Table of Contents
Note 2 - FINANCIAL INSTRUMENTS
Cash, Cash Equivalents, Restricted Cash, and Marketable Securities
As of December 31, 2021 and September 30, 2022, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash,
AAA-rated money market funds, U.S. and foreign government and agency securities, other investment grade securities, and marketable equity securities. Cash
equivalents and marketable securities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following
hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:
Level 1-Valuations based on quoted prices for identical assets and liabilities in active markets.
Level 2-Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in
active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be
corroborated by observable market data.
Level 3-Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other
market participants. These valuations require significant judgment.
We measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or
liabilities. Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar
instruments and other significant inputs derived from or corroborated by observable market data. We did not hold significant amounts of marketable securities
categorized as Level 3 assets as of December 31, 2021 and September 30, 2022.
The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair
value on a recurring basis and are categorized using the fair value hierarchy (in millions):
December 31, 2021
September 30, 2022
Total
Cost or
Gross
Gross
Total
Estimated
Amortized
Unrealized
Unrealized
Estimated
Fair Value
Cost
Gains
Losses
Fair Value
Cash
$
10,942
$
10,720
$
-
$
-
$
10,720
Level 1 securities:
Money market funds
20,312
16,697
-
-
16,697
Equity securities (1)(3)
1,646
5,988
Level 2 securities:
Foreign government and agency securities
181
141
-
(2)
139
U.S. government and agency securities
4,300
2,301
-
(169)
2,132
Corporate debt securities
35,764
20,229
-
(799)
19,430
Asset-backed securities
6,738
3,578
-
(191)
3,387
Other fixed income securities
686
403
-
(22)
381
Equity securities (1)(3)
15,740
19
$
96,309
$
54,069
$
-
$
(1,183)
$
58,893
Less: Restricted cash, cash equivalents, and marketable
securities (2)
(260)
(231)
Total cash, cash equivalents, and marketable securities
$
96,049
$
58,662
(1) The related unrealized gain (loss) recorded in "Other income (expense), net" was $(116) million and $1.0 billion in Q3 2021 and Q3 2022, and $6 million
and $(11.3) billion for the nine months ended September 30, 2021 and 2022.
(2)
We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable fixed income securities primarily as collateral for
real estate, amounts due to third-party sellers in certain jurisdictions, debt, and standby and trade letters of credit. We classify cash, cash equivalents, and
marketable fixed income securities with use restrictions of less than twelve months as "Accounts receivable, net and other" and of twelve months or longer
as non-current "Other assets" on our consolidated balance sheets. See "Note 4 - Commitments and Contingencies."
(3) Our equity investment in Rivian had a fair value of $15.6 billion and $5.2 billion as of December 31, 2021 and September 30, 2022, respectively. The
investment was subject to regulatory sales restrictions resulting in a discount for lack of marketability of approximately $800 million as of December 31,
2021, which expired in Q1 2022.
10