Table of ContentsIn December 2023, the FASB issued ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets (Subtopic350-60). This ASU requires certain crypto assets to be measured at fair value separately on the balance sheet with changesreported in the statement of operations each reporting period. This ASU also enhances the other intangible asset disclosurerequirements by requiring the name, cost basis, fair value, and number of units for each significant crypto asset holding. TheASU is effective for annual periods beginning after December 15, 2024, including interim periods within those fiscal years.Adoption of the ASU requires a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning ofthe annual reporting period in which an entity adopts the amendments. Early adoption is also permitted, including adoption inan interim period. However, if the ASU is early adopted in an interim period, an entity must adopt the ASU as of the beginningof the fiscal year that includes the interim period. This ASU will result in gains and losses recorded in the consolidatedfinancial statements and additional disclosures when adopted. We are currently evaluating the adoption of this ASU and it couldmaterially affect the carrying value of our crypto assets held and the gains and losses relating thereto, depending on the fairvalue at adoption.In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). TheASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additionalinformation on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15,2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available forissuance. This ASU will likely result in the required additional disclosures being included in our consolidated financialstatements, once adopted.Note 2 – Fair Value of Financial InstrumentsASC 820, Fair Value Measurements (“ASC 820”) states that fair value is an exit price, representing the amount thatwould 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 usein pricing an asset or a liability. The three-tiered fair value hierarchy, which prioritizes which inputs should be used inmeasuring fair value, is comprised of: (Level I) observable inputs such as quoted prices in active markets; (Level II) inputsother than quoted prices in active markets that are observable either directly or indirectly and (Level III) unobservable inputsfor which there is little or no market data. The fair value hierarchy requires the use of observable market data when available indetermining fair value. Our assets and liabilities that were measured at fair value on a recurring basis were as follows (inmillions):September 30, 2024 December 31, 2023Fair Value Level I Level II Level III Fair Value Level I Level II Level IIICertificates of depositand time deposits $ 10,329 $ — $ 10,329 $ — $ 6,996 $ — $ 6,996 $ —Commercial paper 4,162 — 4,162 — 470 — 470 —U.S. governmentsecurities 3,393 — 3,393 — 5,136 — 5,136 —Corporate debt securities 196 — 196 — 480 — 480 —Money market funds1,784 1,784 — — 109 109 — —Total$ 19,864 $ 1,784 $ 18,080 $ — $ 13,191 $ 109 $ 13,082 $ —All of our money market funds were classified within Level I of the fair value hierarchy because they were valued usingquoted prices in active markets. Our U.S. government securities, certificates of deposit, commercial paper, time deposits andcorporate debt securities are classified within Level II of the fair value hierarchy and the market approach was used todetermine fair value of these investments.15