Option Grant and Exercise Terms

Table of Contents Interest expense As a percentage of revenues 2021 Year Ended December 31, 2020 2019 (in thousands, except percentages) 767,499 $ 626,023 $ 765,620 3 % $ 3 % Change 2021 vs. 2020 $ (1,879) 3 % Interest expense for the year ended December 31, 2021 consisted primarily of $747 million of interest on our Notes. Interest expense for the year ended December 31, 2021 as compared to the year ended December 31, 2020 remained flat. Interest and Other Income (Expense) % Interest and other income (expense) consists primarily of foreign exchange gains and losses on foreign currency denominated balances and interest earned on cash and cash equivalents. Interest and other income (expense) As a percentage of revenues 2021 Year Ended December 31, 2020 2019 Change 2021 vs. 2020 $ 411,214 1 % $ (in thousands, except percentages) (618,441) $ 84,000 $ 1,029,655 (2)% % 166 % Interest and other income (expense) increased primarily due to foreign exchange gains of $403 million for the year ended December 31, 2021 as compared to a loss of $660 million for the year ended December 31, 2020. The foreign exchange gain in the year ended December 31, 2021 was primarily driven by the non-cash $431 million gain from the remeasurement of our Senior Notes denominated in euros, partially offset by the remeasurement of cash and content liability positions in currencies other than the functional currencies. The foreign exchange loss in the year ended December 31, 2020 was primarily driven by the non-cash $533 million loss from the remeasurement of our Senior Notes denominated in euros, coupled with the remeasurement of cash and content liability positions in currencies other than the functional currencies. Provision for Income Taxes Provision for income taxes Effective tax rate Year Ended December 31, 2021 2020 2019 Change 2021 vs. 2020 $ 723,875 $ 12% (in thousands, except percentages) 437,954 $ 195,315 $ 285,921 65 % 14 % 9 % The decrease in our effective tax rate for the year ended December 31, 2021 as compared to the year ended December 31, 2020 is primarily due to the establishment of a valuation allowance on the California R&D credit in the year ended December 31, 2020, offset primarily by a lower benefit on a percentage basis from excess tax benefits related to stock-based compensation. In 2021, the difference between our 12% effective tax rate and the Federal statutory rate of 21% was primarily due to the recognition of excess tax benefits of stock-based compensation and the impact of international provisions of the Tax Cuts and Jobs Act. 24

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