PARTIV Note11—LoansandInterestReceivable PayPalHoldings,Inc. NotestoConsolidatedFinancialStatements—(Continued) Troubleddebtrestructurings In certain instances where a merchant is able to demonstrate that it is experiencing financial difficulty, there may be a modification of the loan or advance and the related interest or fee receivable for which it is probable that, without modification, we would be unable to collect all amounts due. These modifications are intended to provide merchants with financial relief, and help enable us to mitigate losses. These modifications include an increase in term by approximately 1 to 5.5 years while moving the delinquency status to current. The fee on certain of these loans or advances remains unchanged over the extended term. Alternatively, certain loans and advances have been modified to replace the initial fixed fee structure at the time the loan or advance was ANNU extended with a fixed annual percentage rate applied over the amended remaining term, which will continue to accrue interest at the fixed rate until the earlier of maturity or charge-off. These modifications had a de minimis impact on our AL consolidatedstatementsofincome(loss)intheyearsendedDecember31,2022and2021. REPOR Allowances for TDRs are assessed separately from other loans and advances within our portfolio and are determined by estimatingcurrentexpectedcreditlossesutilizingthemodifiedtermandinterestrateassumptions.Historicallossestimates T are utilized in addition to macroeconomic assumptions to determine expected credit loss rates. Further, we may include qualitative adjustments that incorporate incremental information not captured in the quantitative estimates of our current expectedcreditlosses. During the year ended December 31, 2022, merchant loans, advances, and interest and fees receivables which have been modified as TDRs were de minimis. The following table shows merchant loans, advances and interest and fees receivables whichweremodifiedasTDRsintheyearendedDecember31,2021: YearEndedDecember31,2021 WeightedAverage (1) NumberofAccounts OutstandingBalances PaymentTermExtensions (in thousands) (in millions) (in months) LoansandInterestReceivable 3 $ 45 36 (1) Balancesareasofmodificationdate. A merchant is considered in payment default after a modification when the merchants payment becomes 60 days past their expected or contractual repayment date. For loans or advances that have defaulted after being modified, the increased estimate of current expected credit loss is factored into overall expected credit losses. In the years ended December 31, 2022 and 2021, the amount of merchant loans, advances, and interest and fees receivables classified as TDRsthathavesubsequentlydefaultedonpaymentswasdeminimis. Note12—Debt FixedRateNotes In May 2022, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $3.0 billion. Interest on these notes is payable on June 1 and December1 of each year, beginningon December1, 2022. In May 2020, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $4.0 billion. Interest on these notes is payable on June 1 and December1 of each year, beginningon December1, 2020. In September2019, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $5.0 billion. Interest on these notes is payable in arrears semiannually (payable on April 1 and October 1). ThenotesissuedfromtheMay2022,May2020,andSeptember2019debtissuancesareseniorunsecuredobligationsand are collectively referred to as the “Notes.” We may redeem the Notes in whole, at any time, or in part, 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 downgradeoftheNotesbelowaninvestmentgraderating,wewillberequiredtoofferto repurchaseeachseriesof 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 repaymentorredemptionofoutstandingdebt,sharerepurchases,ongoingoperations,capitalexpenditures,acquisitionsof businesses,assets,or strategicinvestments. •2022AnnualReport 101