5 unchanged sentences
We are exposed to interest rate risk relating to our investment portfolio, from interest-rate sensitive assets underlying the customer balances we hold on our condensed consolidated balance sheets as customer accounts, and a portion of our debt.
−Removed: As of March 31, 2026 and December 31, 2025, approximately 60% and 63%, respectively, of our total cash, cash equivalents, and investment portfolio (excluding strategic investments) was held in cash and cash equivalents.
+Added: As of June 30, 2026 and December 31, 2025, approximately 61% and 63%, respectively, of our total cash, cash equivalents, and investment portfolio (excluding 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.
3 unchanged sentences
In the first quarter of 2026, we refined the methodology of the sensitivity analysis of our cash equivalents and available-for-sale debt securities investment with respect to floating rate securities, particularly the duration estimation methodology.
−Removed: 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 $8 million and $11 million at March 31, 2026 and December 31, 2025, respectively.
+Added: 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 $8 million and $11 million at June 30, 2026 and December 31, 2025, respectively.
Based on the prior methodology, the decrease in the fair value of our cash equivalents and available-for-sale debt securities investment at December 31, 2025 was approximately $171 million.
1 unchanged sentence
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.
−Removed: As of both March 31, 2026 and December 31, 2025, we had an aggregate principal amount of $10.4 billion in fixed rate debt with varying maturity dates.
+Added: As of June 30, 2026 and December 31, 2025, we had an aggregate principal amount of $12.3 billion and $10.4 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 decreasing in periods of increasing interest rates.
−Removed: As of March 31, 2026 and December 31, 2025, we had an aggregate principal amount of $450 million in floating rate debt with a maturity date of March 6, 2028.
−Removed: A hypothetical 100 basis points increase in market interest rates would not have resulted in a material impact to interest expense recorded in the three months ended March 31, 2026.
−Removed: As of both March 31, 2026 and December 31, 2025, we also had revolving credit facilities of approximately $5.6 billion available to us.
+Added: As of both June 30, 2026 and December 31, 2025, we had an aggregate principal amount of $450 million in floating rate debt with a maturity date of March 6, 2028.
+Added: A hypothetical 100 basis points increase in market interest rates would not have resulted in a material impact to interest expense recorded in the three and six months ended June 30, 2026.
+Added: As of both June 30, 2026 and December 31, 2025, 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.
1 unchanged sentence
As a result, we are exposed to the risk related to fluctuations in interest rates to the extent of our borrowings.
−Removed: As of March 31, 2026 and December 31, 2025, ¥90.0 billion (approximately $563 million) and ¥90.0 billion (approximately $575 million), respectively, was outstanding under these facilities.
−Removed: 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 three months ended March 31, 2026.
+Added: As of June 30, 2026 and December 31, 2025, ¥90.0 billion (approximately $556 million) and ¥90.0 billion (approximately $575 million), respectively, was outstanding under these facilities.
+Added: 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 three and six months ended June 30, 2026.
For additional information, see “Note 12—Debt” in the notes to the condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.
20 unchanged sentences
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.
−Removed: dollar weakened by a hypothetical 10% at March 31, 2026 and December 31, 2025, the amounts recorded in AOCI related to our foreign exchange contracts, before taxes, would have been approximately $435 million and $456 million lower, respectively, before considering the offsetting impact of the underlying hedged item.
+Added: dollar weakened by a hypothetical 10% at June 30, 2026 and December 31, 2025, the amounts recorded in AOCI related to our foreign exchange contracts, before taxes, would have been approximately $413 million and $456 million lower, respectively, before considering the offsetting impact of the underlying hedged item.
We have an additional balance sheet foreign exchange management program in which we use foreign exchange contracts to help offset the foreign exchange risk on our assets and liabilities denominated in currencies other than the functional currency of our subsidiaries.
1 unchanged sentence
The foreign 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 exchange contracts.
−Removed: A hypothetical adverse change of 10% in exchange rates for all foreign currencies would have resulted in a negative impact on income before income taxes of approximately $490 million and $547 million at March 31, 2026 and December 31, 2025, respectively, without considering the offsetting effect of foreign exchange contracts.
−Removed: Foreign exchange contracts in place as of March 31, 2026 would have positively impacted income before income taxes by approximately $441 million, resulting in a net negative impact of approximately $49 million.
+Added: A hypothetical adverse change of 10% in exchange rates for all foreign currencies would have resulted in a negative impact on income before income taxes of approximately $436 million and $547 million at June 30, 2026 and December 31, 2025, respectively, without considering the offsetting effect of foreign exchange contracts.
+Added: Foreign exchange contracts in place as of June 30, 2026 would have positively impacted income before income taxes by approximately $367 million, resulting in a net negative impact of approximately $69 million.
Foreign exchange contracts in place as of December 31, 2025 would have positively impacted income before income taxes by approximately $476 million, resulting in a net negative impact of approximately $71 million.
3 unchanged sentences
Our strategic investments are subject to a variety of market-related risks that could substantially reduce or increase the carrying value of the portfolio.
−Removed: As of March 31, 2026 and December 31, 2025, our strategic investments totaled $1.8 billion and $1.9 billion respectively, and represented approximately 13% of our total cash, cash equivalents, and short-term and long-term investment portfolio at those respective dates.
+Added: As of June 30, 2026 and December 31, 2025, our strategic investments totaled $1.7 billion and $1.9 billion respectively, and represented approximately 11% and 13% 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.
3 unchanged sentences
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.
−Removed: A hypothetical adverse change of 10% in the carrying value of our strategic investments as of March 31, 2026, which could be experienced in the near term, would have resulted in a decrease of approximately $181 million to the carrying value of the portfolio.
+Added: A hypothetical adverse change of 10% in the carrying value of our strategic investments as of June 30, 2026, which could be experienced in the near term, would have resulted in a decrease of approximately $174 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.
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.