Fair Value of Financial Instruments
ASC 820, Fair Value Measurement, states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. The three-tiered fair value hierarchy, which prioritizes which inputs should be used in measuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputs other than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputs for which there is little or no market data. The fair value hierarchy requires the use of observable market data when available in determining fair value. Our assets and liabilities that were measured at fair value on a recurring basis were as follows (in millions):
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| | December 31, 2025 | | December 31, 2024 |
| | Fair Value | | Level I | | Level II | | Level III | | Fair Value | | Level I | | Level II | | Level III |
| Certificates of deposit and time deposits | $ | 14,600 | | | $ | — | | | $ | 14,600 | | | $ | — | | | $ | 12,767 | | | $ | — | | | $ | 12,767 | | | $ | — | |
| Commercial paper | 5,617 | | | — | | | 5,617 | | | — | | | 3,919 | | | — | | | 3,919 | | | — | |
| U.S. government securities | 7,321 | | | — | | | 7,321 | | | — | | | 3,620 | | | — | | | 3,620 | | | — | |
| Corporate debt securities | 8 | | | — | | | 8 | | | — | | | 118 | | | — | | | 118 | | | — | |
| Money market funds | 1,890 | | | 1,890 | | | — | | | — | | | 1,753 | | | 1,753 | | | — | | | — | |
| Digital assets | 1,008 | | | 1,008 | | | — | | | — | | | 1,076 | | | 1,076 | | | — | | | — | |
| Total | $ | 30,444 | | | $ | 2,898 | | | $ | 27,546 | | | $ | — | | | $ | 23,253 | | | $ | 2,829 | | | $ | 20,424 | | | $ | — | |
Our assets classified within Level I of the fair value hierarchy were valued using quoted prices in active markets and our assets classified within Level II of the fair value hierarchy utilized the market approach to determine fair value of the investments.
Our cash, cash equivalents and investments classified by security type as of December 31, 2025 and 2024 consisted of the following (in millions):
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| | December 31, 2025 |
| | Adjusted Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | Cash and Cash Equivalents | | Short-Term Investments |
| Cash | $ | 14,623 | | | $ | — | | | $ | — | | | $ | 14,623 | | | $ | 14,623 | | | $ | — | |
| Certificates of deposit and time deposits | 14,598 | | | 2 | | | — | | | 14,600 | | | — | | | 14,600 | |
| Commercial paper | 5,619 | | | — | | | (2) | | | 5,617 | | | — | | | 5,617 | |
| U.S. government securities | 7,318 | | | 5 | | | (2) | | | 7,321 | | | — | | | 7,321 | |
| Corporate debt securities | 8 | | | — | | | — | | | 8 | | | — | | | 8 | |
| Money market funds | 1,890 | | | — | | | — | | | 1,890 | | | 1,890 | | | — | |
| Total cash, cash equivalents and short-term investments | $ | 44,056 | | | $ | 7 | | | $ | (4) | | | $ | 44,059 | | | $ | 16,513 | | | $ | 27,546 | |
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| | December 31, 2024 |
| | Adjusted Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | Cash and Cash Equivalents | | Short-Term Investments |
| Cash | $ | 14,386 | | | $ | — | | | $ | — | | | $ | 14,386 | | | $ | 14,386 | | | $ | — | |
| Certificates of deposit and time deposits | 12,767 | | | — | | | — | | | 12,767 | | | — | | | 12,767 | |
| Commercial paper | 3,908 | | | 11 | | | — | | | 3,919 | | | — | | | 3,919 | |
| U.S. government securities | 3,618 | | | 3 | | | (1) | | | 3,620 | | | — | | | 3,620 | |
| Corporate debt securities | 117 | | | 1 | | | — | | | 118 | | | — | | | 118 | |
| Money market funds | 1,753 | | | — | | | — | | | 1,753 | | | 1,753 | | | — | |
| Total cash, cash equivalents and short-term investments | $ | 36,549 | | | $ | 15 | | | $ | (1) | | | $ | 36,563 | | | $ | 16,139 | | | $ | 20,424 | |
As of December 31, 2025 and 2024, investments held and restricted for our insurance business were $254 million and $286 million, respectively.
As of December 31, 2025, the majority of our short-term investments had contractual maturity dates within one year.
Disclosure of Fair Values
Our financial instruments that are not re-measured at fair value include accounts receivable, financing receivables, other receivables, accounts payable, accrued liabilities, customer deposits and debt. The carrying values of these financial instruments materially approximate their fair values.