Foreign government and agency securities | ||
Assets: | ||
Investments | 695 | 746 |
Fair value, measurements, recurring basis | Long-Term Investments | Corporate debt securities | ||
Assets: | ||
Investments | 1,376 | 1,424 |
Fair value, measurements, recurring basis | Long-Term Investments | Asset-backed securities | ||
Assets: | ||
Investments | 1,307 | 813 |
Fair value, measurements, recurring basis | Long-Term Investments | Marketable equity securities | ||
Assets: | ||
Investments | 1,628 | 1,860 |
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investments | 1,628 | 1,860 |
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government and agency securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Assets: | ||
Investments | 0 | 0 |
Fair value, measurements, recurring basis | Long-Term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable equity securities | ||
Assets: | ||
Investments | 1,628 | 1,860 |
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investments | 3,921 | 3,545 |
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | U.S. government and agency securities | ||
Assets: | ||
Investments | 543 | 562 |
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | Foreign government and agency securities | ||
Assets: | ||
Investments | 695 | 746 |
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Assets: | ||
Investments | 1,376 | 1,424 |
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Investments | 1,307 | 813 |
Fair value, measurements, recurring basis | Long-Term Investments | Significant Other Observable Inputs (Level 2) | Marketable equity securities | ||
Assets: | ||
Investments | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT OF ASS_4
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) $ in Billions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, carrying value | $ 9 | $ 9 |
Notes payable, fair value | $ 8.7 | $ 9.3 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, duration | 1 month | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, duration | 1 year | |
Maximum | Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, duration | 18 months |
FAIR VALUE MEASUREMENT OF ASS_5
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Summary of Investments Under the Fair Value Option (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, available-for-sale, excluding accrued interest | $ 23,916 | $ 23,145 | |
Fair Value Option, Investments | Funds receivable and customer accounts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, available-for-sale, excluding accrued interest | 1,684 | 2,327 | |
Net gains (losses) from fair value changes | (34) | $ (67) | |
Fair Value Option, Investments | Short-term investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, available-for-sale, excluding accrued interest | 12 | $ 13 | |
Net gains (losses) from fair value changes | $ 0 | $ (11) |
FAIR VALUE MEASUREMENT OF ASS_6
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Financial Assets Measured and Recorded at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Equity investments measured at cost minus impairment | $ 1,469 | $ 1,268 | $ 801 | $ 779 |
Fair Value, measurements, not on a recurring basis | ||||
Assets: | ||||
Non-marketable equity investments measured using the Measurement Alternative | 636 | 611 | ||
Other assets | 24 | 86 | ||
Total financial assets | 660 | 697 | ||
Equity investments measured at cost minus impairment | 833 | 657 | ||
Fair Value, measurements, not on a recurring basis | Significant Other Observable Inputs (Level 2) | ||||
Assets: | ||||
Non-marketable equity investments measured using the Measurement Alternative | 636 | 611 | ||
Other assets | 24 | 86 | ||
Total financial assets | $ 660 | $ 697 |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Maximum maturity of foreign currency exchange contracts | 18 months | ||
Net derivative gains related to cash flow hedges to be reclassified into earnings within the next 12 months | $ 185,000,000 | ||
Net investment hedge CTA gains (losses), reclassifications | 0 | $ 0 | |
Derivative asset, offset | 55,000,000 | $ 102,000,000 | |
Derivative liability, offset | $ 55,000,000 | $ 102,000,000 |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Fair Value of Derivative Instruments (Details) - Foreign Exchange Contract - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 351 | $ 304 |
Derivative liabilities | 134 | 130 |
Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 220 | 205 |
Designated as Hedging Instrument | Other assets (non-current) | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 45 | 21 |
Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 35 | 27 |
Designated as Hedging Instrument | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 5 | 0 |
Not Designated as Hedging Instrument | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 86 | 78 |
Not Designated as Hedging Instrument | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 94 | $ 103 |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other current assets | ||
Offsetting Liabilities [Line Items] | ||
Cash collateral posted | $ 6 | $ 5 |
Other current liabilities | ||
Offsetting Liabilities [Line Items] | ||
Cash collateral received | $ 235 | $ 209 |
DERIVATIVE INSTRUMENTS - Locati
DERIVATIVE INSTRUMENTS - Location in the Condensed Consolidated Statements of Income and Amount of Recognized Gains or Losses Related to Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total amounts presented in the condensed consolidated statements of income in which the effects of cash flow hedges and net investment hedges are recorded (net revenues) | $ 6,483 | $ 6,033 |
Total amounts presented in the condensed consolidated statements of income in which the effects of cash flow hedges and net investment hedges are recorded (other income (expense), net) | (82) | (170) |
Net revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) | 47 | (59) |
Other income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) | (30) | 41 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Net revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) | 0 | 0 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gains (losses) | (39) | 41 |
Foreign Exchange Contract | Cash Flow Hedging | Designated as Hedging Instrument | Net revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gains (losses) on foreign exchange contracts reclassified from AOCI | 47 | (59) |
Foreign Exchange Contract | Net Investment Hedging | Designated as Hedging Instrument | Net revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gains on foreign exchange contracts excluded from the assessment of effectiveness | 0 | 0 |
Foreign Exchange Contract | Net Investment Hedging | Designated as Hedging Instrument | Other income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gains on foreign exchange contracts excluded from the assessment of effectiveness | $ 9 | $ 0 |
DERIVATIVE INSTRUMENTS - Pre-ta
DERIVATIVE INSTRUMENTS - Pre-tax Unrealized Gains or Losses Included in the Assessment of Hedge Effectiveness Related To Derivative Instruments Designated as Hedging Instruments That Are Recognized in Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income | $ 65 | $ 139 |
Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income | 44 | 139 |
Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total unrealized gains recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income | $ 21 | $ 0 |
DERIVATIVE INSTRUMENTS - Notion
DERIVATIVE INSTRUMENTS - Notional Amounts of Outstanding Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 19,539 | $ 25,763 |
Foreign Exchange Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | 7,205 | 5,349 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 12,334 | $ 20,414 |
LOANS AND INTEREST RECEIVABLE -
LOANS AND INTEREST RECEIVABLE - Consumer Receivable (Details) - Consumer Receivables - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and interest receivable | $ 4,115 | $ 3,847 |
Threshold period, write-off of receivables | 180 days | |
Threshold period, write-off of bankrupt accounts | 60 days | |
Consumer Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Expected period of repayment | 12 months |
LOANS AND INTEREST RECEIVABLE_2
LOANS AND INTEREST RECEIVABLE - Schedule of Delinquency Status of Consumer Loans and Interest Receivable by Year of Origination (Details) - Consumer Receivables - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Revolving Loans Amortized Cost Basis | $ 1,804 | $ 1,847 |
Loans, advances, and interest and fees receivable, originated current fiscal year | 1,787 | 1,996 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 524 | 4 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 0 | 0 |
Loans and interest receivable | $ 4,115 | $ 3,847 |
Percent | 100.00% | 100.00% |
Other Consumer Credit Products | ||
Financing Receivable, Past Due [Line Items] | ||
Loans and interest receivable | $ 39 | $ 44 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Revolving Loans Amortized Cost Basis | 1,744 | 1,790 |
Loans, advances, and interest and fees receivable, originated current fiscal year | 1,773 | 1,939 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 470 | 3 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 0 | 0 |
Loans and interest receivable | $ 3,987 | $ 3,732 |
Percent | 96.90% | 97.00% |
30 - 59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Revolving Loans Amortized Cost Basis | $ 21 | $ 18 |
Loans, advances, and interest and fees receivable, originated current fiscal year | 13 | 16 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 6 | 0 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 0 | 0 |
Loans and interest receivable | $ 40 | $ 34 |
Percent | 1.00% | 0.90% |
60 - 89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Revolving Loans Amortized Cost Basis | $ 13 | $ 12 |
Loans, advances, and interest and fees receivable, originated current fiscal year | 1 | 13 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 15 | 0 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 0 | 0 |
Loans and interest receivable | $ 29 | $ 25 |
Percent | 0.70% | 0.60% |
90 - 179 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Revolving Loans Amortized Cost Basis | $ 26 | $ 27 |
Loans, advances, and interest and fees receivable, originated current fiscal year | 0 | 28 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 33 | 1 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 0 | 0 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 0 | 0 |
Loans and interest receivable | $ 59 | $ 56 |
Percent | 1.40% | 1.50% |
LOANS AND INTEREST RECEIVABLE_3
LOANS AND INTEREST RECEIVABLE - Schedule of Allowance for Consumer Loans and Interest Receivable (Details) - Consumer Loans Receivable - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for Loans and Interest Receivable | ||
Beginning balance | $ 286 | $ 352 |
Provisions | 49 | 8 |
Charge-offs | (51) | (24) |
Recoveries | 3 | 5 |
Other | (7) | 3 |
Ending balance | 280 | 344 |
Consumer Loans Receivable | ||
Allowance for Loans and Interest Receivable | ||
Beginning balance | 243 | 299 |
Provisions | 43 | 6 |
Charge-offs | (42) | (20) |
Recoveries | 3 | 5 |
Other | (6) | 2 |
Ending balance | 241 | 292 |
Interest Receivable | ||
Allowance for Loans and Interest Receivable | ||
Beginning balance | 43 | 53 |
Provisions | 6 | 2 |
Charge-offs | (9) | (4) |
Recoveries | 0 | 0 |
Other | (1) | 1 |
Ending balance | 39 | 52 |
Other Consumer Credit Products | ||
Allowance for Loans and Interest Receivable | ||
Ending balance | $ 3 | $ 3 |
LOANS AND INTEREST RECEIVABLE_4
LOANS AND INTEREST RECEIVABLE - Merchant Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchased consumer receivables | $ 605 | $ 297 | |
Merchant Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and interest receivable | 1,545 | $ 1,446 | |
Participation interest sold, value | $ 68 | $ 63 | |
Threshold period, write-off of bankrupt accounts | 60 days | ||
Merchant Receivables | PayPal Working Capital Products | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period pas expected period of repayment | 180 days | ||
Threshold period, write-off of receivables, nonpayment | 60 days | ||
Threshold period two, write-off of receivables | 360 days | ||
Merchant Receivables | PayPal Working Capital Products | Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Required percentage of original loan payments every 90 days | 10.00% | ||
Expected period of repayment | 9 months | ||
Merchant Receivables | PayPal Working Capital Products | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Expected period of repayment | 12 months | ||
Merchant Receivables | PayPal Business Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Threshold period, write-off of receivables | 180 days | ||
Merchant Receivables | PayPal Business Loans | Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Expected period of repayment | 3 months | ||
Merchant Receivables | PayPal Business Loans | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Expected period of repayment | 12 months |
LOANS AND INTEREST RECEIVABLE_5
LOANS AND INTEREST RECEIVABLE - Schedule of Delinquency Status of Merchant Loans, Advances, and Interest and Fees Receivable by Year of Origination (Details) - Merchant Receivables - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans, advances, and interest and fees receivable, originated current fiscal year | $ 721 | $ 1,144 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 583 | 164 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 132 | 132 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 104 | 6 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 5 | 0 |
Loans and interest receivable | $ 1,545 | $ 1,446 |
Percent | 100.00% | 100.00% |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, advances, and interest and fees receivable, originated current fiscal year | $ 715 | $ 1,100 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 531 | 129 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 105 | 95 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 77 | 3 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 3 | 0 |
Loans and interest receivable | $ 1,431 | $ 1,327 |
Percent | 92.60% | 91.80% |
30 - 59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, advances, and interest and fees receivable, originated current fiscal year | $ 5 | $ 24 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 23 | 12 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 9 | 12 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 9 | 1 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 0 | 0 |
Loans and interest receivable | $ 46 | $ 49 |
Percent | 3.00% | 3.40% |
60 - 89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, advances, and interest and fees receivable, originated current fiscal year | $ 1 | $ 10 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 11 | 8 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 5 | 7 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 6 | 0 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 0 | 0 |
Loans and interest receivable | $ 23 | $ 25 |
Percent | 1.50% | 1.70% |
90 - 179 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, advances, and interest and fees receivable, originated current fiscal year | $ 0 | $ 10 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 17 | 11 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 9 | 11 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 7 | 1 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 1 | 0 |
Loans and interest receivable | $ 34 | $ 33 |
Percent | 2.20% | 2.30% |
180+ Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, advances, and interest and fees receivable, originated current fiscal year | $ 0 | $ 0 |
Loans, advances, and interest and fees receivable, originated fiscal year before current fiscal year | 1 | 4 |
Loans, advances, and interest and fees receivable, originated two years before current fiscal year | 4 | 7 |
Loans, advances, and interest and fees receivable, originated three years before current fiscal year | 5 | 1 |
Loans, advances, and interest and fees receivable, originated four years before current fiscal year | 1 | 0 |
Loans and interest receivable | $ 11 | $ 12 |
Percent | 0.70% | 0.80% |
LOANS AND INTEREST RECEIVABLE_6
LOANS AND INTEREST RECEIVABLE - Schedule of Allowance for Merchant Loans, Advances, and Interest and Fees Receivable (Details) - Merchant Loans and Advances - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for Loans and Interest Receivable | ||
Beginning balance | $ 201 | $ 483 |
Provisions | 6 | (17) |
Charge-offs | (23) | (77) |
Recoveries | 9 | 8 |
Ending balance | 193 | 397 |
Merchant Loans and Advances | ||
Allowance for Loans and Interest Receivable | ||
Beginning balance | 192 | 440 |
Provisions | 5 | (15) |
Charge-offs | (21) | (71) |
Recoveries | 9 | 8 |
Ending balance | 185 | 362 |
Interest and Fees Receivable | ||
Allowance for Loans and Interest Receivable | ||
Beginning balance | 9 | 43 |
Provisions | 1 | (2) |
Charge-offs | (2) | (6) |
Recoveries | 0 | 0 |
Ending balance | $ 8 | $ 35 |
LOANS AND INTEREST RECEIVABLE_7
LOANS AND INTEREST RECEIVABLE - Troubled Debt Restructurings ("TDRs") (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Financing receivable, modifications, payment default, threshold period past due | 60 days |
Minimum | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Financing receivable, modifications, term | 1 year |
Maximum | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Financing receivable, modifications, term | 5 years 6 months |
LOANS AND INTEREST RECEIVABLE_8
LOANS AND INTEREST RECEIVABLE - Loans Modified as TDRs (Details) - Merchant Receivables business in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)business | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Accounts | business | 2 |
Outstanding Balances | $ | $ 31 |
Weighted Average Payment Term Extensions | 36 months |
DEBT - Fixed Rate Notes (Detail
DEBT - Fixed Rate Notes (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | May 18, 2020 | Sep. 26, 2019 | |
Debt Instrument [Line Items] | |||||
Total term debt | $ 9,000,000,000 | ||||
Fixed-rate Notes Issued May 2020 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 4,000,000,000 | ||||
Fixed-rate Notes Issued September 2019 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 5,000,000,000 | ||||
Notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total term debt | 9,000,000,000 | $ 9,000,000,000 | |||
Interest expense, including amortization of debt issuance costs | $ 56,000,000 | $ 56,000,000 |
DEBT - Schedule of Outstanding
DEBT - Schedule of Outstanding Aggregate Principal Amount Related to the Notes (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | May 18, 2020 | Sep. 26, 2019 |
Debt Instrument [Line Items] | ||||
Total term debt | $ 9,000,000,000 | |||
Total carrying amount of long-term debt | 8,222,000,000 | $ 8,049,000,000 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Unamortized premium (discount) and issuance costs, net | (48,000,000) | (50,000,000) | ||
Less: current portion of long-term debt | (999,000,000) | (999,000,000) | ||
Total carrying amount of long-term debt | 7,953,000,000 | 7,951,000,000 | ||
Senior Notes | Notes | ||||
Debt Instrument [Line Items] | ||||
Total term debt | $ 9,000,000,000 | 9,000,000,000 | ||
Senior Notes | Fixed-rate Notes Issued September 2019 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 5,000,000,000 | |||
Senior Notes | Fixed-rate 2.200% notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.20% | |||
Effective Interest Rate | 2.39% | |||
Total term debt | $ 1,000,000,000 | 1,000,000,000 | ||
Senior Notes | Fixed-rate 2.400% notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.40% | |||
Effective Interest Rate | 2.52% | |||
Total term debt | $ 1,250,000,000 | 1,250,000,000 | ||
Senior Notes | Fixed-rate 2.650% notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.65% | |||
Effective Interest Rate | 2.78% | |||
Total term debt | $ 1,250,000,000 | 1,250,000,000 | ||
Senior Notes | Fixed-rate 2.850% notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.85% | |||
Effective Interest Rate | 2.96% | |||
Total term debt | $ 1,500,000,000 | 1,500,000,000 | ||
Senior Notes | Fixed-rate Notes Issued May 2020 | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 4,000,000,000 | |||
Senior Notes | Fixed-rate 1.350% notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 1.35% | |||
Effective Interest Rate | 1.55% | |||
Total term debt | $ 1,000,000,000 | 1,000,000,000 | ||
Senior Notes | Fixed-rate 1.650% notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 1.65% | |||
Effective Interest Rate | 1.78% | |||
Total term debt | $ 1,000,000,000 | 1,000,000,000 | ||
Senior Notes | Fixed-rate 2.300% notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.30% | |||
Effective Interest Rate | 2.39% | |||
Total term debt | $ 1,000,000,000 | 1,000,000,000 | ||
Senior Notes | Fixed-rate 3.250% notes | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 3.25% | |||
Effective Interest Rate | 3.33% | |||
Total term debt | $ 1,000,000,000 | $ 1,000,000,000 |
DEBT - Paidy Revolving Credit F
DEBT - Paidy Revolving Credit Facility (Details) - Revolving Credit Facility ¥ in Millions, $ in Millions | 1 Months Ended | |||||||
Mar. 31, 2022JPY (¥) | Mar. 31, 2022USD ($) | Feb. 28, 2022JPY (¥) | Mar. 31, 2022USD ($) | Dec. 31, 2021JPY (¥) | Dec. 31, 2021USD ($) | Oct. 31, 2021JPY (¥) | Oct. 31, 2021USD ($) | |
Paidy Credit Agreement | Unsecured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | ¥ 60,000 | $ 493 | ||||||
Draw downs from lines of credit | ¥ 32,800 | $ 269 | ||||||
Remaining borrowing capacity | ¥ 27,200 | $ 224 | ||||||
Paidy Credit Agreement | Unsecured Debt | Minimum | Tokyo Interbank Offered Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.40% | |||||||
Paidy Credit Agreement | Unsecured Debt | Maximum | Tokyo Interbank Offered Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.60% | |||||||
Prior Credit Agreement | Secured Debt | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | ¥ 22,800 | $ 198 | ||||||
Remaining borrowing capacity | ¥ 11,500 | $ 100 | ||||||
Borrowings outstanding | ¥ 11,300 | $ 98 |
DEBT - Future Principal Payment
DEBT - Future Principal Payments (Details) $ in Millions | Mar. 31, 2022USD ($) |
Future Principal Payments | |
Remaining 2022 | $ 1,000 |
2023 | 1,000 |
2024 | 1,250 |
2025 | 1,000 |
2026 | 1,250 |
Thereafter | 3,500 |
Total carrying amount of term debt | $ 9,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | 1 Months Ended | ||
Jan. 19, 2022action | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Other Commitments [Line Items] | |||
Unused credit available to accountholders | $ 4,400 | $ 4,100 | |
Allowance for negative customer balances | 204 | 234 | |
Pending Litigation | Unfavorable Regulatory Action | |||
Other Commitments [Line Items] | |||
Number of related putative shareholder derivative actions | action | 2 | ||
Accrued Expenses and Other Current Liabilities | |||
Other Commitments [Line Items] | |||
Allowance for transaction losses | $ 115 | $ 121 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Allowance for Transaction Losses And Negative Customer Balances (Details) - Protection Programs - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loss Contingency Accrual | ||
Beginning balance | $ 355 | $ 414 |
Provision | 322 | 281 |
Realized losses | (390) | (347) |
Recoveries | 32 | 20 |
Ending balance | $ 319 | $ 368 |
STOCK REPURCHASE PROGRAMS (Deta
STOCK REPURCHASE PROGRAMS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity [Abstract] | ||
Common stock repurchased (in shares) | 11 | |
Cash paid for shares repurchased | $ 1,500 | $ 1,323 |
Average cost per share (in dollars per share) | $ 133.93 | |
Remaining amount authorized for future repurchase of common stock | $ 3,600 |
STOCK-BASED PLANS - Schedule of
STOCK-BASED PLANS - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 442 | $ 378 |
Capitalized as part of internal use software and website development costs | 16 | 16 |
Customer support and operations | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 73 | 72 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 45 | 48 |
Technology and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | 136 | 139 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation expense | $ 188 | $ 119 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percentage | 19.00% | (26.00%) |
RESTRUCTURING AND OTHER CHARG_3
RESTRUCTURING AND OTHER CHARGES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and other charges | $ 20 | $ 32 |
Asset impairment charges | $ 16 | $ 26 |
RESTRUCTURING AND OTHER CHARG_4
RESTRUCTURING AND OTHER CHARGES - Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Reserve | ||
Accrued liability, beginning of period | $ 5 | |
Charges | 20 | $ 32 |
Payments | (3) | |
Accrued liability, end of period | $ 22 |