2022 Q4 Form 10-K Financial Statement

#000132680123000013 Filed on February 02, 2023

View on sec.gov

Income Statement

Concept 2022 Q4 2022
Revenue $32.17B $116.6B
YoY Change -4.47% -1.12%
Cost Of Revenue $8.336B $25.25B
YoY Change 31.32% 11.48%
Gross Profit $23.83B $91.36B
YoY Change -12.79% -4.11%
Gross Profit Margin 74.08% 78.35%
Selling, General & Admin $7.659B $27.08B
YoY Change -0.43% 13.43%
% of Gross Profit 32.14% 29.64%
Research & Development $9.771B $35.34B
YoY Change 38.67% 43.33%
% of Gross Profit 41.0% 38.68%
Depreciation & Amortization $2.376B $8.686B
YoY Change 17.97% 9.02%
% of Gross Profit 9.97% 9.51%
Operating Expenses $17.43B $62.42B
YoY Change 18.27% 28.62%
Operating Profit $6.399B $28.94B
YoY Change -49.15% -38.09%
Interest Expense $89.00M $195.0M
YoY Change -13.59% -39.25%
% of Operating Profit 1.39% 0.67%
Other Income/Expense, Net -$339.0M -$125.0M
YoY Change -2360.0% -123.54%
Pretax Income $6.149B $28.82B
YoY Change -51.59% -39.05%
Income Tax $1.496B $5.619B
% Of Pretax Income 24.33% 19.5%
Net Earnings $4.653B $23.20B
YoY Change -54.76% -41.07%
Net Earnings / Revenue 14.47% 19.9%
Basic Earnings Per Share $8.63
Diluted Earnings Per Share $1.54 $8.59
COMMON SHARES
Basic Shares Outstanding 2.687B shares
Diluted Shares Outstanding 2.702B shares

Balance Sheet

Concept 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $40.74B $40.74B
YoY Change -15.13% -15.13%
Cash & Equivalents $14.68B $8.505B
Short-Term Investments $26.06B $26.06B
Other Short-Term Assets $5.345B $5.345B
YoY Change 15.47% 15.47%
Inventory
Prepaid Expenses
Receivables $13.47B $13.47B
Other Receivables $0.00 $0.00
Total Short-Term Assets $59.55B $59.55B
YoY Change -10.68% -10.68%
LONG-TERM ASSETS
Property, Plant & Equipment $92.19B $92.19B
YoY Change 31.77% 31.77%
Goodwill $20.31B
YoY Change 5.78%
Intangibles $897.0M
YoY Change 41.48%
Long-Term Investments $17.00M $6.201B
YoY Change -50.0% -8.47%
Other Assets $6.583B $6.583B
YoY Change 139.29% 139.29%
Total Long-Term Assets $126.2B $126.2B
YoY Change 27.04% 27.04%
TOTAL ASSETS
Total Short-Term Assets $59.55B $59.55B
Total Long-Term Assets $126.2B $126.2B
Total Assets $185.7B $185.7B
YoY Change 11.89% 11.89%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.107B $6.107B
YoY Change 18.93% 18.93%
Accrued Expenses $19.55B $13.67B
YoY Change 36.61% 53.21%
Deferred Revenue $482.0M
YoY Change -6.77%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $129.0M $129.0M
YoY Change 72.0% 72.0%
Total Short-Term Liabilities $27.03B $27.03B
YoY Change 27.87% 27.87%
LONG-TERM LIABILITIES
Long-Term Debt $9.923B $10.48B
YoY Change 1861.07% 1971.34%
Other Long-Term Liabilities $7.764B $22.51B
YoY Change 7.43% 15.62%
Total Long-Term Liabilities $17.69B $32.99B
YoY Change 144.74% 65.16%
TOTAL LIABILITIES
Total Short-Term Liabilities $27.03B $27.03B
Total Long-Term Liabilities $17.69B $32.99B
Total Liabilities $60.01B $60.01B
YoY Change 45.99% 45.99%
SHAREHOLDERS EQUITY
Retained Earnings $64.80B
YoY Change -7.11%
Common Stock $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $125.7B $125.7B
YoY Change
Total Liabilities & Shareholders Equity $185.7B $185.7B
YoY Change 11.89% 11.89%

Cashflow Statement

Concept 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $4.653B $23.20B
YoY Change -54.76% -41.07%
Depreciation, Depletion And Amortization $2.376B $8.686B
YoY Change 17.97% 9.02%
Cash From Operating Activities $14.51B $50.48B
YoY Change -19.85% -12.5%
INVESTING ACTIVITIES
Capital Expenditures $9.043B $31.43B
YoY Change -268.43% 69.28%
Acquisitions
YoY Change
Other Investing Activities $1.512B -$1.000M
YoY Change -86.5% -100.35%
Cash From Investing Activities -$7.531B -$28.97B
YoY Change -229.2% 282.69%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $27.96B
YoY Change -37.23%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -7.060B -$22.14B
YoY Change -67.53% -56.36%
NET CHANGE
Cash From Operating Activities 14.51B $50.48B
Cash From Investing Activities -7.531B -$28.97B
Cash From Financing Activities -7.060B -$22.14B
Net Change In Cash -80.00M -$1.269B
YoY Change -103.65% 16.53%
FREE CASH FLOW
Cash From Operating Activities $14.51B $50.48B
Capital Expenditures $9.043B $31.43B
Free Cash Flow $5.468B $19.04B
YoY Change -76.71% -51.31%

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CY2021 meta Other Significant Noncash Transaction
OtherSignificantNoncashTransaction
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CY2020 meta Other Significant Noncash Transaction
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CY2020 meta Repurchase Of Common Stock In Accrued Expenses And Other Current Liabilities
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CY2022 us-gaap Number Of Reportable Segments
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2 segment
CY2022 meta Repurchase Of Common Stock In Accrued Expenses And Other Current Liabilities
RepurchaseOfCommonStockInAccruedExpensesAndOtherCurrentLiabilities
310000000 usd
CY2021 meta Repurchase Of Common Stock In Accrued Expenses And Other Current Liabilities
RepurchaseOfCommonStockInAccruedExpensesAndOtherCurrentLiabilities
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CY2022 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
2 segment
CY2022 us-gaap Use Of Estimates
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, valuation of non-marketable equity securities, income taxes, loss contingencies, including the ultimate resolution of litigation, regulatory matters, and asserted and unasserted claims, valuation of long-lived assets including goodwill, intangible assets, and property and equipment, and their associated estimated useful lives, credit losses of available-for-sale (AFS) debt securities and accounts receivable, fair value of financial instruments, and fair value of leases. These estimates are based on management's knowledge about current events, interpretation of regulations, and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In connection with our periodic reviews of the estimated useful lives of property and equipment, we extended the estimated average useful lives of a majority of the servers and network assets from four years to 4.5 years, effective the second quarter of 2022, and further extended the useful lives to five years effective the fourth quarter of 2022. The changes in estimated useful lives were due to expected longer refresh cycles in our data centers. The financial impact of the changes was a reduction in depreciation expense of $860 million and an increase in net income of $693 million, or $0.26 per diluted share for the year ended December 31, 2022. The impact from the changes in our estimates was calculated based on the servers and network assets existing as of the effective dates of the changes and applying the revised estimated useful lives prospectively.</span></div>
CY2022 us-gaap Use Of Estimates
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, valuation of non-marketable equity securities, income taxes, loss contingencies, including the ultimate resolution of litigation, regulatory matters, and asserted and unasserted claims, valuation of long-lived assets including goodwill, intangible assets, and property and equipment, and their associated estimated useful lives, credit losses of available-for-sale (AFS) debt securities and accounts receivable, fair value of financial instruments, and fair value of leases. These estimates are based on management's knowledge about current events, interpretation of regulations, and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In connection with our periodic reviews of the estimated useful lives of property and equipment, we extended the estimated average useful lives of a majority of the servers and network assets from four years to 4.5 years, effective the second quarter of 2022, and further extended the useful lives to five years effective the fourth quarter of 2022. The changes in estimated useful lives were due to expected longer refresh cycles in our data centers. The financial impact of the changes was a reduction in depreciation expense of $860 million and an increase in net income of $693 million, or $0.26 per diluted share for the year ended December 31, 2022. The impact from the changes in our estimates was calculated based on the servers and network assets existing as of the effective dates of the changes and applying the revised estimated useful lives prospectively.</span></div>
CY2022 us-gaap Advertising Expense
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CY2021 us-gaap Advertising Expense
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2990000000 usd
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CY2021 us-gaap Advertising Expense
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CY2022 meta Equity Securities Without Readily Determinable Fair Value Impairment And Downward Price Adjustment Current Year Amount
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447000000 usd
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CY2022 meta Equity Securities Without Readily Determinable Fair Value Impairment And Downward Price Adjustment Current Year Amount
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CY2022 us-gaap Number Of Reporting Units
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2 unit
CY2022Q4 us-gaap Accumulated Other Comprehensive Income Loss Foreign Currency Translation Adjustment Net Of Tax
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-1860000000 usd
CY2021Q4 us-gaap Accumulated Other Comprehensive Income Loss Foreign Currency Translation Adjustment Net Of Tax
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CY2022 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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CY2021 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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CY2020 us-gaap Foreign Currency Transaction Gain Loss Before Tax
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CY2022 us-gaap Concentration Risk Credit Risk
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Credit Risk and Concentration</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities, and accounts receivable. Cash equivalents consists mostly of money market funds, that primarily invest in U.S. government and agency securities. Marketable securities consist of investments in U.S. government securities, U.S. government agency securities, and investment grade corporate debt securities. Our investment portfolio in corporate debt securities is highly liquid and diversified among individual issuers. The amount of credit losses recorded for the year ended December 31, 2022 was not material.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Accounts receivable are typically unsecured and are derived from revenue earned from customers across different industries and countries. We generated 40%, 41%, and 42% of our revenue for the years ended December 31, 2022, 2021, and 2020, respectively, from marketers and developers based in the United States, with the majority of revenue outside of the United States coming from customers located in western Europe, China, Brazil, Canada, Australia and Japan.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We perform ongoing credit evaluations of our customers and generally do not require collateral. We maintain an allowance for estimated credit losses, and bad debt expense on these losses was not material during the years ended December 31, 2022, 2021, or 2020. In the event that accounts receivable collection cycles deteriorate, our operating results and financial position could be adversely affected.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">No customer represented 10% or more of total revenue during the years ended December 31, 2022, 2021, and 2020.</span></div>
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CY2022 us-gaap Concentration Risk Credit Risk
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Credit Risk and Concentration</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities, and accounts receivable. Cash equivalents consists mostly of money market funds, that primarily invest in U.S. government and agency securities. Marketable securities consist of investments in U.S. government securities, U.S. government agency securities, and investment grade corporate debt securities. Our investment portfolio in corporate debt securities is highly liquid and diversified among individual issuers. The amount of credit losses recorded for the year ended December 31, 2022 was not material.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Accounts receivable are typically unsecured and are derived from revenue earned from customers across different industries and countries. We generated 40%, 41%, and 42% of our revenue for the years ended December 31, 2022, 2021, and 2020, respectively, from marketers and developers based in the United States, with the majority of revenue outside of the United States coming from customers located in western Europe, China, Brazil, Canada, Australia and Japan.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We perform ongoing credit evaluations of our customers and generally do not require collateral. We maintain an allowance for estimated credit losses, and bad debt expense on these losses was not material during the years ended December 31, 2022, 2021, or 2020. In the event that accounts receivable collection cycles deteriorate, our operating results and financial position could be adversely affected.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">No customer represented 10% or more of total revenue during the years ended December 31, 2022, 2021, and 2020.</span></div>
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CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021Q4 us-gaap Contract With Customer Liability
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CY2021Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position Less Than12 Months Accumulated Loss
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CY2021Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer
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CY2021Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer Accumulated Loss
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CY2021Q4 us-gaap Equity Securities Fv Ni
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CY2022Q4 us-gaap Marketable Securities Current
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CY2021Q4 us-gaap Marketable Securities Current
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CY2021Q4 us-gaap Restricted Cash And Cash Equivalents
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CY2021Q4 meta Cash Cash Equivalents And Marketable Securities And Restricted Cash At Carrying Value
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CY2022Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position Less Than12 Months
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CY2022Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer
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CY2022Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer Accumulated Loss
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CY2022Q4 us-gaap Debt Securities Available For Sale Unrealized Loss Position
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CY2022Q4 us-gaap Debt Securities Available For Sale Unrealized Loss Position Accumulated Loss
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CY2021Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer
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CY2021Q4 us-gaap Debt Securities Available For Sale Continuous Unrealized Loss Position12 Months Or Longer Accumulated Loss
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CY2021Q4 us-gaap Debt Securities Available For Sale Unrealized Loss Position
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CY2022Q4 us-gaap Available For Sale Securities Debt Maturities After One Through Five Years Fair Value
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CY2022Q4 us-gaap Debt Securities Available For Sale Excluding Accrued Interest
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CY2021Q4 meta Equity Securities Without Readily Determinable Fair Value Initial Cost
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CY2022Q4 meta Equity Securities Without Readily Determinable Fair Value Initial Cost
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CY2021Q4 meta Equity Securities Without Readily Determinable Fair Value Initial Cost
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CY2022Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Upward Price Adjustment Cumulative Amount
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CY2021Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Upward Price Adjustment Cumulative Amount
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CY2022Q4 meta Equity Securities Without Readily Determinable Fair Value Impairment And Downward Price Adjustment Cumulative Amount
EquitySecuritiesWithoutReadilyDeterminableFairValueImpairmentAndDownwardPriceAdjustmentCumulativeAmount
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CY2022Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
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CY2021Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
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CY2022Q4 meta Equity Securities Without Readily Determinable Fair Value Impairment And Downward Price Adjustment Cumulative Amount
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CY2022Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
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CY2021Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
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