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美國
證券交易委員會
華盛頓特區20549
 
表格 10-Q
☒
根據1934年證券交易法第13或15(d)節的季度報告
截至季度結束日期的財務報告2024年9月30日.
或者
☐根據1934年證券交易法第13或15(d)條規定的過渡報告
在從到的過渡期內.
佣金文件號 001-36859
   
PayPal_Monogram_Full_Color_RGB.jpg

貝寶控股有限公司
（按其章程規定的確切註冊人名稱）
 
特拉華州47-2989869
（註冊或組織的）提起訴訟的州或其他司法管轄區（如適用）
組建國的駐地		（IRS僱主
唯一識別號碼）
2211北第一街聖何塞加利福尼亞州95131
(主要領導機構的地址)(郵政編碼)
(408) 967-7000
(註冊人電話號碼，包括區號)
  
在法案第12(b)條的規定下注冊的證券：
每一類的名稱交易標誌在其上註冊的交易所的名稱
solana交易所PYPL納斯達克全球精選市場

請勾選表示登記者是否：(1) 在過去12個月(或登記者需要提交這些報告的較短期間)內已提交《1934年證券交易所法》第13或第15(d)條所要求提交的所有報告，和(2)在過去90天內一直遵守這些申報要求。是  ☒ 沒有☐
請勾選以下內容。申報人是否已在過去12個月內（或申報人需要提交此類文件的時間較短的期間內）逐個以電子方式提交了根據規則405提交的互動數據文件。這章的交易中規定。    是  ☒    否  ☐


請勾選此項，指示註冊人是否爲大型加速申報人、加速申報人、非加速申報人、小型報告公司或新興增長公司。有關「大型加速申報人」、「加速申報人」、「小型報告公司」和「新興增長公司」的定義，請參見《交易法規1.2》條。
大型加速文件管理器☒加速過濾器☐
非加速過濾器☐規模較小的申報公司☐
新興成長型公司☐
如果是新興成長型公司，請用複選標記表明註冊人是否選擇不使用延長的過渡期來遵守根據《交易法》第13（a）條規定的任何新的或修訂後的財務會計準則。 o
用勾勾標誌指示註冊公司是否爲殼公司（如《交易所法》第120億.2條所定義）。
是的 ☐ 不☒
截至2024年10月23日，此前有 1,002,538,828PayPal Holdings, Inc.


貝寶控股有限公司
目錄
頁碼


目錄

第I部分：財務信息

項目1：基本報表

貝寶控股有限公司
簡明合併資產負債表
 2020年9月30日
2024		12月31日
2023
  million and $
(未經審計)
資產
流動資產：  
現金及現金等價物$7,272 $9,081 
短期投資4,647 4,979 
2,687,823 1,038 1,069 
待售的貸款及應收利息471 563 
Loans and interest receivable, net of allowances of $461 和 $540 截至2024年9月30日和2023年12月31日
6,003 5,433 
102.2239,182 38,935 
預付費用和其他流動資產4,060 2,509 
總流動資產62,673 62,569 
所有基金類型投資4,282 3,273 
資產和設備，淨值1,496 1,488 
商譽10,996 11,026 
無形資產, 淨額393 537 
其他3,671 3,273 
總資產$83,511 $82,166 
負債和股東權益
流動負債:
應付賬款$165 $139 
應付基金和客戶餘額41,182 41,935 
應計費用及其他流動負債8,921 6,392 
流動負債合計50,268 48,466 
其他長期負債3,093 2,973 
長期債務9,976 9,676 
負債合計63,337 61,115 
承諾和可能的賠償（注13）
股東權益：
普通股，每股面值爲 $0.0001；0.0001每股面值; 4,000 1,006和頁面。1,072 截至2024年9月30日和2023年12月31日，股份未解決。
— — 
優先股，$0.00010.0001每股面值; 100 股票授權，未發行
— — 
成本法下的庫藏股，322和頁面。245 截至2024年9月30日和2023年12月31日，股份分別爲
(25,851)(21,045)
股本溢價20,426 19,642 
保留盈餘26,226 23,200 
累計其他綜合收益(虧損)(627)(746)
股東權益總計20,174 21,051 
負債和所有者權益總額$83,511 $82,166 

隨附說明是這些簡明合併財務報表的一部分。

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4
目錄


貝寶控股有限公司
簡明合併利潤表
截至9月30日的三個月截至9月30日的九個月
2024202320242023
 （以百萬計，每股數據除外）
（未經審計）
淨收入$7,847 $7,418 $23,431 $21,745 
運營費用：
交易費用 3,841 3,603 11,700 10,427 
交易和信用損失352 446 1,008 1,286 
客戶支持和運營427 474 1,317 1,454 
銷售和營銷508 442 1,375 1,343 
技術和開發746 739 2,206 2,203 
一般和行政519 507 1,553 1,505 
重組和其他63 39 388 227 
運營費用總額6,456 6,250 19,547 18,445 
營業收入1,391 1,168 3,884 3,300 
其他收入（支出），淨額(80)73 35 318 
所得稅前收入1,311 1,241 3,919 3,618 
所得稅支出301 221 893 774 
淨收益（虧損）$1,010 $1,020 $3,026 $2,844 
每股淨收益（虧損）：
基本$1.00 $0.93 $2.91 $2.56 
稀釋$0.99 $0.93 $2.89 $2.55 
加權平均份額：
基本1,015 1,094 1,040 1,111 
稀釋1,024 1,098 1,048 1,115 

隨附說明是這些簡明合併財務報表的一部分。


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5
目錄

貝寶控股有限公司
綜合收益（虧損）的簡明合併報表
截至9月30日的三個月截至9月30日的九個月
 2024202320242023
 （以百萬計）
(未經審計)
$1,010 $1,020 $3,026 $2,844 
其他綜合收益(虧損)，淨額：
60275 (70)7 (306)
貨幣投資對沖CTA（損失）增益，淨
(149)35 50 231 
淨投資套期保值虧損（收益）的稅收效益（費用）
35 (8)(12)(53)
現金流套期保值的未實現損失（收益）淨額
(148)109 (49)(25)
現金流套期保值的未實現損失（收益）的稅收效益（費用）淨額
7 (6)2 1 
可供出售債務證券的未實現收益淨額60 110 158 298 
可供出售債務證券的未實現收益的稅收費用(14)(26)(37)(70)
其他綜合收益（虧損），淨額66 144 119 76 
綜合收益（損失）$1,076 $1,164 $3,145 $2,920 

隨附說明是這些簡明合併財務報表的一部分。


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6
目錄

PayPal 控股有限公司
股東權益的簡明合併報表
普通股
股份		庫存股資本公積金其他積累
綜合收益（損失）		未分配利潤
總股本
 （以百萬計）
(未經審計)
2023年12月31日的餘額。1,072 $(21,045)$19,642 $(746)$23,200 $21,051 
淨收入— — — — 888 888 
Three Months Ended March 31,— — — (143)— (143)
淨投資套期保值會計累計盈餘— — — 99 — 99 
淨投資套期保值會計累積盈餘的稅額— — — (23)— (23)
344— — — 96 — 96 
106.15美元— — — (5)— (5)
可供出售債務證券的未實現收益淨額— — — 83 — 83 
可供出售債務證券的未實現收益的稅收費用— — — (20)— (20)
發行的普通股和股權獎勵，扣除爲員工繳納稅款而扣留的股份6 — (193)— — (193)
已回購普通股(25)(1,511)— — — (1,511)
庫存股重新發行— 4 — — — 4 
以股票爲基礎的報酬計劃— — 376 — — 376 
2024年3月31日的結餘1,053 $(22,552)$19,825 $(659)$24,088 $20,702 
淨收入— — — — 1,128 1,128 
Three Months Ended March 31,— — — (125)— (125)
淨投資對沖CTA收益— — — 100 — 100 
淨投資對沖CTA收益的稅費— — — (24)— (24)
344
— — — 3 — 3 
可供出售債務證券的未實現收益淨額
— — — 15 — 15 
可供出售債務證券未實現收益的稅費
— — — (3)— (3)
發行的普通股和基於股票的獎勵，扣除用於員工稅收的股份
3 — 13 — — 13 
已回購普通股(24)(1,516)— — — (1,516)
股份留存再發行— 4 — — — 4 
以股票爲基礎的報酬計劃— — 325 — — 325 
2024年6月30日的餘額1,032 $(24,064)$20,163 $(693)$25,216 $20,622 
淨收入— — — — 1,010 1,010 
Three Months Ended March 31,— — — 275 — 275 
外匯套期保值現金流量套期損失，淨額
— — — (149)— (149)
外匯套期保值現金流量套期損失稅收益，淨額
— — — 35 — 35 
支付交易數量
— — — (148)— (148)
對未實現現金流量套期工具損失的稅收益，淨額
— — — 7 — 7 
可供出售債務證券的未實現收益淨額
— — — 60 — 60 
關於可供出售債務證券未實現收益的稅費，淨
— — — (14)— (14)
發行的普通股和股票獎勵，扣除員工納稅扣留的股份，淨額
2 — (47)— — (47)
已回購普通股(28)(1,791)— — — (1,791)
庫存股股份再發行— 4 — — — 4 
以股票爲基礎的報酬計劃— — 310 — — 310 
2024年9月30日的餘額1,006 $(25,851)$20,426 $(627)$26,226 $20,174 


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7
目錄


PayPal 控股有限公司
壓縮的股東權益綜合報表—（續）
普通股股份庫存股資本公積金其他積累
綜合收益（損失）		未分配利潤
總股本
 （以百萬計）
(未經審計)
2022年12月31日的餘額1,136 $(16,079)$18,327 $(928)$18,954 $20,274 
淨收入— — — — 795 795 
Three Months Ended March 31,— — — (20)— (20)
淨投資對沖CTA收益— — — 27 — 27 
淨投資對沖CTA收益的稅費— — — (6)— (6)
支付交易數量— — — (111)— (111)
對未實現現金流量套期工具損失的稅收益，淨額— — — 6 — 6 
可供出售債務證券的未實現收益淨額— — — 175 — 175 
可供出售債務證券的未實現收益的稅收費用— — — (41)— (41)
普通股和基於股票的獎勵發放，扣除員工稅金代扣後的股份
5 — (157)— — (157)
已回購普通股(19)(1,443)— — — (1,443)
以股票爲基礎的報酬計劃— — 359 — — 359 
2023年3月31日的餘額1,122 $(17,522)$18,529 $(898)$19,749 $19,858 
淨收入
— — — — 1,029 1,029 
Three Months Ended March 31,— — — (216)— (216)
淨投資對沖CTA收益淨額— — — 169 — 169 
淨投資對沖CTA收益淨額的稅費— — — (39)— (39)
支付交易數量
— — — (23)— (23)
對未實現現金流量套期工具損失的稅收益，淨額
— — — 1 — 1 
可供出售債務證券未實現收益淨額
— — — 13 — 13 
可供出售債務證券未實現收益淨額的稅費
— — — (3)— (3)
發行的普通股和基於股票的獎勵，減去爲僱員稅金而暫扣的股份
2 — 39 — — 39 
已回購普通股(22)(1,542)— — — (1,542)
以股票爲基礎的報酬計劃— — 375 — — 375 
2023年6月30日的餘額1,102 $(19,064)$18,943 $(996)$20,778 $19,661 
淨收入— — — — 1,020 1,020 
Three Months Ended March 31,— — — (70)— (70)
淨投資對沖CTA收益，淨— — — 35 — 35 
淨投資對沖CTA收益的稅費，淨— — — (8)— (8)
344— — — 109 — 109 
106.15美元— — — (6)— (6)
可供出售債務證券未實現收益，淨額
— — — 110 — 110 
可供出售債務證券未實現收益的稅費，淨額
— — — (26)— (26)
已發行的普通股和以股票爲基礎的獎勵，扣除員工所得稅而歸還的股份，淨額
1 — (28)— — (28)
已回購普通股(23)(1,449)— — — (1,449)
以股票爲基礎的報酬計劃— — 392 — — 392 
2023年9月30日的餘額1,080 $(20,513)$19,307 $(852)$21,798 $19,740 

隨附說明是這些簡明合併財務報表的一部分。

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8
目錄

貝寶控股有限公司
現金流量表簡明綜合報表
 截至9月30日的九個月
 20242023
 （以百萬計）
(未經審計)
經營活動現金流量：
$3,026 $2,844 
調整淨利潤(虧損)和經營活動提供的現金:
March 31,1,008 1,286 
折舊和攤銷783 809 
以股票爲基礎的報酬計劃947 1,087 
延遲所得稅8 (439)
戰略投資的淨收益（虧損）226 (205)
投資折扣累計，減少債券的攤銷(290)(265)
調整對待售貸款和利息應收款92 49 
其他 (138)(2)
應收貸款的原始產生，持有待售(17,173)(5,705)
原本分類爲持有待售的貸款應收款項的償還款項和銷售所得17,159 3,676 
資產和負債變動：
應收賬款31 (35)
應付賬款24 (6)
其他資產和負債(647)(865)
經營活動產生的現金流量淨額5,056 2,229 
投資活動現金流量：
逆回購協議的購買(299)— 
逆回購協議的到期226 — 
購買固定資產(480)(478)
出售固定資產的收益— 44 
購買和放貸款應收款項的來源(15,374)(19,802)
原本被歸類爲持有待投資的貸款應收款項的償還和銷售所得14,705 21,319 
投資購買(20,819)(14,975)
投資到期和出售收益21,179 16,110 
資金應收款152 (1,016)
與衍生工具相關的質押物，淨(58)8 
其他(100)76 
投資活動的淨現金流量(使用)/提供的淨現金流量
(868)1,286 
籌集資金的現金流量：
拆借款項656 — 
回購協議償還(656)— 
普通股的發行收益55 82 
購買公司股票(4,778)(4,395)
與股權獎勵淨結算相關的稅收代扣(271)(225)
561,546 829 
融資安排下的償還款項(411)(942)
應付基金和客戶餘額(771)(1,277)
與衍生工具和逆回購協議相關的收到的抵押品，淨額(1)(65)
其他(60)— 
籌集資金淨額(4,691)(5,993)

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9
目錄

貝寶控股有限公司
現金流量綜合表（續）

 截至9月30日的九個月
 20242023
 （以百萬計）
(未經審計)
匯率變動對現金、現金等價物和受限制現金的影響 103 (95)
現金、現金等價物和限制性現金的淨變化 (400)(2,573)
期初現金、貨幣資金及受限制資金餘額21,834 19,156 
期末現金、現金等價物和受限制的現金餘額$21,434 $16,583 
補充現金流披露:
支付的利息現金$168 $167 
所支付的所得稅款，淨額$975 $1,058 
下表調和了在簡明合併資產負債表中報告的現金、現金等價物和受限現金，以便與簡明合併現金流量表中顯示的相同金額合計。
現金及現金等價物$7,272 $6,816 
短期投資1 6 
102.2214,161 9,761 
在簡明合併現金流量表中顯示的現金、現金等價物和受限制現金總額$21,434 $16,583 

隨附說明是這些簡明合併財務報表的一部分。

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10
目錄
貝寶控股有限公司
簡明合併財務報表附註
（未經審計）

注意 1—重要會計政策的概述和總結

概述和組織

paypal控股有限公司（「 paypal，」「 公司，」「 我們，」「 我們，」或「 我們的」）於2015年1月在特拉華州成立，是一家領先的科技平台，可實現數字支付併爲全球的商家和消費者定製商業體驗。paypal的使命是通過創造旨在使資金流動、銷售和購物簡單、個性化和安全的創新體驗，來徹底改變全球商業。

我們在全球範圍內開展業務，在一個快速發展的監管環境中運營，全球監管機構對支付行業的所有方面都有着更加集中的關注，包括打擊恐怖融資、反洗錢、隱私、網絡安全概念和消費者保護。適用於我們的法律法規，包括數字支付出現之前制定的法律，仍在通過立法和監管行動以及司法解釋的發展。新的或變化中的法律法規，包括對其解釋和實施的變化，以及與不合規相關的加大罰款和執法行動，可能對我們的業務、運營結果和財務狀況產生重大不利影響。我們密切關注這些領域，並專注於爲我們的客戶設計合規解決方案。

重要的會計政策

報表的基礎和合並原則

附註的簡明綜合基本報表包括paypal及我們完全擁有和控股的子公司的基本報表。所有板塊之間的餘額和交易在合併中已經被消除。

我們在能夠行使重大影響力但無法控制的實體中的投資，採用投資權益法進行會計覈算。對於這樣的投資，我們對於投資實體經營結果的份額包括在其他收入（費用），淨額中的我們的壓縮綜合損益表中。我們在無法行使重大影響力的實體中的投資被確認爲公允價值或減去減值的成本，如果有的話，根據可觀察價格變動導致的變化調整，這些變化包括在我們的壓縮綜合損益表中的其他收入（費用），淨額中。我們的投資餘額被列爲短期和長期投資在我們的壓縮綜合資產負債表中。

我們在每一項投資初始時進行判斷，並在發生特定事件時重新評估，判斷我們投資的實體是否被視爲可變利益實體（VIE）。如果我們判斷某項投資屬於VIE，我們將評估是否爲主要受益人，這將需要進行合併。截至2024年9月30日和2023年12月31日，沒有任何VIE符合合併的條件，因爲這些實體的結構不使我們能夠管理可能顯著影響其經濟績效的活動。截至2024年9月30日和2023年12月31日，我們在非合併VIE的投資淨額爲美元。1951百萬美元和175百萬，分別列示爲不可交易的權益證券，並根據權益法在我們的簡明合併資產負債表的長期投資中。非合併VIE的投資主要是對着重於增加對未開發社區資本融資的有限合夥企業或類似結構的基金的投資。我們與非合併VIE相關的損失最大風險敞口，表示已發基金承諾和未來的基金承諾，截至2024年9月30日和2023年12月31日爲美元。246百萬美元。

這些簡明彙編基本報表及隨附說明應與我們在2023年12月31日結束的年度報告中包含的經審計的合併基本報表和相關附註一起閱讀，該年度報告於2024年2月8日提交給美國證券交易委員會（「SEC」）的「表格10-K」（「2023年10-K報告」）。

管理層認爲，這些簡明綜合基本報表反映了所有調整，僅包括必要的常規調整，這些調整對所呈現的所有中期期間的簡明綜合基本報表進行公平陳述必不可少。特定金額已重新分類以符合2024年9月30日和爲期3個和9個月的基本報表呈現。

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11
目錄
貝寶控股有限公司
基本財務報表註釋（續）
（未經審計）

估計的使用

根據美國通用會計準則（「GAAP」）編制簡明綜合財務報表需要管理層進行估計和假設，這些估計和假設影響了資產和負債的報告金額以及財務報表日期的待披露資產和負債金額以及報告期間的營業收入和費用金額。我們定期評估我們的估計，包括與交易和信貸損失、所得稅、損失準備、營業收入確認以及對投資策略的評估進行相關的估計。我們的估計基於歷史經驗和各種其他我們認爲在適當情況下是合理的假設。實際結果可能與這些估計存在重大差異。

最近的會計指導

2023年11月，財務會計準則委員會（「FASB」）發佈了會計準則更新（「ASU」）2023-07， 黑石礦產有限合夥企業及附屬企業(主題280): 報告性板塊披露的改進修訂後的指引要求增量報告的各個板塊詳細披露，主要涉及重要板塊費用。修訂還要求僅有一個報告板塊的實體提供根據這些修訂要求的所有披露，以及所有現有的板塊披露。修訂將對報表中呈現的所有過往期間進行追溯應用，自2023年12月15日後開始的財政年度生效，以及2024年12月15日後開始的財政年度的中期期間，可提前採納。我們將在2024年第四季度採納此指引，並按要求提供額外披露。

在2023年的12月，FASB發表了ASU 2023-08（主題350-60），重點研究商譽和其他加密資產的會計處理。 無形資產-商譽與其他-加密資產 （子課題 350-60）： 加密資產的會計和披露此修訂指南要求在每個報告期內對某些加密資產進行公允價值衡量，其中公平價值變動應反映在淨利潤中。修訂還要求披露每個重要加密資產的名稱、公允價值、持有單位和成本基礎，以及加密資產持有的年度調整。新指南自2024年12月15日後開始的財政年度和財政年度內的中期時段生效，允許提前採納。我們要在採用指南的財政年度開始時將這些修訂作爲對保留收益的累積效應調整。根據我們目前的加密資產持有量和公允價值，預計採用這一指南不會對我們的簡明合併財務報表產生實質影響。

2023年12月，FASB發佈了ASU 2023-09，所得稅 （話題740） 所得稅披露改進修訂後的指南增強了與所得稅披露相關的內容，主要涉及有效稅率和所繳所得稅信息。該指南要求披露有效稅率調解中的特定類別，並提供關於達到定量門檻的調解項目的額外信息。此外，修改後的指南要求按聯邦、州和外國稅對所繳所得稅（減退款）進行細分。它還要求細分個別司法管轄區的所繳所得稅（減退款）等於或超過所繳所得稅（減退款）總額的5%。修改後的指南自2024年12月15日後開始的財政年度生效。該指南可前瞻性或後瞻性應用。我們正在評估這一修訂後的指南可能對簡明合併財務報表腳註產生的影響。

美國財務會計準則委員會（FASB）發佈了其他新的會計聲明，我們已經或將採納，視情況而定。我們認爲這些新的會計聲明並未對我們的簡明合併財務報表或披露產生，或將產生，重大影響。

備註2—營業收入

我們讓客戶可以發送和接收付款。我們主要通過在我們的支付平台上爲客戶完成付款交易以及提供其他增值服務來賺取營業收入。我們的營業收入分爲 兩個 兩大類：交易收入和其他增值服務收入。

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12
目錄
貝寶控股有限公司
基本財務報表註釋（續）
（未經審計）

營業收入的分類

我們根據首席營運決策者（「CODM」）管理業務、做出資源分配決策以及評估營運績效的方式來劃分經營部門。我們的CODm是我們的首席執行官，定期審查我們的合併營運業績。我們作爲報告分部運營。 之一 之一 根據提供給我們的CODm並由其審查的信息，我們認爲我們的營業收入和現金流量的性質、金額、時間和不確定性以及其受經濟因素影響的方式，最適當地通過我們主要的地理市場和營業收入類別（交易收入和其他增值服務收入）來描述。在這些類別中記錄的營收來自性質類似的產品和服務，相關費用的性質以及相關的營收確認模型基本相似。

下表顯示了我們按主要地域市場和類別分列的收入：
 截至9月30日的三個月截至9月30日的九個月
 2024202320242023
（以百萬計）
主要地理市場
美國交易法案交易所$4,518 $4,257 $13,535 $12,614 
其他國家(1)
3,329 3,161 9,896 9,131 
總淨收入(2)
$7,847 $7,418 $23,431 $21,745 
營業收入類別
交易收入$7,067 $6,654 $21,254 $19,574 
其他增值服務收入780 764 2,177 2,171 
總淨收入(2)
$7,847 $7,418 $23,431 $21,745 
(1) 沒有一個單一國家被列爲其他國家類別，其總淨收入不超過10%。
(2) 總淨收入包括2024年和2023年截至9月30日分別爲$515 $百萬和$百萬。433 百萬美元，以及2024年和2023年截至9月30日分別爲數十億美元1.5私人股權和其他投資的金額分別爲52.27億美元和53.98億美元，截至2023年7月31日和2023年1月31日。1.3，這不代表《會計準則法規編碼第606號》範圍內認可的營業收入。這些收入涉及貸款利息和費用的收入，包括持有待售的貸款和應收利息，以及套期保值的盈利或虧損，以及爲客戶餘額提供支持的某些資產所產生的利息。 營業收入

淨收入歸屬於支付我們費用的一方所在的國家。

注3——收購：每股淨收益（損失）

基本每股淨收益(虧損)是通過將期間淨收益(虧損)除以期間普通股加權平均持股數計算得出的。每股攤薄淨收益(虧損)是通過將期間淨收益(虧損)除以期間普通股和潛在攤薄普通股的加權平均持股數計算得出的。未頒發的股權激勵獎勵的攤薄影響是通過實施庫存法反映在每股攤薄淨收益(虧損)中的。攤薄每股淨收益(虧損)的計算不包括所有潛在攤薄的普通股。在報告淨虧損的期間，攤薄每股淨虧損與基本每股淨虧損相同，因爲潛在攤薄項目的影響將減少每股淨虧損。

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13
目錄
貝寶控股有限公司
基本財務報表註釋（續）
（未經審計）
下表列示了基本和稀釋每股淨利潤（虧損）的計算方法
 截至9月30日的三個月截至9月30日的九個月
 2024202320242023
（以百萬爲單位，每股數據除外）
分子：
$1,010 $1,020 $3,026 $2,844 
分母：
購買權益激勵獎勵產生的稀釋效應1,015 1,094 1,040 1,111 
股權激勵獎勵的稀釋效應9 4 8 4 
普通股加權平均攤薄股數1,024 1,098 1,048 1,115 
淨利潤每份股息：
基本$1.00 $0.93 $2.91 $2.56 
稀釋的$0.99 $0.93 $2.89 $2.55 
普通股等價物未計入每股攤薄後淨利潤（損失），因爲其影響可能會抵消或潛在減少
8 22 12 20 

註釋4—業務合併和創業

在2023和2024年6月30日結束的三個和六個月中，有資產減損處理記錄。更新計算公司進行中的研究和開發資產（“IPR&D”）公平價值所使用的關鍵假設可能會改變公司未來短期內回收IPR&D資產的帶值估計。 無 併購或出售業務在截至2024年9月30日和2023年間完成，並計入業務組合。

備考5—商譽和無形資產

善良

下表顯示截至2024年9月30日九個月的商譽餘額及對這些餘額的調整：
12月31日，
2023		取得的商譽 調整項目 九月三十日，
2024
（以百萬為單位）
商譽總額$11,026 $— $(30)$10,996 

2024年9月30日止九個月期間對商譽的調整涉及外匯翻譯調整。

無形資產

可識別無形資產的元件如下：
 2024年9月30日2023年12月31日
 毛餘額
累積攤提 
淨攜帶額加權平均使用年限（年）
毛餘額
累積攤提 
淨攜帶額加權平均有用壽命（年）
 （單位：百萬，年除外）
無形資產：        
客戶名單和用戶數量$1,538 $(1,232)$306 7$1,546 $(1,140)$406 7
行銷相關386 (359)27 5387 (350)37 5
開發出的科技1,012 (1,012)— 31,013 (999)14 3
所有其他435 (375)60 7433 (353)80 7
無形資產，扣除累計攤銷$3,371 $(2,978)$393 $3,379 $(2,842)$537  


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14
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)
無形資產攤銷費用為$（百萬），分別為2024年和2023年三個月結束時。無限期使用期限的無形資產不予攤銷，根據ASC 350標準進行每年審核以判斷是否有損耗。51百萬和$57 分別為2024年和2023年截至9月30日的三個月，無形資產攤銷費為XX百萬美元。159百萬和$172分別為2024年和2023年截至9月30日的九個月，無形資產攤銷費為XX百萬美元。

截至2024年9月30日，預期未來無形資產攤銷如下（單位：百萬美元）：

財政年度：
剩餘2024年$42 
2025152 
202695 
202758 
202846 
總計$393 

備註6—租賃合同

paypal簽訂各種租賃協議，主要是房地產業經營租賃。我們將這些物業用於高管和行政辦公室、數據中心、產品開發辦公室以及客戶服務和運營中心。paypal也簽訂計算機設備融資租賃。

雖然我們的大部分租賃協議中並不包含明確的利率，但是我們的某些租賃協議會根據消費價格指數或其他相關指數的變化而發生變化。在相關指數發生變化時，租賃負債不會重新計量，而會視爲可變租金支付，並在發生這些支付義務的期間確認。

所有租賃期少於12個月的租約均已採納短期租賃豁免。

paypal的租約投資組合包括少量的次租賃。次租賃情況可能在目前被租賃的房地產空間有多餘且不必要的情況下出現。

租賃費用的組成如下:
截至9月30日的三個月截至9月30日的九個月
2024202320242023
（以百萬計）
運營租賃費用$41 $39 $117 $119 
轉租收入(3)(2)(9)(6)
租賃費用總額，淨額(1)
$38 $37 $108 $113 
(1) 在2024年9月30日結束的三個月和九個月內，融資租賃費用微不足道。


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15
目錄
貝寶控股有限公司
基本財務報表註釋（續）
（未經審計）
2024年和2023年截至9月30日的三個月和九個月內與租賃相關的補充現金流信息如下：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
（以百萬計）
支付與租賃負債計量相關的現金：
經營租賃的經營現金流量$42 $45 $127 $131 
融資租賃的籌資活動現金流量$40 $— $60 $— 
用於新的經營租賃負債而獲取的使用權（"ROU"）租賃資產
$59 $(23)$336 $(1)
用於新的融資租賃負債而獲取的使用權（"ROU"）租賃資產$27 $— $82 $— 
其他非現金ROU租賃資產活動(1)
$— $(15)$— $(40)
(1) ROU租賃資產減值。有關詳細信息，請參閱「註釋17—重組和其他」。

與租賃相關的補充資產負債表信息如下：
2024年9月30日2023年12月31日
（單位：百萬，除加權平均數外）
經營租賃(1)
融資租賃(2)
經營租賃(1)
融資租賃(2)
租入資產$631 $77 $390 $— 
Non-underlying items135 6 144 — 
開多期權負債664 17 416 — 
租賃負債的總額$799 $23 $560 $— 
加權平均剩餘租賃期限6.0年4.6年5.0年— 
加權平均折扣率4 %5 %4 %— %
(1) 經營租賃的ROU資產包括在“其他資產”中，經營租賃的租賃負債包括在“應計費用和其他流動負債”和“其他長期負債”的簡明綜合資產負債表中。
(2) ROU資產的融資租賃包括在「房地產和設備，淨額」中，而融資租賃的租賃負債包括在“應計費用和其他流動負債”和“其他長期負債” 在我們的簡明合併資產負債表中。

2024年9月30日之前，我們的租賃最低租金支付如下：
經營租賃融資租賃
財政年度:(以百萬計)
剩餘2024$35 $— 
2025172 7 
2026172 6 
2027153 6 
2028102 6 
此後285 — 
總費用$919 $25 
減：現值折扣(120)(2)
租賃負債$799 $23 

經營租賃金額包括我們不可取消的辦公室和idc概念設施的最低租金支付。金融租賃金額包括我們不可取消的計算機設備的最低租金支付。所呈現的金額與合同條款一致，不預計與我們現有租賃協議下的實際結果有顯著差異。


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16
目錄
貝寶控股有限公司
基本財務報表註釋（續）
（未經審計）
注7—其他財務報表細節

加密資產保障責任及相應的保障資產

我們允許在某些市場上的客戶買入、持有、賣出、兌換、接收和發送某些加密貨幣，以及使用加密貨幣銷售所得款項來支付結賬時的購買。這些加密貨幣包括比特幣、以太幣、比特幣現金、萊特幣和paypal美元指數穩定幣（統稱爲 我們的客戶的加密貨幣資產）。我們與第三方合作，這些第三方是持有牌照的信託公司，提供特定的保管服務，包括保存我們客戶的加密密鑰信息、保護客戶的加密貨幣資產，防止其丟失或被盜，包括對某些類型的損失提供賠償。我們的第三方保管人將加密貨幣資產保存在paypal名下的託管帳戶中，以造福於paypal的客戶。我們會對客戶的加密貨幣資產進行內部記錄，包括每位客戶在該託管帳戶中擁有的加密貨幣數量和類型。截至2024年9月30日，我們利用 兩個 第三方保管人；因此，如果這些保管人無法按照我們的協議履行，就會存在集中風險。

由於加密貨幣涉及的獨特風險，包括技術、法律和監管風險，我們確認存在一項加密資產保護責任，以反映我們保管客戶受益的加密資產的義務，該義務記錄在我們的簡明合併資產負債表中的待攤費用和其他流動負債中。我們還確認相應的保管資產，該資產記錄在我們的簡明合併資產負債表中的預付費用和其他流動資產中。加密資產保護責任和相應的保管資產是根據在我們確定爲資產負債表日期主要市場的活躍交易所上對基礎加密資產的報價價格，以重複基礎計量和記錄的。相應的保管資產可能會調整以反映損失事件（如適用）。 截至2024年9月30日和2023年12月31日，公司尚未發生任何損失事件，因此，加密資產保護責任和相應的保管資產按相同價值記錄。

以下表格彙總了截至2024年9月30日和2023年12月31日，我們持有以造福客戶利益的重要加密資產，以及加密資產保護責任和相應保護資產：
九月三十日
2024		二零三年十二月三十一日
(以百萬計)
比特幣$1,440 $741 
以太坊634 412 
其他 93 88 
加密資產保護責任$2,167 $1,241 
加密資產保護資產$2,167 $1,241 

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17
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)

其他綜合收益（損失）累計

以下表格彙總了截至2024年9月30日為止的三個月內其他綜合收益（損失）累積餘額的變化：
貨幣流動避險未實現利潤（損失）
可供出售債務證券未實現利潤（損失）
外幣
翻譯調整（“CTA”）
淨投資避險CTA利益（損失）
預估稅收（費用）益利總計
（以百萬為單位）
期初余额 $43 $(36)$(999)$390 $(91)$(693)
其他綜合收益（虧損）（未考慮重新分類前）(160)60 275 (149)28 54 
減少：重新分類自累積其他綜合損益（損失）的淨收益（損失）金额
(12)— — — — (12)
當期其他綜合收益（損失） (148)60 275 (149)28 66 
結餘 $(105)$24 $(724)$241 $(63)$(627)

以下表格总结了截至2023年9月30日三个月的其他综合收益（亏损）累计余额变动情况：
現金流量避險之未實現收益（損失）
可供出售債務證券之未實現收益（損失）
外幣貨幣翻譯調整
淨投資避險之可納入綜合損益之未實現收益（損失）
預估所得稅（費用）效益總計
（以百萬為單位）
期初余额 $(23)$(403)$(811)$195 $46 $(996)
其他綜合收益（虧損）（未考慮重新分類前）116 110 (70)35 (40)151 
減少：從AOCI重新分類的淨收益（損失）金額
7 — — — — 7 
當期其他綜合損益（淨收益（損失）） 109 110 (70)35 (40)144 
結餘 $86 $(293)$(881)$230 $6 $(852)

以下表格概述了截至2024年9月30日為止的九個月累積其他全面收益（損失）餘額的變動：
現金流量避險未實現利益（損失）
可供出售債券未實現利益（損失）
外匯CTA
淨投資避險CTA利益（損失）
預估稅收（支出）效益總計
（以百萬為單位）
期初余额 $(56)$(134)$(731)$191 $(16)$(746)
其他綜合收益（虧損）（未考慮重新分類前）(39)117 7 50 (47)88 
減少：從綜合損益重新分類的淨利（損失）金額
10 (41)— — — (31)
當前期其他綜合收益（損失） (49)158 7 50 (47)119 
結餘 $(105)$24 $(724)$241 $(63)$(627)

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18
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)

以下表格概述了截至2023年9月30日結束的九個月中其他綜合收益（損失）累計餘額的變化:
現金流套期交易未實現利益（損失）
可供出售債券未實現利益（損失）
外幣換算調整
凈投資套期交易會計利益（損失）
估計稅收（費用）收益總計
（以百萬為單位）
期初余额 $111 $(591)$(575)$(1)$128 $(928)
其他綜合收益（虧損）（未考慮重新分類前）92 273 (306)231 (122)168 
其他：從AOCI重分類的淨利（損失）金額
117 (25)— — — 92 
當期其他綜合損益的淨金額 (25)298 (306)231 (122)76 
結餘 $86 $(293)$(881)$230 $6 $(852)

以下表格提供有關以下所示期間的AOCI重新分類的詳細資訊：
有關AOCI元件的詳細資料 
從綜合收益重分類的盈利（虧損）金額
財務報表中受影響的損益項目
截至9月30日的三個月截至9月30日的九個月
2024202320242023
（以百萬為單位）
現金流量避險的淨收益（損失）—外幣兌換合約
$(12)$7 $10 $117 淨收入
投資取得淨利（損失）
— — (41)(23)淨收入
投資取得淨利（損失）
— — — (2)其他收入（費用），淨額
(12)7 (31)92 稅前收入
— — — — 所得稅支出
本期的總重新分類金額$(12)$7 $(31)$92 凈利潤（損失）

其他收入（支出），净额

下表調和了以下所提呈期間內其他收入（費用）元件：
 截至9月30日的三個月截至9月30日的九個月
 2024202320242023
（以百萬為單位）
利息收入$183 $124 $514 $348 
利息費用(106)(86)(285)(260)
戰略投資之淨收益（損失）(171)24 (226)205 
其他14 11 32 25 
其他收入（費用），淨額$(80)$73 $35 $318 


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19
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)
註8—現金及現金等價物、所有基金類型應收款項和客戶賬戶、以及投資
下表彙總了截至2024年9月30日和2023年12月31日的我們現金及現金等價物、應收基金、客戶帳戶、短期投資和長期投資的資產情況：
 九月三十日，
2024		12月31日，
2023
（以百萬為單位）
現金及現金等價物(1)
$7,272 $9,081 
應收款項和客戶帳戶：
現金及現金等價物(2)
$14,161 $12,750 
定期存款108 82 
可供出售債務工具14,776 15,708 
所有基金类型應收款項10,137 10,395 
總應收款項及客戶帳戶$39,182 $38,935 
短期投資：
定期存款$186 $128 
可供出售債務工具4,360 4,848 
限制性現金1 3 
戰略性投資100 — 
短期投資總額$4,647 $4,979 
長期投資：
定期存款$15 $45 
可供出售債務工具2,660 1,391 
戰略性投資1,607 1,837 
總長期投資$4,282 $3,273 
(1) 包括 $70百萬和$777截至2024年9月30日和2023年12月31日，可供出售的擁有原始到期日不到________的債券總額為________萬美元。 。 截至2024年9月30日和2023年12月31日，短於________的可供出售債券總額為________。
(2) 包括 $49百萬和$399百萬可供出售的有限期債券，其原始到期日分別為2024年9月30日和2023年12月31日。 。 截至2024年9月30日和2023年12月31日，原始到期日為少於或等於的可供出售有限期債券。



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20
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)
截至2024年9月30日和2023年12月31日為止，我們的可供出售債務證券估計公平價值，包括現金及現金等價物、所有基金类型、應收賬款和客戶帳戶、短期投資和長期投資，數據如下：
 
2024年9月30日(1)
 毛額
攤銷後成本
成本		毛額
未實現收益
收益		毛額
未實現收益
虧損		估價
公平價值
（以百萬為單位）
現金及現金等價物：
商業本票$70 $— $— $70 
應收款項和客戶帳戶:
美國政府和機構證券6,376 10 (4)6,382 
外國政府和機構證券74 — — 74 
公司債券380 — — 380 
抵押支持和資產支持證券3,389 12 (2)3,399 
市政有價證券645 2 — 647 
商業本票3,467 2 — 3,469 
短期投資：
美國政府和機構證券337 — (4)333 
外國政府和機構證券24 — — 24 
公司債券1,196 — (2)1,194 
按揭支持證券和資產支持證券767 5 (1)771 
商業本票2,037 1 — 2,038 
長期投資：
美國政府和機構證券235 — — 235 
外國政府和機構證券184 1 (1)184 
公司債券1,564 5 (1)1,568 
按揭支持證券和資產支持證券672 1 — 673 
總可供出售債務證券(2)
$21,417 $39 $(15)$21,441 
(1) 「—」表示在特定持倉中淨未實現收益或虧損低於100萬美元。
(2) 不包括根据公允价值选择计量的外币计价可供出售债务证券。请参阅“附註9—資產和負債的公允價值衡量。

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21
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)
 
二零三年十二月三十一日(1)
 毛重
攤銷
成本		毛重
未實現
收益		毛重
未實現
損失		估計
公平價值
(以百萬計)
現金及現金等值：
美國政府和機構證券$428 $— $— $428 
商業紙349 — — 349 
應收資金和客戶賬戶：
美國政府和機構證券8,549 8 (79)8,478 
外國政府及機構證券620 — (8)612 
企業債務證券1,507 — (18)1,489 
資產抵押證券1,421 4 (2)1,423 
市政證券639 1 (2)638 
商業紙2,846 4 (1)2,849 
短期投資：
美國政府和機構證券632 — (9)623 
外國政府及機構證券353 — (6)347 
企業債務證券1,494 1 (13)1,482 
資產抵押證券719 3 (4)718 
商業紙1,678 1 (1)1,678 
長期投資：
美國政府和機構證券188 — (8)180 
外國政府及機構證券33 — (1)32 
企業債務證券424 — (6)418 
資產抵押證券759 2 — 761 
可供出售債務證券總計(2)
$22,639 $24 $(158)$22,505 
(1) 「—」表示在特定持倉中淨未實現收益或虧損低於100萬美元。
(2) 不包括根据公允价值选择计量的外币计价可供出售债务证券。请参阅“附註9—資產和負債的公允價值衡量。

攤銷後成本和預估公平價值餘額不包括可供出售債券應收的應計利息，相應金額分別為2024年9月30日和2023年12月31日分別達到其他美元。159 百萬美元和101 百萬美元，在2024年9月30日和2023年12月31日分別合併於我們的簡明綜合資產負債表中的其他流動資產。 其他流動資產 在我們的簡明綜合資產負債表中，已包括在其他流動資產中的$百萬美元在2024年9月30日和2023年12月31日。


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22
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)
截至2024年9月30日和2023年12月31日，我們可供出售債券之純未實現虧損和估計公允價值，包括在現金及現金等價物、應收資金和客戶帳戶、短期投資和長期投資中，本期未認為需要信用損失準備金的所有基金類型中，按照這些特定證券持續虧損的時間長短合計如下：
 
2024年9月30日(1)
少於12個月12個月或更長時間總計
 公平價值毛額
未實現收益
虧損		公平價值毛額
未實現收益
虧損		公平價值毛額
未實現收益
虧損
（以百萬為單位）
現金及現金等價物：
商業本票$20 $— $— $— $20 $— 
應收款項和客戶帳戶:
美國政府和機構證券2,507 (1)840 (3)3,347 (4)
外國政府和機構證券74 — — — 74 — 
公司債券120 — 50 — 170 — 
按揭支持證券和資產支持證券899 (1)4 (1)903 (2)
市政有價證券61 — 36 — 97 — 
商業本票674 — — — 674 — 
短期投資：
美國政府和機構證券— — 333 (4)333 (4)
公司債券386 — 174 (2)560 (2)
按揭支持證券和資產支持證券187 — 50 (1)237 (1)
商業本票697 — — — 697 — 
長期投資：
美國政府和機構證券235 — — — 235 — 
外國政府和機構證券30 — 34 (1)64 (1)
公司債券525 (1)9 — 534 (1)
按揭支持證券和資產支持證券348 — — — 348 — 
總可供出售債務證券$6,763 $(3)$1,530 $(12)$8,293 $(15)
(1) 「—」表示在特定頭寸中的未實現損失或公允價值不到100萬美元。


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23
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)
 
二零三年十二月三十一日(1)
少於 12 個月12 個月或更長總計
 公平價值毛重
未實現
損失		公平價值毛重
未實現
損失		公平價值毛重
未實現
損失
(以百萬計)
現金及現金等值：
商業紙$349 $— $— $— $349 $— 
應收資金和客戶賬戶：
美國政府和機構證券2,626 (8)3,917 (71)6,543 (79)
外國政府及機構證券36 — 451 (8)487 (8)
企業債務證券100 — 1,364 (18)1,464 (18)
資產抵押證券253 — 473 (2)726 (2)
市政證券196 (1)156 (1)352 (2)
商業紙1,088 (1)— — 1,088 (1)
短期投資：
美國政府和機構證券— — 296 (9)296 (9)
外國政府及機構證券— — 347 (6)347 (6)
企業債務證券194 — 797 (13)991 (13)
資產抵押證券131 — 144 (4)275 (4)
商業紙737 (1)— — 737 (1)
長期投資：
美國政府和機構證券— — 180 (8)180 (8)
外國政府及機構證券— — 32 (1)32 (1)
企業債務證券120 — 120 (6)240 (6)
資產抵押證券109 — 195 — 304 — 
可供出售債務證券總計$5,939 $(11)$8,472 $(147)$14,411 $(158)
(1) “—”表示在特定職位的未實現損失或公平價值低於100萬美元。

未實現損失並未納入收入核算，因為我們既不打算賣出這些證券，也不預期在收回其攤銷成本基礎之前將需要出售，其公平價值下降主要是由於市場利率期貨的變化，而不是信用損失。我們將繼續監控投資組合的表現，並評估是否已出現預期信用損失而導致減值。

截至 2024 年 9 月 30 日止的三個月內，我們收到了 $7.2銷售及到期可供出售債務證券的收益數十億元，並產生最低限額的實現盈利及虧損總額。截至二零二四年九月三十日止九個月內，我們收到了 $27.4可供出售債務證券的銷售及到期數十億元收益，並產生的實現虧損總額為 $43 百萬和最低收益。截至 2023 年 9 月 30 日止的三個月內，我們收到了 $5.6 銷售及到期可供出售債務證券的收益數十億元，並產生最低限額的實現盈利及虧損總額。截至 2023 年 9 月 30 日止的九個月內，我們收到了 $17.0可供出售債務證券的銷售及到期數十億元收益，並產生的實現虧損總額為 $25 百萬和最低收益。使用特定的識別方法確定實現收益和虧損總額。


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24
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)
我們的可供出售債務證券，包括現金及現金等價物、應收款項和客戶帳戶、短期投資，以及按合約到期日歸類的長期投資，如下所示：
 2024年9月30日
攤銷後成本公平價值
（以百萬為單位）
一年或以下 $11,806 $11,804 
After one year through five years5,879 5,900 
五年後至十年後3,130 3,135 
十年後602 602 
總計$21,417 $21,441 
實際到期日可能與合約到期日不同，因為某些證券可能會被提前償還。

投資相關的補充現金流量資訊

於2024年9月30日結束的九個月內，未反映於簡明綜合現金流量表中的非現金投資交易包括購買尚未結算、總值$75百萬的投資。

戰略投資

我們的戰略投資包括具市場性的股票投資，這些股票是公開上市的；以及非具市場性的股票投資，主要為對私人公司的投資。我們的具市場性股票投資擁有易於確定的公允價值，並在我們的簡明綜合資產負債表上列示為長期投資，按公允價值記錄變動的公允價值的匯兌在我們的簡明合併損益表的其他收入（支出）中。具市場性股票投資總計 $17百萬和$24 分別為百萬美元。

我們的非流通股權證券在我們的簡明綜合賬戶財務狀況表上被記錄為短期和長期投資。截至2024年9月30日和2013年12月31日，我們的非流通股權證券初始價值分別為$1.7 分別於2024年6月30日和2023年12月31日，公司已將持有金額為10億和20億的可供出售金融資產作為回購協議的抵押物。參閱附註12-回購協議。1.8 十億美元。截至2024年9月30日和2013年12月31日，我們分別持有的非流通股權證券價值為$208 百萬美元和182 百萬，其中我們有權對投資者施加重大影響力，但無法控制。我們按權益法會計方法核算這些股權證券。其餘的非流通股權證券沒有易於確定的公允價值，我們將這些股權投資當作成本減去損耗（如有），並就相同或類似投資對同一發行者進行觀察價格變動帶來的更變進行調整（“計量替代法”）。我們將對這些投資的所有收益和損失，實現和未實現，以及我們按權益法核算的投資收益或損失中分擔的部分，於簡明綜合損益表的其他收入（費用），淨顯示。

測量替代調整

我們根據2024年和2023年九月30日結束的三個月和九個月，在「計量替代方案」下認列非市場流通權益證券的攜帶價值調整如下：
截至9月30日的三個月截至9月30日的九個月
 2024202320242023
（以百萬為單位）
期初帳面金額$1,635 $1,691 $1,631 $1,687 
與非市場流通性權益證券相關之調整：
淨增加額(1)
20 4 85 30 
總未實現收益2 — 5 23 
未實現淨損失和減損(175)(15)(239)(60)
期末攜帶金額$1,482 $1,680 $1,482 $1,680 
(1) 淨增加項目包括證券購買、因出售證券減少、以及在隨後選擇或不再適用計量選擇時重新分類。

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25
目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)

以下表格概述了分別於2024年9月30日和2023年12月31日持有的依據計量選擇方案核算的非上市股權證券造成的累計毛未實現收益、累計毛未實現損失和減值。
九月三十日，
2024		12月31日，
2023
（以百萬為單位）
累積的未實現損益 $1,172 $1,168 
累積的未實現虧損和減值$(521)$(283)

戰略投資未實現收益（損失），不包括使用股權法會計的部分。

下表總結了截至2024年和2023年9月30日持有的可市場化和不可市場化權益證券的淨未實現收益（損失），不包括使用權益法計量的部分。
 截至9月30日的三個月截至9月30日的九個月
 2024202320242023
（以百萬計）
淨未實現收益（損失）$(171)$13 $(242)$200 

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26
目錄
貝寶控股有限公司
基本財務報表註釋（續）
（未經審計）
注意9—資產和負債的公允價值衡量
財務資產和負債按照公允價值進行定期衡量和記錄
以下表格總結了截至2024年9月30日和2023年12月31日按照重複性基礎計量的我們的金融資產和負債的公允價值。

2024年9月30日
在活躍市場中
現行市場
相同的資產
(一級)
對於相同的重要其他方
可觀察輸入
（三級）
（以百萬計）
資產：   
現金及現金等價物(1)
商業票據$70 $— $70 
短期投資(2):
美國政府和機構債券333 — 333 
外國政府及機構債券24 — 24 
企業債券1,194 — 1,194 
按揭支持證券和資產支持證券771 — 771 
商業票據2,038 — 2,038 
所有短期投資4,360 — 4,360 
102.22(3):
美國政府和機構債券6,382 — 6,382 
外國政府和機構證券398 — 398 
企業債券530 — 530 
按揭支持和資產支持證券3,399 — 3,399 
市政債券647 — 647 
商業票據3,469 — 3,469 
應收款項及客戶帳戶的全部基金類型14,825 — 14,825 
衍生品(4)
214 — 214 
加密資產保護資產(4)
2,167 — 2,167 
所有基金類型投資(2),(5):
美國政府和機構債券235 — 235 
外國政府和機構證券184 — 184 
企業債券1,568 — 1,568 
抵押貸款支持的證券和資產支持的證券673 — 673 
可變現股份17 17 — 
總的長期投資2,677 17 2,660 
所有財務資產$24,313 $17 $24,296 
負債：
衍生品(4)
$161 $— $161 
加密資產保障責任(4)
2,167 — 2,167 
總金融負債$2,328 $— $2,328 
(1) 不包括現金$7.2 十億美元，未按公允價值計量和記錄。
(2) 排除現金限制$1 百萬美元和定期存款美元未按公允價值計量和記錄。201 百萬美元未按公允價值計量和記錄。
(3) 不包括現金、定期存款和所有基金類型的應收款項$24.4 數十億基金應收款項和客戶帳戶未按公允價值計量和記錄。
(4) 衍生資產和負債分別納入我們的簡明綜合資產負債表上的「預付費用和其他流動資產」和「其他資產」以及「應計費用和其他流動負債」和「其他長期負債」中。加密資產保護和相關負債分別記錄在我們的簡明綜合資產負債表上的「預付費用和其他流動資產」和「應計費用和其他流動負債」中。
(5) 排除使用計量備擇方法或權益法覈算的非市場性權益證券$1.7 億美元計量。

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27
目錄
貝寶控股有限公司
基本財務報表註釋（續）
（未經審計）

2023 年 12 月 31 日
的報價
的活躍市場
相同的資產
（等級 1）
重要的其他
可觀測的輸入
（第 2 級）
（以百萬計）
資產：   
現金和現金等價物(1)
美國政府和機構證券$428 $— $428 
商業票據349 — 349 
貨幣市場基金160 160 — 
現金和現金等價物總額937 160 777 
短期投資(2):
美國政府和機構證券623 — 623 
外國政府和機構證券347 — 347 
公司債務證券1,482 — 1,482 
資產支持證券718 — 718 
商業票據1,678 — 1,678 
短期投資總額4,848 — 4,848 
應收資金和客戶帳戶(3):
美國政府和機構證券8,478 — 8,478 
外國政府和機構證券1,118 — 1,118 
公司債務證券1,601 — 1,601 
資產支持證券1,423 — 1,423 
市政證券638 — 638 
商業票據2,849 — 2,849 
應收資金和客戶帳戶總額16,107 — 16,107 
衍生品(4)
141 — 141 
加密資產保護資產(4)
1,241 — 1,241 
長期投資(2), (5):
美國政府和機構證券180 — 180 
外國政府和機構證券32 — 32 
公司債務證券418 — 418 
資產支持證券761 — 761 
有價股權證券24 24 — 
長期投資總額1,415 24 1,391 
金融資產總額$24,689 $184 $24,505 
負債：
衍生品(4)
$131 $— $131 
加密資產保護負債(4)
1,241 — 1,241 
金融負債總額$1,372 $— $1,372 
(1) 不包括現金$8.1 未以公允價值計量和記錄的數十億。
(2) 排除現金限制$3 百萬美元和定期存款美元未按公允價值計量和記錄。173 百萬美元未按公允價值計量和記錄。
(3) 不包括現金、定期存款和所有基金類型的應收款項$22.8 數十億基金應收款項和客戶帳戶未按公允價值計量和記錄。
(4) 衍生資產和負債分別納入我們的簡明綜合資產負債表上的「預付費用和其他流動資產」和「其他資產」以及「應計費用和其他流動負債」和「其他長期負債」中。加密資產保護和相關負債分別記錄在我們的簡明綜合資產負債表上的「預付費用和其他流動資產」和「應計費用和其他流動負債」中。
(5) 排除使用計量備擇方法或權益法覈算的非市場性權益證券$1.8 億美元計量。

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28
目錄
貝寶控股有限公司
基本財務報表註釋（續）
（未經審計）

Our financial assets classified within Level 1 are valued using quoted prices for identical assets in active markets. There are no active markets for our crypto asset safeguarding liability or the corresponding safeguarding asset. Accordingly, we have valued the asset and liability using quoted prices on the active exchange that we have identified as the principal market for the underlying crypto assets (Level 2). 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 observable inputs where applicable, such as currency rates, interest rate yield curves, option volatility, and equity prices (Level 2).

As of September 30, 2024 and December 31, 2023, we did not have any assets or liabilities requiring measurement at fair value on a recurring basis with significant unobservable inputs 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 (loss) 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 and amortized cost of our available-for-sale debt securities under the fair value option as of September 30, 2024 and December 31, 2023:
 September 30, 2024December 31, 2023
Amortized CostFair ValueAmortized CostFair Value
(In millions)(In millions)
Funds receivable and customer accounts$478 $474 $625 $618 

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 and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Funds receivable and customer accounts$23 $(5)$8 $6 

ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS

The following tables summarize our assets held as of September 30, 2024 and December 31, 2023 for which a non-recurring fair value measurement was recorded during the nine months ended September 30, 2024 and the year ended December 31, 2023, respectively:
September 30, 2024
Significant Other
Observable Inputs
(Level 2)
Significant Other Unobservable Inputs (Level 3)
(In millions)
Loans and interest receivable, held for sale$471 $471 $— 
Non-marketable equity securities measured using the Measurement Alternative(1)
473 94 379 
Total$944 $565 $379 
(1) Excludes non-marketable equity securities of $1.0 billion accounted for under the Measurement Alternative for which no observable price changes occurred during the nine months ended September 30, 2024.

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PayPal Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
December 31, 2023
Significant Other
Observable Inputs
(Level 2)
Significant Other Unobservable Inputs (Level 3)
(In millions)
Loans and interest receivable, held for sale(1)
$563 $— $563 
Non-marketable equity investments measured using the Measurement Alternative(2)
440 131 309 
Other assets(3)
112 112 — 
Total$1,115 $243 $872 
(1) As of December 31, 2023, loans and interest receivable, held for sale were valued using a price-based model. The price was the significant unobservable input and was determined based upon certain loan and risk classifications of the portfolio. Low, high and weighted average prices were all $0.99, measured in relation to $1.00 par.
(2) Excludes non-marketable equity securities of $1.2 billion accounted for under the Measurement Alternative for which no observable price changes occurred during the year ended December 31, 2023.
(3) Consists of ROU lease assets recorded at fair value pursuant to impairment charges that occurred during the year ended December 31, 2023.

Beginning with the first quarter of 2024, we measure loans and interest receivable, held for sale using observable inputs, such as the most recent executed prices for comparable loans sold to the global investment firm. Accordingly, loans and interest receivable, held for sale are classified within Level 2 in the fair value hierarchy. Refer to “Note 11—Loans and interest receivable” for additional information on loans and interest receivable, held for sale.

We measure the non-marketable equity securities 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. Non-marketable equity securities that have been remeasured during the period based on observable price changes are classified within Level 2 in the fair value hierarchy because we estimate the fair value based on valuation methods which only include significant inputs that are observable, such as the observable transaction price at the transaction date. The fair value of non-marketable equity securities are classified within Level 3 when we estimate fair value using significant unobservable inputs such as when we remeasure due to impairment and use discount rates, forecasted cash flows, and market data of comparable companies, among others.

We evaluate ROU assets related to leases for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of an ROU asset may not be recoverable. Impairment losses on ROU lease assets related to office operating leases are calculated using estimated rental income per square foot derived from observable market data, and the impaired asset is classified within Level 2 in the fair value hierarchy.

FINANCIAL ASSETS AND LIABILITIES NOT MEASURED AND RECORDED AT FAIR VALUE

Our financial instruments, including cash, restricted cash, time deposits, reverse repurchase agreements, loans and interest receivable, net, certain customer accounts, and long-term debt related to borrowings on our credit facilities, are carried at amortized cost, which approximates their fair value. Our notes receivable had a carrying value of approximately $521 million and fair value of approximately $506 million as of September 30, 2024. Our notes receivable had a carrying value of approximately $513 million and fair value of approximately $474 million as of December 31, 2023. Our term debt (including current portion) in the form of fixed rate notes had a carrying value of approximately $11.8 billion and fair value of approximately $10.2 billion as of September 30, 2024. Our term debt (including current portion) in the form of fixed rate notes had a carrying value of approximately $10.6 billion and fair value of approximately $10.0 billion as of December 31, 2023. If these financial instruments were measured at fair value in the financial statements, cash would be classified as Level 1; restricted cash, time deposits, reverse repurchase agreements, certain customer accounts, and term debt (including current portion) would be classified as Level 2; and the remaining financial instruments would be classified as Level 3 in the fair value hierarchy.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
NOTE 10—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 expenses denominated in foreign currencies, which subjects us to foreign currency exchange risk. We have a foreign currency exposure management program in which we designate certain foreign currency exchange contracts, generally with maturities of 12 months or less, to reduce the volatility of cash flows primarily related to forecasted revenues and expenses denominated in certain 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 or applicable expense line item in the condensed consolidated statements of income (loss) 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 September 30, 2024, we estimated that $106 million of net derivative losses related to our cash flow hedges included in AOCI are expected to be reclassified into earnings within the next 12 months. During the three and nine months ended September 30, 2024 and 2023, 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 hedges

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 gains and losses on the portion of the derivatives included in the assessment of hedge effectiveness is recorded in AOCI as part of foreign currency translation. We exclude 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 flows 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 net investment hedges from AOCI into earnings for any of the periods presented.


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PayPal Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
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 September 30, 2024 and December 31, 2023 was as follows:

 Balance Sheet LocationSeptember 30,
2024		December 31,
2023
(In millions)
Derivative Assets:
Foreign currency exchange contracts designated as hedging instrumentsOther current assets$42 $7 
Foreign currency exchange contracts designated as hedging instrumentsOther assets (non-current)152 77 
Foreign currency exchange contracts not designated as hedging instrumentsOther current assets20 57 
Total derivative assets$214 $141 
Derivative Liabilities:
Foreign currency exchange contracts designated as hedging instrumentsOther current liabilities$111 $64 
Foreign currency exchange contracts not designated as hedging instrumentsOther current liabilities50 67 
Total derivative liabilities$161 $131 

MASTER NETTING AGREEMENTS - RIGHTS OF SET-OFF

Under master netting agreements with certain counterparties to our derivative contracts, repurchase agreements, and reverse repurchase agreements, 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. PayPal has not elected to offset for balance sheet presentation and we present the derivative assets, derivative liabilities, repurchase agreements and reverse repurchase agreements on a gross basis on our condensed consolidated balance sheets. Rights of set-off associated with our derivative contracts represented a potential offset to both assets and liabilities of $19 million as of September 30, 2024 and $38 million as of December 31, 2023.

We have entered into collateral security arrangements with certain counterparties that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. Receivables related to cash collateral posted and payables related to cash collateral received are recognized in other current assets and other current liabilities, respectively, on our condensed consolidated balance sheets. The following table provides the collateral posted and received:
 September 30,
2024		December 31,
2023
(In millions)
Cash collateral posted$138 $80 
Cash collateral received$5 $6 
Non-cash collateral received(1)
$109 $— 
(1) Non-cash collateral is related to reverse repurchase agreements and is not included in the condensed consolidated balance sheet unless the counterparty defaults.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)

EFFECT OF DERIVATIVE CONTRACTS ON CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables provide the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:
Three Months Ended September 30,
 20242023
(In millions)
Net revenuesOther income (expense), netNet revenuesOther income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded$7,847 $(80)$7,418 $73 
Gains (losses) on derivatives in cash flow hedging relationship:
Amount of net gains (losses) on foreign currency exchange contracts reclassified from AOCI
(12)— 7 — 
Gains (losses) on derivatives in net investment hedging relationship:
Amount of net gains (losses) on foreign currency exchange contracts excluded from the assessment of effectiveness
— 20 — 20 
Gains (losses) on derivatives not designated as hedging instruments:
Amount of net gains (losses) on foreign currency exchange contracts
— (177)— 54 
Total net gains (losses)
$(12)$(157)$7 $74 

Nine Months Ended September 30,
 20242023
(In millions)
Net revenuesOther income (expense), netNet revenuesOther income (expense), net
Total amounts presented in the condensed consolidated statements of income (loss) in which the effects of cash flow hedges and net investment hedges are recorded$23,431 $35 $21,745 $318 
Gains (losses) on derivatives in cash flow hedging relationship:
Amount of net gains (losses) on foreign exchange contracts reclassified from AOCI
10 — 117 — 
Gains (losses) on derivatives in net investment hedging relationship:
Amount of net gains (losses) on foreign exchange contracts excluded from the assessment of effectiveness
— 61 — 79 
Gains (losses) on derivatives not designated as hedging instruments:
Amount of net gains (losses) on foreign exchange contracts
— (172)— (102)
Total net gains (losses)
$10 $(111)$117 $(23)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)

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 (loss):
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Unrealized net gains (losses) on foreign exchange contracts designated as cash flow hedges
$(160)$116 $(39)$92 
Unrealized net gains (losses) on foreign exchange contracts designated as net investment hedges
(149)35 50 231 
Total unrealized net gains (losses) recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income (loss)
$(309)$151 $11 $323 

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:
September 30,
2024		December 31,
2023
(In millions)
Foreign exchange contracts designated as hedging instruments$6,921 $6,767 
Foreign exchange contracts not designated as hedging instruments11,754 14,025 
Total$18,675 $20,792 

NOTE 11—LOANS AND INTEREST RECEIVABLE

LOANS AND INTEREST RECEIVABLE, HELD FOR SALE

In June 2023, we entered into a multi-year agreement with a global investment firm to sell up to €40 billion of our eligible consumer installment receivables portfolio, including a forward-flow arrangement for the sale of future originations. Loans and interest receivable, held for sale are recorded at the lower of cost or fair value, determined on an aggregate basis, with valuation changes and any associated charge-offs recorded in restructuring and other on our condensed consolidated statements of income (loss). During the nine months ended September 30, 2023, we reclassified approximately $1.2 billion of eligible consumer installment receivables from loans and interest receivable, net to loans and interest receivable, held for sale.

As of September 30, 2024 and December 31, 2023, loans and interest receivable, held for sale was $471 million and $563 million, respectively. During the nine months ended September 30, 2024, we sold $14.7 billion of loans and interest receivable in connection with this agreement.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
LOANS AND INTEREST RECEIVABLE, NET

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., which is made available to consumers as a funding source in their PayPal wallet once they are approved for credit. Additionally, we offer installment credit products at the time of checkout in various markets, including the U.S., several markets across Europe, Australia, and Japan. We offer non interest-bearing installment credit products in these markets as well as interest-bearing installment credit products in the U.S. and Germany. We purchase receivables related to interest-bearing installment loans extended to U.S. consumers by an independent chartered financial institution (“partner institution”) and are responsible for the servicing functions related to that portfolio. During the nine months ended September 30, 2024 and 2023, we purchased approximately $390 million and $643 million in consumer receivables, respectively. As of September 30, 2024 and December 31, 2023, the outstanding balance of consumer receivables, which consisted of revolving and installment loans and interest receivable, was $5.1 billion and $4.8 billion, respectively, net of the participation interest sold to the partner institution of $16 million and $14 million, 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 data, including the consumer’s prior repayment history with our credit products where available. We use delinquency status and trends to assist in making (or, for interest-bearing installment loans in the U.S., to assist the partner institution 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.

Consumer receivables delinquency and allowance

The following tables present the delinquency status and gross charge-offs 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.

September 30, 2024
(In millions, except percentages)
Revolving Loans
Amortized Cost Basis 		Installment Loans Amortized Cost Basis
20242023202220212020TotalPercent
Consumer loans and interest receivable:
Current$2,447 $1,895 $480 $79 $— $— $4,901 95.9%
30 - 59 Days27 41 13 2 — — 83 1.6%
60 - 89 Days 18 17 6 1 — — 42 0.8%
90 - 179 Days 41 33 10 3 — — 87 1.7%
Total$2,533 $1,986 $509 $85 $— $— $5,113 100%
Gross charge-offs for the nine months ended September 30, 2024
$104 $11 $119 $13 $1 $— $248 


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
December 31, 2023
(In millions, except percentages)
Revolving Loans
Amortized Cost Basis 		Installment Loans Amortized Cost Basis
20232022202120202019TotalPercent
Consumer loans and interest receivable:
Current$2,225 $2,045 $289 $— $— $— $4,559 95.4%
30 - 59 Days27 34 4 1 — — 66 1.4%
60 - 89 Days 20 26 4 — — — 50 1.0%
90 - 179 Days 41 55 8 1 — — 105 2.2%
Total$2,313 $2,160 $305 $2 $— $— $4,780 100%
Gross charge-offs for the year ended December 31, 2023
$125 $101 $140 $5 $— $— $371 


The following table summarizes the activity in the allowance for consumer loans and interest receivable for the nine months ended September 30, 2024 and 2023:
September 30, 2024September 30, 2023
Consumer Loans ReceivableInterest Receivable
Total Allowance
Consumer Loans ReceivableInterest Receivable
Total Allowance(1)
(In millions)
Beginning balance$357 $23 $380 $322 $25 $347 
Changes in allowance due to reclassification of loans and interest receivable to or from held for sale— — — (33)— (33)
Provisions175 5 180 271 20 291 
Charge-offs(230)(18)(248)(250)(22)(272)
Recoveries35 — 35 29 — 29 
Other(2)
9 1 10 (5)— (5)
Ending balance$346 $11 $357 $334 $23 $357 
(1) Beginning balances, provisions and charge-offs include amounts related to loans and interest receivable prior to their reclassification to loan and interest receivable, held for sale.
(2) Includes amounts related to foreign currency remeasurement.

The provision for the nine months ended September 30, 2024 for our consumer receivable portfolio was primarily attributable to loan originations during the period for installment loans in Japan and revolving loans in the U.K.
Charge-offs for the nine months ended September 30, 2024 were lower than the same period of the prior year due to improvement of the credit quality of the portfolio.

The provision for current expected credit losses relating to our consumer receivable portfolio is recognized in transaction and credit losses on our condensed consolidated statements of income (loss). The provision for interest receivable for interest earned on our consumer 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.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
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, except for the U.S. consumer interest-bearing installment receivables, which are charged off 120 days past the contractual repayment date. Accounts in bankruptcy are charged off within 60 days after receipt of notification of bankruptcy. Charge-offs are recorded as a reduction to our allowance for loans and interest receivable and subsequent recoveries, if any, are recorded as an increase to the 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 our merchant finance offerings. We purchase receivables related to credit extended to U.S. merchants by a partner institution and are responsible for the servicing functions related to that portfolio. During the nine months ended September 30, 2024 and 2023, we purchased approximately $1.2 billion and $1.3 billion in merchant receivables, respectively. As of September 30, 2024 and December 31, 2023, the total outstanding balance in our pool of merchant loans, advances, and interest and fees receivable was $1.4 billion, and $1.2 billion, net of the participation interest sold to the partner institution of $47 million and $44 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 the partner institution 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.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
Merchant receivables delinquency and allowance

The following tables present the delinquency status and gross charge-offs of 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.

September 30, 2024
(In millions, except percentages)
2024
2023202220212020PriorTotalPercent
Merchant loans, advances, and interest and fees receivable:
Current$1,130 $66 $18 $1 $11 $7 $1,233 91.3%
30 - 59 Days32 17 5 1 — — 55 4.1%
60 - 89 Days 11 9 5 — — — 25 1.8%
90 - 179 Days 11 15 5 — 1 — 32 2.4%
180+ Days— 4 2 — — — 6 0.4%
Total$1,184 $111 $35 $2 $12 $7 $1,351 100%
Gross charge-offs for the nine months ended September 30, 2024
$4 $78 $37 $2 $5 $1 $127 


December 31, 2023
(In millions, except percentages)
2023
2022202120202019TotalPercent
Merchant loans, advances, and interest and fees receivable:
Current$925 $74 $3 $22 $14 $1,038 87.0%
30 - 59 Days37 16 2 2 1 58 4.9%
60 - 89 Days 16 12 1 1 1 31 2.5%
90 - 179 Days 27 28 1 1 1 58 4.9%
180+ Days2 4 1 — 1 8 0.7%
Total$1,007 $134 $8 $26 $18 $1,193 100%
Gross charge-offs for the year ended December 31, 2023
$38 $228 $14 $16 $4 $300 

The following table summarizes the activity in the allowance for merchant loans, advances, and interest and fees receivable for the nine months ended September 30, 2024 and 2023:
September 30, 2024September 30, 2023
Merchant Loans and AdvancesInterest and Fees ReceivableTotal AllowanceMerchant Loans and AdvancesInterest and Fees ReceivableTotal Allowance
(In millions)
Beginning balance$148 $12 $160 $230 $18 $248 
Provisions50 — 50 135 24 159 
Charge-offs(120)(7)(127)(204)(24)(228)
Recoveries21 — 21 19 — 19 
Ending balance$99 $5 $104 $180 $18 $198 


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
The provision for the nine months ended September 30, 2024 was primarily attributable to loan originations during the period partially offset by improvement in credit quality of the PPBL portfolio. In the third quarter of 2024, we updated our expected credit loss model for our PPWC portfolio to reflect its current risk characteristics. These changes did not have a material impact on our provision recorded in the period.

The decrease in charge-offs for the nine months ended September 30, 2024 compared to the same period of the prior year was due to the decrease in originations in the second half of 2023 and improvement in credit quality of the PPBL portfolio.

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 in the last 60 days. Accounts in bankruptcy are charged off within 60 days after receipt of notification of bankruptcy. The provision for credit losses on merchant loans and advances is recognized in transaction and credit losses on our condensed consolidated statements of income (loss), 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 are recorded as a reduction to our allowance for loans and interest receivable and subsequent recoveries, if any, are recorded as an increase to the allowance for loans and interest receivable.

NOTE 12—DEBT

FIXED RATE NOTES

In May 2024, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $1.3 billion. Interest on these notes is payable on June 1 and December 1 of each year, beginning on December 1, 2024.

In June 2023, May 2022, May 2020, and September 2019, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of ¥90 billion (approximately $633 million as of September 30, 2024), $3.0 billion, $4.0 billion and $5.0 billion, respectively.

The notes issued from the May 2024, June 2023, May 2022, May 2020, and September 2019 debt issuances are senior unsecured obligations and are collectively referred to as the “Notes.” We may redeem the Notes in whole, at any time, or in part (except for the June 2023 notes), from time to time, prior to maturity, at their redemption prices. Upon the occurrence of both a change of control of the Company and a downgrade of the Notes below an investment grade rating, we will be required to offer to repurchase each series of Notes at a price equal to 101% of the then outstanding principal amounts, plus accrued and unpaid interest. The Notes are subject to covenants, including limitations on our ability to create liens on our assets, enter into sale and leaseback transactions, and merge or consolidate with another entity, in each case subject to certain exceptions, limitations, and qualifications. Proceeds from the issuance of these Notes may be used for general corporate purposes, which may include funding the repayment or redemption of outstanding debt, share repurchases, ongoing operations, capital expenditures, acquisitions of businesses, assets, or strategic investments.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
As of September 30, 2024 and December 31, 2023, we had an outstanding aggregate principal amount of $11.9 billion and $10.6 billion, respectively, related to the Notes. The following table summarizes the Notes outstanding:

MaturitiesEffective Interest RateSeptember 30,
2024		December 31,
2023
(in millions)
September 2019 debt issuance:
Fixed-rate 2.400% notes
10/1/20242.52%$1,250 $1,250 
Fixed-rate 2.650% notes
10/1/20262.78%1,250 1,250 
Fixed-rate 2.850% notes
10/1/20292.96%1,500 1,500 
May 2020 debt issuance:
Fixed-rate 1.650% notes
6/1/20251.78%1,000 1,000 
Fixed-rate 2.300% notes
6/1/20302.39%1,000 1,000 
Fixed-rate 3.250% notes
6/1/20503.33%1,000 1,000 
May 2022 debt issuance:
Fixed-rate 3.900% notes
6/1/20274.06%500 500 
Fixed-rate 4.400% notes
6/1/20324.53%1,000 1,000 
Fixed-rate 5.050% notes
6/1/20525.14%1,000 1,000 
Fixed-rate 5.250% notes
6/1/20625.34%500 500 
June 2023 debt issuance(1):
¥30 billion fixed-rate 0.813% notes
6/9/20250.89%211 213 
¥23 billion fixed-rate 0.972% notes
6/9/20261.06%162 163 
¥37 billion fixed-rate 1.240% notes
6/9/20281.31%260 262 
May 2024 debt issuance:
Fixed-rate 5.150% notes
6/1/20345.35%850 — 
Fixed-rate 5.500% notes
6/1/20545.66%400 — 
Total term debt$11,883 $10,638 
Unamortized premium (discount) and issuance costs, net(80)(68)
Less: current portion of term debt(2)
(2,460)(1,249)
Total carrying amount of term debt$9,343 $9,321 
(1) Principal amounts represent the U.S. dollar equivalent as of September 30, 2024 and December 31, 2023, respectively.
(2) The current portion of 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 $100 million and $274 million for the three and nine months ended September 30, 2024, respectively. The interest expense recorded for the Notes, including amortization of the debt discount and debt issuance costs, was $84 million and $250 million for the three and nine months ended September 30, 2023, respectively.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
CREDIT FACILITIES

Paidy credit agreement

In February 2022, we entered into a credit agreement (the “Paidy Credit Agreement”) with Paidy as co-borrower, which provided for an unsecured revolving credit facility of ¥60.0 billion, which was modified in September 2022 to increase the borrowing capacity by ¥30.0 billion for a total borrowing capacity of ¥90.0 billion (approximately $633 million as of September 30, 2024). Borrowings under the Paidy Credit Agreement are for use by Paidy for working capital, capital expenditures, and other permitted purposes. 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% to 0.60%. The Paidy Credit Agreement will terminate and all amounts owed thereunder will be due and payable in February 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.

As of September 30, 2024 and December 31, 2023, ¥90.0 billion (approximately $633 million) and ¥50.0 billion (approximately $355 million) was drawn down under the Paidy Credit Agreement, respectively, which was recorded in long-term debt on our condensed consolidated balance sheets. At September 30, 2024, no borrowing capacity was available for the purposes permitted by the Paidy Credit Agreement. During the three and nine months ended September 30, 2024 and 2023, the total interest expense and fees we recorded related to the Paidy Credit Agreement were de minimis.

Other available facilities

As of September 30, 2024 and December 31, 2023, we had short-term borrowings of nil and $359 million, respectively, due to bank overdrafts, which were recorded in accrued expenses and other liabilities on our condensed consolidated balance sheets. The weighted average interest rate on the borrowing was 7.92% as of December 31, 2023. We repaid $400 million of borrowings due to bank overdrafts during the nine months ended September 30, 2024. The total interest expense and fees we recorded related to the borrowings were de minimis.

FUTURE PRINCIPAL PAYMENTS

As of September 30, 2024, the future principal payments associated with our term debt were as follows (in millions):
Remaining 2024$1,250 
20251,211 
20261,412 
2027500 
2028260 
Thereafter7,250 
Total$11,883 

Other than as provided above, there were no significant changes to the information disclosed in our 2023 Form 10-K.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
NOTE 13—COMMITMENTS AND CONTINGENCIES

LITIGATION AND REGULATORY MATTERS

Overview

We are involved in legal and regulatory proceedings on an ongoing basis. Certain 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 September 30, 2024. 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

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 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.

AUSTRAC had notified PPAU that its enforcement team was investigating the matters reported upon by the external auditor in its August 31, 2020 final report. As a resolution of this investigation, on March 17, 2023, AUSTRAC’s Chief Executive Officer accepted an enforceable undertaking from PPAU in relation to the self-reported issues.

The enforceable undertaking does not include a monetary penalty. The entry into and compliance with the enforceable undertaking will not require a change to 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 adversely affect our business.

PPAU is required to deliver an Assurance Action Plan (“AAP”) under the enforceable undertaking to demonstrate that the governance and oversight arrangements following the remedial work completed by PPAU are sustainable and appropriate. The enforceable undertaking requires PPAU to appoint an external auditor. The external auditor was appointed on June 22, 2023 to assess and report on the appropriateness, sustainability and efficacy of the actions to be taken under the AAP. PPAU provided the external auditor’s final report to AUSTRAC on April 16, 2024. The successful completion of the enforceable undertaking is subject to AUSTRAC’s ultimate review and decision based on the external auditor’s final report. We cannot predict the outcome of AUSTRAC’s decision.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
Any failure to comply with the enforceable undertaking could result in penalties or require us to change our business practices.

In February 2022, we received a Civil Investigative Demand (“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.

In January 2023, we received notice of an administrative proceeding and a related request for information from the German Federal Cartel Office (“FCO”) related to terms in PayPal (Europe) S.à.r.l. et Cie, S.C.A.’s contractual terms with merchants in Germany prohibiting surcharging and requiring parity presentation of PayPal relative to other payment methods. We are cooperating with the FCO in connection with this proceeding.

We have received CIDs from the Consumer Financial Protection Bureau (“CFPB”) related to investigation and error-resolution obligations under Regulation E, the presentment of transactions to linked bank accounts, 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.

On November 1, 2023, we received a subpoena from the U.S. SEC Division of Enforcement relating to PayPal USD stablecoin. The subpoena requests the production of documents. We are cooperating with the SEC in connection with this request.

In August 2024, we received a CID from the CFPB related to PayPal Credit. The CID also relates to backup payment options in a digital wallet to pay for goods or services. The CID requests the production of documents and answers to written questions. We are cooperating with the CFPB in connection with this CID.

Legal proceedings

On October 4, 2022, a putative securities class action captioned Defined Benefit Plan of the Mid-Jersey Trucking Industry and Teamsters Local 701 Pension and Annuity Fund v. PayPal Holdings, Inc., et al., Case No. 22-cv-5864, was filed in the U.S. District Court for the District of New Jersey. On January 11, 2023, the Court appointed Caisse de dépôt et placement du Québec as lead plaintiff and renamed the action In re PayPal Holdings, Inc. Securities Litigation (“PPH Securities Action”). On March 13, 2023, the lead plaintiff filed an amended and consolidated complaint. The PPH Securities Action asserts claims relating to our public statements with respect to net new active accounts (“NNA”) results and guidance, and the detection of illegitimately created accounts. The PPH Securities Action purports to be brought on behalf of purchasers of the Company’s stock between February 3, 2021 and February 1, 2022 (the “Class Period”), and asserts claims for alleged violations of Section 10(b) of the Exchange Act against the Company, as well as its former Chief Executive Officer, former Chief Strategy, Growth and Data Officer, and former Chief Financial Officer (collectively, the “Individual Defendants,” and together with the Company, “Defendants”), and for alleged violations of Sections 20(a) and 20A of the Exchange Act against the Individual Defendants. The complaint alleges that certain public statements made by Defendants 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, the Company’s incentive campaigns were susceptible to fraud and led to the creation of illegitimate accounts, which allegedly affected the Company’s NNA results and guidance. The PPH Securities Action seeks unspecified compensatory damages on behalf of the putative class members. Defendants have filed a motion to dismiss the PPH Securities Action, which is fully briefed and pending before the court.

On November 2, 2022, a putative shareholder derivative action captioned Shah v. Daniel Schulman, et al., Case No. 22-cv-1445, was filed in the U.S. District Court for the District of Delaware (the “Shah Action”), purportedly on behalf of the Company. On April 4, 2023, a putative shareholder derivative action captioned Nelson v. Daniel Schulman, et. al., Case No. 23-cv-01913, was filed in the U.S. District Court for the District of New Jersey (the “Nelson Action”) purportedly on behalf of the Company. The Shah and Nelson Actions are based on the same alleged facts and circumstances as the PPH Securities Action, and name certain of our officers, including our former Chief Executive Officer and former Chief Financial Officer, and members of our Board of Directors, as defendants. The Shah and Nelson Actions allege claims for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment, waste of corporate assets, gross mismanagement and violations of the Exchange Act, and seek to recover damages on behalf of the Company. The Shah and Nelson Actions have been stayed pending further developments in the PPH Securities Action.


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PayPal Holdings, Inc.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
On December 20, 2022, a civil lawsuit captioned State of Hawai‘i, by its Office of Consumer Protection, v. PayPal, Inc., and PayPal Holdings, Inc., Case No. 1CCV-22-0001610, was filed in the Circuit Court of the First Circuit of the State of Hawai‘i (the “Hawai‘i Action”). The Hawai‘i Action asserts claims for unfair and deceptive acts and practices under Hawai‘i Revised Statutes Sections 480-2(a) and 481A-3(a). Plaintiff seeks injunctive relief as well as unspecified penalties and other monetary relief. On July 14, 2023, the court denied Defendants’ motion to dismiss the complaint. Trial is scheduled to begin in October 2025.

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 consumers (individually or as class actions), merchants or regulators alleging, among other things, improper disclosure of our prices, rules, or policies, that our practices, prices, rules, policies, or user, product, business or merchant agreements violate applicable law, or that we have acted unfairly 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 legal review and 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.

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Other (specify below)
簡明合併財務報表附註（續）
(未經審計)

paypal已參與由美國小企業管理局管理的美國政府薪酬保護計畫。 在此計畫下發放的貸款由我們合作夥伴的獨立特許金融機構提供資金支援。 我們收取了提供有關這些貸款的服務的費用，並保留與這些活動相關的運作和審計風險。 在特定情況下，我們同意向特許金融機構及其被轉讓人在為此計畫下提供的貸款中的部分負責服務時负擔損失的風險。

在賣出部分我們的消費分期應收賬組合的協議中，若出現違反貸款擔保的情況等特定情況，我們可能需要對已購買貸款的全球投資公司進行賠償或購回貸款。我們可能需要支付的未來最大潛在金額估計等於已出售貸款的當前未償餘額；然而，賠償的最大潛在金額在我們看來並不代表預期的未來風險。截至2024年9月30日，已售出貸款的未清餘額為$2.7十億。賠償條款與已售貸款的到期期限相符。

迄今為止，在我們的賠償條款方面，無論是個別地還是集體地，都沒有產生重大成本。

離題賬簿安排

截至2024年9月30日和2023年12月31日，我們沒有任何可能對我們的合併財務狀況、營運業績、流動性、資本支出或資本資源產生當前或未來重大影響的表外安排。

保護計畫

我們為商家和消費者提供保護計劃，以保護在我們支付平台上完成的某些交易。這些計劃旨在保護商家和消費者免受主要由於欺詐和交易對手履行不如預期而造成的損失。我們的購買保護計劃為消費者提供保護，當購買的物品未到達或與賣家描述不符時，通過對消費者全額退款來賠償。我們的賣家保護計劃為商家提供保護，防止買家聲稱交易未經授權或未收到物品，對符合條件的銷售對象支付款項全額補償。這些保護計劃根據適用的會計準則被視為保證類型的保證，我們會在支付交易完成期間估計和記錄相關成本，包括交易和信用損失。

於2024年9月30日及2023年12月31日，交易損失準備金分別為$89 百萬美元和64 百萬。負客戶餘額準備金於2024年9月30日及2023年12月31日分別為$217 百萬美元和218 百萬。 以下表格顯示了與我們的保護計畫相關的交易損失準備金和負客戶餘額的變動，截至2024年9月30日和2023年的三個和九個月：
截至九月三十日止三個月，截至九月三十日止九個月
2024202320242023
(以百萬計)
初始餘額$270 $346 $282 $278 
供應264 329 783 915 
實現損失(281)(417)(876)(970)
回收53 39 117 74 
終止餘額$306 $297 $306 $297 

備註14—股票回購計畫

截至2024年9月30日止，我們回購了約 77百萬股我們的普通股，金額約為$4.8 億美元，平均成本為$62.29，不包括消費稅。這些股份是在我們於2022年6月授權的股票回購計劃下在公開市場購買的。截至2024年9月30日，根據我們2022年6月股票回購計劃，未來回購我們的普通股仍有約6.1 億美元可供使用。

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目錄
Other (specify below)
簡明合併財務報表附註（續）
(未經審計)

The Inflation Reduction Act of 2022 imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Beginning in the first quarter of 2023, we have reflected the applicable excise tax in treasury stock on our condensed consolidated balance sheets. During the nine months ended September 30, 2024, we recorded $40 million in excise tax within treasury stock on our condensed consolidated balance sheets. The payable associated with the excise tax is a non-cash financing activity which is not reflected on the condensed consolidated statement of cash flows until settled.

NOTE 15—STOCK-BASED PLANS

In May 2024, our stockholders approved the authorization of an additional 20 million shares to the Amended and Restated PayPal Holdings, Inc. 2015 Equity Incentive Award Plan.

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 and nine months ended September 30, 2024 and 2023 was as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(In millions)
Customer support and operations$50 $79 $173 $227 
Sales and marketing30 44 108 132 
Technology and development111 156 366 453 
General and administrative81 115 257 315 
Restructuring and other28 — 88 — 
Total stock-based compensation expense$300 $394 $992 $1,127 
Capitalized as part of internal use software and website development costs$32 $14 $77 $38 
NOTE 16—INCOME TAXES

Our effective tax rate for both the three and nine months ended September 30, 2024 was 23%. Our effective tax rate for the three and nine months ended September 30, 2023 was 18% and 21%, respectively. The difference between our effective tax rate and the U.S. federal statutory rate of 21% in the periods presented was primarily the result of foreign income taxed at different rates, tax expense related to stock-based compensation and other discrete tax adjustments.

Gross unrecognized tax benefits were approximately $2.3 billion and $2.2 billion as of September 30, 2024 and December 31, 2023, respectively. Due to various factors, including uncertainties of the judicial, administrative, and regulatory processes in certain jurisdictions, the timing of the resolution of these unrecognized tax benefits is highly uncertain. It is reasonably possible that within the next twelve months, we may receive additional tax adjustments by various tax authorities or possibly reach resolution of audits in one or more jurisdictions. These adjustments or settlements could result in changes to our unrecognized tax benefits related to positions on prior year tax filings. We also continue to accrue unrecognized tax benefits for certain recurring tax positions.

NOTE 17—RESTRUCTURING AND OTHER

During the first quarter of 2024, management initiated a global workforce reduction intended to streamline operations, focus resources on core strategic priorities, and improve our cost structure. The associated restructuring charges during the three and nine months ended September 30, 2024 were $36 million and $294 million, respectively, and included employee severance and benefits costs and stock-based compensation expense, substantially all of which were accrued for as of September 30, 2024.


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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
The following table summarizes the restructuring reserve activity during the nine months ended September 30, 2024:
 
Employee Severance and Benefits Costs
(In millions)
Accrued liability as of January 1, 2024$— 
Charges(1)
206 
Payments(182)
Accrued liability as of September 30, 2024(2)
$24 
(1) Excludes stock-based compensation expense of $88 million.
(2) Accrued restructuring liability is included in “accrued expenses and other current liabilities” on our condensed consolidated balance sheets.

During the first quarter of 2023, management initiated a global workforce reduction intended to focus resources on core strategic priorities, and improve our cost structure and operating efficiency. The associated restructuring charges during the three and nine months ended September 30, 2023 were $3 million and $120 million, respectively. We primarily incurred employee severance and benefits costs, which were substantially completed by the fourth quarter of 2023.

We continue to review our real estate and facility capacity requirements due to our new and evolving work models. We incurred asset impairment charges of nil in the three and nine months ended September 30, 2024 and $18 million and $61 million in the three and nine months ended September 30, 2023, respectively, due to exiting of certain leased properties, which resulted in a reduction of ROU lease assets and related leasehold improvements. Additionally, we recognized a gain of $17 million due to the sale of an owned property and we also incurred a loss of $12 million related to another owned property held for sale in the nine months ended September 30, 2023.

During the three and nine months ended September 30, 2024, approximately $28 million and $92 million, respectively, of losses were recorded in restructuring and other, which included net loss on sale of loans and interest receivable previously held for sale and fair value adjustments to measure loans and interest receivable, held for sale, at the lower of cost or fair value. During the three and nine months ended September 30, 2023, approximately $15 million and $49 million, respectively, of losses were recorded in restructuring and other, which included fair value adjustments to measure loans and interest receivable, held for sale, at the lower of cost or fair value.


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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that involve expectations, plans, or intentions (such as those relating to future business, future results of operations or financial condition, new or planned features or services, mergers or acquisitions, or management strategies). These forward-looking statements can be identified by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “continue,” “strategy,” “future,” “opportunity,” “plan,” “project,” “forecast,” and other similar expressions. These forward-looking statements involve risks and uncertainties that could cause our actual results and financial condition to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, among others, those discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”), as supplemented in the risk factors set forth below in Part II, Item 1A, Risk Factors, of this Form 10-Q, as well as in our unaudited condensed consolidated financial statements, related notes, and the other information appearing in this report and our other filings with the Securities and Exchange Commission. We do not intend, and undertake no obligation except as required by law, to update any of our forward-looking statements after the date of this report to reflect actual results, new information, or future events or circumstances. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. You should read the following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in conjunction with the unaudited condensed consolidated financial statements and the related notes that appear in this report. Unless otherwise expressly stated or the context otherwise requires, references to “we,” “our,” “us,” “the Company,” and “PayPal” refer to PayPal Holdings, Inc. and its consolidated subsidiaries.

BUSINESS ENVIRONMENT

THE COMPANY

We are a leading technology platform that enables digital payments and personalizes commerce experiences on behalf of merchants and consumers worldwide. PayPal’s mission is to revolutionize commerce globally by creating innovative experiences that are designed to make moving money, selling, and shopping simple, personalized, and secure.

Regulatory environment
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, continue to evolve through legislative and regulatory action and judicial interpretation. New or changing laws and regulations, including 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.

Cybersecurity and information security
Cybersecurity and information security risks for global payments and technology companies like us have increased significantly in recent years. Although we have developed systems and processes designed to protect the data we manage, prevent data loss and other security incidents, and enable us to effectively respond to known and potential risks, and expect to continue to expend significant resources to bolster these protections, we have experienced and expect to continue to experience cybersecurity incidents and remain subject to these risks. There can be no assurance that our security measures will provide sufficient protection or security to prevent breaches or attacks. For additional information regarding our cybersecurity and information security risks, see Part I, Item 1A, Risk Factors in our 2023 Form 10-K, as supplemented and, to the extent inconsistent, superseded below (if applicable) in Part II, Item 1A, Risk Factors of this Form 10-Q.

MACROECONOMIC ENVIRONMENT

The broader implications of the macroeconomic environment, including uncertainty around international conflicts such as the Russia and Ukraine conflict, supply chain shortages, a recession globally or in markets in which we operate, higher inflation rates, higher interest rates, and other related global economic conditions, remain unknown. A deterioration in macroeconomic conditions could continue to increase the risk of lower consumer spending, merchant and consumer bankruptcy, insolvency, business failure, higher credit losses, foreign currency exchange fluctuations, or other business interruption, which may adversely impact our business. If these conditions continue or worsen, they could adversely impact our future financial and operating results.

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OVERVIEW OF RESULTS OF OPERATIONS

The following table provides a summary of our condensed consolidated financial results for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Percent Increase/(Decrease)Nine Months Ended September 30,Percent Increase/(Decrease)
2024202320242023
(In millions, except percentages and per share data)
Net revenues$7,847 $7,418 6 %$23,431 $21,745 8 %
Operating expenses6,456 6,250 3 %19,547 18,445 6 %
Operating income$1,391 $1,168 19 %$3,884 $3,300 18 %
Operating margin18 %16 %**17 %15 %**
Other income (expense), net$(80)$73 (210)%$35 $318 (89)%
Income tax expense301 221 36 %893 774 15 %
Effective tax rate23 %18 %**23 %21 %**
Net income (loss)$1,010 $1,020 (1)%$3,026 $2,844 6 %
Net income (loss) per diluted share$0.99 $0.93 6 %$2.89 $2.55 13 %
Net cash provided by operating activities
$1,614 $1,259 28 %$5,056 $2,229 127 %
All amounts in tables are rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not recalculate using the rounded amounts provided.
** Not meaningful.

THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

Net revenues increased $429 million, or 6%, in the three months ended September 30, 2024 compared to the same period of the prior year driven primarily by growth in total payment volume (“TPV”, as defined below under “Key Metrics”) of 9%.

Total operating expenses increased $206 million, or 3%, in the three months ended September 30, 2024 compared to the same period of the prior year due primarily to higher transaction expense partially offset by a reduction in transaction and credit losses.

Operating income increased $223 million, or 19%, in the three months ended September 30, 2024 compared to the same period of the prior year due to net revenues growing more than operating expenses. Our operating margin was 18% and 16% in the three months ended September 30, 2024 and 2023, respectively, reflecting the positive impact of lower transaction and credit losses.

Net income decreased $10 million, or 1%, in the three months ended September 30, 2024 compared to the same period of the prior year due to the previously discussed increase in operating income of $223 million, partially offset by a decrease in other income (expense), net of $153 million driven primarily by net losses on strategic investments in the current period compared to net gains in the prior period and an increase in income tax expense of $80 million due primarily to higher income before taxes, changes in jurisdictional mix of income, and U.S. income taxed at different rates.

NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

Net revenues increased $1.7 billion, or 8%, in the nine months ended September 30, 2024 compared to the same period of the prior year driven primarily by growth in TPV of 11%.

Total operating expenses increased $1.1 billion, or 6%, in the nine months ended September 30, 2024 compared to the same period of the prior year due primarily to an increase in transaction expense and, to a lesser extent, restructuring and other partially offset by a reduction in transaction and credit losses and customer support and operations expenses.

Operating income increased $584 million, or 18%, in the nine months ended September 30, 2024 compared to the same period of the prior year due to net revenues growing more than operating expenses. Our operating margin was 17% and 15% in the nine months ended September 30, 2024 and 2023, respectively, reflecting the positive impact of operating efficiencies in our business and lower transaction and credit losses, partially offset by the negative impact of an increase in transaction expense.


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Net income increased $182 million, or 6%, in the nine months ended September 30, 2024 compared to the same period of the prior year due to the previously discussed increase in operating income of $584 million partially offset by a decrease of $283 million in other income (expense), net driven primarily by net losses on strategic investments in the current period compared to net gains in the prior period and an increase in income tax expense of $119 million due primarily to higher income before taxes, changes in jurisdictional mix of income, and U.S. income taxed at different rates.

IMPACT OF FOREIGN CURRENCY EXCHANGE RATES
我們在海外有重要的業務運作，主要以英鎊、歐元、澳幣和加幣計價，使我們面臨外匯風險，可能對我們的財務業績產生不利影響。美元對我們海外業務所使用的外幣匯率的升值或貶值將影響我們以這些外幣在美元中進行翻譯的淨收入和支出。截至2024年9月30日止三個月和九個月，我們約有42%的淨收入來自於美國以外的客戶，相比之下，分別為2023年9月30日止三個月和九個月的43%和42%。由於我們在國際上產生了可观的淨收入，所以我們面臨在美國以外進行業務的風險。請參見我們2023年第10-k表格的I部分，第1A項，風險因素，以及本表格10-Q中以下第二部分，第1A項，風險因素中增補和，如有不一致，取代（如適用）。
我們使用先前期間外幣匯率，將當前期間交易貨幣金額的年度外幣匯率變動影響計算到我們的業務中。雖然外幣匯率變動會影響我們的報告結果，但我們有外幣匯率風險管理計劃，其中我們使用指定為現金流量避險的外幣匯率合約，旨在減少來自外幣匯率變動對收益的影響。這些外幣匯率合約的收益和損失在預測的交易影響收益的同一期間被認定為交易收入或營業費用（如適用）。

在2024年9月30日結束的三個月和九個月內，相對於美元的年度外幣兌換匯率變動對我們的業績報告產生了以下影響：
2024年9月30日結束的三個月2024年9月30日結束的九個月
（以百萬為單位）
對淨收入產生有利影響（不包括對沖影響）
$12 $11 
對沖影響(12)10 
對淨收入產生有利影響
— 21 
（不利）對營運費用有利影響
(10)2 
淨（不利）對營運收入有利影響
$(10)$23 

我們進行外幣兌換合約，以幫助減少外幣兌換匯率變動對收益的影響，但無法預測或消除這種風險的總影響。

我們還使用外幣兌換合約，指定為淨投資避險，以減少與我們在某些外國子公司的投資相關的外幣兌換風險。與這些工具相關的利益和損失將繼續留存在累積其他全面收益（損失），直到根據的外國子公司被出售或實質清算。

鑒於我們在以外幣計價的資產和負債上也存在外幣兌換風險，並非我們子公司的功能貨幣，我們有一項額外的外幣兌換風險管理計劃，我們使用外幣兌換合同來幫助抵銷外幣兌換率對我們資產和負債的影響。我們資產和負債的外幣兌換收益和損失記錄在其他收入（費用）、淨額中，並且被外幣兌換合同的收益和虧損所抵銷。這些外幣兌換合同減少了外幣兌換率對我們資產和負債影響的幅度，但並沒有完全消除。

此外，在我們支付平台上發生多種貨幣交易時，我們通常每日設定外幣兌換匯率，如果我們在設定外幣兌換匯率時有誤或由於外幣兌換匯率在我們設定外幣兌換匯率和交易發生時之間波動而面臨財務風險。雖然我們已經制定了一些措施來減輕這些風險，但是無法完全消除在我們平台上設定匯率可能面臨的任何潛在風險的總體影響。


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主要指標和財務結果

關鍵指標

TPV、付款交易次數、活躍賬戶數以及每個活躍賬戶的付款交易次數是管理層用來衡量我們平台規模和產品服務對客戶的相關性的關鍵非財務績效指標（“關鍵指標”），並分別定義如下：

•TPV 是指我們的支付平台上成功完成的支付價值，扣除支付撤銷，或者是由paypal通過合作夥伴支付解決方案啟用的支付價值，不包括網關專屬交易。

•付款交易次數 總支付次數指的是在我們的支付平臺上成功完成的付款總數，扣除了付款撤銷，或是由paypal通過合作夥伴支付解決方案實現的，不包括網關獨家交易。

•安 活躍的賬戶 是直接向paypal或平台訪問夥伴註冊的賬戶，在過去12個月內在我們的平台上完成了交易，不包括獨家交易，平台訪問夥伴是第三方，其客戶通過該第三方的登錄憑據提供對paypal平台或服務的訪問，包括使用Hyperwallet的支付功能的個人和實體。用戶可以在我們的平台上註冊以訪問不同的產品，並且可以註冊多個賬戶以訪問產品。因此，用戶可能擁有多個活躍的賬戶。活動賬戶的數量為管理層提供了對我們平台整體規模的額外視角，但可能與我們的營運結果沒有直接關係。

•每個活躍賬戶的付款交易次數 反映前12個月內付款交易的總次數，除以期末的活躍賬戶數。每個活躍賬戶的付款交易次數，能夠讓管理層瞭解在特定期間內賬戶參與支付活動的平均次數。消費者賬戶或商戶賬戶在我們的平台上進行交易的次數可能大大不同於每個活躍賬戶的平均付款交易次數。

由於我們的交易營業收入通常與TPV增長和在我們支付平台上完成的付款交易數量相關，管理層使用這些指標來獲取關於我們支付平台規模和強度、客戶參與程度以及可能是當前和未來業績的因數的見解。我們提供這些關鍵指標以增強投資者對我們業務和營運結果表現的評估。

我們的主要指標是通過內部公司數據計算的，在我們的支付平台上測量的活動，從多個系統編制而成，包括內部開發或通過業務組合收購的系統。儘管我們的主要指標的衡量基於我們認為是合理的方法和估計，但在我們的規模下全球衡量我們的主要指標存在固有的挑戰和限制。用於計算我們的主要指標的方法需要重要判斷。

我們會定期審查我們計算這些重要指標的過程，並不時進行調整，以提高這些指標的準確性或相關性。例如，我們持續應用旨在檢測並預防我們平台上的欺詐賬戶創建的模型、流程和實踐，並努力建立並加強這些能力。當我們檢測到大量不當活動時，通常會從我們的重要指標中刪除所識別的活動。儘管此類調整可能會影響之前報告的重要指標，但我們通常不會更新之前報告的重要指標，以反映這些後續調整，除非管理層認定過程改進或增強對回顧性影響具有重大意義。


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淨收入
我們的收入分為以下兩個類別：
•交易收入: 基於我們支付平台上完成的TPV，我們向商家和消費者收取基於交易量的淨交易費。TPV的增長直接受我們在支付平台上啟用的支付交易數量影響。我們從商家和消費者那裡產生額外的收入，包括：通過進行貨幣轉換的交易、當我們啟用跨境交易時（即商家和消費者位於不同國家的交易）、為客戶從他們的paypal或Venmo帳戶匯款到他們的銀行帳戶或借記卡進行即時資金轉移、促使加密貨幣的購買和出售、作為賣家違反我們的合同條款（例如，通過欺詐或偽造）的合同補償，以及其他雜費。

•來自其他增值服務的收入: 主要來自我們向商戶和消費者提供的合作夥伴關係、轉介費用、訂閱費用、閘道費用以及其他服務所賺取的收入。我們還從我們的應收貸款組合所賺取的利息和費用，以及從客戶結餘基礎資產所賺取的利息。

淨營業收入分析

我們2024年和2023年9月30日結束的三個月和九個月的淨收入元件如下（以百萬計）：
54685469

交易收入

交易收入在2024年9月30日結束的三個月和九個月中分別增長了41300萬美元，或6％，和17億美元，或9％，與前一年同期相比，主要受TPV和付款交易數量增長的推動，來自我們的Braintree產品和服務，以及在較小程度上來自我們的核心paypal和Venmo產品和服務。2024年9月30日結束的九個月的交易收入也不受對沖活動的淨收益較上年同期低的不利影響。

由於與商家的持續談判，我們預計從我們的Braintree產品和服務中，在2024年第四季以及2025年會有較低的成交量和交易營業收入增長。


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以下圖表展示了截至2024年和2023年9月30日的三個月和九個月各自的主要指標（以百萬為單位）：
6080
*Reflects active accounts at the end of the applicable period.

Number of payment transactions

61766177
TPV
61836184
The following table provides a summary of related metrics:
Three Months Ended September 30,Percent Increase/(Decrease)Nine Months Ended
September 30,		Percent Increase/(Decrease)
2024202320242023
Number of payment transactions per active account61.4 56.6 9 %61.4 56.6 9 %
Percent of cross-border TPV(1)
12 %12 %**12 %12 %**
(1) Cross-border TPV occurs primarily between two PayPal accounts in different countries and includes transactions initiated through our Xoom product.
** Not meaningful

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We had active accounts of 432 million and 428 million as of September 30, 2024 and 2023, respectively. Our total number of payment transactions was 6.6 billion and 6.3 billion for the three months ended September 30, 2024 and 2023, respectively, an increase of 6%. Our total number of payment transactions was 19.7 billion for the nine months ended September 30, 2024, compared to 18.2 billion in the nine months ended September 30, 2023, an increase of 8%. TPV was $423 billion and $388 billion for the three months ended September 30, 2024 and 2023, respectively, an increase of 9%. TPV was $1.2 trillion for the nine months ended September 30, 2024 compared to $1.1 trillion in the nine months ended September 30, 2023, an increase of 11%.

Transaction revenues growth was lower than the growth in TPV in the three and nine months ended September 30, 2024 compared to the same periods in the prior year due primarily to unfavorable changes in mix from core PayPal products and services and unfavorable impact from foreign exchange fees. For the nine months ended September 30, 2024, these unfavorable impacts to transaction revenues growth were partially offset by favorable impact from Braintree products and services.

Revenues from other value added services

Revenues from other value added services increased $16 million and $6 million in the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year due primarily to an increase in interest earned on certain assets underlying customer account balances resulting primarily from higher interest rates and higher customer balances, partially offset by a decline in the revenue share earned from an independent chartered financial institution. Revenues from other value added services for the nine months ended September 30, 2024 were also impacted by lower interest and fee revenue on our loans receivable portfolio driven by a decrease in receivables related to PayPal Business Loan (“PPBL”) products.

OPERATING EXPENSES

The following table summarizes our operating expenses and related metrics we use to assess the trends in each:
Three Months Ended September 30,Percent Increase/(Decrease)Nine Months Ended September 30,Percent Increase/(Decrease)
2024202320242023
(In millions, except percentages)
Transaction expense $3,841 $3,603 7 %$11,700 $10,427 12 %
Transaction and credit losses352 446 (21)%1,008 1,286 (22)%
Customer support and operations427 474 (10)%1,317 1,454 (9)%
Sales and marketing508 442 15 %1,375 1,343 2 %
Technology and development746 739 1 %2,206 2,203 — %
General and administrative519 507 2 %1,553 1,505 3 %
Restructuring and other63 39 62 %388 227 71 %
Total operating expenses$6,456 $6,250 3 %$19,547 $18,445 6 %
Transaction expense rate(1)
0.91 %0.93 %**0.94 %0.93 %**
Transaction and credit loss rate(2)
0.08 %0.12 %**0.08 %0.11 %**
(1) Transaction expense rate is calculated by dividing transaction expense by TPV.
(2) Transaction and credit loss rate is calculated by dividing transaction and credit losses by TPV.
** Not meaningful.


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Transaction expense

Transaction expense for the three and nine months ended September 30, 2024 and 2023 was as follows (in millions):
81168117
Transaction expense increased by $238 million, or 7%, and $1.3 billion, or 12%, in the three and nine months ended September 30, 2024, respectively, compared to the same periods of the prior year due primarily to the increase in TPV of 9% and 11% for the three and nine months ended September 30, 2024, respectively, as well as unfavorable changes in product mix.

The decrease in the transaction expense rate for the three months ended September 30, 2024 compared to the same period of the prior year was primarily attributable to favorable changes in regional mix, product mix, and certain third-party pricing incentives within our core PayPal products and services as well as favorable changes in merchant mix associated with our unbranded card processing volume.

The slight increase in the transaction expense rate for the nine months ended September 30, 2024 compared to the same period of the prior year was attributable to unfavorable changes in product mix with a higher proportion of TPV from unbranded card processing volume, which generally has higher expense rates than our other products and services, largely offset by favorable changes in regional mix, product mix, and certain third-party pricing incentives within our core PayPal products and services.

For both the three months ended September 30, 2024 and 2023, approximately 37% of TPV was generated outside of the U.S. For both the nine months ended September 30, 2024 and 2023, approximately 36% of TPV was generated outside of the U.S.

Our transaction expense rate is impacted by changes in product mix, merchant mix, regional mix, funding mix, and fees paid to payment processors and other financial institutions. The cost of funding a transaction with a credit or debit card is generally higher than the cost of funding a transaction from a bank or through internal sources such as a PayPal or Venmo account balance or our consumer credit products.


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Transaction and credit losses

The components of our transaction and credit losses for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):
96499650
Transaction and credit losses decreased by $94 million, or 21%, and $278 million, or 22%, in the three and nine months ended September 30, 2024, respectively, compared to the same periods of the prior year.

Transaction losses were $264 million in the three months ended September 30, 2024 compared to $329 million in the three months ended September 30, 2023, a decrease of $65 million, or 20%. Transaction losses were $783 million in the nine months ended September 30, 2024 compared to $915 million in the nine months ended September 30, 2023, a decrease of $132 million, or 14%. Transaction loss rate (transaction losses divided by TPV) was 0.06% for the three and nine months ended September 30, 2024, compared to 0.08% for the three and nine months ended September 30, 2023. The decrease in transaction losses and the associated transaction loss rate in the three and nine months ended September 30, 2024 compared to the same periods of the prior year was primarily due to higher recoveries and lower losses resulting from fewer fraud events in the current period.

Credit losses decreased by $29 million and $146 million in the three and nine months ended September 30, 2024 compared to the same periods of the prior year. The components of credit losses for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
202420232024
2023(3)
Net charge-offs(1)
$81 $163 $295 $407 
Reserve (release) build(2)
7 (46)(70)(36)
Credit losses$88 $117 $225 $371 
(1) Net charge-offs includes principal charge-offs partially offset by recoveries for consumer and merchant receivables.
(2) Reserve (release) build represents change in allowance for principal receivables excluding foreign currency remeasurement.
(3) Includes the reversal of allowance associated with reclassification of certain loans to held for sale.

The provision in the three and nine months ended September 30, 2024 was attributable to loan originations during the period partially offset by improvement in credit quality of loans outstanding. The provision in the three and nine months ended September 30, 2023 was attributable to loan originations during the period and a deterioration in the credit quality of loans outstanding.

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Consumer loan portfolio

In June 2023, we entered into a multi-year agreement with a global investment firm to sell up to €40 billion of United Kingdom (“U.K.”) and other European buy now, pay later loan receivables, consisting of eligible loans and interest receivables, including a forward-flow arrangement for the sale of future originations of eligible loans over a 24-month commitment period (collectively, “eligible consumer installment receivables”). As of September 30, 2024 and 2023, loans and interest receivable, held for sale was $471 million and $2.2 billion, respectively, representing the portion of our installment consumer receivables that we intend to sell.

The consumer loans and interest receivable balance as of September 30, 2024 and 2023 was $5.1 billion and $4.2 billion, respectively, net of participation interest sold, representing an increase of 21%. The increase was driven primarily by growth in our installment credit products in Japan and our revolving credit product in the U.K., partially offset by a decline in our installment credit products in Germany due to the forward flow arrangement with the global investment firm as well as a decrease in our interest-bearing installment credit product in the U.S.

The following table provides information regarding the credit quality of our consumer loans and interest receivable balance:
September 30,
20242023
Percent of consumer loans and interest receivable current
95.9 %95.4 %
Percent of consumer loans and interest receivable > 90 days outstanding(1)
1.7 %2.0 %
Net charge-off rate(2)
4.6 %7.6 %
(1) Represents percentage of balances which are 90 days past the billing date or contractual repayment date, as applicable.
(2) Net charge-off rate is the annualized ratio of net credit losses during the three months ended September 30, 2024 and 2023, excluding fraud losses, on consumer loans as a percentage of the average daily amount of consumer loans and interest receivable balance during the same period.

The decline in net charge-off rate for consumer receivables at September 30, 2024 as compared to September 30, 2023 was due primarily to the improvement in credit quality of the U.S. interest-bearing installment products.

In response to declining performance, a number of risk mitigation strategies were implemented in the third quarter of 2023, which reduced originations for our U.S. interest-bearing installment product. In response to changing portfolio performance, we continue to evaluate and modify our acceptable risk parameters. Changes to such parameters in the second quarter of 2024, combined with enhanced risk monitoring, have resulted in an increase of U.S. interest-bearing installment loan originations back to historical levels.

Merchant loan portfolio

We offer access to merchant finance products for certain small and medium-sized businesses, which we refer to as our merchant finance offerings. Total merchant loans, advances, interest, and fees receivable outstanding, net of participation interest sold, as of September 30, 2024 and 2023 was $1.4 billion, reflecting a slight decline of 4% attributable to slowed originations related to our PPBL product in the U.S. mostly offset by an increase in our PayPal Working Capital product portfolio across countries.

The following table provides information regarding the credit quality of our merchant loans, advances, and interest and fees receivable balance:
September 30,
20242023
Percent of merchant loans, advances, and interest and fees receivable current91.3 %86.7 %
Percent of merchant loans, advances, and interest and fees receivable > 90 days outstanding(1)
2.8 %6.6 %
Net charge-off rate(2)
8.3 %20.4 %
(1) Represents percentage of balances which are 90 days past the original expected or contractual repayment period, as applicable.
(2) Net charge-off rate is the annualized ratio of net credit losses during the three months ended September 30, 2024 and 2023, excluding fraud losses, on merchant loans and advances as a percentage of the average daily amount of merchant loans, advances, and interest and fees receivable balance during the same period.

The increase in the percent of current merchant receivables and decrease in percent of merchant receivables greater than 90 days outstanding and the net charge-off rate for merchant receivables at September 30, 2024 as compared to September 30, 2023 was due primarily to the improvement in the credit quality of the PPBL portfolio.

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In response to declining performance, a number of risk mitigation strategies were implemented throughout 2023, which reduced originations for our PPBL product. In response to changing portfolio performance, we continue to evaluate and modify our acceptable risk parameters. Changes to such parameters, combined with enhanced risk monitoring, have resulted in an increase in PPBL originations in 2024.

For additional information, see “Note 11—Loans and Interest Receivable” in the notes to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Customer support and operations

Customer support and operations expenses for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):
1584515846

Customer support and operations expenses decreased by $47 million, or 10%, and $137 million, or 9%, in the three and nine months ended September 30, 2024, respectively, compared to the same periods of the prior year due primarily to a decline in employee-related costs associated with headcount reduction. The decline in customer support and operations expenses in the nine months ended September 30, 2024 was also impacted by a reduction in other costs incurred related to delivery of our products, including warehouses, shipping, and payment devices and a decrease in contractors and consulting costs, partially offset by an increase in card issuance costs and customer onboarding and compliance costs.

Sales and marketing

Sales and marketing expenses for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):
1655616557

Sales and marketing expenses increased by $66 million, or 15%, and $32 million, or 2%, in the three and nine months ended September 30, 2024, respectively, compared to the same periods of the prior year primarily attributable to higher spend on marketing and brand advertising, including the launch of our PayPal Everywhere advertising campaign, partially offset by a decline in employee-related costs. The increase in the nine months ended September 30, 2024 was also attributable to higher revenue share to our partners.

We expect sales and marketing expenses to increase in the fourth quarter of 2024 as we continue to invest in brand advertising and marketing campaigns.

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Technology and development

Technology and development expenses for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):

1728717288
Technology and development expenses remained consistent in the three and nine months ended September 30, 2024, respectively, compared to the same periods of the prior year. The slight increase in technology and development expenses in the three months ended September 30, 2024 was primarily due to an increase in contractor and consultant costs offset by a decline in employee-related costs associated with headcount reduction. The slight increase in technology and development expenses in the nine months ended September 30, 2024 was driven by increases in cloud computing services utilized in delivering our products and services, amortization expense associated with internally developed software, and software maintenance costs offset by a decline in employee-related costs associated with headcount reduction.

General and administrative

General and administrative expenses for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):

1794317944

General and administrative expenses increased by $12 million, or 2%, and $48 million, or 3%, in the three and nine months ended September 30, 2024, respectively, compared to the same periods of the prior year due primarily to an increase in indirect tax expense and professional services expense. The increase in general and administrative expenses in the nine months ended September 30, 2024 was also attributable to a contingency reserve, partially offset by declines in facilities expense and depreciation expense.

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Restructuring and other

Restructuring and other for the three and nine months ended September 30, 2024 and 2023 were as follows (in millions):

1847418475

Restructuring and other increased by $24 million and $161 million in the three and nine months ended September 30, 2024, respectively, compared to the same periods of the prior year.

During the first quarter of 2024, management initiated a global workforce reduction intended to streamline operations, focus resources on core strategic priorities, and improve our cost structure. The associated restructuring charges during the three and nine months ended September 30, 2024 were $36 million and $294 million, respectively, and included employee severance and benefits costs and stock-based compensation expense, substantially all of which were accrued for as of September 30, 2024. The estimated reduction in annualized employee-related costs associated with the impacted workforce is approximately $575 million, including approximately $155 million in stock-based compensation. We expect to reinvest a portion of the reduction in annual costs associated with the impacted workforce to drive business priorities.

For information on the associated restructuring liability, see “Note 17—Restructuring and Other” in the notes to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

During the first quarter of 2023, management initiated a global workforce reduction intended to focus resources on core strategic priorities, and improve cost structure and operating efficiency. The associated restructuring charges during the three and nine months ended September 30, 2023 were $3 million and $120 million, respectively. We primarily incurred employee severance and benefits costs, which were substantially completed by the fourth quarter of 2023.

We continue to review our real estate and facility capacity requirements due to our new and evolving work models. We incurred asset impairment charges of nil in the three and nine months ended September 30, 2024 and $18 million and $61 million in the three and nine months ended September 30, 2023, respectively, due to exiting certain leased properties, which resulted in a reduction of right-of-use lease assets and related leasehold improvements. In the nine months ended September 30, 2023, we recognized a gain of $17 million due to the sale of an owned property. We also incurred a loss of $12 million upon designation of an owned property as held for sale in the nine months ended September 30, 2023.

During the three and nine months ended September 30, 2024, approximately $28 million and $92 million, respectively, of losses were recorded in restructuring and other, which included net loss on sale of loans and interest receivable previously held for sale and fair value adjustments to measure loans and interest receivable, held for sale, at the lower of cost or fair value. During the three and nine months ended September 30, 2023, approximately $15 million and $49 million, respectively, of losses were recorded in restructuring and other, which included fair value adjustments to measure loans and interest receivable, held for sale, at the lower of cost or fair value.

Other income (expense), net

Other income (expense), net decreased $153 million and $283 million in the three and nine months ended September 30, 2024, respectively, compared to the same periods of the prior year due primarily to net losses on strategic investments in the current period compared to net gains in the prior period, partially offset by higher interest income resulting from an increase in cash balances and interest rates year-over-year.


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Income tax expense

Our effective income tax rate was 23% and 18% for the three months ended September 30, 2024 and 2023, respectively, and 23% and 21% for the nine months ended September 30, 2024 and 2023, respectively. The increases in our effective income tax rate for the three and nine months ended September 30, 2024 compared to the same periods of the prior year were due primarily to changes in jurisdictional mix of income and U.S. income taxed at different rates.

LIQUIDITY AND CAPITAL RESOURCES

We require liquidity and access to capital to fund our global operations, including our customer protection programs, credit products, capital expenditures, investments in our business, potential acquisitions and strategic investments, working capital, and other cash needs. We believe that our existing cash, cash equivalents, and investments, cash expected to be generated from operations, and our expected access to capital markets, together with potential external funding through third-party sources, will be sufficient to meet our cash requirements within the next 12 months and beyond.

SOURCES OF LIQUIDITY

Cash, cash equivalents, and investments

The following table summarizes our cash, cash equivalents, and investments as of September 30, 2024 and December 31, 2023:
September 30, 2024December 31, 2023
(In millions)
Cash, cash equivalents, and investments(1),(2)
$14,493 $15,493 
(1) Excludes assets related to funds receivable and customer accounts of $39.2 billion and $38.9 billion at September 30, 2024 and December 31, 2023, respectively.
(2) Excludes total restricted cash of $1 million and $3 million at September 30, 2024 and December 31, 2023, respectively, and strategic investments of $1.7 billion and $1.8 billion at September 30, 2024 and December 31, 2023, respectively.

Cash, cash equivalents, and investments held by our foreign subsidiaries were $6.9 billion and $10.0 billion at September 30, 2024 and December 31, 2023, or 48% and 64% of our total cash, cash equivalents, and investments as of those respective dates. At December 31, 2023, all of our cash, cash equivalents, and investments held by foreign subsidiaries were subject to U.S. taxation under Subpart F, Global Intangible Low Taxed Income or the one-time transition tax under the Tax Cuts and Jobs Act of 2017. Subsequent repatriations to the U.S. will not be taxable from a U.S. federal tax perspective, but may be subject to state income or foreign withholding tax.

A significant aspect of our global cash management activities involves meeting our customers’ requirements to access their cash while simultaneously meeting our regulatory financial ratio commitments in various jurisdictions. Our global cash balances are required not only to provide operational liquidity to our businesses, but also to support our global regulatory requirements across our regulated subsidiaries. Accordingly, not all of our cash is available for general corporate purposes.

Cash flows

The following table summarizes our condensed consolidated statements of cash flows:
Nine Months Ended September 30,
20242023
(In millions)
Net cash provided by (used in):
Operating activities$5,056 $2,229 
Investing activities(868)1,286 
Financing activities(4,691)(5,993)
Effect of exchange rates on cash, cash equivalents, and restricted cash103 (95)
Net decrease in cash, cash equivalents, and restricted cash
$(400)$(2,573)

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Operating activities

The net cash provided by operating activities of $5.1 billion in the nine months ended September 30, 2024 was due primarily to operating income of $3.9 billion, as well as adjustments for non-cash expenses, including provision for transaction and credit losses of $1.0 billion, stock-based compensation of $947 million, and depreciation and amortization of $783 million. Cash flows from operating activities was also impacted by proceeds from repayments and sales of loans receivable, originally classified as held for sale, of $17.2 billion and net losses from our strategic investments of $226 million. These inflows from operating activities were partially offset by originations of loans receivable, held for sale of $17.2 billion, changes in other assets and liabilities of $647 million, primarily related to actual cash transaction losses incurred during the period, and accretion of discounts on investments, net of amortization of premiums, of $290 million.

The net cash provided by operating activities of $2.2 billion in the nine months ended September 30, 2023 was due primarily to operating income of $3.3 billion, as well as adjustments for non-cash expenses, including provision for transaction and credit losses of $1.3 billion, stock-based compensation of $1.1 billion, and depreciation and amortization of $809 million. Cash flows from operating activities was also impacted by originations of loans receivable, held for sale of $5.7 billion, changes in other assets and liabilities of $865 million, primarily related to actual cash transaction losses incurred during the period, changes in deferred income taxes of $439 million, accretion of discounts on investments, net of amortization of premiums, of $265 million, and net gains from our strategic investments of $205 million, partially offset by proceeds from repayments of loans receivable, originally classified as held for sale, of $3.7 billion.

In the nine months ended September 30, 2024 and 2023, cash paid for income taxes, net was $975 million and $1.1 billion, respectively.

Investing activities

The net cash used in investing activities of $868 million in the nine months ended September 30, 2024 was due primarily to purchases of investments of $20.8 billion, purchases and originations of loans receivable of $15.4 billion, purchases of property and equipment of $480 million, and purchases of reverse repurchase agreements of $299 million, partially offset by maturities and sales of investments of $21.2 billion, proceeds from repayments and sales of loans receivable, originally classified as held for investment, of $14.7 billion, and maturities of reverse repurchase agreements of $226 million. From time to time, we enter into reverse repurchase agreements as a form of secured lending primarily to deploy excess cash.

The net cash provided by investing activities of $1.3 billion in the nine months ended September 30, 2023 was due primarily to proceeds from repayments and sales of loans receivable, originally classified as held for investment, of $21.3 billion and maturities and sales of investments of $16.1 billion, partially offset by purchases and originations of loans receivable of $19.8 billion, purchases of investments of $15.0 billion, changes in funds receivable from customers of $1.0 billion, and purchases of property and equipment of $478 million.

Financing activities

The net cash used in financing activities of $4.7 billion in the nine months ended September 30, 2024 was due primarily to the repurchase of $4.8 billion of our common stock under our stock repurchase program, changes in funds payable and amounts due to customers of $771 million, repayments of borrowings from repurchase agreements of $656 million, repayments of borrowings under financing arrangements of $411 million, and tax withholdings related to net share settlement of equity awards of $271 million. These cash outflows were partially offset by borrowings under financing arrangements of $1.5 billion (including proceeds from the issuance of fixed rate debt in May 2024) and borrowings from repurchase agreements of $656 million. From time to time, we enter into repurchase agreements as a form of secured borrowing primarily to address temporary liquidity needs.

The net cash used in financing activities of $6.0 billion in the nine months ended September 30, 2023 was due primarily to the repurchase of $4.4 billion of our common stock under our stock repurchase program, changes in funds payable and amounts due to customers of $1.3 billion, repayments of borrowings under financing arrangements of $942 million (including principal repayment of fixed rate debt that matured in June 2023 and repayment of borrowings under our Paidy credit agreement), and tax withholdings related to net share settlement of equity awards of $225 million. These cash outflows were partially offset by borrowings under financing arrangements of $829 million, including proceeds from the issuance of fixed rate debt in June 2023 and borrowings under our Paidy credit agreement.


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Effect of exchange rate changes on cash, cash equivalents, and restricted cash

Foreign currency exchange rates for the nine months ended September 30, 2024 and 2023 had a positive impact of $103 million and a negative impact of $95 million, respectively, on cash, cash equivalents, and restricted cash. The positive impact on cash, cash equivalents, and restricted cash in the nine months ended September 30, 2024 was due primarily to the favorable impact of fluctuations in the exchange rate of the U.S. dollar to the British pound. The negative impact on cash, cash equivalents and restricted cash in the nine months ended September 30, 2023 was due primarily to the unfavorable impact of fluctuations in the exchange rate of the U.S. dollar to the Australian dollar, and to a lesser extent, the Chinese yuan and Japanese yen.

Available credit and debt

In May 2024, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $1.3 billion. Proceeds from the issuance of these Notes may be used for general corporate purposes, which may include funding the repayment or redemption of outstanding debt, share repurchases, ongoing operations, capital expenditures, and acquisitions of businesses, assets, or strategic investments. As of September 30, 2024, we had an aggregate principal amount of $11.9 billion in fixed rate debt outstanding with varying maturity dates.

In February 2022, we entered into a credit agreement (the “Paidy Credit Agreement”) with Paidy as co-borrower, which provided for an unsecured revolving credit facility of ¥60.0 billion, which was modified in September 2022 to increase the borrowing capacity by ¥30.0 billion for a total borrowing capacity of ¥90.0 billion (approximately $633 million as of September 30, 2024). As of September 30, 2024 and December 31, 2023, ¥90.0 billion (approximately $633 million) and ¥50.0 billion (approximately $355 million), respectively, was outstanding under the Paidy Credit Agreement. At September 30, 2024, no borrowing capacity was available for the purposes permitted by the Paidy Credit Agreement.

Other than as described above, there were no significant changes to the available credit and debt disclosed in our 2023 Form 10‑K. For additional information, see “Note 12—Debt” in the notes to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Depending on market conditions, we may from time to time issue debt, including in private or public offerings, to fund our operating activities, finance acquisitions, make strategic investments, repurchase shares under our stock repurchase program, or reduce our cost of capital.

We have a cash pooling arrangement with a financial institution for cash management purposes. The arrangement allows for cash withdrawals from the financial institution based upon our aggregate operating cash balances held within the financial institution (“Aggregate Cash Deposits”). The arrangement also allows us to withdraw amounts exceeding the Aggregate Cash Deposits up to an agreed-upon limit. The net balance of the withdrawals and the Aggregate Cash Deposits are used by the financial institution as a basis for calculating our net interest expense or income under the arrangement. As of September 30, 2024, we had a total of $2.2 billion in cash withdrawals offsetting our $2.2 billion in Aggregate Cash Deposits held within the financial institution under the cash pooling arrangement.

Credit ratings

As of September 30, 2024, we continue to be rated investment grade by Standard and Poor’s Financial Services, LLC, Fitch Ratings, Inc., and Moody’s Investors Services, Inc. We expect that these credit rating agencies will continue to monitor our performance, including our capital structure and results of operations. Our goal is to be rated investment grade, but as circumstances change, there are factors that could result in our credit ratings being downgraded or put on a watch list for possible downgrading. If that were to occur, it could increase our borrowing rates, including the interest rate on borrowings under our credit agreements.

CURRENT AND FUTURE CASH REQUIREMENTS

Our material cash requirements include funds to support current and potential: operating activities, credit products, customer protection programs, stock repurchases, strategic investments, acquisitions, other commitments, capital expenditures, and other future obligations.

Credit products

Growth in our portfolio of loans receivable increases our liquidity needs and any inability to meet those liquidity needs could adversely affect our business. We continue to evaluate partnerships and third-party sources of funding for our credit products.

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The Luxembourg Commission de Surveillance du Secteur Financier (the “CSSF”) has agreed that PayPal’s management may designate up to 50% of European customer balances held in our Luxembourg banking subsidiary to fund European, U.K., and U.S. credit activities. As of September 30, 2024, the cumulative amount approved by PayPal to be designated to fund credit activities aggregated to $2.0 billion and represented approximately 27% of European customer balances made available for our corporate use at that date, as determined by applying financial regulations maintained by the CSSF. We may periodically seek to change the designation of amounts of European customer balances for our credit activities, as we deem necessary, based on utilization of the approved funds and anticipated credit funding requirements. Under certain exceptional circumstances, corporate liquidity could be called upon to meet our obligations related to our European customer balances.

In June 2023, we entered into a multi-year agreement with a global investment firm to sell up to €40 billion of our eligible consumer installment receivables portfolio. During the nine months ended September 30, 2024, we sold $14.7 billion of loans and interest receivable in connection with this agreement. See “Note 11—Loans and Interest Receivable” in the notes to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for additional information.

While our objective is to expand the availability of our credit products with capital from external sources, there can be no assurance that we will be successful in achieving that goal.

Customer protection programs

The risk of losses from our customer protection programs are specific to individual consumers, merchants, and transactions, and may also be impacted by regional variations in, and changes or modifications to, the programs, including as a result of changes in regulatory requirements. For the periods presented in these condensed consolidated financial statements included in this report, our transaction loss rate ranged between 0.06% and 0.08% of TPV. Historical loss rates may not be indicative of future results.

Stock repurchases

During the nine months ended September 30, 2024, we repurchased approximately $4.8 billion of our common stock in the open market under our stock repurchase program authorized in June 2022. As of September 30, 2024, a total of approximately $6.1 billion remained available for future repurchases of our common stock under our June 2022 stock repurchase program.

Other considerations

Our liquidity, access to capital, and borrowing costs could be adversely impacted by declines in our credit rating, our financial performance, and global credit market conditions, as well as a broad range of other factors. In addition, our liquidity, access to capital, and borrowing costs could also be negatively impacted by the outcome of any of the legal or regulatory proceedings to which we are a party. See Part I, Item 1A, Risk Factors of our 2023 Form 10-K, as supplemented and, to the extent inconsistent, superseded below in Part II, Item 1A, Risk Factors of this Form 10-Q, as well as “Note 13—Commitments and Contingencies” in the notes to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for additional discussion of these and other risks that our business faces.

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ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the potential for economic losses to be incurred on market risk sensitive instruments arising from adverse changes in market factors such as interest rates, foreign currency exchange rates, and equity investment risk. Management establishes and oversees the implementation of policies governing our investing, funding, and foreign currency derivative activities intended to mitigate market risks. We monitor risk exposures on an ongoing basis.

INTEREST RATE RISK

We are exposed to interest rate risk relating to our investment portfolio and from interest-rate sensitive assets underlying the customer balances we hold on our condensed consolidated balance sheets as customer accounts.

As of September 30, 2024 and December 31, 2023, approximately 50% and 59%, respectively, of our total cash, cash equivalents, and investment portfolio (excluding restricted cash and strategic investments) was held in cash and cash equivalents. The remaining portfolio and assets underlying the customer balances that we hold on our condensed consolidated balance sheets as customer accounts are maintained in interest and non-interest bearing bank deposits, time deposits, and available-for-sale debt securities. We seek to preserve principal while holding eligible liquid assets, as defined by applicable regulatory requirements and commercial law in certain jurisdictions where we operate, equal to at least 100% of the aggregate amount of all customer balances. We do not pay interest on amounts due to customers.

Interest rate movements affect the interest income we earn on cash and cash equivalents, time deposits, and available-for-sale debt securities and the fair value of those securities. A hypothetical 100 basis points increase in interest rates would have resulted in a decrease in the fair value of our cash equivalents and available-for-sale debt securities investment by approximately $76 million and $122 million at September 30, 2024 and December 31, 2023, respectively. Changes in the fair value of our available-for-sale debt securities resulting from such interest rate changes are reported as a component of accumulated other comprehensive income (“AOCI”) and are realized only if we sell the securities prior to their scheduled maturities or the declines in fair values are due to expected credit losses.

As of September 30, 2024 and December 31, 2023, we had an aggregate principal amount of $11.9 billion and $10.6 billion, respectively, in fixed rate debt with varying maturity dates. Since these notes bear interest at fixed rates, they do not result in any financial statement risk associated with changes in interest rates. However, the fair value of these notes fluctuates when interest rates change, increasing in periods of declining interest rates and declining in periods of increasing interest rates.

As of September 30, 2024 and December 31, 2023, we also had revolving credit facilities of approximately $5.6 billion available to us. We are obligated to pay interest on borrowings under these facilities as well as other customary fees, including an upfront fee and an unused commitment fee based on our debt rating. Borrowings under these facilities, if any, bear interest at floating rates. As a result, we are exposed to the risk related to fluctuations in interest rates to the extent of our borrowings. As of September 30, 2024 and December 31, 2023, ¥90.0 billion (approximately $633 million) and ¥50.0 billion (approximately $355 million), respectively, was outstanding under these facilities. A 100 basis points hypothetical adverse change in applicable market interest rates would not have resulted in a material impact to interest expense recorded in the period. For additional information, see “Note 12—Debt” in the notes to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Interest rates may also adversely impact our customers’ spending levels and ability and willingness to pay outstanding amounts owed to us. Higher interest rates often lead to larger payment obligations by customers of our credit products to us, or to lenders under mortgage, credit card, and other consumer and merchant loans, which may reduce our customers’ ability to remain current on their obligations to us and therefore lead to increased delinquencies, charge-offs, and allowances for loans and interest receivable, which could have an adverse effect on our net income (loss).


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FOREIGN CURRENCY EXCHANGE RATE RISK

We have significant operations internationally that are denominated in foreign currencies, primarily the British pound, Euro, Australian dollar, and Canadian dollar, which subject us to foreign currency exchange rate risk and may adversely impact our financial results. We transact in various foreign currencies and have significant international revenues and expenses. In addition, we charge our international subsidiaries for their use of intellectual property and technology and for certain corporate services. Our cash flows, results of operations, and certain of our intercompany balances that are exposed to foreign currency exchange rate fluctuations may differ materially from expectations, and we may record significant gains or losses due to foreign currency fluctuations and related hedging activities. We are generally a net receiver of foreign currencies and therefore benefit from a weakening of the United States (“U.S.”) dollar, and are adversely affected by a strengthening of the U.S. dollar, relative to foreign currencies. We considered the historical trends in foreign currency exchange rates and determined that it was reasonably possible that changes in exchange rates of 10% for all currencies could be experienced in the near term.

We have a foreign currency exchange exposure management program designed to identify material foreign currency exposures, manage these exposures, and reduce the potential effects of currency fluctuations on our consolidated cash flows and results of operations through the execution of foreign currency exchange contracts. These foreign currency exchange contracts are accounted for as derivative instruments; for additional details related to our foreign currency exchange contracts, please see “Note 10—Derivative Instruments” in the notes to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q.

We use foreign currency exchange forward contracts to protect our forecasted U.S. dollar-equivalent earnings and our investment in foreign subsidiaries from adverse changes in foreign currency exchange rates. These hedging contracts reduce, but do not entirely eliminate, the impact of adverse foreign currency exchange rate movements. We designate these contracts as cash flow hedges of forecasted revenues and expenses denominated in certain foreign currencies and net investment hedges for accounting purposes. The derivative’s gain or loss is initially reported as a component of AOCI. Cash flow hedges are subsequently reclassified into revenue or expense in the same period the forecasted transaction affects earnings. The accumulated gains and losses associated with net investment hedges will remain in AOCI until the foreign subsidiaries are sold or substantially liquidated, at which point they will be reclassified into earnings.

If the U.S. dollar weakened by a hypothetical 10% at September 30, 2024 and December 31, 2023, the amount recorded in AOCI related to our foreign currency exchange forward contracts, before taxes, would have been approximately $627 million and $622 million lower, respectively, before considering the offsetting impact of the underlying hedged item.

We have an additional foreign currency exchange management program in which we use foreign currency exchange contracts to help offset the foreign currency exchange risk on 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 currency exchange rate movements on our assets and liabilities. The foreign currency exchange gains and losses on our assets and liabilities are recorded in other income (expense), net, and are offset by the gains and losses on the foreign currency exchange contracts.

Adverse changes in exchange rates of a hypothetical 10% for all foreign currencies would have resulted in a negative impact on income before income taxes of approximately $464 million and $417 million at September 30, 2024 and December 31, 2023, respectively, without considering the offsetting effect of foreign currency exchange contracts. Foreign currency exchange contracts in place as of September 30, 2024 would have positively impacted income before income taxes by approximately $451 million, resulting in a net negative impact of approximately $13 million. Foreign currency exchange contracts in place as of December 31, 2023 would have positively impacted income before income taxes by approximately $400 million, resulting in a net negative impact of approximately $17 million. These reasonably possible adverse changes in exchange rates of 10% were applied to monetary assets, monetary liabilities, and available-for-sale debt securities denominated in currencies other than the functional currencies of our subsidiaries at the balance sheet dates to compute the adverse impact these changes would have had on our income before income taxes in the near term.


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EQUITY INVESTMENT RISK

Our strategic investments are subject to a variety of market-related risks that could substantially reduce or increase the carrying value of the portfolio. As of September 30, 2024 and December 31, 2023, our strategic investments totaled $1.7 billion and $1.8 billion, which represented approximately 11% of our total cash, cash equivalents, and short-term and long-term investment portfolio at those respective dates. Our strategic investments include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies. We are required to record all adjustments to the value of these strategic investments through our condensed consolidated statements of income (loss). As such, we expect volatility to our net income (loss) in future periods due to changes in observable prices and impairment related to our non-marketable equity securities accounted for under the Measurement Alternative. These changes could be material based on market conditions. Additionally, the financial success of our investments in privately held companies is typically dependent on a liquidity event, such as a public offering, acquisition, private sale, or other favorable market event providing the ability to realize appreciation in the value of the investment. A hypothetical adverse change of 10% in the carrying value of our strategic investments as of September 30, 2024, which could be experienced in the near term, would have resulted in a decrease of approximately $171 million to the carrying value of the portfolio. We review our non-marketable equity securities accounted for under the Measurement Alternative for impairment when events and circumstances indicate a decline in fair value of such assets below carrying value. Our analysis includes a review of recent operating results and trends, recent purchases and sales of securities, and other publicly available data, for which we assess factors such as the investees’ financial condition and business outlook, industry performance, regulatory, economic, or technological environment, and other relevant events and factors affecting the investees.

ITEM 4: CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures. Based on the evaluation of our disclosure controls and procedures (as defined in the Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), our principal executive officer and our principal financial officer have concluded that as of September 30, 2024, the end of the period covered by this report, our disclosure controls and procedures were effective.

(b) Changes in internal controls over financial reporting. There were no changes in our internal controls over financial reporting as defined in the Exchange Act Rule 13a-15(f) that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



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PART II: OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

The information set forth under “Note 13—Commitments and Contingencies—Litigation and Regulatory Matters” in the notes to the condensed consolidated financial statements in Part I, Item 1 of this Form 10-Q is incorporated herein by reference.

ITEM 1A: RISK FACTORS

We are subject to various risks and uncertainties, which could materially affect our business, results of operations, financial condition, future results, and the trading price of our common stock. You should read carefully the following information together with the information appearing in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 8, 2024 (“2023 Form 10-K”), as updated by the information appearing in Part II, Item 1A, Risk Factors in our subsequent Quarterly Reports on Form 10-Q as filed with the SEC (“Forms 10-Q”). The following information supplements and, to the extent inconsistent, supersedes some of the information appearing in the Risk Factors section of our 2023 Form 10‑K and Forms 10-Q. These risk factors, as well as our condensed consolidated financial statements and notes thereto and the other information appearing in this report, should be reviewed carefully for important information regarding risks that affect us.

CYBERSECURITY AND TECHNOLOGY RISKS

Cyberattacks and security vulnerabilities could result in serious harm to our reputation, business, and financial condition.

The techniques used to attempt to obtain unauthorized or illegal access to systems and information (including customers’ personal data), disable or degrade service, exploit vulnerabilities, or sabotage systems are constantly evolving. In some circumstances, these attempts may not be recognized or detected until after they have been launched against a target. Unauthorized parties continuously attempt to gain access to our systems or facilities through various means, including through hacking into our systems or facilities or those of our customers, partners, or vendors, and attempting to fraudulently induce users of our systems (including employees, vendor and partner personnel and customers) into disclosing user names, passwords, payment card information, multi-factor authentication application access or other sensitive information used to gain access to such systems or facilities. This information may, in turn, be used to access our customers’ confidential personal or proprietary information and financial instrument data that are stored on or accessible through our information technology systems and those of third parties with whom we partner. This information may also be used to execute fraudulent transactions or otherwise engage in fraudulent actions. Numerous and evolving cybersecurity threats, including advanced and persisting cyberattacks, cyberextortion, distributed denial-of-service attacks, ransomware, spear phishing and social engineering schemes, the introduction of computer viruses or other malware, and the physical destruction of all or portions of our information technology and infrastructure and those of third parties with whom we partner or that are part of our information technology supply chain, are becoming increasingly sophisticated and complex, may be difficult to detect, and could compromise the confidentiality, availability, and integrity of the data in our systems, as well as the systems themselves.

We believe that hostile actors, who may comprise individuals, coordinated groups, sophisticated organizations, or nation state supported entities may target PayPal due to our name, brand recognition, types of data (including sensitive payments- and identity-related data) that customers provide to us, and the widespread adoption and use of our products and services. We have experienced from time to time, and may experience in the future, cybersecurity incidents, including breaches of our security measures, network breaches, and compromise of personally identifiable customer information due to human error, deception, malfeasance, insider threats, system errors, defects, vulnerabilities, or other issues.

Any cybersecurity incidents, including cyberattacks or data security breaches affecting the information technology or infrastructure of companies we acquire or of our customers, partners, or vendors (including data center and cloud computing providers) could have similar negative effects.


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Under payment card network rules and our contracts with our payment processors, if there is a breach of payment card information stored by us or our direct payment card processing vendors, we could be liable to the payment card issuing banks, including for their cost of issuing new cards and related expenses. We have experienced, and may experience in the future, breaches involving customer information for which we have notified, and may notify, regulators, customers and other third parties. These or other cybersecurity breaches and other exploited security vulnerabilities have subjected us and could further subject us to significant costs and third-party liabilities, result in improper disclosure of data and violations of applicable privacy and other laws, require us to change our business practices, cause us to incur significant remediation costs, lead to loss of customer confidence in, or decreased use of, our products and services, damage our reputation and brands, divert the attention of management from the operation of our business, result in significant compensation or contractual penalties from us to our customers and their business partners as a result of losses to or claims by them, or expose us to litigation, regulatory investigations, and significant fines and penalties. While we maintain insurance policies intended to help offset the financial impact we may experience from these risks, our coverage may be insufficient to compensate us for all losses caused by security breaches and other damage to or unavailability of our systems.

LEGAL, REGULATORY AND COMPLIANCE RISKS

Our business is subject to extensive government regulation and oversight. Our failure to comply with extensive, complex, overlapping, and frequently changing rules, regulations, and legal interpretations could materially harm our business.

Privacy and Protection of Customer Data

The legal and regulatory environment relating to privacy and data protection laws continues to develop and evolve in ways we cannot predict, including with respect to technologies such as cloud computing, (generative) artificial intelligence, machine learning, cryptocurrency, and blockchain technology. Any failure or alleged failure by us to comply with our privacy policies as communicated to customers or with privacy and data protection laws relating to our collection, use, storage, transfer, or sharing of customer data with third parties could result in proceedings or actions against us by data protection authorities, other government agencies, our customers or others, which could subject us to significant fines, penalties, judgments, and negative publicity, require us to change our business practices, increase the costs and complexity of compliance, result in reputational harm, and materially harm our business. Compliance with inconsistent privacy and data protection laws may also restrict or limit our ability to provide products and services to our customers.

PayPal relies on a variety of compliance methods to transfer personal data of Europe Economic Area individuals to the U.S., including Binding Corporate Rules for internal transfers of certain types of personal data and Standard Contractual Clauses (“SCCs”) as approved by the European Commission for transfers to and from third parties. While PayPal intends to continue to rely on Binding Corporate Rules and SCCs and will evaluate the circumstances under which additional mechanisms, such as the EU-U.S. Data Privacy Framework may be leveraged for transfers of personal data to the U.S., we may be subject to regulatory enforcement actions if our approach is deemed to be noncompliant.

Many jurisdictions in which we operate globally have enacted, or are in the process of enacting, data privacy legislation or regulations aimed at creating and enhancing individual privacy rights. For example, numerous U.S. states have enacted or are in the process of enacting state level data privacy laws and regulations governing the collection, use, and retention of their residents’ personal information. The continued proliferation of privacy laws in the jurisdictions in which we operate is likely to result in a disparate array of privacy rules with unaligned or conflicting provisions, accountability requirements, individual rights, and national or local enforcement powers, which may subject us to increased regulatory scrutiny and business costs and could lead to unintended consumer confusion.

Our credit products expose us to additional risks.

We offer credit products to a wide range of consumers and merchants in the U.S. and various international markets. The financial success of these products depends largely on the effective management of related risk. The credit decision-making process for our consumer credit products uses proprietary methodologies and credit algorithms and other analytical techniques designed to analyze the credit risk of specific consumers based on, among other factors, their past purchase and transaction history with PayPal or Venmo and their credit scores. Similarly, proprietary risk models and other indicators are applied to assess merchants who desire to use our merchant financing offerings to help predict their ability to repay. These risk models may not accurately predict the creditworthiness of a consumer or merchant due to inaccurate assumptions, including those related to the particular consumer or merchant, market conditions, economic environment, or limited transaction history or other data. The accuracy of these risk models and the ability to manage credit risk related to our credit products may also be affected by legal or regulatory requirements, changes in consumer behavior, changes in the economic environment, issuing bank policies, and other factors.

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We generally rely on the activities and charters of unaffiliated financial institutions to provide PayPal and Venmo branded consumer credit and merchant financing offerings to our U.S. customers. As a service provider to these unaffiliated financial institutions, which are federally supervised U.S. financial institutions, we are subject from time to time to examination by their federal banking regulators. In the event of any termination or interruption in a partner bank’s ability or willingness to lend, our ability to offer consumer credit and merchant financing products could be interrupted or limited, which could materially and adversely affect our business. We may be unable to reach a similar arrangement with another unaffiliated financial institution on favorable terms or at all. Obtaining and maintaining the lending licenses required for us to originate such loans ourselves would be a costly, time-consuming and uncertain process, and would subject us to additional laws and regulatory requirements, which could significantly increase our costs and compliance obligations and require us to change our business practices.

Merchant loans under our U.S. PayPal Working Capital (“PPWC”) and PayPal Business Loan (“PPBL”) products and certain U.S. installment loan products are provided by a state-chartered industrial bank under a program agreement with us, and we acquire the receivables generated by those loans from the state-chartered bank after origination. In June 2020, the Federal Deposit Insurance Corporation (“FDIC”) approved a final rule clarifying that loans validly originated by state-chartered banks or insured branches of foreign banks remain valid throughout the lifetime of the loan, reflecting a similar rule finalized by the Office of the Comptroller of Currency (“OCC”) in May 2020 for nationally chartered banks. The final rule reaffirms and codifies the so-called “valid-when-made doctrine,” which provides that the permissibility of an interest rate for a loan is determined when the loan is made and will not be affected by subsequent events such as sale, assignment, or other transfer. While a number of state attorneys general have unsuccessfully challenged these FDIC and OCC rules, there remains some uncertainty whether non-bank entities purchasing loan receivables originated by FDIC-insured, state-chartered banks may rely on federal preemption of state usury laws and other state laws. An adverse outcome of these or similar challenges, or changes to applicable laws and regulations or regulatory policy, could materially impact our U.S. PPWC and PPBL products, certain installment products, and our business.

We are subject to the risk that account holders who use our credit products will default on their payment obligations. The non-payment rate among account holders may increase due to, among other factors, changes to underwriting standards, risk models not accurately predicting the creditworthiness of a user, worsening economic conditions, such as a recession or government austerity programs, increases in prevailing interest rates, and high unemployment rates. Account holders who miss payments often fail to repay their loans, and account holders who file for protection under the bankruptcy laws generally do not repay their loans. Further, laws or regulations may limit the assessment of late fees or penalties on certain credit products, which could negatively impact our revenue share arrangement with an independent chartered financial institution with respect to our U.S. consumer credit products. Any deterioration in the performance of loans facilitated through our platform or unexpected losses on such loans may increase the risk of potential charge-offs, increase our allowance for loans and interest receivable, negatively impact our revenue share arrangement (as discussed above), and materially and adversely affect our financial condition and results of operations.

We currently purchase receivables related to our U.S. PayPal-branded merchant financing offerings and certain U.S. consumer installment loan products and extend credit for our consumer and merchant products outside the U.S. through our international subsidiaries. In June 2023, we entered into a multi-year agreement to sell up to €40 billion of U.K. and European buy now, pay later (“BNPL”) loan receivables originated by PayPal (Europe) and PayPal U.K., consisting of the sale of a substantial majority of the U.K. and European BNPL loan portfolio held on PayPal (Europe)’s balance sheet at the closing of the transaction and a forward-flow arrangement for the sale of future originations of eligible loans, and in October 2023, we began selling those receivables. The sale of future eligible receivables is subject to certain conditions. If these conditions are not satisfied or waived or if the parties are unable to fulfill their obligations under these arrangements, the sale of these receivables could be delayed and we may not realize the expected benefits of this arrangement.

From time to time, we may consider other third-party sources of funding (including asset sales, warehouse facilities, forward-flow arrangements, securitizations, partnerships or other funding structures) for our credit portfolio or other receivables. The availability of such third-party funding is subject to a number of factors, including economic conditions and interest rates, and there can be no assurance that any such funding arrangements can be obtained on favorable terms or at all. If we are unable to fund our credit products or the purchase of the receivables related to our credit products and offerings adequately or in a cost-effective manner, the growth of our credit products and our results of operations and financial condition could be materially and adversely impacted.


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Environmental, social and governance (“ESG”) issues may have an adverse effect on our business, financial condition and results of operations and damage our reputation.

Investors, customers, employees, regulators, legislators and other stakeholders are increasingly focused on ESG matters and related disclosures, including with respect to cybersecurity, data privacy and protection, global talent and climate, and new ESG laws and regulations are expanding mandatory disclosure, reporting and diligence requirements. If we are unable to comply with new laws and regulations or changes to legal or regulatory requirements concerning ESG matters, or fail to meet investor, industry or stakeholder expectations and standards, our reputation may be harmed, customers may choose to refrain from using our products and services, we may be subject to fines, penalties, regulatory or other enforcement actions, and our business or financial condition may be adversely affected. We may also experience additional scrutiny or criticism from investors, customers, partners, media, government entities, and other stakeholders if they perceive PayPal to not have acted appropriately with respect to ESG matters. If our ESG-related data, processes and reporting are incomplete or inaccurate, or if we fail to achieve progress with respect to ESG-related goals on a timely basis, or at all, our reputation, business, financial performance and growth could be adversely affected.

We specifically recognize the inherent physical climate-related risks where we conduct business. Our primary locations may be vulnerable to the adverse effects of climate change. For example, California, where our headquarters are located, has historically experienced, and is projected to continue to experience, extreme weather and natural disaster events more frequently, including drought, water scarcity, flooding, heat waves, wildfires and resultant air quality impacts, and power shutoffs associated with wildfire prevention. Such events may disrupt our business and may cause us to experience additional costs to maintain or resume operations and higher attrition.

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ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

REPURCHASES OF EQUITY SECURITIES

In June 2022, our Board of Directors authorized a stock repurchase program that provides for the repurchase of up to $15 billion of our common stock, with no expiration from the date of authorization. Our stock repurchase program is intended to offset the impact of dilution from our equity compensation programs and, subject to market conditions and other factors, may also be used to make opportunistic repurchases of our common stock to reduce outstanding share count. Any share repurchases under our stock repurchase program may be made through open market transactions, block trades, privately negotiated transactions including accelerated share repurchase agreements or other means at times and in such amounts as management deems appropriate, and will be funded from our working capital or other financing alternatives. Moreover, any stock repurchases are subject to market conditions and other uncertainties and we cannot predict if or when any stock repurchases will be made. We may terminate our stock repurchase program at any time without prior notice.

The stock repurchase activity under our stock repurchase program during the three months ended September 30, 2024 is summarized below:
Total number of shares purchased
Average price
paid per share(1)
Total number of shares purchased as part of publicly announced plans or programsApproximate dollar value of shares that may yet be purchased under the plans or programs
(In millions, except per share amounts)
Balance as of June 30, 2024
$7,857 
July 1, 2024 through July 31, 2024
15.3 $59.79 15.3 6,940 
August 1, 2024 through August 31, 2024
8.0 $67.01 8.0 6,401 
September 1, 2024 through September 30, 2024
4.4 $73.46 4.4 6,081 
Balance as of September 30, 2024
27.7 27.7 $6,081 
(1) Average price paid per share for open market purchases includes broker commissions, but excludes excise tax.

ITEM 3: DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4: MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5: OTHER INFORMATION

None.

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ITEM 6: EXHIBITS

INDEX TO EXHIBITS

Incorporated by Reference
Exhibit
Number		Exhibit DescriptionFormDate FiledFiled Herewith
Amendment and Restatement of PayPal Holdings, Inc. Executive Change in Control and Severance Plan
8-K
7/25/2024
-
Certification of Registrant’s Chief Executive Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002--X
Certification of Registrant’s Chief Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002--X
Certification of Registrant’s Chief Executive Officer, as required by Section 906 of the Sarbanes-Oxley Act of 2002--X
Certification of Registrant’s Chief Financial Officer, as required by Section 906 of the Sarbanes-Oxley Act of 2002--X
101
The following financial information related to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income (Loss), (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows; and (vi) the related Notes to Condensed Consolidated Financial Statements
--X
104Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101--X
+ Indicates a management contract or compensatory plan or arrangement.
* The certifications furnished in Exhibits 32.01 and 32.02 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates them by reference.




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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 PayPal Holdings, Inc.
 Principal Executive Officer:
Date:October 29, 2024By:
/s/ Alex Chriss
  
Alex Chriss
  
President, Chief Executive Officer and Director
 
 
Principal Financial Officer:
Date:October 29, 2024By:
/s/ Jamie Miller
  
Jamie Miller
 
Executive Vice President, Chief Financial Officer
 
 
 Principal Accounting Officer:
Date:October 29, 2024By:
/s/ Christopher Natali
  
Christopher Natali
 Vice President, Chief Accounting Officer
  

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