Offset liability

[Table of Contents](#id0d7a71b05ce452ea9fdb54f3cb359c7_7)eBay Inc.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)Fair Value of Derivative Contracts  
The following table presents the fair values of our outstanding derivative instruments as of the dates indicated (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | December 31, |
|   | Balance Sheet Location |  | 2021 |  | 2020 |
| Derivative Assets: |  |  |  |  |  |
| Foreign exchange contracts designated as cash flow hedges | Other current assets |  | $ | 63  |  |  | $ | 12  |  |
|  |  |  |  |  |  |
| Foreign exchange contracts not designated as hedging instruments | Other current assets |  | 22  |  |  | 23  |  |
| Warrant | Warrant asset |  | 444  |  |  | 1,051  |  |
| Foreign exchange contracts designated as cash flow hedges | Other assets |  | 24  |  |  | 14  |  |
| Interest rate contracts designated as cash flow hedges | Other assets |  | —  |  |  | 13  |  |
|  |  |  |  |  |  |
| Total derivative assets |  |  | $ | 553  |  |  | $ | 1,113  |  |
|  |  |  |  |  |  |
| Derivative Liabilities: |  |  |  |  |  |
| Foreign exchange contracts designated as cash flow hedges | Other current liabilities |  | $ | —  |  |  | $ | 17  |  |
|  |  |  |  |  |  |
|  |  |  |  |  |  |
| Foreign exchange contracts not designated as hedging instruments | Other current liabilities |  | 17  |  |  | 25  |  |
| Interest rate contracts designated as cash flow hedges | Other current liabilities |  | —  |  |  | 1  |  |
| Interest rate contracts designated as cash flow hedges | Other liabilities |  | —  |  |  | 1  |  |
|  |  |  |  |  |  |
| Total derivative liabilities |  |  | $ | 17  |  |  | $ | 44  |  |
|  |  |  |  |  |  |
| Total fair value of derivative instruments |  |  | $ | 536  |  |  | $ | 1,069  |  |

  
Under the master netting agreements with the respective counterparties to our derivative contracts, 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. However, we have elected to present the derivative assets and derivative liabilities on a gross basis on our consolidated balance sheet. As of December 31, 2021, the potential effect of rights of set-off associated with the foreign exchange contracts would be an offset to both assets and liabilities by $18 million, resulting in net derivative assets of $92 million and no net derivative liabilities. As of December 31, 2021, there is no effect of rights of set-off associated with the interest rate contracts.   
Effect of Derivative Contracts on Accumulated Other Comprehensive Income  
The following tables present the activity of derivative instruments designated as cash flow hedges as of December 31, 2021 and 2020, and the impact of these derivative contracts on AOCI for the periods indicated (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | December 31, 2020 |  | Amount of Gain (Loss) Recognized in Other Comprehensive Income |  | Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings |  | December 31, 2021 |
| Foreign exchange contracts designated as cash flow hedges | $ | (95) |  |  | $ | 59  |  |  | $ | (61) |  |  | $ | 25  |  |
| Interest rate contracts designated as cash flow hedges | 10  |  |  | 22  |  |  | 2  |  |  | 30  |  |
| Total | $ | (85) |  |  | $ | 81  |  |  | $ | (59) |  |  | $ | 55  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   | December 31, 2019 |  | Amount of Gain (Loss) Recognized in Other Comprehensive Income |  | Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings |  | December 31, 2020 |
| Foreign exchange contracts designated as cash flow hedges | $ | (9) |  |  | $ | (71) |  |  | $ | 15  |  |  | $ | (95) |  |
| Interest rate contracts designated as cash flow hedges | —  |  |  | 10  |  |  | —  |  |  | 10  |  |
| Total | $ | (9) |  |  | $ | (61) |  |  | $ | 15  |  |  | $ | (85) |  |

88
